However, as per Standing Conference of Public enterprise, public sector enterprises are divided into the following nine categories, viz. In the private sector, this will usually involve maximising profit and increasing market share in order for the business to expand and develop. Introduction to Public Sector 2. Title: Business Objectives Contents Introduction: 3 Findings 3 Conclusion 5 References: 6 Introduction: Does business type have an impact on the aims and objectives that a business may make? Employee expectations, on the other hand, involving receiving adequate compensation for their time and efforts. That would be good for business and good for government.
But public sector undertakings are not coming forward in this regard. Steel plants of Bhilai, Rourkela and Durgapur; fertilizer factory at Sindri, machine tool plants in Rajasthan, precision instruments plants in Kerala and Rajasthan, etc. Defence, Banks, Coalmines, Oil, Steel etc. Private management, on the other hand, values business profit. The main objectives that a business might have are: Survival — a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis. Politika was an economic policy proposed by Vladimir Lenin, who called it state capitalism.
Targets and objectives need to be Agreed by all those participating in making them happen. There are several different ways to structure an organization. Private sector organisations have to react to changes to external environment as well; however they are mostly impacted by different set of factor. In fact, discouraging concentration of economic power and preventing the growth of monopolies and big business have been the declared objectives of the Government throughout the plan period. If your profit is too low, you can cut costs or increase the marketing budget and predict higher sales. While the auditing process is similar for the public and private sectors, the material audited differs, because public-sector audits establish that expenses are accurately portrayed, while private-sector audits show that the profitability and financial stability of a company are presented correctly. A short-term objective may be to consolidate, or even simply to survive the difficult trading conditions that it is experiencing.
Public organisations are also far more transparent than private ones. Objectives could include meeting certain time scales when dealing with customer queries or increasing the number of sales by a certain percentage in a given period. This happens as result of lack of importance for external and internal control. Moreover, financial rewards play significant role in motivating private sector managers. Brought to you by Oligopolies and Monopolies The market structure for oligopolies and monopolies is one consisting of a small number of firms for the former and only one company for the latter. A mission statement sets out the business vision and values that enables employees, managers, customers and even suppliers to understand the underlying basis for the actions of the business. But it does not necessarily mean that the firm should hold excessive cash balance since it is a non-earning asset.
Objectives of Public Sector : The general objectives of public sector are: a To provide required investment and promotion of industrial activity by way of indirect public investment either by supplying financial assistance to private sector or to supply infrastructural and basic activities; b To supply socio-economic developmental opportunities which should not be transferred to private sector undertakings; c To nationalize those companies which are foreign dominated, d To supply activities relating to import-substituting and export-promoting which are essential for the development of the country; e To develop savings by mobilizing resources with the help of proper public sector prices more quick than others; f To introduce certain activities to take the benefit of foreign aid and co-operation in the public sector; g To make a balanced regional development by establishing regional promotional undertakings in less developed regions, e. The basic infrastructure required for rapid industrialisation has been built up, through the production of strategic capital goods. In order to maximise the return on investment, a firm must go for efficient management of its resources. The Search Engine then examines its index and displays a list of best-matching web pages. To be able to operate in markets such as these is a prevailing objective for private sector companies because the opportunities to be price makers and make extra profits are much greater. Their focus can therefore remain on maximising the bottom-line. Unlike the public sector, many private owners actively participate in the daily management of the company, which results in less conflict between the goals of management and stockholders.
Public sector Public sector objectives have, traditionally, been centred around providing a public service, rather than make a profit e. Public sector has helped to fill up these gaps. They are often referred to as Tactical objectives. These are often translated into targets which help to motivate staff in reaching short-term goals. You endeavour to balance the needs of businesses, interest groups and individuals. To accelerate the economic growth and industrialisation of the country creating the necessary infrastructure for development to promote fair distribution of income and wealth, interpersonal as well as inter regional to promote balanced regional development to promote the growth of strategic defence oriented industries to assist the development of small and ancillary industries to create employment of opportunities to achieve socialist pattern of society to avoid and circumvent the limitations and abuses of the private sector and to generate forces of economics and technological self reliance You might also like. Moreover, the main reason behind this difference relates to the sources of funding of these organisations.
In a private company, these profits are restricted to the company's core set of owners, which may be just one person or a small group of interested stakeholders who have invested in the company. Self-reliance: Another aim of public enterprises is to promote self-reliance in strategic sectors of the national economy. Thus, internal audit in many cases includes internal control and checking. Sales growth — where the business tries to make as many sales as possible. External Environment and Their Effect on Public and Private Sector Organisations The issues of external environment and its impact as a point of difference between public and private sector organisations corresponds to dimensions approach to organisations as discussed earlier. These enterprises have created a sound industrial base for rapid industrialisation of the country.
These enterprises are also earning considerable amount of foreign exchange through exports. It is always expressed as a percentage of the sum lent or borrowed. . Charities and voluntary organisations — their aims and objectives are led by the beliefs they stand for. T- Time specific — they have a time limit of when the objective should be achieved, e. For the public manager, objectives are abstract, overarching, somewhat undefined and exceptionally difficult to measure.
Charities also operate in the private sector. This service will need to meet the needs of the less well off in society or help improve the ability of the economy to function: e. Therefore one of the important goals of public sector enterprises in India has been promotion of capital formation. Profit satisficing — try to make enough profit to keep the owners comfortable — probably the aim of smaller businesses whose owners do not want to work longer hours. About the Author Bert Markgraf is a freelance writer with a strong science and engineering background.