What measures can be taken to make public corporations more efficient?

Answer Details

Measures to Make Public Corporations More Efficient

Public corporations are government-owned business organisations set up to provide essential services. Many suffer from inefficiency, and the following measures can improve their performance:

1. Appointment of qualified and experienced managers: Board members and managers should be appointed on merit and competence rather than on political or ethnic grounds.
2. Adequate and prudent funding: The corporations should be well financed and their funds properly managed and accounted for to avoid waste and shortage of working capital.
3. Reduction of political interference: Government should allow the corporations reasonable autonomy in day-to-day management and appointments so that decisions are guided by business considerations.
4. Regular auditing and accountability: Their accounts should be regularly audited and managers held accountable to check corruption, fraud and mismanagement.
5. Motivation of workers: Staff should be well trained, adequately paid and rewarded for good performance to boost productivity and morale.
6. Commercialisation or partial privatisation: Some corporations can be commercialised or partly privatised so that they operate on sound business principles and become profit-conscious.
7. Provision of modern equipment and technology: They should be equipped with up-to-date machinery and technology to improve the quality and quantity of their services.
8. Effective supervision and control: There should be adequate supervision by the supervising ministry and periodic review of performance without stifling autonomy.

(Any relevant measures are acceptable.)