Low Productivity and efficiency in Public Enterprises

We know that Public Enterprises play an important role for the development of India.India gets independence in 1947.In this time India is undevelop country.Public Enterprises oerform their function by a world class way so India becomes developing country and very soon it becomes develop country.But there are many causes of low productivity of Public Enterprises.These causes are as below-

1.Poor planning-It is the first cause of low Productivity of Public Enterprises.There are many Public Enterprises are established due to regional development of country.Before establishedment proper planning is not made so the production of Publec Enterprises is low.

2.Over capitalization-There are many public Enterprises whose established cost is maximum.Due to maximum investment its product's cost is maximum so its productivity is low because the demand of their product is minimum in market.

3.Overstaffing-It is the third problem of Public Enterprises.There are many hundreds employees work in Public Enterprises who is not needed by Enterprises.Due to overstaffing its cost price of product increases so it is not sold in the market.Due to less demand of product or service Enterprises do not produce it and their productivity become low.

4.High Pricing-It is the fourth problem of Public Enterrises in India.There are many reasons the selling price of Product or service of Public Enterprises is more than Private Enterprises.

5.Inefficient Management-The head of Public Enterprises are selected by Union Government or concern Government.They are mostly Administrative officer.They have no knowledge of Business,Management,Production so they do not plan,organize,staff direct,controll proper way of Enterprises.

6.Under utilisation of Capacity-The CEO,M.D.have no more knowledge of business,Management so they do not make plan policy,procedure of maxium utilisation of Enterprises and maximimise the production so under utilisation of Enterprises happen every year.

7.Maximum  overheads-There are many non essential constructions are done by Public Enterprises for the development of labours.These constructions are School.Hospitals,Canteen,Houses,Road,Park etc.Due to maximum non productive construction their overheads become maximum.

8.Political interferance-India is a democratic country.Every five year Election held in country to choose government.Every government has its own priority vision working way working style so they guide Public Enterprises their own way so the productivity of Public Enterprises affect and become low.

9.Less motivation-The management of Public Enterprises do not belong to Management sectoe so they do not inspire influence motivate guide human resource forces to contribute their best for the success of Public Enterprises.

10.Conflict-There are many elements of Industry.These elements are Management,Labour,Trade Union,etc.There are many conflicts happen among them every year so their productivity affect and become low. 
Suggestion to improve efficiency of Pubic Enterprises
There are many suggestions we want to increase the efficiency of Pubic Enterprises. These suggestions are as below-

1.Government should provide maximum autonomy to Public Enterprises.

2.There should no any political interference of goverment in the function of Public Enterprises.

3.The performance appraisal of Public Enterprises should be clear.

4.Optimum utilisation of Human resource forces be done.

5.Management should focus maximum Production.

6.Management should focus cost reduction and cost control.

7.Management department should be Management degree holders.

8.Performance based payment applied in the Enterprises.

9.Government should disinvestment many Enterprises that is not able to give profit in  coming years.

10.There should be restructuring of many Enterprises..