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Forms of Organising Public Sector Enterprises

The participation of Government in economic and business sectors requires some kind of organisational structure to operate. You have learnt about the types of business organisation in the private sector namely, single ownership, joint ventures, Hindu joint family, cooperative and company.

As the public sector grows, a vital question crops up as to how it is to be structured or what form of organisation it should take. In the formation of the public sector the government has a major role to play. But the government acts through its employees, its people, its offices who they take conclusions and decisions on behalf of the government. In order for the government to participate in the economic activities of the country, public enterprises were formed by the government which are expected to contribute to the economic development of our country in today's liberalised, competitive world. These public enterprises are owned by the public and are answerable to the public through the Parliament. They are characterised by public accountability, public funds being used for its activities and public ownership. Depending on the relationship with the government and the nature of its operation, a public enterprise may take any particular form of organisation. The aptness of a specific form of establishment may depend upon its needs. Simultaneously, any organisation in the public sector, in accordance with general principles, should ensure organisational performance productivity and quality standards. The types of organisation which a public sector house may take are as follows:
  1. Departmental enterprise
  2. Statutory body
  3. Government organisation

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