Question

 What are the causes of sickness of Public Enterprises? Discuss the strategies of Management Interventions adopted as a remedial measure.

03 Aug 2025
Answer :
Word Count : 1153
The sickness of public enterprises refers to their consistent inability to generate profits, cover operational costs, or meet performance expectations, ultimately leading to financial distress and loss of public value. This sickness in public enterprises can arise due to multiple causes, often linked to inefficient management practices, poor policy frameworks, lack of accountability, and external pressures. The issue becomes a concern for governments, as these enterprises are largely funded by public resources and are expected to deliver social and economic value. Management interventions are crucial for identifying and implementing corrective measures to restore their functionality and sustainability. The causes of sickness in public enterprises can be broadly classified into internal and external factors. Internal factors are primarily related to mismanagement, operational inefficiencies, and structural weaknesses within the enterprise. One of the foremost causes is poor project planning and implementation. Many public enterprises commence operations without conducting adequate feasibility studies or demand assessments. As a result, there is often a mismatch between capacity and demand, leading to underutilization of assets and poor return on investment. Inefficient management practices are another significant internal cause. Public enterprises are often managed by bureaucrats or political appointees ________ ____ _____ _____ ______ ________.
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