Poor Performance of Public Corporations - where we went wrong?

[Ndachuwa]

Quote from Jack Welch "If you pick the right people and give them the opportunity to spread their wings and put compensation as a carrier behind it you almost dont have to manage them"

We have observed failure of a number Public Corporations such as General Tyre (EA) Limited, Air Tanzania Corporation, TAZARA, etc. Can we say that people who were entrusted to run those organizations were not the right people or compensation to them were inadequate consequently working morale reduced?

 

[kioja]

all those factors are/were valid in the demise of those institutions.

public(govt) owned corporations have proved to be costly and bad forms of economic entities world-over. it is more unfeasible for poor countries like Bongo to have entertained them as proved since 1967 their damages outweigh benefits.

to keep funding these loss making corporations means higher taxes levied to the poor and far worse; loss of quality services or goods in the economy.

 

[Ndachuwa]

My surprsise is that compared to private owned companies these companies started with a very health capital, good corporate structure yet private companies with inadequate capital, poor corporate structure set up are doing very well

 

[kioja]

perhaps it is more difficult to obtain greater level of accountability in public owned than that you can attain in private/family run corporations.

if i own a business and employs you as my marketing manager i would make sure you are really accountable to the functions you are assigned, because if not it means i am gone. on the other hand you will work harder to avoid a sack.

 

[Ndachuwa]

I am afraid even now many organizations are copying organization structructure that requires upgrading their departmental head from Managers to Directors. By so doing, a lot of manpower is required i.e. each directorate must have Personal Secretary, office attendant for serving tea, water, buying vouchers etc. Also under directors you might have a number of managers who are assisted by officers and clerks. In the Government's point of view the more employment created the more is the successful of Government BUT who pay these costs?

If you do a research you might find that in any public corporation, number of supporting employees are more than employees in core department line. Now do you expect employees in core department to produce enough to cater for core and non-core activities? - impossible.