Solution:

Types of government owned or public sector organizations:

(i) Government departments:

• These are wholly owned and managed by the State or Central Governments and generally provide service to the nation in various areas. They come under their respective ministries.

• eg: Indian railways, P & T, JSRO, BARC, et. Course Material - CS8T1 - Engineering Economics and Management Prepared By Dr.C K Gomathy & Dr.R.Poorvadevi, Department of CSE, SCSVMV Deemed to be University.

(ii) Government industries:

• These are wholly managed and owned by the State or Central Governments but are in the manufacturing sector.

• They generally manufacture and supply products to the various government owned organisations like Indian Railways, Indian Navy, KEB, Indian Army etc.

(iii) Public Sector undertakings:

• Public sector undertakings are those industries which are jointly owned by the Central Government and State Government.

• Normally the majority of the holdings rests with Central government, while the State will be a minor partner.

(iv) Public Corporation:

• A public Corporation is exactly like a public sector undertaking in its structure but is normally in the service sector instead of in the manufacturing sector.

• eg: Life insurance corporation, Indian finance corporation, Indian Airlines.

Disadvantages of Public Sector Organizations:

• Public Sector can never reach the efficiency of the private sector. Government officers and politicians interfere too much in the internal affairs of the company.

• Promotion in government organisation is normally on Seniority, not on merit. Therefore government servant do not workhard.

• Wastage of material and labour is very high. In complete or corrupt officials may occupy top positions.

• The members of the Society Supply the capital, manage the business and share all profits and losses. Equality, mutual trust, mutual supervision, self reliance and laid works are the five pillars of a stable and successful co-operative organisation.

• If Course Material - CS8T1 - Engineering Economics and Management Prepared By Dr.C K Gomathy & Dr.R.Poorvadevi, Department of CSE, SCSVMV Deemed to be University continues the features of large partnership as well as some features of joint stock company.

• This form of ownership was first developed in Germany due to two important reasons.

• (i) The poor were exploited through long working hours poor wages, bad working condition etc; by the capitalists who owned large scale industries.

• (ii) Too many middlemen between the producers and end users, increased the prices of the products and reduced the profit of the produces.