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HUMAN RESOURCE MANAGEMENT, OBJECTIVE AND SCOPEOF HRM

  Human resource management is concerned with the "people" dimension in the management. Human resource management means the management of people within an organization . Since,every organization is made up of people, acquiring their services, developing their skills, motivating them to higher level of performance and  ensuring that they continue to maintain their commitment to the organization are essential to achieve organizational objectives. Those organization that are able to acquire ,develop ,stimulate and keep outstanding workers will be both effective and efficient.  Those organizations that are ineffective or inefficient risk the hazards of stagnating or going out of business. Human resource does creates organization and makes them survive and prosper.  If human resources are neglected or mismanaged, the organization is unlikely to do well. "Human resource management is the field of management which has to do with planning organizing and controlling the func...
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WHAT IS DISINVESTMENT ?

 The union  government  invests in several public undertakings (PSUs) such as Air India, Bharat Petroleum, Delhi Metro Rail Corporation etc. Since it is the majority share holder    (meaning that it own more than  51% of the share) the center  can raise money through  the liquidation of  its share - holding  in these PSUs.

Such assets sale either reduces the government 's share - like when it attempted to do with the public listing of Life Insurance Corporation in 2020 - or it can also transfer the ownership of the firm altogether to the highest bidder - as it did  with  Bharat  Aluminum Company, which was sold to the Vedanta group in 2021.

                                                                                         

REASON BEHIND DISINVESTMENT IN PSUs

Improve  overall  efficiency  of their  functioning 

As PSUs ,they are managed by the government on daily basis, But in doing so there is a chances of political consideration overshadowing economic and corporate  interests. 

This is especially true when the PSUs transacts with the government- for example when it sells it products and services to the government, the pricing may be influenced by factors other than market factors. 

By disinvestment  (or reducing the government stake ) ,an attempt  is made to make such a PSU more efficient as it would not be accountable to people and entities other than the government. The underlying hope  is that private  or corporate  ownership  will result  in more efficient management 


REDUCING  THE DEFICIT 


The second  factor  is government's  need to plug its deficit. Indian governments  perennially  run budget deficits.  In others words the government  is unable  to meet its expenditure  just from its tax revenues. 

In times of extreme  monetary  stress, government have thoughts of selling off their  stake in PSUs  to raise  funds and meet the gap between  its expenses  and revenues. 

Before Economic Liberalization such efforts to monetize government  assets  were criticized  as selling  the family silver. 

But Post - Liberalization, reducing  government  stake ,especially  in sectors  - such as the strategic  sector  like defense  - where  government  presence  is not necessarily,disinvestment is welcomed. With the proceed of these sales ,the government  can reduce its debt liabilities and raise money  for investments  in other parts  of the economy  - such as building  infrastructure  in the form  of new roads  and bridges  or increased spending  on providing  welfare to the poor and needy in the country. 



CONCLUSION 

Government have often failed  to meet their targets for disinvestment. The current year has seen economic activity  being  severely  impacted  by the Pandemic, and the fiscal deficit  is set to worsen. 

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