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...
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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