Chapter # 1

Introduction

Public Enterprise Management deals

with the management of the public
sector, public policy process, analysis, its
impact, the dilemmas of strategy,
effective management and organization
in a changing and complex environment,
as well as looking at governance and the
idea of enterprise in the public sectors.

Public Enterprises
Public enterprise is a business organization wholly

or partly owned by the state and controlled through a

public authority.
Public enterprises are by this definition intended to be

operated in the public interest.

What is Public?
Frederickson five perspective of the public as

Interest groups,
Rational chooser,
Represented,
Customer, and
Citizen.

Defining Administration
Public administration is like any other administration

which is carried out in public interest.

Administration is determined action taken in pursuit
of a conscious purpose. It is the systematic ordering of
affairs and the calculated use of resources aimed at
making those happen which one wants to happen.
(Marx)
Frederic k Lane defines administration as organizing
and maintaining human and fiscal resources to attain
a groups goals.
Administration is the planned approach to solve all
kind of problems (Dimock 1960)

Defining Public Administration

L D White, Public administration consists of all those

operations having for their purpose the fulfillment or

enforcement of public policy.
Woodrow Wilson Defines public administration is a

detailed and systematic application of law.

Therefore public administration is nothing but the

policies, practices, rules and regulation etc, in action.

Approaches Towards the PA

Public Administration has different approaches like
Political,
Legal,
Managerial and
Occupational.

Political Approach
The legitimate object of government [is] to do for a

community of people, whatever they need to have

done, but cannot do, at all, or cannot, so well do, for
themselves in their separate, and individual
capacities (Abraham Lincoln)
Public administration is what government does.
F A Nigro argues that public administration is
essentially a cooperative group efforts in public setting.
Secondly, it covers all the three branches of
government machinery, the executive, the legislative
and the judicial.

Political Approach
Public administration plays a crucial role in

formulation of policies therefore it is a part of the

political process as well (for e.g. Bills and Acts).
It can be direct and indirect
Direct provision of services like mortgage

insurance, mail delivery, and electricity.

Indirect when the government pays private
contractors to provide goods and services to citizens
(Roads building, BoTs).

Political Approach
Implementation of the public interest and doing it
collectively.
The PA works under the universal label of public

interest.
The public interest is a commonly accepted good.
The rise of administrative discretion in the face of
legislative vagueness means that the job of the
anonymous administrator is to define the public
interest.

Legal Approach of Public Administration

As defined PA is what a state does, it is both created

and bound by an instrument of the law.

It has to execute the public law.
Every application of a general law is necessarily an

act of administration.
In the Pakistan, the 1973 Constitution is the law of
the land. All legislation must conform.
PA is implementation of regulation.
It is government telling citizens and businesses
what they may or may not do.

Managerial Approach of Public Administration

PA is the branch of management.
PA is geared toward the maximization of effectiveness,

efficiency of the economy.

Many graduate schools of management (or business or
administration) are divided into public and private.

Managerial Approach of Public Administration

Public administration is the executive function of

government.
Government agencies put into practice legislative
acts that represent the will of the people.
Public

administrators are found in middle

management, the group responsible for the execution
and interpretation of top management policies and
the day-to-day operation of an organizational unit.

PA is art or science
It is actually both.
It requires judgment, confidence and common

sense.
It also requires technical skills that allow for the
absorption and transference of information.
Just because you have the academic degree does not

mean that you can function as a high level

administrator.

Occupational Approach
It is whatever public employees in the world do.
People in bureaucratic careers tend to rise and fall on

how well they can write. In a game of shuffling paper,

the person whose memorandum ends up on top wins.
Oral presentations are also useful, but writing is more
decisive.
Public administration is idealism in action.
Many people enter public service careers because they are

idealists; they believe in and seek to advance noble

principles.

Occupational Approach
Idealism draws people into public administration

because it provides them with worthwhile and exciting

things to do with their lives.
In Academics it is a Cross-disciplinary field political

science,
sociology,
business
administration,
psychology, law, anthropology, medicine, forestry, and
so on.

Models of Public Administration

Public Administration (Traditional)
Public Management (New PM)
Responsive Governance

Public Policy
Public policy is the principled guide to action taken

by the administrative executive branches of the state

with regard to a class of issues in a manner consistent
with law and institutional customs.
Courses of action, regulatory measures, laws, and

funding priorities concerning a given topic

promulgated by a governmental entity or its
representatives.

Public Policy
Policy is an ongoing process; it involves not only the

decision to enact a law but also the subsequent actions

of implementation, enforcement and evaluation.
Public Policy should

distinguish between what

governments intend to do and what in fact, they do.

Governments inactivity is as important as government

activity.

Forms of Business Organizations

Sole Proprietorship:

A Business Owned
and Controlled by
Single Person

Partnership:

A Business Owned
by two or more individuals

Corporations:

A Legal Entity separate and

distinct from its owners

Public Enterprises:

Public Enterprise Management

The public enterprises came into existence as a result of the

expanding scope of public administration.

The advent of the concept of welfare state after the World

War II and the increasing developmental initiative

undertaken by Government across the world, the system of
public enterprises was developed.
The government sells goods and services to the common

people through the means of a state owned enterprise

system which incorporates the characteristics of both
public and private enterprises.
For e.g. the metro train facility for commuting in big cities,

developed, managed and run by the government.

Meaning of Public Enterprise

A.H. Hanson describes PE mean state ownership and

operation of industrial, agricultural, financial and

commercial undertakings.
Mallaya explains PEs are autonomous or semi

autonomous Corporations and companies owned and

controlled by state and engaged in commercial
activities.

Meaning of Public Enterprise

PEs are known for the economic activity.
Govt has to provide following for PEs
Capital (Alone or Jointly)
Structure
Control of Management
Takes or Bears Profits or Losses according to the ratio of
capital supplier.

Objectives of PEs
Economic and Social Development
Provision of employment
Regional Balance of the development

Avoiding the concentration of the wealth

Reducing the Income Inequality.

Characteristics of PEs
An Economic Activity of Government
Managed by the Govt.
Government Ownership

Profit Maximization is not the first aim.

Thank You!!!