CONTROLLING IN PUBLIC SECTOR

P R E S E N T E D B Y: VS SRUTHI SNEHA BHAMBHANI R A H U L K H U S H WA H R A J K H AT R I POONAM ASIF

CONTROLLING
Controlling
A process of monitoring performance and taking action to ensure desired results. It sees to it that the right things happen, in the right ways, and at the right time. Done well, it ensures that the overall directions of individuals and groups are consistent with short and long range plans. It helps ensure that objectives and accomplishments are consistent with one another throughout an organization.

IMPORTANCE OF CONTROLLING
To improve the efficiency of a company .

To gear up the profits of a company.

To maintain the inflow and outflow of company

resource . To ensure the optimum use of the resource in an organization. Another popular approach based on a decentralized control philosophy is (TQM)

PUBLIC SECTOR UNDERTAKINGS

PSUs are the enterprises which are owned, managed

and controlled by government. PSU is also known as public sector unit/ undertakings /enterprise. Funded by government. Welfare oriented. Ex. Railways, hospitals, arms $ ammunition and atomic energy.

VARIOUS TYPES OF PSUs

Statutory corporation created through acts of parliament

(HPCL/BPCL). Departmental enterprises(railways). Government companies. The govt. also provides special status to those PSUs who performs well in the financial year, these PSUs are mini ratna, navratna and maharatna.

STEPS OF CONTROLLING PROCESS

CONTROLLING IS REQUIRED IN VARIOUS PSUs:

Skilled Workers
New Systems Fraud

SKILLED WORKERS:
Government has acknowledged that the single biggest

threat to service delivery is the shortage of skilled workers. Although controls are in place, proper application thereof is not always possible, for example segregation of duties becomes near impossible when posts are constantly vacant. Human error increases where staff is not properly trained.

NEW SYSTEMS:
In recent years technological advances have

necessitated the development and implementation of new systems. Appropriate controls still need to be developed or customized for the government environment. Departments and entities are therefore allowed to implement any system that can fulfill their requirements. Often off-the-shelf solutions are used where built in controls are either not suitable to the environment or have not been sufficiently customized.

FRAUD:
Any control can be circumvented if a criminal mind is intent on

doing so. Controls must therefore be regularly tested and upgraded to prevent this. In addition, some forms of fraud are often hard to detect, such as bribery, kickbacks and nepotism.

POSSIBLE IMPROVEMENTS:
In the end we ask then what can or must be done to improve the

situation. A simple answer is more of the same. Government is on the right track and has implemented a number of initiatives and legislation that are assisting in achieving marked improvements. Further improvements can be made by inculcating a culture of personal and professional integrity and values in management and staff, setting the tone at the top and taking strong action against perpetrators, implementing sound organizational structures, improving human resource policies and practices and performing constant risk assessments to ensure that all risks are identified and addressed appropriately.

CONCLUSION
All too often news of corporate scandals has spurred the

public to focus on the importance of governance. However, effective governance is not limited to business entities only, it is important to public sector entities as well. Public sector entities include amongst others national and local governments, public utilities, hospitals, colleges and universities, city councils, boards of trustees and legislatures.

Contd
Governance in the public sector deserves the same

attention as governance in the private sector. While unethical behavior in the private sector impacts the shareholders of a company, unethical behavior in the public sector impacts all taxpayers and citizens. Recent government scandals published in the news illustrate all too well that governance in the public sector can fail.

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