controlling in public sector

8/22/2019 Controlling in Public Sector

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PRESENT ED BY:

VS SRUTHI

SNEHA BHAMBHANI

RAHU L KHUSHWAH

RAJ KHATRI

POONAM

ASIF

CONTROLLING IN

PUBLIC SECTOR


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CONTROLLING

Controlling

A process of monitoring performance and taking action toensure 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 ofindividuals and groups are consistent with short and longrange plans.

It helps ensure that objectives and accomplishments areconsistent with one another throughout an organization.


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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 decentralizedcontrol philosophy is (TQM)


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PUBLIC SECTOR UNDERTAKINGS

PSUs are the enterprises which are owned, managedand controlled by government.

PSU is also known as public sector unit/

undertakings /enterprise.Funded by government.

Welfare oriented.

Ex. Railways, hospitals, arms $ ammunition andatomic energy.


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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.


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STEPS OF CONTROLLING PROCESS


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Skilled Workers

New Systems

Fraud

CONTROLLING IS REQUIRED IN VARIOUSPSUs:


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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 applicationthereof 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.


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NEW SYSTEMS:

In recent years technological advances havenecessitated 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.


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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.


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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 ofpersonal 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 performingconstant risk assessments to ensure that all risks are identified and

addressed appropriately.


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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.


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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 thepublic 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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THANK YOU

controlling in public sector

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