productivity improvement and strategies for state owned enterprises مقالة

Iranian Economic Reveiw Fall 2005, Volume 10 - Number 14 ISC (‎18 صفحة - من 39 إلی 56 )

الکلمات المفتاحية: SOEs Productivity Improvement Strategies Productivity Programs Iran Isfahan Plan

خلاصة:

Extensive government control over industrial and service sectors show it could not overcome the increasing misuse of public resources, raising debts, lack of improvement in operation efficiency and mismanagement. Numerous productivity programs could be a key to improve performances. In present article a case of productivity program in one of State Owned Enterprises (SOEs) namely Isfahan Steel Mill Company (ISMC) was identified, then conditions and factors that enhanced its performance through a productivity plan was studied. Then productivity plan consisting of external and internal environment, productivity program, and its performance was looked into. In order to gather information the author relied on secondary data sources and interviews with key Human Resource Management personnel in ISMC. The result showed Human Resource Balancing Plan in productivity program at ISMC was affected positively by government as an external factor and also the program was affected positively by newly wage and salary systems. During a period of 7 years 18,207 employees optionally left the ISMC decreasing employees from 31,684 to 13,477 and production rose from 600,000 tons annually to 1.9 million tons per year. At the end with an analysis based on Yu''''s internal and Daft external factors a number of strategies are recommended for enhancing Public Sector Undertakings (PSUs) productivity.

ملخص الجهاز:

"In present article a case of productivity program in one of State Owned Enterprises (SOEs) namely Isfahan Steel Mill Company (ISMC) was identified, then conditions and factors that enhanced its performance through a productivity plan was studied. The result showed Human Resource Balancing Plan in productivity program at ISMC was affected positively by government as an external factor and also the program was affected positively by newly wage and salary systems. Table 3: Number of Employee Who Received Training Year 1990 1991 1992 1993 1994 1995 1996 Total No. 3487 4526 9890 10072 7975 7610 11597 55157 Source: (ISMC Educational Office, 1998) One of the external factors, which facilitated implementation of the plan, was government permission, granted to ISMC by High Committee of Iran National Steel Company. 3) A delegation of authority to supervisors on rewarding and punishing employees 4) Design and implementation of a reward system; 5) Motivating the employee for research and continuous study; 6) A reduction on wastage, repairs and accidents; 7) Boosting production; 8) Establishing job security; 9) Facilitating management trips inside and outside the country; 10) Promoting an industrial culture in the plant. Table 4: Factors Affecting Productivity Program in the SOE $$$ Source: (Extracted from research process) Based on the author''''s findings, the external critical factors in the project are the role of government, raw materials, competitors, finance, international forces, technology, market and economic conditions. Finally, to improve Iran''''s industrial status vis-à-vis the new international and economic conditions, new strategies are needed to change the country''''s industrial structure, increase competitiveness in the international trade arena and boost production and exports to increase the value-added of industrial sector."

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