right-sizing in public sector organizations(1)
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Right-Sizing in Public Sector Organizations
Right-Sizing in Public Sector OrganizationsPresented by: Hammad AnsariSajeel Qureshi
Table of ContentsDefinitions and ConceptsOvercrowding in Public SectorsPitfalls of Public Sector OrganizationsTypes of DownsizingRationale of DownsizingImpact on CompanyExamples of Downsizing in Pakistans Public SectorExamples of Overstaffing in Pakistans Public SectorDefinitions and ConceptsOvercrowding ( or Overstaffing) is accommodation of employees beyond what is usual or comfortableDownsizing is reducing the number of employees on the operating payroll. Downsizing intended to be a permanent downscaling.Layoff intended to be a temporary downscaling in which employees may later be rehired.
Definitions and Concepts (cont)Retrenchment is an act of cutting down or reduction, particularly of public expenditure.
Layoff and DownsizingOther terminology sometimes used in this regard include:Reductions in force (RIF)Right-sizingRestructuring Reorganization.Overcrowding in Public SectorsPitfalls of Public Sector OrganizationsOverstaffingPolitical Patronage and CronyismBurgeoning PayrollsInefficiencyTechnological Progress
Solutions: A Way ForwardDownsizingCompanys Scope ExpansionSkfhak Types of Downsizing
Types of DownsizingVoluntary Departure Schemes Offer compensation Packages Overcompensation Under compensation Targeting Errors1Involuntary Retrenchment Schemes Removal of Ghost Employees Removal of redundant staff Compensation Packages Targeting Errors2Contracting-out Schemes Contracting-out activities by former employees3
Types of DownsizingEmployee Ownership Reserved Shares for employees to be Privatized Employees has direct stack in performance of companies.4Privatization5Rationale of DownsizingReduce SizeImprove EfficiencyProductivity
Impact on CompanyExamples of Downsizing in Pakistans Public SectorK-ElectricPTCLUnited Bank LimitedExamples of Downsizing in Pakistans Public SectorPIA has 18,000 employees for 26 operational aircrafts. While Air India with 27,000 employees for a fleet of 122 aircraftsPIAs Shedding Losses Scheme (2015)