Productivity Improvement and Strategies for State Owns Enterprises

Abstract

Extensive government control over industrial and service sectors show it could not overcome the increasing misuse of public resources, raisins debts, lack of improvement in operation efficiency and mismanagement. Numerous productivity programs could be a key to improve performances. <br />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. <br />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. <br />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.