DISINVESTMENT IN BSNL

Dear Friends,
It’s very hard time for BSNL.Now Financial position is not adequate to full fill 50%DA merger& implement 2nd pay revision due to huge employees’ strength very less profitability. I personally appeal all quality man power of BSNL absorbees & BSNL recruited to support the listing &VRS process in BSNL.If we BSNL will survive we will survive So think positive for viability of BSNL.
Let us now turn to the arguments in favour of disinvestment. Privatization as a concept was first taken up energetically in the UK from where it spread to other OECD countries, and has since become a global phenomenon. It is part of the process of rethinking the role of government and trying to obtain higher levels of efficiency in resource utilization. However, disinvestment is a complex process with multiple goals. The most important argument in favor of disinvestment lies in the improvement of efficiency. Why BSNL inefficient in utilizing quality man power and capital? Though there are many elements of reasoning which lead to this conclusion, the central theme remains that of incentives.
A key part of the problem lies in the human resource policies. A private company recruits from the broad market by paying market wages. The recruitment is done by senior people who are well incentives to recruit the best candidate for the job. The firm then puts employees under strong pressure to perform. Well performing employees get promotions and bonuses. Those who fail to perform are penalized in many ways, ranging from wage stagnation to transfer to removal. This combination of carrot and stick gives employees in the private sector incentives to work. BSNL in comparison, fail at all levels.
Now again poor mgt going to recruit management trainees in BSNL.It is very big mistake for survival of BSNL &little individuals gain (ITS- WHO IS SENOIR GOING TO RETIRE WITHIN 5 YRS.)
BSNL do not recruit at market wages. They pay too much at junior levels I) – such as RM,PM& OPERATORS&TTAS and Drivers II)– and too little Direct recruited BSNL Engineers, account officers. The salary of a CEO of other telecom companies in India today is roughly Rs 1 crore per year. But BSNL try to recruit a CMD by offering only Rs 5 lakh a year. Since it is not possible to recruit an adequately competent person at this price, few of the CMDs of other PSES in India today are good enough to get a job as the CEO of a private or foreign Telecom company.
Then top ITS mgt force to indulge in corruption & malpractices to maintain status in society.
The incentives of employees of BSNL could be influenced by sale of shares, and employee stock option plans (ESOPs), whereby every employee in the company would end up having a stake in obtaining a higher stock price. This would serve to align the interests of employees with the interests of owners, and help improve the working of BSNL, since workers are then less likely to shirk work or steal from the company.
Overall we argue that the most important reason to disinvest is to increase productivity. Even partial privatization achieves an increase in productivity. This can be achieved by listing of unlisted profit making BSNL. Give your comments...