THE EFFICIENCY OF IMPLEMENTING PRIVATE MANAGEMENT IN STATE COMPANIES

Mungiu-Pupazan Mariana Claudia
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Mungiu-Pupazan Mariana Claudia: „Constantin Brancusi” University from Tirgu Jiu

Annals - Economy Series, 2012, vol. 3, 166-169

Abstract: In 2012, nine state-owned companies are expected to have private management giving up the state management. Therefore, a full debate of this issue is required, taking into consideration the fact that, in our opinion, this process involves more than just the replacement of a manager with another. The implementation of private management in companies of national strategy, currently in state ownership, is desired to be a profound and also very complex process, aiming to change organizational culture in depth, both vertically and horizontally, so as to increase efficiency in these companies. Implementation of private management could be a good opportunity for an efficient development of these companies, for an increasing level of competitiveness on the international market, but only in terms of a leadership team chosen on performance criteria, with a coherent set of objectives and a high independence level of decision. There are some opinions from people with experience in managing both private and state companies. They believe that the idea of establishing a private management in state companies, is, in the main, good, but it is essential to take into consideration the idea of a team trained to lead the company, instead of one person as a general manager. Another element to be taken into account, so that this idea of private management may have the desired effect, is to precisely determine companies where private management teams should be installed. Not all companies are suitable for the same private management strategy. This type of leadership is better for companies with a real international perspective, such as Tarom, while strategic companies should be rather reformed, including management privatization, and kept as state strategic areas. However, strict criteria of state intervention in decision-making process should be established, a striking question concerning the circumstances under which such a management team could be successful, given that state firms are strongly politicized.

Keywords: private management; marketing decisions; efficiency; strategy; independence; insolvency (search for similar items in EconPapers)
Date: 2012
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