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Public and Public Utility Enterprises Restructuring: Statistical and Quantitative Aid for Ensuring Human Resource Sustainability

Author

Listed:
  • Mladen Čudanov

    (University of Belgrade, Belgrade, Serbia)

  • Ondrej Jaško

    (University of Belgrade, Belgrade, Serbia)

  • Gheorghe Săvoiu

    (University of Pitesti, Pitesti, Romania)

Abstract

This article presents a quantitative approach to restructuring public and public utility enterprises, particularly during downsizing requests. The large number of employees in the public sector can be one of the causes for economic instability at country level. That is particularly visible in the context of the euro zone crisis and economic/political instability in countries like Greece, Portugal, Ireland, Spain and Italy. Our approach is based on the statistical analysis of productivity oscillation and setting of performance standards in public and public utility enterprises based on the aforementioned productivity. Data background is given through job descriptions, organizational charts, salary reports and monthly performance reports, in most cases part of organizational information systems. It is recommended for quantitative data to be analyzed on a monthly basis, during a period of 30 or more months. Our method increases procedural fairness and accuracy, because quantitative, statistical, impartial and objective approach is applied for estimating parameters which could be related to downsizing. However, the application of this method is not limited to downsizing, as during its application in more than 20 public and public utility enterprises it was sometimes applied to increase output or reduce costs not necessarily connected to labour. Although it finally refers to downsizing, this method can provide fairer and more impartial approach than the subjective estimate of employee surplus, and its arbitral distribution within the enterprise.

Suggested Citation

  • Mladen Čudanov & Ondrej Jaško & Gheorghe Săvoiu, 2012. "Public and Public Utility Enterprises Restructuring: Statistical and Quantitative Aid for Ensuring Human Resource Sustainability," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(32), pages 307-322, June.
    • Handle: RePEc:aes:amfeco:v:14:y:2012:i:32:p:307-322
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    References listed on IDEAS

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    Cited by:

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    2. Juraj Cheben & Drahoslav Lancaric & Michal Munk & Peter Obdrzalek, 2020. "Determinants of Economic Sustainability in Higher Education Institutions," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 22(54), pages 462-462, April.
    3. Todorović Ivan & Komazec Stefan & Čudanov Mladen, 2013. "Different Successful Patterns for Implementing Holding Model in Public Sector," Business Systems Research, Sciendo, vol. 4(2), pages 58-67, December.
    4. Mitja Jeraj & Miha Maric & Ivan Todorovic & Mladen Cudanov, 2015. "The Role of Openness and Entrepreneurial Curiosity in Company’s Growth," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(38), pages 371-371, February.

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    More about this item

    Keywords

    public/public utility enterprises; downsizing; productivity; performance; procedural fairness and accuracy;
    All these keywords.

    JEL classification:

    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L97 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Utilities: General
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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