Abstract
This paper describes a significant public sector reform implemented by the Government of Haryana. The salary bill of the state-owned enterprises constitutes a major chunk of their expenditure. The periodic revision of pay scales of the employees of these enterprises used to be based on the existing pay scales and had no linkage to their performance. The State Government, however, digressed from the conventional approach and made the revision of pay scales of the employees incumbent upon the performance of these enterprises, their profitability and their capacity to pay. This case study contains relevant details of one of the loss making enterprises in the social sector, the objective criteria specified by the State Government for considering the revision of pay scales of such enterprises and the corrective measures adopted to make the enterprise self-sustaining.
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