Public sector HR policy – Should PSUs be allowed to adopt a hire-and-fire policy? Arguments to evaluate: I. Yes, it enables removal of non-performers and rewarding performers. II. No, management may misuse the policy indiscriminately. III. Yes, it would raise efficiency and help PSUs become profitable.

Difficulty: Medium

Correct Answer: All are strong

Explanation:


Introduction / Context:
We must judge the strength of arguments about introducing a hire-and-fire policy in public sector undertakings (PSUs). Multiple arguments can be simultaneously strong if each is logical and relevant.



Given Data / Assumptions:

  • Goal tensions: efficiency and accountability versus job security and due process.
  • PSUs may face performance issues; misuse risks exist without safeguards.
  • “Hire-and-fire” refers to flexible separation aligned to performance.


Concept / Approach:
A strong pro-argument highlights genuine performance benefits; a strong con-argument highlights credible risks to fairness if safeguards are weak. Both can coexist as valid policy considerations.



Step-by-Step Solution:

I: Strong. Performance-linked separations can remove chronic non-performers and reinforce meritocracy when supported by transparent appraisal systems.II: Strong. Without robust checks, such powers can be abused (bias, arbitrary dismissals); the caution is policy-relevant.III: Strong. Aligning incentives and accountability plausibly improves efficiency and profitability.


Verification / Alternative check:

Modern HR frameworks pair flexibility with due process: performance metrics, appeals, and labour-law compliance.


Why Other Options Are Wrong:

Any option excluding one of I/II/III ignores either real benefits or real risks; both sides offer strong, policy-relevant points.


Common Pitfalls:

Treating the issue as binary; ignoring the role of safeguards and governance.


Final Answer:
All are strong

More Questions from Statement and Argument

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