Effectiveness of social production enterprises in Venezuela.

in hive-175254 •  3 years ago 

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Humanity has developed in various historical moments, in which we can highlight the industrial revolution, which led to the emergence of various types of grouping of labor collectivities, tending to achieve through the division of labor the achievement of a particular economic purpose. With the introduction of the machine in the economic scenario, the margin in which people could organize their work was widened, thus creating companies always tending to hierarchical organization.

Thus, García and Taboada (2012), point out that since then companies, they are economic organizations whose main objective is to obtain benefits through the coordination of human, financial and technological resources. They are important because they have the capacity to generate wealth and jobs in the economy and, in addition, because they are the main drivers of technological change in any country. In other words, companies arise with the purpose of establishing an organized economic activity where the available resources are combined, with the sole purpose of generating wealth and jobs, being the driving force of technological advances in the country where they are located. Likewise, they intend to remain in time in constant growth and evolution.

Likewise, companies are conformed as an organization because it has a series of structures (functional, hierarchical and decisional); aimed at the production of goods and services, so that this organizational structure shows the configuration of the organization, its elements and relationships, with a view to adequately perform the tasks to be carried out to meet the planned objectives. Therefore, it is required that companies are effective or what is the same "produce the expected effects" says Serralde (2012); in short, that they meet the expected objectives.

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Accordingly, organizations differ from each other in their ability to achieve, some are more effective, while others are less effective. Now, in Venezuela there have been different types of companies, mainly made up of public and private companies, which seek specific purposes as follows: public companies have the purpose of satisfying a general or social need and may or may not obtain a profit, and private companies seek to obtain an economic benefit by satisfying some general or social needs.

However, in recent years, the State has had to make some changes in the management of the productive and commercial system of the Nation, because it has not been able to achieve the desired success with the economic models applied so far, outlining strategies capable of reactivating the national productive apparatus. For this reason, the Venezuelan government has proposed Social Production Companies (EPS) as a fundamental element for the development of the Venezuelan productive model, in various sectors of the economy, defined by Presidential Decree number 3,895 as community productive units whose essential objective is the generation of goods and services that satisfy the basic needs of the communities, i.e. food, housing, education, health and clothing.

In this sense, the EPS are economic entities dedicated to the production of goods or services with a high social content and where principles of equality, cooperation, solidarity, complementarity and reciprocity prevail. At the same time, the EPS were created with the purpose of promoting investments through the diversification of the economy, promoting the creation of a wide range of fundamental goods and services for the population and finally increasing the participation of the organized communities by exercising social control. These companies, like any other, are established to generate some type of benefit. Most of the companies are focused on profitability, they concentrate on obtaining income, with low production costs and high levels of profitability and security.

Reference Consulted

  • García, A. and Taboada, E. (2012). Theory of the firm: the proposals of Coase, Alchian and Demsetz, Williamson, Penrose And Nooteboom Economics: Theory And Practice -New Epoch [Revista en línea] 12 (36). Retrieved January 20, 2015 from: http://www.izt.uam.mx/economiatyp/numeros/numeros/36/articulos_PDF /36_1_Article.pdf
  • Serralde, A. (2012). What is organizational effectiveness theory Reddin. Consultans [Online journal] 12 (12). Retrieved January 20, 2015 from: http://reddinconsultants.com/espanol/wp- content/uploads/2012/12/Qu%C3%A9-es-la-Teoria-de-Efectividad- Organizacional.pdf.

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hello @carlir,
in Venezuela the social production companies did not give any benefit, the reasons are many but the main one is corruption. this problem is very common in social production companies because in general for a company to work it has to have people who risk capital and want the return of their capital, being the state who places the capital corruption turns any company into a failure.

Hi @trabajosdelsiglo, I totally agree with you, the high levels of corruption of these companies in the Venezuelan case destroyed our productive apparatus. But if you know how to manage this type of companies, they are not bad, on the contrary, they can contribute a lot to a country.

I don't know about the Venezuela but the company have different policy of giving remuneration.

But I get a small knowledge about the same by reading this article. You have provided a good information for the same.

Hi @carlir the great majority have failed, if not all of them. If all EPSs were successful, we would not be living through the economic chaos that we already know and that has been studied. In fact, if the EPS were successful, there would be a socialist and not a private productive chain, there would be shelves in private supermarkets, good reading, success.

Greetings @aplausos, very true your comment, unfortunately this type of social enterprises in Venezuela have been a resounding failure, but not because of how they are structured but by the people who manage them, who are bandits who only think about enriching themselves and destroy everything.