In general, the paper 'Privatization of Cessnock Correctional Centre" is a perfect example of a management case study. Government business enterprise plays a vital role in any given country economy. This is wide because of the fact that most large companies within any country are mainly in the public sector. All significant sectors in a country such as telecommunication, fisheries, financial services and civil aviation are dominated by government businesses enterprise. Profits obtained from government business enterprises represent a substantial source of revenue for any given state. It is quite evident that as the performance over government-owned enterprises is constantly deteriorating, the question is arising whether these enterprises should be private-public Corporation, privatized or those that are outsourced.
It is important that the government should provide financial support to such enterprises to avoid the various shortcomings witnessed in such companies (Compare Bel 2006). Cessnock Correctional Centre is both a minimum and maximum Australian prison located in New South Wales in Cessnock. The prison has a capacity of four hundred and sixty-four. Cessnock Correctional Centre is the receiver prison for the Hunter and Newcastle region.
The prison is managed by the New South Wales Department of Corrective Services which is considered to be an agency of the government of NWS (GSL Australia 2007). This agency provides community based and custodial services which are key elements within criminal justice systems. It is considered to be a government business enterprise in that the structure of management within the prison reports to the attorney general and minister for justice. Cessnock Correction Centre is a good example of a government business enterprise whereby key issues regarding its key issues such as management, its autonomous nature and politics and criticism. 2.0 Key issues within Cessnock Correction Centre Being a government business enterprise Cessnock Correctional Centre, it is quite evident that there are several key issues within the companies.
These issues are usually known as characteristics that are found within such government business enterprises. 2.1 Management Based on management, the corporation operations are widely governed by a board of directors who are elected by government officials. The election of the company board directors has often emitted criticism due to political affiliation. It is evident that past appointments have widely been linked to political parties where five of the fourteen members are accused of having political affiliation (Compare Bel 2006).
The government appointments have been faced with criticism where the appointments were controversial. It is from such criticism that the system of appointing a board of directors to one that is established by panel. This implies that the minister for defence or the attorney general is supposed to only pick individuals who are shortlisted by the panel which later is justified by the parliament (Dagdeviren 2006). 2.2 Cessnock Corrective Centre is autonomous in theory Compare Bel (2006) asserts that it is observable that within Cessnock Corrective Centre the prison is widely known to be autonomy in theory.
It is autonomy in practice because of various political interference of the organization operation. The government is at the forefront of making policies thus creating a strong competition from other privatized corrective centers (Dagdeviren 2006). The red-tapism practised by the government has really affected the operations of this prison. The Australian government seeks assistant from the civil servants even when the same civil servants are not to exercise effectively since they are not technical.
Within the prison, there is evidence of slackness in their management especially due to grabbing within public service (Compare Bel 2006).