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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS<br />

JUNE 2011<br />

VOL 3, NO 2<br />

The Productivity Effects of Privatization in Electric Power Distribution : A<br />

Case Study in a Regional Electricity Company in iran<br />

Dr. Habibollah Salarzehi<br />

Faculty of Management and Accounting, University of Sistan and Baluchestan, Iran<br />

Zahed Ebrahimi<br />

Master of Business Administration, University of Sistan and Baluchestan, Iran<br />

Shida Mazandarani<br />

Master Student of Information Technology Management, University of Sistan and Baluchestan,<br />

Iran<br />

Abstract<br />

The privatization of governmental enterprises was embarked on in the late 70s in numerous<br />

countries worldwide (Great Britain in particular) as a solution to the dominant economical crisis<br />

and increase economy growth. After the centralized state economy ended in a fiasco in Eastern<br />

Europe, privatization soared up dramatically, most importantly due to the pressures enacted by<br />

the World Bank and the International Monetary Fund economic policies. These organizations<br />

have conditioned their financial aids to fundamental steps and measures towards facilitating<br />

privatization in these countries. Privatization in Iran started in 1989 as an economical balance<br />

policy and pursued nationwide. The privatization process started in the Regional Electricity<br />

Company Personnel in zahedan city in 2003. In this study, the statistical population includes the<br />

Regional Electricity Company Personnel in zahedan city (who have 7 years or more job<br />

experience in the company) .In order to test the hypothesis, a sample with 184 peoples have been<br />

considered. The results of this research indicate that privatization in this company have<br />

remarkably increased the productivity.<br />

Key words: The 44 Constitution, privatization, productivity, efficiency, effectiveness<br />

Introduction<br />

Privatization policy was enacted in the early 1980s as a part of a broad policy by a few industrial<br />

countries to adjust the economic structure. It, very soon, spread into other countries and<br />

economies including transiting economies; and now it is enacting in more than 110 countries. In<br />

the beginning of the 5-year economic, social, cultural and political plan in Iran, and after the<br />

imposed war , the privatization policy was raised as one of the basic factors of the economic<br />

policies and on the June 19 th , 1991, the first legal permit passed on government meddling<br />

limitation in the economy .( Hosseini & Mehrara, 2001).<br />

This research assesses the effects of the privatization on the electricity company’s subscribers in<br />

Zahedan which aims to increase the productivity, resources allocation and people involvement<br />

development in the different parts of the production and services. This <strong>paper</strong> also aims to achieve<br />

the ways in order to provide the subscribers with the services of a higher quality and<br />

productivity.<br />

In the middle of the 1970s, improper application of a large number of governmental companies<br />

and organizations resulted in an international attempt e.g. using the private mechanism in public<br />

companies in the short term, midterm, and long term in order to achieve solutions to increase the<br />

governments' efficiency.Privatization is changing the dominant atmosphere on the different<br />

governmental parts while it keeps the main structure of activity at the same time. In this way, it<br />

COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 1939

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