Yadav, who was addressing party state executive meeting, said he was aware of "what was going on in the government", and noted that party workers are being ignored by their own MPs and MLAs, party sources said.
It is the second time in four days the party supremo has pointed out flaws in the Akhilesh-led government.
On January 14, Mulayam, while speaking in his hometown Etawah, had said he was receiving lot of complaints about the state government's functioning.
Mulayam advised party leaders not to involve in activities like mounting pressure on the government for transfers and postings of officials, sources said.
He also expressed displeasure over the way the bureaucracy was working in the state.
During the meeting, he was assured by Chief Minister Akhilesh Yadav that efforts will be made to make improvements in governance, sources said.
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When asked about Mulayam's remarks, SP National General Secretary Ram Asrey Khushwaha said the leader was always concerned about problems of common man.
"It is responsibility of Netaji (Mulayam) to point out lacunae in the government," he said.
At the meeting, party also reviewed its preparations for the 2014 Lok Sabha elections and discussed on names of candidates.