Public Sector blues

The fundamental problem with the public sector has always been the half-hearted nature of its formation and handling. The intent initially was fine as it was surmised that a business venture that the undertakings are, should be governed by the companies act and function as freely as the private companies with only the ownership being vested in the Government. Arms-length distance was obviously envisaged between the owner and the company as is generally the case even in the private sector, but unfortunately it has been followed more in breach.

What really emerged was far removed from what was envisaged. The original thought of allowing the public sector total autonomy that would lead to a performance comparable to the  private sector never really happened.  

Selection of the chief executive, a diligent exercise that continues almost a year for top of the line corporates is given the short shrift while selecting the head honcho for the public sector undertakings. And even the brief exercise undertaken for undertakings focuses only on sectoral knowledge rather than the leadership capabilities of the guy under consideration. The private sector that on the other hand is finicky while undergoing the process of selection, subsequently gives a very long rope for the selected guy to perform quite unlike the scenario on the other side where the head honcho lives under a shadow of mistrust from day one.

Over a period of time, many of the public sector enterprises emulated the complexity of the decision making processes and contractual mechanisms that already engulfed the sarkar, thereby seriously hampering their efficacy. Presence of over-zealous vigilance wings that regarded every act of deviation from the book as an act of malafide, also killed initiative and risk taking, something so vital for a commercial venture. This affected the working of a large number of public sector organizations that started piling up losses.

The fear of taking a wrong decision, wrong in hindsight of-course and then paying the price has engulfed the managements of the public sector, with attendant consequences. Many realized that the best way to avoid making mistakes was to avoid decision making.

The prevalent tendering system is indeed the bane of the nation. A system in which the process for purchase of bulk commodities is same as that for highly technical or creative items can never meet the requirements of emerging organizations. Often great ideas are espoused, but the enthusiasm wanes when discussions start around the tendering process to be followed for executing the great idea. Obviously there is a general tendency to play safe and that does not give the desired results.  

Another issue of concern plaguing the undertakings is the often misplaced notion of over-staffing, a notion that continues unabated despite the organization reaching a stage where rampant under-staffing starts affecting performance. Ad-hoc ban on recruitments, that once imposed are never revoked, invariably result in a drought of fresh ideas and also an aged workforce, a scenario conducive for a slow demise of the organization. 

The over-zealous participation of various agencies that remain removed from realities as well as delivery yet regard every move of others with suspicion and wait for an opportunity to pounce, has failed to reduce corruption or improve efficiency but has succeeded in curbing initiatives. How can a scenario in which individuals who have no stake in delivery sit on judgement even on routine decisions taken by people who are responsible and also accountable for delivery, be considered satisfactory. The safest path that emerges  is to merely indulge in the routine and not take bold initiatives and that is what has actually happened cutting across the public sector, something amply visible in the number of organizations that have become a drain on the nation.

Process constraints and an environment based on fear and mistrust have ensured failure of many undertakings. Either we proactively handle the obvious constraints and create an enabling environment or else disinvestment is the only practical remedy.