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.
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.
