Why most Indian PSUs are sick/bad performer

"Two key elements of taking India forward which I’ll mention this evening, are: One, for us, continually building the strength of our companies. This is in our hands… The second point-reforming our economy.”

-Mr Rahul Bajaj on foundation day of AIMA.

To facilitate individuals and organizations realize their potential for growth of country, all the management professionals have to play the major role to shape the destiny of our country through management development.

I feel that the time has come to analyze the conditions of our organizations, starting from PSUs, which are the most badly managed organizations. The result is their unsatisfactory performance, which is merely an effect and what needed, is to look into the causes behind it. They indeed need the guide and facilitator to realize and explore their potential. This is imperative for their survival too.

Despite of having an ample professionals in the field of management, our government organisations are far behind in HR management. We can clearly observe this condition in the form of corruption and slow down, when we go to any government office as a 'common man'.

I am also working in a PSU, since last 21 years. I strongly believe that there is an immense requirement of change in their torn out HR policies, management style and practices on the first step. These may be the main causes behind their bad performance. The human factor behind this is primarily technocratic management which is far behind the management style and practices accepted globally also they are reluctant to accept the change. What they do is to merely fulfill the requirement and at cosmetic level only.

Secondarily there are political and bureaucratic controls which worsen the condition. These are sufficient reasons to baffle the system and confound the people around this system.

I request to all the Management Professionals to go one step forward and contribute, according to capacity, to make them professionally managed organizations with better control mechanism, and thereby play a vital role of a leader in Management Development Movement. This message can be conveyed to the management professionals through Journal/News letters. I’ll welcome any further query or correspondence for this movement.

Warm Regards.

Hem Chandra Kukreti