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Why decision making in PSU fails to impress: case ONGC

Directors and CEOs of Indian PSUs traditionally are fond of good looking, smart, though no doubt efficient, youngsters to crowd around them in their MSGs ( Management services groups, executive assistants etc). This is long held tradition. These youngsters spend years in head offices of PSUs in Delhi offices, particularly in HR, becoming seniors and they decide on postings of those who are working hard day in and out in remote areas of NE , Karailkal, Offshore, Kakinada, Agartal at core business unites of say ONGC. Some of these MSG youngsters spend 20-25 years in head quarters and later manage to rise to higher positions of EDs and even Directors without or at the best with very brief stint of year or two outside in field offices. If one assess out profiles of MSG in CEOs and Directors’ offices of a typical PSU like ONGC for past 30 years, one will find 60 to 70 percent same persons continuing for decades. Directors change but these high profile file movers at MSGs remain firmly there.Sometimes they themselves become directors being well known to higher authorities or even ministries. Worst part they play for making PSUs inefficiently managed is that these assistant executives have influence in decision making. Being always around providing comfort of continuity and experience to shaky top leadership of PSUs which is already under daily threat from controlling ministries, they carry ability to put words in the mouth of directors and CMDs defeating very attempt to infuse new ideas of managing fresh challenges. 

That’s core reason why a PSU like ONGC could stagnates or could avoid stagnating and become more efficient!!

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