The secretary general of the Standing Conference of Public Enterprises (SCOPE), MA Hakeem was recently quoted as saying that the government should exercise adequate caution in the appointment of non-functional directors of PSUs. He particularly objected to those persons being given the jobs who have a "personal agenda" of their own. While functional as well as non-functional members of the board of directors should generally be professional in character, to lay down a condition such as this seems too much. This could drive away capable people since no professional would want to be told formally that he should not have an agenda of his own. Non-functional directors by their very nature will have other interests but to demand of them a written commitment is rude, to say the least. What the Government and those sincerely interested in the promotion of public sector in the country on a competitive basis should ask for from members of the boards is a high degree of professionalism and this requirement would be met essentially by strict observance of the norms of propriety by the persons concerned on their own and not under duress.

One could even say that a commitment to the efficient running of PSUs is more likely from professionals with diverse interests rather than those who operate like frogs in the well with no ambition and no special ability that would push them up. Even functional directors should have exposure to other activities to the extent of having an agenda independent of the units which they are serving full time. Professionalism will automatically ensure that this agenda will not either work against the interests of the concerned PSUs or amount to an exploitation of the position held for an advantage that is in conflict with the interests of the public sector undertakings.

As a representative body of public sector companies, SCOPE should constantly focus on professionalism, whether it be of members of the board of directors or managers. Laying a condition on eschewing of a personal agenda is as bureaucratic as the manner in which the different administrative ministries have been treating the PSUs under their charge. A sharp thrust on professional conduct will help to create managers at different levels competent to handle the kind of situations that SCOPE is worried about. This body is quite right in demanding that personal interests should not precede those of the employing units but the manner in which it is going about this may not be the most appropriate one.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.