The Hindu Business Line : New HRM paradigm for PSUs

Creating an industrial environment that facilitates maximum realisation of an individual's natural capabilities contributes to the good of the firm, state and society.

ECONOMIC reforms have thrown up new concerns of human resource management (HRM) for public sector units in India. The PSUs are being squeezed both in terms of investments as well as employment.

The Government's Policy Statement on Disinvestment made in Parliament in December 2002 aimed at modernising PSUs, repaying public debt, setting up a disinvestments proceeds fund, and offering shares to employees at concession. This was to herald a new era for PSUs. The new challenges for growth can be met and opportunities exploited through an informed, enlightened and holistic management of PSUs with a special focus on human resources. Productivity and efficiency have been the problem areas for PSUs. But a new dimension has emerged: Competitiveness. Capturing the mind-set of the globaslising, privatising, liberalising and marketising economy in India, the Union Government replaced the earlier Monitoring and Regulation of Trade Practices Act with a highly comprehensive law in December 2002, known as the Competition Act. Today, the buzzword in commerce, trade, finance, business, industry and the market is competition. There is a thinking at the national level to move away from a protectionist policy and reservation regime and throw open Indian industry to global competition. The PSUs are no exceptions to such a thinking.

The prospects for the Indian economy, in general, and the PSUs, in particular, to survive and succeed in a global competitive environment appear bleak, especially going by the country's record in global competitiveness. The Global Competitiveness Report, 2000, of the World Economic Forum, Geneva, ranks India at 37, among 58 countries. To move up the rank is a challenging task. Will the Indian economy, the industries sector and specifically the PSUs be able to stand up squarely to the challenges? However, there are certain imponderables of which management of human resources is crucial.

The image of the PSUs has to change from that of a `government' industry to a `market firm'. Time was when PSU workers considered themselves to be carrying out a `given' work and collecting salaries, plus the various benefits during service and after retirement. Any collective activity was done through trade unions. The management also maintained a `We-They' relationship. But this was hardly a conducive milieu for efficiency and competitiveness to thrive. With reforms, new vistas are visible in the HR policies of PSUs.

Setting, seeking and self-realising a vision is imperative for every PSU. This is the first step in PSU reform and should form the core of HRD programmes in simple, clear, intelligible and coherent language. Sharing of vision with the workers at all levels not only enhances transparency and participative behaviour but also stimulates the rank and file towards performance and accountability. In effect, they contribute to the appreciation of productivity, efficiency and competitiveness of the firm.

Today the watchword is customer satisfaction. This is possible when all the workers, across the board, look at their work as a mission, as a service to their users, stakeholders, the public at large and the nation, for which they are paid a compensation in the form of salary. Such a mindset will remove the `We-They' relationship between the workers and the management. Creation of such a mind-set is the chief objective of HRD, in general, and especially in PSUs that are run with public money.

There are several HRD policies and practices that contribute to the overall goals of a PSU. Of top significance is the recruitment policy. `Right man/woman for the right job' should be the overriding consideration. The contract system can only be an inefficient escape route. Once the personnel are recruited, they should immediately be given induction training not only for the job but also about the vision of the firm and the economic space they occupy in the hierarchy. Continuous in-service training incentives for achievements beyond expectations, show-casing of role-models,individual/group counselling sessions, are all useful components of a HRD package.

Individuals are endowed with natural capabilities. Creating an industrial environment that facilitates maximum realisation of this potential is a form of self-realisation. Full realisation of one's potential contributes to the `good' of the firm, of the state and society. In effect it leads to social self-realisation. HRD policies and programmes of a firm should maximise the competencies, commitments and satisfactions of all its employees.

Such satisfactions optimise the productivity, efficiency and competitiveness of the firms. In this way, the PSUs can keep off disinvestment concerns, free themselves from a parasite-image, and attain salvation for themselves as also contribute to the economic, social, political and cultural development of the country.

(The author is Professor of Education, Institute for Social and Economic Change, Bangalore.)