It is imperative that the public sector itself should be reformed in a manner that the majority of employees are able to perform effectively without fear. They should also have the autonomy to perform, the freedom and empowerment to invest and recruit the right quality of human resources, and also make other important decisions. [...] The suggested reforms include rectifying the seriously flawed process of recruitment for top jobs; bringing down the government stakes to below 50%; separating management control from ownership; selling state equity to a wide array of retail investors, financial institutions and employees within a stretched time-frame, ultimately transferring ownership to the employees, and setting up a special-purpose vehicle, to make all the above possible. An entrepreneurial solution to rehabilitate surplus staff has also been offered. These solutions will be of great help and add a people's dimension to the reforms. They will create at least the minimum conditions of performance as they remove hurdles arising from public ownership. However, it is not necessary that people will perform unless the corporate governance, administration, and management improves. Good corporate governance is a function of the quality of management.
About Shiv Malik
Shiv Malik was Chairman and Managing Director of MMTC Ltd. (1992-97) and PEC Ltd. (1989-93), during the tumultous years when these companies faced discontinuity of business due to trade reforms and their sunsequent loss of monopoly. He has served on many other boards, including those of NDMC; MTNL; NALCO; NINL; MMTC Transnational PTE Ltd., Singapore; Gopalpur Port Company Ltd. and National Centre for Trade Information. Presently, he is Chairman of his consultancy outfit, Mentors, and is a consultant with major companies.