|Ajit K Seth (File photo)|
adopted so that talent is nurtured and mentored to take up board positions, Seth said while addressing an international workshop in Delhi on “performance evaluation and management of state owned enterprises”. Here are Seth’s tips:
1. The performance of Central Public Sector Enterprises to a large extent depends on the functioning of its Board.
2. A Board needs to be efficient as well as effective. Having directors including independent directors, with the requisite skills, knowledge and experience is the starting point.
3. Effective succession planning practices need to be adopted so that talent is nurtured and mentored to take up board positions.
4. Discussions in the board need to be informed and transparent.
5. Public sector organisations have a lot to learn from the private sector as well as from each other.
6. One of the greatest challenges for CPSEs is to strike the right balance between long term and short term goals.
7. The linking of performance evaluation with the right type of incentives is a very complex issue.
8. To design a transparent and fair system by which performance evaluation at the organisational level can be translated into performance evaluation at an individual level is by no means an easy task.
9. In an environment where majority of the employees in the CPSEs have considerable security of tenure, it may be worthwhile to look at systems based on both monetary as well as non-monetary incentives.