Government asks PSUs to develop 'leadership pipeline'
At present, about a dozen PSUs including NMDC and MMTC are operating without regular Chairman and Managing Directors.
The government has advised PSUs to groom leaders among executives below the board level so that the state-owned firms develop "a leadership pipeline" for future.
In an advisory to different administrative ministries, the Department of Public Enterprises (DPE) has said that the PSUs "need to develop comprehensive leadership pipeline which would ensure continuous and timely supply of high performance individuals who will occupy critical leadership roles."
The concept has been developed based on a paper on professionalisation of PSU management prepared by global HR consulting firm Hewitt Associates.
The concept is considered critical as a proper succession planning has remained a challenge for most of the 249 central public sector units (PSUs).
At present, about a dozen PSUs including NMDC and MMTC are operating without regular Chairman and Managing Directors.
The comprehensive guidelines for CPSEs suggest that a select group of executives "who are seen as having high potential to fill leadership position in the future" should be groomed and developed.
The criteria suggested for identification of potential leaders include "360 degree feedback and psychometric test."