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Recruitment and Training of Managers in the Public Sector Concerns in Kerala

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Recruitment and Training of Managers in the Public Sector Concerns in Kerala RECRUITMENT AND TRAINING OF MANAGERS IN THE PUBLIC SECTOR CONCERNS IN KERALA Thesis Submitted to the Univetsity of Cochin for the award of the Degree of Doctor of Philosophy in Management under the faculty of Social Sciences by N. CHANDRASEKHARAN PILLAI under the Supervision of Dr. N. PARAMESWARAN NAIR SCHOOL OF MANAGEMENT STUDIES UNIVERSITY OF COCHIN COCHIN - 682 022 MARCH 1983 PREFACE Public undertakings have been assigned a significant role to play in the systematic socio-eco­ nomic development of India. My interest in the subject was kindled while I was doing my Masters Diploma in Public Administration at the Indian Institute of Public Administration, New Delhi during 1960-61. It was further strengthened by my teaching of the subject in different courses offered by me at the School of Manage» ment Studies and in several programmes organised by various voluntary and training organisations like the Institute of Management in Government, Trivandrum, Centre for Management Development, Trivandrum, etc. The several years in which I served as a member of the faculty in the School of Management Studies, University of Cochin,gave me the opportunity to come into close contact with different public sector concerns and their managers at various levels. This rich opportunity gave me a better insight into the problems faced by these concerns. The present study is a result of the interest so developed. In completing the study I am thankful to Dr. N. Parameswaran Nair, Professor and Director, School of Management Studies, University of Cochin for his invaluable guidance and constant encouragement. ii My thanks are also due to all my colleagues in the School of Management. I would however like to men­ tion in particular my obligation to the late Professor (Dr.) K. Nanukuttan Nair of the School of Management Studies and Dr.V. Karunakaran and Dr.K.C. Sankaranarayanan, Professors, Department of Applied Economics, University of Cochin. I will be failing in my duty if I do not also express here my very sincere and deep appreciation of the help I have received from Messrs. Oommen Mathew, G. Antony, A.G. Balasubramanian and P.R. Wilson of the School of Management Studies. I am deeply indebted to all those managers in the different public sector organisations who extended their full co~operation in the conduct of this study. I have been inspired by my students for the searching discussions we had on several of the issues raised in this study. I also remember with great affection the generous help I received from Miss. Elizabeth Abraham and Mr.Scaria Verghese, Librarians; Mr.M.S. Mukundan and his team for the secretarial assistance and Mr.N. Appukuttan Nair for the neat reproduction of the copies. School of Management, Cochin — 682 022, June 1., 1983. N. CHANDRASEKHARAN PILLAI C O N T E N T S Preface i - iiPage CHAPTER INTRODUCTION 1 - 28 The Role of Public Sector 1 Management — The Crucial Factor 3 ThePhilosophy Public of and Public Private Sector Sectorin India 1210 UHQUJNFA co Managers in Public Sector 17 II METHODOLOGY AND LITERATURE SURVEY 29 — 58 SignificanceThe Problem of the Problem 29 V31 General Objective of the Study 39 ScopeProfile of the of Executives the Study Surveyed 44 47 SecondaryLimitations Sources of the Consulted Study 5651 00 000000 CO<10\U‘I+l>»o.>ro|—-r Scheme of Dissertation 58 III »MANPOWER PLANNING 59 — 110 ProblemsIntroduction of Definition 59 64 Functions of Manpower Planning 66 ManpowerUtility of Planning Manpower at the National Planning Level 73 68 CmU1#LD&JF Utility of Manpower Plan at Corporate ManpowerLevel Planning and Corporate 74 Planning 77 0 0 0. 000.9 0 O‘O0.00000 Manpower Planning and Organizational O CH3 OCDCJOCDCD ‘O{DC)OCDC)O%D OCDCDOCD (M WLU (DUJ@LMUJ® UTNFQKJNIQKJN F*%F4F’F KO CD\1 0 0 0 06 I O 0 O to 0 O Planning 81 Distinctionand Organizational Between Manpower Planning Planning 83 COntd..a CHAPTERContents (contd..) Page 3.10.0 ManpowerPlanning Planning and Career 84 3.11.0 Manpower Planning and Budgeting 85 3.12.0 The Process of Manpower Planning 86 3.13.03.14.0 Techniques Job of AnalysisManpower Planning 91 96 3.15.0 Limitations of Manpower Planning 98 3.16.0 ManpowerUndertakings Planning in Central Public 102 3.17.0 ManpowerConcerns Planning inin Public Kerala Sector 104 IV JRECRUITMENT AND SELECTION 111 - 230 4. 2.0 1.0 Independence Introduction and After 111 113 4. 3.0 The Committee on Management Development 120 4. 4.05.0 The Remuneration Problems of Recruitment Policy 126120­ 4. 7.06.0 Delay Campus in Selection Recruitment Process 132133 4. 8.0 9.0 Personnel Executive Recruitment Profile Policy 140 134 4.11.04.10.0 Selection Interview Techniques 163 151 4.13.04.12.0 The The Office Board of of the Directors Chairman 164179 4.15.04.14.0 Selection Direct ~ Recruitment Senior Managers 211 194 4.16.0 The Unique Practice in Kerala State 4.17.0Financial Executive Enterprises Trainees SchemeLimited 213212 4.18.0 Induction of Business Graduates 220 4.19.0 Need for Imaginative Policy in 3.20.0 RelevanceSelection of Harbison and Myers 224 Model 228 contd... ContentsCHAPTER (contd..) Page V MANAGEMENT5. 1.0 Introduction TRAINING 231 231— 322 5. 2.0 3.0 Development Indifference of ProfessionalManagement of Soviet Union 238 235 5.S. 4.05.0 Developments Training in in Public Afro-Asian Services Region 247 242 5. 7.06.0 Organizational Training — DevelopmentDefinition 253 257 5. 8.0 Problems of Management Development 264 5.10.05. 9.0 Methods The ofTraining Training Needs Needs Analysis 277 284 5.11.0 Training Programmes in Public Sector 293 5.12.0 Centre for Management Development 302 5.13.0 Elitism in Management Development 310 5.14.0 ManagementCountries Development in Developing 314 VI «CONCLUSIONS AND RECOMMENDATIONS 323 — 331 ANNEXURES 332 ~ 359 /SELECTED BIBLIOGRAPHY 360 - 379 'k‘k-k:k*'k Table LISTNo. OF TABLES Page 2.1 Break~upKerala of in Public terms Sector of their Companies Profitability in 30 2.2 Growth of Public Sector Units in Kerala 32 2.3 NumberAdministrative of Companies under Departments Various 38 2.4 Age Group of the Executives 48 2.5 Educational Qualifications of Executives 49 2.6 Professional Background of Executives 50 2.7 Job Hopping of Executives 51 4.1 RemunerationPerception Policy of of theExecutives Public Sector: 130 4.2 Opinions Regarding Personnel Policy 137 4.3 Opinion about the Influence of Trade Unions in Formulating Personnel Policy 138 4.4 Opinionin Formulating about the Influence Personnel of Government Policy 139 4.5 Size of the Board of Directors 168 4.6 TotalDirectorship Number and the Break Up of 172 4.7 MultipleOfficials Directorship held by Government 173 (contd...) (List of Tables - contd...) Table No. 4._8 Companies wherein Government Officials are Predominant in the Board of Directors 175 Companies wherein Politicans Predominate in the Board of Directors 176 Composition of Chairmen and Chief Execut­ ives of Public Sector Companies in Kerala 185 Opinion regarding Promotion Policy 204 Views on Communal Representation in Selection of Executives 205 Opinion Regarding Performance Appraisal System 209 Opinion Regarding the use of Appraisal System on Promotion Decisions 210 Percentage of IIM Students Placed in Private and Non-Private Sector 220 Sources of Recruitment of Executives 222 Opinion Regarding the Influence Involved in Selection of Executives 227 Opinion Regarding Fairness of Executive Selection 228 Training and Improvement of Performance 271 Training for Superiors for Better Performance 272 (contd...) Table(List of Tables — contd...) No. Page 5. 3 Interesta Training of Top Management System in Developing 273 5. 4 MethodsPublic of Training Sector Need AssessmentConcerns in 285 5. 5 FairnessTraining in Selection Programmes for Management 289 5. $ ParticipationProgrammes of Executives in Training 297 5. 7 Preference of Pedagogic Method 298 5. 8 Conduciveness of Environment for Applying the Knowledge and Skills Acquired ProgrammesThrough the Management Development 301 S. 9 Management Development Programmes Conducted from 13th August 1979 to DevelopmentDecember 1982 by Centre for Management 304 5.10 Organization based Programmes conducted by Centre for Management Development 308 5.11 ExpenditureDevelopment Pattern of Management Courses 312. *'k*k*-k‘k*** CHAPTER I INTRODUCTION 1.1.0 THE ROLE OF PUBLIC SECTOR 1.1.1 In the latter part of the twentieth century the concept of the role of State intervention in economic activities has undergone a remarkable change. Regardless of ideological background, State intervention of a positive kind in the ownership, operation and regu­ lation of industries and services has now become a part of governmental activityl. This is found “in a great variety of countries-—in new nations seeking to modernise their economics as well as in the mature States striving for more flexibility in their administration of public policies, in dictatorship as well as democracias, in nations under capitalism as well as those under democratic socialism"‘."1 1Robson, William, A., Natignglised_;Qdustry and Public Ownership (London: 1972) p.17, For the role of _Public Enterprises in Different Countries, see, Hanson, A.H. (ed) Public Enter rise: A Stud1Eof_;gs Organization and Mana ement in Various Countriesf_T§russels: 1955), Friedman: W., (ed) The Public Corporation: A Cggparative Symposium (London: 1964f} United Nations, Organigation, Management and Supervision of Public Entegpriges in Degglgpipg_Cgupjr;es, TNew'York: 1§74T. 2MuS<>lf« Llyode Du £991is.ownsr:.sl1..it19__an_d_»E;cic2’1:1_*2­ ability: The Canadian Experience-'TCamoridge, Massachusettiz T9597 p.vii. $9 1.1.2 The public sector has a special and more significant role to play in a developing country like India having a mixed economy, where planning is playing a key role. As Hanson has rightly observed, not only is the success or failures of the economic plans of the Indian Government a matter of life and death for some six hundred and fifty million people, it will be widely regarded as a conclusive answer to the question, present in the mind of the people in every part of the underdeveloped world, whether there is practicable alternative to communism as a means of rapid economic development.
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