Top management selection for public enterprises: is private sector model appropriate?

Abstract

Top management selection for public enterprises has been a continuing problem for the Government. Scores of public enterprises, including some big and important ones, remain headless at any time, despite Government efforts. Actual tenures have remained short and a satisfactorily long average tenure stilt remamvorrir" a* §oot.

In this timely article, Professor Murthy questions the appropriateness of the model of enterprise used in public enterprise. The top manager's job and the problem of relating the man to public enterprise using four planning and control models—private enterprise, staff, middle management, and factory manager. The power of appointment to improve performance is enhanced if the choice of the person, the enterprise's needs, and the planning and control model that the government is able to use are in balance. Drawing from experiences of public enterprises in India, Turkey, and the U.S., he emphasizes how political power can strengthen the appointment process and, thus, the performance of the public enterprise.