Public Leadership in a Public Sector

Abstract

The traditional definition of “Public Leadership” has been attributed to a person who holds an influential position in the service of the public, for example, a Mayor or Councillor. Public‐sector undertakings (PSUs) were set up to serve the public in aspects of the economy that had direct impact on the lives and well‐being of people at large (e.g., the oil and banking industries in India). Two main issues that confront PSUs in India are the ability to attract talent vis‐a‐vis multinational corporations, and the ability to provide “entrepreneurial” and fast‐track career‐development opportunities. The PSUs where public leadership is prominent are the industrial sectors of oil and banking, because these two sectors are directly associated with international markets. Historically, these two sectors in India were nationalized in the mid‐70s and came under the “public leadership” of bureaucrats and their politician bosses who knew very little about international markets within which the two sectors operate. Bureaucratic applications in the oil sector did not recognize the global fluctuation in crude oil prices, leading to the promotion of a culture of central government mandated subsidies to protect the general public. The banking sector, under the control of brilliant but inward‐looking bureaucrats in the Central Bank, remained closed to international investments and participation of foreign industrial conglomerates in the Indian economy for over four decades. Consequently, PSUs in India languished due to lack of “public leadership” accountability; this is evident from the demise of ITI, New Government Electrical Factory, HMT in Bangalore and major industrial powerhouses such as Andrew Yule, Jessop, and others in West Bengal. Public leadership needs emphasis because PSUs are the largest employers in India, control the most substantial asset base that must offer a return to both employees and other stakeholders. This paper is about the emergence of public leadership in an oil PSU, through the person of the HR Director. Under his leadership since 2015, the oil company has demonstrated to the oil sector in India that “entrepreneurship” can be nurtured by implementing policies and practices of leader‐development that are at par with global high‐tech manufacturing and fast moving consumer goods multinationals. Finally, emerging into an era that is “Make in India,” public leadership in PSUs will be called upon to deliver a return on equity that does not undermine and is not in conflict with the delivery of public good in a nation that struggles to bring BPL under control.