Consider the following newspaper headlines: “PM says GPL commercial losses embarrassing”; “Power company forecasts $11B shortfall this year”; “Chand urges expert help to save sugar industry”; and “Sugar industry turnaround ‘far from reality’”. It does not take much for the average person to realize how deep-seated are managerial and operational problems facing these two state-owned entities.
I have today decided to write on the subject of the above caption because of its relevance to the way we manage the affairs of the State in general, and state and private sector institutions in particular. For some, this may be just a refresher but it may have important lessons for policy-makers.
Concept of an organisation
Of the various definitions of an organisation, the one propounded by Herbert Simon perhaps captures the essence of what an organisation is. He stated that an organization is a system of inter-related behaviour of a certain group of people. Packard in a
