B.S.PaniSpan Resources Management

ServicesBhubaneswar

<bspani@indiatimes.com>

An organization or group of persons that is identified by a particular name and that acts, or may act, as an entity.

Typical examples of corporate bodies are associations, institutions, business firms, non-profit enterprises, governments, government agencies, religious bodies, religious bodies, and conferences.

Governance represents the owners, or the interest group of people, who represent a firm, company or any institution.

Governance represents the will of these interest groups who manage the company.

Governance consists of a governing body, which directs the management on all aspects of a company.

It is the governing body that oversees the overall function of an organization.

The governing body appoints management personnel, whom are given the power to administer the organization.

Management comes only second to the governing body, and they are bound to strive as per the wishes of the governing body.

Governance chooses top executives, evaluates their performance, authorises plans/commitments and evaluating the organization’s performance.

Management has the responsibility for managing and enhancing the overall performance of the organization.

Management has the responsibility to implement the systems of governance.

In the feudal system, it was the ruler who held all rights to buy and sell either directly or through his/her agents.

Any trading or manufacturing activity had to be done with the permission of the ruler and after paying a charge for the said permission.

In the colonial rule – the hold on trade and commerce was strongly held by the colonial ruler and all commercial activities were primarily to be conducted for the benefit of the colonial nation and its citizen.

A handful few Indian entrepreneurs like Jamnalal Bajaj, Ghanshyam Das Birla, Wadias, Dalmia, Chettiar etc. started business both with a nationalistic feeling and commercial interest to fill up opportunity gaps where British were reluctant to enter as they got pre- occupied with WR I & II and the needs of Indian market increased– textile, steel, chemicals, light machinery, pharma etc.

Post independence saw the emergence of Indian Public sector and increasing role of controlled/Mixed economy.

Indian Indusrialisation process took off with the first five year plan launched in early 1950s.

Attempt was to introduces inclusive growth- pan India and over different layers of Indian society.

Private sector was allowed growth in a controlled manner to conserve/better utilise precious internal resources.

The corporate governance system still remained in line with what Britishers had left behind.

Tatas had introduces the principle of trusteeship and public participation in 1950s.

Dhirubhai Ambani in late 1970s and 1980s, changed the Indian Corporate Governance system by introducing the concept of mass and public participation in corporate building and its governance.

India liberalized economy – 10 years after China had done so!

Licence Raj slacked. Public sector role got redefined. Protection for Public Sector came down. New breed of PSUs emerged. With competition- emergence of globally

competitive private sector and entry of multinationals in domestic market – India grew out of the “Hindu Rate of Growth” syndrome.

Growth rate of 8-12% would take per capita income in India ‘zoom’ past $ 1500 level by 2015.

By 2015 we would be where – Malaysia was in 1995; Indonesia in 1997; Thailand in 1998, China in 2000 and USA in 1950s.

So- we know the long way we have to go and also the opportunities going to be available to the Indian corporate sector to grow !

Professionalism would be redefined as wealth creator, innovator, motivator and performer and not just a degree holder and scion or family inheritor.

Entrepreneurship would hold premium. Corporate Governance structure would

become more public controlled- professional oriented and socially concious.

Now- let us debate!!!