Egocentricity, groupism at board level harm firms, says Singh

"Egocentricity" and "groupism" at the board level impact companies leading to long term harm, Steel Minister Chaudhary Birender Singh said today while highlighting the importance of synergy and teamwork in state- owned firms.
Accountability and responsibility have to begin at the top and the system for rewarding good performance and disincentives for poor performance should apply at all levels, he said.
He also asked all the PSUs operating in the steel sector to finalise and implement joint ventures and special purpose vehicles in a time bound manner, besides ramping up of modernised units within designated time-frame.
"Lack of coordination, one-upmanship, groupism, egocentricity, micro-vision at board level not only impact the company adversely in short term but also lead to long term harmful consequences," he said at the brainstorming session with key stakeholders in the steel industry in Chandigarh.

According to the ministry's statement released here, Singh further said: "There are pockets of excellence in each plant and unit, which need to be replicated and the whole steel plant should become a hallmark of excellence. That is possible only when the plant aims to achieve international benchmarks of excellence in production and quality."
In a bid to promote healthy competition among the steel PSUs, the government, he said, will judge and announce a 'Plant of Excellence' which will be based on overall performance.
Singh said that he would take the stock of performance at both plant and unit level and the steel ministry will closely monitor the output performance.

"Responsibility for time and cost overruns will be fixed as a norm from now on," the minister, said adding that any genuine difficulties and constraints could be emphasised in such review meetings for quick remedial action.