Why Indian Government companies are getting less profits and how to improve this by changing few HR policies

Appraisal System

Appraisal means employee performance evolution. This is based on employee’s individual-work and team-work over a period of 6 months. Implement yearly appraisal system in government companies. Rating should be given to each employee by his co-employees (called as peer review) and by his boss (reporting review). An average of both reviews are taken along with few other parameters like employee conduct, attitude and a final Appraisal-Report is declared to each employee. This information is kept confidential between employee and boss.

  • HR means Human Resource management. This department balances between employee and company aspirations.
How to improve profits in any public organization
Typical employee appraisal is confidential

Promotion System

Only non technical staff, performance evaluation cannot be done, should be promoted based on their seniority (number of years of experience). All other employees including technical employees should be promoted based on the performance parameters and appraisal system as stated above. Promotion given to any employee should be based on merit , qualification and on any outstanding performance done by each employee

Reshuffling System

Employee will loose focus and innovation if he/she is made to work for years, under same department or at same place. It has been already proven that change is always good. Regular reshuffling and transfers should be incorporated in any public company just like any other private company. Care should be taken while reshuffling ( changing internal department within same city). Relocation should be offered to employees at least once in every 3 to 5 years. Reshuffling System will create a feel of a new start and refreshens in employee-thoughts. ( Never settle in single place , so that employees gain complete exposure of company).

Never settle in single place or department, so that employees gain overall exposure towards the entire company/organization


Agile Working model

Generally a two weeks of time in a month is called one “Sprint”. Before start of each sprint, boss and his team should discuss about what are the things to be delivered in two weeks. After both employee and boss agrees on their deliverables, task is assigned to each and every employee (which is recorded on a board or tracker). Employees should target to complete his work in that time frame. If for some ad-hoc reasons, work is not completed, in two weeks, then in the next sprint meeting employee should get some extra time to complete backlog work along with a reason why this work is not completed. This will increase accountability in employees and manager. Agile means short targets. Agile is already a proven concept in most of the private companies

  • A daily standup meeting is a 15 minute discussion with team about what they have done yesterday and what they are going to do today and if there are any blockers in their work, should be drawn to the notice of boss. Agile will reduce work load over employees who are punctual and loyal to the organization. It will minimize people who escape from work

Bonus System

Bonus should not be fixed pay for all employees accross organization or accross any rank(designation). Fixed scale bonus will demotivate employees who are working more for the company. Bonus should be given to everyone, but good performing employees should be given double or more as bonus. This will create positive vibes and interest among employees to concentrate on work.

  • Employees are the backbone of any company, whether is government company or private company. Company with happy employees will never end up losses

Team Entertainment System


To divert employees from routine work, regular in-company entertainment process should be an ongoing process. For example, as part of Employee entertainment system, there should be team outings or team lunch sponsored by the company at least once in every 3 months of period. This will refresh employees and will result in more coordination among employees, eventually minimise employee disputes and upgrade team bonding

Culture Building

Treat every employee equally irrespective of position or rank. Say good bye to “sir” -“madam” culture. Call your boss by his/her name only. This will destroy bossism and improves equality and positive team spirit.

Recruit Cream Talent from around globe

Government company should recruit special team leaders who can give new direction to company and improve innovation. Attract a small number of real cream intelligent people located around globe with proven talent in accomplishing this task. Talent from other places will act like a positive catalyst (Catalyst means a speed increasing substance)


If govt companies follow these simple HR policies, profits will increase , cost will be minimised , timely work completion and eventually avoiding privatisation. We know there is some pain involved in following above steps. These steps will put any organization into profits and positively stop public companies converted to private organisations. NO PAIN NO GAIN.

—— Sridhar Dasamanturao

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