What is GOPM?
An entity which is owned by government but managed like private entity
Why do we need GOPM?
Private entities are useful when business operation can result into profit. Unfortunately performance of some organization can not be measured by profit. Objective of these organization has to be determined by government.
Based on historical experiences, it has been concluded that government owned entities have poor performance. Hence we need GOPM concept.
Structure of GOPM entity:
1. Board of directors, nominated by government (>5 members). Determine annual performance benchmarks.
2. CEO, professionally selected by board. annual renewal if performance benchmark met.
3. Private Employees. No government benefits.
4. Operation cost is paid by government.
Where GOPM can be applied:
Any entity which is not profit driven but essential for a state.
Example NASA, DRDO
An entity which is owned by government but managed like private entity
Why do we need GOPM?
Private entities are useful when business operation can result into profit. Unfortunately performance of some organization can not be measured by profit. Objective of these organization has to be determined by government.
Based on historical experiences, it has been concluded that government owned entities have poor performance. Hence we need GOPM concept.
Structure of GOPM entity:
1. Board of directors, nominated by government (>5 members). Determine annual performance benchmarks.
2. CEO, professionally selected by board. annual renewal if performance benchmark met.
3. Private Employees. No government benefits.
4. Operation cost is paid by government.
Where GOPM can be applied:
Any entity which is not profit driven but essential for a state.
Example NASA, DRDO
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