Management of State-Owned Enterprises: The Case of Indian Railways

Organizations　and　managers　in　the　for-profit　private　sector　have　traditionally　attracted　the　greatest　attention　from　management　scholars　and　the　media.　In　recent　times,　with　countries　all　over　the　world　moving　towards　more　market　based　economies,　managerial　issues　in　state　owned　enterprises　(SOEs),　or　public　sector　organizations　(PSOs)　as　they　are　also　known,　have　started　to　elicit　the　interest　of　researchers.　Governments　in　many　countries　have　tried　to　subject　SOEs　to　the　discipline　of　the　market,　through　stock　market　listings　and　opening　up　hitherto　state-dominated　sectors　to　competition　from　private　organizations.　As　SOEs　have　come　under　the　influence　of　the　market,　a　key　challenge　facing　them　is　striking　the　right　balance　between　social　and　economic　(efficiency)　goals.　In　this　paper,　we　study　the　performance　of　Indian　Railways　over　a　sixty　year　period　(1950-51　to　2010-11)　to　see　how　it　has　attempted　to　strike　a　balance　between　social　and　economic　criteria.