Understanding Designations in Public Sector Undertakings (PSUs) in India: Head of Department and Leadership Roles

Public Sector Undertakings (PSUs) in India operate under a unique framework where various designations and roles dictate their organizational hierarchy. The head of the department’s role and title can vary significantly from one organization to another, although certain commonalities exist. In this detailed guide, we explore the typical designations and the terminology used for the head of department in a PSU and the CEO structure.

Key Designations in PSUs

The main leadership roles in a PSU typically include:

Chairman / Managing Director (CMD) Chief Managing Director (CMD) Chairman Cum Managing Director (CMD) Chief Executive Officer (CEO) and their respective director or chairman General Manager (GM) or Deputy General Manager (DGM) Assistant General Manager (AGM) Director Vice President (VP) Vice Chairman

The CMD and Presidency

The Chief Managing Director (CMD) is often the highest operational authority in a PSU. In some cases, this title is shortened to Commander, Managing Director, or Chairman. The CMD typically holds the highest position in the organization, overseeing all major decisions and operations.

There is no standard designation for the head of department or the management team, and it can vary widely depending on the functional area and the particular organization. However, the hierarchy often moves from the highest leadership to the departmental heads as follows:

Chairman / Managing Director (CMD) Directors Deputy General Managers (DGM) General Managers (GM) Assistant Managers (AM) Managers (M) Assistant Managers (Level II - AM II) Assistant General Managers (AGM) Dy. General Manager (DGM) General Manager (GM) Tiered Directors (ED) Executive Directors (E.D) Directors (D) Vice Presidents (VP)

Branch-Level and Departmental Structure

At the branch level, the organizational structure can be more granular. For example, in medium-sized branches, the Branch Head is typically in a senior management grade, while departmental heads might be Managers in Scale II. In regional offices or controlling offices, the Regional Manager might be in Grade Scale VI or DGM. The departments are often headed by Chief Managers in Grade Scale IV.

For specialized units, roles like the Chief Managing Director (CMD) of a particular sector or division are common. For example, in a petroleum PSU like Indian Oil Corporation Limited (IOCL), the head of a refinery might be a Director Reporting to the Director of Refineries. The exact title can vary, but the role would typically be referred to as a General Manager (GM) or Deputy General Manager (DGM).

Understanding the Head of Department

The term "Head of Department" (HOD) is a general term used to describe the senior staff member who oversees a specific department within a PSU. Depending on the size and complexity of the organization, the title of the HOD can vary:

For smaller organizations, the HOD might be a Manager (M) or Assistant Manager (AM). For medium-sized organizations, the HOD might be a Deputy General Manager (DGM) or an Assistant General Manager (AGM). For larger organizations, the HOD could be a General Manager (GM), or even a Chief General Manager (CGM).

The exact title of the HOD will depend on the specific organization and its structure, but the role is essential for managing and overseeing the operations and personnel within the department.

Conclusion

While there is no standard designation for the head of department in a PSU, certain common titles emerge based on the organization's size and function. From Assistant Manager (AM) to General Manager (GM) and even to Chief General Manager (CGM), the title can vary. Understanding the role and title of leaders, such as the CMD, Chairman, and HOD, is crucial for grasping the complex structure of PSUs in India.

Whether your interest lies in career progression or simply gaining insight into the operations of PSUs, this guide should provide a solid foundation for understanding the designations and roles in these organizations.