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Public Enterprises Selection Board

The Public Enterprises Selection Board [P.E.S.B] is a high powered body constituted by Government of India Resolution dated 3.3.1987 which was subsequently amended from time-to-time, the latest being on 11.11.2008.

The P.E.S.B has been set up with the objective of evolving a sound managerial policy for the Central Public Sector Enterprises and, in particular, to advise Government on appointments to their top management posts.

The policy of Government is to appoint through a fair and objective selection procedure outstanding professional managers to Level-I and Level-II posts and posts at any other level, as may be decided by the Government from time to time. Government have also recognised the need to develop a cadre of professional managers within the public sector. Hence unless markedly better candidates are available from outside, internal candidates, employed in the PSE, will be preferred for appointment to Board level posts. However, if internal candidates are not available, preference will be given to candidates working in other PSEs, either in the same area of business or in other areas. Mobility of managerial personnel among PSEs within the same sector or group, failing which mobility within the public sector as a whole will be encouraged, subject to certain limitations.

Functions of P.E.S.B

Specific functions assigned to the P.E.S.B include the following :
  1. To be responsible for the selection and placement of personnel in the posts of Chairman, Managing Director or Chairman-cum-Managing Director (Level-I), and Functional Director (Level-II) in PSEs as well as in posts at any other level as may be specified by the Government;

  2. To advise the Government on matters relating to appointments, confirmation or extension of tenure and termination of services of the personnel of the above mentioned levels;

  3. To advise the Government on the desired structure at the Board level, and, for senior management personnel, for each PSE or group of PSEs;

  4. To advise the Government on a suitable performance appraisal system for both the PSEs and the managerial personnel in such enterprises;

  5. To build a data bank containing data relating to the performance of PSEs and its officers;

  6. To advise the Government on formulation and enforcement of a code of conduct and ethics for managerial personnel in PSEs;

  7. To advise the Government on evolving suitable training and development programs for management personnel in PSEs.

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