Management audit as a service to public enterprise management: a study of management audit and the memorandum of understanding (MOU) system in India

Despite the dominating role which the public sector has played in the transition of the Indian economy, it still suffers from poor managerial efficiency which has an adverse impact on the financial and operational performance. As a result of this, there is a constant demand from public enterprise managers for increased autonomy in order to ensure better efficiency and effectiveness in public enterprises. The system of MOU and Management Audit by articulating the missions, objectives and expected results along with the methods of performance evaluation goes a long way towards improving the performance of public enterprises. Hence by adopting these strategies public sector management in India is shaping up to face turbulent times.