John H. Patterson, who, between 1884 and 1921, founded and ran in the US the National Cash Register Co., now better known as NCR, adopted blunt methods when he had to sack executives, which, incidentally, he did pretty often. Once, he is said to have set afire an executive's desk and chair on the company's lawns to get across the message. Patterson had other idiosyncrasies, which he was never inhibited from demonstrating: executives were weighed and measured twice a year and NCR's board even had a 'face reader' who assessed Patterson's executives (Fortune, November 18, 2002). As CEO, Patterson was a tyrant and he got his just desserts when he and some of his senior colleagues were convicted for various violations. It would be hard to find a CEO like Patterson in today's US corporations, despite the rash of misdemeanours that have surfaced recently in Corporate America and the tarring of those once prestigious three letters in upper case.

To be fair, Patterson cannot strictly be classified as a CEO. For, with most of NCR's stock owned by him, he was more an owner than a hired chief executive. But he was one of a dying breed of Corporate America's owner-entrepreneurs, who by the early part of the 20th century had passed the baton on to hired 'outsiders' to run their companies and report to a board of non-executive directors.

In Corporate India, although not much publicised, there have been cases of Patterson-like behaviour. The head of a Delhi-based family owned group has been known to rough up his senior executives, on one occasion slapping one of them in public. Another boorish takeover tycoon laced his speech liberally with abuses and scatological references at board meetings, directing his ire at his managing directors, whom he openly referred to as "servants".

In many respects, Corporate India still resembles pre-20th century Corporate America, with owner-managers calling the shots at most big companies. Of the top 50 Indian companies (I have deliberately left out the MNCs) on the BT 500, just 15 companies have CEOs who are not owners. Of them, four belong to the Tata group and one, an infotech firm, is a relatively new company where the current top management almost entirely comprises the founders who began it all. Discounting these-the Tata companies because non-owner managers have traditionally run them-it seems that just 10 of the 50 most valuable Indian companies are run by hired CEOs. The rest are still managed by owners-some of them first generation entrepreneurs, others second or third or even fourth-gen owners.

Some of these companies, like Dabur India or Zee Telefilms, have tried hiring CEOs from outside and then reverted to being family-managed. In some cases, the hired CEOs were fired but none, of course, by methods that Patterson used to adopt. Corporate India is boringly dull by Patterson's standards. Even when CEOs are actually fired, it is done coyly. The boards of the companies play it down, the media is uncharacteristically lenient and even shareholders create little fuss. It is de rigueur to label what is actually a sacking, as a CEO's own decision to move out, saving him face.

But at very few large Indian companies and business groups, are owners willing to give up control and vest executive powers to an outsider. At India's largest private sector group, Reliance, though professional managers head different businesses, duly empowered and accountable, the chief executive's role is firmly with the Ambani brothers. For nearly every other business family it is the same. Even though there may be a hired CEO, who runs operations, when it comes to key decisions on business strategy it is the owner who calls the shots.

To be sure, there is nothing necessarily wrong with that. After all, successive generations of owner-families can throw up winning managers. Except that as long as Indian companies, especially the large groups, continue to be predominantly owner-managed, they will be unlikely destinations for the best managers, particularly now, when they are faced with an increasing number of opportunities from MNCs-both in India and abroad.

-Sanjoy Narayan

REPORTER'S DIARY
A Taste Of China
Chinese manufacturers display their might at New Delhi's international trade fair.

The China Fare: (From top) An aerial view of the Chinese pavilion; and visitors take a closer look at the motorcycles monto Motors has on offer

Why does the Indian government hate us so much?" asks Chen Yan Yang in relatively fluent English. Chen is sitting in his 9 sq metre stall inside Hall 18 at Delhi's Pragati Maidan, which is playing host to the 22nd India International Trade Fair (IITF), and his agonised question is actually in reply to a question I had asked him: Does Xiagoing Jituan Fork Lift Plant, which Chen is representing at the 14-day fair, plan to sell fork lifts in India? The first part of his answer was a cautious No, and this-the longer latter half-was the impassioned explanation of why not. I try my best to assure Chen that that's not the case, but the man has made up his mind.

But how could he? Did he not see, for instance, the crowd streaming into Hall 18, where companies from 17 different countries have their wares on display? How could he also not notice that the country that hogged the most space and-not necessarily because of a mathematical correlation-attracted the most visitors, was China? Obviously, China's reputation as a price warrior is a secret known not just to merchandisers and traders. And this Saturday morning, there seemed to be plenty of bargain seekers around. In fact, I am told that by the time the exhibition winds up on November 27, over 12 lakh visitors would have walked through the China stalls.

There are 118 Chinese companies here displaying products ranging from chinaware to clothes, from food products to rubber parts. Most of the products aren't on sale and the few that are, aren't exactly cheap. But what surprises me is the presence of half-a-dozen Chinese two-wheeler manufacturers-never mind that Automotive Research India (ARAI) has been failing one Chinese bike after another on the pollution test. But that may soon change. The Zongshen Group, for instance, had on showcase a 125-cc motorbike made especially for India. Priced at Rs 35,000, the motorcycle is said to be Euro II compliant. ''We are scouting for an Indian partner and we are talking to many companies here,'' Tang Shuli, Zongshen's Director (Law and Policy) tells me.

Next to Zongshen is Monto Motors. Its General Manager (Marketing), R. Chibbar takes me over to the Monto bikes. He shows me the 110-cc Cosmo Bright that the company launched in India in March this year. It costs Rs 33,000-Rs 5,000 more than the cheapest 100-cc bike on the market, the Bajaj Boxer. One reason why it has sold just 9,000 units so far. Yonder, there's the Cosmo Cruiser-a 150-cc cruiser that Monto plans to launch some time in the middle of next year at a price of Rs 55,000. The Heros and Bajajs better watch out.

There's more than just two-wheelers or household appliances on offer. Porcelain ware, utensils, clothes...they don't call China factory to the world for nothing. I am tempted to pick something up, but then I hear that the Consortium of Women Entrepreneurs of India next door has some great bargains going. Casting one last glance to see if I can spot Chen, I make my way out. Sorry, Mr Chen.

-Swati Prasad