Exactly, there is a myriad of problems which people don't understand. Everything cannot be solved by willpower alone, you gotta make the structural changes and introduce the driving forces that bring results.
Finances- It is an asset-heavy organization with very poor capital flow and extremely restrictive capital raising capacity. Government itself does not fund it enough and the company can't raise capital on its own. Also, there are swathes of unused assets spread across India which can be monetized to give them capital to work with.
Operations- Lesser said the better. Now the situation has improved, but earlier a mechanic's shop had more clean shopfloor than HAL's.
Read here Most of the employees are career HAL guys who have neither interest nor the know how of improving operations.
HR Management- They hire freshies on the basis of an extremely theoretical examination and the ones who don't get into oil marketing companies (iocl, ongc etc) come to HAL due to shitty pay in the beginning. No concept of talent management or focused lateral hiring from the industry. Recently they had published an opening for GM Operations i guess and the mandate was to have an experience in CPSEs. I mean how does running refinery in IOCL is similar to making planes in HAL. Why not someone from Boeing, LM or such?
Marketing and Business Development- Earlier they had no concept of these things and they had the Govt as the caretaker which gets them screwdrivergiri contracts (read ToT and license manufacturing at freaking higher costs), and the Services as the captive customers. During recent times, due to the pressure from the Govt. to export stuff, they have started to study the international markets and engaging with foreign clients to explore opportunities.
Legal Framework- Broad sweeping laws like Prevention of Corruption Act and politically motivated parliamentary committes like the Committee in Public Undertakings. Govt auditors work as if they are on a venegeance mission against the one being audited and show the potential opportunities as an actual loss to the exchequer. Such frameworks only ensure that the 'good guys' stay shit-scared and the bad guys don't give a flying F to these annyway.
Import Lobby- These vultures are well known- within the forces, the bureaucracy, and the political leadership.
You just cannot 'improve' these things in an institution. Without the driving forces in place, it is foolhardy to expect results.