You are on page 1of 79





MBA 2002-2004

I acknowledge the support and guidance provided by the Faculty
of my institute, Rukmini Devi Institute of Management.
I wish to express my sincere gratitude to Mrs. Bindu
Arora( Administrator,Kolmet hospital), Mrs. Nidhi Chopra
(Administrator, Jeewan Hospital), Mr. Ashutosh(HR Manager,DRL),
Mr. Shiva Kumar(HR Head, Apollo Hospital), Mr. Rajesh(HR Head,
AIIMS), Mr. Rajiv Singh(Administrator, Ram Manohar
Hospital), Mr. P.K Mongia(Administrator, Safdurjang Hospital), Mr.
Arun Gogia(HR Head, Ranbaxy), Mr. Vivek Gupta(HR Manager,
My gratitude also extends to the other people of the hospitals and
the pharma companies where I visited to collect the information
related to my project who guided me to complete the project.
I also extend my sincere thanks to all the staff members of these
reputed organizations who encouraged me and gave me valuable
information about the company.
My gratitude to my HR teacher and Project Guide, Ms.Supriya


The overall objective of my project is basically to study the HRD
activities being carried on in various organizations. I specifically
took hospitals and pharma companies for this purpose. I have
collected the data from various hospitals as well as the pharma
companies in Delhi, and on that basis I have completed my
project. I have also made a comparison between the two. I
specifically took these companies/institutions as one is a service
industry and another is manufacturing one. Moreover, the two are
quite inter-linked with each other. I have also given few of the
recommendations to improve the HRD procedures in these
It is a fact that Human Resource Development is an important
area and is really progressing these days. But its importance is
being neglected in few of the organizations.

HRD is the emerging thing of today. Every organization whether
large or small can not be left untouched by the HRD. HRD has
become a movement in country. Ten years ago hardly any
organization had HRD departments or talked about it. Today it is
difficult to find organizations that employ large number of people
that do not talk about HRD.
In spite of this popularization of HRD in the last few years,
success experience of HRD is limited to a few organizations and
many others are yet to translate their goodwill into action. But
even today, Organizations in the service sector continue to
neglect it.
But HR is much more progressing in the manufacturing sector.
There are a lot many new concepts which are emerging in this
field like Stress management, Self Development, Achievement
Motivation, Emotional Competence, Organizational Intelligence

etc. If these companies would not invest in the people they would
not have grown and expanded.
Now-a-days organizations and their top management have
recognized that HRD cannot be limited to a few employees in
coverage. It is also recognized that HRD is too important to be
left informal processes to take care of and that it should be a well
planned activity.
In nutshell, we can say that the service sector has a lot to learn
from industry.

On the basis of the research conducted, here are a few of the
Every institution should be treated as an independent unit
for HRD purposes.
Separate budget allocations should be made for HRD
department in the organizations.
Organizations should be encouraged to plan their own
New competencies to handle the HRD function should be
developed among these institutions/departments.
Organizations should explore the use of various mechanisms
in developing service and managerial competencies of their


Chapter 1


Chapter 2


Chapter 3


Chapter 4


Chapter 5


Chapter 6


Chapter 7


Chapter 8




The topic of my project is HRD in organizations. For the purpose
of my project, I have chosen hospitals and pharmaceutical
companies. I have collected the data from various hospitals as
well as the pharma companies in Delhi, and on that basis I have
completed my project. I have also made a comparison between
the two. I specifically took these companies/institutions as one is
a service industry and another is manufacturing one. Moreover,
the two are quite inter-linked with each other. I have also given
few of the recommendations to improve the HRD procedures in
these organizations.
To start with, one should know the meaning of service
sector. What exactly is a service sector?
Service sector basically includes all those industries which
are not directly into manufacturing goods but are serving the
society by providing services. It includes all those facilities which
are provided to the consumers by the big or small corporates.
To name a few, the following can be the services:

Educational Institutes
Call Centers
Interior Decoration

And many more. There is no end to the services being

provided. All these services taken together constitutes the
service sector.
For the purpose of the Research, I am taking just one aspect of
the whole service sector that is the Hospitals. I studied the HR

procedure in these Hospitals. I made the Survey on How the

Human Resource Development is undertaken in these
To talk about manufacturing sector, a manufacturing unit is one
where manufacturing process is undertaken i.e. there must be
some transformation. Some article must be transformed into
some other different item, which has different name, use and
title. According to Factories Act, 1948, it includes:

Making, altering, repairing, ornamenting, finishing,

packing, oiling, washing, cleaning, breaking up,
demolishing or otherwise treating or adapting any article
or substance with a view to its use, sale, transport,
delivery or disposal or


Pumping oil, water, sewage or any other substance, or;


Generating, transforming or transmitting power; or;


Composing types for printing, printing by letter press,

lithography, photogravure or other similar process or book
binding; or


Constructing, reconstructing, repairing, refitting, finishing

or breaking up ships or vessels; or


Preserving or storing any article in cold storage.

For the purpose of the project I undertook just one aspect of the
manufacturing enterprises i.e. pharmaceutical companies. I
collected my data with the help of well designed Questionnaire
and getting it filled from few of the major pharmaceutical

What is HRD?
People is the most important and valuable resource every
organization or institution has in the form of its employees.
Dynamic people can build dynamic organizations. Effective
employees can contribute to the effectiveness of the
organization. Competent and motivated people can make
things happen and enable an organization to achieve its goals.
Therefore, organizations should continuously ensure that the
dynamism, competency, motivation and effectiveness of the
employees remain at high levels.
Human Resource Development is thus a continuous process to
ensure the development of employee competency, dynamism,
motivation and effectiveness in a systematic and planned way.

HRD has multiple goals. These include:
Employee Competency Development Employees require
a variety of competencies (knowledge, attitude, skills in
technical areas, managerial areas, behavioral and human
relations areas and conceptual areas) to perform different
tasks or functions required by their jobs. The nature of
job is constantly changing due to changes in the
environment, changes in organizational priorities, goals
and strategies, changes in the profiles of fellow
employees, changes in technology, new opportunities,
new challenges, new knowledge base etc. such a change
in the nature of jobs requires continuous development of
employee competencies to perform the job well.

Develop the individuals capabilities to perform his present

job better HRD aims at constantly assessing the
competency requirements of different individuals to
perform the jobs assigned to them, effectively, and
provide opportunities for developing their competencies.
Develop the capabilities to handle future likely roles
HRD also aims at preparing people for performing
roles/jobs/tasks/functions which they may be required to
perform in the future as they go up on the organizational
hierarchy or as the organization takes up the new tasks
economization, etc. HRD tries to develop the potential of
employees for the future likely jobs in the organization.
To identify competency gaps- Another aim of HRD is to
identify competency gaps of employees to perform the
present roles/jobs/tasks/functions effectively and create
conditions to help employees bridge these gaps through
Motivation Development Motivation means desire to
work or put in work effort. It is a commitment to the job,
work and the organization. It is also the desire to make
things happen. Without motivation employees are not
likely to give their best. Having technical and managerial
and human competencies are not enough for effective
performance on the job. HRD aims at developing and
maintaining high motivation level of employees to the
maximum extent possible so that they can become
dynamic contributors to organizational goals.
Strengthen superior subordinate relationship HRD aims
at strengthening superior subordinate relationship by
creating a climate of trust, mutual understanding and

subordinates as his responsibility, seniors support their

subordinates and juniors respect their seniors.
Strengthen team spirit among different teams - There is
promotion of collaboration among various individuals,
teams and departments; people say what they mean, do
what they say and where people can be trusted. This can
only be possible with the help of HRD.
Promote inter-team collaboration - HRD aims at
promoting collaboration in the teams existing in the
organizations. It develops a climate where people can be
encouraged; problems are diagnosed, confronted and
solved collectively or individually.
Promote climate development and organizational health
development HRD aims at climate development. A
healthy climate is one where the free expression of ideas,
opinions and suggestions is encouraged; problems,
mistakes and difficult situations are handled with a
learning orientation; participation is encouraged; every
incident is treated as a learning opportunity; people have
sense of satisfaction from their work; people feel that
they are cared for and have a sense of belonging. It aims
at developing such a climate thorough periodic diagnosis
and appropriate intervention.


There are many instruments that can be used to facilitate HRD.
These instruments may be called sub-systems or methods or
techniques or aids. Each instrument or sub-system focuses on

some aspects of HRD. To have a comprehensive HRD many of

these instruments may needed to be used simultaneously.
Any systematic or formal way of facilitating competency,
motivation and climate development could be considered an
HRD instrument. The most frequently used instruments are
the following:

Manpower planning
Performance Appraisal and Feedback
Training, Education and Development
Potential appraisal and development
Career planning and development
Compensation and reward
O.D Techniques
Role Analysis and development exercises
Quality of work life and Employee Welfare
Participative Devices
Grievance Redressal
Data Storage and Research
Industrial Relations

These instruments are explained one by one:

Manpower Planning- it is the sheet anchor of all
these efforts. It is concerned with the assessment of
manpower needs, including forecasting such needs
based on the analysis of the policies of the company,
trends of its development, plans for diversification, etc.
it is also concerned with manpower audit, i.e.,
examining whether manpower strength for various jobs
is inadequate or more than what should be employed.
Both understaffing and overstaffing may be highly
demotivating for the company. It is linked with the
corporate plans on one hand and job analysis on other.

Performance Appraisal and Feedback- It is a very

critical HRD mechanism under which the performance
of an employee is periodically appraised by the
employee himself in collaboration with his boss. In the
light of the difficulties faced by the employee he
redefines his future goals, the mechanism emphasizes
the development of the employees (by identifying their
growth needs) rather than their evaluation. Open,
objective and participative appraisal and feedback
develop better superior-subordinate relations. During
the appraisal interview the superior shares the
concerns of the subordinate and even guides him to
achieve his targets.
Training, Education and Development- There are 3
different HRD mechanisms with
different focus and
purpose; training, education and development. Three
broad areas in which training may be imparted are
technical, behavioral and conceptual. It is commonly
believed that the rank and file workers need training in
the technical area only. Training in the other two areas
is not very useful for them. But recent experiences of
many Indian companies, such as Petrofils (Baroda),
have shown that behavioral training to workers
produces several useful results such as the following:

Improvement in worker's behavior with their superior

and peers.


Development of we feeling instead of I.


Decrease in the habit of hiding one's own mistakes

and highlighting others' mistakes.


Increased interest in suggestion scheme.


Increased awareness of family needs and more

interest in family affairs.

Potential Appraisal and Promotion- It is another
important HRD mechanism which is concerned with
identifying the potential of an employee for future
development and promotion in the company. This focuses
on finding out periodically the extent to which a given
individual possesses the critical attributes required to
handle higher level responsibilities. Thus it is linked with
job and role analysis. In HRD promotion is not considered
to be a reward: This is because it is not based on
performance but it is based on the potential of an
Career Development and Career Planning- It may be
useful to help new employees become aware of the various
phases of development in the company, and plan with senior
employees their specific career path. Necessary help may
also be given to employees with limited potential to cope
with reality. In the HRD system, corporate growth plans are
not kept secret. They are made known to the employees to
plan their career.
Compensation and Reward- These are common positive
reinforcers. They should be, clearly related to the
performance and behavior of employees. Failure to reward
employees properly or over rewarding undeserving
employees reduces the reinforcing effect of rewards. Under
HRD while salary structure is based on job analysis, salary
increase is linked with performance.
O.D Techniques- Many organizations make use of
several O.D techniques for the development of their
organizational mirroring, T-group, etc. In team-building
people learn how to work in collaboration with each other.

Under organizational mirroring, the host group gets

feedback from representatives from several organizational
groups about how it is perceived and regarded. The
intervention is designed to improve the relationships
between groups and increase inter-group effectiveness. In
T-groups participants learn to be more competent in interpersonal relationships. They learn about themselves, how
others react to their behavior and about the dynamics of
group formation, group norms and group growth.
Role Analysis and Role DevelopmentThis is an
extremely important technique of HRD. Under it the job of
an individual in the organization is analyzed and enriched
in terms of his role and not in terms of his job. He, his
immediate superior and subordinates sit together to
discuss their expectations about the job from each other.
They then arrive at a consensus about the individuals role
and prepare his role description. It is always ensured that
a role is sufficiently challenging for the individual,
provides him adequate autonomy for taking initiative and
is linked with other organizational roles to avoid a feeling
of isolation. Whereas role analysis, role development and
role description are usually related to managerial jobs, job
analysis, job enrichment and job description are related to
workers job.
Quality of Work LifeFor overall development of
workers, only good wages are not enough. They also need
to be provided with good physical conditions and
motivating work. If the work is monotonous or boring it
must be redesigned. Several Indian organizations are
taking initiative in improving quality of work life of their
employees. Bharat Heavy Electricals (BHEL) is one such
organization which took up job redesign as an O.D
intervention. In an HRD system there is always a focus on
employee welfare and quality of work life.
Participative devices-

These devices include bipartite

meetings between management and workers, information

sharing, joint surveys, task forces, Collaborative projects,
Quality circles, etc. These processes are undertaken to
arrive at settlements concerning workers wages and
service conditions, to review the working of settlements
and examine their impact on workplace discipline, work
ethics, customer service, etc., to share information about
the business profitability, performance of the company,
competition, marketing, etc. Management and unions
undertake joint surveys on the state of morale,
motivation, grievances of workers, etc. and to jointly plan
ways of dealing with these problems. Task forces are
undertaken to study the problems like Absenteeism,
Indiscipline, etc. and suggest ways to solve the problem.
Quality circles involve workers at the grass root level for
periodically discussing work-related problems. These are
the small groups of employees which are formed
voluntarily. They work on the simple premise that the
people who do a job every day know more about it than
anyone else, particularly when quality is involved.
Communication- This process is fundamental to all
aspects of life and is vital to the function of integration.
Real communication takes place when the listener truly
hears and understands the position and intent of the
speaker. This requires a type of listening which is called
Projective. While hearing the remarks of the speaker the
listener must project himself into the mind of the speaker
in order to understand the speakers viewpoint.
Counseling- It is an important HRD mechanism to
provide timely guidance to workers on problems relating
to hand and heart. Many Indian companies employ trained
counselors for this purpose.
Grievance Redressal- A grievance redressal procedure
is vital to all organizations-big or small. The mere fact
that the employee has access to a judicial type of justice

is satisfying even though he never has the occasion to use

Data Storage and Research- This is also very important
HRD mechanism. It is very essential to preserve
systematic information about every individual employee
on various topics like the employees personal
characteristics, performance-potential, promotions, salary
etc. so that this may be used for counseling, career
planning, training, promotions, etc. Moreover, this
information also serves as a base for research on
employee problems. Sometimes fresh data may be
needed for identifying appropriate interventions for
improving the utilization of human resources.
Industrial Relations- Good industrial relations based on
mutual trust and goodwill make the execution of the
program easy. Poor relations based on mutual distrust and
fears make the execution difficult. Union in our country
has been playing the role of the bargainer and agitator.
The thrust of their activities has been towards the
economic well-being of the workers. In HRD unions are
encouraged to make a thrust towards the psychological
and social well-being of the workers. The important areas
in which they are asked to participate include
communication, counseling, education, training, welfare,
research, family and vocational guidance. For ensuring the
effectiveness of the techniques, they are properly
designed, systematically linked and periodically reviewed.
The commitment of top management is also ensured for
its effectiveness.

Every method or mechanism has two dimensions: substantive

and procedural. Substantive dimension is what is being done;

process is how it is accomplished, including how people are
relating to each other and what processes and dynamics are
occurring. In most of the organizations there is overemphasis
on the substantive aspect of method and the procedural aspect
is ignored. Whenever there is a problem in the organization its
solution is sought in the rules and structures of the
organization rather than in the underlying group dynamics and
human behavior. Thus, rules may be changed, structure may
be modified but group dynamics and human behavior remain
unfortunately untouched. It is thought that there is no need to
pay attention to them. This is wrong. In every organization
human process must receive as much importance as the
substantive ones. One can find 6 different processes in
operation in an organization at six different levels. These are:

Existential process- It is at the personal level. This

process tells how an individual perceives his
environment, how he interacts with others, how he
achieves his goals in life and so on. If this process is
neglected it may adversely affect the integration of
the individual with organization and his quality of
work. Career Planning, Performance Appraisal and
Review, Feedback, Counseling, Job-enrichment,
objective rewards, etc. improve this process.


Empathic process- It is at the interpersonal level.

This process tells us how much empathy one
individual has for the other person and how does he
reach out to the other person and establishes a
relationship with him. Communication, conflict, cooperation, competition are some important areas of
study in this process. If this process is neglected it
may adversely affect the interpersonal effectiveness
of individuals in an organization. Training, Rotation,
Communication, etc. improve this process.


Coping process- It is at the role level. Every

individual is required to cope with various pressures

and stresses in relation to his role in the
organization. However, if the individuals role is clear
and the individual is aware of the competencies
required for role performance he can cope with these
pressures effectively. Role analysis goes a long way
to improve this process.

Building process- it is at the group level. This

process tells how various groups form themselves as
distinct entities in an organization; how do they
become cohesive and strong and how can they
effectively contribute to the goals of the organization.
Several O.D and team building exercises improve this


Collaborative and the Competitive processes- It

is at the inter-group level. Both can be positive or
negative. Competition is positive if it poses a
challenge to a group in terms of standard of
performance and achievement. It is negative if it
prevents a group from attaining its goals. Similarly,
collaboration is positive if it aims at helping others in
achieving a common goal. It is negative if it aims at
escaping hard work. This process can be very much
improved by creating a climate of trust, authenticity,
openness etc. and by clarifying norms and standards.


Growth process- It is at the organizational level. It

involves issues relating to organizational climate.
Self-renewal and change.

HRD Outcomes
Following are the various outcomes which result from HRD
methods via improvement in the human processes:


People in the organization become more competent

because on the one hand they become better aware
of the skills required for job performance and on
the other hand there is greater clarity of norms and


People understand their roles better because

through increased communication they become
aware of the expectations which other members of
their role set have from them.


People become more committed to their jobs

because now there is greater objectivity in the
administration of rewards. They come forward with
better and more creative ideas.


People develop greater trust and respect for each

other. They become more open and authentic in
their behavior. Thus new values come to be


There is greater collaboration and teamwork which

produces synergy effect.


People find themselves better equipped with

problem-solving capabilities. They become more
prone to risk-taking and proactive in their
orientation. There is greater readiness on their part
to accept change.


Lot of useful and objective data on employees are

generated which facilitate better human resource


The top management becomes more sensitive to

employees' problems and human processes due to

increased openness in communication.

The net result of the above outcomes is that the
organization becomes more effective. It achieves new
diversification, profits and public image. However, one
should not expect these results in a short period. But if
these results do not appear even after a reasonably long
period one should question the qualitative and quantitative
adequacy of the HRD processes and the related
instruments which are being used in that organization. It
should also be remembered that excellent HRD outcomes
at any given point of time do not indicate continued
effectiveness of the organization for all times to come. HRD
results need to be continuously watched, strengthened and
renewed. Over the years, researchers have collected a fair
amount of empirical evidence that certain HRD practices
can directly affect an organizations performance.

Need for HRD

Achieving HRD excellence leads to organizational excellence.
Practicing HRD excellence involves human beings who are most
complex and unpredictable in nature. Human beings are guided
and controlled by themselves and their families, society,
culture and ethos. Human beings influence and are influenced
by success and failure and therefore excellence.
There are certain fundamentals of HR which will never change.
Only the methods of application have changed. The fundamentals
of HR are as follows:
Human Aspect- HRD deals with the people in the
organization. The people may show different attitudes or

behavior. A person may be an excellent person or an

average person or may be a below average person. He may
be good in his field of specialization, highly patient man,
sufficiently courageous, adequately soft and concerned
individual, capable of utilizing available potential effectively
Performance Characteristics- All human beings whether
excellent or average or below average persons are guided by
human characteristics like desire, capability, greed, fear,
happiness, etc. which affect their performance.

There are certain conditions and requirements for effective

human resource in an organization like:
Knowing the organization well-Top management and
HR professionals must know the capabilities, drawbacks,
and problems of employees at all levels. This can only be
achieved by being in touch with people at all levels, even
at the lower level. This helps in better utilization of
communication gaps and solving grievances.
importance of feedback, it is unfortunate that in many
organizations either get filtered feedback or disregard
feedback. Dissatisfaction of individuals, agitation of
employees, deterioration in quality of work and the like
signals of deterioration or collapsing HR structures. An
organization needs to communicate concern and care for
employees properly and continuously right from the
Benefits, Rewards and Punishment- A company must
share its progress with employees by providing liberal
benefits to the employees. Human beings want
recognition, and seek avenues to share their success with

the loved ones. Promotions, rewards, retirements, etc. are

to be given with some fanfare and certificates.
Building and maintaining trust and a conducive
environment- Where there is no concern for employees,
there is no trust building. Where there is no honesty,
there is no maintenance of trust.
Restraining management fads- There are no shortcuts or cheap routes to excellence, yet management
frequently fall victim to them. The feasibility and the
outcomes of any idea must be critically examined. Identify
and involve personnel having foresight to visualize.
Decentralizing and Downsizing- This is helpful to
maintain work enjoyment and to practice the buddy
development, expansion, diversification control and some
specialized services may be centralized.
Problems, Time and Relaxation Management- Break
the problem into major and minor ones. Break the time
available into years, months, half months, week and 48
hours. This will help in managing time and problems.

Values in HRD professional

Values play a very important role in building a strong HR culture.
Values ensure quality products and efficient service to customers
and prevent customer exploitation. Through values, ethical
management principals get reinforced, organizational health excels
and people build a clean and good society. The absence of a strong
commitment to values may get low priority in most cases and is
responsible for their decline.
Looking into the prevailing societal and organizational issues, it
would benefit society and organizations if HR professionals build on

the following values to enhance their own effectiveness and the

effectiveness of their HR function:
Deep concern for people: there is great need today to
show, develop and practice a deep concern for people- be they
employees or customers and for their problems as well as
their goals.
Commitment: Serious commitment to understand HR
principles and philosophy, to practice and implement HR plans
and to ensure that they succeed appears to be the prime need
today. Seriousness, persistency and deep faith are essential
requirements for implementing HR plans.
Constant improvement through innovation: The very
survival of HR appears to be its ability to go on changing
according to business and social needs. HR professionals need
to internalize success for constant improvement and they
must focus on continuous innovation.
Introspection and Self Development: HR professionals
should periodically introspect to ensure that negative or
unwanted inputs are removed from their system. They should
take deep interest in self-improvement and development.
They could be role models for others in this area.
Achievement Spirit: HR professionals should never be
dissatisfied with what they do. There is much scope to do
many new things. They should always be enthusiastic and
energetic to take on newer assignments and complete them
with a sense of fulfillment.
Strong faith in values and ethics: HR professionals must
possess strong faith in ethics and values and it must not be
allowed to get diffused under organizational pressure. Values
and ethics are something which are not only to be talked
about but which are to be practiced.

Practicing Values: The success of these values depends on

whether they are visible in practice. HR professionals need to
show the way to other managers in the organization by
practicing seriously the values they believe, respect and speak
The value of these values will be very high when people see that
these values become part of everyones worklife in the organization.
Values are roots, culture would be the stems and the leaves and
happiness of the people and their innovative contribution and their
eagerness to adopt and practice anything new would be the fruits
that organization would derive in the long run.


Meaning: Research means a search for knowledge. Research
is an art of scientific investigation. It is a careful investigation
or inquiry especially through search for new facts in any branch
of knowledge.
Some people consider research as a movement, a movement
from the known to unknown. It is actually a voyage of
Research is an academic activity and as such the term should
be used in a technical sense. Research comprises defining and
redefining problem, formulating hypothesis or suggested
solutions, collecting, organizing and evaluating data, making
deductions and reaching conclusions and at last carefully
testing the conclusions to determine whether they fit the
formulated hypothesis.
Research Methodology is a way to systematically solve the
research problem. It is a science of studying how research is
done scientifically.
For Example, an architect, who designs a building, has to
consciously evaluate the basis of his decisions i.e; he has to
evaluate why and what basis he selects particular size, number
and location of doors, windows and ventilators, uses particular
material and not others and the like.
Similarly, in research the scientist has to expose the research
decisions to evaluations before they are implemented. He has
to specify very clearly and precisely what decisions he selects
and why he selects them so that they can be evaluated by
others also.

Type of Research: the research which I took is analytical

In this research, I used the facts and figures of the hospitals as
well as of the Pharmaceutical companies. I surveyed a few
hospitals and make them fill those Questionnaires. I studied
the HRD activities being undertaken there. Is there any
separate Department for the purpose or not? I also surveyed a
few pharmaceutical companies in Delhi to know how the HRD
activities are undertaken in those units. Then I analyzed this
data to make a critical evaluation of the material.
Approach: My approach to research was Qualitative. It was
more concerned with subjective assessment of attitudes,
opinions and behavior. I basically concentrated on the type of
HR work being undertaken by the staff of Personnel
Department in Hospitals and companies rather than the
number of people in that department. The Quality of work and
welfare facilities matter rather than the number of projects.
Sample: The sample for this research was a few hospitals and
pharmaceutical companies in Delhi. To name a few, Kolmet
hospital, Jeewan Hospital, Arjun Hospital, Amit Nursing Home,
All India Institute of Medical Sciences, Safdarjung, Ram
Manohar Lohia Hospital etc. and pharma companies like Cipla,
Dr. Reddys Lab., and Ranbaxy etc. I personally went there to
collect the information from these hospitals. The research
revolves around the HR staff and the projects undertaken by
them for the welfare of the employees in these hospitals.
Methods of data collection: The data for this research has
been collected both from primary as well as secondary
The primary sources were:

Direct Observation: I collected the data for this research

through direct observation method. I made frequent visits
to these hospitals to observe the employees as well as the
HR Department and its working. It gave me the clear
understanding of the attitude and behavior of the
employees at the hospitals.
Personal Interview: I also collected data through the
personal interview method. The interview was quite
unstructured but focused one. It was to know about the
need and suitability of HR Department in the hospitals. It
was to elicit unconscious as also other types of material
Questionnaire method: I took along with me a
questionnaire to be filled up by the head of the HR
department in the hospitals where the said department is
present. There was a systematic and particular question
sequence. The data I got from these questionnaires
proved to be very valuable for me in this research. The
aforesaid questionnaire is attached in the annexure.

The Secondary sources were:

Annual reports and other publications of the hospitals
Magazines and Journals
Reference Books

There are so many hospitals in Delhi-private as well as public. I
selected a few of the private hospitals and one or two public. I
talked to the HR manager there and studied the entire working
and the tasks of the staff of this department.
I studied the work carried on in these hospitals. What is the need
of HR in hospitals? How the work is being carried on? What are
the efforts made by the HR department in providing the
satisfaction to the other staff of the hospitals?
Then for the purpose of making the comparison I visited a few of
the pharma companies. I collected the same information from
there like what is the need of HR? What are the efforts being
undertaken by the HR head to introduce HRD activities in the
organization? How far it has been successful? And various other
similar questions.
I also made a questionnaire to be filled by the concerned
authorities of the hospitals.
On the basis of all the data collected, I completed my research by
arriving at certain conclusions and giving a few recommendations
to improve the effectiveness of the HR departments in these
I searched various other magazines and Journals of these
organizations to substantiate the primary data I have collected.

HRD is the emerging thing of today. Every organization whether
large or small can not be left untouched by the HRD. HRD has
become a movement in country. Ten years ago hardly any
organization had HRD departments or talked about it. Today it is
difficult to find organizations that employ large number of people
that do not talk about HRD. Several of them even have HRD

departments or HRD managers. A few years ago HRD meant a

name for training. Today most organizations talk in terms of HRD
Performance Counseling, Career Development, Organization
Development and the like.
Thus HRD has come to stay and has become an important
dimension of modern management language as well as
technology. In spite of this popularization of HRD in the last few
years, success experience of HRD is limited to a few organizations
and many others are yet to translate their goodwill into action.
But even today, Organizations in the service sector continue to
neglect it.
HRD is most needed in service sectors. Service organizations have
little to sell but their good services; that make them uniquely
dependent on their employees attitudes and motivation- and on HR.
It is also most neglected in these sectors. In these sectors the HRD
activity is limited to training. Even the training is not done enough
both qualitatively and quantitatively. The recent efforts by the
central government to train bureaucrats and politicians are a
welcome step in HRD.
HR plays a crucial role in service firms. The researchers found that
progressive HR practices such as facilitating employees career
progress, developing orientation/ training/ socialization programmes
for new employees, and eliminating conditions on the job that
inhibit task performance can improve their effectiveness on the job.
But HR is much more progressing in the manufacturing sector.
There are a lot many new concepts which are emerging in this
field like Stress management, Self Development, Achievement
Motivation, Emotional Competence, Organizational Intelligence
etc. Concern for developing employees and their competencies
existed in several Pharma companies and their top management
much before the HRD departments got started and the term HRD
got popularized. If these companies would not invest in the
people they would not have grown and expanded.
However top management of each company found their own ways
of developing employee competencies. Most organizations in the
past focused on developing and maintaining the motivation of

employee through welfare schemes, salary and perks, promotions

and punishments. In the feudal atmosphere, a few of the
employees always had the opportunity to be spotted and
developed faster than the rest.
Now-a-days organizations and their top management have
recognized that HRD cannot be limited to a few employees in
coverage. It is also recognized that HRD is too important to be
left informal processes to take care of and that it should be a well
planned activity.
In nutshell, we can say that the service sector has a lot to learn
from industry.



Indian Industry has come of age and is now ready to compete
with foreign industry and cooperate with it. Thus spoke the then
Finance minister Dr. Manmohan Singh while launching
liberalization initiatives. These decontrol measures and global
economic environment can only be faced by gaining competitive
advantage. Competitive advantage means providing unique
features in product or service, offering the customer some
HRD has become a movement in country. Ten years ago hardly
any organization had HRD departments or talked about it. Today
it is difficult to find organizations that employ large number of
people that do not talk about HRD. Several of them even have
HRD departments or HRD managers. A few years ago HRD meant
a name for training. Today most organizations talk in terms of
HRD Climate, Performance Appraisals, Potential Development,
Performance Counseling, Career Development, Organization
Development and the like.
Thus HRD has come to stay and has become an important
dimension of modern management language as well as
technology. In spite of this popularization of HRD in the last few
years, success experience of HRD is limited to a few organizations
and many others are yet to translate their goodwill into action.
But even today, Organizations in the service sector continue to
neglect it.

Scenario in Pharmaceutical Sector

Concern for developing employees and their competencies existed
in several Pharma companies and their top management much
before the HRD departments got started and the term HRD got
popularized. If these companies would not invest in the people
they would not have grown and expanded.

However top management of each company found their own ways

of developing employee competencies. Most organizations in the
past focused on developing and maintaining the motivation of
employee through welfare schemes, salary and perks, promotions
and punishments. In the feudal atmosphere, a few of the
employees always had the opportunity to be spotted and
developed faster than the rest.
Now-a-days organizations and their top management have
recognized that HRD cannot be limited to a few employees in
coverage. It is also recognized that HRD is too important to be
left informal processes to take care of and that it should be a well
planned activity.
The following trends seem to emerge from a survey of HRD
1) Many organizations recognize today that training is only
instrument that initiates development and the real
development in terms of acquiring new managerial and
human competencies takes place on the job.
2) Mechanisms like performance appraisals, interpersonal
feedback, potential development, job-rotation, OD exercises
facilitate development and their utility is being recognized.
3) Creating a HRD culture in which employees feel free to
express their views and opinions to their seniors, where
employees mean what they say and are trusted, where
employees are helpful to each other, where employees take
initiative and mistakes are used as learning opportunities,
and where problems are faced without fear and jointly is
being considered more important than mechanical use of
HRD instruments or systems.
4) In these companies employing thousands of staff developing
a HRD culture is being experienced as a difficult and
challenging task. There are more failure than success
because attitude change, value development and cultural

change cannot be brought about in short periods of time.

However, organizations are relentlessly pursuing.
5) A few of the pharma companies like Ranbaxy have given a
remarkable lead in introducing HRD systems but they have
difficulties due to changes of leadership, large size and social
6) Chief Executives, Top Management and the Line Managers
are becoming more aware of their role in HRD and are
increasingly playing facilitating role.
7) New mechanisms and processes of HRD are being explored
for workers in these companies as their HRD needs are
different than these of the executives.
8) Sharing of experiences is being valued increasingly as
indicated by the fact that most of these pharma companies
are very willingly sharing their HRD experiences with others.
But, certain negative trends are also being observed in these
1) Some executives/ unions/ office bearers look at
anything that is initiated by the top management with
2) There is already enough cynicism in some organization
that all changes met with failures.
3) There is lack of competent and well trained staff in few
of the pharma companies which pose a hindrance to
the effective implementation of the HRD policies.
4) It was also observed that in some of the organizations
HRD is implemented merely to initiate others than with
a genuine concern to develop others.

5) In few of the companies, top managers pay only lip

sympathy to HRD. The support of top management is
highly needed for the implementation of HRD activities.
6) In some organizations top management is unwilling to
allocate separate budget allocations for HRD activities
and blame HRD for every failure that takes pave in the
A current scenario of one of the pharmaceutical companies like
Dr. Reddys Lab. is given below which I surveyed and collected
the data with the help of the Questionnaire which is attached with
this project.
Human resource needs
We recruit professionals with strong skills and experience. They
should be from strong medical background. They use internal
references as their first option, and in case that does not work,
they may headhunt specifically for certain people whose names
are known well in the market.

Recruitment process
Unlike many other companies, we always conduct the HR
screening first, and only those candidates found suitable go
through interview. A written test is usually part of the screening,
so that the candidate's communication skills, depth of knowledge,
expression, analytical skills, trouble shooting abilities, etc are
judged. For programmers, an online coding test in their field of
competence is compulsory.
For levels such as project leaders, and managers, we always
conduct one round of interview with the Head - HR, followed by a

written test, and then a telephonic interview with the Technical

Head at our Headquarters, and then a final interview with the
General Manager (ODC).
They take fresh MBA's and MBA final year students as project
trainees. They are selected after a coding test followed by a HR
round of interview. When they recruit they attach little
importance to the background of the candidates either in terms of
their educational institutions or of their previous employers.
Primarily they must satisfy the requirements as laid down by their
for a specific job.

Monetary package
Their salary packages are on par with market norms and industry
practices. Fifty percent of the salary is given as the basic and the
balance as HRA and conveyance. In addition to this there are
medical allowances, project bonuses and referral bonuses.
One of the welfare schemes they provide their employees and
their families is a free group insurance cover through Apollo
Hospitals and a majority of the employees are covered by a free
insurance of Rs. 1 lakh.

Incentive policies
They have a quarterly award called the "Star of the Quarter",
which is selected through voting by all employees and the
winning `star' is given a memento along with a gift.
They have a professional development policy whereby employees
may join professional courses or take examinations certified by
organizations and the company bears 50% of the cost of the
course, subject to a certain upper limit. All employees may take
one such course within a block of six months.

As a matter of policy, they do believe in giving cash rewards.

Exceptional performances are kept track of by a simple and
objective appraisal system and deserving employees are
rewarded suitably by increments and promotions. On a periodic
basis, project bonuses are announced by our headquarters, which
are shared between the team members.

Internal communication techniques

The company hierarchy structure is extremely flat. They strongly
believe that hierarchies bring obstacles in communication, and act
as barriers to quick and effective decision making.
They have a monthly meeting of all employees, where the status
of various ongoing projects is discussed, good performances are
highlighted and any problems relating to HR, Finance, System
Administration etc are discussed and sorted out.

Career development
Exposure to a multinational work culture, working on the latest
technologies, opportunities to travel abroad, working for the top
Fortune-500 clients and learn from their best practices. Also,
employees get to interact with their colleagues in other countries
on a day-to-day basis, that gives them global exposure both in
terms of technology as well as working cultures.

Performance Appraisal system

A six-monthly appraisal cycle is followed which is quite similar to
a 360-degree appraisal system.
The entire system was designed with the following features:-

The appraisal forms were customized for different functions

and roles because the assessment parameters for each
function and level is different and having a common
appraisal form for all was not felt to be adequate.
Weightage is given to each assessment parameter to make it
Increments / rewards are linked not only to performance but
attention is paid to each employee's market value, his ability
to take up higher roles, his leadership potential,
qualifications etc.
Having performance inputs coming in from several sources
makes the whole process more objective.

Scenario in Hospitals
HRD is most needed in service sectors especially the hospitals.
Hospitals have little to sell but their good services; that make them
uniquely dependent on their employees attitudes and motivationand on HR. It is also most neglected in these sectors. In these
sectors the HRD activity is limited to training. Even the training is
not done enough both qualitatively and quantitatively.
HR plays a crucial role in hospitals. The researchers found that
progressive HR practices such as facilitating employees career
progress, developing orientation/ training/ socialization programmes
for new employees, and eliminating conditions on the job that
inhibit task performance can improve their effectiveness on the job.
In nutshell we can say that the service sector has a lot to learn from
But there are a number of hospitals where HRD has made its mark.
One such example is of the Apollo Hospital. I surveyed the
hospital and collected valuable information about the HRD activities
undertaken in the hospital.

Set up of the workforce in a hospital

In a hospital, on the one hand, there are the highly qualified
doctors and specialists who are helped by support groups like the
paramedical, administration and housekeeping workforce to
effectively serve the patient. This combination of doctors,
paramedics and other workers make the hospital a complex and
composite unit. Unlike a manufacturing industry, all the
employees work towards producing a quality product, but the
hospital is involved in treating human beings, so it requires
different management and handling techniques. All the
employees in a hospital ultimately work in one direction that is to
give the patient the best care and treatment available. Apollo
Hospitals is one such organization which has fervently tried to
bring world-class patient care at the most reasonable price, and
extend it to every patient who comes in to Apollo.

Valuation of the employees in Apollo

Each and every employee is extremely valuable. The stress is laid
on professionalism and a strong sense of values. Not everybody
can work in a hospital; the staff has to be very competent and
cheerful to serve the patient at all costs. They try to imbibe a
sense of passion in all the employees to treat the patients. At
times, they do slip into depression and have to be snapped out of

Formulation of HR programmes
All HR programmes are geared toward achieving their motto
which is Excellence in Patient Care, and their mission is to bring
health care of international standards within the reach of every
individual. They are committed to the achievement and
maintenance of excellence and work towards the betterment of
humanity. They strive to inculcate these aims in each and every

employee of Apollo and convert them to reality. They have tried

to bring in an amalgamation of the medical and the management
professionals. This is very unique in the hospital industry. The
final output is professional treatment and services which equal
international standards. Along with the medicines, technology,
they adopt the concept of Tender Loving Care which forms a very
good combination of treatment.
With nearly 3,000 employees working in various outlets of Apollo,
they are very clear as to what kind of people they want to
employ. As a dynamic and growth-oriented organization, they
believe in doing something new every year to people.
They have 150 clearly defined job titles, and each has a definite
requirement. Apart from these, they also have a well charted Job
Evaluation Programme which is conducted by departmental
heads. People who actually involved in the working of the hospital
conduct the job evaluation while the back office staff provides
only the needed support. Therefore, the direct patient handlers
are in the forefront leading the whole unit and heading the
hierarchy and the administration only offering relevant help.
Various training programmes are offered to the employees who
are divided into groups. These groups of people in turn spread
the message to others who come under their wing. After a
training programme is conducted, detailed evaluation procedures
are undertaken to measure the penetration level of the message.
The employees not only learn, but are also actively involved in
spreading the message to others in the organization.
Apollo celebrates Department Days, which are organized by the
respective department heads. Each department organizes
activities for a day during which their functions and
responsibilities are highlighted. In this kind of function, each
department head or a line manager acts as team leaders working
with their team to put on the show. Through these programmes,
the other departments get to know more about the functioning
and the innovative technology each department uses. This

exercise brings about unity within a department and everyone

learns to work as one composite unit.

Interaction of management and the higher-ups with the

One of the main reasons for the success for Apollo is that it
operates on an open system. That is, any employee can walk into
even the MD's office at any time of the day and voice their
opinions. We believe that by opening the channels of
communication, the employees can meet and interact freely with
the administration and this will lead to cooperation, and finally
help us to excel in the field. Another very innovative programme
which is currently being conducted is the MD's address to the
MD addresses groups of employees on concept of TLC, which also
includes, team work, leadership, and compassion. This is a very
enterprising project where the MD gets to personally meet each
and every employee and interact with them. At the end of each
session, MD also signs a value document to every employee
which includes the Ten Commandments of Apollo which they have
to imbibe in them.







They have now begun to include the employee's family also in

various community programmes. One such programme is for
couples where they are advised on matters of savings, social
issues, investments and family budgeting. After the session, they
are taken round the hospital and get to know about the overall
operations. One major advantage of this programme is that the
wife gets to know about her husband's job responsibility and
workplace. The organization too gets to know more about the

employee and his family background which leads to improved

working relationships.
Apart from all these, Apollo celebrates their Founder's Day
(February 5), Anniversary Day (September 18) and Sports Day
on a large scale. Plans are being made to conduct computer
awareness program, English language courses for employees,
sewing classes, and workshops for the employee's children and
also include career counseling classes at a later date to help
choose a suitable line of work.
In conclusion, I would like to say that Apollo aims to inculcate in
its employees a firm moral system which makes them into not
only excellent workers, but also role models in society.

The budget allocation for Safdarjung Hospital for the year
2002-2003 was more than Rs. 86.80 crores. Despite this
enormous allocation, expenditure reported up to 10.3.2000 is
only Rs. 19.27 crores. What is more disturbing is that against a
provision of Rs. 8 crores for Machinery and equipment, there has
been expenditure of only Rs. 1.13 crores up to 10.3.2000.
The hospital Committee has been pursuing the progress made in
the purchase of equipments required for up gradation of the
Burns and Plastic Surgery Department of the Hospital.
Equipments worth Rs. 90.30 lakhs against a sanction for
procurement of equipment worth Rs. 115.86 lakhs have been
purchased up to 1999-2000. The Committee hopes that the
process of procurement of the remaining equipments would be
completed during 2000-2001.
Safdarjung Hospital, the largest hospital under the Ministry of
Health and Family Welfare, provides medical services in all basic
specialties including super specialties and also provides round the

clock casualty and emergency services. The number of indoor

patients is more than the capacity of the hospital, almost at any
point of time. Furthermore, the Hospital is run with the policy of
not denying admission to any one who comes to it for treatment.
In spite of all this, most of the services provided by the Hospital
are unsatisfactory, there is total lack of cleanliness and behavior
of the staff is wanting. This is true about other Government
Hospitals too. Some drastic measures need to be taken at the
earliest. The Committee understands that at one stage, the
Department had decided to entrust the work of maintaining
cleanliness at least in the emergency wards to private agencies.
The Committee fails to understand the reasons for nonimplementation of this decision. The Committee is of the view
that the Department should find out ways and means of
maintaining cleanliness in all Government Hospitals.


Plan allocation for the Dr. RML hospital, New Delhi has been Rs.
24.50 crores in 2002-2003. To a question as to in what manner
this allocation of additional funds is proposed to be utilized, the
Department submitted that the enhanced allocation is meant for
payment of salary for newly created posts in various
Departments, purchase of equipments and new schemes like
Nephrology, Hematology and Pediatric Surgery.
To a query as to by when the task of building of a Trauma
Centre is likely to be completed, the Department replied that the
work of building a Trauma Centre has been entrusted to the
Hospital Services Consultancy Corporation. A draft E.F.C.
proposal is likely to be submitted shortly. After the E.F.C. proposal
objection/approvals are received from the various authorities, the
construction work will start. The project is likely to take five
years to complete. But the considerable time has already been
taken at the proposal stage. Therefore, the decision was that the

Department should expedite the completion of all procedural

formalities so that the construction work can start at the
It is felt that all preliminary exercise should be
completed before provision for any scheme is made.
The Committee understands that Nursing Home facilities are
available only in Dr. Ram Manohar Lohia Hospital at Delhi which is
meant for Central Govt. employees drawing certain level of salary
and other VIPs. However, certain constraints are being faced in
availing of this facility. It has been reported that upkeep of the
rooms is also generally lacking. At present, rooms in the Nursing
Home are being allotted only during specific time on
recommendation of the doctors authorized to do so. The
Committee fails to understand the rationale behind this procedure
as the illness does not come with an advance notice. The
Committee would like to be apprised about the rules/guidelines
governing the allotment of rooms. The Committee is of the view
that a proper chart displaying the availability of rooms should be
displayed at the Nursing Home.
The Committee also
recommends that in the event of a room not being available, on
the basis of recommendation of the doctor on duty, the patient
should be free to go to one of the CGHS recognized private


The All India Institute of Medical Sciences, New Delhi is a premier
medical institution of the country. The plan allocation for 20022003 was Rs. 91.30 crores which was much less than the
previous years. Asked about the reasons for reduction in RE, the
Department stated that the EFC memo relating to the setting up
of an Organ Bank, procurement of PET Scan, and setting up of
Trauma Centre at AIIMS could not be cleared during 1999-2000
and hence the reduction in RE.

Despite the earlier recommendation, no progress seems to have

been made in respect of setting up a Trauma Centre. The
workshop on Trauma Centre was held in the Institute on 9-10
recommendations made at the workshop are still in the process of
examination. The Committee recommends that the Department
should make concerted efforts for completion of all the procedural
formalities prior to setting up the Trauma Centre. It should be
ensured that allocation made for this purpose should not be left
under utilized in 2000-2001 like the previous year.
It came to the notice of the Committee that Dr. R.C. Anand,
Medical Superintendent of the Institute who had earlier been
suspended on corruption charges was reinstated pending inquiry.
The Committee has come to know that the reinstatement of Dr.
Anand has not been approved by the Governing Body of the
Institute. The Committee fails to understand as to why Dr. Anand
was reinstated before the outcome of the inquiry instituted
against him. The Committee feels that an institute of repute like
AIIMS should avoid such controversy.


HRD has the following 8 components and the analysis of the
two sectors has been done on the basis of these instruments of
HRD. The following are the components of HRD and a
comparison is made on the basis of the extent of the
implementation of these components in the organizations. A
comparison between the two is also done to have a better view
of what is being done in manufacturing units in the field of HRD
and what progress it is making in the service sectors.
Performance Appraisal- Performance appraisal includes
identification of key performance areas, target setting,
of behavioral dimensions, and selfassessment. In an open appraisal system, all information
is available to the appraisee.
It is quite a simple task in pharma sector as compared to
the hospitals. The performance of the employee can easily
be judged on the basis of sales target he has achieved.
Even the incentives can be determined easily on the basis
of this. It is basically a Quantitative analysis. But in
hospitals, this is a highly difficult task to be performed.
Performance Appraisal of the people associated with
hospitals especially Doctors is a very complex procedure.
How can u judge the performance of a doctor? Is it on the
basis of number of patients he has cured? Or on the basis
of success of the operations which he has performed? An
escort corporate is undertaking a survey to evolve the
exact and proper method of evaluation of the
performance of the doctors in hospitals.
Potential Appraisal Potential Appraisal involves
identification of critical functions and qualities required to
perform these functions for each role in the organization,
measurement of these critical attributes, periodic

assessment of employees for potential to perform higherlevel roles and promotion policies.
It is highly vital task in pharma companies. The
employees in the pharma companies are constantly
appraised for their promotions. The rank and profile of a
person increases on the basis of his/her performance. The
assistant manager is constantly trained and appraised to
take the job of a manager and so on. This helps in
increasing their morale and in turn future performance.
But, in hospitals potential appraisal is a difficult task and
also is seldom done. A ward boy remains a ward boy, u
cannot make him a doctor. Moreover, Doctors are experts
in their own fields; they cannot be shifted to another
specialty. For example, a heart surgeon cannot become a
neurologist even after 10 years of practice in his field.
This is because they are experts in their own fields.
Career Planning and Development System it usually
includes identification of career opportunities within the
organization, plans for organizational growth, promotion
identification of career paths, and managing of problem
In pharma companies, career planning of an individual is
highly considered. A person is provided with the various
opportunities and a number of promotion policies are
there. A person can become a regional manager from a
medical representative in the span of just 3 years.
Pharma companies provide ample opportunities for the
promotion as well as development of employees. There is
also a system of job-rotation or area rotation. A person
who is working in South Delhi may be shifted to West
Delhi to make his task more challenging. The profile of
the worker may also be changed.
In hospitals, career planning is basically done by
migrating the doctors to perform certain operations in
other hospitals or in other countries. Many doctors went

to US to perform operations and are getting huge amount

of money as well as recognition. For example, AIIMS has
a special head to view the career planning and
development of all the employees including Doctors.
Feedback and counseling subsystems- are sequels to
performance appraisal, potential appraisal and career
This is a nomenclature in most of the pharma companies.
In DRL the system of feedback and counseling is a
common scenario. The employees are constantly
counseled and feedback is taken from them to know their
grievances and problems.
In hospitals too it is a common phenomenon. Hospitals
like, Apollo follow a open system where employees are
given feedback and are involved in the matters of their
Training- is usually concerned with assessment of
training needs and policies, dissemination of information
about training opportunities, organization of internal
training programmes, and evaluation and follow up.
In pharmaceutical companies, training is basically
concerned with giving training to employees so that they
can work effectively and efficiently at the work place. It is
basically imparted to increase their job knowledge as well
as their performance. They are trained in the various
aspects of the job. Like in Cipla, a number of internal
training programmes are conducted at their head office in
Bombay as well as in other offices like Bangalore to
impart training to the employees.
In Hospitals, training is basically in the form of
apprenticeship. A new doctor, having a degree has to
work under the practicing Doctor as an apprentice. The
trainer Doctor must have a practice of at least 5 years to

entertain the apprentice. There are also a number of

training programmes undertaken by different hospitals.
For example, Sir Ganga Ram Hospital takes a number of
apprentices every year, after the fresh Doctors grab their
degrees from the medical institutes. Same is the case
with the Apollo hospital and Batra hospital in Delhi.
Reinforcement- it is usually called reward system. It
helps in reinforcing desirable values, attitudes, behaviors,
and collaboration in an organization.
In Pharma companies, there is basically a financial reward
system. The employees are given cash rewards if they
achieve the sales target. There are a number of methods
being followed in these companies to assess or measure
the performance and give the rewards. These rewards act
as motivators. It can be an intrinsic or extrinsic reward.
They can be in the form of bonus, cash incentive, salary
raise, promotions, transfers etc. Certain non-financial
rewards like job-rotation, advancement, recognition are
also given to motivate the employees and improve their
work performance. In Ranbaxy, performance of the
employees increased by 30% due to the adequate system
of rewards.
In hospitals, reinforcers are not cash based. They are in
the form of recognition, appreciation, praise and love and
affection of patients. All these things motivate a doctor to
perform an operation successfully. They are a kind of
internal motivators. It is a feeling to save a precious life
which helps a doctor to perform better. Says Dr. Zafar of
Arjun Hospital.
For example, in Escorts a number of heart patients are
treated. With every successful treatment the morale of
the doctor boosts up and they perform every another
operation with more confidence, enthusiasm and an
increased rate of success.

Organization Development and research- This

subsystem aims at maintaining and monitoring
organizational health; assisting problem departments;
helping interested units and departments in selfrenewal, conflict management, and creation of strong
teams; and establishing processes that promote
enabling capabilities in the organization. Research also
helps in analyzing information generated by the HRD
Great emphasis is laid on the development of the
employees, executives and management. Executive
development is the recent trend in the pharma
companies. There are a number of methods used for
the development of executives to increase the
organizational effectiveness. There are a number of OD
interventions being introduced which help in the
enhancement of the organizational effectiveness.
development, mentoring etc. are used to build the
effectiveness of the organization.
In Ranbaxy, team building interventions are undertaken
to strengthen the teams so that they can perform
better and achieve sales target. It has greatly helped in
the formation of the strong and effective teams and
increased the co-ordination in those teams.
Research is also undertaken in the pharma companies.
It is quite a continuous process in these firms.
In hospitals too, research is a common phenomenon. In
AIIMS, research is the continuous process. It is being
undertaken to evolve new medicines and methods for
curing patients. The research is made in a very
systematized and highly sophisticated manner. New
equipments are evolved for research. But there are
hardly any signs of OD interventions in the hospitals.
The doctors though work in teams but there are no
interventions being introduced to strengthen their

teams. They are the teams of experts from different

fields which are called upon to operate a particular
patient. Different teams are made according to the
requirements of the patient.
Management Information systems- maintain and
update information about skills, capabilities, biographical
data, performance appraisals, potential appraisals, and
training. They are an emerging phenomenon of today.
Hospitals as well as the pharma companies are
maintaining the MIS to keep records of their employees,
skills, performance appraisals etc.
In hospitals, record of doctors, their practicing fields,
number of patients treated, success rate, their appraisal
etc. are kept in MIS. In pharma companies, training
records, compensation, rewards etc. are also kept through


There are some of the emerging trends in the field of HRD
which, if implemented in the organizations can prove to be
very fruitful for them. These basically aim at the selfdevelopment of the employees so that they can perform
better and improve their work performance as well as their
effectiveness at the work-place. This will in turn lead to the
organizational effectiveness. The trends can be listed as
Stress management
One of the implicit functions of HR is the responsibility of
overall organizational health. It is a very important scenario
now-a-days. HR people need to step up to the plate,
recognize signs and proactively introduce preventive stress
management to reduce or mitigate potential stressors and
resultant strains.
While the benefits of working at a job-place are many but
are often incurred at a cost- Job Stress, and the nature of
our 24-hour economies and porous boundaries between time
zones across the globe, only exacerbate the cause for more
stress. Job related stress has been referred to as twentieth
century disease that has permeated mostly all occupations
There are several ways an organization can diagnose the
presence of stress in the organization.
1. Surveying employees either using a questionnaire or in
person about their experiences in the workplace can be
2. Conducting focus groups can be effective not only in
diagnosing issues but to mitigate the impact of
3. Consultants or stress management experts can be
called to observe the working style of employee at the
work place.

4. Several stress management scales can also be used to

measure employee stress.
5. Employees can be given social support in the form of
emotional support among colleagues, through the
exchange of knowledge or information, or in the form
of actual help on the job.
6. Participative Management allows individuals to take
part in decision-making so that there is a greater sense
of control over their jobs.

Flexible work Options

You have heard people say Thank God, its Friday. What
would you say if you hear Thank God, its Thursday?
Flexible work option is really a great and emerging trend in
most of the companies in the manufacturing sector. It has
greatly saved the employees to devote their full time at the
work place. They just have to devote a fixed number of
working hours. It has also helped the young graduates to
grab these jobs side by side of their courses.
With the increasing advent of women in the work place,
there has been an increase in the proportion of dual earning
couples in the workforce, where both partners aspire
towards long term goals.
Flexi time takes the shape for some in the form of a reduced
work week, contract positions, early hours, part time work
or job sharing. It provides both organizations and individuals
the opportunity to engage in a win-win situation because the
organizational exchange between the two remains healthy
and ultimately leads to improved performance, reduced
turnover, higher employee satisfaction and greater employee
Furthermore, organizations can benefit monetarily from
hiring contract employees, as they are not required to pay

them benefits. Also, the cost incurred by the organization to

train a brand new employee is significantly more than
retaining an in-house employee, even if part-time. In other
words, flexi time provides the benefits of a relationship
without the cost of the high maintenance.
It is important to learn the secret of cultivating a healthy
self-concept leading to a positive self-esteem and a
wholesome life. In other words, complete personal and
professional fulfillment. The glory of being human is that we
are capable of diagnosing most of our problems and solving
them as well. However, quite a few of our problems are
psychological in nature, like anxiety, depression, anger, fear
of success, strained personal relationships etc. These are the
problems that we have greatest difficulty dealing with.
A healthy self-concept is the source of a healthy self-esteem,
which in turn is a key to the personal and professional
fulfillment. An individual tends to interpret and react to his
life experiences based on his notion of what he is capable of.
He also tends to operate from the labels (efficient, clumsy,
unreliable, competent, likeable etc.) that he has adopted
over a period of time.
Self-concept is like an opinion of a person about himself. If
this opinion is congruent with what he desires to be like, he
feels comfortable and self-assured. But if such an opinion
tells him that he is below his self esteem, he may start
disliking his real self. A person, who thinks of himself as
healthy and confident, is able to accept his weaknesses as
his own. He actually thinks about the ways to overcome
them or at least minimize their ill-effects. This is the
responsibility of the HR manager to inculcate the feeling of
self-esteem in employees so that they can give their best to
the organization.

Achievement Motivation
Achievement motivation is the key to personal and
organizational success. Fortunately, it is a learnable behavior
and organizations would benefit tremendously from training
their people to become more achievement motivated, so
that they make a paradigm shift from why to why not.
Achievement motive or the ability to stretch beyond the
known horizons is the foundation stone for productivity and
performance-oriented work behavior. A person high on this
motive is likely to derive satisfaction from doing work that
challenges his capabilities, even if he has to take risk, learn
new competencies and manage many constraints for that.
achievement-oriented work climate can be easily expected
to reach the pinnacle of success and prosperity.
Achievement Motive can be understood as a desire in an
individual to excel with regard to some chosen standards of
performance and to achieve something unique. This desire is
supported by an ability to take necessary risks to achieve
what he has set out for, a commitment to make requisite
efforts, learn new skills, and willingness to take personal
responsibility for creating an environment around himself
that is conducive for his goal realization.
It is sometimes suspected that a person with a highly
developed need for achievement may not prove to be an
effective team player. It is seen that people with
predominant need for achievement may tend to be overly
engrossed in their work and lack sensitivity and
perceptiveness towards problems of people they work with.
To counter these fears it is advocated that such an individual
should try to inculcate in his disposition affiliation and
extension motives.
An individual will deliver quality performance only when he is
committed to the cause of the organization. This
commitment comes from the sense of belongingness
towards the organization. If an individual feels important in
an organizational set up, he likes to invest his best for the

realization of the organizational goal. Therefore an

organization should nurture its people and make them feel
important in whatever role they hold so as to obtain their
best performance.
Emotional Intelligence
Emotional Intelligence refers to the capability for recognizing
our own feelings and the feelings of the others. It describes
abilities dissimilar from the purely cognitive capacities
measured by intelligent quotient or IQ. A high IQ will get a
person the job, but it is high EI which determines whether
he/she can climb up the career path.
EI is defined in terms of being able to monitor and regulate
ones own and others feelings, and to use feelings to guide
thought and action. EI model includes five basic emotional
and social competencies: self-awareness, self-regulation,
motivation, empathy and social skills. In work, physical
fatigue can result in tension build-up between members. In
those situations, emotional sensitivity helps in retaining selfcontrol and understanding the emotional states of others.
More organizations are embarking on a journey to make
themselves more emotionally intelligent as they believe that
an organizations collective EI has an impact on the bottomline. EI is the significant factor in terms of performance. It is
also about the well being of the individuals.
EI falls under the umbrella of skills and behaviors, which are
needed for good managers. EI is not something new as it is
already commonly being practiced in our daily lives. The
challenge is how organizations can harness it for its people
to create a sustainable competitive advantage. With the
emphasis on the service industries, organizations have to be
proficient in EI, as it may soon become a key competitive
tool in managements armoury.


On the basis of my observations and findings, I am giving some
of the recommendations to improve the effectiveness of the HR
department in the organizations. The recommendations have
been bifurcated for the private hospitals and pharma companies
on the one hand and the govt. hospitals on the other. There are
separate recommendations for the both because of the fact that
there are no proper HR departments in the govt. hospitals
whereas in the private hospitals and pharma companies there are
not just the big departments but are also doing the great job.
Few of the recommendations have been given to these
Enhancing team effectiveness
Clearly, this is only the beginning of research to determine both
the effectiveness of this tool and what can be accurately
described in terms of process effectiveness on global teams.
Here are some areas which need to be researched:
1. Demographic research: How does nationality or cultural
differences influence the process effectiveness of
teams? Do teams with members of many cultures have
significantly different results on group process than do
teams with fewer cultures? How does homogeneity or
heterogeneity of age or gender influence processes on
such teams?
2. Measures over time: Do teams tend to improve their
functioning in general over time without interventions?
3. What is the relationship between types of interventions
to improve team effectiveness and GTPQ-measured
changes in effectiveness?
4. Relationship of teams to the larger organization: What
conditions in the larger environment foster team
process effectiveness? What conditions can decrease
such effectiveness? Are global teams in merging

companies generally negatively impacted (replicating

an earlier study)?
5. Relationships of teams to each other: Can teams with
high process effectiveness mentor those with lower
Although there has been much research conducted on teams with
respect to process effectiveness, there is less research in the area
of global or cross-cultural team development.
However, little emphasis has been placed on two aspects of global
team development: Long-term, longitudinal studies of individual
teams, and cross-team comparisons. Cross-team comparisons
and longitudinal study of teams is in progress utilizing two teams.
The longitudinal studies will detect both internal team changes
and external influences on the teams.
Second, team development should typically be handled through
generic training courses, in which principles of good team
development are provided. The same has been true for global
team development. The approach should offer the opportunity
for team members, leaders, and managers of the teams to take
specific steps both to remediate problems on such teams and
potentially to have effective team leaders assist other teams in
their business or academic areas with ways to improve process.
Such targeted intervention should be both more effective in
bringing desired results and in addition should be an investment
to improve productivity.
The purpose is to analyze process effectiveness on teams and to
suggest ways in which ineffective or harmful process can be
reduced. By identifying specific areas for improvement, targeted
change interventions can be made, either through training and
development efforts or through other approaches.
Quality of Group Communications
Quality of group communications should be improved. Any work
with the team which focuses on communications has the

assurance of targeting a significant problem. Other problems on

the team are leadership, trust, problem and conflict resolution,
and team cohesiveness.
Such a targeted approach can save an organization both time and
money, since team leadership and upper management can make
decisions on change and interventions based on a more assured
understanding of the problems on such teams.
Develop an HR philosophy for the entire organization and
get the top management committed to it openly and
A proper and effective HR policies should be developed and that
too for the entire organization and not just for any one particular
department. Moreover, proper commitment of the top
management is required. Without the support of the top
management the policies cannot be implemented effectively. So,
an attempt must be made to have a whole-hearted support of the
top management.
Keep aspiring the line managers to have a constant desire
to learn and develop
This is the most important and difficult task to perform. There is
no easy way of doing it. Setting personal example becomes an
important pre-requisite to inspire others. HRD persons should
demonstrate their own learning abilities by constantly
experimenting, communicating, visiting( their line managers and
other organizations), reading, networking, dialoguing and
They should keep on experimenting with the new methods,
techniques and systems of HRD.
Separate budget allocations

Separate budget allocations should be made for the HR

department. Without adequate funds HRD activities cannot be
progressed. There should be proper and adequate allotment of
funds to the HR department. Sometimes all the activities are well
planned but the problem is of funds.
Encourage innovations
Most organizations know performance appraisal (performance
planning, analysis and development), potential appraisal,
feedback and counseling training, job-rotation, career planning
and development training and OD exercises as mechanisms of
development. These are not enough. Organizations like hospitals
and pharma companies have a large scope for experimentation
and innovations. There is no single way of developing people.
In-company network is essential
In these organizations line managers should experiment with
various ways of developing human resources. HRD department
should be to perform the function of collecting these innovative
practices and disseminate to other employees so that they could
get inspired by these practices and in turn develop many new
Instead of controlling HRD function from the central office, it is
useful to create HRD cells in viable units and give them autonomy
to function independently. This will help in effective
implementation of the HRD activities, and moreover monitoring of
the tasks will become quite easier. The HRD staff of the operating
units should have at least half of the time available to do what
they see as useful and important and only the remaining time to
implement centrally conceived HRD practices.

HRD Climate should be the focus rather than the HRD

A new performance appraisal system, a skills inventory, a training
policy, a career development plan, a potential development
system, a job-rotation plan, a new communication method etc.
are all mechanisms organizations use to help employees develop
and utilize their competencies. These are means to competency
development which in turn is a means for organizational growth
and dynamism. This should be kept in mind. Quite often
mechanisms/sub-systems are pursued to an extent that the
formats, procedures and deadlines become more important than
the spirit and climate they are expected to develop.
There is a constant danger of means becoming ends. The main
focus of HRD as generation and improvement of HRD climate
should not be forgotten. HRD mechanisms and sub-systems are
instruments and instead of depending on one or a few
instruments the organization should be flexible enough to keep
trying out several instruments for strengthening the HRD culture.
Frequent get-together of HRD staff is useful
The mechanisms should be evolved for HRD staff and facilitators
to get together frequently and exchange notes, if they are having
decentralized set-ups. They should keep on examining the role
they are performing and create self-renewal processes in the HRD
function itself. It is useful for the HRD developments to undertake
OD work for improving their own functioning.
A point that should be examined in each of these get together is
the way the HRD staff is spending their time. If more than 25%
of their time goes in routine administration it is indicative that the
HRD department is beginning to cease functioning as a change

Periodic surveys are useful

The HRD climate survey should be made periodically. It has been
found really a good and useful instrument. It is advisable to make
annual surveys and make the data available to line managers.
Department wise analysis could be done and feedback given to
each department. In fact the survey feedback charts on these
could be displayed by each department and departmental staff
could get together to discuss methods of improving the HRD
Process orientation should be strengthened
Where employees are encouraged to express their ideas and
opinions freely, encouraged to be pro-active and somewhat risk
taking; where people are authentic and trust each other; where
people try to help each other and have a concern for their team
and their organization and other larger goals there HRD is likely
to take place well. For such a culture to be generated a high
degree of process sensitivity is required. Process sensitivity
consists of lack of a quick and ready recognition of various human
process dynamics that occur in organizations as various
employees work together to accomplish organizational goals.
Monitoring the implementation of HRD sub-system or
mechanisms is a very important task and it should be positively
done. This monitoring is not merely statistical monitoring but
more of a spiritual Monitoring that requires dynamism on the
part of the HRD staff. Without monitoring implementation of
these tasks will loose its effectiveness.
Structural changes are required

Since these are large organizations, a small number of HRD staff

will not be able to monitor implementation. Good monitoring
involves availability of a friend, philosopher and guide in close
proximity to the implementer. For an effective implementation of
a performance appraisal system, every 50 employees require
someone to help them and someone who can keep reminding
them of their responsibilities. Hence it is advisable to develop
HRD facilitators in these organizations. Line managers should be
developed into trainers with some minimum training. Each line
manager chosen as a HRD facilitator should be able to spend at
least 10% to 15% of his time in HRD facilitation and it should be
made part of his job.
Be aware of the business/social/other goals of the
organization and direct all their efforts to achieve their
HRD department should constantly designing performance
appraisal systems, introducing job-rotation, feedback and
counseling mechanisms, training systems, career development
exercises, team building exercises etc. but it should make sure
that all these efforts are directed towards the organizational
goals. They are not deviating from the organizational goals.
Though, The Ministry of Health attaches considerable
importance to human resources development as a sine qua non
for achieving sustainable development of the health sector the
govt. hospitals are not too well versed with the HRD area. Policies
governing HRD have evolved over the years. The First National
Workshop on Human Resources Policy held in April 2001, under
the joint auspices of the Ministry of Health and the World Health
Organization, presented a unique opportunity for broad-based
consultation among health services administrators, educators and
human resources managers for further development of human
resources policies, programmes and systems. The Ministry of
Health acknowledges the contributions of all participants in the

workshop, which have paved the way for further deliberations by

the Ministry and helped in developing concrete guidelines for
human resources development.
The Ministry of Health (MoH) recognizes manpower as a key
resource in the health care system and emphasizes the need to
optimize its planning, production and management. In order to
ensure that human resources development helps in achieving and
sustaining the highest possible level of health for its people
hereby are the certain guidelines to govern human resources
Establishment of a separate HR department
A separate HR department should be established to perform all
the functions of HR. Separate department will help in the effective
implementation of these activities as well as the monitoring of the
activities in the organization. There should be separate staff for
this purpose. Experts in the HR field should be hired to make the
plan more effective and fruitful.
Proper management of the recruitment process
It is observed in the public hospitals that the recruitment process
is often mismanaged with regard to the following:
Requests for filling of posts with relaxation of
requirements, in contradiction of PSC Circular No. 29 of
1998, which discourage such practices
Inadequate size and inappropriate composition of the
interviewing panel
Incorrect short-listing of candidates
Balance structuring when applying Affirmative action
Long delays between the closing date of advertisement
and the submission of nominations to the Public Service

Submission of incomplete schedules of candidates to the

Public Service Commission.
Significant improvements should be made in the recruitment
process. The method and interviewing tools should be improved
and recruitment process should be made effective.
In our further efforts to improve performances, there should be a
procedure to assess competencies and suitability of candidates by
way of a combination of written and oral interviews for those
posts for which the incumbent is expected to develop and
produce documents. It has been found out that sweet talkers in
the interviews are not necessarily good performers. In selecting
candidates, one should be able to assess and satisfy himself that
the best candidate is selected.

Misconduct and suspension of staff members

Few of the govt. hospitals are not too effective in this regard. It is
found that the time frames prescribed by the Public Service Act,
with regard to misconduct are not adhered to. Time and again,
the charge has to be withdrawn because the prescribed period
had lapsed and the staff member has to be re-charged. This
causes delays and undermines discipline in the workforce as an
impression is created that nothing is being done to the culprits.
So, a proper procedure is to be adopted to maintain discipline in
the organizations specially govt. hospitals. Guilty has to be
punished appropriately so that it should not lead to the biasness
and grudges in the mind of other staff members.

Separate budget allocations

Separate budget allocations should be made for the HR
department. Without adequate funds HRD activities cannot be
progressed. There should be proper and adequate allotment of

funds to the HR department. Sometimes all the activities are well

planned but the problem is of funds.
It is found that quarterly progress reports on staff members, who
are on probation, are not completed timeously.
Apart from inefficiencies in handling probation, there are serious
implications to the staff members concerned. There are certain
benefits, which a staff member on probation is not entitled to. By
withholding these benefits, for up to six years, they are in fact
punishing the staff member concerned unfairly. This should not
be done as this leads to the grudges in the minds of the
employees and he feels himself inferior to the other employees.
To maintain equity and fairness in the organization, the HR
person should try to devolve certain fair means.
Social pension
With regard to social pension there is the same scenario. There
are variations in payments to pensioners depending on the
location where the payment was done. This should not be the
case. Govt should try to bring equity and fairness in payments to
Stability in the chief executives
In public sector, every time the chief executive changes there is a
threat of organizational priorities changing. Quite often HRD staff
has to wait to understand the HRD philosophy and priorities of
the new chief executive. A lot of time and enthusiasm gets lost in
the transition period as normally HRD is not the priority of most
of the chief executives in the first year of office. In some cases
the role of the HRD manager may itself undergo a change to suit
the priorities of the chief executive. So attempts should be made

to bring stability in the organizations CEO, otherwise all HRD

efforts will go waste.
Instead of controlling HRD function through the Ministry of health
and appointing one HR head, it is useful to create HRD cells in
viable units and give them autonomy to function independently.
This will help in effective implementation of the HRD activities,
and moreover monitoring of the tasks will become quite easier.
The HRD staff of the operating units should have at least half of
the time available to do what they see as useful and important
and only the remaining time to implement centrally conceived
HRD practices.
To conclude, I would like to say that the HRD activities in the
private hospitals like Apollo are very good and also in the
pharmaceutical companies but the activities in govt. hospitals are
negligible. Moreover, there are no HR departments. So to improve
the staff of these hospitals HR department has to be introduced.
Govt. should take necessary measures to improve the condition
of the workers in these hospitals. Then only we can say that HRD
has really made its mark.


RAO, T.V, SINGH, KULDEEP, Selected Readings in
HRD, Tata McGraw Hill Publishing Company, 1996
RAO, T.V Personnel Management, Tata McGraw Hill
Publishing Company, 6th edition.
Directions in HRD, Tata McGraw Hill Publishing
Company, 2nd edition.
HUMAN CAPITAL, Vashima Printers, Vol. 7, No. 7,
December, 2003, No.8, January, 2004, No.9, February,
2004, No.10, March, 2004.
THE HINDU BUSINESS LINE, Friday, January 9, 2004.
THE TRIBUNE, Chandigarh, Tuesday, January 18,


Name of the organization
Name of the HR head
Q.1 what do u understand by HRD?

Q.2 what do u think is the need for HR department in your

Q.3 Is there a separate HR department in your hospital/company?
If not, who is responsible for handling HR activities in the
organization? How he handles this?

Q.4 What is the strength of the department?

Q.5 What are the efforts made by your department towards the
welfare of the staff in your organization?
Q.6 How you recognize the training needs of the employees in
your hospitals/company?

Q.7 What is the procedure of performance appraisal of

employees? Are u and other staff is satisfied with that? How u
recognize the performance of Doctors and Nurses?

Q.8 What kind of compensation package is paid to the

employees? Are they satisfied with that? Is there any provision of

Q.9 What is the method of Potential appraisal of the employees?


Q.10 What is the procedure for assessing the need of career

development of an employee?


Q.11 Is there any provision of providing feedback to the

employees (especially doctors in case of hospitals) about their

Q.12 How much emphasis is laid on the organization development
and research in your related field?