PROJECT ON

HUMAN RESOURCE
DEVELOPMENT
(ROLE OF HRD IN PUBLIC SECTOR)

SUBMITTED TO: SUBMITTED BY:

DR. GAGANDEEP JYOTSNA GUPTA
M.COM 3RD
SEMESTER
INTRODUCTION
 In simple terms, HRD is concerned with the
development of the human resource function in an
organization. The term Human Resource
development involves mainly two terms: Human
resource and Development.
 -Human resource – which consists of the total
knowledge, creative abilities, skills, talents and
aptitudes of an organization's work force, as well as
the values, benefits, and benefits of an individual
involved in the organization.

-Development on the other hand involves

enhancement of the skills and abilities of the
employee in the present job as well as making him
IMPORTANCE OF HRD
 Growth of organization: It is associated with the
development of its workforce.
 Development of work culture: Improving the
efficiency of employees, better communication,
development of mutual cooperation and creativity of
all the members.
 Developing potentialities: HRD manager focuses on
enabling people to self-actualize through a systematic
approach leading to development of their talents.
 Growth of employees: Helps employees to know their
strengths and weaknesses and enable them to
improve their performance.
MAJOR HRD MECHANISMS OR
TOOLS
PERFORMANCE APPRAISAL
 It is used as a mechanism to understand the
difficulties/weaknesses of the subordinates and
help/encourage them remove all these and realize
these. Other objective is to identify their strengths and
weaknesses of the subordinates too and to provide
them a positive environment and them to understand
their positive attitudes.
CAREER PLANNING
 In HRD, corporate strategies and business expansion
plans should not be kept secret. Long term plans of
the organization should be made transparent to the
employees. Most individuals want to know their career
growth and other possibilities. Hence the managers
should transform the organization plans to the
employees, thus making way for the employees to
plan their growth possibilities accordingly.
TRAINING
 The training is directly linked with career growth and
appraisal of the employees as such. Employees are
given on the job training as well as off the job training.
POTENTIAL APPRAISAL AND
DEVELOPMENT
 The capabilities should be developed within the
employees to grow/perform new goals &
responsibilities by themselves continuously. A
dynamic and growing organization needs to
continuously review its structure and
systems, creating new roles and assigning new
responsibilities.
REWARDS
 Rewarding employees is a significant part of HRD.
By this, the organization in motivating &
recognizing the employee talents as such. It also
helps in communicating the values of the
organization also.
EMPLOYEE WELFARE
 HRD systems focus on employee welfare and
quality of work life by continually examining
employee needs and meeting them to the extent
possible.
ORGANISATION
DEVELOPMENT
 A continuous effort is maintained to maintain the
development of the organization as a whole. This
may be mainly through research methods and all,
where in possible development in specific areas
may be reviewed and corrective action may be
taken.
 FEEDBACK AND
PERFORMANCE COACHING
 This is the responsibility of the supervisors to
continuously monitor the employee performance and
review and provide necessary suggestions to improve
them.
ISSUES IN PUBLIC SECTOR
 Inadequate training and inappropriate selection of
government employees
 Poor working environment for health workers
 Poor moral and lack of involvement of workers in the
management decision making process
 Irrelevant job description of employees
 Employees turnover
 Inadequate evaluation of the skills and level of
performance of workers
 Poor work ethic amongst public sector employees
 HUMAN RESOURCES ARE
DESIGNED TO MANAGE THE
FOLLOWING
 Employee benefits
 Employee health care
 Compensation
 Annual, sick and personal leave
 Sick banks
 Discipline
 Records(tax information, personnel files, etc.)
 Recruitment and employee retention strategies
Undertakings
 Currently a few of the PSU’s at crossroads in spite of
some innovative practices a few of them are
attempting.
 Have become short term target driven than long
term intellectual capital focused.
 Implementation suffered due to frequent changes in
top leadership. Instead of figuring out and working on
implementation issues most PSU’s and their
managers are busy in shopping spree to introducing
systems without understanding the implications and
changing systems along with the consultants as their
top management changes.
The Trend Which is meant to set
Direction for the Future by
Pointing Out The Areas Where
The PSU’s Lacks:-
HR in PSUs in 70’s and 80’s
 PSU’s attracted highly competent people in the past. It
used to be a prestigious thing for most engineering
graduates from leading educational institutions like: NTPC,
BHEL, BEL, HMT, HAL and the like in 70’s and 80’s.
Thus the PSU’s attracted talented engineers and other
graduates. They also instituted good HRD systems which
were path breaking.
 Like, HMT was the first to start a dedicated Organization
Development deptt in early 70’s.
 SBI and its associates were the first to start the HRD
functions under the guidance of Dr. Udai Pareek and
appointed a full-fledged HR deptt to design and implement
HRD systems to promote continuous development of
employees.
 The HRD Managers of the Associate Banks used to meet
periodically to share their progress. OD work was
undertaken systematically to survey the organizational
climate in these banks.
 SBI itself appointed a highest level functionary to look
after HRD.
 In the late 70’s Bharat Earth Movers appointed the
author as advisor in general managers' capacity to
design and develop HRD systems and also to train
internal talent to manage HRD.
 Indian Oil Corporation used to conduct regular survey
of HRD Climate in early 80’s and was first to bring
out a Role Directory internally
 SAIL revamped the Performance Appraisal and
various other systems with the help of IIMA.
 HPCL was first to think of Communications as a
strategy of HRD and examine all its policies form the
angle of communications in mid-80’s, IIM helped it in
doing the same.
 Thus HRD in PSUs in seventies and eighties can
be characterized as path breaking, with highly
committed HRD facilitators who devoted their
time and energies to design and lead HR. This
era can be characterized as HR Leadership era in
seventies and eighties
Fall of HR- Nineties
 With liberalization the bench marks started
changing. The HR departments had to largely
perform the painful role of downsizing and VRS
schemes in many organizations. Organizations
were under tremendous pressure to perform.
 This perhaps was the time when HR Managers
could have come more alive and thought of
innovative HR practices for developing current
manpower, modernizing their technical and other
skills, conduct change management programs
and develop new era of leadership. Unfortunately
they were caught unaware. Combined with this
was pressure on organizational
performance, upgrading the quality of
products, cost reduction exercises etc.
 The HR people largely concentrated on downsizing or
right sizing the organizations. Unfortunately this also
happened to be the time when many private sector
and MNCs grabbed competent people from PSUs.
 Many PSUs like the SAIL, NTPC, IOC etc. lost a lot of
its talent to private sector and MNCs. The HRD
managers of PSUs helplessly watched this talent
migration. Their focus on performance management
and OD interventions also dwindled.
 However in all fairness it must be said that a few of
them struggled and did their best to keep their talent
management practices intact. As the PSU chiefs were
pre-occupied with debates on privatization or
disinvestment they remained the HR got pre-occupied
with downsizing and right sizing and VRS
 HRD suffered quite bit in this period and its credibility
got into the bottom. A few innovations started in those
years to promote change went un-noticed or talked
about. For example SBI under the guidance of the
then Banking Secretary Dr. Y. V. Reddy introduced
Assessment Centre Approach in the top level
promotions.
 In this approach the departmental Promotions at top
level got replaced by a full day testing and
interactions by a group on internal and external
experts who sued multiple techniques of assessment.
IOC started its Petroleum Management Institute. RBI
itself has appointed a HRD Advisor to change its HRD
systems.
Rise of HR in 2000+
 Competencies are being recognized the PSUs have
come to terms with the reality. They also face the
stark reality that they have to be content with existing
systems and staff.
 Given the difficulties in compensation changes there
is a recognition that PSUs cannot come to compete
with MNCs in their race for salaries. They however
recognize that their CTC (employee Cost to
Company) as they projected are under-estimates of
what they really give to their employees.
 When their investments on infrastructure like
residential facilities, hospitals, schools, town
ships, other benefits in organizations like
SAIL, BHEL, BEML, ITI, LIC, BEL, HAL, Nationalized
Banks are taken into account the CTC may be
considered as large though not comparable with the
 This recognition coupled with the reforms in PSUs
relentlessly though somewhat unsuccessfully
being pursued by the Government has put
pressure on the new HR Manager in the PSUs to
perform.
 Today almost all PSUs have Director level
positions for HR. They are expected to manage
talent. Many of the PSUs have begun to meet this
challenge in the last ten years by initiating
appropriate interventions
 NTPC has profiled the competency requirements
of its General managers and EDs in early part of
this century and started the concept of
assessment centres. They have been running the
 ONGC has also started Assessment and development
Centers for their Asset and basin managers and have
trained a number of their Directors as assessors with
h the help of the author.
 SAIL has revisited their performance appraisal system
and has redesigned the new system incorporating
360 Degree Feedback and Assessment centers for
appraising the potential of their managers.
 HAL has been running Leadership development
programs with the help of IIMs and other consultants.
 BEL has been using 360 degree Feedback and
Change Management interventions to train their
Managers with the help of MDI, COD and TVRLS
 Bharat petroleum has been conducting a number of
change management initiatives by developing internal
change agents and facilitators of change. HPCL is
extensively using competency mapping and ADCs for
talent recognition programs. BPCL has even
facilitated a nationwide study of the competencies
required for the New CEOs in private and public
sectors. Thus a number of good practices are going
on at present.
 The recently released directive from the Department
of Public Enterprises appealing to all PSUs to revamp
their PMS and make it more robust and transparent
especially in view of the introduction of the
performance based incentive or pay system is
laudable and may give rise to some innovations and
more accountability
Conclusion

 The analysis has assisted in creating a path

forward in the design and development of the
HRD strategy. Not all ideas proposed could be
embodied in the strategy. Notwithstanding, those
ideas that are identified in this section constitute
the key areas of focus and the initiatives which
could potentially make a substantial difference in
the structure and practice of HRD in the Public
sector.
 CASE STUDY

HUMAN RESOURCE DEVELOPMENT

PRACTICES IN PUBLIC SECTOR MILK
PROCESSING ORGANIZATIONS IN
WESTERN MAHARASHTRA
 ABSTRACT
 HRD practices in public sector milk processing
organizations in western Maharashtra are very
weak. It needs to be strengthened by
implementing on scientific line. The
recommended HRD model would give better
results to public sector milk processing
organizations in strengthening the HRD practices.
 INTRODUCTION
 Public sector milk processing organizations have an
excellent infrastructure setup, well equipped plant, modern
machineries and employing huge workforce but these are
few in number as compared to private and cooperative
sector milk processing organizations in the said area.
 These organizations are mainly for bringing out thorough
development of the milk sector, speed up milk
industrialization uniquely at different geographical areas
and energize other sectors’ milk processing organizations.
 These organizations are playing vital role in creating
healthy competition in the market however if it is eliminated
from the market, there will be no control over the private
and cooperative sector units resulting in exploitation of the
society at large.
METHODOLOGY ADOPTED
 In Pune and Nasik region of Western Maharashtra, among the
registered organizations in public sector, 7 milk-processing
organizations are actually functioning. Out of these, 6
organizations were incorporated in the sample of the present
study- three each from Pune and Nasik region- by adopting
following criteria as: equal number of organizations from both the
region, only one organization from the district, well reputed
organization, permission for research, organization with 5 years of
registration, more than 30 employees, daily milk collection
minimum of 5,000 lit and plant handling capacity minimum of
20,000 lit/day.
 The total number of workforce in these organizations was 1652;
out of these 461 belonged to management staff and 1191 belonged
to employee‟s category. As it was quite difficult to conduct the
survey for all the workforce, 30% of both the category i.e. 138
management respondents and 357 employee respondents, in total
495 respondent workforce, were selected for the present study by
adopting proportionate convenience sampling technique to
accomplish objectives of the study:
1. To examine HRD practices being followed in selected milk
processing organizations under study and
2. To suggest remedial measures in order to enhance the
quality of HRD practices.
 Researcher collected primary data through survey method,
discussions and interviews, non-participatory observation
method and secondary data through documentary research
method and unstructured interviews to justify the set
hypothesis:
1. HRD has no role in the success of milk processing
organizations.
2. HRD practices in public sector milk processing
organizations in Western Maharashtra are strong.
 The geographical scope of the study covers the entire
division of Western Maharashtra, the topical scope covers
the evaluation of the on-going HRD practices, the analytical
scope covers the fulfillment of the set objectives and the
functional scope is confined to offering meaningful
recommendations for improving the HRD practices of the
organizations. However, the interview schedules used for
collecting the primary data were neither designed to
ascertain the respondents‟ biases nor to gauge the influence
of these biases on the intensity of their responses. Again, the
study has included urban and rural areas of Pune and Nasik
region the spatio-temporal perceptions of individual
employee‟s differ widely and have accordingly influences
their responses.
 HRD practices in public sector milk
processing organizations
 As most of the HRD practices are at a „very poor‟ level in the Public
sector; it is a terrific worrying situation and policy maker/
Government should initiate immediate drastic HRD interventions to
prevent the situation from deteriorating further. Researcher has
put forward the “Raj - Shankar” model of HRD for each of the 21
HRD activities practiced in public sector milk processing
organizations .The abstract from the model is noted as:
1. Government /policy maker should bring out a sea change in
the existing HRD policies
2. Appoint professionally sound people in the top level
management as well as consult with professional organizations
3. Create separate HRM department, appoint HRM/ HRD
manager preferably candidate with MBA – HR.
4. Provide liberty to HR manager to evaluate existing HRD
policies and redesign it, if necessary, with the active support of top
management.
5. Widely make aware of all the HRD activities to the workforce.
6. Encourage workforce‟s comments, criticisms and
involvement
7. Made available every help and support to them
8. Continuously evaluate and follow-up.
 CONCLUSION
 Overall, HRD practices in public sector milk processing
organizations in Western Maharashtra are judged on the
basis of theoretical presentation and the analysis of the
empirical data. Accordingly, it is concluded that in milk
processing organizations in Western Maharashtra HRD
practices are very weak and need to be strengthen in order
to sustain in today‟s global competition.