THIS WORK CONTRACT AGREEMENT (here in after also referred to as work contract reach ±III/A (from 212.161 to 267.6000- total: 55.439 km) is entered into on April 13, 2009, at Gurgaon, Haryana by and between;

M/S SOMA ENTERPRISE LIMITED , a company duly incorporated under the companies act, 1956, having its corporate office at #14, Avenue-4, Banjara Hills, Hyderabad-500 034, and regional office at B-4/45, Safdarjung Enclave , New Delhi-110 029, (here in represented by its vice president Mr. K.V. Rambabu (here in after referred to as SOMA ) which expression shall , unless repugnant to ot inconsistent with the context thereof, shall mean and include its executors, administrators and assigns, of the FIRST PART. AND

M/S RV Akash Ganga infrastructure ltd. a company incorporated under the companies act . 1956 and having its offence at A-1/275, Paschim vihar , New Delhi,, here in represented by its director , Mr. Rohit Bhagat , (here in referred to as RVAGIL) which expression shall, unless repugnant to or inconsistent with the context thereof, shall mean and include its executors , administrators and assigns, of the SECOND PART.



Total project cost

Rs.220 crores (appx.)



6-Lanning of Panipat ± jalandhar section of NH1 from km 96.000 to km 387.100 in the state of Haryana and Punjab to be executed as BOT (TOLL) on DBFO pattern under NHDP phaseV III from km 212.161 to 267.600 , length 55.439 km


Reach National highway authority of INDIA , G-5 & 6 SECTOR 10, DWARAKA NEW DELHI








Soma ±Isolux NH one toll way pvt. Ltd.


EPC Contractor

Isolux corsan INDIA ± soma (JV)





Receipt of LOI


Agreement Date

13th April,2009


Commencement Dt.

20th April, 2009

Date of completion 12. 19th October,2011

1. Highways

Soma firmly believes that only an efficient infrastructure setup can ensure a nation¶s sustained economic growth. True to its commitment, Soma focused on building national highways, state expressways with uncompromised standards and world class safety measures that definitely has a cascading effect in saving precious lives, preventing injuries, reducing traffic-related health hazards and mitigating regular maintenance costs of the vehicles. The Vision 2020 document of the Planning Commission projects a five-fold growth to the volume of India¶s road traffic by year 2020. This will be enabled by over 70,000-km of national highways and 5,000-10,000-kms of four-laned (or more) expressways networking the Metros. State highways and rural roads are also set to see significant improvement. The National Highways Authority of India (NHAI) is engaged in the largest highway project ever undertaken in the history of the country. The Phase I and II of the NHDP will see four-six laning of about 14,279 km of national highways. Having worked on over 20 highway projects in the last 12 years, it is a natural evolution for SOMA to take on projects on a Build, Operate and Transfer (BOT) basis in a Public Private Partnership (PPP) model.

Infrastructure > highway > projects






Nellore Km)


(17 National Highways Rs. 1700.00 M Andhra Pradesh Authority of India (USD 38.00 M)

Aug, 2004

Pimpalgaon ± Dhule National Highways Rs. 6060.00 M Maharashtra Authority of India (USD 135.00 (115 Km) M) Adilabad Expressway National Highways Rs. 4590.00 M Andhra Pradesh Authority of India (USD 102.00 (55 Km) M) Panipat ± Jalandhar National Highways Rs. 45182.00 Punjab M (USD Highway 6 Lanning Authority of India 1004.00 M) (291 Km) Bangalore Elevated National Highways Rs. 7650.00 M Karnataka Authority of India (USD 170.00 Expressway M) Chennai Elevated National Highways Rs. 21483.00 Tamil Nadu Authority of India M (USD Highway (19 Km) 478.00 M) Surat ± Hazira (133 National Highways Rs. 24180.00 Gujarat Authority of India M (USD km) 537.00 M

April 2010

April 2010

May 2011

Sep 2009

Aug 2012

April 2012


Energy is the Earth¶s most precious resource. Energy creates prosperity. Usable modern energy requires complex infrastructure. And that¶s where Soma, with its proven track record in infrastructure development, steps in to change the landscape of the present and future energy requirements. India's energy requirement is growing exponentially and the need to find a solution is more pressing than ever before. To meet the projected power requirement by 2012, an additional capacity addition of 100000 MW is required in the next two five year plans. Soma with its proven track record and technical expertise is making sure that it will play a lead role in reshaping India¶s energy infrastructure landscape. Soma¶s extensive experience in constructing Hydro Power projects has led it to venture into operating and managing Energy projects for the country.






222 MW Sissiri 222 MW Sissiri Rs. 16900.00 Arunachal Electric M (USD Pradesh Hydro Electric Hydro Project 376.00 M) Project

3. Urban Infrastructure

Having achieved success in executing crore infrastructure projects, soma is now extending its execution strengths to the high growth sector of urban infrastructure development.

Soma will focus on the development of key urban projects such as convention centres, retail spaces, transit centres, hospitatility projects etc. These projects will predominantly be

executed on a BUild Own Transfer basis in a Public Private Partnership with the respective government agencies. In this direction, soma is forging alliances with reputed international firms for architecture, design and development of high quality modern urban infrastructure.






Jog Holiday Resorts

Job management Rs. 238.00 M karnataka authority (USD 5.00 M)


Pradesh Rs. 5892.00 M Andhra Pradesh Soma Hyderabad City Andhra State Road (USD 131.00 M) Centre Transport Corporation Soma Raipur Centre City Raipur Municipal Rs. 1592.00 M Chhattisgarh Corporation (USD 35.00 M)



Soma Resorts Limited

of Rs. 1326.00 M Andaman & 2014 Andaman Directorate Nicobar Islands Private Tourism, Andaman (USD 29.00 M) & Nicobar Administration

Employment procurement control

1. Hydel power

soma, continually seeks to play a prominent role in the emerging areas of the country¶s infrastructure. The government is preparing to install an additional 100,000 Megawatts (MW) of generating capacity in the next few years. And as this huge development is taking shape, the role of transmission in the Indian power sector is also gaining importance. With extensive experience in constructing and managing huge Infrastructure projects in almost all parts of the country, Soma holds a distinct advantage in playing a lead role in this sector.

2. Irrigation

Soma, as a construction company , has been pioneering major development in the irrigation sector. Our people, equipment, construction materials and experience ensure we complete projects of any size or complexity, on time and on budget. Soma has executed major civil works in the building Gravity Dams, Embankment Dams, Barrages, Pump house, Lift Irrigation Projects, Water/Sewage Treatment Plants, Water Conservation Projects etc. Our workforce involved at these sites are carefully handpicked after putting them through a stringent screening mechanism that go a long way in building modern marvels that support India's agriculture.

3. Transportation

We, at Soma believe in bringing together the roads of vision and dynamism n the highways of growth. Our leadership is reflected in our dream to leave an indelible impression on every stretch of asphalt laid and in every path taken. The company has charted new paths in the construction of world-class roads and highways that have put India on par with its international counterparts. Soma is committed towards introducing modern, international standards in all highway projects it undertakes in the country


Indian Railways , one of the largest railway networks of the world, has been the prime mode of passenger and freight transportation in the country. Railways has been an integral part of the Indian economy and operates more than 11,000 trains per day, of which around 7,000 are passenger trains. Vision 2015 of the Indian Railways clearly lists plans for extensive capacity expansion and infrastructure improvement. It also adopts the Public Private Partnership model to meet these needs. Soma sees these developments as a great opportunity. The railway format has also become the popular solution to Mass rapid transport problems, with many Indian cities developing Metro Rail projects. With the necessary expertise and resources to play a vital role in these areas Soma has begun work on various new projects.

4. Tunnels

Soma engineering excellence can be observed in the profile of work that has been handled by us. Tunnels especially have always challenged the engineer with its various complexities. Soma has proven its engineering prowess in handling complex tunneling tasks be it through mountains, under cities or for channeling rivers. Tunnel projects undertaken by Soma demonstrate Soma¶s Engineering Excellence.


Premiere real estate development is a new area of focus for Soma now and we have begun our endeavours with some concrete steps.

Current projects at various stages of development include

y y y

Integrated township comprising of premium residential villas & apartments, commercial space, retail space, hotel, hospital, and state of the art community amenities including club house, spa, etc. High end Commercial and Retail spaces. Premium Residential apartment & villa developments. Hospitality, Sport and recreational projects.

Projects are currently on going at several locations including
y y y y

Bangalore Hyderabad Gurgaon Chennai



We are also in the process of identifying and acquiring land at several locations for our future projects.


The Technology arm of soma will focus on developing innovative and customized IT enabled solutions for project design , project monitoring , project management and other Infrastructure related applications . Soma plans to strengthen its business with the usage of cutting edge technologies that would enable us to meet delivery deadlines on time. Besides meticulous project planning, design and management Soma for all its projects relies highly on mission-critical IT infrastructure and systems that have a significant impact on overall quality of the project.


Our large equipment base is one of our greatest assets. To ensure that we make optimum utilization of these assets, and achieve maximum efficiency, we have formed Specialist Divisions managing related equipment and expertise. These Divisions provide services to in-house projects, as well as to external clients. The Specialist Divisions are armed with ready to deploy Plant & Machinery Assets worth over 1000 Cr and can be mobilized quickly to execute jobs anywhere.



Highway & tolling

Ready mix concrete

Frame work


Equipment & workshop

Rock processing


Natural Resources

Soma Granites Pvt. Ltd., a professionally managed granite company , part of the Soma group focuses on quarrying and producing dimensional Granite blocks for Export and for sale in the local market.

This business vertical in the group will eventually expand to develop and manage other Natural Resources as well. Presently Soma Granites own two Granite quarries from which two different types of granite are extracted. Romantica: A Red based granite with grey wavy patterns, this is ideal for sculpted monuments as well as to make slabs. Romantica is quarried from Kenchanpally (Village), Rayadurga (Mandal), Ananthpur (dist), Andhra Pradesh, India. Orion Blue: A Blue based granite with grey wave and garnets is also used for monuments and slabs. This quarry is located at Addukonda, Tekkali (Mandal), Srikakulam (Dist), Andhra Pradesh, India. Soma Granites also produce dimensional granite blocks to suit to the requirements of clients. The dimensional granite blocks from the quarries have been exported to countries like France, Belgium, Poland, Germany and USA for Monumental use and to countries like Italy, China and Dubai for Building Materials. Other quarries with a variety of granite are being prospected amongst expanding the scale of operations across all branches situated across India. Corporate

Soma, over the years, has evolved into an organization that believes in identifying business opportunity in all condition The belief of challenging our own achievements gives us the motivation to be at the top of our business, constantly pushing ourselves for achieving what otherwise seems to be impossible. This spirit of entrepreneurship in fact, raises the performance bar in every project that we undertake and helps in being a driving force in achieving the unexpected. The very evolution of Soma from a small construction firm into a- force-to-reckon-with in the construction and infrastructure industry of the country stands as a testimony to its achievements. The last decade has witnessed our transformation from a Rs. 430 million company to a Rs.25,000 Million (USD 555.59 Million) million company. Thanks to our dedicated 10000 member workforce that helps us raise the bar consistently in product delivery standards, we now have projects worth Rs. 151000 Million (USD 3400 Million) under implementation.

About us
Soma Enterprise Ltd. is one of the fastest growing infrastructure developers in India focused on construction and development of core infrastructure projects in the transportation, hydel power and water resource sectors among others.

The organization, with a turnover of around Rs. 25000 Million (USD 555.59 Million) is currently executing projects worth over Rs.151000 Million. (USD 3400 Million) It has over 1250 Experienced Senior Engineers / Project Managers, 3500 Engineers / Technicians ± Supporting the senior team and over 6000 skilled and semi skilled workforce. As an integral part of its approach to construction, Soma owns and deploys state of the art equipment and technology in assets worth over 10 Billion to ensure efficient execution. Soma has evolved from a pure EPC player to taking infrastructure projects on a Build Own Transfer basis.

Accreditation ISO 9001:2000 Certification for Design, Planning, Construction and Project Management of Infrastructure projects and Turn key Projects.

ISO 14001:2004 Certification for implementation of an Environmental Management System in the design, planning and management of Construction, Infrastructure and Turn key projects.

OHSAS 18001:2007 Certification for Implementation of an occupational Health and Safety Management system in the design, planning and management of Construction, Infrastructure and Turn key projects.


Soma made a modest beginning in 1997-98 with a turnover of Rs. 432 Million, since then it has registered an admirable year-on-year compounded growth of over 40% in the 13 years of its operations.

Soma has consistently proved its execution capabilities across a variety of high value infrastructure construction segments. A strong and diversified order book of over Rs. 151000 Million (USD 3400 Million) is expected to drive earnings in the coming years with substantial growth. With the annual turnover of over Rs.25000 Million (USD 555.59 Million) for the financial year 2009-2010, an upsurge in the infrastructure sector and a huge order book, Soma expects to register significant growth in revenues in the coming years.

previous annual reports

<Vision & Mission> "The future belongs to those who see possibilities before they become obvious." ² John Scully VISION: To evolve as a predominant defining force in the Infrastructure industry

MISSION: To set new standards in quality and time bound delivery


We respect our customers above all else and never forget that they come to us by choice. We share a personal responsibility to maintain our customers¶ loyalty and trust. We listen and respond to our customers and seek to exceed their expectations. We rather believe in integrity and maintain an effective long-term relationship with our clients.

National Highways Authority Of India (NHAI)

Karnataka road development corporation (KRDC)

NHPC ltd.

NTPC ltd.



Municipal co. of Raipur Maharashtra water



Resource dept.

Irrigation dept. Andhra pradesh

Municipal co. of Mumbai





< partners >

Our expertise in handling projects makes our job all the more meaningful to find a strategic partner on project to project basis. Our timely partnership with the business partners goes a long way in drafting innovative and first-of-its-kind business strategies. These joint ventures that encompass several strategic tie ups spanning supply of raw materials etc. help make the project in hand achieve successful completion. We joined our hands with many a list of illustrious partners namely

Limax construction ltd.

Gammon India ltd.

Patel engineering ltd.

Ircon international ltd.

Isolux corsan , spain

Maytas Infrastructure ltd.

Nagarjuna construction Ltd. <Awards & Recognition >

Continental engineering co. Taiwan

Time and again soma has proved its excellence in the field of engineering. Soma has been honored to receive recognition and awards for its distinguished reputation over the years for the extraordinary contribution in the engineering sector. The following Awards stand a proof of Soma¶s success and achievement.

Udyog Ratan Award - Mr. Rajendra Prasad Maganti, CMD of Soma Enterprise Ltd., has been awarded the Udyog Ratan Award by the Institute of Economic Studies. Mr.Rajendra Prasad Maganti receiving an award from Hon'ble. Minister for Major Irrigation Govt.of Maharastra, Shri Ajit Pawar for excellence in the execution of Temghar Masonry Dam.

Certificate of Excellency - Soma has been awarded the µCertificate of Excellency¶ in productivity, quality, innovation and management by Shri Dharam Singh, Hon'ble Chief- Minister of Karnataka.

Certificate of Excellence 2007-08 - This certificate of excellence and a golden memento was presented to Soma on 7th January 2008 by Hon'ble Minister for Water Resources, Maharastra, Shri Ajit Pawar for providing & erecting 27 Nos vertical lift type mild steel gates of size 15m x 9m having steel component of 5730 MT for Prakasha Barrage Project, Tal .Shahada, Dist. Nandurbar, Maharashtra (contract awarded by Tapi Irrigation Development Corporation). This task was completed in a short span of 18 months.

Best Performance Award - The Vidarbha Irrigation Development Corporation has awarded 'The Best Performance Award' to Soma for the year 2003 - 2004.

SOMA has been awarded the prestigious Gold Award and Certificate of Excellency for its outstanding performance and recognizing record progress by Hon'ble Minister for Water Resources, Shri Ajit Pawar

Digras project was awarded the prestigious Gold Medal and Certificate of Excellence for its outstanding performance and completion of Construction of Digras High Level Barrage including Providing & Fixing Vertical Lift type Gates across Godavari River nearly one year ahead of schedule.

The award was handed over by the Hon¶ble Minister of Water Resources, Govt. of Maharashtra Shri Sunil Tatkare on 27th December 2010. <Corporate social responsibility >

Soma has never deterred from its commitment to society , while keeping its focus on performance. Maganti Foundation Soma has reconciled performance with community support through MAGANTI FOUNDATION (MF), which is a charitable trust started by the Chairman and Managing Director Sri Rajendra Prasad Maganti. Soma has been actively engaged in extending its support to various socio-economic, educational and health initiatives. Here is a glimpse of Soma¶s initiatives as a responsible corporate. Education

Soma places µeducation¶ above everything else, and acknowledges its position as the foundation of all progress. Many of the project sites that Soma operates in are located in socially backward areas where people do not have access to basic education. The company helps educate residents around its project sites. It helps construct schools and colleges to provide educational access. It creates opportunities for bright children to realize their

potential. Besides, Soma is an active participant in several charitable organizations including Maganti Foundation, Naandi Foundation and Swarna Bharati Trust. MF is partnering with Swarna Bharati trust in starting a technical training institute to impart technical skills. Health

Constructed and donated a spacious building to Andhra the Mahila sabha hospital- Hyderabad for physically challenged and mentally retarded people.

Blood Donation Camp A blood donation camp organized by Maganti Foundation on 18th July at RDT, Mamillapalli, Ananthapur district by staff of our C-14 site.

Rural development

Contributed for construction of roads, shelters etc under JanmaBhoomi scheme of the government. Contributed for construction of individual toilets in 164 houses under rural sanitation scheme. Established a technical institute at Nellore, A.P in collaboration with Swarna Bharati Trust to impart technical skills to the rural poor.

The family home of the CMD, Mr. Rajendra Prasad, in their native village Tamirisa now houses a village panchayat, ayurvedic hospital and library.

Check Dam across Budipaleru Soma has made it a matter of policy to employ environmentally conscious methods in all its projects and ensure that the ecological balance is not disturbed.

Human Resource Management - Nature, Scope, Objectives And Function

Human resources may be defined as the total knowledge, skills, creative abilities, talents and aptitudes of an organization's workforce, as well as the values, attitudes, approaches and beliefs of the individuals involved in the affairs of the organization. It is the sum total or aggregate of inherent abilities, acquired knowledge and skills represented by the talents and aptitudes of the persons employed in the organization.

The human resources are multidimensional in nature. From the national point of view, human resources may be defined as the knowledge, skills, creative abilities, talents and aptitudes obtained in the population; whereas from the viewpoint of the individual enterprise, they represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitudes of its employees.

Human Resource Management: Evolution The early part of the century saw a concern for improved efficiency through careful design of work. During the middle part of the century emphasis shifted to the employee's productivity. Recent decades have focused on increased concern for the quality of working life, total quality management and worker's participation in management. These three phases may be termed as welfare, development and empowerment.

Human Resource Management: Nature Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. The various features of HRM include: ‡ It is pervasive in nature as it is present in all enterprises.

‡ Its focus is on results rather than on rules. ‡ It tries to help employees develop their potential fully. ‡ It encourages employees to give their best to the organization. ‡ It is all about people at work, both as individuals and groups. ‡ It tries to put people on assigned jobs in order to produce good results. ‡ It helps an organization meet its goals in the future by providing for competent and wellmotivated employees. ‡ It tries to build and maintain cordial relations between people working at various levels in the organization. ‡ It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology, economics, etc.

Human Resource Management: Scope The scope of HRM is very wide: 1. Personnel aspect-This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity etc. 2. Welfare aspect-It deals with working conditions and amenities such as canteens, creches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc. 3. Industrial relations aspect-This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

Human Resource Management: Beliefs The Human Resource Management philosophy is based on the following beliefs: ‡ Human resource is the most important asset in the organization and can be developed and increased to an unlimited extent. ‡ A healthy climate with values of openness, enthusiasm, trust, mutuality and collaboration is essential for developing human resource. ‡ HRM can be planned and monitored in ways that are beneficial both to the individuals and the organization.

‡ Employees feel committed to their work and the organization, if the organization perpetuates a feeling of belongingness. ‡ Employees feel highly motivated if the organization provides for satisfaction of their basic and higher level needs. ‡ Employee commitment is increased with the opportunity to dis¬cover and use one's capabilities and potential in one's work. ‡ It is every manager's responsibility to ensure the development and utilisation of the capabilities of subordinates. Human Resource Management: Objectives ‡ To help the organization reach its goals. ‡ To ensure effective utilization and maximum development of human resources. ‡ To ensure respect for human beings. To identify and satisfy the needs of individuals. ‡ To ensure reconciliation of individual goals with those of the organization. ‡ To achieve and maintain high morale among employees. ‡ To provide the organization with well-trained and well-motivated employees. ‡ To increase to the fullest the employee's job satisfaction and self-actualization. ‡ To develop and maintain a quality of work life. ‡ To be ethically and socially responsive to the needs of society. ‡ To develop overall personality of each employee in its multidimensional aspect. ‡ To enhance employee's capabilities to perform the present job. ‡ To equip the employees with precision and clarity in trans¬action of business. ‡ To inculcate the sense of team spirit, team work and inter-team collaboration. Human Resource Management: Functions In order to achieve the above objectives, Human Resource Management undertakes the following activities: 1. Human resource or manpower planning. 2. Recruitment, selection and placement of personnel. 3. Training and development of employees. 4. Appraisal of performance of employees.

5. Taking corrective steps such as transfer from one job to another. 6. Remuneration of employees. 7. Social security and welfare of employees. 8. Setting general and specific management policy for organizational relationship. 9. Collective bargaining, contract negotiation and grievance handling. 10. Staffing the organization. 11. Aiding in the self-development of employees at all levels. 12. Developing and maintaining motivation for workers by providing incentives. 13. Reviewing and auditing man¬power management in the organization 14. Potential Appraisal. Feedback Counseling. 15. Role Analysis for job occupants. 16. Job Rotation. 17. Quality Circle, Organization development and Quality of Working Life.

Human Resource Management: Major Influencing Factors In the 21st century HRM will be influenced by following factors, which will work as various issues affecting its strategy: ‡ Size of the workforce. ‡ Rising employees' expectations ‡ Drastic changes in the technology as well as Life-style changes. ‡ Composition of workforce. New skills required. ‡ Environmental challenges. ‡ Lean and mean organizations. ‡ Impact of new economic policy. Political ideology of the Govern¬ment. ‡ Downsizing and rightsizing of the organizations. ‡ Culture prevailing in the organization etc.

Human Resource Management: Futuristic Vision On the basis of the various issues and challenges the following suggestions will be of much help to the philosophy of HRM with regard to its futuristic vision: 1. There should be a properly defined recruitment policy in the organization that should give its focus on professional aspect and merit based selection. 2. In every decision-making process there should be given proper weightage to the aspect that employees are involved wherever possible. It will ultimately lead to sense of team spirit, team-work and inter-team collaboration. 3. Opportunity and comprehensive framework should be provided for full expression of employees' talents and manifest potentialities. 4. Networking skills of the organizations should be developed internally and externally as well as horizontally and vertically. 5. For performance appraisal of the employee¶s emphasis should be given to 360 degree feedback which is based on the review by superiors, peers, subordinates as well as self review. 6. 360 degree feedback will further lead to increased focus on customer services, creating of highly involved workforce, decreased hierarchies, avoiding discrimination and biases and identifying performance threshold. 7. More emphasis should be given to Total Quality Management. TQM will cover all employees at all levels; it will conform to customer's needs and expectations; it will ensure effective utilization of resources and will lead towards continuous improvement in all spheres and activities of the organization. 8. There should be focus on job rotation so that vision and knowledge of the employees are broadened as well as potentialities of the employees are increased for future job prospects. 9. For proper utilization of manpower in the organization the concept of six sigma of improving productivity should be intermingled in the HRM strategy. 10. The capacities of the employees should be assessed through potential appraisal for performing new roles and responsibilities. It should not be confined to organizational aspects only but the environmental changes of political, economic and social considerations should also be taken into account. 11. The career of the employees should be planned in such a way that individualizing process and socializing process come together for fusion process and career planning should constitute the part of human resource planning.

Roles And Functions Of The Human Resource Department Introduction

The Human Resource Department deals with management of people within the organisation. There are a number of responsibilities that come with this title. First of all, the Department is responsible for hiring members of staff; this will involve attracting employees, keeping them in their positions and ensuring that they perform to expectation. Besides, the Human Resource Department also clarifies and sets day to day goals for the organisation. It is responsible for organisation of people in the entire Company and plans for future ventures and objectives involving people in the Company. (Handy, 1999)

Research has shown that the human aspect of resources within an organisation contributes approximately eighty percent of the organisation¶s value. This implies that if people are not managed properly, the organisation faces a serious chance of falling apart. The Human Resource Department¶s main objective is to bring out the best in their employees and thus contribute to the success of the Company.

These roles come with certain positive and negative aspects. However, the negative aspects can be minimised by improvements to their roles and functions. These issues shall be examined in detail in the subsequent sections of the essay with reference to case examples of businesses in current operation.

Positive aspects of Roles and Functions of the Human Resource Department

Recruitment of Employees

This is one of the most fundamental roles of the HR department. This is because this function ensures that the Company under consideration selects the most skilful and competent person from a sea of applicants at that time. This function involves evaluation of ability and competency of potential employees in relation to what the Company needs. This role falls under the Staffing role of management. If this function is performed well, then the organisation will increase value consequently being on the right pathway to achieve its organisational and departmental goals and objectives. (Hyde, 2004)

Effective recruitment can be done through a number of ways. First of all the Company can conduct educational and psychological measurements. This task will involve assessment of abilities, skills and character evaluation of applicants. Through psychometric evaluation, the Company can ensure that employees have the right attitude necessary to fit into the organisation. Another method Companies use to recruit members of staff is through interviews. Here, the Human Resource Department can ask applicants questions that evaluate their decision making abilities and how they would deal with certain situations if presented with them. The Department can also employ the use of written interviews where applicants answer questions addressing key issues in the organisation. Through these channels, the Department contributes towards organisational performance.

An example of a Company that performs this role well is Tesco Ireland. The Company notifies the public about vacancies. It then posts a questionnaire online and interested parties fill it at that time. This is then evaluated and those who fall within their minimum requirements are invited for an interview. In the interview, applicants are asked a number of questions and those who did extremely well are further analysed and retained. Those who did moderately well are not immediately eliminated; instead, their interview questions are kept on file then these are reviewed after six months. By so doing, the Tesco Ireland makes sure that its employees are highly capable and that they will enrich the organisation. (Hyde, 2004) Improvement of Compensation Packages One of the major functions of the HR department is to motivate employees. This can be done through rewards especially for those who have done well. The HR department needs to evaluate performance of employees and those who have exceeded expectations should be compensated for their actions. Research has shown that rewarding employees for good performance is the number one incentive for keeping up this trend. These compensation packages can come in the following ways;

- Holiday Offers - End of Year Bonuses - Equities - Awards - Salary Increments - Provision of Flexible Working Hours - Straight forward Promotion Schemes and Career Developments

If the HR department includes these incentives, then it will ensure that employees are satisfied with the Company. It will also contribute towards good staff retention rates. This is especially crucial in increasing stability within the organisation. It also makes employees identify with the firm and instils a sense of loyalty. (Handy, 1999) Planning in the Organisation

The Human Resource Department is placed with the responsibility of ensuring that it plans adequately for all the organisation¶s future engagements that will involve people. One important aspect of this is planning for employees in the organisation. It is important that the organisation ensures that all the employees under its wing are just enough to increase value to the organisation. The Department must ensure that staff members are not too many because if they exceed this amount, then the organisation stands too lose. It must plan adequately to ensure that staff members are not too few either, otherwise they will be overworking those who are already in place. Consequently, there will be poor motivation resulting from fatigue. The HR department is also bestowed with the responsibility of planning future organisational goal in relation to people or clarifying these same goals to staff members. This function of the department ensures that people in the organisation have a general direction which they are working towards. Organisations that have a clear direction are always more effective; those members of staff will be more result oriented rather than just working for the sake of it. The Department is also responsible for setting day to day objectives necessary for streamlining activities within the organisation and thus ensuring that work is not just done haphazardly. (Hyde, 2004) Negative Aspects of Functions and Roles of the Human Resource Department There are a number of problems that arise as the department goes about its activities Problems in Recruitment

The department may sometimes be unable to adequately coordinate and incorporate all the employees needed in the Company¶s operations. One such example is the NHS. In the year 2004, the organisation was found to be wanting in its human resource department¶s functions. The Company was recruiting a large proportion of its employees; 40% from Asian and African countries. This means that the organisation was draining medical personnel from those needy countries and using them for themselves. (Katherine, 2002)

Such a practice showed that the HR department had exercised bad judgement in its staffing function. Instead, it could have used these foreign nurses as temporary measure and put in

place a strategy to train local nurses such that it could stop depending on those poor countries for supply of nurses.

Problems in Remuneration

In the process of trying to motivate members of staff to perform better, the Human Resource may make deals that eventually cause problems. A case in point is the Home Depot. This Company has an employee Compensation policy that requires that one should be rewarded for the time they have served the Company.

The Home Depot Company offers an end of year bonus, basic salary and grant on stock shares as an incentive for some of its employees The CEO of the Company Robert Nardelli lost his job in the year 2007. This was because the company has experienced a lot of losses under his leadership; its shares fell by eight percent in the stock exchange and he deserved to leave the Company. However, because the Human Resource Department had put in place a policy that requires all members of staff to be given the incentive mentioned above, he left with a lot of money. It was reported that he had with him about two hundred and ten million dollars. The Company had no way out of this payment because HR had already passed that policy and they were bound by the law. This goes to show that sometimes policies made by the HR department do not benefit the Company especially if the parties involved are considered as losses to the Company. (Michael, 2007)

Problems in Planning

Sometimes the HR Department can employ people who may not contribute towards organisational principles. A classic example is the Arthur Andersen Company that fell apart in the year 2002. This was an American Company that dealt with audits. It was initially very successful in its operations prior to that fateful year. But in the latter years of its operations, the Company was involved in two accounting scandals that tarnished its name and subsequently caused failure.

The Company failed to plan well for the kind of employees it recruited. This was witnessed when one of its employees in the Legal Department called Nancy Temple was fined in the Court of law for non adherence to accounting laws. This problem could have been prevented if the HR department had evaluated this employee before hiring her and also evaluation should have been done during her performance. If HR had been extremely critical, then they

would have realised that the employee did not adhere to Company principles and would therefore have terminated her employment.

Beside this, the Arthur Andersen Human Resource department also failed in its communication function to employees. The department should have ensured that they constantly communicate to members of staff about the goals and objectives of the Company on a day to day basis. This would have made them very clear in the minds of employees and would have prevented the downfall of the Company. Strategies to Improve Human Resource Department¶s Value to the Organisation Training and Internships

It is not necessarily a guarantee that a candidate who did well in the recruitment exercise is the best in performing an organisation¶s functions. New employees need orientation into the Company¶s functions and can also improve some inefficiency that these new employees may have in relation to their skills. This is the purpose of placing them on internships. (Norbert, 1967)

Training is also essential for members of staff who have been working for the organisation for a long time. This is especially so in the wake of technological advancements, legal changes and changes in service delivery. It is important for an Organisation to keep up with industry trends otherwise it faces the danger of becoming obsolete; especially in the background of increasing competition.

Training need not be restricted to improvement of skills; it can also involve improvement of attitudes. This is normally characterised by attendance of workshops and other forms of talks. Training also increases motivation of employees and gives them that extra boost of energy needed to get them through tough times in their jobs. All the above tasks are placed under the Department of Human Resource because it is the one that will asses when training is needed, who needs the training, where and by whom. This aspect is a sure to improve value of the HR Department in the organisation.

An example of a company that adheres to this principle is Marks and Spencer retail chain outlet. The Company offers training for twelve moths. Here new employees are taught all that is necessary to meet organisational goals and objectives then they can start work when they are ready to do so. (Norbert, 1967)

Making Better Use of Time

The Human Resource is conferred with the responsibility of ensuring that all members of staff perform to their best ability. It could improve this area by facilitating better use of time in all departments within the organisation. Time is one of the most crucial yet intangible assets of the Company. The proper use of this resource could maximise production and achievement of organisational goals. (Harold, 2003)

The Department can do this by planning activities to be carried out in the organisation. It can make schedules for the various activities that have to be done in the organisation and thus facilitate better flow of information. In addition to this, the Company can also ensure that all members of staff are held accountable for not performing a certain task. This is especially in regard to maintenance of the schedules. In so doing, human the Human Resource Department will be ensuring that employees do not simply report to work and that the time spent at work is directly proportional to output.

Improving Organisational Culture

The Human Resource Department can try to improve organisational culture through a three step procedure.

The first step of the process is observation. In this step HR finds out what makes ups or what the company¶s culture is like. HR should also be very intense on the organisational needs. Here, HR should realise that personal fulfilment works better and therefore should try to ensure that the change is relevant to every staff member. In this stage, HR should try to explain to all staff members or stakeholder the advantage of transforming the culture in the organisation. This should be made clear so that all can see the advantages at the individual level and not simply at the organizational level. (Erica, 2006)

Then HR should try to eliminate all inhibitions in staff member¶s minds. It is possible that some may claim that they tried one or two strategies before and it did not succeed. This are what are called µcries of despair¶ and HR should try its best to explain to staff members the need of changing the culture of the organisation.

The next step is the analysis of various aspects. Here, there is collection of data needed in making certain that culture changes. This stage involves checking out the success features or the factors that can facilitate its success. There should be calibration of data collected. Staff members should be made to understand that there are no perfect situations for implementation of changes. The analysis should involve assessing whether the information is sensible or not. Whether data gathered will be helpful or not and if it is too little or too much. Staff members should be requested for data that will help change the culture.

Of course when trying to bring in change HR Department should have perceived benefits, a deadline for execution and also the realised gains in relation to the change in culture. In this step, there should be reality checks which should be done often. There should also be continuous integration. Through this scheme HR Department should be able to change the culture in the organisation and add value to it. (Harold, 2003)


The Human Resource Management team¶s main function is to manage people. There are positive and negative aspects of this function; first of all, the HR department enriches the organisation through recruitment procedures and an example an effective HR team in this area is Tesco Ireland. HR department also ensures that members of staff follow a general direction by frequently clarifying and reminding them of the organisation¶s goals. Besides this, they are also responsible for organising incentives or compensation packages to motivate employees. All these functions contribute towards organisational effectiveness. However, there are some negative aspects of HR; it has to bear the burden of blame if an employee performs poorly like the Arthur Andersen Company. Besides this, some policies made by the department may be detrimental to the Company like in the Home Depot Company¶s case. Improvements to their role can be done by arranging training for staff members, organising activities for the organisation and changing organisational culture.


Human resources are the most significant and the only active factor of production. All the other factors of production are inactive and are dependent For their utilisation on the human resources. For the development of an organisation. the prerequisite is to develop the human resources. Human resource development will involve upgrading the skills, extending the knowledge Competencies of human resources. The concept of human resource development is comparatively of recent origin, although, the development of human beings in one form or the other has been in existence even since the beginning of civilization. [n the later part of the 20th century, before HRD emerged as a planned and systematic function, training was the only method used to develop the human resources. But HRD is an integrated and interdisciplinary approach to the development of human resources in the organisation.

Concept and Definition of HRD The main aim of HRD is to bring about an all round development of the people in the organisation. So that they can contribute their best to the organisation, society and nation. HRD is a system and process involving organised series of learning activities designed to produce behavioural changes in human beings in such a way that they acquire desired level of competence for present or future role. In simple words HRD plays the role of the match maker. It maintains the organisational need for the human resources with the individual needs for career growth and development. According to C.Leon Magginson, "HRD may be defined as development of people by providing the right environment where each individual may grow to his fullest potentialities. Human resources are viewed as total knowledge, skills, creative abilities, talents and aptitudes of an organization's workforce as well as values, attitudes and beliefs of individuals involved."

According to Ishwar Dayal, HRD involves: (a) Ways to better adjust the individual to his job and (b)

the environment.

The greatest involvement of an employee in various aspects of his work and


On the basis of the above mentioned definitions, the following features of HRD may be identified:

1. Planned and Systematic approach. HRD is a planned and systematic approach to the development of people. HRD is a system consisting of several interdependent and interrelated subsystems e.g. performance appraisal, training, job enrichment etc. While designing a HRD system, enough attention should be paid to building linkages between the various sub systems. 2. Continuous process. HRD is a continuous and dynamic process which believes in the need for continuous development of personnel to face the innumerable challenges in the functioning of an organisation. It is based on the belief that there is no end to the development of an individual and the learning process can continue throughout the life. 3. Inter Disciplinary Approach. HRD is an inter disciplinary approach. It involves collection of ideas for many sciences. It makes use of principles and concepts of behavioural sciences for the development of people. It uses knowledge drawn from psychology, sociology, anthropology, economics and political science for planning and implementing various programmes for the development of individuals, groups and the organisation. 4. Both Micro and Macro Aspects. HRD has both micro and macro aspects. At the macro level, HRD is described as the core of all development activities in the sense of improvement of quality of life of people of a nation. At the micro level, HRD involves the improvement in the quality of managers and workers so as to achieve greater quality and higher levels of productivity

OBJECTIVES OFHRD The main objectives of HRD are as follows: (i) To provide a comprehensive framework for the overall development of people in the organisation.

(ii) To develop the constructive mind and overall personality of each and every person in the organisation. (iii) To develop the capabilities of each individual in relation to his present and expected future roles. (iv) To develop and maintain high levels of motivation of employees.

(v) To develop dyadic relationship between each employee and his supervisor. (vi) To develop the sense of team spirit, team work and inter team collaboration in the organisation. (vii) To develop the overall health and self renewing capabilities of the total organisation.

(viii) To generate systematic information about human resources for the purposes of manpower planning, placement, succession planning and the like .

ESSENTIALS OFHRD While introducing.HRD in any organisation the following requirements I must be fulfilled: 1.An urge and desire on the part of human resources in the organisation I to find better methods of work. 2. Requisite skill, attitudes and ability in the persons engaged in HRD 3. Proper rapport between the HRD team/department and the key person in the organisation 5. Involvement of the employees of the organisation to get a lot of unwritten information for understanding the dynamics of the Organisation for developing a HRD programme. 6. The need for suggesting the introduction of only such indigenous methods which can be implemented by the HRD section without much cost and resistance. Besides, the need for technical consideration may also be kept in mind. 7. Strengthening of human resource information system to keep continuous track of every employee and use performance appraisal, training etc. to inject change in the desired direction. 8. Members of HRD team must possess a pleasant personality, common sense, imagination, enthusiasm, Objectivity and the sense of Huron required to induce favourable changes. It has been rightly said that i: is easier to change the mountains than to change the mind of the people. 9. The HRD section must make all the employees in the organisation understand the implications of new methods through seminars, lectures role playing or any other method to thwart the potential fears among the employees of the proposed changes. 10. HRD to be successful needs revolution in the total concept of management and not merely sporadic and piece meal attempts. The HRD team/section must possess technical competence, missionary zeal, the capacity to motivate and communicate with the employees, cultural adaptability, the capacity to organise and manage, the capacity to inspire confidence in employees and finally patience and dignity If all the above essentials are properly understood and implemented, HRD would develop both in theory and practice and this in turn would lead to efficiency and economy in management.

HRDAT MACRO AND LEVEL HRD aims at helping people to acquire competencies required to perform all their functions effectively and make their organisations dowel. Thus we can say that it is a people oriented once. Now the question arises whether This concept applies to larger and national context or to the small institutional context? As things stand now, HRD applies to both institutional (micro) as- well as national (macro) issues. It is useful both at micro and macro levels in developing the newer capabilities in people so as to enable them to tackle both present and future challenges while realizing organizational goals. The application of HRD at both micro and macro level is discussed as below: (i) Macro Level. HRD's contribution at national level has not gained much popularity as yet At macro level, HRD is concerned with the development of people for a nation's well being. While calculating the national income and economic growth, the prospective HRD concept examines the individual's potentialities their attitude, aspirations, skills, knowledge etc. and establishes a concrete base for economic planning. (ii) Micro Level. At micro level, HRD is concerned with organization's manpower planning, selection, training, performance appraisal, development, potential appraisal, compensation, organizational development etc. HRD is well received by companies' management as they have realized Its importance and foresee its future contribution for the individual and organizational development.

DISTINCTION BETWEEN PERSONNEL FUNCTION AND HRD The discipline of HRD was developed because the personnel management function failed to meet the new challenges of the 20th century, Some organizations have merle redesigned their personnel departments as HRD departments. There are some fundamental differences between personnel function and HRD. The main differences are as follows: Points of distinction STATUS Personal function HRD

Independant function with dependant Integrated system sub functions consisting of independent sub system


Maintenance oriented aims to Development oriented improve the efficiency of people and Aims to administration Develop the organizations as a whole and its culture


Reactive function responding to Proactive function trying events as and when they take place. to anticipate and get ready with appropriate responses

INSTRUMENTS OR MECHANISM OFHRD As far as the instruments or sub-systems of HRD are concerned, various thinkers and professionals have given divergent views and designed the different ways. Though there is diversity among the views, but there is unanimity of opinion among various HRD practitioners regarding some of the instruments. A well designed HRD programme should have the following sub-systems. Performance Appraisal. Performance appmisa1 is the process to assessing the perfonnance and progress of an employee or of a group of Employees on a given job and his potential for future development. It consists of a formal procedure used in the organizations to evaluate personalities, contributions and potentials of employees. The objective of performance appraisal is to determine the present state of efficiency of an employee in order to establish

the actual need for training. The process of performance appraisal consists of setting standards for performance, communicating the standards to the employees, measuring the performance and comparing the actual performance with the standards set. Potential Appraisal. Potential appraisal is used for providing necessary data which helps in preparing career plans for individuals. This technique aims at development of latent abilities of individuals. This is a process of developing in the employees, capacities to perform new roles and responsibilities. This need is generally, felt when the organisation is diversifying or introducing changes. The major objective of potential appraisal is to ensure a good match between the employees and the job. Counselling and Monitoring. Counselling is a two way process in which a counsellor, usually a superior provides advice and assistance to his subordinates. Performance counselling means the help given by a superior to his subordinate in improving the latter's performance. It is in fact, a process of guiding a subordinate to adjust better with his work .The main purpose of counselling and monitoring is to help the employees scientifically to be sensitised to their potential, their strengths and weaknesses. It also helps them in sharing and discussing their tensions, conflicts, concerns and problems so that the adverse impact on productivity and well being could be thwarted

Training. Training is an investment in the HRD process which gives dividends both in short and long run. The ultimate goal of training is improving competence of the employees for raising the standards of organisational performance. An organisation can do better if it invests in technology development and improvement of human systems, training is crucial for both of these. Lack of training may result in poor work performance, low production, demonization and customer dissatisfaction. But it must be ensured by the HRD section that training is translated into practice. If one acquires knowledge but does not practise it, it will be useless. Building Morale and Motivation among the Employees of an Organisation. The organisation must give constant evidence to the belief that human resources in the organisation are the key to development. This requires proper motivation of the employees which provides a base for the management functions of planning and organising. It has been, generally, noticed that the performance of the personnel either as individuals or members of a group is less as compared to their capabilities in terms of skills, abilities and capacities. A climate of creativity must be developed and maintained by the management so that the performance levels come up to the mark and growth becomes a way of life in the organisation. Development of Team work. The HRD section must try to develop a habit of team work among the human resources. Team work requires among other things, that the members have an image of their own team mates, which Coincides as precisely as possible with reality. In addition, each member much has a self image which adjusts to reality as much as possible and thus, coincides with the image the other members have of him. Creating Effective HRD Environment. HRD climate is one of the Pre-requisites of effective HRD process implementation. It is an integral part 0: organisational climate. HRD climate creates interest and motivation among the employees to stay long in an organisation.

It creates growth opportunities are recognition. Its success is vitally based on top management's confidence in employees which will propel them to take initiative and meet challenging responsibilities for the organisation. Employee's dignities and individuality is boozed when an effective HRD climate is created. A dynamic HRD climate can be conducive to development of both the individual as well as the organisation. This is possible through hl.UTIane treatment of employees by the employers and helping develop right attitude among the employees. The HRD climate affects informal as well as social relations. Therefore, it performs a descriptive rather than an evaluative role. Developing Emotional Intelligence. Human resources are considered to be the greatest assets in any organisation. It is, thus essential to understand the role of emotional intelligence in enhancing the productivity of the human resources to achieve the overall success. Emotions of the employees play an important role in determining their productivity and output. HRD, should thus focus on enhancing the emotional intelligence of the organisation. Quality Circle. A quality circle is a small group of employees doing similar or related work who meet regularly to identify, analyse and solve product related problems and to improve general relations. The quality circles are generally, autonomous units, usually led by a supervisor or a senior worker and organised as work units. The workers who have a shared area of responsibility, meet periodically to discuss, analyse and propose solutions to ongoing problems. Quality of Working Life. The quality of the workers' conditions both working and living, influences the workers' satisfaction and job satisfaction to a large extent. Inadequate working and living conditions produce adverse mental and physical effect on the employees, which leads to decline tin their efficiency and ultimately in the overall productivity of the organisation IMPLEMENT ATIONOF HRD Implementation of HRD involves the following aspects of management 1. Commitment of the Management and Staff to HRD can be successfully implemented only when personnel in an organisation, both at the top and lower levels, have understood the implications of HRD and desire its introduction for better performance. Such understanding on the part of management and staff would result in commitment. If the top level management has faith in its subordinates, it would generate sufficient energy and enthusiasm to get the cooperation of the entire staff in an organisation. Staff members would try to make use of the management techniques to promote efficiency in such congenial environment. Such a situation would generate a chain effect of optimum performance and creativity. 2. Specific Action Plan and Strategy. For the implementation of HRD, a time bound plan should be developed by the management. Techniques like PERT/CPM may be used in this context. The strategy should be designed in tens of goals and objectives. 3. Building Morale and Motivation Among the Members of an Organisation. Management of an organisation must have belief that .personnel in an organisation are the

key to development. This requires proper motivation of the employees which provides a base for the management functions of planning and organising. A climate of creativity must be developed and maintained by the management so that the performance levels know no bounds and growth becomes a way of life. 4. Counselling and Mentoring. The management must provide proper counselling and mentoring to its employees. The main purposes of this exercise are to help the employees scientifically, to be sensitised to their potential, their strengths and weaknesses. It also helps them in sharing and discussing their tensions, conflicts, concerns and problems so that the adverse impact on productivity and well being could be thwarted. 5. Developing Team Work. Developing team work is another essential for the implementation of HRD. Team work requires among other things, that the members have an image of their own team mates, which coincides as precisely. 6. Creating Effective HRD Climate. Organisations must create congenial environment, wherein personnel can contribute their maximum potential According to T.V. Rao "HRD climate is one of the prerequisites of effective HRD process implementation. It is an integral part of organisational climate HRD climate creates interest and motivation among the employees to stay long in an organisation. It creates growth opportunities and recognition. Its success is vitally based on top management's confidence in employees which will propel them to take initiative and meet challenging responsibilities for the organisation Employees' dignity and individuality is boosted when an effective HRD climate is created. A dynamic HRD climate can be conducive to development of both the individual as well as the organisation. The HRD climate affects informal as well as social relations. Therefore, it performs a descriptive role rather than an evaluative role. 7. Developing Emotional Intelligence. In organisations, human resources are considered as the greatest assets. HRD should pay more attention to the development of their emotional intelligence. A large number of surveys have shown that emotions of the employees play a significant role in determining their output. Actions that spring from the emotional mind carry a particularly strong sense of certainty that cannot be justified or explained by the rational mind. Therefore, HRD should focus on enhancing the emotional intelligence of the organisation. 8. Imparting Need Based and On Going Training. The ultimate goal of training is improving work ethics of employees for raising the standards of organisational performance. Training is an investment in the HRD process which gives dividends both in short run and long run. An organisation can do better if it invests in technology development and improvement of human systems Training is essential for both of these. Lack of training may prove to be costly, resulting in poor work performance, low production, demonization and customer dissatisfaction. However, the organisation must ensure that the training is translated into practice. 9. Emphasis on Excellence. HRD must lay emphasis on excellence Excellence is a state of mind which prepares the employees to perform their duties with dedication. It also creates self reliance and helps them to have a vision and an urge to do better and better. They should also possess the knowledge and understanding necessary to fulfil this urge and desire .

10.Replacing Rigidity with Flexibility. HRD machinery must be flexible and be able to respond quickly and effectively to a changing environment, as rigid and inflexible systems will not be able to deal with changing situations. The personnel and organisational capabilities should be developed to provide useful forecasts for both the controllable and uncontrollable variables and to devise methods to anticipate environmental changes.

HRDIN INDIAN INDUSTRY In India. a professional outlook to HRD began only in 1970s, even though the HRD processes might have existed to some extent in India earlier also. LARSEN and TOUBRO was the first company to design and implement an integrated HRD system. Later on this professional outlook to HRD spread to other organisations. The first workshop on HRD was held in 1979. The Xavier Labour Relations Institute (XLRl) was the first academic institution to set up a fully fledged centre for HRD. A National HRD Network has also been established in 1985. Looking at the pay offs from HRD system, several leading companies have gone ahead in creating separate HRD departments to improve employer employee relations. Some of these organisations are as follows: Private Sector Companies Larsen & Toubro Asian Paints Ashok Leyland Crompton Greaves Voltas Public Sector Companies Bharat Heavy Electricals Indian Oil Corporation Steel Authority of India State Bank of Baroda In 1982, Prof. T.V. Rao conducted a survey of HRD practices in Indian industries. Only 17 out of 53 companies had formal policy focussing on HRD. All in all HRD appeared to be becoming a significant aspect of work life in many organisations. The main conclusions of Dr. Rao's survey were as follows: Another survey was carried out by Dr. T.V. Rao to judge HRD climate in Indian organisations. The survey revealed that the general climate was not very conducive to HRD due to general indifference of employees to their own development. The top management in most organisations were not making sufficient efforts to improve the quality of work life. With increasing competition, due to globalisation, companies now-a-days have realise the importance of introducing systematic HR practices in a big way. A new concept has been introduced-New People Management (NPM). Business Today (Jan. 1996) lays down the following objectives of NPM: (i) Corporate goals-must factor in individual career growth (ii) Company profits must be linked to personal rewards (iii) Organisational learning must involve employee training. (iv) Job responsibilities development must facilitate personal

(v) Business strategies must consider human resource issues. In order to meet the objectives of NPM, organisations must have people with requisite knowledge and skills. Proper organisational culture should be created for individual excellence. People should be prepared for future challenges, roles and responsibilities through continuous learning efforts. Proper rewards should be given to those employees only who achieve preset targets. Those who do not add any value to the organisation should be shown the door. At the macro level, increasing emphasis is being placed on the development of human resources. A separate ministry of HRD has been created in the central government. Attempts are being made to develop appropriate linkages between education, public health, adult literacy and other social programmes so as to ensure the overall development of people in the country. Scientific and technological advances are making it all the more important to develop human resources. Physical and natural resources are wasteful if competent human resources are not available. Prof. T.V. Rao has summed up the current-thinking in the field as follows: "We must Wider stand that corporations are not in the business of HRD. They are in their own business. But HRD is an important tool which unfortunately is being used in a limited sense. The corporate vision has not been attached to it. Actually human resources must become the business of everyone in the organisation." Some new trends have been taking place in the field of HRD in the recent years. Some of the strategies of HRD are explained as follows: Total Quality Management (TQM) TQM is a dynamic concept like HRD. TQM aims at continuous improvement in the quality of is products, which calls for the improvement in the quality of work of employees through training and Y development Total quality management can succeed only if it has the support of total quality people. '~ TQM cannot work without TQL because processes cannot work till people work. According to T.N. ,f Chbabra, "The essence of TQM is the creation of ac organisational system that fosters cooperation g between management and worker? and facilities learning to implement 'total quality'. This in turn would add to continuous improvement of processes, products and services and to employee fulfilment both of which are critical to customer satisfaction and ultimately survival and growth of the firm."

The Total Quality Human Resource Management approach involves: (0 Shared responsibility, commitment and rewards (philosophy) (i) increased quality, productivity, customer satisfaction, employee satisfaction and loyalty (Business objectives)

(ii) Total quality management and continuous improvement at and across every level (Quality Objectives) (iv) Open books, share board information on profits, productivity, quality, costs, capital spending plans (Business information sharing) (v) Major constituencies share holders, customers and all employees (vi) Extensive within and between levels and functions employee involvement. (vii) Quality and economic education., multiple skill training, problem solving and group process (education and training) (viii) Reward structure designed and adjusted by management employee committee, formal, early union involvement. (ix) Job security ensured by formal commitment, a key consideration in all decision Kaizen Kaizen as a Japanese word which means continuous improvement with the involvement of everybody in the organisation so as to generate value for customers. The message of Kaizen Strategy is that not a day should go without some kind of improvement being made somewhere in the organisation. It involves small improvements on ongoing basis. A Kaizen programme can be Divided into three segments:(I) Management Oriented Kaizen. This segment concentrates on the most ,strategic and logistic issues and provides the momentum to keep up progress and morale. (ii) Group Oriented Kaizen. The group oriented kaizen is a permanent approach and is represented by quality circles and other small group activities. (iii) Individual Oriented Kaizen. Individual oriented kaizen is manifested in the form of suggestions. It is a morale booster there are 5 steps in Kaizen Programme: (0) SEIRI * straighten up (ii) SEITON * Put things in order (Hi) SEISO * Clean up (iv) SEIKETSU * Personal cleanliness (v) SHITSUKE * Discipline

Kaizen practitioners view quality as an endless journey, not a final destination. They are always experimenting, measuring, adjusting and improving. Rather than naively as swing that zero defects means perfection, they search for potential and actual trouble spots for improvement of product design and processes.

Just in Time Production Just in Time (JIT) production is also called hand to mouth approach to production. JIT focuses attention on eliminating waste by purchasing or manufacturing just enough of the right items just in time. JlT attacks the problem of bloated inventories that hamper productivity and profitability. JlT approach when applied to human resources implies multifunctional workers. These workers are a key factor in designing of streamlined process. The processes are designed in such a way that each worker can handle two or more machines and move from one centre to another. Development of such workers not only decreases the number of workers and increases productivity but also increase tern work and morale among the workers. The potential benefits of JIT include quality improvement, higher productivity ,lower cost, less work in process, less inventory of raw materials, finished goods, saved space, increased team work, higher worker's morale and motivation. However, implementation of JlT will require considerable cooperation between the management and the workers. Empowerment This strategy is based on the philosophy that more power you give away to the lower levels the more you have in terms of productivity and performance. This technique is seen by the traditional authoritarian managers as a threat to their authority. But nowadays the issue is not whether to give empowerment to workers or not, rather the issue is how empowerment should take place. Empowerment can take place when the employees are adequately trained, provided with all relevant information and the best possible tools, fully involved in key decisions and are fully rewarded for results. Benchmarking According to T.N. Chhabra, "learning from the experiences and best practices of others is essential to survive and grow in the turbulent market environment. Dynamic companies are constantly monitoring information from the external environment to compare their process, products and services with the best industry practices known as bench marking." Bench marking is the practice of identifying, studying and building upon best practices in the industry or in the world. Benchmarking help establish quality targets which lead 'to a competitive advantage. The Benchmarkers guide includes the following points: (i) Send out the people who will have to make the changes. It won't help if senior executives or consultants do the benchmarking, then come back and tell the concerned workers of a process what to do

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