1. HRD IN PUBLIC SECTOR
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 capable of doing so in the future
assignments too.
Evolution of HRD
- Sometimes differences are observed because provinces or departments are at different places
on the evolutionary path of a more responsive and effective HRD delivery structure. Ten years
ago, HRD in the Public Sector was generally perceived to be training, and most HRD
professionals were located at a very low level in the organizational hierarchy of HR
Directorates.
Expectations of them were generally low, many were not formally qualified in the field, and
there was little expectation that HRD could indeed enhance organizational performance.
Training was undertaken for the sake of training, and a perception that training would ensure
the desired performance outcomes in the organization was not generally held, and was not
perceived as a priority.
- This has slowly changed over time. There are many factors which have contributed to
reshaping HRD into a more dynamic and critical component of organizational development and
performance. These factors are illustrated in the following Figure: Leading among them is a
more demanding set of policies, and a legislative framework to govern HRD practice.

2. -This framework has had a marked effect on practice in HRD – the HRD function slowly became
more prominent, and responsibilities and expectations of HRD staff were significantly
expanded. The HRD function had to become better planned and accountable because of the
legal provision of more resources for skills development, and, as a result, it emerged as more
central to organizational development and performance. Skills development legislation also
brought in new requirements for planning and reporting.
-But HRD was not the only area in which the new policy and legislative framework sought to
build a more effective and responsive Public Sector. Significant changes took place in literally
every aspect of the Public Sector establishment. There was a mass transformation from the old
to the new, and a total restructuring of public policies and processes in line with new
constitutional principles, and in response to the growing needs of people to be served.
- In all of this change there was a sense of urgency. There was a natural process of
organizations “finding their way”, of things falling apart before they re-crystallize and reorder
themselves to function more effectively. In this process of evolution, there was a natural
instability that occurred, with all the consequences. Among the consequences were:
Instability;
Uncertainty and demotivation;
Pockets of excellence and isolated points of regression;
Fragmentation and competition for priority;
Frequently changing organizational structures; and

3. Instability in the leadership cadre, among others.
While some organizations and their HRD functions have moved from this phase into a phase of
greater stability, other provinces and departments are still in the midst of this unstable phase.
- This process of differential development of HRD in departments has had a distinct influence
on the manner in which respondents have reacted and in the nature of the information they
provide. Participants respond from the circumstances they endure and from the perspectives
they hold as a result. The instability which accompanies progress is sometimes seen as mass
destruction and as “things falling apart”.
Major HRD mechanisms or tools
Performance Appraisal – It is used to 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 a positive environment and help 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
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 the 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 roles & responsibilities by themselves continuously. A
dynamic and growing organization needs to continually 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
helps 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.
Organization Development – A continuous effort is maintained to maintain the
development of the organization as 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.

4. 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.
Thus, HRD is a major function of human resource management (HRM). The HRD area consists of
three primary functions—training and development, organizational development, and career
development. It is critical that the HRD function recognize its value to the organization in
relation to the strategic planning process and the opportunity to provide a true competitive
advantage to the organization through its sustained and continuous development of its most
important asset—its people.
Role of Human resource Development in Public sector
- Examines the relationships and problems that exist between the theory and practice of
human resource development in the Public Sector. Aims at enhancing the capability of human
resource management systems to adapt and respond proactively to a constantly changing
environment in the 1990s and beyond.
-Equal Employment Opportunity (EEO) is continually in the spotlight of human resource (HR)
management even after over 40 years of progress. The number of EEO complaints and lawsuits
remains significant, indicating that ongoing progress is needed to decrease employment
discrimination. EEO issues in HR Management are so prevalent that it has become one of the
biggest concerns for HR professionals.
While HR professionals agree that equal employment opportunities are a legitimate focus,
there is considerable controversy over best way to achieve equality. One way is to use the
"blind to differences" approach, which argues that differences among people should be ignored
and everyone should be treated equally. The second common approach is “affirmative action”
through which employers are urged to employ people based on their race, age, gender, or
national origin. The idea is to make up for historical discrimination by giving groups who have
been affected enhanced opportunities for employment. The former approach emphasizes equal
treatment regardless of individual differences; the latter emphasizes fairness based on
individual circumstances.
-The role of the human resource development department has become even more important in
countries like ours and specially in the government organization because of the inefficiency of
our government employees and the laziness of these people ,the main reason for the Indian
government being so ineffective and having such an low productivity is the human resource of
our government, so the importance of the human resource department becomes even more
because of this very reason, generally in the private sector companies the human resource is an
very importance department and they look after all the growth, performance and other various
important aspects of the employees of the company but even though it exists in the public
sector but the functioning is not at the same level ,it’s very important that the human resource

5. department in the public sector takes following few steps for the better working of our
government employees :
1. Generally its seen that the promotion in an government department is very slow sometimes
a employees does not get promoted for even more than ten years and he stays in the same
post that makes the employee disheartened and his working efficiency decreases drastically ,so
the human resource department may see to it that this does not happen ,maybe they should
create some extra posts and divide the work of one post between two or three posts that gives
ample opportunity for an employee of getting an promotion every three or four years and the
promotion should be performance best and not on the basis of the any reservation or seniority
that will make the employees work hard and efficiently for their promotion.
2. The human resource department should also start conducting training for the government
employees of all the post and cadre regularly so that they are also equipped with all the
modern techniques and the ways, they should know how to deal with the common man
because that aspect of our government employees is really bad and brings an bad image to
government
3. Also the government employees should be taken for regular rejuvenating tours and trios
because this will keep them happy and also make them more efficient
4.The most important of all before giving the performance incentive to the government
employee the most important factor that should be considered is the public response on his
performance ,this can be found out by having an feedback form from each person visiting the
particular office and these feedback forms should be given due respect and really considered as
the most important factor giving incentives because the government employees are there for
the service of the people and if the people are not happy with him then there is no point of him
doing the job and hence and no incentives.
Key areas where gains have been made in HRD in the public sector
• Legislative framework and overall awareness of policies
• Greater access to a wider spectrum of training at all levels
• Generally more funds are available for training
• More skills and knowledgeable HRD personnel
• Comprehensive strategies which frame and guide HRD activities in organizations
• Growing alignment of strategies
• Clearer definition of responsibilities of HRD professionals
• Existence of learnerships and internships, bursaries
• Improvement in HRD budget utilization
• Coordination of HRD initiatives with the transformation and development priorities of the
nation and province
• Conceptualization of competency profiles

6. • Availability of ETDP qualifications and continuous professional development
• Identification and concern regarding scarce skills
• Growing partnerships with institutions of higher learning
• Growing HRD and HRM coordination
• Unit standard-based learning, competency assessment and accreditation
• Management structures, for HRD – HRD forum, Skills Development
Committees, SDF
• Greater application of advanced methods in HRD – skills audit, needs assessment,
competency profiling
• Reduction of discriminatory barriers to training and more consideration for issues of equity
• The application of transversal training methods in the Public Service
• The growing use of Professional Development Plans (PDPs)
• Greater availability of accredited courses and accredited providers
• Growing alignment of HRD to PMDS
• More opportunities for gaining and improving educational qualifications
• Availability of learning frameworks which promote quality courses and acceptable standards
for training
• Promotion of representativity in planning and decision making for HRD e.g. involvement of
labor in Skills Development
Key areas where problems still exist in HRD in the public sector
• No buy-in and support from senior management
• HRD not seen as an organizational priority
• Fragmentation of HRD functions, activities and initiatives
• Inability to retain senior managers and officials with scarce skills and lack of comprehensive
retention strategies
• Lack of overall career planning and pathing for officials
• Ad hoc selection of courses and service providers
• Lack of integration alignment and consolidation of the systems, structures and activities to
complete, support and sustain HRD
• Managers not taking responsibility for the HRD component of their jobs
• Inadequate allocation of budgets
• Inadequate allocation of staff
• Little or no succession planning
• PMDS not integrated with HRD
• Shortage of accredited providers in many fields of training
• Training still too theoretical and unrelated to practice
• Poor implementation of policies and strategies
• Lack of performance focus and impact assessment for training
• Lack of proper and integrated information system for reporting and knowledge management
system enhancing practice
• Non-availability of model organizational structures and arrangements for HRD in Public Sector
organizations
• Lack of role clarity and proper alignment of roles and responsibilities

7. • Poor implementation of a growing number of learnerships
• Lack of thoroughness in the development of WSPs and lack of integrity in their
implementation
• Lack of comprehensive and integrated HR plans
• Lack of monitoring and enforceability of key legal provisions for HRD e.g. SDA
1% allocation to training
• Lack of adequately qualified coaches and mentors
• Dysfunctional and disempowered Skills Development Committees
• Sub-optimal utilization of staff – poor recruitment, poor placement, irrelevant training, misassignment of responsibilities
• Little use of RPL
• Constant change of organizational structures, personnel and structural arrangements for HRD
• Poor alignment and coordination between SETAs
• Lack of pre- and post- training interventions
• Discontinuity in leadership
• Inconsistency and lack of thoroughness in induction and re-orientation
• Too few partnerships with educational institutions
• Lack of optimization of the HRD role of DPSA and SAMDI
Critical barriers affecting change in HRD
• HRD not seen as a strategic partner although highlighted as a critical part of development and
transformation
• Occasional political interference in HRD decisions
• Shortage of staff and inability to retain personnel – high turnover
• Lack of management buy-in and support
• Non-alignment of structures and functions leading to fragmented delivery
• Constantly changing organizational structures and pervasiveness of change throughout the
organization
• Lack of aftercare support in the workplace
• Lack of synergy between HRD and HRM
• Line mangers’ lack of understanding, interest and support for HRD, and lack of knowledge of
their HRD responsibilities
• Lack of integrated information systems for HRD
• Accrediting training without accredited outcomes – staff not completing portfolios.
Accredited training is expensive.
• Theoretical nature of training in HRD
• Lack of consistency between actual training activities undertaken and the WSP
• Lack of sufficient accredited training providers in many geographic areas and in some areas of
training for the Public Service
• Inconsistency in incorporating the development agenda in HRD activities –
PGDP, JIPSA, ASGISA, EPWP
Critical areas which seem to promote success in HRD in the public sector

8. • HRD manager is placed at a strategic level in the organization
• Personnel in the HRD units are qualified in HRD and update their training
• Organizational structures where HRD functions are strategically located and managed
• Overall structures for HRD which allow HRD responsibilities to be effectively undertaken
• Effective information management systems
• High level of participation and consultation in planning and decision making
• Budget allocation is adequate and funds are readily accessible
• Involvement of senior officials in strategic HRD activities nationally
• The application of transversal training for the Public Service within the province.
• The availability of provincial academies and centres of learning that focus specifically on
Public Sector training
• Skills Development Committee structures to which all staff have access and input through
representation
Issues in Public sector
Following are the various issues that can be observe in some PSUs:*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
The Conceptual Model for the Revised Strategy
The Strategic Framework for HRD in the Public Sector stands on four pillars of strategic
intervention. Based on the research review, each of these pillars represents a critical set of
strategic initiatives which will further strengthen human resource development in the Public
Sector. Each strategic pillar, and the initiatives they embody, are highlighted and discussed
briefly below. The strategic framework also promotes 10 principles of action. These too are
highlighted.
PILLAR 1: The Capacity Development Initiatives

9. The capacity development initiatives of the strategy focus on “developing human capital for
high performance and service delivery”. Capacity development is at the centre of HRD as a
profession, and, as a result, it is one of the primary areas of focus here. Interventions related to
capacity development sought to identify strategic interventions which could add the highest
value to the public infrastructure for capacity development. Adding the highest value here
meant the interventions must be made to resolve the persistent issues which compromised the
process of capacity development.
But in addition, interventions were also designed to set the foundation for a new era of
capacity development where learning environments are created for people to develop
themselves. Embodied in the capacity development pillar are eight areas of strategic
intervention. These are as follows:
1. Strengthening systems for workplace learning
2. Integrated ABET framework
3. Leadership development management strategies
4. A more strategic role for professional bodies – Norms, Standards &
Capacity Development
5. Promoting learnerships, internships & traineeships
6. A National / Provincial Public Service Academy E-learning for the
Public Service
7. E-learning programmes for the Public Service
8. Fostering HEI and FETC Partnerships
PILLAR 2: The Organizational Support Initiatives
The organizational support pillar of the Strategic Framework is presented in recognition of the
fact that the services of HRD in the Public Sector depends on the extent to which pertinent
organizational support structures and systems are properly integrated so that it may
complement and support the activities of HRD. The research review process has highlighted
that many of the more persistent issues in HRD in the Public Sector relate to the inadequacy of
organizational support. Among the many possible interventions which could have been
selected, therefore, this pillar seeks to embody those interventions which could have the
highest impact in transforming the environment in which
HRD is undertaken. As a result, the selected strategic interventions are those which could
provide a platform to further strengthen and support a transformed HRD function. The
organizational support pillar includes eight areas of strategic intervention as follows:
1. Human Resource Planning – Supply and Demand Management
2. Knowledge and Information Management
3. Performance Management Development Systems
4. Promoting appropriate organizational structures for HRD
5. Ensuring the adequacy of physical and human resources and facilities
6. Managing employee Health & Wellness
7. Career Planning & Talent Management
8. Mobilization of management support
PILLAR 3: Governance and Institutional Development Initiatives

10. Successful implementation of the Strategic Framework is not possible without good
governance. Governance here means that the HRD Strategy Framework must be properly
driven at all levels so that there is a coordinated and concerted effort in understanding shared
responsibilities. Good governance here must be facilitative in its efforts to create an
environment that promotes professionalism and fosters implementation success. But good
governance must also promote a level of accountability which will ensure that each party meets
its obligations within the strategic framework. This pillar therefore embodies strategic
initiatives which add value in terms of oversight, strategic support and the promotion of
professionalism in the field. The pillar on governance initiatives embodies 7 areas of strategic
intervention as follows:
1. Strengthening and aligning governance roles in HRD (SETAs, DPSA, SAMDI)
2. Managing HRD policy and planning frameworks and guidelines
3. Fostering effective monitoring, evaluation and impact analysis
4. Managing the effectiveness of communication
5. Promoting HR learning networks
6. Values, ethics and a professional code of practice
7. Utilization of the strategic role of SETAs
PILLAR 4: Initiatives to Support Government’s Economic Growth &
Development Initiatives
The end result of Government’s efforts is seen in the extent to which its services contribute to
the lives and welfare of people. In this light, all Public Sectors are focused on a development
agenda that seeks to promote the general welfare. With this more comprehensive view, the
HRD Strategic Framework cannot ignore or overlook its responsibility to enable the Public
Sector to more adequately contribute to an agenda of development which includes economic
growth and development initiatives. This pillar therefore seeks to craft selected strategic
interventions which will strengthen and streamline support for the developmental priorities of
Government.
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 Service.
HRD in Public Sector Undertakings
HR Management in India PSUs had a great past and currently at cross roads in spite of
some innovative practices a few of them are attempting. The way they are going about
is not right. They have become increasingly consultant dependent and surrendered their
own learning and leadership opportunity to external agencies and ignored their role in
institutionalization and effective implementation.

11. They have become short term target driven than long term intellectual capital focused.
Cost saving (rather pseudo cost saving) and vigilance concerns and risk aversion seem to
characterize their work that performance focus and long term commitment. Consultants
introduce and leave but the problem of HRD in PSUs had never been lack of ideas but
that of serious and consistent implementation.
The implementation suffered in the past due to frequent changes in top level
leadership. Instead of figuring out and working on implementation issues most PSUs and
their HR 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. Following is the trend which is meant to set direction for the
future by pointing out the areas where the PSUs lacks:
HR in PSUs in 70s and 80s
HRD in the Public sector undertakings had a glorious past. PSUs attracted highly
competent people in the past. It used to be a prestigious thing for most engineering
graduates from leading educational institutions to join corporations like NTPC, BHEL,
BEL, HMT, HAL and the like in seventies and eighties. High achievers in Economics and
other areas considered joining the Nationalized Banks and the RBI as a dream job. Thus
the PSUs attracted talented engineers and other graduates. The quality of manpower
was great. They also instituted good HRD systems which were path breaking. The
following illustrate the same.
 HMT was the first to start a dedicated Organization Development (OD)
department in early seventies. The work of this department was well respected
and quoted. Those associated with this OD department latter rose to be leading
CEOs and consultants and contributed in many ways to development of other
sectors.
 MSS Varadan in Bangalore who became an active process facilitator and worked
with ISTD, NIPM, and HRD Network besides the institutions like the Indian
Institute of Science and so on.
 BHEL was the first to initiate MECOMs (Manager Employee Communications)
systems to facilitate employee development and create a healthy organizational
culture.
 State Bank of India and its associates were the first to start the HRD function
under the guidance of Dr Udai Pareek and appointed a Full pledged HR
department to design and implement HRD systems to promote continuous
development of employees. The author was associated with training the various
HRD Managers of these banks to initiate various systems.
 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 (A Chief General Manager and subsequently elevated to Dy.
Managing Director level) to look after HRD.

12.  In late seventies Bharat earth Movers (BEML) appointed the author as Advisor
in General Manager’s capacity to design and develop HRD systems and also to
train internal talent to manage HRD. It is largely based on these experiences of
BEML they were able to complete the first book on HR (Pareek and Rao) and test
out various ideas in a seminar organized at IIMA.
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 opening up of the economy in nineties the HRD’s role had to be redefined in PSUs. It
succumbed to pressures and changing realities of the PSUs and the government. 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+

13. The last ten years have seen again a good rise of the HRD function. With increased success of
liberalization the country realized that there is no alternative to talent management.
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 MNCs and private sector.
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
same for the last seven to eight years.
ONGC has also started Assessment and development Centres 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 centres 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.
LIC has started a one year Post graduate program to develop their internal Talent with the help
of IIMA. BOB has identified a large number of their top level mangers aged above 50 years and
have worked out Leadership development Interventions.
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.
HRD in PSUs at Cross roads Now: Problems and Issues
1. While many good things are going on, a great qualitative difference in the way HRD
interventions are being made to day as compared to eighties- something missing,
perhaps the spirit. Essentially because in many of the PSUs, HRD interventions seem to
have become short term target- driven, consultant driven, Vigilance driven and Tender
Driven.

14. As a result they have taken away the spirit and pleasure of implementation from the
HR Managers. The HR Managers themselves including their top needs to be blamed for
this. It is time that the PSUs realize the traps they have walked themselves into.
2. Today is the time when they can take lead and make many things happen. They have
the freedom and opportunity. The most important strengths of PSUs is that they are
secure as they are Government supported. Jobs are secure and their existence is secure.
They have great scope to innovate and invest. It is not difficult to raise funds and they
have the support of the nation and its politicians. Investments are easy; technologies
can be acquired fast and easily. They already have reasonably robust systems. If you
have financial support, technological support, systems support what else do they need?
Perhaps the only thing needed is Talent.
3. Talent is the most needed thing is PSUs. However they also have talent. They need to
realize that they have certainly talented people and they are not using their talent. The
only issue with these talented people is this: Those who are older in age and need to
change are not changing and those who are young in age and talented are not sticking.
Younger generation has to be put in forefront. However a number of senior employees
may not appreciate the same. Hence there is a generation gap developing. HRD needs to
fill this by providing opportunities for younger groups to play leadership roles. PSUs
have the capability but this needs to be focused. The bureaucratic approach and love for
seniority, designations and power prevent them from doing. Changing this culture and
getting talent put first is the first challenge they seem to face.
4. With different generations of employees in a PSU you need differentiated HR policies.
You cannot treat baby Boomers, Gen X and Gen Y the same way. Gen X is PF and
Pension driven. While Gen X likes quick settlement fast changing roles and high
movement and activity level. Uniform HR policies don’t serve the three generation of
employees. HR department should be seized with this issue. On the contrary they are
seized with the problem of uniform application of policies for all people for equality and
justice.
5. Other challenge they seem to face is to think innovatively. Most of the HR managers
have surrendered their thinking and intellectual faculties to consultants. There are some
PSUs where the number of consultants is more than the number of HR section Heads.
There are a set of consultants to do competency mapping, another set to do PMS, a
third group to do 360 degree feedback, a fourth to do Assessment centres and a fifth to
do employee engagement surveys. Ultimately one raises the question “what are the HR
Managers doing”. Should they be designated as “Outsourcing Managers” rather than HR
Managers?
6. Each HR Manager is busy preparing tender documents, appointing consultants,
monitoring their work, arranging line manager interviews and the like and there is no HR
happening. It brings down the credibility of HR in such corporations. It is high time the

15. HR staff become sensitive to this. They may feel that by appointing consultants they
transferred the risk of designing, managing and implementing HR systems to
consultants. They also nave wasted the company money.
7. Ignorance of the local tested out practices and preference for un-implementable global
practices. HR is one area where the country needs no foreign expertise. There is
abundant expertise available in the country. In one organization they recruited and
“Expat HR Chief” for handling HR and spent ten times the amount they were spending
on the earlier Head HR. The new HRD Manager had to be put up is a five star hotel for
four months, toured round the country and visiting their outfits and few outside India,
and concluded that little could be done in this company as Indians do not respect
systems and like to feel powerful by breaking systems and rules while he comes from a
county where systems are adhered to. Expressing his inability he left the company and
the company took another six months to find a new HR manager after concluding that
outside talent can’t do much in HR. Fortunately this is not a PSU but one will not be
surprised in future Indian PSUs start looking for foreign HR Managers considering the
rate at which they are appointing foreign consulting firms. One should review the
experiences of the Consulting firms. Most of the Big Five and other consultants carry big
names but use local talent from IIMs, XLRI and the like. Consider the fact that most of
the consultants are graduates from these management schools of the last few years and
yet employed at high cost for promoting HR they themselves have learnt largely from
text books including the Indian books.
8. Tendering syndrome: Imagine if the Prime Minister of India has to be operated for his
heart through a tendering process and lowest bidding surgeon will be called on to
operate him. What would have been the fate of this country? Most PSUs don’t realize
that management practices cannot be designed and implemented through tendering
process. Most competent consultants including the leading Institutions like the IIMS do
not participate in bidding process. Just like a famous surgeon need not be subject to a
tender document and examination by a committee who knows nothing about surgery to
decide whether he is a famous surgeon or not. In fact there is no need for most
management practices to be designed by external consultants. There are enough
internal talent available in Indian corporations to design and implement any HR system.
There is more expertise available in India and Indian academics and consultants on PMS,
ADCs, Competency Mapping, Learning systems, Soft skills training, 360 DF (In fact it was
first Initiated at IIMA much before US called it as 360 DF), Employee engagement and
Commitment (there are more than score of thesis written on this theme at IIMs and
other places. Yet the preference for foreign expertise in HR is amusing. Probably we
have to live still with the old dictum “Ghar ki Murgi Daal Baraabar”. Indians seem to
respect foreigners. That is our culture. Public sector private sector no difference. The
farther the distance of the consultant is from you the more he is respected. New York is
farther than Delhi and Delhi is farther than local town. If you cannot get a foreign
consultant get at least a Foreign Consultancy firm. They quite often forget that the
consultancy service of the foreign firm is delivered by the locally trained youth and what

16. the company gets is the local knowledge at global rates. It is very sad to see this happen
in HR field which took lead across the world in eighties. PSUs seem to fall into this trap.
One PSU sent a delegation of five people from several hundred kilometers to negotiate
a five lakh rupee project to fill the tendering requirements. The same company gave a
two crore project to another organization without any tendering process. When asked
the reply I got was “It party is only one of its kind and hence does not need any tender”.
The party was a reputed Business School with foreign faculty. Also often the HR
managers take protection for their inability to make difference under the vigilance
requirements.
9. It is true that vigilance departments have become very active. They have become active
to protect the interests of the organization as well as the employees. Vigilance therefore
attempts to protect people so that they can follow the process and at the same time do
good job. In my view subjecting Management consultancy to tendering because of
vigilance is doing serious damage to the very purpose of management systems
improvements. This is because management consultancy does not need such high levels
of investment. The moment you get in to tendering the level of costs raises. For example
I got once an invitation to submit a proposal. Only those companies with a turnover of
more than five crores were allowed. Imagine what would be the signal to companies.
Research evidence shows that small companies deliver better service in management
consultancy. In my view many HR managers are reducing themselves in PSUs to be
outsourcing managers rather than change agents.
10. The top level managers in HR are busy with other policy issues they are neglecting most
important Talent Management issues. The credibility of HR at present in most PSUs are
at their lowest in spite of the scope for great work. What most HR people think about
them and their work in some of the PSUs is totally different than what their line
managers think.
This is the time that HR can wake up and do a lot. Reforms are on way. HR Managers
need to reform themselves. Acquire competencies to do good HR and initiate change.
The consultant dependent HR need to go and internal teams should come up do the
work of consultants. Institutions like IIMs and other management schools locally should
be used for initiating and managing innovations. HR talent could be developed by
getting trained globally where needed or for giving confidence that there is a lot we can
learn from ourselves. It is good to go to Michigan University to attend Dave Ulrich’s
sessions and learn about how HR is being managed in the USA or other countries. But it
is futile to go there to learn how HR is being managed in India or how it should be
managed or to get US based consulting firm to teach Indian PSUs how to manage their
talent. It should be remembered that both Top level consulting firms and MBA
Graduates from Top US business schools have a share in the failure of corporations like
Enron and the current global crisis! India is great and Indian PSUs should make it even
greater by doing right things and things right.

18. Human resource development practices in public sector milk processing
organizations in western Maharashtra
Sambhaji V. Mane (School of Management, S.R.T.M. University, Sub-Centre, Latur, MS, India,
413512)
Abstract- HRD practices in public sector milk processing organizations in Western
Maharashtra is 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. When compared to
private and co-operative sector milk processing organizations, these public sector milk
processing organizations are few in numbers in Western Maharashtra. ‘Public sector
organizations total management rests with Government i.e. a non-professional people political
leaders and civil servants. 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.
Government spends huge amount of public money for erecting plants, constructing building
and purchasing modern machineries and equipments.’
1 These organizations are playing vital role in creating healthy competition in the market
however if it is eliminated from business and markets, there will hardly be control on private
and cooperative sectors milk organizations and will lead to exploit the society at large. Hence, it
is a prime responsibility of government to avoid social exploitation and to secure social
investment. It should not be closed by disposing land and building infrastructure and scrapping
the functioning machineries.
Accordingly, it is important to protect these organizations and keep functioning for the societal
interest. ‘Human resources are the soul of business and it should be continuously developed
and trained’.
2 Hence present study brings HRD aspects to the notice of the Government authorities to
strengthen the workforce of these organizations.
Methodology Adopted
In Pune and Nashik 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 Nashik 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.

19. 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 the entire workforce, 30% of both the category i.e.
138 management respondents and 357 employee respondents, in total 495 respondent
workforces, 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, nonparticipatory observation method and secondary data through documentary research method
and unstructured interviews to justify the set hypothesis:
i.
HRD has no role in the success of milk processing organizations.
ii.
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 Nashik 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.

20. 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 strengthening in order to
sustain in today’s global competition.

21. References
1. Role of Human resource Development in Public sector | Government
Jobs http://governmentjobsalerts.com/role-human-resource-development-publicsector-405.html#ixzz2fo8f6wIa
2. Journal of Business Excellence, Vol. 1, Issue 1, 2010, PP-06-10
3. http://www.nddb.com/dairy cooperatives
4. Rao T.V. Silveria D.M., Srivastrava C.M. and Vidyasagar Rajesh (1994);’HRD in the new
Economic Environment; Tata McGraw-Hill, New Delhi.
5. Sambhaji V Mane Copyright © 2010, Bioinfo Publications
Journal of Business Excellence, Vol. 1, Issue 1, 2010 10