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HRD Practices in Indian Industries
The HRD aims at helping people to sharpen their capabilities and acquire competencies. The process of acquisition of capabilities and competencies is facilitated by HRD mechanisms like performance appraisal, training, OD, feedback and counseling, potential development, job-enrichment, rewards etc. These HRD subsystems help in developing a positive HRD climate indicated by openness, confrontation, trust, authenticity, pro-activity, autonomy and collaboration. It helps in developing competent, committed and satisfied workforce, an atmosphere of trust and authenticity and teamwork in the organization which ultimately helps the organization to achieve its goals of higher productivity and growth; efficiency and effectiveness; and more profit and better image.
Accordingly, an effort has been made to study the HRD sub-systems and HRD climate in Indian Industries. No program or no policy can be effective unless the top management is committed to implement it whole-heartedly. The existence of HRD department in an organization is therefore a pre-requisite for the success of entire HRD system. Keeping all these factors in mind the chapter is divided in three parts:
a) HRD Sub-systems practiced by Indian Organizations
b) HRD Climate in these organizations
c) HRD Outcomes

HRD Sub-Systems Practised by Indian Organizations 
The following HRD sub-systems are generally practiced in Indian organizations:
1. HRD Departments 
HRD has been evolved as a separate function in early 90‘s. Separate HRD department is expected to contribute to the development of HRD processes. Rao and Abraham (1984) on the basis of his survey of 53 companies found that 30 per cent of them had maintained a separate HRD department. In other, 38 per cent the HRD function was operational as a part of the personnel department. Similarly, a study of 14 large public and private sector organizations by Rao (1986) indicated that only three of them did not have separate HRD departments. The same was confirmed by Jain (1996) in his study of major Public Sector Organizations in India. Further, Jain (2013) made a study of the Pharmaceutical firm and found that HRD department existed in that company. As per the information gathered from the web, it has been found that some of the pharmaceutical companies like Ranbaxy, Panecea, Abbott etc. also have separate HRD departments. It appears that HRD departments exist in almost all large public and private sector organizations. It also indicates that the top management believes in the development of its human resources as its assets.

2. Performance Appraisal 
Performance appraisal is probably one of the oldest yet most imperfect of managerial activities. It is a formal exercise which is necessary for all important decisions relating to such as placement and promotion, remuneration and reward. It also helps in long-term manpower planning organization development. Gordon, L. Simpson (2004), in his article 'Performance Appraisal- an Important Managerial Responsibility' viewed performance appraisal as a beneficial process in HRD. He opined that Performance Appraisal should be accepted as a normal management responsibility to review the performance of all employees and discuss its results with them regularly.

A study conducted by Rao and Abraham (1986) indicates that in the 53 organizations surveyed by them, about 27 per cent of them have mainly development as the objective of performance appraisal. While 49 per cent emphasize on development and control of employee behaviour as objective of Performance Appraisal. There are three main procedures for making relative performance judgments, namely, paired comparisons, ranking and forced distribution. Besides, modern methods including graphic trait rating scales, check lists, critical incidents and behavioral anchored rating scales are also used for Performance appraisal.
Jain (2013) in his study shows that Performance Appraisal is used as HRD sub-system in BHEL and NFL. Grading and Ranking method was found to be widely used. Further, performance appraisal was found to be quite useful in improving individual and organizational efficiency and productivity.

A survey of 87 Pune-based by Anandram (1987) revealed that only 15 per cent of small and medium scale have performance appraisal. Study of 60 companies by Basu (1985) showed that about 83 per cent of companies were using formal systems of Performance Appraisal. Many organizations are use the appraisal data for work planning, strengthening superior-subordinate relationship etc. Similar results have been indicated in the study conducted by Jain (2014). Study by the researcher shows that a number of firms in Pharmaceutical industry are using modern methods of appraisal like 360 degree feedback etc.
It can be concluded that the Indian organizations are using appraisal systems for various objectives indicated above. Many organizations are revising their appraisal systems to make it more effective.

3. Potential Appraisal 
In most Indian organizations, Pareek and Rao (1981), admit that most organizations use performance appraisal form to collect data on the potential of the employee. But past performance is not necessarily an indication of future potential. In fact, the identification of an individual‘s potential is probably the most difficult aspect of performance assessment. Jain (1996) in his study of HRD Practices in Indian Industries affirms that potential appraisal is not being used in its true sense in BHEL and NFL.
The researchers on the basis of various studies made in MNCs and other pharmaceutical companies as well as public sector organizations found that these organizations also do not use Potential Appraisal as a HRD sub-system in their organizations. Potentials are, however, examined on the basis of Performance Appraisals, job descriptions and employees‘ disclosures.

The surveys conducted by Rao (1982) and Rao and Abraham (1986) indicate that systematic potential appraisal is not followed in Indian organizations. Even organizations like Larsen & Toubro are still in the process of establishing such systems. It can be inferred that potential appraisal is still to be implemented in its true spirit by most of the organizations.

4. Feedback and Counselling 
Counselling helps to strengthen the superior-subordinate relationships and enables employees to recognize their strengths and weaknesses. In many organizations the counselling is used to provide feedback in a threatening way or warn them not to repeat unsatisfactory behavior on their part. This is not right. Giving feedback, giving warnings, enforcing norms etc. are part of a manager‘s job but Counselling helps an employee to recognize their potentials and prepares him for his own development.
The survey by Rao and Abraham (1986) indicate that 41 out of the 53 (that is, 80 per cent) companies surveyed, require their executives to counsel their subordinates, The high percentage of organizations requiring their executives to counsel their subordinates is a very deceptive indicator of the practice of counselling. They pointed out that these organizations do not really have performance counselling. Rather, a sizeable number of organizations use counselling for more than one purpose.
Contrarily, the research made by the researcher, indicates that many of the companies are now using this sub-system more effectively to improve employee performance and attain organizational goals.

5. Training 
Training is the most important sub-system of HRD as it directly contributes to the development of human resources. Therefore, it is also the most widely used HRD mechanism in the country. Some organizations use training and HRD synonymously. Training is, therefore, essential because of the changes in technology, managerial and behavioural dimensions. Training needs are to be identified form the other subsystems of HRD such a performance appraisal, performance analysis and counselling and potential appraisal. In an article 'a critical look at Training in Industry, D‘Souza (1986) contends that the return of investment on training is very poor, because people are sent for training in many industries as 'fringe benefits' and very little is being done to make use of the learning once people return from a training programme. Similar conclusions were arrived at by Rao and Abraham (1986) in a study of HRD climate of 42 organizations. The respondents replied in negative to the questions of utilizing opportunity to try out what they have learned, and sponsoring employees on the basis of "genuine training needs'.
A study made by Jain (1996) in BHEL and NFL also indicated that the two public sector organizations use Training as HRD sub-system in their organizations but training needs are not always analyzed before selecting employees for training. Again, a query from the various organizations by the researcher revealed that they are providing training to their employees for improving their performance, updating their skills and to take up new responsibilities at the time of promotions. But the respondents were of the opinion that analyzing the employees need for training and providing them opportunity to apply the new skills are not properly followed.
It can be stated that the training, although, widely practiced sub-system of HRD needs to be integrated and implemented properly.

6. Career Planning And Development 
Career advancement is the prime motivating factor for most managers. They want to know where they would be going in the organization alter three, five, 10 years from their joining. A meaningful career planning system should be based on potential appraisal. Career planning and development can become an effective tool for development of the employee and a key factor in the HRD system (Philip, 1987)
The inquiry made by the researcher shows that the large organizations like Ranbaxy make career development plans for their employees but the medium-sized organizations of Scientific goods industry and some pharmaceutical firms do not have formal career development plans for their employees.
In fact, both performance appraisal and career development have potential for developing human resources. Employee potential can be increased by linking them together to meet the needs of both individual employees and the organization. It is, therefore, apparent that the organizations willing to upgrade the competencies of their human resources must pay attention to the development of these sub-systems.

7. Rewards 
Rewards play an important role in setting up a development oriented climate because it has a acts as motivating force for those who are good performers. Singh (1983) says that salary is not enough to produce an adequate impact on enhancement of performance, reduction of absenteeism and retaining of skilled employees. To attract competent persons from outside, it is also increasingly felt that reward systems should help attracting the individuals with requisite the knowledge, ability and talents and retain productive employees in the organization as precious assets.
The rewards should be adopted as HRD sub-system in every organization. The rewards in the form of appreciation letters, citations and higher responsibilities can make positive impact.
Almost all the pharmaceutical organizations, organizations in public and private sector (Jain, 1996) and small and medium sized firms of scientific goods industry give rewards to their employees for their good performance. The researcher feels that the rewards should be linked with performance to help the organization to attain its goals.

8. Organization Development 
Organizations are like individuals and families. They need people who can solve their problems. They need to develop a system where people learn to organize themselves to cope with the demands of a changing environment
Pareek (1975) defines OD as a planned effort, initiated by process specialist(s) to help an organization develop its diagnostic skills, coping capabilities, linkage strategies in the form of temporary and semipermanent systems, and a culture of mutuality. Organization development is a long-range effort to introduce planned change which helps in increasing organizational effectiveness.
Rao and Abrahm (1986) in their survey of 53 organizations reported that 44 per cent of them seem to have some OD activity actually going on and most of them seem to focus on 'team building' and 'role clarity' exercises. Other OD activities include interpersonal sensitivity, personal growth and stress management. In BHEL and NFL, Jain (1996) has explored that HRD helps in OD through conflict management and by increasing co-operations between inter-dependent units. The respondents agreed that OD is helpful in increasing individual and organizational efficiency and productivity. Many MNCs are also found to be using OD interventions for conflict management, role negotiations, increasing team spirit etc. On the whole, there is an encouraging upward trend in using OD in Indian organizations. Team development and other OD activities mentioned above will bring about a change of culture-healthy and development-oriented, which may nurture development of human resources.

Question for HRD Practices in Indian Industries - Industrial Relations, Human Resource Management

Try yourself:

What is the purpose of counselling in organizations?

• A.

  To provide feedback and warnings to employees
• B.

  To strengthen superior-subordinate relationships
• C.

  To recognize employee potentials and prepare for development
• D.

  All of the above

Explanation

Counselling in organizations serves multiple purposes. It helps to provide feedback and warnings to employees regarding their performance, but it also aims to strengthen the relationships between superiors and subordinates. Additionally, counselling helps employees recognize their potentials and prepares them for their own development. Therefore, the correct answer is option D, as all of the above options are true. Counselling is not meant to be used in a threatening way, but rather as a supportive tool for employee growth and improvement.

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9. Human Resources Information System 
In an age of rapid technological changes, automation and computerization it has become necessary that information on human resources is stored for various purposes. A human resources information system (HRIS) can be defined as ―an information system that monitors, controls and influences the movement of human beings from the time they indicate their intention to join an organization till they separate from it (Chandrasekhar, 1986).
It was ascertained by the researcher that many pharmaceutical companies are using human resources information system (HRIS) in their organizations as per their needs. Many organizations are using job portals, employee portals, e-recruitment, e-learning, e-training, HR software which are creating transparency and are building an atmosphere of trust and openness. Policies are now most clearly available through computer networking. New software are being developed to store employee data, evaluate various information and utilize them for organization.

Integration and Implementation of HRD Sub-systems 
There is very little research conducted on integrated HRD systems. In fact very few organizations seem to have such integrated HRD systems. The indications received by the researchers form the HRD departments of some of the Pharmaceutical companies, public sector companies and scientific goods industry confirm the view that only some of the HRD sub-systems are applied in these organizations. Surely, there are linkages between various subsystems of HRD. Synergistic effects of HRD systems can be obtained only when all the subsystems and their linkages are established. For example, performance appraisal could help in training, OD, career planning and development, job rotation and rewards.
Various case studies are available in the literature about the introduction of HRD Systems in the Indian organizations. Pareek and Rao (1981) and Jain (1996) have presented their experiences of a public sector organization in introducing an HRD system. Gupta and Gangotra (1986) has presented case studies of integrated HRD systems in their respective organizations.
Jain (1996) in his study has highlighted that there exists positive correlation among all the HRD subsystems in BHEL and NFL studied by him. It shows that the HRD sub-systems are closely related and there is need to implement them in an integrated manner.
There is an urgent need that the Indian organizations should make an all out effort to implement HRD as an integrated system. The academicians and researchers in this field can be used to develop the strategies to implement the same. It will help the organization to develop a strong bond among its human resources.