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Human Resource is considered as the most important and essential part of any

organization. Human Resource Management is a process of bringing people and

organization together so that the goals of each are met. It is that part of the management

process which is considered with the management if human resource is an organization. It

tries to secure the best from people by winning their whole hearted co-operation. In short,

it may be defined as the art of procuring, developing and maintaining competent work

force to achieve the goals of an organization in an efficient and effective manner.

The human element is the most important factor production in which the success of

every business enterprise depends. The dealing concerned with the human element is the

responsibility of the Human Resource (Personnel) Department.

Thus in the project report I tries to find out that what is the impact of the human element

on the establishment of Indian industries. Moreover it is also been tries to carried out that

how does the HRD climate plays its role in the establishment and further working of any

Indian industry. The research is carried out by way of questionnaire so that more

enhanced and appropriate data can be collected and refined data can be extracted from it

in order to maintain its purity as well as to carry out the in depth knowledge of the topic.

It is also been considered that the more significant issues can be extracted from the

research work as well as it help as a base for the research works to be carried out in future

form of business.
Chapter no. Title Page no.

Acknowledgment III

Preface IV

List of Table VI

List of figures VII

1. Introduction

2. Scope and Importance

3 Literature Review

4. Research Methodology

5. Findings and Analysis

6. Conclusions

7. Suggestions and Recommendation

8. Limitations


The human element is the most important factor production in which the success of

every business enterprise depends. The dealing concerned with the human element is the

responsibility of the Human Resource (Personnel) Department.

In any organization the Personnel (HR) and General Administration department are more

or less merged together. These are headed by Administrative Officer and Personnel

Officer who reports to Director (O & A).

Personnel Administration department performs the following tasks round the year:-

1. Recruitment and Selection.

2. Training and Development.

3. Grievance Handling.

4. Motivation.

5. Promotions and Transfer.


As it has been mention earlier, this area is handled by personnel department.

Recruitment and selection of employees for the managerial post is done generally by

giving advertisement in the National Newspapers. Directly addressed applications are

also entertained at times. No campus interviews are conducted for executive positions.
There is no criterion for conducting psychological test or written test before personal



Recruitment of workers is done by application through employment exchange or directly

as and when need arises. Mostly the direct recruitment method is employed.

Selection is done by proper screening of aspirants by the interview board. On the basis

of the candidate’s educational qualification, personality, etc. each member of the

interview board rates him on the prescribed “Rating Form” and a common opinion is

framed and sent to the Director’s office for approval. Final appointment is done by the


After final approval, personal department issues the appointment letters to successful



Any organization does not have any specialized training department which can provide

training in various fields to the employees. The management mostly provides “on the

job” training to the workers. Seminars are also organised periodically.

As far as executive development is concerned not many seminars are held in the campus.

They have been given opportunities to go out and attend seminars and other development



It is an established fact that there is hardly a company or an industrial concern which

functions absolutely at all times. Employees have grievances against employers and vice-

versa. So every establishment requires a grievance handling policy and a proper

procedure to be followed in case grievance is lodged. Grievances are feelings, sometimes

real, sometimes imagined, which an employee may have in regard to his employment

situation. Whenever there is any discontent among employees it is bound to result in

turmoil which may adversely affect the interest of the management and ultimately lead to

inefficiency of workers and low productivity.

An organization has a very efficient system of grievance handling as any body is free to

walk into any manager’s room and discuss and sort out his problems with the concerned


They believe in the policy of “NIP in the BUD” and not let any grievance grow out of

proportion. They have meetings with workers union leaders every two years and have

discussions about the appropriateness of wages and other problems regarding supervision

advancement, working conditions etc.

As such there exist no grievance redressal machinery but the grievance handling

procedure followed goes something like this: the grievance is first lodged with the

supervisor and if he is unable to help out, the manager concerned is then approached. If

he manager is also unable to satisfy the grieving party the aggrieved takes the help of

union leaders to reach to personnel officer. Because of the company policy grievance in

a firm and generally do not proceed beyond the personnel officer level. In the past, have

had two strikes where only in one of them arbitration was required from outside.


There is no formal system of motivation in any organization. But it can be said that the

closest theory being followed is the “Carrot and Stick”. Under this approach it is assumed

that the employees are offered rewards or shown the fear of punishment to motivate


The reward system in a firm can be more of non financial nature than financial one.

Annual functions are held where employees are praised and awarded certificates and on

certain occasions monetary awards are also attached to them. The punishment is in form

of fines, bad reports or scolding by the senior supervisor or manager as may be the case.

In extreme cases only suspension as a form of punishment or resorted etc.


The criteria for granting promotions and transfer to the employees are used on seniority,

performance and merit. In some cases seniority automatically implies that the person
shall be granted a promotion, where as in certain cases the promotion is granted to a

person who is more meritorious and whose performance has been exemplary ever though

he is not a senior. The decision ultimately has with the senior most person concerned or

Director Operation.
Scope of Human Resource Development Climate

Motivator role of Manager and Supervisor: - To prepare Human Resource Development

Climate, Manager and Supervisor’s responsibilities are more or we can say that they are

the key players. Manager and Supervisors have to help the employees to develop the

competencies in the employees. To help the employees at lower level they need to

updated properly and they need to share their expertise and experience with employees.

Faith upon employees: - In the process of developing HRD Climate employer should

have faith on its employee’s capabilities. Means whatever amount is invested that should

be based on development of employees. Top management should trust the employees that

after making huge effort to develop employees, employees will work for the well being

of organization and for human being also.

Free expression of Feelings : - Whatever Top management feels about employees they

have to express to employees and whatever employees think about top management it

must be express in other words we can say that there should not be anything hidden while
communication process. Clear communication process will help to establish the HRD


Feedback: - Feedback should be taken regularly to know the drawbacks in system. This

will help to gain confidence in employees mind. Employee will trust on management and

he can express his opinion freely which is very good for HRD Climate. Feedback will

help to remove the weakness.

Helpful nature of employees: - Whenever we talk about 100% effort then we have to

talk about employee’s effort too. Nature of employees should be helping for management

and for its colleagues. They should be always read to help to customers too.

Supportive personnel management: - Personnel policies of organization should

motivate employees to contribute more from their part. Top management’s philosophy

should be clear towards Human Resource and its well being to encourage the employees.

Encouraging and risk taking experimentation: - Employees should be motivated by

giving them authority to take decision. This concept is risky but gradually it will bring

expertise in employees to handle similar situation in future. It will help to develop

confidence in employees mind. Organization can utilize and develop employees more by

assigning risky task.

Discouraging stereotypes and favoritism: - Management need to avoid those practices

which lead to favoritism. Management and Managers need to give equal importance.

Those people who are performing good they need to appreciate and those who are not

performing well they need to be guided. Any kind of partial behavior should be avoided.

Team Spirit: - There must be feeling of belongingness among the employees, and also

willingness to work as a team.

Importance of Human Resource Development Climate

The importance of HRD Climate in an organization is as under-:

1. Environmental factors of HR are prime influencing elements of change in HR


2. It gives HR professionals time to anticipate opportunities in HR area and time to

plan optional responses to these opportunities.

3. It helps HR professionals to develop an early warning system to prevent threats

emerging out from HR scenario, or to develop strategies, which can turn a threat.

4. It forms a basis of aligning the organization strengths to the changes in the


5. It enables the entry of the latest national/international HR developments.

Objectives of the study-:

1. To examine the nature of HRD climate prevailing in the industry.

2. To identify the nature of HRD system in the industry.

3. To measure the effectiveness of Training Programmes implemented and

Performance Appraisal techniques used in the organisation.

4. To analyse the prevailing practices of worker’s participation in Management and

study the relation between Management and Employees.
HRD Climate

Introduction: - If we need to find a way to develop employees in order to become

effective contributors to the goals of an organization, we need to have a clear view of

what an effective contribution would look like. The use of personal capacities can be very

helpful in describing the way in which an effective employee should operate and behave,

but there can be no general prescription of an effective employee. Effectiveness will

differ with organizational context, and on whose perspective we are adopting. The matter

of what, finally, makes an effective employee is a combination of personality, natural

capabilities, developed skills, experience and learning. The process of enhancing an

employee’s present and future effectiveness is called development.

Meaning of HR+D+Climate

• HR means employees in organization, who work to increase the profit for


• Development, it is acquisition of capabilities that are needed to do the present job,

or the future expected job.

After analyzing Human Resource and Development we can simply stated that, HRD is

the process of helping people to acquire competencies.

Climate, this is an overall feeling that is conveyed by the physical layout, the way

employees interact and the way members of the organization conduct themselves with

outsiders. (It is provided by an organization.)

“Organizational climate is a set of characteristics of an organization which are referred in

the descriptions employees make of the policies, practices and conditions which exist in

the working environment”.


An organization became dynamic and growth oriented if their people are dynamic and

pro-active. Through proper selection of people and by nurturing their dynamism and

other competencies an organization can make their people dynamic and pro-active. To

survive it is very essential for an organization to adopt the change in the environment and

also continuously prepare their employees to meet the challenges; this will have a

positive impact on the organization.

Components of HRD Climate :-

The organizational climate consists of:-

1. Organizational Structure-

An organization’s structure is actually a ‘snapshot’ of a work process, frozen in time so

that it can be viewed. The structure enables the people’s energy to be focused towards

process achievement and goal achievement. Employee must have a clear definition of not

only the work structure but also the role used to organize the work. If the structure and
the role is not clear, people will not know what the work process is, who is responsible

for what, whom to go for help and decision, and who can Assist in solving problems that

may arise.

2. Organizational Culture-

Organizational culture is the pattern of beliefs, knowledge, attitudes, and customs that

exists within an organization. Organizational culture may result in part from senior

management beliefs or from the beliefs of employees.

Organizational culture can be supportive or unsupportive, positive or negative. It can

affect the ability or willingness of employees to adapt or perform well within the


The most effective work culture is one that supports the organizations HR strategies by

aligning behaviors, processes and methods with the desired results. It is not just achieving

results but the methods through which they are achieved that are critical to long-term


Before any HR strategy is designed there must be a clear understanding of the

organization, its current values, its structure, its people as well as its goals and vision for

the future.

3.HR Processes-

The HR system of an organization should be comprehensive enough to take care of

employees from the time they join till the time they leave HR. Their demands must not be
ignored, but a feeling of belongingness be created. Process should be very clear and

impartial, so that employee’s faith in organization. From recruitment to retirement whole

process should be according to employee’s expectation and ability of employer.

Importance of looking at the organization climate are:

Looking at the organizational climate, which means taking a closer look at what is

happening in and around in the HR scenario of the various organization. It is essential to

work on because directly or indirectly this environment affects the organization and the


Measuring HRD Climate

1. Economic condition –

An organization’s economic condition influences its culture in several ways. The more

prosperous an organization is the more it can afford to spend on research and the more it

can afford to risk and be adventurous.

2. Leadership Style: -

An organization leadership style plays a profound role in determining several aspects of

its culture. An authoritarian style may make the organization’s culture characterized by

high position structure, low individual autonomy, low reward orientation, low warmth

and support and so on, or it may be opposite, like goal directed leadership.

3. Managerial assumption about human nature: -

Every act on the part of the management that involves human beings is predicated upon

assumptions, generalizations and hypotheses relating to human behavior. There are two

theories of behavior (Theory X and Theory Y).

4. Managerial values and ethos: -

The feeling of managers about norms and values what is good and what is poor as

management practice. There are few dimensions on which it can be checked. They are –

self-awareness, risk-taking, participation, bureaucracy, equity, employee’s security and


5. Organization size: -

A small organizations there are few levels of management; these are generally more

amenable to democratic and participative functioning than big organizations. More open

communication system in small organizations. Hence these organizations have a different

type of climate than what are in big organizations.

Human resources

Human resources is a term with which many organizations describe the combination of

traditionally administrative personnel functions with performance, Employee Relations

and resource planning. The field draws upon concepts developed in

Industrial/Organizational Psychology. Human resources has at least two related

interpretations depending on context. The original usage derives from political economy

and economics, where it was traditionally called labor, one of four factors of production.

The more common usage within corporations and businesses refers to the individuals

within the firm, and to the portion of the firm's organization that deals with hiring, firing,
training, and other personnel issues. This article addresses both definitions.The objective

of human resources is to maximize the return on investment from the organization's

human capital and minimize financial risk. It is the responsibility of human resource

managers to conduct these activities in an effective, legal, fair, and consistent manner.

Human resource management serves these key functions:

1. Selection

2. Training and Development

3. Performance Evaluation and Management

4. Promotions

5. Redundancy

6. Industrial and Employee Relations

7. Record keeping of all personal data.

8. Compensation, pensions, bonuses etc in liaison with Payroll

9. Confidential advice to internal 'customers' in relation to problems at work

10. Career development


Modern analysis emphasizes that human beings are not "commodities" or "resources",

but are creative and social beings in a productive enterprise. The 2000 revision of ISO

9001 in contrast requires to identify the processes, their sequence and interaction, and to

define and communicate responsibilities and authorities. In general, heavily unionized

nations such as France and Germany have adopted and encouraged such job descriptions
especially within trade unions. One view of this trend is that a strong social consensus on

political economy and a good social welfare system facilitates labor mobility and tends to

make the entire economy more productive, as labor can move from one enterprise to

another with little controversy or difficulty in adapting.

An important controversy regarding labor mobility illustrates the broader philosophical

issue with usage of the phrase "human resources": governments of developing nations

often regard developed nations that encourage immigration or "guest workers" as

appropriating human capital that is rightfully part of the developing nation and required

to further its growth as a civilization. They argue that this appropriation is similar to

colonial commodity fiat wherein a colonizing European power would define an arbitrary

price for natural resources, extracting which diminished national natural capital.

The debate regarding "human resources" versus human capital thus in many ways echoes

the debate regarding natural resources versus natural capital. Over time the United

Nations have come to more generally support the developing nations' point of view, and

have requested significant offsetting "foreign aid" contributions so that a developing

nation losing human capital does not lose the capacity to continue to train new people in

trades, professions, and the arts.

An extreme version of this view is that historical inequities such as African slavery must

be compensated by current developed nations, which benefited from stolen "human

resources" as they were developing. This is an extremely controversial view, but it echoes

the general theme of converting human capital to "human resources" and thus greatly

diminishing its value to the host society, i.e. "Africa", as it is put to narrow imitative use
as "labor" in the using society. In a series of reports of the UN Secretary-General to the

General Assembly over the last decade [e.g. A/56/162 (2001)], a broad inter sectoral

approach to developing human resourcefulness has been outlined as a priority for socio-

economic development and particularly anti-poverty strategies. This calls for strategic

and integrated public policies, for example in education, health, and employment sectors

that promote occupational skills, knowledge and performance enhancement.

In the very narrow context of corporate "human resources", there is a contrasting pull to

reflect and require workplace diversity that echoes the diversity of a global customer

base. Foreign language and culture skills, ingenuity, humor, and careful listening, are

examples of traits that such programs typically require. It would appear that these

evidence a general shift to the human capital point of view, and an acknowledgment that

human beings do contribute much more to a productive enterprise than "work": they

bring their character, their ethics, their creativity, their social connections, and in some

cases even their pets and children, and alter the character of a workplace. The term

corporate culture is used to characterize such processes. The traditional but extremely

narrow context of hiring, firing, and job description is considered a 20th century

anachronism. Most corporate organizations that compete in the modern global economy

have adopted a view of human capital that mirrors the modern consensus as above. Some

of these, in turn, deprecate the term "human resources" as useless.

In general the abstractions of macro-economics treat it this way - as it characterizes no

mechanisms to represent choice or ingenuity. So one interpretation is that "firm-specific

human capital" as defined in macro-economics is the modern and correct definition of

"human resources" - and that this is inadequate to represent the contributions of "human

resources" in any modern theory of political economy.


In terms of recruitment and selection it is important to consider carrying out a thorough

job analysis to determine the level of skills/technical abilities, competencies, flexibility of

the employee required etc. At this point it is important to consider both the internal and

external factors that can have an effect on the recruitment of employees. The external

factors are those out-with the powers of the organization and include issues such as

current and future trends of the labor market e.g. skills, education level, government

investment into industries etc. On the other hand internal influences are easier to control,

predict and monitor, for example management styles or even the organizational culture.In

order to know the business environment in which any organization operates, three major

trends should be considered:

• Demographics -: The characteristics of a population/workforce, for example, age,

gender or social class. This type of trend may have an effect in relation to pension

offerings, insurance packages etc.

• Diversity-: The variation within the population/workplace. Changes in society

now mean that a larger proportion of organizations are made up of “baby-

boomers” or older employees in comparison to thirty years ago. Traditional

advocates of "workplace diversity" simply advocate an employee base that is a

mirror reflection of the make-up of society insofar as race, gender, sexual

orientation, etc.
• Skills and qualifications – as industries move from manual to more managerial

professions so does the need for more highly skilled graduates. If the market is

"tight" (i.e. not enough staff for the jobs), employers will have to compete for

employees by offering financial rewards, community investment, etc.

In regard to how individuals respond to the changes in a labour market the following

should be understood:

• Geographical spread – how far is the job from the individual? The distance to

travel to work should be in line with the pay offered by the organization and the

transportation and infrastructure of the area will also be an influencing factor in

deciding who will apply for a post.

• Occupational structure – the norms and values of the different careers within an

organization. Mahoney 1989 developed 3 different types of occupational structure

namely craft (loyalty to the profession), organization career (promotion through

the firm) and unstructured (lower/unskilled workers who work when needed).

• Generational difference –different age categories of employees have certain

characteristics, for example their behavior and their expectations of the


While recruitment methods are wide and varied, it is important that the job is described

correctly and that any personal specifications are stated. Job recruitment methods can be

through job centers, employment agencies/consultants, headhunting, and local/national

newspapers. It is important that the correct media is chosen to ensure an appropriate

response to the advertised post.

Human Resources Development is a framework for the expansion of human capital

within an organization. Human Resources Development is a combination of Training and

Education that ensures the continual improvement and growth of both the individual and

the organization. Adam Smith states,” The capacities of individuals depended on their

access to education”. Kelly D, 2001Human Resources Development is the medium that

drives the process between training and learning. Human Resources Development is not a

defined object, but a series of organized processes, “with a specific learning objective”

(Nadler,1984) Human Resources Development is the structure that allows for individual

development, potentially satisfying the organization’s goals. The development of the

individual will benefit both the individual and the organization. The Human Resources

Development framework views employees, as an asset to the enterprise whose value will

be enhanced by development, “Its primary focus is on growth and employee

development…it emphasizes developing individual potential and skills” (Elwood, olton

and Trott 1996) Human Resources Development can be in-room group training, tertiary

or vocational courses or mentoring and coaching by senior employees with the aim for a

desired outcome that will develop the individual’s performance. A successful Human

Resources Development program will prepare the individual to undertake a higher level

of work, “organized learning over a given period of time, to provide the possibility of

performance change” (Nadler 1984). Human Resources Development is the framework

that focuses on the organizations competencies at the first stage, training, and then

developing the employee, through education, to satisfy the organizations long-term needs

and the individuals’ career goals and employee value to their present and future

employers. Human Resources Development can be defined simply as developing the

most important section of any business its human resource by, “attaining or upgrading the

skills and attitudes of employees at all levels in order to maximize the effectiveness of the

enterprise” (Kelly 2001)[4]. The people within an organization are its human resource.

Human Resources Development from a business perspective is not entirely focused on

the individual’s growth and development, “development occurs to enhance the

organization's value, not solely for individual improvement. Individual education and

development is a tool and a means to an end, not the end goal itself”. (Elwood F. Holton

II, James W. Trott Jr).

Modern concept of human resources

Though human resources have been part of business and organizations since the first days

of agriculture, the modern concept of human resources began in reaction to the efficiency

focus of Taylorism in the early 1900s. By 1920, psychologists and employment experts in

the United States started the human relations movement, which viewed workers in terms

of their psychology and fit with companies, rather than as interchangeable parts. This

movement grew throughout the middle of the 20th century, placing emphasis on how

leadership, cohesion, and loyalty played important roles in organizational success.

Although this view was increasingly challenged by more quantitatively rigorous and less

"soft" management techniques in the 1960s and beyond, human resources had gained a

permanent role within an organization.

The HRD climate of an organization plays a very important role in ensuring the

competency, motivation and development of its employees. The HRD climate can be

created using appropriate HRD systems and leadership styles of top management. The
HRD climate is both a means to an end as well as an end in itself. In the recent past

simple instruments have been developed to measure the HRD climate in organizations.

These instruments are being widely used to assess periodically the climate, maintain

profiles and design interventions to further improve it. This unit presents a detailed

conceptual background of the HRD climate, various research studies available on HRD

climate and discusses an instrument to measure HRD climate that is being used by

different organizations. By the end of the unit the reader should be able to use the HRD

climate survey questionnaire to measure the HRD climate of his own organization.

Reader also will get an overview of the HRD climate existing in different organizations.


Perception about an organization’s goals and about decisions that a manager should take

to achieve these goals come not only from formal control systems but also through

informal organization. Both the formal and informal structure combine to create what is

called organizational climate.

The term ‘climate’ is used to designate the quality of the internal environment which

conditions in turn the quality of cooperation, the development of the individual, the

extent of member’s dedication or commitment to organizational purpose, and the

efficiency with which that purpose becomes translated into results. Climate is the

atmosphere in which individuals help, judge, reward, constrain, and find out about each

other. It influences morale and the attitudes of the individual toward his work and his

Organizational climate has been a popular concept in theory and research for sometime

and has received a great deal of attention in the past 25 years. Guion (1973) has stated

that “The construct implied by the term ‘organizational climate’ may be one of the most

important to enter the thinking of industrial psychologists in many years”.

Twelve reviews of climate literature have appeared since the mid-1960s. Though these

reviews had been critical of the conceptualization and measurement of the climate

construct, they have resulted in a significant understanding of the concept.

Hellriegel and Slocum (1974) define organization at climate as a ‘set of attributes which

can be perceived about a particular organization and/or its sub-systems, and that may be

induced in the way that organization and/or its sub-systems deal with their members and

environment”. This definition implied that in the measurement of organizational climate:

a) Perceptual responses sought are primarily descriptive rather than evaluative;

b) The level of inclusiveness of the items scales and constructs are macro rather than


c) The units of analysis tend to be attributes of the organization or specific sub-systems

rather than the individual;

d) The perceptions have potential behavioral consequences.

Schneider (1975) has prepared a working definition of climate:

“Climate perceptions are psychologically meaningful molar descriptions that people can

agree characterize a system’s practices and procedures. By its practices and procedures a

system may create many climates. People perceive climates because the molar
perceptions function as frames of reference for the attainment of some congruity between

behavior and the system’s practices and procedures. However, if the climate is one which

rewards and supports individual differences, people in the same system will not behave

similarly. Further, because satisfaction is a personal evaluation of a system’s practices

and procedures, people in the system tend to agree less on their satisfaction than on their

description of the system’s climate.”

By its very nature, ‘climate’ cannot be described concretely. Some alternative

characteristics are as follows:

— Focus on results versus focus on following work

— Individual accomplishment versus being a member of the team

— Initiative and risk-taking versus not rocking the boat

— Individual gains versus enhancement of organization objectives

— Tough mindedness versus dealing with people vs. avoidance of unpleasant actions

— The relative importance of participating management versus authoritarian


HRD climate is an integral part of organizational climate. It can be defined as perceptions

the employee can have on the developmental environment of an organization. This

developmental climate will have the following characteristics (Rao and Abraham, 1986):

— A tendency at all levels starting from top management to the lowest level to treat the

people as the most important resource

— A perception that developing the competencies in the employees is the job of every


— Faith in the capability of employees to change and acquire new competencies at any

stage of life

— A tendency to be open in communications and discussions rather than being

secretive (fairly free expression of feelings)

— Encouraging risk-taking and experimentation

— Making efforts to help employees recognize their strengths and weaknesses through


— A general climate of trust

— A tendency on the part of employees to be generally helpful to each other and

collaborate with each other

— Team spirit

— Tendency to discourage stereotypes and favoritism

— Supportive personnel policies

— Supportive HRD practices including performance appraisal, training, reward

management, potential development, job-rotation, career planning, etc.

Organizations differ in the extent to which they have these tendencies. Some

organizations may have some of these tendencies, some others may have only a few of

these and few may have most of these. It is possible to work out the profile of an

organization on the basis of these tendencies.

HRD climate contributes to the organizations’ overall health and self-renewing

capabilities which in turn, increase the enabling capabilities of individual, dyads, team

and the entire organization.


The elements of HRD climate can be grouped into three broad categories — general

climate, OCTAPAC culture and HRD mechanisms.

The general climate items deal with the importance given to human resources

development in general by the top management and the line manager The OCTAPAC

items deal with the extent to which Openness, Confrontation, Trust, Autonomy,

Proactively, Authenticity and Collaboration are valued and promoted in the organization.

The items dealing with HRD mechanisms measure the extent to which HRD mechanisms

are implemented seriously. These three groups were taken with the following


a) A general supportive climate is important for HRD if it has to be implemented

effectively. Such supportive climate consists of not only top management line
management’s commitment but good personnel policies and positive attitudes

towards development.

b) Successful implementation of HRD involves an integrated look at HRD) and efforts

to use as many HRD mechanisms as possible. These mechanisms include:

performance appraisal, potential appraisal, career planning, performance rewards

feedback and counseling, training, employee welfare for quality work life, Job-

rotation, etc.

c) OCTAPAC culture is essential for facilitating HRD. Openness is there when:

employees feel free to discuss their ideas, activities and feelings with each other.

Confrontation is bringing out problems and issues into the open with a view to

solving them rather than hiding them for fear of hurting or getting hurt. Trust is

taking people at their face value and believing what they say. Autonomy is giving

freedom to let people work independently with responsibility. Proactively is

encouraging employees to take initiative and risks. Authenticity is the tendency on

the part of people to do what they say. Collaboration is to accept interdependencies,

to be helpful to each other and work as teams.

The conventional connotation with which the term ‘climate’ has been used in literature is

‘Organizational Climate’. The concept of climate with specific reference to HRD context,

i.e. HRD climate, has been recently introduced by Rao and, Abraham (1986). Perhaps it

could be due to this reason that there is hardly any research work available in published


Since the HRD climate is somewhat similar to the conventional organizational climate,

an item-wise comparison of this questionnaire with four other questionnaires that

measure organizational climate is presented in order to establish the content validity of

this questionnaire. Thus, some of the items of the HRD climate questionnaire, are

exclusive to HRD climate; the rest being common with the items included in

organizational climate questionnaire. These exclusive items are related to OCTAPAC

culture which is specific to HRD climate. Thus, this questionnaire can be expected to

measure HRD climate.

To establish the factorial validity of the items instrument developed to measure HRD

climate, factor analysis was conducted. Emergence of single/few factors with large Eigen

value from among the presented items is an indication of the factorial validity of the

questionnaire. The results of the principal components method of factor analysis are

presented down.

The first factor accounts for 44.7% of variance of climate and nine factors explain 84.1%

of variance of climate. Thus, with a reasonable degree of confidence it can be concluded

that this 38 items instrument is measuring climate well enough.

To understand various independent dimensions of climate these factors were rotated

using Varimax method and the results are presented in the following table 2.

The Varimax method yielded three major dimensions or factors of climate which are

listed in another table.

Thus these three dimensions seem to be related to counseling, autonomy and proactively,

training and philosophy. Thus, on the whole the climate is hypothesized to consist of

major components, viz, general climate OCTAPAC culture and HRD mechanisms (Rao

and Abraham, 1986). This study points out that the climate has the HRD

mechanisms/instruments as the major dimensions.

To establish the reliability of this HRD climate questionnaire, the internal consistency

(that is, homogeneity of items) is tested using Cronbach Alpha. An alpha value of at least

0.80 indicates high consistency or internal agreement between an item and the entire set

of all the items in the questionnaire (Guy et. al 1987). The Cronbach Alphas related to

each item of the questionnaire is presented in Table 4. Since each alpha is large (greater

than 0.80) it can be concluded that the internal consistency of this questionnaire is

acceptable and that all the items proposed to be included in the questionnaire are

necessary and dropping any one of them does not improve the internal consistency of the


To measure the HRD climate prevalent in any organization, this questionnaire was

administered to several managers in the organization at various hierarchical levels. Each

manager is required to score each of the 38 items on a 1-5 point scale. The average of the

responses of all the managers is taken as item score for the organization. Average of all

the scores of all the items is taken as the HRD climate.


Several Indian organizations were surveyed for their HRD climate and data was collected

from 2673 respondents from 52 organizations and the results of which are presented here.

It is interesting to note that the average extent of climate prevalent in all the 52

organizations is about 54% which is rather low. To see which components are favorable

and which are not, an item-wise analysis is conducted and results are discussed below.

The following are the items with respect to which the HRD climate is not favorable, i.e.

the .average item-wise scores are below 50%.

a) Top management goes out of its way to make sure that employees enjoy their work.

b) There are mechanisms in the organizations to reward any good work done or any

contribution made by the employees.

c) Employees are encouraged to experiment with new methods and try out creative


d) When behavior feedback is given to employees they take it seriously and use it for


e) Employees in this organization take pains to find out their strengths and .weaknesses

from the supervising officers or colleagues.

f) Employees returning from training programmers are given opportunities to try out

what they have learnt.

g) Employees are encouraged to take initiative and do things on their own without

having to wait for instructions from supervisors.

h) Career opportunities are pointed out to juniors by senior officers in the organization.

i) This organization ensures employee welfare to such an extent that the employees can

save a lot of their mental energy for work purposes.

The following are the items with respect to which the HRD climate is favorable, i.e., the

average item-wise scores are above 60%.

a) The top management believes that human resources are an extremely important

resource and that they have to be treated more humanly.

b) People in this organization are helpful to each other.

c) Promotion decisions are based on the Suitability of the promoter rather than on


d) Performance appraisal reports in our organization are based on objective assessment

and adequate information and not on favoritism.

e) When employees are sponsored for training, they take it seriously and try to learn

from the programmed they attend.

f) Employees are not afraid to express or discuss their feelings with their superiors.

Thus it appears that there is a gap between belief and practice, at the top management

level, namely, though the top management believes that human resources are their most

important asset, and yet they do not seem to do much in developing their human
resources. Except for promotion decisions, the reward mechanisms are not seen to be

favorably implemented. Though most of the organizations spend huge amounts of money

on training and the employee also take their training seriously, the organizations dc not

seem to be making any effort to make effective use of the investments made in training

the employees by not assigning them the tasks related to the areas in which they are


It is rather strange to note that HRD climate is open enough for the employees to discuss

their feelings with their superiors, yet the employees are reluctant to accept the feedback

given by their superiors and use it for their development. This indicates that the

organizations are creating a climate for openness insofar as expression of feelings is

concerned, but not for receiving the feedback. It is unfortunate to note that the

organizations do not seem to be fostering any creativity and encouraging any initiative on

the part of the employees to perform their own tasks.


The following factors may be considered as contributing to HRD climate:

1) Top Management Style and Philosophy: A developmental style a belief in the

capability of people participative approach openness and receptivity to suggestions

from the subordinates are some of the dimensions that contribute to the creation of a

positive HRD climate.

2) Personnel Policies: Personnel policies that show high concern for employees, that

emphasis equity and objectivity in appraisals policies that emphasis sufficient

resource allocation for welfare and developmental activities, policies that emphasis a

collaborative attitude and trust among the people go a long way in creating the HRD


3) HRD Instruments and Systems: A number of HRD instruments have been found

to generate a good HRD climate. Particularly open systems of appraisal with

emphasis of counseling, career development systems, informal training

mechanisms, potential development systems etc. contribute to HRD climate.

4) Self-renewal Mechanisms: Organizations that have built in self-renewal

mechanisms are likely to generate a positive HRD climate.

5) Attitudes of Personnel and URD Staff: A helpful and supportive attitude on the

part of HRD and personnel people plays a very critical role in generating the HRD

climate. If the personal behavior of any of these agents is not supportive, the HRD

climate is likely to be vitiated.

6) Commitment or Line Managers: The commitment of line managers to the

development of their subordinates is a very important determiner of HRD climate. If line

managers are willing to spend a part of their time for their subordinates, it is likely to

have a positive impact.


The main objective of my study is to analyse the HRD climate and system

implementation in the Camphor & Allied Products Ltd. (CAP). As the organisation is not

very large and my research is empirical in nature that’s why I have covered the following

aspects of HRD climate and system.

HRD System:-

1. Transfer and Rotation

2. Reward and Punishment

3. Performance Appraisal

4. Feedback

5. Training and Development

6. Career Planning

7. Succession Planning

8. Participation

HRD Climate:-

1. Non Financial Motivation and Job Satisfaction

2. Communication Process

3. Collaboration and unity among employees


The broader purpose of the present study is to explore Human Resource Development


More specifically the objectives of the study are:

• To understand different criteria under which the HRD Climate of any

organization is defined.

• To understand the impact and effects of HRD Climate on the employees working

in Indian industries.

• To analyze prevailing structure of HRD Climate in Indian Industries and its

present impact on the employees.

• To analyze weaker sections of this HRD Climate.

• To study in detail the view point of employees towards the implementation of

HRD Climate.


Research design is simply the framework or plan for a study, used as a guide in collecting

and analyzing data. There are three types of Research Design:-

1. Exploratory Research Design:- The major emphasis in exploratory

Research design is on discovery of ideas and insights.

2. Descriptive Research Design:- The Descriptive Research Design

Study is typically concerned with determining the frequency with which

something occurs or the relationship between two variables.

3. Causal Research Design:- A Causal Research Design is concerned

with determining cause and effect relationship.

For the study, Descriptive Research Design was undertaken as it draws the opinion of

employees/ workers on a specific aspect.


(a) Population:-

Element: Managers (15) & Employees (100 per shift)

Sampling Unit: Departments- Sections- Managers- Employees

Extent: Camphor & Allied Products Ltd. Bareilly.

Time: July’ 06 – Apr’ 07.

(b)Sampling Unit:-

The organisation structure of has been classified into three Department

viz. Finance, General & Administration and Works, which are headed by Mr. Ravi Vaish

(Manager Finance), Mr. S.P. Singh (General Manager, Commercial & Administration)

and Mr.V.K. Tyagi (General Manager, Works). These heads are followed by – Mr.
Rajeeva (Assistant Manager, Finance), Mr. Kamal M. Mishra (Dy. Administrative

Officer), Mr. Divakar Kumar (Assistant Manager, Commercial), Mr. Milan Khandelwal

(Plant Manager), Mr. Epin Bargie ( Manager, Production) and Mr. P.L. Shah (Manager,


The list of employees, total 375(100 per shift) was provided by the organisation.

(c) Sampling Frame:-

List of managers from which sample is actually drawn is as follows:

1. Mr. Ravi Vaish (Manager Finance)

2. Mr. Rajeeva (Assistant Manager, Finance)

3. Mr. Ravi Ranjan ( Senior Officer, Stores)

4. Mr. B.P. Khandelwal ( Senior Officer, Taxation)

5. Mr. S.P. Singh (General Manager, Commercial & Administration)

6. Mr. Kamal M. Mishra (Dy. Administrative Officer)

7. Mr. Divakar Kumar (Assistant Manager, Commercial)

8. Mr. R.A. Shammi (Assistant Liason, Officer)

9. Mr. Quadir Ahmed ( Assistant Officer, Personnel)

10. Mr. N.K. Bali (Senior Sales Officer)

11. Mr. V.K. Tyagi ( General Manager, Works)

12. Mr. Milan Khandelwal (Plant Manager)

13. Mr. Epin Bargie ( Manager, Production)

14. Mr. P.L. Shah (Manager, Engineering)

15. Mr. Sanjay Paul (Dy. Manager, Engineering)

(d) Sample Size:-

9 Managers + 19 Employees

(e) Sampling Method:-

There are two methods of sampling:-

1. Probability Sampling: It is based on the concept of random selection of a controlled

procedure that assures that each Population element is gives a non-zero chance of

selection. Probability Sampling is of following types:

1. Simple Random

2. Systematic

3. Cluster

4. Stratified

5. Double

2. Non-Probability Sampling: Non probability sampling is non-random and subjective.

That is each member does not have a known non zero chance of being included. Types of

Non-Probability Sampling

1. Convenience

2. Judgement
3. Quota

Researcher selects the sample as per their convenience.

For this research work I have choosen Non- Probability Convenience Sampling because

time limit for the completion of the work is limited and also managers and employees are

not available all the time.


Data for the present study is collected from two sources:

a. Primary:- The first hand information is collected with the responses of

questionnaire. For this purpose a questionnaire is given to the managerial staff of

the CAP. They were asked to choose the best alternative among the given

alternatives, as per their knowledge, experience and observation.

b. Secondary: - Secondary data will be collected from published sources like

Journals, Magazines, various newspapers and published books.

In every project report it is considered to be an important part to find and analyze all the

facts and figures been produced by the research work. It helps in drawing out final

conclusions and reaching at a final result or to find the solution of the problem for which

the research is being done.

In the winter project the research is been carried out on the HRD climate of Indian

Industries, their layout, implementation, policies, rules and regulations that are been

carried out in an organization. The research is done to analyze that whether the HRD

structure is fulfilling the demands of the employees or any need or change is been

required in their schedule or not. For that purpose a small questionnaire session is been

conducted in order to find out the employees’ views regarding the current HRD Climate

implemented in their organization.

Suggestions and Recommendations

The project report carries with it few limitations, on which the accuracy of the text

written will depend.

 The first and foremost limitation is regarding the sources of information. The

information contained has been obtained from sources believed to be reliable and

in good faith, but which may not be verified independently.

 The second limitation is that some of the calculations are based on certain

assumptions considered appropriate.

 Using several statistical tools derives the estimates. Hence the findings obviously

carry all the limitations of the statistical tools used.

 Same sets of data from different sources are different. Since not all the data are

available from a single source, an attempt has been made to standardize the data

wherever required, which is essential to maintain uniformity through out the


 The aggregate figures for various parameters are subject to exclusion or inclusion

of various constituent variables. While sincere efforts are made to ensure the

absence of mismatch, the extent to which this can be done is limited.

 One more important limitation occurred while conducting questionnaire is that

most of the respondents had either missed it or many hadn’t returned it or many

hadn’t filled it particularly. So to derive actual data becomes impossible based on

those questionnaires.

1. Kothari,C.R.,Methods and Techniques,New Delhi,New Age International Pvt,

Ltd., 2005


Dear Respondent,
It is to submit that I am a student of MBA (final year) of U P Technical University,
Lucknow. For partial fulfillment of MBA degree I am conducting a research project in
your esteemed organization. You are requested to fill the questionnaire. The responses
given by you shall be kept confidential.
Puja Mittal

Que 1). Promotion decisions are based on the suitability of the promotee rather than on

(a). Always (b). Sometimes

(c). Rarely (d). Never

Que 2). Is there Job rotation practiced in the organisation?

(a). Always (b). Sometimes

(c). Rarely (d). Never

Que 3). Job-rotation in this organisation facilitates employee development.

(a). Always (b). Sometimes

(c). Rarely (d). Never

Que 4). There are mechanisms in this organisation to reward any good work done or any
contribution rnade by employees

(a). Always (b). Sometimes

(c). Rarely (d). Never

Que 5). Performance appraisal reports in our organisation are based on objective
assessment and adequate information.

(a). Always (b). Sometimes

(c). Rarely (d). Never

Que 6). When behaviour feedback is given to employees they take it seriously and use it
for development.
(a). Always (b). Sometimes

(c). Rarely (d). Never

Que 7). When employees are sponsored for training, they take it seriously and try to
learn from the programmes they attend.

(a). Always (b). Sometimes

(c). Rarely (d). Never

Que 8). Employees returning from training programmes are given opportunities to try out
what they have learnt.

(a). Always (b). Sometimes

(c). Rarely (d). Never

Que 9). Seniors guide their juniors and prepare them for future responsibilities/ roles they
are likely to take up.

(a). Always (b). Sometimes

(c). Rarely (d). Never

Que 10). Career opportunities are pointed out to juniors by senior officers in the

(a). Always (b). Sometimes

(c). Rarely (d). Never

Que 11). Delegation of authority to encourage juniors to develop handling higher

responsibilities is quite common in this organisation.

(a). Always (b). Sometimes

(c). Rarely (d). Never

Que 12). The top management is willing to invest a considerable part of their time and
other resources to ensure the development of employees.

(a). Always (b). Sometimes

(c). Rarely (d). Never

Que 13). The top management of this organisation goes out of its way to make sure that
employees are invited for participation in decision making.

(a). Always (b). Sometimes

(c). Rarely (d). Never

Que 14). When an employee does good work his supervising officers take special care to
appreciate it.

(a). Always (b). Sometimes

(c). Rarely (d). Never

Que 15). Employees are afraid to express or discuss their feelings with their superiors and

(a). Always (b). Sometimes

(c). Rarely (d). Never

Que 16). When problems arise people discuss these problems openly and try to solve

(a). Always (b). Sometimes

(c). Rarely (d). Never

Que 17). Team spirit is of high order in the organisation.

(a). Always (b). Sometimes

(c). Rarely (d). Never

Que 18). People lacking competence in doing their jobs are helped to acquire

(a). Always (b). Sometimes

(c). Rarely (d). Never

Que 19). People in this organisation are helpful to each other.

(a). Always (b). Sometimes

(c). Rarely (d). Never