It was 25 years ago that our country witnessed the emergence of a new HRD culture in our country with Prof Udai Pareek and Prof T.V.Rao heading the movement.
What started as a "Review Exercise of the Performance Appraisal System" for L&T by two consultants, Prof Udai Pareek and Prof T.V. Rao from the Indian Institute Of Management, Ahmedabad (IIMA), resulted in the development of a new function - The HRD Function.
In the early seventies, this company, in association with IIMA the reviewed all aspects of its operations. In 1974, the consultants studied the organisation and prepared a new integrated system called Human Resource Development ( HRD) System. This was probably the first of its kind in India. The new system clearly established the linkages between the various personnel related aspects such as performance appraisal, employee counselling, potential appraisal training, etc. Prof Pareek and Prof Rao presented an approach paper to the top management on the new ideas and this was accepted.
The Company wanted the implementation also to be done by the consultants, as it was not sure that enough expertise was available on the human process within the organisation. The consultants, however felt that L&T managers had enough competence and insisted that an internal team undertake this task. Thus, the work was undertaken by an internal team with the help of the consultants and this was very satisfying.
Based on the recommendations of the approach paper, a very high level role was created at the Board level to give a greater thrust to the new system. A separate HRD Department was created. A high level internal team headed by a General Manager, monitored the progress of implementation of the new system initially, which was subsequently handed over to the HRD Department.
The HRD system has since then been reviewed from time to time and improvements made, retaining the basic philosophy. The original consultancy...