Human Resource Development

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Research Article

focuses on the analysis and resolution of managerial issues based on analytical and empirical studies.

A Study of HRD Concepts, Structure of HRD Departments, and HRD Practices in India T V Rao, Raju Rao, and Taru Yadav
Human Resource Development (HRD) as a function has evolved in India indigenously from the year 1975 when Larsen&Toubro (L&T) conceptualized HRD as an integrated system and decided to separate it from the personnel function. Since then, most organizations have started new HR departments or redesignated their personnel and other departments as HRD departments. Today, there are high expectations from HRD. Good HRD requires well-structured function, appropriately identified HRD systems, and competent staff to implement and facilitate the change process. This paper attempts to: • Examine the way the HRD function is structured in the Indian corporate sector. • Highlight the current HRD practices in India in relation to various HRD systems. • Examine the extent to which HRD implemen tation meets the criteria of the Integrated HRD Systems Approach of Pareek and Rao (1975, 1977), and using this analysis, comment on the prerequisites for the success of other recent HRD frameworks for Asian countries.

A number of human resources development frameworks has come into existence in the last ten years from various parts of the world. Indian organizations have begun to use these for improving their HRD systems and their impact. An Integrated HRD Systems Approach was evolved for Indian organizations at the Indian Institute of Management, Ahmedabad by Udai Pareek and T V Rao for L&T. This paper examines the current status of structuring of the HRD function and HRD subsystems in India against this "Integrated HRD Systems" framework. The paper also comments on the recent approaches to HRD. Data from HRD audits of 12 Indian organizations indicated that HRD function is not well structured, is inadequately differentiated, poorly staffed, and fails to meet the requirements of this framework. In the light of these experiences of Indian organizations in implementing this framework, the paper points out the prerequisites for success of other HRD frameworks in India. T VRao is Chairman, Raju Rao is Consultant, and Taru Yadav is Research Associate at the T VRao Learning Systems Private Limited, Ahmedabad. An earlier version of this paper with data from eight Indian organizations has been submitted for presentation at the Academy of HRD Research Conference, USA, Oklahoma, February-March 4, 2001.

Theoretical Frameworks of HRD
Pareek and Rao's Framework
In 1975, L&T — a prominent engineering company in India — had appointed two consultants (Udai Pareek and TV Rao) from the Indian Instifute of Management, Ahmedabad to study the performance appraisal system and make recommendations for improving it. They (Pareek and Rao, 1975) studied the system through interviews and suggested a new system. They recommended that "... Performance Appraisal, Potential Appraisal, Feedback and Counselling, Career Development and Career Planning, and Training 49


Vol. 26, No. 1, January-March 2007

and Development get distinct attention as unique parts of an integrated system which we call the Human Resources Development System" (see Pareek and Rao, 1998, p 24). This system was proposed as a separate system with strong linkages with the personnel (human resources) system. In their second report on the human resources system in L&T, Pareek and Rao (1977) recommended that the personnel fun- ction be viewed as Human Resources Function (HRF) and suggested a trifurcated function: Personnel Administration, HRD, and Worker Affairs. Adding Organization Development (OD) also to the HRD function, they recommended that "... Since OD is being added now, it is necessary to strengthen that part of HRD. We, therefore, recommend that the company may appoint a Manager (OD) with two officers to do a lot of research work which will soon...
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