1 | P a g e

PREFACE

Learning Categories you, and practicing on that learning specialize you
The importance of any academic courses would gain advantage and the acceptance of the true
form, only through practical experiences. Hence it is quite necessary to put theories as into
task.
Someone has greatly said that practical knowledge is far better than classroom teaching.
During this project I fully realized this and come to know about the present real world .The
present report entitled as Correlates of HRD climate in Indian organizations a fruitful
outcome of my research done during the course of my fourth semester of MBA
programmed. This research report forms an integral part of my MBA degree course at
Technical Education Research Institute, P.G. College, Ghazipur. Human Resource
Development is the key department of the any business. Human Resource Development is the
main part behind the companys success or failure. Personnel management is that part of
management, which concerned with people at work and with their relationship within an
enterprise.
The Aims and Objectives of this research are to have an in-depth knowledge of the HRD
climate in India. I have tried my level best to make it simple and understandable. The
findings were in favor of HRD being vital for the Indian organization and they are not
diminishing in todays world, but they are at the booming stage; and every organization
would want to use HRD. The research deals with basics of HRD and its climate affect in
organization. The first chapter is dedicated to the introduction of the HRD, history of HRD
and its climate, functions of HRD and definition of HRD. It also deals the factors affecting
the HRD. This chapter gives detail about the HRD climate with reference to pharmaceutical



2 | P a g e

industries. It also deals the challenges and problems come at the time of human resourse
development. The second chapter deals with the Objective of the study and Importance of the
study& also included the Scope of the study. The third chapter is a summary of the various
research methodologies used for the development of the project. The methodology used for
the implementation of the assigned project is based on secondary data. The whole study is
based on secondary data. The fourth chapter deals the data analysis and interpretation Chapter
five deals with the findings and recommendations related to the research report. The
conclusion& Limitation of the project is provided in chapter six and this chapter also deals
with the Bibliography & Reference of this project.

Shivani Srivastava













3 | P a g e

ACKNOWLEDGEMENT
Before I thank anybody for the compilation of this work I would like to thank Almighty for
providing guidance and me all the necessary help. It is grace only that I have completed this
work.
An understanding of the study like this is never the outcome of the efforts of an individual;
rather it bears the imprint of a number of individuals who directly helped me in completing
the present study.
First & foremost, I would like to express my regard to Mr. Rahul Anand Singh (H.O.D. of
M.B.A.) and Dr. Neetu Singh, the training & placement-in-charge and the honorable
Readers of M.B.A. Department for this constant encouragement and support. I would also
like to express immense gratitude towards supervisor Dr. Neetu Singh, for providing the
knowledge, guidance and cooperation in research report.
I am also sincerely thankful to all my friends for giving me opportunity and resource to work
on the research report and giving me support whenever necessary.


Shivani Srivastava










4 | P a g e

INTRODUCTION

HRD Philosophy, The patterns of relationships at work reflect the HRD philosophy. In some
organizations, the practices and philosophy of HRD are perpetuated by the managers who are
encouraged to follow the role model of their seniors. In the process of organizational
socialization, they internalize the values and attitudes of their leaders. The entire process is
thus institutionalized. This is somewhat akin to the kind of "apprenticeship" prevailing in
Japanese organizations to prepare young people for positions of responsibility. Human
Resource Development is the key department of the any business. Human Resource
Development is the main part behind the companys success or failure. Personnel
management is that part of management, which concerned with people at work and with their
relationship within an enterprise he men and women who make up an enterprise and having
regard for the well being of individual & of working groups to working groups to enable
them to make their best contribution to its success.
The meaning of Human resource management, labor management or staff management
means quite simply the task of dealing with human relationship within an organization.
Human resource Management is a continuous process. It cannot stop. Personnel management
is a never-ending process. It helps in achieving objectives of company. This is done by proper



5 | P a g e

perform of personnel function like recruitment, selection, training & development, labor
activity, motivation, welfare etc. it also helps to keep a smooth relationship between
employers & employees. 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 employees present
and future effectiveness is called development. 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.

Meaning of HR+ D+ Climate
HR means employees in organization, who work to increase the profit for organization.
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



6 | P a g e

interact and the way members of the organization conduct themselves with outsiders.
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
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 what is needed to Develop Organizational Climate in
Organization. Human resources climate refers to a set of measurable properties of the work
Environment, that are perceived by the people who live and work in it, and that influence
their motivation and behavior. Human resources climate description that have been
determined to significantly impact an organizations profitability and productivity are
flexibility, responsibility, standards, rewards, clarity and team commitment. At individual
employee level the concept is human resources climate which is formed by individual
perceptions are often aggregated or collected for analysis and understanding at the team or
group level, or the divisional, functional, or overall organizational level. As stated above, it is
not possible to completely separate the human resources climate system from overall
organizational climate. In the present study, the human resources climate is considered as part
of organizational climate. There are several approaches to the defining the concept of human
resources climate. However there are two related difficulties in defining the human resources
climate. The first difficulty is how to define climate, and second is how to measure it
effectively on different levels of analysis. The success of an organization is equally
determined by the skill and motivation of its members as by any other factor. This fact that
members motivation and skill is most important in success is well-known in the literature on



7 | P a g e

Management. However recently focused has been changed to the way human resources
practices and activities can be used to ensure organizations successfully meet the challenges.
One of the most important functions of human resources system is to create and develop
organizational culture in which supervisor-subordinate relationships, teamwork, and
collaboration are some of the features which help and contribute to the professional well
being, motivation, and pride of employees.

Human resources climate consists of many aspects of culture and behaviors of seniors in the
organization and depends on the way employees, the most important resources are treated in
the organization. Opportunity for employee development, trust in the capability of
employees, open communication, encouragement for experimentation and taking up
challenges and risks associated with it. Helping the employees to identify their strengths and
weaknesses, in turn creating a general climate of confidence and trust, collaboration and
autonomy, coupled with supportive human resources policies and practices. If the
organizations have to create good human resources climate, there are certain pre-requisites in
form of an organizational culture. Once the organizations are helped to build such human
resources culture, it will ultimately helps in creating a congenial and healthy human resources
climate, Pareek (1999) developed an instrument to measure organizational climate. As
mentioned above, organizational culture is the broader framework under which
organizational climate and human resources climate is developed. If the organization
understands the way to build an excellent human resources culture, the same can be easily
translated in human resources climate.






8 | P a g e


According to Pareek (1999) the human resources culture should have
Following characteristics:

It should be a learning culture
The culture should facilitate the identification of new competencies of people on a
continuous basis.
The culture should facilitate bringing out the hidden talents and utilize the potentials
of people.
It should help in developing new competencies.
The culture of the organization should have in built in motivational value.
Employees should take initiatives and work on their own.
The culture should enable people to take initiative and experiment. Initiative and
experimentations are very important for development. They enable
Individuals, teams, and organizations to discover new potential in them.
The culture should bring joy and satisfaction in work. Once the employees enjoy
their work it will result in overall good work culture. Relationships are important
have an enabling capability.
It should improve creativity and the problem solving abilities of people.
It should create team spirit and high morale.
The culture should enhance the action orientation in the total organization.
Members should take initiatives.
According to him, such a culture can be termed as OCTAPACE, which is an acronym for
openness, collaboration, trust and trustworthiness, authenticity, probation, autonomy,
confrontation and experimentation.



9 | P a g e

a) Openness is considered where people feel free to express their ideas, opinions and
feelings to each other irrespective of their level designation etc. The comparative openness in
the system influences the design of Human resources systems. Organizations can be termed
as either completely open to completely close. It is not possible to find an organization at the
two extreme ends. The organizations tend to be towards one or the other end. The amount of
openness of the organization will be an important factor in determining the nature of the
various dimensions of Human resources systems

b) Collaboration is the culture in which people are keen to help each other. They are ready
to put their interest in the background for the larger interest of the organization. Team spirit
is the key and people are directed by the broad organizational objectives than the individual
interest. People are willing to help each other in order to achieve the organizational goals.
Organizations interests are above all and individual or departmental loyalties take the back
Seat. There are no interdepartmental or inter-personal conflicts and the spirit of co-operation
and collaboration is present.

c) Trust and trustworthiness, it is a situation in which there is mutual trust and respect for
each other. Members work in an informal atmosphere by having full faith and trust. The
members are self disciplined hence there is no need for any supervisory control or
monitoring. The people respect and value each other. To create a culture of mutual trust it is
essential to have a culture of trust worthiness in which the members have proven themselves
to over a period of time. If every members of the organization becomes trustworthy and is
reliable, mutual trust gets built up automatically.




10 | P a g e

d) Authenticity is the value underlying trust. It is the willingness of a person to
acknowledge the feelings he /she has, and accept himself / herself as well as other who relate
to him/her as persons. Authenticity is speaking the truth without any fear and keeping the
promises made. It is higher than the trust or trustworthiness. The members commit and meet
the commitments without giving false promises. The members always commit and deliver as
per commitment.

e) Proactive being a proactive culture means taking initiatives and explore the alternatives
well in advance. Instead of reacting to any particular situation, planning is done in order to
take care of eventualities and anticipated situations. This culture encourages the members to
take initiatives for new activities, new processes. This can be in all the areas of for overall
process efficiency. Like wok processes, reduction in cost, quality improvement and other
areas in which improvement can be done.

f) Autonomy This culture of autonomy is when members enjoy a great degree for freedom
in their activities. They are the decision makers in their areas. Autonomy is very important to
bring out the best in areas where individuals need freedom to work the way they want to
work. It is very relevant in creating academic excellence, knowledge industry, information
technology, research and development etc.

g) Confrontation This term is used in relation to a culture of facing problems upfront. In
this culture, the problem is put in front rather than the back to escaping the problems. A better
term would be confrontation exploration that implies facing a problem and working jointly
with other concerned to find its solution. If an organization encourages people to recognize a
problem, bring it to people concerned, explore with them to understand and search possible



11 | P a g e

ways of dealing with it. Members confront the problems as areas needing improvement rather
than finding fault with anybody. This culture helps in building problem solving abilities of
the organizations.

h) Experimentation helps in build a culture in which the members of the organization try
out new experiments on their own and take decisions with respect of conducting the
experiments. The culture of experimentation manifests the risk taking aspect of the
organization. This developing newer ideas and simplifies things. There is an emphasis on
value creation and importance is given to innovating and trying out new ways of dealing with
problems in the organization. When you have openness, members can express their opinion
easily. Similarly when one is provided with autonomy and collaboration happens naturally.
Trust and authenticity go together. Proactive and experimentation go together. These four
pairs are the four foundation of human resources culture. In order to understand the role of
human resources climate and its impact on the organizations, some past studies on the subject
are examined below: Few studies listed below use the term human resources development
climate. The present study considers human resources development as a component of human
resources system; hence these studies are also listed. Rao and Abraham (1986), carried out
first survey by using this instrument to measure the Human resources development climate in
Indian organizations. They found that the general Human resources development climate in
the organizations appears to be at an average level (54%). The most important factor
contributing to this seems to be a general indifference on the part of the employees on their
own development. Rajendran (1987) reported significant correlation between organizational
Climate and job satisfaction in a public sector industry in Tamil Nadu, India. Sharma (1987)
examined the effects of organizational climate on job satisfaction, sense of participation, role
stress and alienation in private sector and public sector and found that the private sector and



12 | P a g e

the public sector varied significantly on the dominant climates and there was significant
correlation between the climate variable and role stress variables. Abraham (1989) observed
that Human Resources Development climate is a powerful intervening variable in translating
Human resources development practices into profit. Abraham (1989) conducted a study
which revealed the linkage between the Human resources development climate and
organizational performance in financial terms. Even if the climate does not show any direct
linkages at a given point of time, logically it makes sense to have a good human resources
climate for the benefit of the organization. Srivastava (1994) studied a group of executives
and supervisors and reported that overall organizational climate is positively related with job
involvement and higher order needs (self esteem, autonomy, and self actualization) are
related with job involvement. Hart, Griffin et al (1996), has found that organizational climate
plays an important role and lack of proper organization climate model accounts for at least
16% single-day sick leave and 10% separation rates in one organization. Venkateswaran
(1997) found that, to a large extent, a favorable Human resources development climate was
prevalent in a public sector undertaking in India. Ali and Akhtar (1999) explored the effect of
organizational climate on job satisfaction and they reported that those who scored high on
organizational climate also differed significantly on job satisfaction scale. Rose Dennis and
colleagues (2001-2004) conducted a number of studies and they found a very strong link
between Organizational Climate and employee reactions such as stress levels, absenteeism
and commitment and participation. Pillai's (2008) study identified that HRD climate existing
in banks as moderate. This study further found that a supportive HRD climate in banks
stimulated the learning orientation of the employees. Saraswathi (2010) conducted a study on
Human resources development climate: in software and manufacturing organizations. The
study was aimed at assessing the extent of developmental climate prevailing in manufacturing
and software organizations in India and also comparative analysis. The study revealed that



13 | P a g e

the three variables: general climate, HRD mechanisms and OCTAPACE culture are better in
software organizations compared to manufacturing. The findings indicate significant
difference in the development climate prevailing in software and manufacturing
organizations. Lather et al (2010) conducted a study on organization culture in selected
organizations in the manufacturing sector in the NCR. The objective of the study was to
compare the organizational culture of the selected companies in the manufacturing sector and
to identify and measure the perceived organizational culture and its various dimensions. The
result shows that the executives and non-executives perceive the culture differently.

THE FACTORS REQUIRED FOR GOOD HRD CLIMATE
TOP TO BOTTOM EFFORT
MOTIVATOR ROLE OF MANAGER AND SUPERVISOR
FAITH UPON EMPLOYEES
FREEDOM OF EXPRESSION OF FEELINGS
FEEDBACK
DISCOURAGING STEREOTYPES AND FAVORITISM

Top to Bottom effort: - Organization is considered to be complete organization after
including top authority to bottom line of workers. And whenever we talk about development
at organizational level effort is needed from top level to bottom level. Top authority should
not have thinking in their mind that their task is to only take decisions but they should also
emphasized on proper implementation of decision by adopting various controlling technique.
Bottom level workers should have loyal mind-set towards their organization. Bottom level
workers have to work with dedication. They should have realization that organization is their
organization.



14 | P a g e


Motivator role of Manager and Supervisor: - To prepare Human Resource Development
Climate, Manager and Supervisors 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 employees 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.

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
Climate.

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.

Helpful nature of employees: - Whenever we talk about 100% effort then we have to talk
about employees effort too. Nature of employees should be helping for management and for
its colleagues. They should be always read to help to customers too.



15 | P a g e


Supportive personnel management: - Personnel policies of organization should motivate
employees to contribute more from their part. Top managements 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.

Components of HRD Climate
Organizational Structure
An organization s structure is actually a snapshot of a work process frozen in time so that it
can be viewed 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 problems that may arise.






16 | P a g e

Organizational Culture
Organizational culture is the pattern of beliefs knowledge attitudes and customs that exists
within an organization. Organizational culture can be supportive or unsupportive positive or
negative.

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 from recruitment to retirement
whole process should be according to employees .
An organizations success is determined as much by the skill and motivation of
its members as by almost any other factor. While this has always been true, recent changes
focus attention on ways human resources development activities can be used to ensure
organizations have what it takes to successfully meet the challenges. Human Resource
Development (HRD) is a process by which the employees of an organization are helped, in a
continuous, planned way acquire or sharpen capabilities required to perform various
functions associated with their present or expected future roles, develop their general cap-
abilities as individuals and discover and exploit their potentials for their own and/or
organizational development purposes, and develop an organizational culture in which
supervisor-subordinate relationships, teamwork, and collaboration among sub-units are strong
and contribute to the professional well being, motivation, and pride of employees HRD
climate is characterized by the tendencies such as treating employees as the most important
resources, perceiving that developing employees is the job of every manager, believing in the
capability of employees, communicating openly, encouraging risk taking and
experimentation, making efforts to help employees recognize their strengths and weaknesses,
creating a general climate of trust, collaboration and autonomy, supportive personnel policies,



17 | P a g e

and supportive HRD practices. An optimal level of development climate is essential for
facilitating HRD activities (Rao & Abraham 1986). The top management subscribing to these
values is a starting point. When a critical mass internalized these values, there emerges a
conducive climate for HRD. This positive HRD climate renders the existing systems more
effective and makes the organizations more receptive to the introduction of relevant
additional system (Athreya 1988). A healthy HRD climate certainly bolsters the overall
internal environment of the organization, fosters employee commitment,
Centre for HRD, Developed a 38-item HRD climate questionnaire to survey the extent to
which development climate exists in organizations. Using this instrument the first survey of
HRD climate in Indian organizations was carried out by Rao and Abraham (1986). They
found that the general HRD climate in the organizations appears to be at an average level
(54%). The most important factor contributing to this seems to be a general indifference on
the part of the employees on their own development. In another study, Abraham (1989)
observed that HRD climate is a powerful intervening variable in translating HRD practices
into profit. Venkateswaran (1997) found that, to a large extent, a favorable HRD climate was
prevalent in a public sector undertaking in India. Srimannarayana (2001) identified below
average level of HRD climate in a software organization in India. However, Agarwala (2002)
found that the HRD climate was significantly more developmental in IT industry when
compared to the automobile industry. Mishra & Bhardwaj (2002) concluded that the HRD
climate in a private sector undertaking in India was good. Rodrigues's (2004) study in the
engineering institutes in India found the HRD climate highly satisfactory. Srimannarayana
(2007) found that a moderate HRD climate was prevailing in Dubai organizations. Pillai's
(2008) study identified that HRD climate existing in banks as moderate. This study further
found that a supportive HRD climate in banks stimulated the learning orientation of the
employees. The Present Study using the questionnaire developed by XLRI, the present study



18 | P a g e

was conducted in India to find out the extent of HRD climate prevailing in the organizations
in India. The information was collected from 1905 respondents working in 42 organizations.
Among them 18 were in manufacturing sector producing a wide variety of products such as
steel, automobiles, medicines, electrical and electronic equipment, fast moving consumer
products etc.
HRD encompasses the development oriented activities of the organization through employee
satisfaction. For an Individual to perform productively, the climate prevailing in the
organization needs to be Conducive for his development. A review of literature in area of
HRD Climate reveals that it has emerged as crucial factor for competitive advantage in
current business scenario. Deal & Kennedy (1982) and Peter & Waterman (1982) suggest that
organizational culture can influence performance and commitment in an organization and a
high degree of organization performance is related to a strong culture that is a culture with
well integrated and effective set of values, belief and behaviors. In this context, it has also
been established in Helena et.al. (2003) investigation to find out how the perceived
organizational climate of a work place was related to symptoms both of the organization and
the employees and how these factors varied according to socio-demographic and work-
related characteristics, it was found that part of the impact of the organizational climate on
sickness absence was not caused by an increase in work-related symptoms. Even
organizational climate seems to correspond not only with organizational practices and
leadership but also with the occupational health. The organizational climate is used as
research tool and it attempts to reduce the workrelated, illhealth and sickness absenteeism.
Also the study conducted by M.Srimannarayana (2010) on human resource development
climate in manufacturing sector, having aims to explore extent of HRD climate prevalent in
manufacturing organizations in India. Based on the information collected from 726



19 | P a g e

employees working in 18 organizations in manufacturing sector in India, this study has found
that the overall HRD climate prevailing in this sector is of moderate level only. Also
Category wise analysis leads to the conclusion that OCTAPAC culture has been more
prevalent than HRD mechanisms and general HRD climate. Training and performance
appraisal appear to be more mature practices rather than career planning, rewards and
employee welfare. At last of the study, also it appeared that the organizations focus more on
business rather than people. Ultimately, the researcher suggested that the organizations may
introduce fair employee welfare programmes and reward systems to improve employee
satisfaction levels and subsequently to gain advantage from the satisfied workers to increase
productivity. However Rohmetra (1990) conducted a study on banking sector of J&K for
determining in it the HRD climate and the attitudinal perception of 102 employees covering
senior, middle and lower managerial levels as well as the clerical staff. The study has shown
that there exists an intimate degree of trust and that attitudinally they are well-disposed
towards each other. Bhardwaj and Mishra (2002) conducted a study with a sample of 107
senior, middle and higher level managers of a private sector organization which is one of
Indias largest multi-business companies. On the whole, the existence of good HRD climate
in the organization was covered by the study. The managers in general showed a favourable
attitude towards HRD policies and practices of the organization. They were satisfied with the
developmental policies of top management as well as happy with the prevailing HRD climate
in the organization. In the same line by Ishwar Dayal et.al (1996) carried out a study of HRD
Climate in Indian Oil Corporation and his study found that the prevailing HRD Climate was
positive for employee for learning. In this context Gani and Rainayee (1996) conducted study
in HRD Climate in Large Public Sector Organization in Kashmir and concluded that climate
existing in the organization for employee development was picking up and it was further
observed that compared to managerial personnel, workers were less genuine. The



20 | P a g e

comparative study on 20 leading firms in banking industry of India conducted by
Priyadarshini and Venkatapathy (2004) was completed with the help of 200 complete
responses which were collected from 20 leading banks. The study has highlighted that
employees have a strong sense of belonging and that there is sense of equality with regard to
the common facilities provided to the employees. Srimannarayan. M, (2007) also conducted a
study in a local bank of Dubai and found that a good HRD climate was prevalent in the
organization. He found out the difference in the perception of employees regarding the HRD
climate on the basis of demographic variables. In the same line, also Heny ford summarised
and stated the connection between job satisfaction and organisational performance. He also
said that the employees get satisfaction in their work performance, where as performance of
employees depends the empowerment and facilities have been available in the workplace. It
has been helped a lot to the employees to get encouragement and reward for their effort. In
this context, also he stated that professional qualification can help to employee to provide
faster, accurate and quality service to the customer and also able to take good decision
without delay. So, this sense of ability and competency increase the level of job satisfaction.
In the same line, also it has been stated by Dr. Srinibash Dash and Professor J.
Mohapatra(2012) in their study on HRD climate in Rourkela steel plant, one of the major
steel producing public company in the country under the control of SAIL. The study is aimed
at assessing the extent of developmental climate prevailing, through identifying and
measuring the perceived organizational culture and its various dimensions. The findings of
the study helped to identify the weaker aspects of culture in terms of values and beliefs that
prevail in the organization. On the basis of these diagnoses the management can take the
opportunity to work upon the identified weaker aspects and develop better organizational
culture. RSPs top management needs to take Necessary steps for developing resource plans,
action plans and work environment plans needs to be taken by the top management to reduce



21 | P a g e

the perception gap between managements belief in and support for HRD among the
employees. According the researcher, they also stated that Performance-potential matrix
across all grades should be prepared and posting, promotions, job rotation and succession
plan should be integrated with this. Further, the management should focus on to gain the
confidence of employees in its welfare activities through reintroduction of the schemes,
which were partially or completely withdrawn, gather information about employees welfare
needs through a systematic survey etc. On the conclusion part of the study, they stated and it
clearly reveals that there is considerable scope for the development and implementation of
appropriate HRD programmes and interventions in RSP as well as various other sectors in the
country. By doing this we can ensure enhancement of employee competencies, dynamism,
motivation and effectiveness in a systematic and planned way.

HUMAN RESOURCES CLIMATE SYSTEM
An organizations success is determined by the competencies and motivation of the
employees. Sincere and capable employees are the assets of any organisation. Individuals can
be helped to give their full contribution according to their potentials if the organizations
provide right type of human resources climate. This helps to achieve the goals of the
organization, and thereby ensuring optimum utilizations of human resources. Congenial
Human resources climate is extremely important for development of employees and
organizations. Effective implementation of all the human resources system ultimately results
in building a congenial human resources climate which promotes growth, development, for
individual as well as organization. Many studies conducted on motivation over the past 40
years have shown that the human resources climate in the workplace has a significant impact
on employee behavior and organizational results. Congenial and positive work atmosphere
can make a lot of difference in the way employees work. This in turn affects the productivity



22 | P a g e

of the organization. The human resources climate is part of the overall organizational climate.
Human resources climate is considered as very important part of the overall human resources
system. The study of human resources system will never be complete without studying the
human resources climate. The human resources climate of any organization depends on the
overall organizational climate and organizational climate is a result of broader organizational
culture.

Organizational Culture, Climate and Human Resources Climate
In order to study the human resources climate as part of the overall human resources system,
it is essential to look at the terms such as organizational culture, and organizational climate
Organizational culture is described as all the unwritten rules, practices, attitudes and beliefs
that affect the way in which business is done in any organization. In a way it is the behavior
displayed by the top leaders in any organization and becomes part of the unwritten policies. It
does influence the behavior of employees and underpins the interactions of staff and
customers. It is holistic, traditionally determined, constructed in a social context, soft and
difficult to change. Organization culture is the guiding force under which organization
climate and human resources climate are developed. In other words organization culture
decides the organization climate and organization climate decides the human resources
climate. Organizational climate is often defined as the recurring patterns of behavior,
attitudes and feelings that characterize working life in the organization. Although culture and
climate are related, climate often proves easier to assess and change. Organizational climate
refers to the morale and perceptions of the members of the organization and is quite
subjective in nature. It is rather sensed than something which is recognized cognitively.
Organizational climate are a set of attributes which are perceived about a particular
organization and is mainly derived from the interaction of members and environments. It is



23 | P a g e

the combined perception of individuals which differentiates one organization from other. In
other words it is sum total of experiences one feels as a member of the organization, and
senses as an outsider. It is the overall impression of the organization perceived by the
members and environment in which they work.

Factors that Affecting Organizations Human
Resources from outside the Organization

1. Technological Innovation:
Rapid technological changes and innovations are taking place all over the world. As a result
of these technological changes, technical personnel are increasingly required. Hence,
procurement of technically skilled employees is necessary to match the changing job
requirements.
2. Economic Factors:
Economic conditions influence financial health of the organization. Under favorable
economic conditions, expansion of existing programmes and creation of new programmes are
very likely. With less favorable or deteriorating conditions, contraction or cancellation of
some programmes may be necessary. Thus, a number of economic factors affect human
resources management of an organization by influencing its operations.
3. Employees Organizations:
Employees organizations have mustered strength that is parallel to the growth of
industrialism. Labor unions seek to bargain with management over the terms and conditions



24 | P a g e

of employment for their members. As a consequence, most HR activities are subject to joint
decision making when employees are represented by a union.
4. Labor Markets:
In labor markets, organizations seek employees (demand for labor) and individuals offer their
availability to organizations (supply of labor). Labor supply and demand have implications
for all activities, but particularly for compensation and external staffing. Moreover, they are
generally not subject to organization control, thereby creating potential turbulence and
uncertainty for HR management.
5. Changing Demand of Employers:
Organizations also undergo changes and consequently their demands for employees will also
change. The technological revolution and neck-to-neck marketing competition amongst most
of the organizations demand that the existing employees adapt to the every changing work
situations and learn new skills, knowledge etc., to cope with the new changes.
6. Legal Factors:
One of the most important external factors that affect HRM is the legal environment. The
management cannot manage the human resources unilaterally. It is now compelled to manage
its employees according to the legislation enacted by the government at the centre and the
states. The important legislation enacted in India affecting HRM is-Factories Act, Trade
Unions Act, Workmens Compensation Act and The Payment of Wages Act, The Minimum
Wages Act, Payment of Gratuity Act and The Maternity Benefit Act. The government
believes that it is the custodian of industrial and economic activities and hence legislation.



25 | P a g e

7. Human Resource in the Country:
The structure, values and the level of education of human resources in the country influence
the HRM function of any organization. The influence of manpower in the country can be
studied through:
(a) Change in the structure of employment with the entry of workforce with different
backgrounds.
(b) The changes that have taken place in the structure of the workforce over the years and
that have led to the emergence of new values in the organizations.
(c) Increased level of formal education has led to the changes in attitude of employees. The
well-educated employees always challenge and question the managements decisions and
want a voice in the companys affairs that affect their interest.
Thus, many environmental factors affect the performance of specific tasks of HRM. Changes
in the internal and external environmental factors complicate the job both of line and
personnel managers in overseeing the contributions of human resources. Considering the
complexities and the challenges in the HRM now and in near future, management has to
develop sophisticated techniques and competent people to manage personnel on sound lines.
HRD in Indian Organizations: Current Perspectives and Future Issues
In recent years, Human Resource Development (HRD) has emerged as a distinct area of
concern in organiza- tions. This paper presents an overview of HRD practices in a variety of
Indian organizations and identifies areas that need attention of HRD managers and
academicians. There are three distinctly identifiable approaches among Indian organizations
that have formal HRD programmes: (a) Man-Centered Approach, (b) Recipro- cal Approach,



26 | P a g e

and (c) Selective Approach. Although in practice there are overlaps among these approaches,
this classification is useful for discussing the various patterns of HRD management.
Man-Centered Approach
Based on humanistic considerations, HRD, according to this approach, is a philosophy shared
by managements that believe development of people to be their primary responsibility. This
belief governs personnel, welfare, and other organizational policies and practices concern-
ing its employees. Factors like promoting trust, open communication, authenticity in
interpersonal relation- ships, and welfare of employees and their families are given top
priority. Development of people thus be- comes an end in itself in such organizations. The
assumption underlying this approach is that improving an employee's capability and
developing him/her is solely the responsibility of the employer and, therefore, should be
pursued as a programme. This style of management favors personalized relation- ships. It is
more likely to be found in family-managed organizations than in those managed by paid chief
executives. Such organizations have progressive welfare practices for employees and their
families and a managerial orientation which can be described as paternal. They follow
practices that are way beyond what is required by law with respect to matters like health,
education, housing, retirement benefits, and canteen facilities. J N Tata, Shri Ram, Walchand
Hirachand, T V Sundaram lyengar and a few other industrialists started welfare practices
much before legislations on these matters were even framed. This approach emphasizes the
salience of extrinsic job factors. Management-employee relationships are generally informal.
The senior management staff attends to the well-being of employees at all levels. Trust and
confidence between employees and the employer is built through personalized relation- ships.
This often enables managers to practice openness in their relationships. The most important



27 | P a g e

feature in such organizations is the confidence the employees have in the chief executive. He
is a father figure and is respected by employees at all levels.

HRD IN PHARMACEUTICAL SECTOR
Human Resources Management has been considered as very vital aspect, right from
inception, manpower planning, induction, training programme development & promotion. In
every particular area HR Department helps for increasing the productivity & organizational
goals both in long time and short time in the changing environment either for existence or for
stability. For growth, the contribution of HR department is immeasurable though a
considerable work has been done in this particular area a lot more is to be done. There is a
change of concept from HRM to strategic HRM. Indian pharma industry is facing a
considerable change in its aims, objectives, parameters of growth in changing scenario on
account of globalization at the corporate level merger, acquisition phases are taking made
abreast, intrinsic life style, health care and health consciousness and cautions has risen such
an unimaginable heights never before an attempt is made here to focus on issue of
development of HR practices in pharmaceutical industries. While in the pursuit of this search
a reference has been given to the earlier research in the field to avoid the repetition but some
of the points have been thought in the uncommon and different ways. In the air of
globalization, free economy, disinvestments policy, privatization of public sector &
privatization of health matter on the agenda of central government a versatile thinking &
square approach is made in this particular project. Availability of information to the public
on general, data & information available on net, face to face interviews with the authorities,
formal & informal conversations even at the grass root level, response to the pre-designed



28 | P a g e

questionnaire has helped in this research work, though there is an accessibility & proximity to
the present principles, procedures & practices in HRM of every organization. Every
organization has got its unique way of approach coupled with secrecy & confidentiality, the
limitations on accounts of this has a major hurdle in the work undertaken. The survey carried
out is for 12 pharma companies in the vicinity of Pimpri Chinchwad Industrial Belt as well as
Pune District. This is a representative survey of different companies having different policies
& distinct approaches thus the conclusion inferred after research can be if immense help to
the other organization in the pharma industries for guidance, reference & comparison to cost
in future their approach to manpower planning & HRM. Human Resource Development is
concerned with people, dimensions of the organization. The organization objectives can be
best achieved by acquiring human resources, develop them, cast them for our need &
motivate them for still better performance and ensure that they continue to maintain their
involvement, commitment, loyalty to the organizational. The Human Resource
Development basically consists of three cs i.e. competencies, commitment and culture.
During 1980 it was Larsen and Turbo Ltd. who introduced the concept of Human Resource
Development and Practice in Indian Industry. Earlier to that personnel functions were used
traditionally i.e. to look after salary, administration, absenteeism, new employment and
maintenance of industrial relation. The employee was viewed in terms of laws and procedures
laid down by personnel management but the management realized the importance of man
above money, machine and material. Hence the concept of human resource development was
introduced and gained ground.
Human resource management is a system, a philosophy, policy and practices that can
influence individuals working in an organization 1. An effective and competitive human
resource is the key strength of organizations in facing the challenges of business today. HRM
is the part of an organization that is concerned with people working in an organization 2.



29 | P a g e

Successful organizations recognize the significance of human element in the organizational
success and emphasize on their development, satisfaction, commitment and motivation in
order to attain desired objectives 3. Sustainable development of a company depends upon
effective management of human resources The importance of human resource management
in healthcare lies in the fact that a well-managed human resource department is vital for the
delivery of efficient and quality healthcare services 1. When examining the role of human
resource management in healthcare system from a global perspective, many challenges exist
either internally or externally which adversely affect the delivery of quality healthcare
services. In developed countries the human resource managers have indentified the
challenges they face and have developed different strategies to overcome these challenges 5.
But in developing countries like India they are still facing many challenges 6.
The scope of HRM is very vast and it consists of:
a. Human Resource planning
b. Recruitment and selection
c. Training and development
d. Organizational development
e. Career development
f. Job Design
g. Performance Management System
h. Compensation and Benefits



30 | P a g e

There are as such no standard guidelines laid down by Government \authorities and private
organizations. Standard HR policies and practices differ from organization to organization
depending upon size, type, purpose, classification and location of the organization. These
guidelines are designed and tailored as per the need of the hour and also organization as well
as Government regulations. The data groups of industries have laid down the standard
guidelines for their organizational set up. They do not follow the guidelines set up by other
organizations as the other organizations follow their own guidelines. This is so because; these
organizations have laid down their own guidelines on the basis of their own experience,
expectations and to serve their primitive purpose. Hence as said earlier no standard guidelines
have been laid down and as such they differ from organization to organization. In the wake
of globalization and privatization policy, the organizations have to adopt innovative ways to
survive and to remain in competition. It is being realized that "Human factor" gives
competitive advantage to the organization. If human resources are treated as assets and by
carefully nurturing their creativity, competence, the organization can successfully accept the
challenges and encounter in a fast changing business environment, all organizations with
enterprising, enthusiastic, competent, motivated and satisfied work force will remain
successful. Creation of human assets calls for formulating appraisal, policies and practices in
every developmental stage viz. planning, acquisition, nurturing, developing, motivating,
rewarding and retaining of manpower. It calls for integrated policies, with a strategic
planning of the organization and also aligning with a conclusive culture and climate. The
policies have been such that it develops a culture of learning, encourages teamwork and result
in enhanced performance. The practices should be such that the employee remains committed
to the organization and adds value to the business. In the formal analysis, the HR policies and
practices should have impact on bottom line of the organization. Our great Earth is,
dominated by human beings. Human race that evolved throughout the great ages of struggle



31 | P a g e

and development has brought about civilizations of spectacular and tremendous
developments in all the fields of human activity. Scientific developments and splendid
techniques have contributed to the development and progress in agriculture, industry,
engineering medicine and pharmacy. To meet the requirements of human beings for their
existence and qualitative living, human resources have been nurtured and developed. Industry
thrives not only on money, machines and materials but more especially on human endeavors.
Mother India has been marching along the path of progressive independence. Along with
industrial and economic development, health care arid quality of human life, have been
emphasized as a must for the promotion of human welfare. Pharmaceutical industry plays
a key-role in promoting quality in health-care. Human ailments physical mental are caused
by the exigencies and circumstances of urbanized life-styles. Cut throat competition, struggle
for survival in rat race, nonmoving jobs, addition, oily, spicy and to enhance life-expectancy
and promote healthy living, the research and development departments in the organizations of
pharmacy and medicine need tremendous boost in terms of trained and talented and
committed human resources. This requirement which is increasing day by day necessitates
the development of human resources. The parameter of progress of pharmaceutical
productivity consists of the excellence of human resources in pharmaceutical industry. This
encircles readily available, economically affordable with consistent standard quality, without
side effect and result oriented medicines. Proximity and accessibility of medicines is in tune
with existing need of the user. The lives saving medicines are as important as food, water, air
and sunlight. The govt. should create a regulatory body for monitoring the affordable price,
availability and quality.





32 | P a g e

Relevance of H.R. Development:
Human resource development plays a significant role in pharmacy mainly because
pharmacy does merely deliver products of health-care, but quality of great-care. Through
innovations in formulations and preparations of drugs, the drug manufacturers, both in the
public and private sector, have been contributing significantly to the growth of pharmacy.
The growth of drug manufacturing industries actually; or accelerated during the 1960s, even
though way back in 1930, the Bengal Chemicals and Pharmaceutical works, in Calcutta
started drug manufacturing activity in India. Further the Planets Act in 1970 paved the way
for progress. Human Resource talents contributed to the growth of the Indian and world
markets with their expertise in. reverse-eI1gineering new procedures for manufacturing drugs
at comparatively low costs. Development of human resources in the pharmaceutical industry
lead to rapid strides in drug innovation, especially in large drug manufacturing companies in
India. Noticeable changes in the life style, spectacular pay hike in certain sectors [e.g. IT
industry] unscheduled working hours during long night hours [e.g. BPO service centers],
nuclear families, craze for fast food, and addiction etc leads to ill health. To restrict
repercussions new drugs are to be invented .The Indian Pharmaceutical Industry today:
What is needed to Develop Organizational Climate in Organization?
Top to Bottom effort: - Organization is considered to be complete organization after
including top authority to bottom line of workers. And whenever we talk about development
at organizational level effort is needed from top level to bottom level. Top authority should
not have thinking in their mind that their task is to only take decisions but they should also
emphasized on proper implementation of decision by adopting various controlling technique.
Bottom level workers should have loyal mind-set towards their organization. Bottom level



33 | P a g e

workers have to work with dedication. They should have realization that organization is their
organization.
Motivator role of Manager and Supervisor: - To prepare Human Resource Development
Climate, Manager and Supervisors 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 employees 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
Climate.
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.



34 | P a g e

Helpful nature of employees: - Whenever we talk about 100% effort then we have to talk
about employees 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 managements 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.
Measuring HRD Climate
Economic condition An organizations 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.



35 | P a g e

Leadership Style : - An organization leadership style plays a profound role in determining
several aspects of its culture. An authoritarian style may make the organizations 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.
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).
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,
employees security and growth.
Organization size : - An 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.
HRD SOME CONCEPTS
HRD is mainly concerned with developing the skill, knowledge and competencies of people
and it is people-oriented concept. When we call it as a people-oriented concept the question
of people being developed in the larger or national context or in the smaller organizational
context? Is it different at the macro and micro level? HRD can be applied both for the
national level and organizational level. But many personnel managers and organizations view
HRD as synonymous to training and development. Many organizations in the country



36 | P a g e

renamed their training departments as HRD departments. Surprisingly some organizations
renamed their personnel department as HRD departments. Some educational, institutions
started awarding degrees and diplomas in HRD even though the concept is not yet crystal
clear. HRD from organizational point of view is a process in which the employees of an
organization are helped/motivated to acquire and develop technical, managerial and
behavioral knowledge, skills and abilities, and mould the values, beliefs, attitude necessary to
perform present and future roles by realizing highest human potential with a view to
contribute positively to the organizational, group, individual and social goals. A comparative
analysis of these definitions shows that the third definition seems to be comprehensive and
elaborate as it deals with the developmental aspects of all the components of human
resources. Further, it deals with all types of skills, the present and future organizational needs
and aspect of contribution to not only organizational also other goals. The analysis of the
third definition further shows that there are three aspects, viz.,
1. Employees of an organization are helped / motivated;
2. Acquire, develop and mould various aspects of human resources; and
3. Contribute to the organizational, group, individual and social goals.
The first aspect deals with helping and motivating factors for HRD. These factors may be
called Enabling factors which include: Organization structure, organizational climate,
HRD climate, HRD knowledge and skills to managers, human resource planning, recruitment
and selection. The second aspect deals with the techniques or methods which are the means to
acquire develop and mould the various human resources. These techniques include:
Performance, appraisal, Potential appraisal, Career planning and Development, Training,
Management development, Organizational development, Social and Cultural programs, and



37 | P a g e

Workers participation in management and quality circles. The third category includes the
outcomes contribution of the HRD process to the goals of the organization, group, individuals
and the society.

HRD climate and communication
The communications that arise not out of formal relations between people but out of informal
or social relationship is called the grapevine or informal communication. The management
has no absolute control over this type of communication as they neither created nor destroyed
it. Communication need not flow through authority- responsibility relationship or channels of
organization in informal communications. In informal communication there is no formal
superior subordinate relationship.

The informal communication does both good and bad to the organization.
The advantages of informal communication are:
1. It acts as a driving force to untie the workforce in cases of common matters;
2. It saves time and energy as the information flows at high speed;
3. It has immediate response from the receiver;
4. It provides the scope for creation of new ideas;
5. It satisfies the communication needs of various employees,
6. It provides scope for immediate feedback.



38 | P a g e

Informal communication suffers from various drawbacks. They are:
a. Informal communication sometimes spreads wrong information and rumors;
b. It distorts information;
c. Grapevine provides only inadequate information;
d. Information provided through grapevine has no formal authority; and
e. It overlooks superiors.
The most effective communication results when managers utilize the informal organization to
supplement the communication channels of the formal organization. It should be remembered
that it is a part of the manager job to have a little control over this informal communication so
that he can take the appropriate action to minimize the adverse effect of this channel.
Organizational climate is very important in the context of communication. Organizational
climate is the summary perception which people have about an organization. It is thus a
global expression of what the organization is: Organizational climate refers to a system of
shared meaning held by members that distinguishes the organization from other
organizations.
The characteristics of organizational climate are:
1. Individual Initiative: The degree of responsibility, freedom and independence that
individuals have.
2. Risk Tolerance: The degree to which employees are encouraged to be aggressive,
innovative and risk-seeking.
3. Direction: The degree to which the organization creates clear objectives and
performance expectations.



39 | P a g e

4. Integration: The degree to which units within the organization are encouraged to
operate in a coordinated manner.
5. Management Support: The degree to which managers provide clear communication,
assistance and support to their subordinates.
6. Control: The number of rules and regulations and the amount of direct supervision
that is used to oversee and control employee behavior.
7. Identity: The degree to which members identify with the organization as a whole
rather than with their particular workgroup or field of professional expertise.
8. Reward System: The degree to which reward allocations are based on employee
performance.
9. Conflict Tolerance: The degree to which employees are encouraged to air conflicts
and criticisms.
10. Communication Patterns: The degree to which organizational communications are
restricted to the formal hierarchy of authority.
Communicating with the Employees
Both formal as well as informal communication channels are used to communicate with the
employees. In addition to following written communication, oral and nonverbal
communication should be relied upon. In addition to downward communication to
communicate rules, procedures and programs of the organization to employees, employees
should also be encouraged to communicate to their superiors. In order to make use of team
work, all channels of communication or star communication pattern should be encouraged.
Interpersonal communication should be encouraged with a view to develop interpersonal
relations. Employees should also be encouraged to develop effective and active listening
skills.



40 | P a g e

WHAT CONTRIBUTES TO HRD CLIMATE?
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 climate.
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.



41 | P a g e

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.

















42 | P a g e

OBJECTIVE OF THE STUDY

The following are the objectives of the research project report:

1. To examine the variables affecting the HRD climate in pharmaceutical sectors.
2. To study the variables those are significantly correlated.
3. To examine the various variables which can have bearing on the HRD climate
in an organization?
4. To examine the various variables which need to be improved for better HRD
climate in an organization?












43 | P a g e

Importance of the study

The importance of a project report is following.


The study will help to know that what additional features & what facilities should be
to increase.
The procedure of human resource development in pharmaceutical sector.
It helps in identify reason behind problems.
The importance of project study is that it is helpful to make good knowledge about the
human resource management and human resource development.
It is important to know challenges & prospects in view of future with unique
suggestions& HRD facilities that will be preferred by the industries.
Environmental factors of HR are prime influencing elements of change in HR
strategy.
It gives HR professionals time to anticipate opportunities in HR area and time to
Plan optional responses to these opportunities.
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.
It forms a basis of aligning the organization strengths to the changes in the
environment.
It enables the entry of the latest national/international HR developments



44 | P a g e

Scope of the study
The project report covers the human resource development and variables. For better
understanding various strategies with different situations and actions have been given its also
includes the challenges and prospects for the human resource development in industries
India. Here the researcher collected the recent year data .the study extends the knowledge of
human resource development in India. Here the mainly consider about pharmaceutical
industries to completing the research project report.
To prepare Human Resource Development Climate, Manager and Supervisors
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.









45 | P a g e

Research Methodology

Research as A systematic investigation, including- research development, testing and
evaluation, designed to develop or contribute to generalizable knowledge. Activities which
meet this definition constitute research for purposes of this policy, whether or not they are
conducted or supported under a program which is considered research for other purposes. For
example, some demonstration and service programs may include research activities
Introduction
According to Cassel, C. & Symon, G., (2004), all research involves data collection
and analysis, whether through observation, reading, measurement, asking question or a
combination of these or other strategies. The collection of the data and for research may,
however vary considerably in its characteristics. In simple words research can be primary or
secondary. In primary research the collection of data is specifically for study at hand. It can
be obtained by communicating directly or indirectly with the subject or directly by the
investigator. Qualitative research and quantitative research are included in the direct
communication techniques. For the purpose of this research, a combination of primary and
secondary data has been used; and, under primary, although largely quantitative data was
collected, room for qualitative data was made available whenever thought necessary.
Methods of Collection of Data
Flower (1985) opines the choice of collection of data mode-mail, personal interview,
group administration, or telephone is directly related to the sample frame, research topic,
characteristics of sample and the resources available; it has implication of rates of response,
question form, and survey costs. As mentioned earlier, that there are two main researches
which are primary and secondary research



46 | P a g e

Primary Research
Primary research is conducting original research to obtain a variety of social indicators that
can help to determine the risk of community and protective factors identify community
resources, and determine community readiness for prevention efforts. For instance primary
research can involve researching community laws and surveys to determine norms, gaps,
attitudes or social services. Some methods of conducting primary research are as follows:
Questionnaires
Experimentation
Observation
Documentary Sources
Secondary Research
Secondary research as data which already exist in some form, having been collected for a
different purpose, perhaps even by a different organization, and which might be useful in
solving a current problem. Although secondary research less expensive than primary
research, it is not always accurate, useful, as specific, custom-made research. There are
various sources available to the marketer, and the following list is by no means conclusive:
Census data
Public records
Business libraries
Trade directories
Trade Associations
Websites
Omnibus surveys
Published company accounts
previously gathered marketing research



47 | P a g e

Informal contracts
National/ International governments
Professional institutes and organizations
National and local press Industry magazines

Types of Secondary data include:
There are basically two types of research ofresearch methods, qualitative and
quantitative. Silverman (2000) opines that the danger in the title, however, is it seems to
assume a fixed preference or pre-defined evaluation of what is good (i.e. qualitative) and bad
(i.e. quantitative) research.
Research Process
The research process is the step-by-step procedure of developing one's research
and research paper. However, one can seldom progress in step-by-step fashion as such. It is
often necessary to revise an initial research plan. The research process involves identifying,
locating, assessing, analyzing, and then developing and expressing your ideas. These are the
same skills that will be needed in the post-university "real world" when you produce reports,
proposals, or other research for your employer. All of these activities will be based on
primary and secondary sources from which recommendations or plans are formulated. There
is no fixed number of stages to be followed since it varies from research to research. At the
same time every research process does in reality follow a common trend in its completion.
This includes formulating and clarifying a topic, reviewing the literature, choosing a strategy,
collecting the data, analyzing the data collected and finally writing up.





48 | P a g e

Research Design
Naresh K. Malhotra (2004) opines that research design is a blueprint or framework for
conducting the research project. It is in simple words, a plan for study that guides the
collection and analysis of data. It, in fact, is the central part of any activity involving any
work of research. It serves as a guide to the investigation methods, the instruments in
research used, nature of data with the sampling frame and plan. One of its key features should
be to hold the parts and phases of the enquiry together. It should be comprehensive in its
coverage of the work i.e. it should allow for logic, tight-ness, precision, and effective use of
resources. A research design lays the foundation for conducting the project. A good research
design will ensure that the research plan is conducted efficiently and effectively.

Sampling
Pharmaceutical sectors are chosen for understanding the human resource development
benefits and its factors in Indian industries.









49 | P a g e


Nature and Type of Pharmaceutical Industry

Table- 1





Chart- 1



Analysis-In the above graph it is showed that nature of pharmaceutical industry are direct
manufacturer are 7 third party 2 and loan license are 3.
Interpretation- The above figure shows that the nature and type of Direct Manufacturer
are more than third party and loan license companies.
58%
17%
25%
Direct manufacture
Third Party
Loan License
Direct
manufacturer
Third Party Loan License
7 2 3



50 | P a g e

Which is the factor that enforces employees to work with
pharmaceutical industry?


Table- 2



Dimensions

Impact on stress level

Non-impact on
stress level
Job Security 27.9 45.6
Social 22.1 52.9
Fiscal Equity 33.8 35.3
Skill Variety 25.0 41.2
Autonomy 17.6 51.2
Advancement 41.8 40.3
Recognition 33.8 44.1
Task Identity 33.8 55.9
Feed Back 20.6 39.7







51 | P a g e

Chart- 2




Analysis-
The above table shows various factors that enforce the employees to
work in a pharmaceutical industry.

Interpretation-
From the analysis we came to know that the financial security and
technology soundness is very much necessary for any industry.



0
10
20
30
40
50
60
45.6
52.9
35.3
41.2
51.2
40.3
44.1
55.9
39.7
Impact on stress level
Non-impact on stress level



52 | P a g e


What are the market shares of pharmaceutical industry?
Chart- 3




Analysis-
The above chart shows the market share of the pharmaceutical industry with other industry.
Interpretation-
From the analysis we came to know that the market share of pharmaceutical industry is quite
good.


0
10
20
30
40
50
60
70
80
90
100
0 2 4 6
shree prakash
pharmaceutical
Lupin
ranbaxy



53 | P a g e

No. of Employees in Place:

Table- 3


gender Managerial supervisory
Male
14 6
Female
16 24

worker No.
Contractual
staff
No.
skilled

2400
male
1200
unskilled
3000
female
1800

Chart- 3



0
5
10
15
20
25
Male Female
14
16
6
24
Managerial
supervisory



54 | P a g e





Analysis-
The above chart shows that in pharmaceutical mainly 14 male and 16 female work
managerial work, and skilled 2400 and unskilled 3000worker in which maximum 1200 male
and 1800 female on contractual basis.

Interpretation-
From the analysis researcher comes to know that maximum female handle the managerial and
supervisory works and the unskilled worker is mare than skilled worker.










0
1000
2000
3000
skilledunskilled
No.
No.
0
500
1000
1500
2000
male female
No.
No.



55 | P a g e

Method of estimating manpower requirements

Table-4

Sr. No. Method No. of companies
using this method

1
Work study
sampling
9
2
3000Planned
productivity
estimation
1

3
Statistical
Methods (Like
regression,
correlation
etc)
1
4

Super
annuation -
cum
replacement
charts
1

Chart- 4

0
1
2
3
4
5
6
7
8
9
1 2 3 4 5
2
9
1 1 1
Sr. No
Method
No. of companies
using this method



56 | P a g e

Analysis
The above chart shows that in pharmaceutical co. used method Work study sampling 9
companies, 3000Planned productivity estimation used by 1 company, Statistical Methods
(Like regression, correlation etc) used by 1 company, Super annuation cum replacement
charts used by 1 company.

Interpretation From the analysis researcher comes to know that maximum
companies used the method of Work study sampling out of 10 companies.













57 | P a g e

Findings
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.
In Pharma manufacturing companies policy regarding ratio of skilled employees,
supervisor and managerial staff is 60:2:1 hence above graph and table justifies the no
of employees ratio is adequate.
Most of the companies pointed out that manpower requirement were determined on
the basis of work study. However, the work study generally relates to production
orientation. Hence a square approach covering the other aspects such as productivity
relation application of statistical methods and replacement on account of promotion,
transfers, resignation, super annuation and punitive action is also needed to be
covered.
Amongst all the companies it was observed that they give 100% importance to subject
knowledge &work experience for the selection while PHYSICAL abilities &
psychological attitudes were also carefully scrutinized during the selection process



58 | P a g e

Probation period for skilled & unskilled workmen is 6 months whereas for officers it
is 12 months. Ideal HR policy reflects the same thing .Because the workmens skill
could be checked actually while working on machine. For officers it is actually work
performed by him/her hence it is 1 year.
Those maximum companies used the method of Work study sampling out of 10
companies.
Maximum female handle the managerial and supervisory works and the unskilled
worker is mare than skilled worker.
The market share of pharmaceutical industry is quite good.















59 | P a g e

Recommendations

After completion of the research work the researcher came to some conclusions which could
help in development & improvement of trading process. This is helpful in future development
of the derivative trading. The following points come in the suggestion parts which came after
the analysis and conclusion of the research:-

Further Research in this area after a span of years time would be worthwhile to do
because the human resource developments are not stable.
A research based on pharmaceutical sectors and new company may be come in future.
Since human resource development depends on company on a large scale and they are
of a very fluctuating nature, further research on exchange rate would be prudent.
At the same time, research on the interest rate would be sensible; because, as human
resource have a fluctuating nature, variables depends upon the manpower of any country for
its progress and on the whole interest rate are co-related with the human resource
management.
In the pharmaceuticals market more scripts are required in the human resource
development segment.



60 | P a g e

To have a consistent method of HRD for losses and gains from the HRM, a proper
framework to HRD for needs to be developed. .
Harmonization of regulations is required.
















61 | P a g e

Conclusion


Although an earlier study on the subject has been made, there is still a large and wide scope
for scientific study over the HR policies and practices in the pharmaceutical industries.
Pharmaceutical industries play a major role in the annual turnover of Indian economy. If the
working of these pharmaceutical industries is not smooth and well organized then there is a
possibility that these organizations may collapse resulting in bottlenecks of career of the
employees working in these industries. Also it will affect the well being of the consumers
since pharmaceutical industries are directly related to the public health.

Over the HR policies & practices was done however the study did not stretch up to the
pharmaceutical industries. Due to globalization liberalization and liberal polices of Indian
Govt. the small, middle as well as the large scale Pharmaceutical companies are on the way
of expansion, amalgamation, joint ventures, enriching present market with penetration and
concentration therein. Hence there is a growing need for skilled and scientific study of
Human Resource Management in these Pharmaceutical companies. Privatization,
introduction of new technology, latest machinery are all responsible for the expansion of the
companies however the HRM study focuses on the utilization of manpower which is the need
of the Day. Proper utilization of manpower helps in the growth, expansion and success of the
company and study of HRM policies and practices deals with this utilization of manpower
and hence the need of the Day.





62 | P a g e



Human resource development plays a very important role in the up-bringing of an
organization; it plays a major role in the any industry.
Today, with the help of human resource development, the Indian market has recently
rocketed up to become Asias fourth largest exchange traded derivatives market.
In terms of growth of derivative markets and a variety of derivatives users, the Indian
market has exceeded or equaled many other Indian markets.
The variety of instruments in human resource development instruments available for
developing.
Corporations, private sectors institutions, state-owned and smaller companies are
gradually getting into the act.











63 | P a g e

Limitation
The time available to conduct the study is little; it being a wide topic has a limited
time.

Limited resources are available to collect the information about the human resource
development.


Pharmaceutical market is so much volatile and it is difficult to forecast anything about
it whether you trade online or offline.

Some of the aspects may not be covered in my study, its gives knowledge about
human resource development small prospects and its challenges.

In a rapidly changing industry, analysis on one day or in one segment can change very
quickly. The environmental changes are vital to be considered in order to assimilate
the findings.

The 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 limitation is that some of the calculations are based on certain assumptions
considered appropriate.





64 | P a g e


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 throughout the project.
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.














65 | P a g e

Bibliography & References


Books Referred :-



A Srikanth and AnupMenon (2003) Index Futures - the Scope of Arbitrage.
Alan C. Shapiro (2000), Prentice- Hall Multinational Financial Management.
Bansal M., Bansal N. (2003) - Derivatives & Financial Innovations, Bombay Stock
Exchange.
Bharti V (1999).Pathak, Pearson Education Indian Financial System.
Blaxter (1997) How to Research.
David Silverman (2000) Do Qualitative research.
Dr. NarendraJhadav (2000) Indian Banking.
Donald S. Tull and Del I. Hawkins (1993)- Marketing Research
E. Sirisha (2001) Stock Market Derivatives: Role of Indices ( 2
nd
Edition)
Flower (1985) How to collect Data.
G R K Murty (2000) Indian Derivatives Market: Issues at Stake.
Hathaway (1995) Qualitative VS Qualitative research analysis.
Hull J. (1995) Introduction to Futures and Options Market (1st Edition).
J Marlowe (2000) Hedging Currency Risk and Options and Futures.







66 | P a g e

Journals Referred:-

Dhingra G. (2010), An understanding of financial derivatives of financial
derivatives, The Chartered Accountant, March
Kandathil C.(2009), Indian Derivatives Markets Structural Issues,, Chartered
Financial Analyst, December
Gulati S. (2011)Curreny Options, Chartered Financial Analyst, November
Sisodiya A.S.(2008)Credit Derivatives: Is Indian Banking Sector Ready, Chartered
Financial Analyst, July


Website Referred:-
Web1 Derivative Definition (Online) (Cited on 27
th
April 2013) Available from
<www.cperformance.com/glossary.htm>
Web 2 Definition of Forward Contract (Online) (Cited on 29
th
April 2006) Available
from <www.ers.usda.gov/Briefing/RiskManagement/glossary.htm>
Web 2 Definition of Forward Contract (Online) (Cited on 30
th
April 2006) Available
from <http://wikipedia.org/wiki/Forward_contract>
Web 3 Definition of Futures Contract (Online) (Cited on 1
th
May2006) Available from
<http://en.wikipedia.org/wiki/Futures_contract>
Web 4 Definition of Futures Contract (Online) (Cited on 2
th
July 2006) Available
from <http://www.investorwords.com/2136/futures_contract.html>
NSE & BSE home page.