B.N. Bahadur Institute of Management Sciences, University of Mysore, Manasagangotri, Mysore-570 006.

HRD in public sector

Mysore Paints and Varnish Limited

By

III Semester MBA

Guide
Prof. AISHAR M. SHERIFF BIMS

PART 1: HRD IN PUBLIC SECTOR 1. What is public sector 2. The role of HRD in public sector 3. HRD practices in public sector

PART 2: HRD IN MYSORE PAINTS AND VARNISH LIMITED 1. Introduction about the company 2. HRD practices in MPVL 3. What are the missing HRD techniques in MPVL 4. Difficulties of implementing HRD practices in public sector

PART 3: CONCLUSION

PART 1: HRD IN PUBLIC SECTOR 1. What is public sector? The public sector is that portion of society either the production, delivery and allocation of goods and services controlled by national, state or provincial, and local governments. The part of the economy concerned with providing basic government services, for

example it encompasses universal, critical services such as national defense, homeland security, police protection, fire fighting, urban planning, corrections, taxation, and various social programs. The composition of the public sector varies by country, but in most countries the

public sector includes such services as the police, military, public roads, public transit, primary education and healthcare for the poor. The public sector overlaps with the private sector in producing or providing certain goods and services. The extent of this overlap varies from country to country, state to state, province to province, and city to city. The organization of the public sector (public ownership) can take several forms, including:

Direct administration funded through taxation; the delivering organization generally has no specific requirement to meet commercial success criteria, and production decisions are determined by government.

Publicly owned corporations (in some contexts, especially manufacturing, "state-owned enterprises"); which differ from direct administration in that they have greater commercial freedoms and are expected to operate according to commercial criteria, and production decisions are not generally taken by government (although goals may be set for them by government).

Partial outsourcing (of the scale many businesses do, e.g. for IT services), is considered a public sector model.

Sometimes, service providers move from the public sector to the private. This is known as privatization, and has been taking place in recent years on a large scale throughout the world. In other instances, a service may shift from the private sector to the public. This is less common, but health care is one area where some governments are providing or experimenting with services previously furnished by private providers. Governments routinely hire private corporations to provide goods and services for the public sector, a practice known as outsourcing . Examples include the manufacture, construction, or maintenance of aircraft, military hardware, electronic and communications equipment, computers, roads, freeways, bridges, parks, and recreation areas. In India, a government-owned corporation is termed as a public sector undertaking (PSU). This term is used to refer to companies in which the government (either the federal Union Government or the many state or territorial governments, or both) own a majority (51 percent or more) of the company equity. For example: Indian Oil Corporation Limited State Bank of India Air India Bharat Sanchar Nigam Limited

2. The role of HRD in public sector Human Resource Development (HRD) plays a critical role in creating and sustaining high performance organizations. The term Human Resource development involves mainly two terms Human resource which consists of the total knowledge, creative abilities, skills, talents and aptitudes of an organization's work force, as well as the values, benefits, and benefits of an individual involved in the organization. Development on the other hand involves enhancement of the skills and abilities of the employee in the present job as well as making him capable of doing so in the future assignments. HRD aims at recognizing and motivating the potential employees of the general work force as a whole. The core essence of HRD is to bring out the best in employees. This involves integration of the individual work goals with that of the company goals and improving the individual performances. As we can see, government owned corporations and organizations are termed as public sector in general. In fact, the government has a critical role to play in the development of the country. It acts as planner, regulator, catalyst, controller and investor. Its policies and practices directly determine the nature and direction of HRD activities in institutions and organizations under the direct control of government such as the administrative machinery and public sector organizations. Indirectly, the governments policies and practices set the tone and create an environment which may discourage or encourage the HRD activities of other organizations in the non-governmental sectors as well. Thus, HRD in government has a strategic role. That is, its own policies and practices have a ripple effect with wide ranging impact on other sectors of society. This is especially so in a partially controlled economy like Indias where the government regulates the activities of even private sector organizations.
Broadly, HRD in government can be given two interpretations. The first can be that it refers to the HRD activities in the various ministries, departments and government agencies.

The second interpretation is that it refers to role of government at the macro

environmental level; policies and conditions which affect HRD in various other organizations. For instance, the policies and directives of government with respect to the employment and employment conditions of special sections of society, such as the backward classes, significantly impact HRD policies and practices at the micro organizational level

Basic objectives of HRD in public sector 1. To equip the civil servant with precision and clarity in transaction of business; 2. To attune the civil servant to new tasks which he will be called upon to perform in changing world; 3. To develop resistance to the danger of becoming mechanized by visualizing what he is doing in a wider setting and by persevering with his own educational development; 4. To develop his capacity for higher work and greater responsibility; 5. To develop and maintain staff morale particularly because large number of people have to deal with tasks of a routine nature; 6. To inculcate right attitudes towards the public, never forgetting that the civil servant is the servant and do not the master of the community; and 7. To sustain the human touch not only in direct personal contacts with public but also in handling correspondence which demands a proper sense of urgency and due consideration of the man at the other end. The HRD area consists of three primary functionstraining and development, organizational development, and career development. It is critical that the HRD function recognize its value to the organization in relation to the strategic planning process and the opportunity to provide a true competitive advantage to the organization through its sustained and continuous development of its most important assetits people.

3. HRD Practices in public sector

Criteria
1. Training

Past Practices

New approaches

- there were only a few Central and State - Most of the training in public sector today is
training institutions for imparting induction institution dependent. training to their officers. - In-service training was not seen as important for the development of officers. - regular meetings are carried out to analyse training need, or training inputs are imparted by an internal or external expert

- The move away from purely generalist - towards specialised training, has also made 2. Job rotation
training on history, constitution, procedures etc. possible more purposive rotation and transfer

3.ActivityAnalysis/ - These activities are necessary for - Nowadays workshop can be held,
Task Analysis/ Role Analysis individuals to be able to perform well in activity analysis, task analysis, role organizations. Unfortunately, they are often analysis result in identification and listing of neglected especially in public sector critical competencies required for a job to perform it well and the indicators of these competencies

- A performance appraisal system can be a powerful tool of HRD when it is used to help an 4.Performance
Appraisal employee understand his tasks and the means of achieving them, identify the strengths and weaknesses he has relevant to his job, and acquire new competencies for self development in the job.

- But performance Appraisal systems as instruments of HRD have not yet been realised in
public sector

5.Potential Appraisal

- The objective of potential appraisal system is to identify the potential of an employee to

occupy higher positions in the organizational hierarchy and undertake higher responsibilities. - Based on the assessment of potential, an organization can design appropriate training, career development, counselling and organization development programmes. - But the potential Appraisal isnt taken good care of in public sector

6.Organization
Development

- An OD intervention which may be especially useful in government systems in

Management by Objectives (MBO).In this method, people at all levels are involved in identifying organizational goals and specific individual strategies for achieving these goals through their respective tasks.

- Given the traditional rigid and bureaucratic structures and cultures which tend to prevail in
large organisations like government systems, many HRD activities and systems cannot be successful unless planned changes are made. - But in overall the Organization Development is most neglected in HRD practices

**For reference: HRD in PSUs in India HRD in PSUs in 70s and 80s
HRD in the Public sector undertakings had a glorious past. PSUs attracted highly competent people in the past. It used to be a prestigious thing for most engineering graduates from leading educational institutions to join corporations like NTPC, BHEL, BEL, HMT, HAL and the like in seventies and eighties. HMT was the first to start a dedicated Organization Development (OD) department in early seventies. The work of this department was well respected and quoted. Those associated with this OD department latter rose to be leading CEOs and consultants and contributed in many ways to development of other sectors. For example MSS Varadan in Bangalore who became an active process facilitator and worked with ISTD, NIPM, and HRD Network besides the institutions like the Indian Institute of Science and so on. BHEL was the first to initiate MECOMs (Manager Employee Communications) systems to facilitate employee development and create a healthy organizational culture. State Bank of India and its associates were the first to start the HRD function under the guidance of Dr Udai Pareek and appointed a Full pledged HR department to design and implement HRD systems to promote continuous development of employees. OD work was undertaken systematically to survey the organizational climate in these banks. SBI itself appointed a highest level functionary (A Chief General Manager and

subsequently elevated to Dy. Managing Director level) to look after HRD. In late seventies Bharat earth Movers (BEML) appointed the author as Advisor in General Managers capacity to design and develop HRD systems and also to train internal talent to manage HRD. Indian Oil Corporation used to conduct regular surveys of HRD Climate in early eighties. HPCL was the first to think of Communications as a strategy of HRD and examine all its policies form the angle of communications in mid-eighties. Thus HRD in PSUs in seventies and eighties can be characterised as path breaking, with highly committed HRD facilitators who devoted their time and energies to design and lead HR. This era can be characterised as HR Leadership era in seventies and eighties.

Fall of HRD- Nineties

With opening up of the economy in nineties the HRDs role had to be redefined in PSUs. It succumbed to pressures and changing realities of the PSUs and the government. With liberalisation the bench marks started changing. The HR departments had to largely perform the painful role of downsizing and organizations were under tremendous pressure to perform. This perhaps was the time when HR Managers could have come more alive and thought of innovative HR practices for developing current manpower, modernising their technical and other skills, conduct change management programs and develop new era of leadership. Unfortunately they were caught unaware. Combined with this was pressure on organizational performance, upgrading the quality of products, cost reduction exercises etc. The HR people largely concentrated on downsizing or right sizing the organizations. Unfortunately this also happened to be the time when many private sector and MNCs grabbed competent people from PSUs. Many PSUs like the SAIL, NTPC, IOC etc. Lost a lot of its talent to private sector and MNCs. Their focus on performance management and OD interventions also dwindled.

Rise of HRD in 2000+

The last ten years have seen again a good rise of the HRD function. With increased success of liberalisation the country realised that there is no alternative to talent

management. Competencies are being recognised the PSUs have come to terms with the reality. They also face the stark reality that they have to be content with existing systems and staff. Given the difficulties in compensation changes there is a recognition that PSUs cannot come to compete with MNCs in their race for salaries. They however recognise that their CTC (employee Cost to Company) as they projected are under-estimates of what they really give to their employees. When their investments on infrastructure like residential facilities, hospitals, schools, town ships, other benefits in organizations like SAIL, BHEL, BEML, ITI, LIC, BEL, HAL, Nationalised Banks are taken into account the CTC may be considered as large though not comparable with the MNCs and private sector. This recognition coupled with the reforms in PSUs relentlessly though somewhat unsuccessfully being pursued by the Government has put pressure on the new HR Manager in the PSUs to perform. Today almost all PSUs have Director level positions for HR. They are expected to manage talent. Many of the PSUs have begun to meet this challenge in the last ten years by initiating appropriate interventions.
(**Source: http://tvraoblogs.blogspot.com )