10-Human Resource Development Climate in Manufacturing Sector

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Management & Change, Volume 13, Number 2 (2009)

HUMAN RESOURCE DEVELOPMENT CLIMATE INMANUFACTURING SECTOR

M. Srimannarayana

The present study aims to explore extent of Human ResourceDevelopment (HRD) climate prevalent in manufacturingorganizations in India. Based on the information collected from726 employees working in 18 organizations in manufacturingsector in India, this study has found that the overall HRDclimate prevailing in this sector is of moderate level only.

Keywords: HRD climate studies, general HRD climate,OCTAPAC culture, HRD mechanisms,manufacturing sector.

INTRODUCTION

An organization’s success is determined as much by the skill and motivationof its members as by almost any other factor. While this has always beentrue, the pace and volume of modern change is focusing attention on wayshuman resources development (HRD) activities can be used to ensureorganizational members have what it takes to successfully meet theirchallenges (Desimone, Werner and Harris, 2002). An optimal level ofdevelopment climate is essential for facilitating HRD activities (Rao andAbraham, 1986). This can be characterized by the tendencies such as treatingemployees as the most important resources, perceiving that developingemployees is the job of every manager, believing in the capability ofemployees, communicating openly, encouraging risk taking andexperimentation, making efforts to help employees recognize their strengthsand weaknesses, creating a general climate of trust, collaboration andautonomy, supportive personnel policies, and supportive HRD practices (TVRao and E. Abraham, 1986). The top management subscribing to thesevalues is a starting point. When a critical mass internalized these values,there emerges a conducive climate for HRD. This positive HRD climatemakes existing systems more effective and makes the organizations morereceptive to the introduction of relevant additional system (Athreya, 1988).A healthy HRD climate certainly bolsters the overall internal environmentof the organization, fosters employee commitment, involvement andsatisfaction with the job (Mishra. 1999).Management & Change, Volume 13, Number 1 (2009)© 2009 IILM Institute for Higher Education. All Rights Reserved.

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132 Human Resource Development .....

HRD CLIMATE STUDIES

Recognizing the importance of HRD climate, Center for HRD, Xavier LabourRelations Institute (XLRI, India) developed a 38-item HRD climatequestionnaire to survey the extent to which development climate exists inorganizations. The 38 items included in the questionnaire can be groupedinto three categories such as general climate, OCTAPAC culture and HRDmechanisms. The general climate items deal with the importance given tohuman resources development in general by the top management and linemanagers. The OCTAPAC items deal with the extent to which openness,confrontation, trust, autonomy, pro-activity, authenticity and collaborationare valued and promoted in the organization. The items dealing with HRDmechanisms measure the extent to which HRD mechanisms areimplemented seriously. Using this instrument the first survey of HRD climatein Indian organizations was carried out by T. V. Rao and E. Abraham (1986)among 41 organizations in India. The study found that the general HRDclimate in the organizations appears to be at an average level. The mostimportant factor contributing to this seems to be a general indifference onthe part of the employees on their own development. This was followed bythe top management’s lip sympathy and intellectual positivism to HRD butno emotional investment. In another study, E. Abraham (1989) found thatHRD climate is a powerful intervening variable in translating HRD practicesinto profit. Venkateswaran (1997) made a study in a public sectorundertaking in India and found that, to a large extent, a favorable HRDclimate was prevalent in the organization under study. M. Srimannarayana(2001) identified below average level of HRD climate in a softwareorganization in India. However, Agarwala (2002) found that the HRD climatewas significantly more developmental in IT industry when compared to theautomobile industry. Mishra, P and Bhardwaj, G. (2002) carried out a HRDclimate survey in a private sector undertaking in India and concluded thatthe HRD climate in that organization was good. Lewlyn L.R Rodrigues(2004) conducted a study in the engineering institutes in India and found theHRD climate a highly satisfactory one.

THE PRESENT STUDY

In the light of the forgoing observations, the study was undertaken to assessthe extent of HRD climate existing in a select manufacturing organizationsin India as perceived by employees. The information was collected from726 respondents working in 18 manufacturing organizations. Theseorganizations produce a vide variety of products such as steel, automobiles,

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M. Srimannarayana 133

medicines, electrical and electronic equipment, fast moving consumerproducts etc. The information was collected during May-June, 2008. Nouniform procedure of sampling could be followed. The questionnaires weregiven to the middle level executives randomly, taking into consideration oftheir availability and their interest to respond the questionnaire.

RESULTS AND DISCUSSION

Category-wise HRD Climate

As mentioned elsewhere, thirty eight items included in the questionnairewere grouped into three categories, namely, general climate, OCTAPACculture and HRD mechanisms. The information presented in Table 1indicates that the OCTAPAC culture was, relatively more prevalent thanthe general HRD climate and the HRD mechanisms.

Table 1 Category-wise HRD Climate

S.No. Category Mean Per cent1 General HRD climate 3.48 61.892 OCTAPAC culture 3.51 62.853 HRD mechanisms 3.49 62.22

Source: Survey ResultsTop management’s belief that human resources are an extremely importantresource and that they have to be treated more humanly and seniors guidingtheir juniors and preparing them for future responsibilities/roles they arelikely to take up are were the factors that contributed for general HRDclimate. Relatively high scores secured on collaboration, authenticity andtrust positioned OCTAPAC culture in the first place among the threecategories of HRD climate. The factors that contributed for fairly reasonablescores on HRD mechanisms included learning during training when employeesare nominated for training programmes, and their nomination to the trainingprogrammes based on their genuine training needs.

Overall HRD Climate

Overall, it is calculated that the mean score for the organization was 3.49(62.32 per cent), thereby indicating that a moderate HRD climate wasprevalent in the organization under study. The most important factors thatcontributed towards such a climate were found to include:

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(a) Using delegation of authority as an opportunity for developingjuniors.

(b) Helpful nature of people in the organizations.(c) When employees are sponsored for training, they take it seriously

and try to learn from the programmes they attend.(d) Top management believes that human resources are an extremely

important resource and that they have to be treated more humanly.(e) Employees are sponsored for training programmes based on

identification of training needs.(f) When any employee makes a mistake his supervisors treat it with

understanding and help him to learn from such mistakes rather thanpunishing him or discouraging him.

(g) Seniors guide their juniors and prepare them for futureresponsibilities/roles they are likely to take up.

(h) Employees are not afraid to express or discuss their feelings withtheir subordinates and

(i) Team spirit

Some important areas for improvement include job rotation that facilitatesemployee development, employees’ initiative to find out their strengths andweaknesses from their supervisors and colleagues, information on careeropportunities to the employees, encouragement for experimenting with newmethods and explore creative ideas, top management’s willingness to engagetime and energy, and organizational resources to ensure employeesdevelopment, and providing more employee welfare activities.

HRD Mechanisms

Implementation of HRD mechanisms such as training, performanceappraisal and feedback, potential appraisal, career planning, rewards, andemployee welfare were examined in the units under study. The items relatingto HRD mechanisms in the questionnaire that has been administered amongthe employees aim at measuring the extent of implementing HRDmechanisms seriously. Fifteen factors were identified in the questionnaire,which deals with the implementation of HRD mechanisms. Analysis ofresponses to all fifteen factors put together indicates that a moderate degreeof implementation of HRD mechanisms (62.22 per cent) has been prevalentin the organizations under study. Analysis according to HRM mechanismsis enumerated below:

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Training: Training is one of the most important subsystems of humanresource development. It is generally carried out either formally or informallyin almost all organisations irrespective of the size of the units. There is aprovision for on the job and off the job training in all the units under study. Amajority of the respondents of the present study have mentioned that whenemployees in their units are sponsored for training, they take it seriously andtry to learn from the programme they attend. Majority of them felt that theyare sponsored for training programmes on the basis of genuine trainingneeds. The items relating to training indicates a moderate (65.25per cent)implementation of training in the units under study.

Performance appraisal and feedback: Performance appraisal of sometype is practiced in most organisations all over the world (T. V. Rao, 1985).The organizations understudy appraises the employee performanceperiodically using assessment forms. A majority of the respondents of thestudy mentioned that in the process of giving feedback the weaknesses ofthe employees are communicated in a non threatening way. When feedbackis given to employees they take it seriously and use it for development.Performance appraisal in their organisations is based on objective assessmentand adequate information. But the negative point seems to be that employeesin these units do not take pains to find out their strengths and weaknessesfrom their supervising officers and colleagues. Thus the overall score of allthe items pertaining to this aspect, put together has been calculated as 62.62percent, which indicates moderate level of implementation of performanceappraisal and feedback mechanisms.

Potential appraisal and career planning: In organisations that subscribeto HRD, the potential (career enhancement possibilities) of every employeeis assessed periodically (T.V Rao, 1985). The young people joining in theorganisations are ambitious and career oriented. Career planning anddevelopment can become an effective tool for development of the employeesand a key factor in HRD system (Philips. J, 1987). It seems that theorganizations understudy did not place adequate processes for potentialappraisal and career planning for employees when compared to Trainingand performance appraisal. The overall score of all the items pertaining tothis aspect, put together has been calculated as 61.65per cent, which indicatesmoderate level of implementation of performance appraisal and feedbackmechanisms. Pointing out career opportunities to juniors by senior officers,informing about future plans of organizations that have bearing on careeropportunities, and lack of enough efforts to identify and utilizes the potentialof employees are the concerns of the respondents.

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Rewards and employee welfare: Reward systems are designed to attract,retain, motivate and maintain high standards of performance (Kanungo,1986). Recognizing and rewarding employee performance is one of theaspects of HRD. The overall score of the two items relating to rewardshas been calculated as 61.75per cent. That means a moderate situation hasbeen prevalent with regard to mechanisms in the units under study to rewardany good work done or any contribution made by employees and takingspecial care to appreciate it by supervising officers. It seems that theorganizations understudy do not ensure employee welfare to such an extentthat employees can save a lot of their mental energy for work purposes.

Comparatively speaking, it appears that training and performanceappraisal and feedback are evolved and matured in the organizations tosome extent, whereas rewards and employee welfare, and career planningare not that much matured. However improvements are required inimplementation pf all HRD mechanisms

CONCLUSION

Category wise analysis leads to the conclusion that OCTAPAC culture hasbeen more prevalent than HRD mechanisms and general HRD climate.Training and performance appraisal appear to be more mature practicesrather than career planning, rewards and employee welfare. Based on theoverall analysis it can be concluded that a moderate HRD climate has beenprevalent in the organizations surveyed. In retrospect, it appears that theorganizations focus more on business rather than people. Ultimately, it issuggested that the organizations may introduce fair employee welfareprogrammes and reward systems to improve employee satisfaction levelsand subsequently to gain advantage from the satisfied workers to increaseproductivity.

REFERENCES

Abraham, E (1989) “A Study of Human Resource Development Practicesin Indian Organisations”, PhD theses, Gujarat University, Ahmedabad.

Agarwala, Tanuja (2002) “Innovative Human Resource Practices and HRDClimate: A Comparison of Automobile and IT Industries”. In: Pareek,U, Osman-Gani, Ramnarayan and T.V. Rao (eds.) Human ResourceDevelopment in Asia. New Delhi: Oxford & IBH, 3-10.

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Athreya, M. B. (1988) “Integrated HRD System-Intervention Strategies”.In: Rao, T. V., K.K. Verma, A.K. Khandelwal and E. Abraham (ed.),Alternative Approaches and Strategies of Human ResourcesDevelopment: Jaipur: Rawat

Publications.

Desimone, R.L., J.M. Werner & D.M. Harris (2002) Human ResourceDevelopment. Fort Worth, TX: Harcourt College Publishers

Lewlyn, L. & R Rodrigues (2004) “Correlates of Human ResourceDevelopment Climate Dimensions: An Empirical Study in EngineeringInstitutes in India”, South Asian Journal of Management, 11(2): 81.

Mishra M. (1999) “Job Satisfaction as a Correlate of HRD Climate (AnEmpirical Study)”, Indian Journal of Training and Development, 29(2): 5.

Mishra, P. & G. Bhardwaj (2002). “Human Resource Development Climate:An Empirical Study among Private Sector Managers”, Indian Journalof Industrial Relations, 38 (1): 66.

Rao, T. V. (1985) “Integrated Human Resource Development System”. In:Goodstein, L. D. & J. W. Pfeiffer, The 1985 Annual: DevelopingHuman Resources. San Diego CA: University Associates.

.Rao, T.V. & E. Abraham (1986) “Human Resource Development Climate

in Indian Organizations”. In: Rao T.V. and D. F. Pereira (ed.), RecentExperiences in Human Resources Development, pp. 70-98. New Delhi:Oxford & IBH.

Rao, T.V. (1999) HRD Audit: Evaluating the Human Resource Functionfor Business Improvement. New Delhi: Response Books.

Srimannarayana,. M. (2001) “HRD Climate in a Software Organization”,HRD Newsletter, 2 (3): 6-14.

Venkateswaran, K. P. S. (1997) “A Note on HRD Climate”, Vikalpa, 22(1):.51-53.

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Appendix 1

General HRD ClimateNo Item Mean Per cent1 The top management of this organization goes out of

its way to make sure that employees enjoy their work. 3.40 60.002 The top management believes that human resources

are an extremely important resource and that theyhave to be treated more humanly. 3.63 65.75

3 Development of the subordinates is seen as animportant part of their job by the managers/officersherein. 3.52 63.00

4 The personnel policies in this organizationfacilitate employees’ development. 3.41 60.25

5 The top management is willing to invest their time andenergy including other organizational resources toensure employees’ development. 3.39 59.75

6 Senior officers/executive in this organization take activeinterest in their juniors and help them learn their job. 3.56 64.00

7 People lacking competence in doing their jobs arehelped to acquire competence rather than being leftunattended. 3.47 61.75

8 Managers in this organization believe that employeebehaviour can be changed and people can bedeveloped at any stage of their life. 3.41 60.25

11 The psychological climate in this organization is veryconducive to any employee interested in developingoneself by acquiring new knowledge and skills. 3.52 63.00

13 The top management of this organization makesefforts to identify and utilize employees’ potential. 3.47 61.75

36 The organization’s future plans are made known tomanagerial staff to help them develop their juniorsand prepare them for future. 3.45 61.25

Overall 3.48 61.89

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Appendix 2OCTAPAC Culture

MFGNo. Item Mean Per centOPENESS 10 Employees in this organization are very informal and do

not hesitate to discuss their personal problems with theirsupervisors. 3.51 62.75

18 People in this organization do not have any fixed mentalimpressions about each other. 3.25 56.25

28 Employees are not afraid to express or discuss theirfeelings with their superiors. 3.50 62.50

29 Employees are not afraid to express or discuss theirfeelings with their subordinates. 3.58 64.50

Overall 3.46 61.50CONFRONTATION23 Employees in this organization take pains to find out

their strengths and weaknesses from their supervisingofficers or colleagues. 3.37 59.25

28 Employees are not afraid to express or discuss theirfeelings with their superiors. 3.50 62.50

29 Employees are not afraid to express or discuss theirfeelings with their subordinates. 3.58 64.50

34 When problems arise people discuss these problemsopenly and try to solve them rather than keep accusingeach other behind the back. 3.46 61.50

Overall 3.48 61.94TRUST7 People lacking competence in doing their jobs are

helped to acquire competence rather than being leftunattended. 3.47 61.75

20 When any employee makes a mistake hissupervisors treat it with understanding and help him tolearn from such mistakes rather than punishing him ordiscouraging him. 3.60 65.00

27 People trust each other in this organization. 3.50 62.50 Overall 3.52 63.08

AUTONOMY19 Employees are encouraged to experiment with new

methods and try out creative ideas. 3.38 59.5025 Employees returning from training programmes are given

opportunities to try out what they have learnt. 3.49 62.2530 Employees are encouraged to take initiative and do

things on their own without having to wait for instructions

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from supervisors. 3.49 62.2531 Delegation of authority to encourage juniors to develop

handling higher responsibilities is quite common in thisorganization. 3.47 61.75

32 When seniors delegate authority to juniors, the juniorsuse it as an opportunity for development. 3.75 68.75

Overall 3.52 62.90PROACTIVITY13 The top management of this organization makes efforts to

identify and utilize the potential of the employees. 3.47 61.7519 Employees are encouraged to experiment with new

methods and try out creative ideas. 3.38 59.5030 Employees are encouraged to take initiative and do

things on their own without having to wait forinstructions from supervisors. 3.49 62.25

Overall 3.45 61.17

AUTHENTICITY22 When behavior feedback is given to employees they take

it seriously and use it for development. 3.49 62.2524 When employees are sponsored for training, they take it

seriously and try to learn from the programmes they attend. 3.72 68.0025 Employees returning from training programmes are given

opportunities to try out what they have learnt. 3.49 62.2526 Employees are sponsored for training programmes on the

basis of genuine training needs. 3.62 65.50 Overall 3.58 64.50

COLLABORATION9 People in this organization are helpful to each other. 3.75 68.7533 Team spirit is of high order in this organization. 3.58 64.5036 The organization’s future plans are made known to the

managerial staff to help them develop their juniors andprepare them for future. 3.45 61.25

Overall 3.59 64.83 Overall OCTAPAC Culture 3.51 62.85

DIVINE HELP

Divine guidance often comes when the horizon is the blackest.

- Mohandas K. Gandhi

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Appendix 3

HRD Mechanisms

7 People lacking competence in doing their jobs are helped to

acquire competence rather than being left unattended. 3.47 61.7512 Seniors guide their juniors and prepare them for future

responsibilities/roles they are likely to take up. 3.58 64.5013 The top management makes efforts to identify and utilize

the potential of the employees. 3.47 61.7514 Promotion decisions are based on the suitability of the

promotee rather than based on any favouritism or partiality. 3.46 61.5015 There are mechanisms in this organization to reward any

good work done or any contribution made by employees. 3.52 63.0016 When an employee does good work his supervising

officers take special care to appreciate it. 3.5 62.5017 Performance appraisal reports in this organization are

based on objective assessment and adequate informationand not on favouritism or partiality. 3.49 62.25

21 Weaknesses of employees are communicated to them ina non-threatening way. 3.52 63.00

24 When employees are sponsored for training, they take itseriously and try to learn from the programmes they attend. 3.72 68.00

25 Employees returning from training programmes are givenopportunities to explore what they have learnt. 3.49 62.25

26 Employees are sponsored for training programmes basedon identification of training needs. 3.62 65.50

35 Career opportunities are pointed out to juniors bysenior officers in the organization. 3.37 59.25

36 The organization’s future plans are made known to themanagerial staff to help them develop their juniors andprepare them for future. 3.45 61.25

37 This organization ensures employee welfare to such anextent that the employees can save a lot of their mentalenergy for work purposes. 3.39 59.75

38 Job-rotation in this organization facilitates employeedevelopment. 3.28 57.00 Overall 3.49 62.22

No. Item Per centMFGMean

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The most fascinating characteristic of Panditji is his sense of thebeautiful. His charming smile, the flower in his button-hole, theway he loves to surround himself with people of culture, all showhis hunger of beauty. Gandhiji, with his tremendous personalityand dynamic gospel, inaugurated an era of austere simplicity andthe dominance of the useful over the beautiful. Panditji was,perhaps, one of the very few who came into initiate contact withhim but remained untouched by the full implication of the philosophy.Through he dedicated himself to high endeavour under theguidance of his Master, the vision of beauty has never left Panditji.He expresses it in tasteful surroundings, in a love for grace andharmony, in color and form. His love for genuine art and literatureremains undimmed. Even in the grim battle which he had beenfighting since his young days, he has devoted himself to art andliterature and his stray utterance on the subject reveal the passionfor artistic perfection. Panditji’s sense of beauty is allied to hisideals. Perhaps they are counterparts of the same vision. An artisthas been flung not only in the battle of freedom but in the vortex ofpower politics. This sets him off against the murky background ofmodern times. To him beauty is justice and justice beauty - justice,international, national, social as well as personal. Only the otherday, during his impassioned broadcast on food, he said : “ I loveflowers, but today the sight of cluster of bananas is sweeter toeyes than any flower”.

Source: Bhavan’s Journal, November 15, 2009.

K.M. MUNSHI ON JAWAHARLAL NEHRU

10-Human Resource Development Climate in Manufacturing Sector

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