HRD in India: A Factual Update
October 22, 1974 Larsen & Toubro writes to Udai Pareek of Indian
Institute of Management Ahmedabad to review the performance appraisal system
and suggest it make it more effective. Udai Pareek and T. V. Rao interview
about 40 officers (GMMs, JGMs, DGMs, Managers, Covenanted Officers and
Supervisors) from L&T and review the system. On the basis of their review
Pareek and Rao suggest the introduction of an Integrated Human Resources
Development system to include Performance appraisal, Potential appraisal,
Career Planning and Development, Feedback and counselling, training and
Organization Development. To quote their report "We recommend that
Performance appraisal, Potential Appraisal, Feedback and counselling, Career
Development and Career Planning and Training and Development get distinct
attention as unique parts of an integrated system which we call the Human
resources Development System". (Nowhere in international literature was
the term Human Resources Development System known to have been used till then.
Later we discovered that Len Nadler around this time sued the term in an ASTD
conference to mean Training and Education)
Pareek and Rao's report further stated "This system may either be
treated as a sub-system under the Personnel (Human Resources) function or may
be developed as a separate function, with strong linkages with the Personnel
(Human Resources) system.... While we recommend the development of an
integrated HRD System in L&T, we would like to point out that a lot of
work, effort, and commitment would be required for this purpose. Introduction
of a truncated system may defeat the purpose for which the system to be installed."
It was Udai Pareek who introduced the term Human Resources as senior consultant
of the project.
The report was presented to the Board in the presence of Holk Larsen. N
M Desai, Mr. Larsen and the Board accepted the report in toto and decided to
implement it. An implementation Task force was formed in L&T with Mr.
Govind Advani as Convenor of the HRD Implementation Task Force. Dr. D F Pereira
was appointed as D G M, HRD and the new department was created with Mr. S R
Subramniam as Vice-president Personnel and OD. In October 1975 after
taking a decision to implement HRD system, N M Desai requested Pareek and Rao
team to look into the other components of HR system. In their report submitted
in 1977 Pareek and Rao outlined the other components and HR system and also
outlined 14 principles underlying the system. These principles lift up the HR
function to new heights and gave it a higher role in managing the entire
organization set up including mechanism of structuring, integration of the
business, differentiation, and self renewal.
It was around this time Udai Pareek while addressing the top management
of State Bank of India at Hyderabad Staff College introduced to them the
concept of HRD. After listening to Udai Pareek the top management of SBI decided
to introduce the HRD systems and also start a HRD Department in SBI. The
Associates of SBI stole the March and appointed HRD Managers in their Banks and
a year later SBI appointed Mr. Shanmugam as a CGM to head the HRD Department.
In 1977 T. V. Rao along with Udai Pareek conducted a series of programs to
training HRD Managers of Associate banks of SBI on the HRD concepts in a
program titled as Managing Motivation for Development by IIMA.
In 1978 Udai Pareek and SK Bhattacharya recommended the establishment of
a HRD Department in Bharat Earth Movers Limited Bangalore (BEML). BEML invited
Prof. T V Rao from IIMA to join and head the HR Department. Dr. Rao joined BEML
as advisor in General manager's capacity to establish the HRD function and
agreed to stay for a year and train up the subsequent team. In the same year
using his s experiences at BEML Rao and Pareek held a seminar at IIMA on the
new HR function. This is the first national workshop to disseminate the HRD
concepts. The various chapters written for a subsequent book by Pareek and Rao
(Designing and Managing HR systems published by Oxford & IBH see for latter
version of this book).
In 1981 T V Rao wrote an article on "HRD Old wine in a new
Bottle explaining the concept and origins of HRD in India
(see: http://iimahd.ernet.in/faculty-and-research/research-and-publication/working-papers.html&page=198&rnp_id=wp00447)
In 1983 I was invited to join XLRI as L&T Professor of HRD. I agreed
to join provided that XLRI agrees to set up a centre for HRD and also conduct an
annual seminar on HRD as a part of the Chair. Fr. Romuald D'Souza agreed with
my suggestion. Fr. E Abraham registered for is Ph. D. to work with me for Gujarat
University as a candidate through IIMA. I went to start the Centre and the centre
was inaugurated by N M Desai along with S R Subramaniam and D F Pereira in
February 1984. We mobilised some funds and organizations like IOC, State Bank
of Patiala become members of the Centre.
In 1984 Ravi Matthai died and I felt I had to get back to IIMA to
continue the work started by Ravi. I was very disappointed with the way HRD is taking
shape. T&D people renamed themselves as HRD and personnel departments began
to re-title themselves as HR Departments without understanding the philosophy
of HRD as envisaged by us. I can't let this go on. We organised a national seminar
on HRD as a part of the L&T Chair. Dr Pereira facilitated this. Udai Pareek
was in Indonesia working with Rolf Lynton and helping the Ministry of Health on
a HTRD project.
I used the seminar as an opportunity to sow the seeds of starting a professional
body to continue the work I started at XLRI. I was aware that the Centre for
HRD would not continue the way we envisaged as Fr. Abraham was moving to
Ahmedabd to complete his Ph. D. The only way is to have a body as IIMA already
refused my suggestion to start a HRD centre (an also Entrepreneurship centre) earlier
as a part of the Committee for Future Directions (headed by Dr. Rangarajan).
IIMA's argument was that if every faculty specialising in an area wants to
start a centre there will be too many centres and IIMA can't contain. Years
after this IIMA started an incubation centre.
On the last day of the seminar at Mumbai on March 2nd, 1985 I proposed
that we continue to learn from each other independent of XLTI, IIMA and
L&T. The concept of an association was floated and learning Frome each other
was initiated in the last sessions. Rajen suggested the concept of Network and
we decided to alter call ourselves National HRD Network. I returned back to
IIMA end of March 1985 and Fr. Abraham joined me back to complete his Ph. D.
The Centre for HRD sued to run from St. Xavier's Loyola Scholl and Fr. Abraham
used to steer it and we both together toured round the country next two years relentlessly
and made sure that the chapter conceptualised in 1984 became active. Thanks to
IIMA I was asked to review the PGP and subsequently Chair it. It helped me to
travel to Chennai, Hyderabad, Bangalore, Delhi, and Mumbai. Consultancy with
SAIL helped me to travel to other places. Khandelwal, KK Verma, Rajen Gupta
supported from Ahmedabad and Baroda and Chandrasekhar and PVR Murthy from
Chennai. L&T and PVR played a significant role to facilitate my travel to Chennai.
We floated programs using the name of the Centre for HRD and promoting NHRDN.
Finally with the help of Mr. K K Nair of AMA we registered NHRDN at Ahmedabad
in 1986 as a trust and Society. Abraham and I were the first members. For
almost two years between 1985 and early 1987 we had no membership fee and enrolled
anyone interested. We used to print 200 newsletters from CHRD and mail it free.
We mobilised sponsorship for each issue from organizations I was consulting.
State Bank of Patiala, Sundram Clayton, MMTC, HPCL, L&T and a number of organizations
sued to sponsor and we mail the newsletter free. The registration address given
was wing No 14 IIMA (where my office was located). We announced the first
conference in Chennai and Chandrashekar of L&T ECC facilitated it. KK Verma,
Anil, Fr Abraham and T V Rao formed the committee to mobilise papers and
publish them to be handed over for the conference. We started the conference
with a CEO conclave on the first day. Economic Times brought out a special
edition of the paper for the conference. I talked to the editor Manu Shroff who
was a former colleague at IIMA and got him to do two special editions for the
conference. Media were very helpful. The first conference held in 1987 was big
hit. Over 200 delegates attended including several CEOs, and Civil servants
from Gujarat and other places attended. M R R Nair who attended the conference
showed a lot of interest. We spotted him as the next President and he readily agreed
to Chair the next Conference at Delhi and subsequently to become the
President.
It is during his President-ship, we organised a Mission-Vision workshop.
It is in this workshop the idea of an Institute to promote the objectives of
NHRDN was conceptualised as we realised that the NHRDN can’t achieve its
objectives as a professional body. The Academy of HRD was born. It was also
decided to make a separately registered Institution to promote research. The
secret behind the decision was the delay in accounts being submitted by various
chapters creating issues in NHRDN’s governance. We did not want AHRD to be
blocked by the difficulties faced by NHRDN. Also we needed to mobilise funds
for the Institution which was possible only when it was registered as a
separate body. Udai Pareek became President of NHRDN in 1991. By this time the standards of NHRDN conferences, objectives and the culture was well set. AHRD started a diploma program and graduated in its first program itself around 120 candidates. Even Indira gandhi Open University made films from NHRDN and AHRD inputs and widely sued in their programs. MS 22 course of IGNOU was entirely written by NHRDN and AHRD teams.