Page 1 of 19

Journal for Studies in Management and Planning

Available at http://edupediapublications.org/journals/index.php/JSMaP/

e-ISSN: 2395-0463

Volume 02 Issue 2

February 2016

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 223

Hrd Climate:Factors In Banking Sector

Bharti Vij ; Dr.V.K.Jain

1Lecturer in Commerce Gmn (Pg) College, Ambala Cantt

2Associate Professor and Head Gmn (Pg) College, Ambala Cantt

Bharti525@gmail.com;vkjaingmn@gmail.com

Abstract

Human resources development aims at

developing all the employees of an

organization in a planned manner not only

to acquire and apply their existing

capabilities but also their inner potentials

and help in building a climate with strong

inter personal bonds which help the

organization to achieve its goal. HRD

climate is extremely important for the

ultimate achievement of the business

goals. The important people and the

challenge of developing then make out a

strong case for the evolution of HRD

climate prevailing in business

organizations in the current dynamic and

volatile environment. For this purpose, the

data of the respondents of the two public

sector banks on 38-items were clubbed

together. This was done, keeping in mind,

the pattern of inter-relations of the two

organizations on various HRD

mechanisms were similar to a large extent

which shows that both the public sector

banks use similar HRD practices to a

large extent.

Keywords: Human resource development,

HRD climate, public banks, HRD factors.

Introduction

Human resources development aims at

developing all the employees of an

organization in a planned manner not only

to acquire and apply their existing

capabilities but also their inner potentials

and help in building a climate with strong

inter personal bonds which help the

organization to achieve its goal. Whether

potential or existing in any organization

human resources is most valuable of all the

resources and the most vital for the

successful achievement of its objectives.

The contribution they make may not be

arithmetically calculable but it is indeed

highly significant in achieving the

organizational goals. Human resources

development (HRD) is, therefore, gaining

significance in the success of any

industrial organization. The organization

today have released that it is the

contribution of the human resources which

help them to grow, proper and attain their

objectives.

Page 2 of 19

Journal for Studies in Management and Planning

Available at http://edupediapublications.org/journals/index.php/JSMaP/

e-ISSN: 2395-0463

Volume 02 Issue 2

February 2016

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 224

Leonard Nadler of George Washington

University (USA) who is acclaimed as the

originator of the concept of HRD

sometimes in the early seventies defines it

as a series of organized activities (such as

training, education and development)

conducted within specified period of time

and designed to produce behavioral

change.

HRD Climate

The HRD climate of an organization plays

a very important role in ensuring the

competency, motivation and development

of its employees. The HRD climate is both

a means to an end as well as ends itself. In

the recent past simple instruments have

been developed to measure the HRD

climate in the organization.

HRD as a concept demands a specific and

congenial climate to take root or it can be

said that success of HRD in an

organization to depends to a large extent

on the existence of the favorable HRD

climate. HRD climate is the perception

that the employees have about the policies,

procedures, practices and conditions which

exist in the working environment.

HRD climate is extremely important for

the ultimate achievement of the business

goals. The positive HRD climate renders

the existing systems more effective and

makes the organizations more receptive to

the introduction of relevant additional

system (Athreya, 1988). An organization

that has better HRD climate and processes

is likely to be more effective than an

organization that does not have them (Rao.

1992). In addition, HRD climate has been

reported to be a significant predictor of

managerial effectiveness.

HRD in Public Sector Banks

In 1979, the State Bank of India (SBI) set

up a formal HRD department at the

Central office and also at the Local Head

Office level. SBI which already had a well

established training system focused their

attention on redesigning the appraisal

system, OD exercise, using role

negotiations, team building and survey

feedback exercises. The State Bank of

Patiala introduced a monthly publication

‘HRD Letter’ to make aware about the

HRD philosophy. The Punjab National

Bank (PNB) has also taken steps to create

environment where employees can

contributes their best. Recognition of good

work generated sense of competitiveness

motivates through guidance and

counseling specialized training to upgrade

technical, human and conceptual skills.

The bank is guided by the philosophy of

individual development in harmony with

the growth of organization. Incentive

schemes such as the best branch award for

Page 3 of 19

Journal for Studies in Management and Planning

Available at http://edupediapublications.org/journals/index.php/JSMaP/

e-ISSN: 2395-0463

Volume 02 Issue 2

February 2016

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 225

customer service, award under employees’

suggestions schemes etc. were instituted.

As part of management development

programme was conducted at

Administrative Staff College of India,

Hyderabad for top executives. Further, the

bank also organized a programme on Asset

Liability Management for top and senior

executives of the Bank. In Dec, 2000 the

PNB also set up the HRD department at its

Head office, Zonal offices and Regional

offices in place of Personnel Department

(PD).

Thus, the HRD in banks has caught on,

may banks have started a formal HRD

department. While in some banks the

discrete HRD function/department has

shown visible transition in their personnel

policies where as in some other banks only

the titles have changed but HRD

departments continue to perform the

routine activities of personnel

administration.

Review of Literature

Pritchard and Marasick (1973) define

HRD climate as a relatively enduring

quality of an organizations internal

environment, distinguishing it from other

organizations, which: (a) results from the

behaviour and practice of members of the

organization especially in top

management, (b) is perceived by members

of the organization, (c) serves as a basis

for interpreting the situation, and (d) acts

as a source of pressure for directing

activity.

Ray (1974) compared the climates of

organizations in public and private sectors

as seen through the eyes of the urban cities

of Delhi. The public sector, as compared to

the private sector, was perceived to be less

efficient because of nepotism, arbitrariness

in Union-Management relations

inexperienced managers lacking adequate

management system and influence by

government and political forces.

Rao and Abraham [1986] made a study of

52 organizations which shows that overall

HRD climate in these organizations was

about 54% which is rather low. An optimal

level of development climate is essential

for facilitating HRD activities. He has

indicated various factors which can be

helpful in improving the overall HRD

climate in these organizations.

Jain, Singhal, and Singh [1997] conducted

a study on HRD Climate of two major

public sector organizations and tried to

determine inter correlations in their HRD

Variables They observed that some of

these variables were significantly

correlated and made a significant