by Ramesh Ravichandran on Tuesday 30 April 2013, 7:59 PM | Category: Training & Development| View: 2125 views
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            The concept of public sector became prominent after the great Depression of the 1930's. The advent of Keynesian, Economics came as a severe below to classical theory of markets and signaled the departure flow the no – state intervention to almost total takeover and command of the market by the state.

            Public enterprises (PE's) in one form or another came to exist in almost all countries in the world although in the 1970's Thatcherism in England paved the way for the re – emergence of market forces in resolving the economic problems.

            The debate today is on the area of the economy that should be exercised by parliament and government to ensure accountability without stifling initiative or violating the canons of sound business management.


            The term “Public Enterprise” covers all undertakings which are directed either by a branch of government itself or by a body set up by the Government to direct the undertaking, in public interest. Thus, a public sector enterprise is by definition, “an enterprise where there is no ownership, where its functions are not merely confined to the maximization of profits or the promotion of the private interest of the enterprise, but are governed by the public or social interest, and where the management us responsible to the government either directly as in a departmental undertaking, or indirectly as in government companies and corporations”.



Public enterprises at least till very recent times have been seen as instruments of state policy to achieve the stated objectives as embodied in the constitution and the five year plans. More and more gas had been generated to inflate the balloon that was the public sector.


According to M.N. MALLYA

            “Public Enterprises are autonomous or semi autonomous corporations and companies established, owned and controlled by the state and engaged in industrial and commercial activities.”

            Public enterprises are also known as “public undertakings” and “State enterprises”.

            Public enterprises are collectively known as the “public Sector”


  1. The ownership and control of the public enterprises are vested with the government.
  2. The financing of public enterprises is primarily done by the government.
  3. The management is done by the government which is the owner such enterprises. The management is bureaucratic in nature.
  4. Public enterprises are accountable to the public through the government or the legislature.
  5. The main motto of the public enterprises is service to the public.




  1. Setting up of public enterprises help to abolish to private monopolies, there by concentration of power in the hands of few averted.
  2. It ensures promotion of public welfare.
  3. There is greater harmony and co – ordination among the various industries which are brought under state control.
  4. It ensures balanced regional development by setting up industries in the backward areas.
  5. The surplus profits can be used for the economic development of the nation.
  6. Workers can get a better deal in public enterprises.



  1. Assisting in accelerating the pace of economic growth.
  2. Helping to reduce inequalities of income and wealth
  3. Increasing opportunities for gainful employment.
  4. Preventing the growth of monopolies,
  5. Mobilizing and canalizing public savings.
  6. Gaining control of the commanding heights of the economy.
  7. Promoting critical development in terms of social change and strategic value.
  8. Providing commercial surpluses to finance economic development
  9. Achieving self reliance in different technologies.
  10. Creating basic, heavy and strategic industries involving huge sums of financial resources,.
  11. Ensuring balanced regional development by dispersal of economic activity in the backward and remote areas of the country.
  12. To serve as a model employers


            One of the most popular theories of motivation has been propounded by Abraham Maslow  a famous social Scientist. According to him the behavior of an individual at a particular moment is usually determined by his strongest need, the need to have a certain priority or hierarchy.

            Maslow was of the view that needs have priority. According to Maslow, the basic human needs are set in a hierarchy as follows.

  1. Physiological needs
  2. Security or safety needs
  3. Social needs
  4. Esteem or Ego needs
  5. Self – Actualization needs

At the lowest level are physiological needs for survival. As one need is responsibly satisfied the next higher order need becomes operational. This happens because a satisfied need is no longer a motivator, only unsatisfied needs impel people to act, until physiological needs are satisfied to the degree needed for the efficient operation of the body. Other levels will provide him with little satisfaction and motivation.




                        It is common knowledge that without a continuous development of employee's competencies no organaisation can survive today let alone grow or compete to be effective. Every manufacturing organization needs competent people in all areas whether they be cost reduction in delay's increased customer's satisfaction. better quality, prompt service, improved market image and so on.

            Human Resource Development is a newly emerging field of study. Although development of human beings has been in existence in some form or the other since the beginning of civilization, a planned and systematic approach to HRD in the corporate sector  emerged in the later half of the 20th century.

            In the past training was only planned way of developing human resources. But now HRD has emerged as an inter – disciplinary and integrated approach to the development of human resources.


            HRD is a process by which the employees of  an organization are helped in a continuous and planned way to:

1.      Acquire or sharpen their competencies required to perform various functions associated with their present or expected future roles;

2.      Discover and exploit their inner potentials for their own and organizational development ;

3.      Bring about an integration of individual and organizational goals; and

4.      Development on organization culture of trust, openness, teamwork and collaboration.



            As stated earlier, human resources is the most important active factor of production and refers to the knowledge, skill, creative ability, talents, values as an  beliefs of workforce. These resources play an importance role in deciding  the efficiency and effectiveness of an organization. Their development would lead to organizational development.

            Human Resources Development's main concern is the development of skill and abilities knowledge and competencies of people. The concept of HRD is of recent origin and is still in the developing stage. HRD is used at macro and micro level.


            At macro level it is the core of all developmental efforts aimed towards improvement of quality of life of people of a country. Human development efforts of the Government come under this category.


            At micro level, it is the improvement in the quality of executives, managers and employees of the organization aimed at increasing quality and enhancement of productivity. Any organization's efforts to enhance the quality and productivity fall under this category.

            HRD is defined by T. venkateswara Rao  in the organizational context as , “a process by which the employees of an organization are helped in a continuous planned process to  

  1. Acquire to sharpen capabilities required to  perform various functions associated with their present or expected future roles;
  2. Develop their general capabilities as individuals and discover and exploit their own inner potentials for their own and for organizational development purposes;
  3. Develop an organizational culture in which superior – subordinate relationship, teamwork and collaboration among sub-units are strong and contribute to the professional well – being and motivation of employees”.


HRD aims at all – round development of the workforce of the organization


Employee training refers to a temporary process utilization a systematic and organized procedure by which non – managerial personnel acquire technical knowledge and skills for a definite purpose. Development is a long – term educational process utilizing a systematic organized procedure by which managerial personnel learn conceptual and theoretical knowledge for general purposes.


            Edwin B. Flippo has defined training as, “the act of increasing the knowledge and skill of an employee for doing a particular job”.

            Training refers to the instructions provided to increase the knowledge and skill for the current job. Development, on the other hand, has broader scope and aims at developing an individual in all respects. Training aims at achieving immediate gains for the organization while development aims at achieving long – term needs of the organization. Organizations takes up executive development programmes to enhance the capabilities , potential and creative instinct of the managers enabling them to be more effective in performing various managerial functions to achieve the pre-determined goals.


The development programmes include a course in management systems that help the organization to develop into an efficient one in the long run. The development programmes are meant for executives and supervisory staff only. Training on the other hand, is meant for both. A closely – knit training and development programme along with other human resources strategy is a must for effective and efficient operation.

The following are the main development activities being pursued in various divisions of public sector:

Þ    Induction training

Þ    Retraining and development;

Þ    Supervisory development

Þ    Executive/management development programmes;

Þ    Quality training and

Þ    Worker – education programme.


The training needs are identified on individual, group, unit, corporate and Government directive level. Public sector has a standard system for training, which includes evaluation of the training programme.

A complete and through training and development is given to all the employees with reference to their work. In case of promotion, a special training is given to employees who seek promotion.


            The concept of “Employee Welfare” is dynamic. It bears a different interpretation from country to country and from time to time. Different factors like value systems, social institutions, degree of industrialization and the general level of social and economic development obtaining in a country at a particular time determine the contents of employee welfare.


            Rewards motivate people to join the organization. Organizations do certainly rely on rewards to get employees to come to work and perform effectively once they are hired.

            Outstanding works done by employees individually and in terms, are recongnised through:

©      Letters of appreciation;

©      Gift on completion of 10 years of service;

©      Suggestion awards

©      Sponsorship for competitions outside;

©      Annual house-keeping and safety awards

©      Quality circle awards



            According to B.P. Singh the term organization development first appeared around 1957, when it was used by a number of theorists including Black and Mouton, shepherd and Bechard. It is based on psychology and sociology.

            Generally organization development is an educational strategy which focuses on the whole culture of the organization in order to bring about planned changes. It attempts to chance beliefs attitudes values and structure – in fact, the entire culture – of the organization so that it may better adapt to technology and live with the pace of change. Thus, organization development may be defined as a technique for bringing change in the entire aspects of the organization so that change is easily absorbed.



            The subject of Human Resource development is dynamic and fairly wide. It means different interpretation and is not limited to any one country or one region, one industry or occupation.

            The line of democracy could not be very précised but what should be common is that the welfare measures ameliorate the working and living conditions of the workers. The ultimate goal of providing the HRD is to help the management. To get more efficient from the workman and help them is to lead happy and satisfactory life.  


1.      Balu. V  Human Resources Development

2.      Rao. T.V Human Resources Development, Oxford and IBH publishing co, New Delhi.

3.      Sharma. R personnal management an industrial Relations(2001).

4.      Srivatsava Training & Development 

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