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Refer to the Case study below. With increasing global competition, organizations are under tremendous pressure to improve their performance through reduction of cost and in

Refer to the Case study below. With increasing global competition, organizations are under tremendous pressure to improve their performance through reduction of cost and in quality up-gradation. Indian business organizations too have now realized that they are now in a more open, highly competitive, and market-oriented environment. The three challenges for Indian business organizations are - First, how to maximize return on investments. Second, how to be more innovative and customer driven. Third, how to renew and revitalize an organization? In this context, the most important steps are effective management; holistic development; and optimum utilization of human resources (Jha 1987; Sarathi 1987; Maheshwari & Sinha 1991) (55) In the past decade something quite different was happening in many Indian organizations, calling for a second look at traditional personnel functions and their integration with organizational objectives (Athalai 1987; Singh 1989; Nair & Rao 1990; Silvera 1990) (56). According to Singh & Sen (1992) (57) several steps were laken, such as, conceptualisation of employees as resources; strategic role of personnel functions; greater partnership to line managers in managing human resources; dovetailing of training with other personnel functions; synthesis of different personnel functions, etc. It is difficult to categorize these activities under a single label. Rather, they can be brought under the umbrella of Human Resource Development (HRD). The human resource development in India is of recent origin, and the terms gained currency only in the early seventies. In the opinion of Nadler the term "HRD" was first applied in 1968 in George Washington University. It was used in Miami at the conference of American Society for Training and Development in 1969. According to Nadler, the term was gaining more acceptances during the mid- 1970's, but many used it as a more alternative term than "Training & Development" (58). In the opinion of some management professionals, Japan is the first country to begin with HRD practices. "Better People", not merely better technology, is the surest way to a "Better Society", is the most popular belief in Japan (59). In the opinion of Prof. Udai Pareek, the term was first used in India in 1972 by the State Bank of India (60).

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