Page 192 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Unit 11: Human Resources and Development

examinations. But they were reluctant to admit this and instead targeted the engineering Notes
professionals for their own poor show. They, in fact, requested management to revise (a)
the guidelines, suggesting a quota system (3 from engineering and 2 from non-engineering
category every year, if selected in any business school) for selecting internal candidates
for educational benefits. They even wanted management to extend the scheme to all
employees securing admission (b) to any professional course on the basis of seniority.
Meanwhile Mr Raj Pal (31) a brilliant computer professional working in the Telecom
Software division for the past 4 years has been selected by IIM (A) for their PGDBA course.
He is the fourth candidate who secured admission in business schools in 1999. From the
non-engineering stream, two persons got selected but in lesser – known business schools.
Raj Pal's selection news came after the company has finalised the names of employees
who are going to be sponsored under the HRD scheme in 1999. In addition to pressures
from non-engineering candidates whose names have yet to be finalised, the company is
facing lot of criticism from the Software Division also where seniors are of the opinion
that the young professionals who get sponsored will either not return to the company or
will be given preference ahead of seniors in case of internal promotions. In future, they,
therefore, want the company to secure an undertaking from sponsored candidates to serve
the company in the same category for at least three years before becoming eligible for
promotion. If the sponsored ones decide to leave the company, they have to pay back the
money with 12% p.a. interest.
The company is not very sure whether the quota system be introduced or the present
scheme of picking up candidates on the basis of merit should be allowed to continue. The
growing popularity of the scheme has in fact led the management to think about certain
guidelines for its implementation without any operational problems in future.

Questions
1. What is the main problem in the case?
2. Should the quota system be introduced while selecting people under the HRD
scheme?
3. Should ITL insist on execution of a 3-year bond by the employees who avail benefits
under the HRD scheme?

4. Should ITL enlarge the scope of the scheme to include undergraduate and non-
engineering graduate employees for taking admission in management diploma/
degree courses offered by various national institutions?

11.4 Summary

 Human resource management is the art of procuring, developing and maintaining
competent workforce to achieve the goals of an organisation in an effective and efficient
way.
 Human resource Development aims at helping people to acquire competencies required
to perform all their functions effectively and make the organisation do well. HRD improves
the capabilities of people; promotes team spirit among employees, and helps an
organization achieve its goals efficiently.
 HRD has gained importance in recent times, as companies have realized the benefits of
treating their employees as valuable assets. There is an increasing realization in business
circles that HRD (not a Highly Redundant Department) would help people acquire
knowledge, skills, and capabilities needed to survive and flourish in a competitive world.

LOVELY PROFESSIONAL UNIVERSITY 185