CHAPTER II

REVIEW OF LITERATURE

2.1 INTRODUCTION
Winds of change are sweeping across the corporate landscape and there is an increasing
need to cope with the ever changing forces of competition, technological onslaught, and
new trend in the economy which has led to a growing awareness that productive
utilization of human resource is the key to organizational success. Human resource is
being increasingly recognized as a prime source of strategic advantage. The need for its
effective development is, therefore more important than ever before. Achieving
competitive success through people requires viewing people as a resource and hence
investing in their development is must. The concept of Human Resource Development
(HRD) is gaining widespread popularity everywhere. In a changing environment an
organization can be dynamic and growth-oriented only by developing its employees.
The term Human Resource Development (HRD) has gained wide currency in India
especially since the early 1980s. In fact, contrary to the trend elsewhere, the buzz word
in people management in India is HRD and not HRM (Saini, 2000,35). There exists a
good deal of confusion over the issue of what is HRD all about or what it stands for and
whether it is in any way different from training or Personnel Management or Human
Resource management. Different people have tended to use the term HRD in different
ways in India. For example, HRD is often equated with Training and in many
organizations, the Training alone is called the HRD department (Rao, 1999, 11). Similarly
many others have used the terms HRD and Personnel Management interchangeably.
23

Many people have used the term HRD and HRM also synonymously (Kandula, 2001 ;
Pareek et al, 2002) . On the other hand, some others have tended to differentiate the two
terms. For example, Rao (1999) does not favour the use of the term HRM as it denotes
control of employees which conflicts with the objective of HRD i.e., development of
employees. On the other hand, Saini (2000, 27) argues that HRM is more macro in its
approach and is concerned with HR strategies and systems while HRD deals more with
the micro-issues of human processes leading to the development of

human resources.

Pareek and Rao (1992, 3) also seem to concur with this distinction. It is, no wonder that
not only students , managers and academicians in this field often raise the question as to
what is HRD and whether it is same as or different from Training or Personnel
Management or Human Resource Management.
As the popularity of the concept grew, many research workers at national and
international level tried to gather the important facts relating to HRD in various
organization. This chapter reviews the studies already done and major findings that have
come forth from those studies. The review in this chapter is discussed under five broad
heads;

Theoretical framework of HRD

HRD in general

HRD in service sector

HRD in banking sector

Managerial effectiveness

24

2.2 THEORETICAL FRAMEWORK OF HRD

The concept of HRD is multidimensional as has been defined by economist, social
scientist, industrialist managers and other academicians in different ways and from
different perspectives. In the broad sense HRD is the process of increasing knowledge
and skill of the people in the given society. In the national context, HRD is a process by
which people on various groups are helped in improving their competence continuously
to make them more self reliant and develop a sense of pride in their performance(Rao et
al.,1998)In economics, it means accumulation of qualitative upgradation of human capital
and its effective utilization for the development of the economy. In politics, HRD refers
to preparing people for active participation in the political process. From the social and
cultural point of view HRD enriches life(Verma,1998).In industrial organizations HRD
focuses on the three aspects of people: (1) the human aspects where people are seen as
having skills, potential an ability to grow, change and develop;(2) the resource aspect
where individual are considered as resources rather than problems; and(3) the
development aspect, where the emphasis is on discovering and nurturing of human
potential.
Dynamic employees are essential for any organization that would like to be dynamic and
growth oriented. Employees who are competent ,motivated, proactive and have a high
activity level can be considered as dynamic employees along with the several other
qualities.
Human resource development in the organizational context is a process by which the
employees of an organization are helped in a continuous, planned way to
1- Acquire or sharpen capabilities required to perform various functions associated
with their present or expected future roles;
25

2- Develop their general capabilities and exploit their own inner potentials for their
own and organizational development purpose,
3- Develop an organizational culture in which supervisor-subordinate relationships,
teamwork, and collaboration among subunits are strong and contribute to the
professional well-being, motivation and pride of employees (Leonard D
Goodstein and William Pfeiffer)
Dr. Leonard Nadler in the United States in1969 has defined HRD as 1) a series of
organized activities 2)conducted with specific time and 3)designed to produce behavioral
change
HRD is a philosophy of management.It is a concept that provides a meta value, a kind of
subsuming norm which guides management approaches to its employees. In a basic sense,
HRD is a old hat. It is an archetypal idea which is of a kind with the concept about the
rights and duties of man which democratic constitution the world over consider
inalienable and inherent in the mans nature.
HRD places a premium on the dignity and the potential of people where balance sheet
show people on the debit side. HRD seeks just not to show them on the credit side, but
emphasizes that they have to be treated with respect as human beings and not mere cogs
in the wheel of production
Essentially therefore HRD is a humanistic concept based on respect for dignity of man
and on a belief in the limitless potential of those who feel apologetic about espousing
humanistic marshall laboured evidence to justify humanistic assumptions. The absurdity
of the approach can be demonstrated empirically, if one goes about looking for clinching
evidence either in the past or in the present times to justify the kind of assumptions about

26

the rights of man, about peace and freedom ,which are taken to be self-evident in
democratic constitution.
Acc to Clean Maggenson HRD may be defined as development of the people by
providing the right environment where each individual may grow to his potentialities.
Human Recourse are viewed as total knowledge, skills, creative abilities ,talent and
aptitudes of an organizations workforce as well as values, attitude and beliefs of
individuals involved
Acc to Ishwar Dyal HRD involves
a) ways to better adjust the individual to its job and the environment.
b) The greatest involvement of an employee in various aspects of his work and
c) The greatest concern for enhancing the capabilities of the individual.
Acc to Udai Pareek Broadly there are three meaning attached to the concept of HRD .
In the first place persons working in the organization are regarded as the valuable
resource implying that there is need to invest time and effort in their development.
Secondly they are human resource which means that they have their own characteristics
and therefore cannot be treated like material resource. The approach focuses on the need
to humanize organizational life and introduce human values in the organization .And
thirdly the term human resource does not merely focus on employees and individuals, but
also in other social realities, units and processes in the organization. These include the
role of a job a person has in the organization ,the dyadic unit (consisting of the person and
his supervisor)the various teams in which people work, the inter-team processes and the
entity of total organization

27

Acc to L P Singh HRD refers to the improvement in the capacities and capabilities of the
personnel in relation to the needs of that particular sector. It involves creation of the
climate in which the flower of human knowledge, skills ,capabilities, creativity can
bloom. HRD seeks to provide a package of systems
and processes through which these can be cultivated and enhanced among the people
forming a part of the network of roles in that sector
HRD is a new systematic approach to proactively deal with issues, related to individual
employees and teams, and organizations and a movement to develop organizational
capability to manage change and challenge (Pareek,Udai 1991)
Human resource development can be defined as a process under taken to promote the
intellectual, moral, psychological, cultural, social and economic development of the
individual, a resource for the community. It means a total all around development of a
person so that he can contribute his best to the community and the nation.
Walton, 1985 in attempting definition of HR practices, stresses mutuality between
employer and employees i.e mutual goal, mutual influence, mutual rewards mutual
responsibility. The theories and policies of mutuality will elicit commitment which in turn
will yield both better economic performance and greater human development.
HRD is now widely understood as a system of frameworks, methods and processes aimed
at systematically discovering, developing and using a persons capabilities to the fullest
extent both for individual and organizational growth and well being(Rao,1988)
HRD is operationalised through the management practices and organizational processes.
It is an approach, a philosophy and a belief that people are capable of growth when a
conducive environment is provided. This belief is widely shared by key people and a
28

good management practices at all levels of the organizations. The emphasis in such
organizations is on developing conducive environment, and practices that facilitate
growth of the people
The execution of HRD practices is based on beliefs, philosophy and values. It believes
that human beings are most important assets of the organization and unlike other resource
can be developed to an unlimited extent. To achieve this, a conducive culture must be
build on values of openness, pro-activity, trust, mutuality and collaboration. It will give
the employees a sense of belonging and therefore, they will feel committed to their work.
This sense of belonging can be enhanced if the basic and higher level needs of the
employees are taken care of. It also believes that it is the responsibility of every manager
to develop his subordinates and it is the duty of the organization to see that every
employee is developed so that the objective of the individual and the organization can be
achieved.
HRD in the organizational context is a process through which employees and group of
employees in the organization are assisted in realizing their full potential in the present
and future jobs, there by creating a culture conducive for the organization to achieve its
objective effectively. This process is continuous and planned.
It is the science and the practice that deals with the nature of employment relationship and
all decisions, actions, and issues that relate to this relationship. In practice, it involves an
organizations acquisition, development and utilization of employees, as well as
relationship to an organization and its performance(Ferris at.el.1995)
The appropriate organizational structure and management depends on the task it must
accomplish, the people who are its members, and the internal and external environment of
the organization. Thus, organization is influenced by three major factors, viz., the
29

individual who make up the organization, the organization operates and the environment.
Effective management of the interfaces between these factors-between the individual and
the organization, and between the organization and its environment are central to the
success of organization.
The crucial inputs, among others, to an organization are its human resources. People bring
to their jobs diversity of skills, needs , goals, and expectations They are socialized into the
organization through its hiring to begin with, and their continuous functioning in the
organization.
The interface between the individual and the organization is critical to full utilization of
human resources. The individual and the organization establish a psychological contract
.The individual members are expected to make contribution to the organization which
provides certain rewards and expects in return certain contribution from the individual . It
is this interface between individual and the organization issues such as HR planning,
Work analysis , Career Development , Leadership , Job motivation, the appraisal reward
process, and the organization climate became important.
Thus human resources are the companys most valuable and strategic asset, the focused
involvement of the top management with institutionalizing leadership down the hierarchy
is a pre-requisite to attract and retain people. Enterprise vision and mission will not
become a reality unless employees are involved and integrated with companys goals. HR
provides the enabling work climate in the organization comprising of managerial values,
attitudes and styles.
The patterns of work relationships at work reflect the HRD philosophy. The managers,
who are encouraged to follow the role model of their seniors, perpetuate the philosophy

30

and the practices of HRD. In the process of organizational socialization they internalize
the values and attitudes of their leaders. The entire process is thus institutionalized.
The idea that individuals are capable of development is founded on the conviction that
people are important and their involvement is necessary for the organization to be
effective. This conviction is translated into practice through variety of programs that
facilitate individual development and lead to better adjustment with the environment.
HRD functionaries will have to analyze the situation to determine realistic ways in which
the management practices can be developed or modified to achieve the

intended goal as

stated above. To achieve success they have to initiate, promote, device, and follow up
HRD practices in the organization.
HRD involves seven major areas: planning, recruitment, selection, performance
evaluation, training and development, career management, and rewards. Together they
comprise HRD practices, for they describe the network of interrelated components. Top
management views the HRD practices as an important tool to enhance competitiveness.
The above definitions of HRD , taken together with its alignment to recruitment and
selection, point to its external integration with corporate strategy and internal integration
with other HR policy levers (Mabey and IIes, 1993). In an examination of company
practice Harrison (1993) identifies HRD as the critical function in the human resource
wheel . Harrison reasons that the development of people virtually absorbs all HRM
processes , such as planning, recruitment and selection, appraisal, training and rewards,
along with career development.
Armstrong (2001) defined that HRD is concerned with the provision of learning,
development and training opportunities to improve individual, team and organizational

31

performance. HRD is generally a business led- approach to tap the peoples potentiality
so that their strengths can be systematically brought in within the organization.
2.2.1 HRD MODEL
Figure 2.1 presents a model of strategic human resource development. It represents that
four levels of context are necessary to understand the contribution of SHRD. These are
the global environment, the internal business context including strategy and structure, the
influence of the job and the individual. These levels high-light the importance of
analyzing and interpreting the impact of context. The model recognizes the importance of
multiple stakeholders and partnerships that have emerged in organizations in the design,
development, and implementation of SRHD. The level of professionalism of HRD has
increased both domestically and globally. The model emphasizes both horizontal and
vertical linkages throughout. The model suggests a multiplicity of outcomes that are
stakeholder focused. These stakeholders react to and evaluate outcomes and provide input
into the SHRD process.

32

FIGURE 2.1 : Contextual and Dynamic Framework for SHRD

Source: Developed from ideas presented by Jackson and Schuler (2003 a, b), Way and Johnson
(2005), Espedal (2005), Gilley and Maycunich-Gilley (2002), and Ulrich (1996).

33

2.2.2 HRD Strategies, Systems and Practices

Transformational

Programme
Nomination
Processes

Traditional

Skills
Training

Managerial
Training
Needs
Analysis &
Evaluation
Systems

Training &
Development
Records
Programme
Design
Processes

Transactional

Individual
Development
Plans

Managerial &
Leadership
Development

Employee
Counseling

Performance
Management
& Coaching

Induction
&
Socialisation
Training

Strategic
Business
Partner
Learning
by
Doing

MultiSource
Feedback
Systems

Cultural
Change
Programmes
Communities
Of
Practices

Knowledge
Management

Career
Management
&
Development

Figure 2.2 : Categorization of SHRD Activities

Source: Based on ideas presented by Carrig (1997); Lepak, Bartol, and Erhardt (2005); Gilley
and Maycunich-Gilley (2002).

Lepak, Bartol and Erhardt (2005) propose three domains of potential HRD activity:
transactional, traditional, and transformational. Figure 3 uses this framework to categorize
SHRD activities in organizations. This framework suggests that Gilley and MaycunichGilleys (2002) organizational performance category fits comfort-ably into the traditional
category, whereas their two other domains fall into the transformational category.
Transactional HRD activities are of little value strategically. They do little to support the
strategic goals of the organization. The line between traditional and transformational
practices depends on the manner in which SHRD practices are used.

34

2.3 HRD IN GENERAL

Contemporary managerial literature suggests that traditional practices of managing
personnel are increasingly being displaced by Human Resource Development (beer
et.at.1985; Tichhy et.al. 1982)
The debate about the HR could be regarded as out crop of the current interest in corporate
and business strategy. Strategic management has assumed an overwhelming
significance among practitioners partly as a result of being heavily promoted in the
popular management literature (Peter and Waterman 1982).Academics (Mintzberg 1978;
Porter 1985 ) have also contributed to the populism of the concept of strategy in the HR
lexicon.
Garavan, Thomas N.; Heraty, Noreen; Morley, Michael. (1998) in their study entitled
Actors in the HRD process present information on the dominant theoretical approaches
in studying human resources development (HRD). The HRD literature is unsatisfactory in
a number of respects. This general dissatisfaction stems largely from its observable bias
toward micro models. While useful, these models fail adequately to explain HRD at an
organizational level in terms of both the intentions of organizational actors and their
inability to recognize fully the political and cultural dynamic of HRD. Most
fundamentally, however, micro models tend to assume convergence in respect of HRD
actors, values, expectations and priorities. The HRD literature is of little assistance in
explaining the content of HRD actors' values, role expectations, and evaluation criteria.
There is evidence from the human resource management literature to suggest that there
may be differences between actors. However, no study has attempted to delineate what
the nature of these differences might be. This represents a significant gap because

35

exploration of potential differences enables actors' conceptions and their degree of

convergence/divergence to be better understood on a theoretical level.
Uthayasurian K. (2002) in his study entitled Developing a performance Oriented
Climate has analyzed the employees perception of organizational climate. After studying
the said climate in his case study on Bharat Heavy Electrical Ltd., he found considerable
scope for improving the organizational climate as man is more than a biological animal.
Besides physiological needs he has other social and psychological needs for which the
other factor like performance review and reward, personnel policies and participative
management need to be appreciated adequately. Hence by paying special attention to
these needs, overall performance of organization would improved.
Motivation and morale as a tool of HRD by Negi et.al. (2001) examines implications
of motivational theories on management practices and observes that the Indian managers
have to deal with an industrial process that has telescoped the two hundred years of
western industrial development into a single generation. The manager still has to use fear
as a motivating factor. In the organized sector industrial trade unions are strong, the threat
of firing are no longer easy to implement. Even less drastic disciplinary action have to be
used very sparingly, thus reducing the potency of motivation through fear. Monetary
motivation does not pay much to absenteeism. Need for social motivation is gaining more
importance. Morale is very vital for every industrial effort and growth.
Agarwal Taniya (2002) in her study entitled HRM- The Emerging Trends focused on
identifying key employee and organizational outcomes that were likely influenced by
innovative human resource practices. In the changing business environment human factor
assumes more importance in the management of human resource for the enhancement of
the effectiveness of the organization. It becomes imperative to modify various routine

36

activities for the development of manpower. Agarwal opines that human resource
innovations integrating employees needs and expectations with organizational objectives
assume tremendous significance. A good organization is one that has quality people of
high potential. Therefore, there is an increasing preference for adopting management
through commitment.
Rao T. V. (1986) in his paper entitled, Integrated HRD system declares that HRD is a
process and not merely set of mechanisms and techniques. The mechanisms and
techniques such as performance appraisal, counseling, training, organizational
development, interventions are used to initiate, facilitate and promote this process in a
continuous way. Organizations can facilitate this process of development by planning for
it , by allocating organizational resources for the purpose and by examplifying HRD
philosophy that values human beings and promote their development. Employees
capabilities should continuously be acquired, sharpened and used for which an enabling
organizational culture is essential. Rao opines that to get full benefit of HRD, it must be
introduced as a total system within the organization. It is obvious for the top management
to understand that human beings are its vital recourses and therefore they should invest
their time and money and planned efforts in this vital resource. The value of openness,
trust, mutuality, collaboration and enthusiasm within system should be recognized by
every member of the organization. If implemented properly integrated HRD system can
contribute significantly to positive cultural changes, increased productivity, and
excellence in organizations. The various HRD mechanism and subsystems given in the
study will provide a basis for the proposed study in knowing as to how these systems
have been adhered to by the rural banking. There is no detailed mention of the personnel
policies in this study. Therefore, for making the study more comprehensive personnel
policies should be given the priority as these help in career planning and development,
37

potential appraisal, training and other mechanisms. Again all these mechanisms are of no
use unless the employee is communicated about his weaknesses and strengths through
proper counseling.
Moorthy K.N. (1994) in his paper entitled "HRM Organisational Strategy, Ethical
Concerns and Future Developments" has revealed that the basic purpose of HRM is to
improve the productive contribution of people to the organisation. All this is possible by
fulfilling the needs and challenges of society, by contributing to the organisational
effectiveness and by assisting employees in achieving their personal goals as far as these
enhance the individual's contribution to the organisation.
Sarkar Ashit K. (2000) in his article "Wanted Dynamic HR Policy" has highlighted that
the fast paced corporate changes during new century force for a critical, systematic and
competent review of human resource policy. He opines that performance of human
resource managers along with their other team members will be an important key and a
vital success factor. They need greater support and involvement from top management
and other functional departments towards maintaining and ensuring the future success of
the twenty first century organizations.
"Human Resource Development" by Megginsion et. al. (2001) is a fast tract MBA series
in which the basic issues of HRD are discussed in detail. These include learning and
training processes, HRD functions, evaluation and bench-marking, effectiveness and
learning for the new millennium. The authors have emphasized the importance of
integrating HRD activities within the wider framework of HRM. The training and
development function is vital part of management's responsibilities as it plays crucial role
in maintaining high quality of company's employees. They have also discussed various
learning theories that support practical improvements in training and development. The

38

learning is demanding and life changing way relating to self and organisations. They are
also of opinion that evaluation of training is essential as it aims to provide evidence to
support claims for effectiveness and positive outcomes, which can be basis of claims for
additional resources and organizational status and influence. Evaluation also explicitly
supports the process of change and improvement. Thus the authors have discussed
judiciously all the HRD related issues and the main focus is on training and development
activities, various learning theories and their practical implications and evaluation of
training effectiveness. But the authors have not made any mention of performance
appraisal, counseling, personnel policies and many more HRD mechanism, leaving
thereby a lot of scope to develop these areas in detail, more so, when applied to service
sector in the new business environment.
Bella Ya-Hui Lien, Juanita; McLean, Gary N (2004) in their work Portrait of
Taiwanese HR practitioners performing HRD tasks This interpretative study describes
the lived experiences of Taiwanese human resource (HR) practitioners who are
performing

human

resource

development

(HRD)

tasks.

Using

hermeneutic

phenomenology as the methodology, seven participants were interviewed about their

daily work experiences as HR practitioners. Three major themes emerged about HRD in
the Taiwanese work culture: (a) HRD is one aspect of HRM, (b) HRD is equated with
training in Taiwan and (c) HRD success relies on the visions and support of top
management.
McCauley, Cynthia D.(2005) in their study The mentoring tools. The article informs
that mentoring is often recognized as a useful tool for human resource development
(HRD). The basis of its endorsement is twofold. First, there is a widely shared
understanding of the basic concept of mentoring, not just among HRD professionals but
among people in general who work in organizations: A mentoring relationship is an
39

intense, committed relationship in which a senior person stimulates and supports the
personal and professional development of a junior person. This sort of relationship is also
generally understood as emerging and developing naturally in the course of
organizational life
Bates, Reid ; Hsin-Chih Chen. (2005)

In their study discussed the

descriptive

exploratory study sought to assess the values priorities of individuals and groups across
various HRD occupational specialties. Findings showed that, in general, respondents felt
the most important guides to the practice of HRD should be those emphasizing
performance-related outcomes. However, results also showed meaningful variation in
top-priority values across individuals and significant differences in the comparative
importance of six values across education level, degree of involvement in organizational
practice, nationality, and occupational and stakeholder groups. Findings suggested that
HRD professionals operate from a structured set of values and that the relative
importance of those values may vary according to the settings and challenges faced in
practice.
Hassan, Arif; Hashim, Junaidah; Ismail, Ahmad Zaki Hj. (2006) in their study
entitled Management development in the NHS : nurses and managers discourses and
identities The aim of the study was to measure employees' perception of human resource
development (HRD) practices, to explore whether ISO certification leads to any
improvements in HRD system, and to examine the role of HRD practices on employees'
development climate and quality orientation in the organization. - A total of 239
employees belonging to eight organizations (four of them ISO certified) responded to a
questionnaire which measured the following variables: career system, work planning
system, development system, self renewal system, and HRD system. Results indicated
large inter-organizational differences in HRD practices. In general, however, employees'
40

ratings were moderate. ISO certified companies, compared to others, obtained higher
means on some HRD variables. Organizations with better learning, training and
development systems, reward and recognition, and information systems promoted human
resource development climate. Quality orientation was predicted by career planning,
performance guidance and development, role efficacy, and reward and recognition
systems. Comparison between ISO and non-ISO certified companies did yield some
significant differences.
Wang, Greg G. in his work National HRD a new paradigm or re invention of the
wheel The paper analyzes a new research topic, national human resource development
(NHRD) for neglected but critical components of economics foundation and accumulated
international development research and practices. Through a targeted literature review on
NHRD writing, major development economics theory, and international development
literatures, this study conducted a critical content analysis. The findings in the paper are:
current research on NHRD has not advanced our knowledge in economic development,
human development, and human resource development under different cultural contexts.
The HRD concept used by economists means human development. The domain of HRD
should not be extended to HD and HRD scholars should understand the different meaning
of the same terms used in different fields determined by the contextual and historical
background of the field. NHRD should be renamed as HRD national policy studies, and
should be firmly based on economic foundation and incorporating accumulated
knowledge in international development. Otherwise, the idea of NHRD is to reinvent the
wheel with much less scholarly rigor
Mavin, Sharon; Wilding, Philip; Stalker, Brenda; Simmonds, David; Rees, Chris;
Winch (2007), in their work Developing new commons between HRD research and
practices

presents

Forum for HRD initiative to proactively engage with HRD

41

practitioners to develop "new commons" in the research-practice nexus. Researchers

joined a community of UK university HRD practitioners, negotiated a research project
mapping the terrain of HRD practice, explored how research informed these are and
identified future practice relevant HRD research.. Researchers utilized qualitative
research methods to develop small-scale empirical research and explore HRD practice in
four case study universities and the UK Leadership Foundation for Higher Education. It
was found that organizational approaches to HRD; underpinning philosophies and
interventions as research informed and contracting and evaluating external providers and
identifies opportunities to develop new commons between theory and practice via
collaborative partnerships between the Forum for HRD and UK university HRD
practitioners
Singh, Anil Kumar (2009) in his study entitled HRD practices and organizational
culture in India HR practices have been developed in the context of industrial change
and economic development. Managers in the organizations would be confronted with the
need to reorient culture, thinking and paradigms. HRD as a function and as a prime mover
would need to focus on this changing and emerging role. There are very few evidences
where values or organizational culture is directly linked to HRD practices of the
organization. This study attempts to examine the effect of HRD practices on organization
culture of some leading private and public sector organizations in India. The study
revealed that the human resource development practices are a strong predictor of
organizational culture both in private sector and public sector organizations in India.
There is ample demonstration of meaningful relationship between HRD practices and
organization culture.
Luoma, Mikko(2009) in his article entitled Essence of HRD Orientation : Evidence
from the Finnish metal industry introduces the term human resource development
42

(HRD) orientation as the key factor affecting the use of training and development
activities in companies. In the study, several strategic approaches to HRD are identified
and treated as components of HRD orientation. The usability of the concept is tested with
data from Finnish metals industry companies. The results show that the differences in the
way companies perceive the role of HRD in business are related to the differences in
HRD orientation. In addition, the most common forms of HRD orientation are also
studied. The usability of the concept is tested with data from Finnish metals industry
companies. The results show that the differences in the way companies perceive the most
of HRD in business are related to the differences in HRD orientation, In addition, the
most common forms of HRD orientation are studied. It is suggested that companies tend
to choose between emphasizing either training needs or strategic capabilities in their
HRD.
2.4 HRD IN SERVICE SECTOR
Mishra Padamakali and Gopa Bhardwaj (2002) in their study entitled "HRD ClimateAn Empirical Study among Private Sector Managers" have thrown light on the nature of
HRD climate as perceived by three hierarchical levels of managers in a large private
sector organization. HRD climate survey was administered to sample population, which
revealed existence of good HRD climate in organization. They also observed significant
difference among three levels of management with respect to different dimensions of
HRD climate as well as overall HRD. The findings of study carried in private sector
organizations do have current relevance with public sector or other type of organizations.
The authors are of the view that a well integrated, sound training policy and scientific
performance appraisal should be introduced in organizations.

43

In "HRD Climate in Indian Organizations ", Rao TV. and S.J.E. Abraham (1986) have
expressed that an optimal level of "development climate" is essential for facilitating HRD
system in organizations. The various items under HRD climate are grouped under three
broad categories, general climate, OCTAPAC culture and HRD mechanism.
According to Rao and E. Abraham (1986), general supportive climate is essential for
HRD. The general climate includes top management and line management's commitment,
good personnel polices and positive attitude towards development. They are of the
opinion that successful implementation of HRD involves taking an integrated look at
HRD and making efforts to use as many HRD mechanisms as possible. OCTAPAC items
deal with openness, confrontation, trust, autonomy, reactivity, authenticity and
collaboration. All these form the OCTAPAC culture which is essential for facilitating
HRD.
Wognum, Ida in his work on HRD policy making in companies: An interpretation of the
difference. This exploratory study examines HRD policymaking processes in companies.
HRD representatives of companies in three economic sectors with more than five hundred
employees were asked to complete a questionnaire. Variables included the HRD
policymaking process, strategic choices about the specific field content of HRD programs
and participating employees, starting points for HRD processes, and characteristics of the
company and the HRD department. Significant differences in the HRD policymaking
process and resulting strategic choices were found between groups of companies. These
findings stress the importance of further investigation of effective and specific types of
HRD policymaking processes within companies. This is important in order to align HRD
programs to the company's situation and thus provide employees with the right
competencies at the right time to enhance their performance and that of their department
and the whole company.
44

Rao T.V. (1996) in his paper entitled "Excellence Through Developing Human
Resources-Some Strategies" has provided an analytical study of HRD work in 14
different organizations (7 public and 7 private). While going through the experiences of
these organizations the commonly used HRD strategies are setting up new HRD
department, recruiting HRD managers and using task forces consisting of line managers
for implementation. The using of internal task forces has proved useful strategy for
bringing about organizational change. Other strategies highlighted are building
organizational culture to facilitate the development and utilization of people, developing
role clarity through identification of key performance areas, potential development and
strengthening the training activities.
Agarwal Ashok and Udai Pareek (1997) in their study entitled "The Role of HRD in
Service Sector" opined that service sector is a large sector with great variations. This
study deals with service sector in general and road transport and health sector in
particular. In an economy like ours where human resource is available in plenty, HRD in
service sector is extremely important. Some unique features of service sector are: services
are intangible, they are produced and consumed simultaneously, and they are holistic and
integrated. An innovative approach is needed especially in strategic thinking and HRD in
service industry.
In the two service sectors under study authors have expressed that the productivity in both
sectors is low, although employees in transport company are empowered to take decisions
and action within some set criteria. The company also provides for better hygienic
factors, medical care and education etc. for its employees.
In health sector although the medical facilities are provided in remote areas by opening
primary health centers but the doctors and Para-medical staff are much less.

45

They are of the opinion that for effective HRD in service sector performance appraisal
and review, reward system, competence building and culture building are very important.
Also employees require to be empowered for quick decision making.
Saxena Shilpa (2002) in her study on "HRD in Public Sector Undertakings" has studied
HRD and its mechanisms in PSU's on the basis of experiences, opinions and practices of
the executives and employees. The study indicates that effective utilization of human
resources in PSU's contributed a lot towards prosperity and healthy economic
development. Performance Appraisal is devised as a most powerful tool in controlling
performance and productivity in organizations besides other mechanisms. Although the
efforts are made to present a complete account of HRD in PSU's but the thrust on
personnel policies is lacking.
Ghosh S.K. (1999) in his article on "HRD Agenda for Future Strategies-The Case of
State Road Transport Undertakings" observed that the SRTUs are facing tremendous
challenges from the private sector and the required government's support is not
forthcoming. Under these circumstances SRTU's are required to frame strategies in order
to survive and grow. And to make these strategies workable the workforce needs to be
geared up through proper human resource development strategies.
In "Human Resource Disclosure in Public Enterprises-A Study of Selected Central Public
Enterprises in India", Sudarshan R. and K. Anjaneyulu (1997) have, discussed the kind
of reporting done by public enterprises with special reference to human resources. The
study indicates that majority of central public enterprises are not disclosing information
regarding human resources. They opined that management and accounting department
should pay adequate attention towards strengthening of human resource reporting system

46

so that required information is available to a cross section of society in fast changing

socio-economic and legal environment, guiding the prosperity of business enterprises.
2.5 HRD IN BANKING SECTOR
Today's increasing complex and volatile business environment characterized by
globalizations, liberalization and the transnational invasion ensure that managing in India
would not be the same again. Enhancing competitiveness in the global market place
presents the ultimate challenge to policy makers, business leaders and entrepreneurs in
any industry including banking.
The banking industry has also realized the fact that the human resource or the personnel
are to play an important role to achieve a high rate of growth of the bank. An employee is
generally regarded as an innovator and supporter of innovations and a conscious
developer of business in any banking industry. The key to successful management in any
banking industry lies in effective utilization of the personnel they recruit from time to
time (Rao, 1993).
Banking industry in our country is fast developing and it has been assigned a crucial role
in country's economic development, particularly rural economy. Branch expansion and
employment generation has touched new heights in this industry. In view of its expanding
role in the national economy and huge public funds at the disposal of banks, it is the need
of the hour for banking industry in general and rural banks in particular to adjust to their
operation (Yatoo 2000).
HRD acquires special meaning in the banking industry due to variety of factors. First,
banking is a labour intensive industry and labour turnover is almost nil. Second, job
security of employees is very high even at this age "of global competition. Besides, the

47

quality of banking services and the objectives of banks in achieving its socio-economic
goals are highly dependent on the employees who deliver the services (Khandelwal,
1996).
It is increasingly recognized that a sound personnel management is vital to high growth
and development of banking services. The personnel of bank are the catalysts in fulfilling
the objectives of the bank. The personnel are a resource of the bank just as its capital,
deposits and assets are. For numerous functional aspects the banks need a well equipped
human resource. Today, the bank needs efficient, polite and enthusiastic bank-men
capable of developing close contracts with people especially in rural area and who are
perfect in making and maintaining public relations. Therefore, the effective management
must ensure that the efforts of personnel are channeled and guided on productive lines
(Rao, 1993). Hence the systematic management of these bank personnel is necessary to
evolve a better personnel management.
Khandelwal A. K. (1988) in his edited work titled "HRD in Banks" presents a clear view
of the HRD practices and experiences in the banking industry. Khandelwal argues that
despite several mechanical aids and gadgets available as facilitators for quick and
efficient service, banking has remained an essentially people's business i.e. managed by
people. There lies a need for well integrated HRD policy in banks.
E.S.J. Abraham (1988) in his article entitled "HRD Climate in Banks" has surveyed 14
different banks. He observed that there is a wide gap between the belief of top
management and their practices with regard to HRD whereas the belief and philosophy
are of the ideal order, the practice of it falls way below expectations. Besides training the
most used mechanism in human resource development in banks needs to be evaluated
time and again to verify its effectiveness.

48

Sharma Baldev R. (1988) has identified three aspects of HRM in his study entitled
"HRM in Banking Industry". These aspects are managerial beliefs, work technology and
organizational climate. He believes that all the three aspects need further improvement in
banking industry. In the sphere of managerial beliefs a more positive attitude is required
towards the employees to maintain good employee-employer relationship. In case of work
technology innovations should be made to reduce the boredom and alienation amongst the
employees. To maintain proper organizational climate the personnel policies and
procedures should be evaluated and accordingly required changes need to be brought in to
the extent that employer-employee relations are also influenced by the internal climate of
an organization.
Pareek Udai (1988) in his study entitled, "Introducing HRD in Banks" advocates that the
programme of HRD cannot be a standard universal programme. According to Pareek
HRD must be relevant to an organization in terms of its culture and tradition. He
impressed upon the need for internalization of the spirit of HRD and also suggests a
phased plan for introducing HRD.
Ranade, P. S. et. al. (1997) in their study entitled "Banking on a Better HR Policy" have
examined various aspects of major-determinants of behaviour pattern of employees in
three major public sector banks in relation to different variables of job situation. They are
of the view that the human element of maintaining status-quo often pushes aside an
individual's natural aspirations for better career growth. While going through the study
under reference it is concluded that despite high education levels and training, the
employees prefer to remain in the clerical cadre pointing to the need for the management
to follow a more realistic human resources policy, particularly, in case of transfers and
promotions.

49

Yatoo N.A. (2001) in his study entitled "Executive Development in Banking Industry"
highlighted need for high degree of expertise, professional competence, managerial
excellence and involvement of staff at all levels. He has studied the various programmes,
policies and procedures adopted by Banking Industry in general and State Bank of India
in particular in developing its executives who share major burden of responsibilities for
framing of various policies regarding HRD and their implementation. He is of the opinion
that HRD practitioners should develop in bank employees an attitude of selfless
dedication to work and quest for new knowledge as it is necessary to be dynamic and to
cope with the changing world. Hence it is necessary to understand the basic concept and
philosophy of HRD including that of executive development. It is revealed in the study
that SBI has well built executive development mechanism that includes well framed
training policy, job rotation and role analysis/ performance appraisal, career development,
transfer and promotion policy. It has been observed that Indian banking is facing certain
problems in implementing executive development programmes like inadequate training
system, lack of conceptual clarity, lack of commitment and coordination and defective
executive resource planning and inadequate research and development. In SBI the
situation is comparatively better but still its training system should be geared to design
innovative and highly specialized programmes; lacunas in the appraisal system should be
removed, sound promotion and transfer policy be introduced in consultation with the
employees union. All these mechanisms are essential for better HRD in organization.
"Personnel Management and Industrial Relations in Banking Industry" by Rao, B.
Prabhakar (1993) focuses on personnel aspects and industrial relations of the banks with
special reference to the State bank of Hyderabad (SBH). He is of the opinion that attitude
of employees reveals the main function of banks, therefore thrust should be on proper
recruitment, sound transfer and promotion policy be adopted in the bank. The State Bank
50

of Hyderabad recognizes this fact and therefore separate department of HRD was created
to look after recruitment and selection procedure, promotion and transfer policy and also
the training and development requirements of the bank. However the bank does not
involve its personnel in decision making processes. Therefore, there is a felt need to
evolve effective industrial relations in the Bank to achieve the objectives of public sector
banks as in effecting socio-economic transformation of the country.
Khandelwal Anil K (1988) in his study "HRD for Rural Banking" highlighted that
commercial banks, after nationalization in 1969, are engaged in process of rural
development to a large extent. To achieve the goal of providing needed finances to rural
poor for their economic upliftment the banks are required to lay emphasis on HRD which
means a planned change on a continuous basis and requires changing the perspective of
bank personnel and motivating them to undertake rural banking jobs with a sense of
dedication and commitment. He opined HRD process includes developing empathy, trust,
a helping attitude, autonomy and a sense of collaboration and problem solving amongst
bank personnel. Development of these traits encompasses suitable recruitment policy,
sound transfer and promotion policies, developing reward and punishment system
consistent with performance in rural areas.
Sharma R. D. and Ashok Dogra (1992) in their study "HRD in Rural Banks-Case Study
of Jammu Rural Banks" have opined that regional rural banks should make sincere and
planned efforts for development of its human resources to enable them to develop more
and more new rural development oriented schemes which are quite viable and
economically sound so that the beneficiaries feel comfortable not only to repay their loans
but also to live a happy social life. The various components of HRD like training,
education, development and career advancement and planning and performance appraisal
ought to-be linked with job so that the development of both banks and employees are
51

highly responsive and co-related. This will finally lead to an all-round organisational
development.
2.6 MANAGERIAL EFFECTIVENESS
Managerial effectiveness is a vital element of an organization. An Organizations
functions and its effectiveness are influenced by the managerial effectiveness in that
organization. If a manager is able to recognize his own strength and weakness, understand
the requirements of his job well, uses his own strengths and overcomes weaknesses
through continuous learning on the job, he may be considered effective
Reddin (1970) defines managerial effectiveness as an extent to which a manager achieves
the output requirements of his position, that is, what a manager had achieved rather than
what he had done. Effectiveness is best seen as somewhat a manager produces from a
situation by managing appropriately.
2.6.1 MANAGERIAL EFFECTIVENESS CONCEPT
Managerial effectiveness is very important for the survival and growth of the
organisation. It is difficult to define managerial effectiveness in concrete terms. Many
perceive it within a particular frame of reference. Decisions about effectiveness are bound
to be situational and contingent upon the definition and perspectives of those making the
judgment. A review of literature shows that managerial effectiveness has been studied
with three perspectives:( Renu Rastogi & Vandana Dave 04)
1. Traditional/Conventional perspective
2. Organizational level competency based perspective, and
3. An individual level competency based perspective.
52

The traditional model emphasizes the ability to set and achieve goals (Bartol and Martin,
1991) where it is implicitly assumed that managerial effectiveness leads to organizational
effectiveness.
The organizational competency based approach implies that there is long term future
orientation that accounts for both external and internal influences on the organizations.
From these analyses a vision is created for the future of the organization, goals are set that
will achieve the vision and plans are developed to achieve these strategic goals. Here, the
organization tries to create the system and environment with the help of skills and
characteristics of managers that lead them to achieve strategic intents.
The individual competency based approach to managerial effectiveness focuses upon the
individual rather than the organization. The purpose of this approach is to develop
transferable (generic) management skills that are applicable across different
circumstances both nationally and internationally. But this competency-based perspective
on managerial effectiveness has been heavily criticized on the ground of the
contingencies and the contexts.
Effectiveness is best seen as something a manager produces from a situation by managing
it appropriately, producing the results or meeting the targets in every sphere of the
activities of organizations. The manager's job is linked with three major dimensions-technical, conceptual, and human. The productivity of any organization can be increased
by the effective management of all the three dimensions and specially by managing the
conceptual and human dimensions of management. All managers need to work with and
through subordinates to optimise organizational performance. Therefore, certain
behavioural skills are required of individuals if they are to be effective as managers

53

Das (1987) identified the characteristics of an efficient branch manager as setting an

example by personal qualities, job knowledge, business acumen, and management ability.
Miles (1992) suggested that constructive use of authority entails the ability to formulate
clear goals and to determine what steps are necessary to achieve them, including getting
people to do what is necessary for achieving the targets. Misumi (1989), and Misumi and
Peterson (1985) defined the ideal manager in Japan in terms of both performance and
maintenance orientations, namely, a manager who leads the group towards goal
attainment and preserves its social stability. Just as there had been controversy and many
arguments were raised that a good leader should have certain characteristics similar
arguments are there for managerial effectiveness. There are many researchers who on the
basis of their findings have identified that effective managers possess the particular set of
characteristics like job knowledge, good communication, business acumen and
interpersonal relationship but having these characteristics are not sufficient to become
effective manager. Managerial effectiveness is not only a personality characteristic but it
is related to performance and output. Gupta (1996) has developed a 16-factor scale to
measure managerial effectiveness. These factors are tapping three important aspects of
effectiveness: activities of his position, achieving the results, and developing further
potential. The managerial effectiveness has been measured by experts in several different
ways at different times. Some models focus on individual competencies of managerial
effectiveness, while most of the studies have taken performance measure and superior's
appraisals rather than self report measures while deciding the effectiveness of a manager.
In the light of above discussion, a study is planned to see the effect of management
position, departments, and personality variable on managerial effectiveness.
Effective management is about doing the right things at the right time. In the face of
downsizing, mergers, etc., organizations need managers who are not only efficient but
54

also effective. The responsibilities of managers and the competitive pressures on them
have increased their need to be effective. Efficient people do things right whereas an
effective person does the right things. Effective managers, on the other hand, are both
effective and efficient.
The basic responsibility of managers is to manage people. To be effective at managing
people, they must be good managers of themselves. Some managers believe that
effectiveness is something a person is born with and cannot be inculcated. However,
effectiveness can be taught and mastered with practice. The training for effectiveness
involves identifying the importance of knowledge and people for an organization
In the past, employees were expected to be efficient in producing the desired results and
their efficiency was measured in terms of the outputs delivered in relation to the inputs
used. Now, the focus has shifted to effectiveness. Effectiveness involves doing the right
things, in the right way. Effectiveness is particularly important in the case of managers, as
they are responsible for the performance of others. However, effective management starts
at a personal level, before moving on to the personnel level. Effective managers are role
models for subordinates. They play a vital role in improving the overall effectiveness of
the organization

55

2.6.2 CONCEPTUAL MODEL OF PREDICTORS OF MANAGERIAL

EFFECTIVENESS IN A GLOBAL CONTEXT

Managerial roles
Global
Complexities

Personality

Managerial
Effectiveness

Experience

Managerial
capabilities

Figure 4 : Source Jean . B. Leslie, M. Dalton, Chris Ernsl, J. Deal ; Managerial effectiveness in global
context : A center for creative Leadership report. Greenboro, N. Carolina 2002.

Model ( Figure 4 ) is conceptual and not statistical. Personality stands for an individuals
enduring traits that might help explain the kinds of experiences to which he or she is
drawn and the kind of capabilities and role behavior he or she is most likely to have
required.
Experience refers to those experiences and demographic variables that individual brings
with him to the job. Experience may be critical in understanding why one manager is
comfortable with unfamiliar factor inherent in global work but another manager is not.

56

Experience may also influence the skill and capabilities that manager has acquired over a
period of time.
Managerial capabilities refer to three major category of skills ; learning behavior,
resilience, business knowledge. Learning behavior refers to motivation and skill to learn
across cultural difference, the willingness to take perceptive of others and the capacity to
learn from work place experience. Resilience refers to capacity to manage stress and time,
factor that might be more silent when the management task is more global in scope. Third
category of skills business knowledge refer to knowledge of business and business
practices.
Managerial roles refers to those behavior the managers employ to carry out basic
functions of their work. Managing information , managing relationship and managing
action. Current thought suggest that all the three functions are important for the managers
and it is a fine balance of the three.
Global complexity refers to the context of interest. It is believed that when manager work
in the global scope then relationship of all these measures of managerial effectiveness to
another would be different if the manager was working in the local work environment.
Model has operationalized global complexity as additive function of having to manage
across distance, country and culture. The temporal, geographical and cultural complexity
separate low global complexity (domestic work ) to high global complexity ( global
work).
2.6.3 Literature review of Managerial effectiveness
O'Driscoll, Michael P.; Humphries, Maria; Larsen, Henirk H (1991) in their work
Managerial activities, competencies

and effectiveness : managers and subordinates

57

perception.Using a typology of managerial behaviour developed by Luthans et al.

(1988), manager and subordinate perceptions of managerial activities were obtained to
ascertain the links between performance of these activities and perceived managerial
effectiveness. Frequency of task performance was essentially unrelated to perceived
competence, but how well managers performed in various tasks (particularly motivation
and reinforcement of subordinates, and decision making) predicted subordinate ratings of
managerial competence. Disciplining and planning emerged as the most prominent
contributors to subordinate ratings of section effectiveness. Consistent with Luthans'
model of managerial effectiveness, perceived quality and quantity of section functioning
were linked with different managerial behaviours. These findings support the utilization
of Luthans' typology and highlight the importance of examining the differential impact of
a range of managerial activities on different facets of organizational effectiveness.
Ashford, Susan J.; Tsui, Anne S (1991) in their work Self regulation for managerial
effectiveness : Role of active feedback seeking examined the feedback-seeking behavior
of 387 managers as observed by their superiors, subordinates, and peers. Results suggest
that managers' tendency to seek negative feedback increased the accuracy of their
understanding about how these feedback sources evaluated their work. Seeking negative
feedback further enhanced the three constituencies' opinions of the managers' overall
effectiveness. Seeking positive feedback, in contrast, decreased constituents' opinions of
the managers' effectiveness. Such results demonstrate the importance of both instrumental
and impression-management concerns in the feedback-seeking process and support the
proposition that active feedback seeking is the central part of a total process of selfregulation for managerial effectiveness.
Hamlin, Bob in his work HRD through HRD professional partnership ; an empirical
and comparative study describes a programme of practice-grounded empirical
58

management research set within an NHS Trust Hospital in the UK that was conducted as
part of an HRD Professional Partnership of the kind advocated by Jacobs (1997). The
research was concerned with identifying the criteria of managerial effectiveness at the
middle and front-line levels of management using critical incident technique and factor
analytic methods. The results are compared against those from an equivalent partnership
research study carried out previously by the author within one part of the British Civil
Service. The findings lend support to the notion of the 'universally effective manager', and
provide empirical support, for the potential development of evidence-based and researchinformed approaches to management and human resource development within the casestudy NHS Trust Hospital, and possibly beyond.
Cross cultural exploratory study of linkage between emotional intelligence and
managerial effectiveness by: Shipper, Frank; Kincaid, Joel; Rotondo, Denise M.;
Hoffman, Richard C.(2003) discuss that Multinationals increasingly require a cadre of
skilled managers to effectively run their global operations. This exploratory study
examines the relationship between emotional intelligence (EI) and managerial
effectiveness among three cultures. EI is conceptualized and measured as self-other
agreement concerning the use of managerial skills using data gathered under a 360-degree
feedback process. Three hypotheses relating to managerial self-awareness of both
interactive and controlling skills are examined using data from 3,785 managers of a
multinational firm located in the United States (US), United Kingdom (UK), and
Malaysia. The two sets of managerial skills examined were found to be stable across the
three national samples. The hypotheses were tested using polynomial regressions, and
contour plots were developed to aid interpretation. Support was found for positive
relationships between effectiveness and EI (Emotional intelligence). This relationship was
supported for interactive skills in the US and UK samples and for controlling skills in the
59

Malaysian and UK samples. Emotional intelligence of different managerial skills varied

by culture. It appears that in low power distance (PD) cultures such as the United States
and United Kingdom, EI of interactive skills may be crucial relative to effectiveness
whereas in high PD cultures, such as Malaysia of controlling skills may be crucial relative
to effectiveness.
: Rastogi, Renu; Dave, Vandana. (2004) in their work on Managerial effectiveness: a
function of personality type and organizational components : tests managerial
effectiveness of top and lower level managers in production and marketing departments in
relation to their personality type in private sector organizations. A 2 x 2 x 2 factorial
design was employed, in which there are three independent variables with two levels
each: departments (production and marketing), managerial positions (top level and lower
level), and personality type (Type A and Type B). Managerial effectiveness is a
dependent variable. The main effects of management positions and personality types have
been found significant and interaction effects between managerial positions x personality
type and among departments have been found significant. The major findings are that in
production department, both top and lower level managers having Type B personality are
found more effective and in marketing department top-level managers having Type A
personality and lower level managers having Type B personality have been found more
effective in comparison to their counterparts.
Stake holder perception of construction site managers effectiveness by: Fraser,
Campbell; Chunxue Zhu (Jun2008). Construction Management & Economics, , throw
light on Contemporary management thinking and pays a great deal of attention to
'stakeholder theory', holding that sustainable success rests, to a great extent, with the
systematic consideration of the needs and goals of all key stakeholders. This paper
examines managerial effectiveness under the light of stakeholder theory. Using
60

multivariate analysis, it investigates perceptions of importance of the dimensions of

effectiveness held by a sample of 61 managers and 268 key project stakeholders in all
major cities in Australia through a performance measurement tool comprising 52
performance elements. The findings of the research show that perceptions vary
significantly across professional groups as well as high and low performing managers.
Nwokah, N. Gladson; Ahiauzu, Augustine I (2008) in their study on Managerial
competencies and managerial effectiveness in corporate organizations in Nigeria assess
the impact of managerial competencies on the marketing effectiveness of the
organization. While many empirical works have centered on marketing effectiveness, the
generalization of its relationship to managerial competencies in the Nigerian context has
been under-researched. A 27-item survey questionnaire was developed and 84 corporate
organizations in Nigeria were selected from the 2005 edition of the Nigerian stock
exchange gazette as a sample of this study. A hand-delivered survey was conducted from
key informants in the organizations. The results of the study reported in this paper
validated the earlier instruments and found a strong association between managerial
competencies and marketing effectiveness of corporate organizations in the Nigerian
context. The main finding of this study is that managerial competencies lead to marketing
effectiveness in corporate organizations in Nigeria.
Hamlin, Robert G.; Serventi, Susan A.( 2008) in their study on Generic behavioural
criteria of managerial effectiveness present the findings of a "partnership-research"
study of effective and ineffective managerial behaviour within the "local government"
setting of the Wolverhampton City Council Social Care Department, and to describe how
the research supports and challenges the organizations existing "leadership and
management behavioural competency framework". Additionally, it reveals and discusses
the extent to which the results are consistent with equivalent and comparable findings
61

from an equivalent study within a "central government" department. Concrete examples

of effective and ineffective managerial behaviour were collected using the Critical
Incident Technique (CIT) of Flanagan, and the obtained data were analysed using content
and thematic analytic methods. Findings - The paper finds that from a total of 218 usable
critical incidents 50 discrete behavioural items were identified, of which 25 were
examples of "effective" and 25 of "ineffective" behaviour. A comparison against
equivalent findings from the "central government" study revealed high degrees of overlap
with 92 per cent of the "effective" and 96 per cent of the "ineffective" behavioural items
being the same as, similar to, or containing some congruence of meaning.
Managerial effectiveness in hotel management and an application in four five star hotel
establishments By: Bertan, Serkan. Suleyman Demirel( 2009)

determines the

components of the managerial effectiveness in hotels. For this purpose the study was
applied on upper level managers in four or five star hotels. In this research the main
elements of managerial effectiveness, in what factors these elements occur and
importance level of factors were inspected. As a result of the study, 5 factors containing
27 expressions that explain main elements of managerial effectiveness were determined. 5
factors contributions that were obtained were called as decision making, time,
contribution, capacity and priority. Among these five factors, contributions were
determined as the most important one and decision making, time, capacity and priority
factors followed in respectively.
Comparison of public and private sector managerial effectiveness in China by: Bao,
Chanzi : explores the similarities and differences in terms of managerial effectiveness
between public- and private-sector organizations from the dimensions of motivation,
constraints and opportunities. This research was undertaken in the form of case studies
targeting senior managers in four multinational corporations' (MNCs') Chinese
62

subsidiaries. It was found that there are a number of common themes applicable to both
sectors. Several identified constraints can be resolved through the provision of specific
opportunities and appropriate motivation. The differences identified between the two
sectors indicates a possible development direction for the effectiveness of future senior
manager (SMs) in the public sector
Analoui, Farhad; Ahmed, Abdulla A.; Kakabadse, Nada. In there study Parameters
of managerial effectiveness seeks to report on the findings of a recent study which
explores the ways/factors which influence and/or determine the effectiveness of the senior
management in the Muscat Municipality, Oman, by assessing the perception of senior
managers concerning the influences (parameters) on their effectiveness. Analoui's model
of "eight parameters for effectiveness" has been used as a basis to explore the awareness,
perceptions, skills, organizational standards, motivation, degree of demands and
constraints, and the presence of choices and opportunities for effectiveness. It was found
that -- Analoui's model of "managerial effectiveness" is applicable to the public sector in
Oman. Senior managers are aware of their own effectiveness and better understanding of
their effectiveness requires paying attention to the identified parameters and contexts in
which they perform their tasks. Unfortunately, little attention has been paid to their
management development.
Correlates of spiritual orientation and managerial effectiveness by: Sengupta, Sunita
Singh. (2010): explores the concept of "Spiritual Self", as experienced by the corporate
executives. "Spiritual Self" is determined using the concept of spiritual orientation and its
relationship with, satisfaction, effectiveness and success in career of a manager. It also
explores if other factors such as values, perceived benefits of spirituality and main
worries have an impact on spiritual orientation of the managers. The findings of a

63

questionnaire survey participated by 549 managers indicated a positive correlation

between peace of mind and perceived satisfaction and success in career.
2.7 CONCLUDING REMARK
After the review of literature of different variables . This research is a modest attempt to
evolve a research paradigm, which would be able to establish a relationship between the
identified variables.

64