International Journal of Scientific Research and Engineering Development

Human Resource Management (HRM) plays a crucial role in improving organizational performance, especially in Public Sector Undertakings (PSUs) in India. Indian PSUs operate in a complex environment characterized by government regulations, social responsibilities, union presence and increasing competition from the private sector. This study examines the major HRM practices followed in Indian PSUs and evaluates their effectiveness in enhancing employee performance, organizational commitment, productivity and overall institutional development. This paper focuses on key HRM dimensions such as recruitment and selection, training and development, performance appraisal,compensation management, employee welfare and industrial relations. It also explores how reforms after economic liberalization influenced HR practices in PSUs. This article indicate that while PSUs have structured and formal HR systems, challenges remain in flexibility, performance-based incentives, talent retention and modernization of HR strategies. Strengthening strategic HRM, encouraging participative management, adopting digital HR systems and aligning HR policies with organizational goals can significantly improve effectiveness. This article concludes that HRM practices in Indian PSUs are gradually evolving from traditional administrative systems to performance-oriented strategic frameworks, though further reforms are essential to meet global standards.

Teketi Anitha Jhansi Rani, Prof.P.Arun Kumar,"A Study on HRM Practices and Their Effectiveness in Indian Public Sector Undertakings (PSUs)" International Journal of Scientific Research and Engineering Development, V9(1): Page(2083-2087) Jan-Feb 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.