Creating effective HRD environment: HRD climate is one of the pre requisites of effective HRD process implementation. It is an integral part of organizational climate. HRD climate creates interest and motivation among the employees to stay long in an organization. It creates growth opportunities and recognition. Its success is vitally based on top management's confidence in employees which will propel them to take initiative and meet challenging responsibilities for the organization. Employee dignities and individuality is boosted when an effective HRD climate is created. A dynamic HRD climate can be conducive to development of both the individual as well as the organization. This is possible through humane treatment of employees by the employers and helping develop right attitude among employees. The HRD climate affects informal as well as social relations. Therefore it performs a descriptive rather than an evaluative role.