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Increasingly, awareness of the contribution of training to the overall development of employees, the human resource development movement, is catching up with the Indian Corporate Sector. The new‐born HRD Ministry in the Centre, a comprehensive incentive package for trainers, is a testimony to Government initiatives. Emergence of Corporate Management Development Centres (CMDCs) on a large scale in the last decade in public sector undertakings (PSUs) is a natural follow‐up of these initiatives. Despite huge investments in buildings and training infrastructure, no attention is paid towards the placement of correct personnel, motivation and qualitative training outputs in PSUs. Attention to these issues is vital to realize CMDC objectives and to justify the spurt in investment. Examines some of the critical issues concerning effective management of CMDCs: leadership crises, training of trainers, the role of the trainer, emphasis on developing core faculty,promotion of research, career progression and improved status to overall training function.

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