HRD Matrix identifies the interrelationships between HRD instruments, processes, outcomes and organizational effectiveness. HRD instruments include performance appraisal, counselling, role analysis, potential development, training, reward system, and job enrichment. These instruments lead to HRD processes like role clarity, development planning, development climate, and risk-taking in employees. Such HRD processes should result in more competent, satisfied, and dynamic employees, which is likely to make the organization more effective than those that do not emphasize HRD. Organizational effectiveness also depends on other factors like the environment, technology, and competitors. However, an organization with competent employees committed to HRD will be more effective, other things being equal.