The major two issues which every organization faces, is implementing an organizational strategy and performance management. Organization in today’s change filled, highly competitive environment must spend significant time, energy and human and financial resources to measuring their performance in achieving the strategic goals. An organization that is able to increase its adaptability capacity can enhance its chances of survival and sustainable profitability. T&D can also increase the level of commitment of employees to the organization and will also accentuate the perception that the organization is a good place to work. The present study was undertaken on two hospitals SMHS & Fortis in India with special attention to Performance Appraisal system (PAS) and Training and Development (T&D). The results revealed that HRD Mechanisms in the two hospitals is above satisfactory. The middle level staff of both the organizations perceives difference in their opinion towards HRD mechanisms.