HRD Audit

Presented by, Ramya.P Deepika.V Manasa Mahita Franklin Arnold

What is HRD?

HRD is the process by which the

employees of the organisation are helped to

help themselves and develop the

organisation.

What is HRD?
Competence

Building Commitment /Motivation Building Culture Building

Human Resource Audit

An HR audit is a process to review implementation of organizations policies and procedures, ensure compliance with employment law, eliminate liabilities, implement best practices and educate your managers.

Personnel/Human Resource Audit involves

Measurement

and evaluation of personnel programs, policies and practices. Identification of gap between objectives and results. Determination of what should or should not be done in future. The audit may include one division or entire company.

Benefits of A Human Resource Audit

Identifies the contribution of the personnel departments to the organization Improves professional image of the personnel department Encourages greater responsibility and professionalism among members of the personnel department Clarifies the personnel departments duties and responsibilities Finds critical personnel problems

Tasks of Auditors
Identify who is responsible for each activity. Determine the objectives sought by each activity. Review the policies and procedures used to achieve these activities. Prepare a report commending proper objectives, policies, and procedures. Develop an action plan to correct errors in each activity. Follow up the action plan to see if it solved the problems found through the audit.

Before you begin the audit process

Determine who will conduct the audit. Internal vs. External

Secure senior management commitment.

a.

Are they ready to fix whats broken, even if it costs highly? Do they agree with the methodology? Will they allow access to all departments/information? Will they publicly support the process?

b. c.

d.

Before you begin the audit process

Define the parameters.

a.
b.

Who will be audited?

What do you want to audit?

c.
d.

What audit tools will you use?

How will the process be rolled out?

e.
f.

How will results get reported?

Who will get the results?

Before you begin the audit process

Introduce

the audit process to your managers.

Methodology of HRD Audit

Examines

the adequacies and inadequacies of HRD structure, staff and their competencies, line managers and their attitudes, top management and their support, unions and their role in competence building for future Suggests mechanisms for improving all these in the business context

Methodology
Workshops

could be used Task forces and internal teams could also be used External Auditors have a significant role Benchmarking of questionnaire data may be of use

Audit Tools Interview Questionnaire Historical analysis External Information

Interviews
Sources of information, Employees

Managers Exit interview

Questionnaire
Questionnaire may also lead to more candid answers than face-to-face interviews,

employee attitude about supervisors employee attitude about their jobs perceived effectiveness of human resource department

Historical Analysis
An analysis of historical records, such as, Safety and health records Grievances records Compensation studies Scrap rates Turnover and absenteeism records Selection records Training program records

External Information
Through Department of Labor, industry association, professional association numerous statistics and report are compiled.

Using HRD Audit

Examines

long term and short term plans and vision to assess competency requirements Identifies broad competency requirements for future business goals Examines the existing HRD strategies, systems and practices and assess their appropriateness to have the required competencies

Role of HRD Audit in Business Improvements

It

could get the top management to think in terms of strategic and long term business plans Changes in the styles of top management Role clarity of HRD Department and the role of line managers in HRD TQM Interventions

Role of HRD Audit in Business Improvements

Increased

focus on human resources and human competencies Better recruitment policies and more professional staff More planning and more cost effective training Strengthening accountabilities through appraisal systems and other mechanisms

Audit report
The audit report is a comprehensive description of human resource activities that includes both commendations for effective practices and recommendations for improving practices that are less effective.

Audit report often contain several sections. for line managers, for manager of specific human resource function for the human resource manager.

Reporting the Results

Compile your findings in a draft letter

Allow department head/manager to review your draft and make comments or corrections Compile final version
Present report to senior management

Report for line managers

Line managers duties are as follows, Inteviewing applicants Training employees Evaluating performance Motivating employees Satisfying employee needs Report also identifies the people problems, violation of policies, employee relation laws.

Report for the HR Specialist

Feedback on , Unqualified workers that need for training Qualified workers that need for development What others company are doing Attitude operating managers toward personnel policies Workers pay dissatisfaction

Report for HR Manager

It is contains all the information given to both operating managers and staff specialists. HR Mangers gets feedback about : Attitude operating managers and employees about services given by HRD A review of HRD plans Human resource problems and their implication Recommendations for needed changes and priorities for their implementation

Some Organisations using HRD Audit

Aditya Birla Group has been doing it for the last 8 years
Rajashree Cement, Vikram Cement, Hindalco, Indo-Gulf Fertilisers, Gwalior Grasim, Harihar Fibres etc.

L&T,

Crompton Greaves Gujarat Guardian Gujarat Gas Apollo Tyres

Some Organisations using HRD Audit

Godrej GVFL BPL

Soaps

Tyco

International Gati Cargo Management Services Wokhardt Hospitals