Hr audit

Submitted By :Shubhra Dewangan

HRD Audit

An HRD Audit is like an annual health check-up, it plays a vital role in instilling a sense of confidence in the Management and the HR functions of an organisation.

Difference:HR Audit & HRD Audit

HRD Audit is evaluation of only few activities

• Structure,• Strategies,• Systems,• Styles,• Skills /

Competencies • Culture

HR Audit is a comprehensive evaluation of the entire gamut of HR activities

• HR Cost• HRD activities• Health, Env. &

Safety• Legal

Compliance• Quality• Compensation &

Benefits

Purpose of an HR Audit

The reason for conducting an HR audit is to find out –

o How effective and efficient the organization's HR activities are

o To determine areas for improvemento Identify changes

Components of HR Audit

(HR AUDIT MODEL)

2. BEHAVIO

R

3.RISK

4.INTERNALCONTROL

S

5. OUTCOM

E

1. ACTIVITIE

S

Scope of HRD Audit

HRD Audit encompasses all the areas like as…

Manpower planning

Goals, policies and objective

Promotion and transfer polices

Performance appraisal systems

Training and development functions

Objectives of HRD Audit

To determine the effectiveness of management programmes

Develop a statement of findings with recommendations for correcting deviations

To study the current manpower inventory

Frequency of HRD audit

It is best to have a HR audit once in a year. The HR audit, if conducted continuously and regularly, then it becomes a fairly managed process.

The chances of drastic corrections become lower if it is conducted regularly.

Usually, the frequency of the audit being conducted depends on the company.

An ideal audit can be conducted for every 18 months but the management must see to it that a well efficient audit is done on yearly basis.

Approaches to HR Audit

• Auditors may adopt any of the five practices for the purpose of evaluation:

Comparative approach

Outside authority approach

Statistical approach

Compliance approach and

Management By Objectives

HRD Methodologies

InterviewsGroup DiscussionObservationQuestionnaireFocus groupsProcess mappingReview of documentation

Challenges in HRD Audit

Build and improve quality consciousness

Strive to recruit and retain competent , creative employees

Align biz processes with technology infrastructure

Nurture creative and supportive work culture

Train and develop the employee through 360 degree, feedback, appraisals.

Promote learning orientation-informal networks

HRD Score Card…

These four indices consist of the four pillars of HRD effectiveness. All the four dimensions are assessed using  following ten point rating system.

      A* Highest Score and Highest Maturity Level A    Very High Maturity level B*  High Maturity Level B    Moderately High Maturity Level C*  Moderate Maturity Level C    Moderately low Maturity level D*  Low Maturity Level D    Very low Maturity level F    Not at all present

U    Ungraded

Name of the Organisation ABC

HRD System Maturity Grade

HRD Competence Score

HRD Culture Grade

Business Linkage Grade

Overall HRD Maturity rating

B* C B* B B*CB*B

Steps In Writing HRD AuditREPORT

Monitor employee record keeping process

Review organization's recruitment and selection process

Examine workplace safety measures and T&D opportunities

Review employee relations processes

Compile compensation and benefits information

Role of HRD Audit in Business Improvements

• HRD audit is cost effective • 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 in HRD Improvements

in HRD systems• Increased focus on human resources and human

competencies• Improvements in HRD systems• Better recruitment policies and more professional staff• More planning and more cost effective training• TQM Interventions

Organisations that have done

HRD Audit• Aditya Birla Group (8 years)• L&T• Gujarat Gas• Gujarat Guardian• Apollo Tyres• Alexandria Carbon Black• Godrej Soaps• GVFL• BPL• Tyco International• Wokhardt Hospitals

Bangalore• Bharat Electronics• NTPC