BETTY METHEWRAVI ROSHAN DUNGDUNGACHINT CHHABRADEBABRATA SAHAPRITEY BALAHARSHWARDHAN SINGH RATHOORRICHA NAUTIYAL

It is a Comprehensive Evaluation of the existing HRDStrategies and Systems Structures and CompetenciesCulture and Values

And their appropriateness to achieve the short and long term business goals of the organization

Focal Points Culture building strategiesQuality and Customer OrientationCommunication strategyEfficiency management and cost reduction strategy

HRD Audit attempts to study the extent to which the organizational culture fosters

OpennessCollaborationTrustAuthenticityProactivityAutonomyConfrontationExperimentation

HRD audit is Comprehensive: It starts with an understanding of the future business plans and corporate strategies. The HRD audit starts with the following questions:

Where does the company want to be ten years from now, three years from now and one year from now? (answer to this question contribute to the HRD business linkages score of the HRD score card)

What is the current skill base of the employees in the company in relation to the various roles and role requirements? (answer to this question contribute to the competency score on the HRD score card)

What are the HRD subsystems available today to help the organization build its competency base for the present, immediate future and long-term goals? (answer to this question contribute to the HRD systems maturity score of the HRD score card)

What is the current level of effectiveness of these sub-systems in developing people and ensuring that human competencies are available in adequate levels in the company? (answer to this question contribute to the HRD systems maturity on the HRD score card)

Is the HRD structure existing in the company adequate enough to manage the HRD in the company? (answer to this questions contribute to the HRD competencies score of the score card)

Are the top management and senior manager styles of managing people in tune with the learning culture? (answer to this question contribute to the HRD culture score of the HRD score card)

HRD Audit Examines Linkages with other Systems: Like TQM, strategic planning etc.

HRD audit is Business-driven: It keeps business goals in focus, at the same time, it attempts to bring professionalism in HRD

1. To make the HR function business-driven2. To take stock of things and to improve HRD

for expanding, diversifying, and entering into a fast growth phase

3. For promoting professionalism among employees and to switch over to professional management

4. Multinationals want to know the reasons for lower labor productivity and for improving their HRD strategies in the Indian context

5. For growth and diversification6. Dissatisfaction with a particular component7. Change of leadership

Role of HRD Audit in Business Improvement1.It can get the top management to think in terms of

strategic and long-term business plans2.Changes in the styles of the top management3.Role clarity of the HRD department and the role of

line managers in HRD4.Improvements in HRD systems5.Increased focus on human resources and human

competencies6.Better recruitment policies and more professional

staff7.More planning and more cost-effective training8.Streamlining of other management practices

1. Strengthening accountability through appraisal systems and other mechanisms

2. TQM interventions3. It can enhance the ROI (return on investment)

( of the HR function

To determine the effectiveness of management programs.

To locate the gaps in the implementation of various HRD programs.

Develop a statement of findings with recommendations for correcting deviations.

To study the extent to which line managers comply with HRD policies.

To study current manpower inventory.

To examine and pinpoint strength and weaknesses related to H.R. areas and Skills and Competencies to enable an organization to achieve its long-term and short-term goals.

To increase the effectiveness of the design and implementation of human resource policies, planning and programs.

To help human resource planners develop and update employment and program plans.

To evaluate current effectiveness. To standardize practices across multiple sites

within a division or company. To improve performance levels to key customers

within the organization.

The general process of conducting an audit

includes seven key steps:

1. Determine the scope and type of the audit

determine exactly what areas should be targeted

for review.

2. Develop the audit questionnaire helps guide

the audit team in scrutinizing all critical areas of

a company’s HR practices.

Important to invest sufficient time in developing a

comprehensive document.

3. Collect the data

4. Benchmark the findings

comparison will offer insight into how the audit results

compare against other similarly sized firms, national

standards and/or internal company data.

5. Provide feedback about the results

summarize the data and provide feedback 

a roadmap for action can be developed

6. Create action plans

The company must create action plans for implementing

the changes suggested by the audit

7. Foster a climate of continuous improvement

it is important to engage in constant observation

and continuous improvement of the company’s

policies, procedures and practices so that the

organization never ceases to keep improving. 

Interviews;Questionnaires;Observation;Secondary data analysis; andExamination of documents and communications

The score card is a series of four letter grades assigned by the auditors on the basis of the HRD Audit.The HRD Score card helps identify the areas the firm needs to focus at a glance.

HRD Systems HRD Competencies HRD Climate Business Linkages

Traditionally there have been the financial audits of a company. Gradually auditing has evolved and has become function specific, function audit diagnoses and analyses the situation, set measures of control and give advice within the boundaries of functional area. HR audit is also the audit of HR function. Audit has a wider perspective defining future lines of action.

HR Audit performs two basic functions ( Cantera, 1995).

1. facilitates the development of managing process. 2. Controls and evaluates the policies and

established processes.

Important note-Organizations assume that their HR department is

doing “everything”….

Keys the HR department’s mission and goal in sync with the organization’s needs and long term business strategy.

Identifies and prioritizes opportunities for improvement, as well as area of potential risk.

Improves efficiency and productivity so that the department can better serve employees and customers.

Identifies root problem areas and fix them before they become more widespread.

Find cost- reduction opportunities. Improves employee communications and moral and help

establish better credibility and perceptions of top management.

Provides a reality check in order to identify and correct any gaps between what is intended and what is actually being delivered.

Implements and stays current with best practices.

http://www.citehr.com/184468-suraj-asks.html

http://www.younghrmanager.com/the-importance-and-benefits-of-human-resources-audits

Human resource management- Seema Sanghi.

Human resource management- Aswathappa.Wikipedia.