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Hrd Audit and Its Methodology

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HRD AUDIT AND ITS METHODOLOGY PRESENTED BY: Abhinandan Seth Abhishek Jatav Anooj Kapoor
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Page 1: Hrd Audit and Its Methodology

HRD AUDIT AND ITS METHODOLOGY

PRESENTED BY:Abhinandan Seth

Abhishek JatavAnooj Kapoor

Page 2: Hrd Audit and Its Methodology

WHAT IS HRD AUDIT

• HRD Audit is a comprehensive evaluation of the current HRD strategies, structure systems, styles and skills in the context of the short-term and long-term business plans of a company.

• It is a tool to assess the present. The blueprint for the future

• It means, a systematic assessment of the strengths, limitations, and developmental needs of HR management in the context of organizational performance.

Page 3: Hrd Audit and Its Methodology

WHAT IS HRD AUDIT

HRD Audit is a comprehensive evaluation of the existing HRD

• Structure,

• Strategies,

• Systems,

• Styles,

• Skills / Competencies &

• Culture

Page 4: Hrd Audit and Its Methodology

EXAMINES LINKAGES WITH OTHER SYSTEMS

• The HRD audit examines the linkages between HRD and other systems like total quality management, personnel policies, strategic planning etc.

• The company needs to have for developing new competencies and the systems that need to be strengthened, the styles and culture that has compatibility with HRD processes in the company particularly the styles of the top management, etc.

Page 5: Hrd Audit and Its Methodology

BUSINESS DRIVEN

• HRD audit always keeps the business goals always on focus. It attempts to bring in professionalism in HRD

• HRD audit attempts to evaluate HRD strategy, structure, system, staff, skills and styles and their appropriateness.

• HRD Audit give feedback about the HRD department, its structure, competency levels, leadership, processes, influence of the HRD on the other systems etc.

Page 6: Hrd Audit and Its Methodology

HR Audit v/s HRD Audit...

HRD Audit is evaluation of only few activities :-

• Strategies, • Structure, • 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

Page 7: Hrd Audit and Its Methodology

Reasons for HRD Audit

• For expanding, diversifying and entering into a fast growth phase.

• For promoting more professionalism and professional management.

• Bench-marking for improving HRD practices.

• Growth and diversification

• Dissatisfaction with any component

• Change of leadership

Page 8: Hrd Audit and Its Methodology

Reasons for HRD Audit

• To take stock of things & to improve HRD for expanding, diversifying, & entering into a fast growth phase.

• To find out the reasons for low productivity & improve HRD strategies.

• To become employer of choice.

Page 9: Hrd Audit and Its Methodology

CONCEPTS OF HRD AUDIT

HRD AUDIT

COMPREHENSIVE

EXAMINES LINKAGES WITH

OTHER SYSTEMSBUSINESS

DRIVEN

Page 10: Hrd Audit and Its Methodology

HOW IT IS DONE?...• In HRD Audit the skills, styles, systems,

strategies, structure is studied and analysed using a variety of methodologies like

– interviews, (Individual and group, Top Management, Line Managers, HRD Staff, Workmen and others)

– questionnaires, – observations, – available records, – workshops etc.

• This evaluation helps the organisation have a clear understanding of the lacunae and better align the HR processes with business goals.

Page 11: Hrd Audit and Its Methodology

Methodology of 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.

Page 12: Hrd Audit and Its Methodology

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

Page 13: Hrd Audit and Its Methodology

Methodology Adopted • Interviews

– Individual and group– Top Management– Line Managers– HRD Staff– Workmen and others

• Questionnaires

• Observation

• Analysis of records and secondary data

Page 14: Hrd Audit and Its Methodology

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

Page 15: Hrd Audit and Its Methodology

Methodology Adopted

INTERVIEWS—INDIVIDUAL & GROUP

• Interviews with CEO/Top Management

• Interviews with HRD Chief

• Interviews with Line Managers

• Interviews with workers and their representatives.

Page 16: Hrd Audit and Its Methodology

Methodology Adopted

OBSERVATIONS & QUESTIONNAIRES:

• Physical Facilities

• Meetings , discussions and Transactions

• Celebrations and Events

• Training and other Facilities

Page 17: Hrd Audit and Its Methodology

Methodology Adopted Analysis Of Records And Secondary Data

• Personnel Manual

• Manpower Planning Guidelines

• Recruitment & Promotion Manuals

• Performance Appraisal &Training Policy Guidelines.

• Documents like appointment letters, annual reports, product information and company information brochures…and

any other documents with implications for HRD strategies

Page 18: Hrd Audit and Its Methodology

Role of HRD Audit in Business Improvements

• HRD audit is cost effective

• It can give many insights into a company's affairs.

• 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

Page 19: Hrd Audit and Its Methodology

Role of HRD Audit in Business Improvements

• Improvements in HRD systems

• Increased focus on human resources and human competencies

• Better rec ruitment pol ici es and more professional s taff

• More planning and more cost effec tive training

• Strengthening accountabi liti es through appraisal sys tems and other mechanisms

• Streaml ining of other management practices

• TQM Interventions

Page 20: Hrd Audit and Its Methodology

Organisations that Have done HRD Audit

Page 21: Hrd Audit and Its Methodology

Some Organisations using HRD Audit

• Godrej Soaps

• GVFL

• BPL

• Tyco International

• Gati Cargo Management Services

• Wokhardt Hospitals


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