HRD SCORECARD AND WRITING THE HRD AUDIT

REPORT

BY
Vinita Krishnamurthi
eMBA-HR
Roll no. 9181
HRD
 HRD is a combination of 3 elements
 Competencies,
 Commitment
 Culture

o Any process or activity that, either initially or

over the longer-term, has the potential to
develop a person’s work-based knowledge,
expertise, productivity & satisfaction, whether
for personal or group/team gains or for the
benefit of an organisation, community nation
or ultimately the whole humanity
HRD AUDIT
HRD Audit is a comprehensive evaluation of the
existing HRD
 Structure,
 Strategies,
 Systems,
 Styles,
 Skills / Competencies &
 Culture

and their appropriateness to achieve the short-term and

long-term goals of the organisation.
 The Human Resources (HR) Audit can also be defined as a
process of examining policies, procedures, documentation,
systems, and practices with respect to an organization’s HR
functions
 Its main objective is to align the HR function(structure,
systems and processes) with business goals or to create a
business-driven HR function
Organisations undertake HR audits for many
reasons :

 To make the HR function business-driven.

 Change of leadership.

 To take stock of things & to improve HRD for

expanding, diversifying, & entering into a fast growth
phase.
 For growth & diversification.

 For promoting professionalism among employees & to

switch over to professional Management.
 To find out the reasons for low productivity & improve
HRD strategies.
 Dissatisfaction with a particular component.

 To become employer of choice.

THE HRD SCORECARD
 An assessment of the HRD maturity level of the
organisation

 In HRD Audit the skills, styles, systems, strategies,

structure is studied and analysed using a variety of
methodologies like
 Interviews,(Individual & group, Top Management, Line
Managers, HRD Staff, Workmen and others)
 Questionnaires
 Observations
 Available records
 Workshops etc.
 Assigns a 4 letter reading
 Systems maturity
 Competencies
 Culture and values
 Business Linkages

 It is the resultant of the HRD audit

 Done by external auditors

 This evaluation helps the organisation have a

clear understanding of the lacunae and better
align the HR processes with business goals
 HRD SCORE CARD

Name of the Organisation ABC

HRD HRD HRD Business Overall

System Competence Culture Linkage HRD
Maturity Score Grade Grade Maturity
Grade rating

B* C B* B B*CB*B

 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
HRD SYSTEMS MATURITY
 Measures the extent to which various HRD subsystems
and tools are well designed and implemented
 7 factors

 System appropriate to business goals

 Balance between current and future needs of the

corporation
 HRD strategies from corporate strategies

 Well designed systems with structural maturity

 Well implemented

 Well integrated with internal synergy

 Adequate talking care of HRD requirements

 Subsystems which are assessed
 Manpower planning and recruitment
 Performance management systems
 Feedback and coaching mechanisms
 Training
 Career development & Succession planning
 Job rotation
 OD interventions
 HRIS
 Worker development methods and systems
 Potential appraisal and development
 Other subsystems if any

o 10 point rating scale

 10- high level of maturity
 5-moderate level
 1- extremely low level
HRD COMPETENCIES
 Include attitudes, values & skills
 Employee categories

 The HRD staff

 Top management

 Line managers and supervisory staff

 Union and association leaders

 Workmen, operators and grassroot-level employees

 Each of these groups is assessed on

 The level of HRD skills they possess

 Their attitudes and support to learning and their own

development

 Extent to which they facilitate learning among others in

the corporation and those who work with them.

 Their attitudes and support to HRD function and systems

 Internal efficiency of the HRD function (HRD

Department)
HRD STAFF
 How professionally qualified are they?

 Do they seem to demonstrate adequate knowledge

base?

 Are adequately trained in the appropriate HRD

systems?

 Are they sensitive to internal customer requirements?

 How good is their skill base in implementing various

systems?

 Do they demonstrate OCTAPACE values?

 Are they quality conscious?

· Are they familiar with the business goals of the
corporation?

· Are they cost conscious?

· Are they empathetic?

 Do they spend adequate time trying to understand the

requirements of all categories of employees?
TOP MANAGEMENT
 Do they understand HRD and its significance in achieving
business goals?

· How supportive are they of HRD interventions and values?

· Are their leadership styles facilitative of a learning culture?

· Are they willing to give the time needed for HRD?

· How well do they subscribe to the HRD values like the

OCTAPACE values?
· How well do they practice HRD values.

· How committed are they to create a learning culture in

the organisation?

· Do they invest their time, effort and energies in

employee development
LINE MANAGERS AND SUPERVISORY
STAFF
· How much do they understand the significance of HRD?

· Are they interested and motivated to develop

themselves?

· Are they willing to spend their time and effort in

developing their subordinates?

· How supportive are they of HRD efforts?

 Do they have listening and other skills required

facilitating development of their juniors?
UNION AND ASSOCIATION LEADERS
· How much developmental role are they playing?

· Do they see their own role in HRD?

· Are they committed to create a learning

organisation?

· Are they willing to promote employee development?

· Are they positive in their approach and perceive

their own roles a supportive of organisation
building?

 Do they perceive the significance of Employee

development for organisation building?
HRD COMPETENCY MATURITY SCORE
A HRD Competency maturity score is assigned on the basis of the
competency levels of all categories.

 A* = All categories of employees have extremely high competence base

in HRD (knowledge, attitudes, values and skills) and the HRD
department has a high internal efficiency and satisfaction levels.

 B = The competence levels of every group is at an acceptable level and

the internal efficiency of the HRD department and the internal customer
satisfaction are acceptable levels.

 D = The competencies of more than one group are below acceptable

levels and/or the HRD department is not internally efficient and does not
meet the requirements of the minimum internal customer satisfaction.

 F = Total failure on almost all the dimensions

CULTURE & VALUES
 The HRD culture is a culture that promotes a learning
organisation
 Based on the following dimensions

 Openness

 Collaboration

 Trust and Trustworthiness

 Authenticity

 Proaction

 Autonomy

 Confrontation

 Experimentation

 Learning culture

 Listening
BUSINESS LINKAGE
 This score indicates the extent to which HRD efforts
(tools, processes, culture etc.) are driven to achieve
business goals.
 The business goals includes:
· Business Excellence including profitability and

other outcomes the organization is expected to

achieve;
· Internal operational efficiencies;

· Internal Customer satisfaction;

· External Customer satisfaction;

· Employee motivation and commitment;

· Cost effectiveness and cost consciousness

 Quality orientation & Technology adoption

HRD AUDIT REPORT
 Its main objective is to highlight areas that need
improvement and that need to be acted upon

 Its purpose is to help the top management and the HRD

staff recognise and retain the company’s strengths
1.INTRODUCTION
o An introduction to the company highlighting its
manpower, turnover, locations, products and services, its
main concerns and its management
o A brief description of the dates and reasons for
commissioning the audit
o A brief description of the framework and methodology
adopted for the study
o A brief description of the HRD systems
framework(various subsystems of HRD audit etc.)
o Future plans of the company and competency
requirements
2.CURRENT STATUS OF THE HRD
FUNCTION
 Structure and staffing of the HRD function
 HRD department’s thrust areas and objectives

 Highlights of the HRD systems and subsystems-brief

description of the existing HRD systems(performance
appraisal, potential appraisal, career planning, job
rotation etc.)
 Strengths and weaknesses of the HRD function

 HRD needs –broad highlights of the areas that need

attention
 3.GENERAL OBSERVATIONS
 Observations by the auditor in relation to its present
competencies and future potential
 Business concerns for the present and future

 Competencies and competency requirements for the future

 General observations about the competencies formed

 General observations about the competency-promoting

mechanisms
 Commitment and motivational patterns

 Commitment and motivation-promoting mechanisms

 Work culture and organisational culture

 Culture-building mechanisms
4.CAREER SYSTEMS
 Findings of the audit in relation to manpower planning,
recruitment, promotions, career planning and
development and succession planning
 Importance

 Manpower planning and utilisation-strengths,

weaknesses & recommendations
 Recruitment-strengths, weaknesses & recommendations

 Career planning & development-strengths, weaknesses

& recommendations
 Succession planning-strengths, weaknesses &
recommendations
5.WORK PLANNING
 Introduction(introduce the concepts of work planning
briefly followed by the component systems)
 Contextual analysis

 Role clarity

 Performance appraisal system

6.DEVELOPMENT SYSTEM
 Introduction & components
 Induction training

 Training & learning systems

 Performance guidance & development

 Worker development

 Other mechanisms of development

7.SELF-RENEWAL SYSTEM
 The strengths weaknesses and recommendations can be
highlighted in each of the foll. sections
 Introduction

 Role efficacy

 Organisation development

 Action-oriented research
8.HRD CULTURE
 Introduction
 HRD culture

 Values

 Quality orientation

 Rewards & recognition

 Information

 Communication

 Empowerment through participation, decentralisation,

shop-floor committees etc.
9.HRD FUNCTION
 General Observation
 Industrial relations & HR

 Personnel policies & HRD

 HRD function-structure

 HRD department-competencies

 HRD strategies

 HRD activities & priorities

Thank you!!