Future Institute of Engineering and Management, Kolkata Sonarpur Station Road, Kolkata – 700 150

HUMAN RESOURCE AUDIT

Student Name College Roll No. :

:

AMRITA DAS

08/MBA/20

University Registration No.: 081480710003 University Roll No. Project carried at Under Guidance of : : : 08148009003 6A, Acharya Jagadish Chandra Bose Road Premankur Bhattacharjee, Deputy General Manager (Human Resource) : Monodip Roy Chowdhury (Faculty, Future Institute of Engineering & Management) : Monalisa Dey (Faculty, Future Institute of Engineering & Management)

1

ACKNOWLEDGEMENT

Acknowledgement with gratitude my indebtedness to the various learned personalities under whose patronage and immense help this study paper has been prepared and compiled. a) Mrs. Monalisa Dey, Faculty of Future Institute of Engineering and Management.

b) Mr. Monodip Roy Chowdhury, Faculty of Future Institute of Engineering and Management.

Special Thanks to:c) Mr. Premankur Bhattacherjee Deputy General Manager (Human Resource) of peerless General Finance and Investment Company Limited.

Signature : _____________________ Date : _________________________ Place : ________________________

2

Table of Contents
Personnel/HR Audit ................................................................................................................................ 6 Objectives of Personnel/HR Audit ......................................................................................................... 7 RESEARCH METHODOLOGY .......................................................................................................... 8 Scope Of The Study .............................................................................................................................. 9 Organization of the report ..................................................................................................................... 10 Company Vision and Mission .............................................................................................................. 11 Unique Distinctions .............................................................................................................................. 11 TEAM PEERLESS ............................................................................................................................... 12 PGFI Vision .......................................................................................................................................... 13 PGFI Mission ........................................................................................................................................ 13 Unique Distinctions .............................................................................................................................. 14 Company Subdivisions ......................................................................................................................... 15 Peerless Hospitals ............................................................................................................................. 16 Peerless Securities and Insurance ..................................................................................................... 18 Hotels ................................................................................................................................................ 19 Travel ................................................................................................................................................ 20 in the individuals right to grow and prosper within a hospitable living environment and commercially viable business space. We offer space, which is Housing ......................................... 20 Old Age Homes ................................................................................................................................ 21 Subunits: Functions And Divisions ..................................................................................................... 23 Personnel/Human Resource Management - Func ................................................................................ 25 Managerial Functions ........................................................................................................................... 25 Operative Functions .............................................................................................................................. 26 Integration function: ............................................................................................................................. 28 Personnel Policies, Procedures and Programmes ................................................................................. 31 Definition of Personnel Policy.......................................................................................................... 31 Personnel/HR Audit .............................................................................................................................. 32 Objectives of Personnel/HR Audit ....................................................................................................... 33 Types of Personnel Records ............................................................................................................. 33 Need for Personnel Audit ................................................................................................................. 33 Benefits ............................................................................................................................................. 34 Scope of Personnel Audit ................................................................................................................. 34 | Personnel Audit - Areas and Levels ...................................................................................................... 34 HR Audit Process ................................................................................................................................. 36 Effectiveness Ratios ........................................................................................................................ 37 Accident Ratios ................................................................................................................................ 37 Organisational Labour Relations Ratios ......................................................................................... 37 Turnover and Absenteeism Ratios .................................................................................................. 37 Employment Ratios .......................................................................................................................... 37 Methodology of HRD Audit ............................................................................................................. 38 Preparation for the Audit ...................................................................................................................... 40 Check-list of Documents to be made available by the HRD department for Audit ........................ 41 BALANCED SCORECARD .................................................................................................................... 42 Research Study and Analysis ................................................................................................................ 51 3

Documents Studied ............................................................................................................................... 52 Bio-Data ............................................................................................................................................ 52 Appointment Letter ........................................................................................................................... 52 Joining Letter .................................................................................................................................... 52 Confirmation Letter .......................................................................................................................... 52 Promotion Letter ............................................................................................................................... 53 Pay fixation Letter ............................................................................................................................ 53 Processes and Systems Studied ............................................................................................................ 53 Leave Systems .................................................................................................................................. 53 Performance Appraisal ..................................................................................................................... 54 Performance Appraisal at Kaizen Leisure and Holidays ...................................................................... 58 Importance of Performance Appraisals ............................................................................................ 64 Research Methodology ......................................................................................................................... 65 Primary Research .............................................................................................................................. 65 Secondary Research .......................................................................................................................... 65 Observation ........................................................................................................................................... 65 RECOMMENDATION ........................................................................................................................ 67 HUMAN RESOURCE REPORT ......................................................................................................... 73

4

The entire project touched upon most of the HR functions in the company. The study of the documentation process revealed that the company was storing several unnecessary documents related to employee records and omitting some very essential ones. Suggestions were made on upgrade of the current system and the benefit of the same was clearly outlined. The project primarily focussed on three aspects of the company: its document gathering and storage system. Suggestions given focussed on improving each function separately and also the entire organization as a whole. The study of the performance appraisal system was more of a mark-to-market study where the processes of the company were compared to that of the best in the industry. A map was created to identify which documents are necessary and the cost of storage was weighed against the importance of information. the travelling agency of Peerless. The management were made aware of the various other performances appraisal systems in other organizations and their relative benefits. The project aimed at studying the various Human Resource processes and systems in the organizations and making suggestions to improve the same. It is hoped that the suggestions when implemented would improve the organizations internal systems and bring greater engagement between the company and its employees. 5 .Executive Summary The project covered in the report was focussed on a Human Resource Audit at Kaizen Leisure and Holidays. the leave system and the performance appraisal system. Discrepancies across hierarchies wherever identified were reported and suggestions were made to streamline the leave system. Based on this suggestions were made regarding the improvements to be made in the documentation process. The leave system study focussed on comparing the leave entitlements across various hierarchies in the organization and identifies its potential as an employee motivator.

in most cases this is not sufficient. 2. Identification of gap between objectives and results. However. Measurement and evaluation of personnel programmes. In place of informal impressions gathered and summarised through records and reports. personnel audit refers to an examination and evaluation of policies. According to Seybold. Personnel audit covers basically three things: 1. policies and practices. A critical evaluation of manpower programmes might be required to find out the areas where improvements are needed and to set things in order. procedures and practices to determine the effectiveness of personnel management. Determination of what shoulder what should not be done in future. 6 . a systematic and analytical search is made to find out the effectiveness of personnel management.Introduction Personnel/HR Audit Personnel records and reports provide information regarding the utilization of human resources in an objective way. and 3.

7 . To find out the effectiveness of various personnel policies and practices. b. To review the personnel system in comparison with organisations and modify them to meat challenges of personnel management. To review the organisational system. The objectives of personnel audit are: a. and d. To know how various units are functioning and how they have been able to implement the personnel policies. and to assist the rest of the organisation by identifying the gaps between objectives and results. human resources subsystem in order to find out the efficiency of the organisation in attracting and retaining human resources. for the end-product of an evaluation should be to formulate plans for corrections of adjustments" (Gray). c.Objectives of Personnel/HR Audit "The basic objective of personnel audit is to know how the various units are functioning and how they have been able to meet the policies and guidelines which were agreed upon.

RESEARCH METHODOLOGY

1) Primary Research – Primary research has been taken place by interviwing Atish Adhikari of Kaizen in consultation with Premankur Bhattacherjee deputy general manager (human resource) Peerless General Finance And Investment Company

2) Secondary Research- Secondary Research has been carried on by consulting various books in college library and also consulting with the professor in our college.

8

Scope Of The Study

Entire week, the audit has been conducted at Kaizen Leisure And Holidays Pvt. Ltd. 6A, Acharya Jagadish Chandra Bose Road , Kolkata-700017

And once in a week the report is shown to Premankur Bhattacherjee (Deputy General Manager) of The Peerlees General & Investment Company Limited

9

Organization of the report

Chapter 1 describes in brief about the topic (audit), the place where the work of audit has been taken place and also about primary research and secondary research. Chapter 2 describes about the organizational profile. Chapter 3 describes about what Human Resource audit stands for and an elaborate description of the entire topic. Chapter 5 provides certain recommendation.

10

Peerless Group
Incorporated in 1932 as "The Peerless Insurance Co Ltd", a leading indigenous insurance company, the company is now known as "The Peerless General Finance & Investment Co Ltd".Today Peerless is the market leader in the area of savings & investments and has emerged as India's largest Registered Residuary Non-banking Company (RNBC), with core competence of mobilizing savings from the grass root level. It's pan-Indian presence with countrywide network and constant endeavour to offer need-based products and superior customer services have enabled Peerless to build an excellent brand image. Company Vision and Mission The vision of PGFI is to emerge as the country‘s most trusted doorstep financial services provider in the private sector with the lowest servicing cost to the customers. We will accomplish our vision through our commitment to strategic growth, quality service and creation of self employment opportunities for more people. To be a premier financial services company helping people build their security by providing them with innovative financial products and quality investment solutions through dedicated service.  To create livelihood solutions across the length and breadth of the country.  To fulfil its role as a responsible corporate citizen.  To provide a supportive and rewarding environment for employees Unique Distinctions  The country's premier financial service provider in the private sector with over77 years of experience.  Professionally managed by a host of eminent corporate leaders on the Board with Mr. D Basu as the Chairman and Mr. S K Roy as the Managing Director.  A wide variety of tailor-made, co-branded, Insurance-linked financial products.  Technology-based, prompt and personalized service, right at the Customers' doorsteps.  Helping people build up regular savings habit and offering assured return with total security.
11

Over Rs.  Safe and Riskless .800 Crore already disbursed.mopping up huge un-surfaced resources and injecting the same into the mainstream of the country's economy. with core competence of mobilizing savings from the grass root level. a leading indigenous insurance company. which is the source of livelihood for teeming millions across the country TEAM PEERLESS Team peerless Incorporated in 1932 as "The Peerless Insurance Co Ltd". the company is now known as "The Peerless General Finance & Investment Co Ltd" Today Peerless is the market leader in the area of savings & investments and has emerged as India's largest Registered Residuary Non-banking Company (RNBC).15.  Generating excellent.  Tapping the untapped areas . enormous Self-employment opportunities through Smart Rojgar Yojna. 12 . Set an immaculately spotless record of Maturity Payment .Over 100% in Secured approved investments. It's pan-Indian presence with countrywide network and constant endeavor to offer needbased products and superior customer services have enabled Peerless to build an excellent brand image.

To fulfill its role as a responsible corporate citizen.PGFI Vision The vision of PGFI is to emerge as the country‘s most trusted doorstep financial services provider in the private sector with the lowest servicing cost to the customers. To provide a supportive and rewarding environment for employees. We will accomplish our vision through our commitment to strategic growth. quality service and creation of self employment opportunities for more people. PGFI Mission To be a premier financial services company helping people build their security by providing them with innovative financial products and quality investment solutions through dedicated service. 13 . To create livlihood solutions across the length and breadth of the country.

Tapping the untapped areas . Technology-based.Over 100% in Secured approved investments. right at the Customers' doorsteps. Helping people build up regular savings habit and offering assured return with total security. 14 . Set an immaculately spotless record of Maturity Payment . D Basu as the Chairman and Mr.mopping up huge un-surfaced resources and injecting the same into the mainstream of the country's economy. Safe and Riskless . Insurance-linked financial products. co-branded.Unique Distinctions The country's premier financial service provider in the private sector with over77 years of experience. prompt and personalized service.Over Rs.800 Crore already disbursed. Professionally managed by a host of eminent corporate leaders on the Board with Mr. S K Roy as the Managing Director. A wide variety of tailor-made.15.

Company Subdivisions 15 . enormous Self-employment opportunities through Smart Rojgar Yojna.Generating excellent. which is the source of livelihood for teeming millions across the country.

for nearly twelve years. Fifty One beds are equipped for providing intensive care. Consultant and Resident Doctors are available round the clock for utmost personalized attention. near the southern periphery of Calcutta. It is a referral center of Eastern India and nearby countries.Roy Research Centre is a multidisciplinary super-speciality hospital. Thirteen beds are allotted as HDU beds in addition. 16 . The cost is affordable. It has already become a trusted name in reliable. General ITU. in the Dept of Gynaeology & Obstetrics. The hospital has most of the major clinical and medical specialities. Cardio-thoracic surgery and Neurology. It is located within the serene and unpolluted natural surroundings. The indoor department has 300 beds in the form of wards and cabins.Peerless Hospitals Peerless Hospital & B. Cardiothoracic ITU and Neonatal ICU-level III.K. dependable and advanced health care system. these are ICCU. advanced and state-of the art diagnostic and therapeutic gadgets. The departments are fully equipped with the latest.

Roy Research Centre is a marvel in health-care. Immunoassay facilities. The growth in the field of operative cases and cath lab procedures was significant. The hospital is committed to enhancing the quality of life through improved healthcare. All the diagnostic investigations are carried out under the same roof. General Medicine and 17 . producing high levels of patient satisfaction. Peerless Hospital aims to provide highest possible quality of compassionate and cost-effective care and treatment. neurology.K. and enriching the quality of life. ophthalmology. Attuned to this corporate philosophy. Its 300-bed multidisciplinary. Peerless Hospital & B. super-specialty hospital. It is organised in different blocks. fully automated analysers for Haematochemical and Biochemical studies. A few to name are fourth generation CT scanner. orthopaedics. Departments such as Orthopaedics. Peerless Hospital & Research Centre Limited opened up a whole new vista of the latest and state-of-the-art.The attractive multistoried building had the fingerprints of French Architecture. gastroenteritis and general surgery etc. with excellent diagnostic and treatment facilities in cardiology. Interdepartmental communication is maintained by Intercoms Dual host mainframe computer with 40 terminals connected by Ethernet server (LAN). to each and every patient. health-care facilities in this part of the subcontinent. Nephrology. Ultramodern Cardiac catherisation laboratory. the preparation of those professionals who will serve the health needs of others and the discovery of knowledge that will benefit us all. The hospital has facilities to train Medical and Paramedical staff. Colour Doppler and Echocardiography. Peerless‘s foray into health-care is synergic with its corporate culture : rendering myriad forms of service to the society.

as an examination centre of MRCP  It‘s a premier Eastern Indian institute in the area of joint replacement surgery  Commissioned across nine acres.General Nursing and Midwife Duration. It provides a wide range of services . a position further enhanced with the Company joining the National Securities Deposit Ltd.  2006. which recorded robust growth growth in 2005-‘06. and the Kolkata Stock Exchange Association Ltd and an agent of UTI.  A reliable organisation for stock and security broking. member of wholesale debt market of NSE  Empanelled agent of leading Mutual Funds. DFIs and Corporate 18 . Trade Settlements and Depository Services.  The Peerless Hospital has been approved by the Royal College of Physicians of Ireland. this ISO 9001:2000 certified hospital delivers comprehensive healthcare of an international standard at an affordable cost.4 1/2years  2006. A corporate member of the National Stock Exchange of India Ltd. India Chapter. Peerless Securities and Insurance Peerless Securities Ltd. It enjoys a high level of trust. Radiology and Imaging Departments to upgrade the quality of investigation and testing as well as to broaden the spectrum of the available diagnostic range. RBI Relief Bonds and Mutual Fund. the Company has been adopting a strategy of expansion to enhance profitability. Post Graduate Diploma in Front Office Management is scheduled to commence from April 2007. Several courses have been introduced in the hospital in recent years.Share & Stock Broking.2 years  2002. investment advisory and depository services  Corporate Member of National Stock Exchange and Calcutta Stock Exchange. is one of India‘s premier Financial Services Company.BSc in Nursing Duration. A batch of new capital equipments of high-end technology has been introduced in Pathology. marketing of financial products.3 1/2 years  A one year course.Gastroenterology have also shown good results particularly Dialysis Department.Master of Hospital Administration Duration-2 years  2006. RBI & UTI  Depository participant with NSDL  Marketing Public Privately Placed Issues of PSUs.Bachelor's degree in Physiotherapy Duration. Looking at the competitive market. as a Depository Participant.

in the Northern part of the country and other places. Burglary and other perils are covered as well. The first one covers loss of or damage to privately owned vehicle against the risk of accident. One of the finest Kolkata hotels. and close to both shopping and business areas. The policy also gives coverage for liability arising out of death.  Home Suvidha gives complete protection to customer home against a wide range of risks and perils like riots. As per the agreement. floods. over 100% of the corpus of depositor's funds lie invested in Government Securities and other Approved Investments. Necessary training on the products and life insurance business has been imparted to PDL executives at the branch level. injury to third party and/or third property damage. PGFI. the Peerless Inn has 122 rooms and suites and is located in Chowringhee in the heart of Kolkata. strike. fire. earthquake and other natural disasters. Hotels The Peerless Group of Hotels is a family of Hotels and Resorts spread across Kolkata. Durgapur. 19 . PDL has been taken over the corporate agency of MNYL. Burglary and other perils are covered as well.PGFI recently entered into an agreement with Max New York Life Insurance Company Ltd. Port Blair (Andaman) & Mukutmonipur The Peerless Inn offers discerning travellers a world of convenience in the best traditions of Bengali hospitality. The Company's Investments have been on a path of steady & consistent growth over the years. The company objective has been to provide our certificate holders a safe platform for depositing their savings and to ensure earning reasonable returns. (MNYL) . customer and their family get hassle free medical care.Eastern regions and subsequently. earthquake and other natural disasters. using the infrastructure and network of its parent company.  Individual Medishield is a complete protection plan for the medical treatment of the entire family while at the same time ensuring that in case of any unfortunate accident. In the first phase. PDL has decided to conduct business through its own SPs in the East and the North.a new generation private sector conglomerate in life insurance business in India. strike. Today. riot. Peerless distributing the following ITGI Policies  Trade Suvidha gives complete protection to business against a wide range of risks like fire and other perils like riots.  Motor insurance provides coverage for both private car below 5 years and two wheeler below 5 years. earthquake. strike etc. theft.

CHANGING FOR THE BETTER. The Company believes that the new logo denotes an illustration of a man in the shape of the alphabet ―K‖. The colour ―black‖ portrays the threshold of development which turns into ―green ―symbolizing growth. who is in a joyous mood. With your support and strong belief in our brand. which is Housing Bengal Peerless Housing Development Company Limited incorporated in 1994. We 20 . Both inbound and outbound tours are organized by us with comfort as our in the individuals right to grow and prosper within a hospitable living environment and commercially viable business space. The illustration is in 3 colours. Kaizen Leisure & & Holidays (Formerly Peerless Travel Pvt. Located in the centre of the city. Kaizen Leisure & Holidays is an IATA (International Air Transport Association) accredited organization and a member of TAAI (The Travel Agents Association of India). He is forecasting a memorable holiday with Kaizen and is confident of achieving it. Our core strength was derived from our highly experienced and dedicated team of travel and hospitality professionals.It‘s one of the finest hotels in the steel city. The Commitment Bengal Peerless endeavors to provide space to all while demanding the very least. We are centralized (operations and marketing) at Kolkata but with our nationwide infrastructure base we can provide quality services at the most competitive prices.green. aiming to reach high. The Vision Bengal Peerless aims to provide business and living space to all sections of society since we believe that shelter and livelihood are the primary need for every human being and every individual must be provided with an opportunity to get his own. also representing the head of a man. and is an excellent option for business visitors as well as tourists. we began to evolve as one of the leading agencies in holiday services. The Company is a perfect combination of public sector dynamism with private sector entrepreneurship thereby creating for itself a position of eminence and prominence among Real Estate Development Companies in West Bengal. We offer space. is a joint venture between the West Bengal Housing Board and The Peerless General Finance and Investment Company Limited. the Durgapur hotel has 61 rooms and suites and is close to the railway station and the highway. black & yellow. Ltd) started as a dream and like any beautiful dream it kept growing. The ―green‖ arrow points to the golden ―sun‖. Travel The word Kaizen means ―change for the better‖ in Japanese. Thus the logo and the colours together complement the motto . Our beginning was humble. We started operations in 1991.

the first Public-Private joint project at New Town. During the year the Company has successfully completed ―Avishikta-I‖ Housing Complex on E. is an Rs 60 crore project and promises to be a fusion of cultural heritage and class ambience. so as not to disturb the serene beauty of the natural landscape. M. 21 .a comprehensive shopping complex is the first commercial centre at New Town. an Rs 250 crore project is the first of its kind Multi Utility Infrastructure project being implemented at New Town. Aahirini Neighbourhood Centre. Architectural details are given great consideration. Bypass. Thus Bengal Peerless Housing Development Company Limited was formed in 1994 with West Bengal Housing Board and The Peerless General Finance and Investment Company Limited. Alaktika Housing Complex under implementation at Action Area II of New Town. Kolkata Axis Multi-complex. on E. Kolkata. Kolkata received appreciation from all corners of the society.believe affordable as well as completely secured. a Rs 102 crore project. M. Animikha Housing Complex. A grand shopping mall with entertainment.M. fashion shows European luxury products and information communication technology products as its constituents. Kolkata. The Government of West Bengal in an effort to combat the problem of Housing formed Joint Sector Companies with West Bengal Housing Board and Private Entrepreneurs. Sonar Taree Housing Complex. a fusion of Colonial and Tagore's architecture "Sonar Taree" at Santiniketan consists of 355 dwelling units and bungalows and is an embodiment of spiritual bonding with nature. having 672 dwelling units is an epitome if collective living with deep rooted sense of socioeconomic cohesion. We remain steadfast to our commitment to provide dwellings and commercial spaces of the highest quality. sports. M. Peerless Polyclinics in various parts of Kolkata & Milan Thirtha an Old Age Home at Baranagar are some of the tangible instances of the company's continuing social commitment. Avishar Commercial Complex at the junction of E. being the first ‗High Rise‘ Housing Complex implemented by the Company.Bypass. Old Age Homes Social service is very much a part of the Company's activities. Fluctuating real estate prices and other external adversities do not compel us to shift the burden of price escalation upon our allottees. Bypass. Bypass and Price Anwar Shah Road shall be a landmark structure on the E. Kolkata. Avishikta Housing Complex.

When such things happen. Most people have a casual attitude toward organizations because organizations are intangible. to achieve their goals The basic building blocks of differentiation are organizational roles (see Figure 4. An organizational role is a set of2 task-related behaviors required of a person by his or her position in an organization. is motivated to provide goods and services.A. work. But the reason an organization. managers specialize in some roles and hire people to specialize in others. we think about organizations only when they fail us in some way—for example. such as cooking. the restaurant's crucial stakeholder group. and sometimes we see the people whom the organization employs as. and 22 . cooked-to-order meals. when our new computer crashes. such as FedEx Kinko‘s.R. As the division of labor increases in an organization.R. We see the products or services that an organization provides. A chef's role is to provide customers with high-quality. which are the ultimate source of an organization's core competences. Specialization allows people to develop their individual abilities and knowledge. Some roles require people to oversee the behavior of others: Shift managers at the B. and hired people with the appropriate abilities and knowledge to do them.2). appetizing. why the hospital made us spends 30 minutes filling out paperwork in order to obtain service and then kept us waiting for an hour and a half.A. We see news film of production lines churning out automobiles or computers. and purchasing. and the relationship of one role to another is defined by task-related behaviors. and die in organizations. are not apparent to most people outside the organization. At the B. we rarely bother to wonder about how these goods and services are produced. courteous service to enhance their dining experience. A person who is given a role with identifiable tasks and responsibilities can be held accountable for the resources used to accomplish the duties of that position.R. the owners identified various tasks to be done. Organizational fixture is based on a system of interlocking roles. for example. when we go into a FedEx Kinko‘s store or doctor's office.A. or why computer companies don't insist on higher quality hardware and bug-free software from their suppliers. The chef was accountable for providing high-quality meals to customers consistently and speedily. nobody has ever seen or touched an organization. when we are forced to wait two hours in the emergency room to see a doctor. grouping people and other resources to produce goods and services is the essence of organizing and of what an organization does. Nevertheless. and Grille waiter is to provide customers with quick. bookkeeping. Most often. or when we are at the end of a long line in a bank on a Friday afternoon. Although we routinely enjoy the goods and services that organizations provide. Even though most people in the world today are born. the organizational role of a B. for example. and Grille. we wonder why the bank did not anticipate The rush of people and put on more tellers. Bob and Amanda held the waiter responsible for satisfying customers.Organization Theory Few things in today's world are as important or as taken for granted as organizations. and we read in newspapers that local schools or hospitals are using new technologies such as the Internet and online learning to improve their productivity. Yet we rarely question how or why these organizations go about their business. For example. and the way it controls and influences its members so that it can provide them.1 An organization is a tool used by people to coordinate their actions to obtain something they desire or value – that is.

Support functions include purchasing. market research. the result within the organization is control—the ability to coordinate and motivate people to work in the organization's interests Subunits: Functions And Divisions In most organizations. Adaptive functions allow an organization to adjust to changes in the environment. engineering. When an individual clearly understands the responsibilities of his or her role and what a superior can require (a person in that role. which allow an organization to learn from and attempt to manage its environment and thus 23 . the production operations department controls the manufacturing process. Each restaurant is a division composed of just two functions—dining room and kitchen—which are responsible for the restaurant's activities. and Grille. to repair broken machinery. Maintenance functions enable an organization to keep its departments in operation.3 The differentiation of* organization into individual organizational roles results in clear authority responsibility requirements for each role in the system. to handle the acquisition of inputs.A. people with similar and related roles are grouped into a subunit. At Ford. an issue discussed in detail in Chapter 8. Production functions manage and improve the efficiency of an organization's conversion processes so that more value is created. A function is a subunit composed of a group of people.R. tools. and janitorial services. production control decides on the most efficient way to produce cars at the lowest cost.IE). in the B.4 Support functions facilitate an organization's control of its relations with its environment and its stakeholders. As organizations grow in size. these companies face the problem of how to organize these divisions' activities on a global level so they can! Create the most value. and Grille. and long-range planning. to recruit and train employees and improve skills. and quality control monitors product quality. Authority is the power to hold people accountable for their actions and to make decisions about how to invest and use organizational resources.R. to respond to the needs of outside stakeholders. Take another look Figure 4. For example. Adaptive functions include research and development. sales and marketing. Bob and Amanda Richards hired a manager to oversee purchasing for all three restaurants and an accountant to manage the books (see Figure 4.A. to handle the disposal of outputs.Grille oversee the waiters and busboys. chefs are grouped together as the kitchen function. A person who can hold another person accountable for his or her performance possesses authority over the other person. Maintenance function^ include personnel. The number of different functions and divisions that an organization possesses is a measure of the organization's complexity—its degree of differentiation.1E. work together. Production functions include production operations. The main subunits that develop in organizations are functions (or department and divisions. and quality control. In addition. A division is a subunit that consists of a collection of functions or departments that share responsibility for producing a particular good or service. who possess similar skills or use the same kind of knowledge. or techniques to perform their jobs. they differentiate into five different kinds of functions. and public relations and legal affairs. each one responsible for producing a particular product. Large com] like General Electric and Procter & Gamble have dozens of separate divisions. Differentiation into functions and divisions increases an organization's control over its activities and allows the organization to accomplish its tasks more effectively. production control. and waiters are grouped together as the dining function. to keep the work environment safe and healthy—conditions that are very important to a restaurant like the B.

3 24 . This is because the efficient use of physical resources (i. The most efficient machinery in the world will not produce at an optimum level unless the people who operate the machinery know how to make it perform at its best and most importantly. record keeping. insurance. human resource is the most important.0 for every 100 employees served by the department. Only recently have companies looked at HRM as a means to contribute to profitability. and some aspects of benefits administration. for example. they must be managed well and this requires leadership. is responsible for formulating strategy and establishing the policies the organization uses to control its environment. The HR department is most likely to collaborate with other company functions on employment interviewing.e.2 The median HR department expenditure per employee was $813.increase its core competences. HR expenditures relative to operating costs have been fairly stable over the past few years. efficiently and effectively. capable of producing an output that is greater than the sum of inputs.300). Above all. which are used in an organization. even ordinary people can deliver extraordinary results. land. materials) ultimately depends on how the human factor is put to good use on various operations. and other business goals through enhancing and supporting business operations. Top management. wonderful things can happen: • Human resources help in transforming the lifeless factors of production into useful products. quality. If the skill and the will are properly applied.1 To extract the best out of people. The average ratio of HR department staff to total number of employees has been 1. compensation. therefore. Large companies are more likely than small ones to employ HR specialists. are motivated to make their equipment produce efficiently. and training and development. advanced manufacturing. They must have requisite skills to handle their jobs in a competent way. and efforts to improve quality and productivity. and control of resources to improve the organization's ability to create value. As with other business functions. to get the best out of people.A.1 shows the responsibilities of human resource departments. Once they get inspired. machinery. At the B. This is where human resource managers play a critical role in bridging gaps between employee expectations and organisational needs by adopting appropriate human resource strategies and practice.e. Other common specializations include recruitment. and communications and information companies the most ($1. Middle Among the various factors of production. Table 1. the organisation must provide a healthy work climate where they can exploit their talents fully while realising goals assigned to them. Managerial functions facilitate the control and coordination of activities within and among departments. unemployment compensation. performance management and discipline. real estate. The HR department is solely responsible for outplacement. with wholesale and retail trade organizations spending the least ($282) and finance. with benefits specialists being the most prevalent. labor law compliance. testing. Managers at different organizational levels direct the acquisition of. developing new menu choices to keep up with customers' changing tastes is an important adaptive activity. and Grille. • They can help an organisation achieve results quickly. investment in. • They are capable of enlargement i.R.

and the value system of company management. namely . The HR department may take full responsibility for human resource activities in some companies.Many different roles and responsibilities can be performed by the HR department depending on the size of the company. selection and training of employees. • Directing: This involves supervising and guiding the personnel. in fact. Managerial Functions The basic managerial functions comprise planning. The personnel manager must be an effective leader who can create winning 25 . organizing. • Organizing: This function is primarily concerned with proper grouping of personnel activities. whereas in others it may share the roles and responsibilities with managers of Personnel/Human Resource Management . Planning of personnel today prevents crises tomorrow. Organizing. Direction then consists of motivation and leadership.Func P/HRM is concerned with two sets of functions.managerial functions and operative functions. is considered to be the wool of the entire management fabric and hence cannot afford to be ignored. To execute plans. the success of the organization depends on the direction of things rather than their design. Creation of a proper structural framework is his primary task. directing and controlling. Many a time. assigning of different groups of activities to different individuals and delegation of authority. • Planning: This function deals with the determination of the future course of action to achieve desired results. direction is essential for without direction there is no destination. The personnel manager is expected to determine the personnel programmed regarding recruitment. the characteristics of the workforce. the industry.

correcting negative deviations and industrial assuring an efficient accomplishment of plans. Development: It is the process of improving. It ensures that the activities are being carried out in accordance with stated plans. matching the employee's qualifications. take care of the concerns and expectations of employees at all levels. Some employees leave an organisation due to various reasons leading to resignation. iv. records and personnel audit programmers. vii. compensation and industrial relations. skill and knowledge of an applicant with a view to appraising his/her suitability to the job in question. recruitment. Internal Mobility: The movement of employes from one job to another through transfers and promotions is called internal mobility. skills and interest with the job on offer. Induction and orientation: Induction and orientation are techniques by which a new employee is rehabilitated in his new surroundings and introduced to the practices. its mission statement and values which form its backbone. placement. Under its purview you have job analysis. experience.. viz. While achieving results. such job changes should be guided by well-conceived principles and policies. Placement: It is the process that ensures a 360Q fit. invariably. selection. induction and internal mobility. moulding. vi. Selection: It is the process of ascertaining qualifications. creative ability. aptitude. It makes individuals aware of their performance through review reports. Controlling: Controlling function of personnel management comprises measuring the employee's performance. the personnel manager must. attitude. retirement and even termination. knowledge. In the best interest of an organisation and its employees. Recruitment: It is the process of searching for prospective employees and stimulating them to apply for jobs in the organisation. It is the personnel manager's responsibility to position the right candidate at the right level. manpower planning. 1. development. employment. performing jobs which would meet their needs and provide satisfaction for the individuals involved. Procurement function: The first operative function of personnel management is procurement. These functions are to be performed in conjunction with managerial functions. knowledge and aptitude. He must be acquainted with the principles which define and drive the organisation. ii. and people. available at proper times. Job analysis: It is the process of collecting information relating to the operations and responsibilities pertaining to a specific job.• teams. It is concerned with procuring and employing people who possess necessary skill. Human resources planning: It is a process of determining and assuring that the organisation will have an adequate number of qualified persons. v. Operative Functions The operative functions of P/HRM are related to specific activities of personnel management. policies. iii. experience. 2. changing and developing the skills. i. These movements are known as external mobility. values and commitment 26 .

3. work sharing and home work assignments. Work scheduling: Organisations must realize the importance of scheduling work to motivate employees through job enrichment. job search and acquisition of work experiences. It is a method gf evaluating the behaviour of employees at the workplace and normally includes both the quantitative and qualitative aspects of job performance. Job evaluation: Organisations formally determine the value of jobs through the process of job evaluation. Performance appraisal: After aA employee has been selected for a job. knowledge. Performance evaluation or appraisal is the process of deciding how employees do their jobs. . iii. Work scheduling is an attempt to structure work. It includes succession planing which implies identifying developing and tracking key individuals for executive positions iv. training. It is a process that involves determining and communicating to an employee how he or she is performing and ideally. 27 iv. Job evaluation helps to establish internal equality between various jobs. has been trained to do it and has worked on it for a period of time. It creates a climate that enables every employee to develop and use his capabilities in order to further both individual and organisational goals. and responsibilities towards having a productive unit of work is called job design. Human resource development: HRD aims at developing the total organisation. responsibility) and extrinsic (job design. his performance should be evaluated. Training: Training is a continuous process by which employees learn skills. Employees need to be challenged at work and the job itself must be one that they value.based on present and future requirements both at the individual's and organisation's level. abilities and attitudes to further organisational and personnel goals. Motivation and compensation: It is a process which inspires people to give their best to the organisation through the use of intrinsic (achievement. Motivation: Combining forces that allow people to behave in certain ways is an integral aspect of motivation. ii. v. establishing a plan of improvement. Job design: Organising tasks. appraisal based incentives) rewards. People must have both the ability and the motivation if they are to perform at a high level. Executive development: It is a systematic process of developing managerial skills and capabilities through appropriate programmes. Job evaluation is the systematic process of determining the relative worth of jobs in order to establish which jobs should be paid more than others within the organisation. physiological and behavioural aspects of work. The main purpose of job design is to integrate the needs of employers to suit the requirements of an organisation. This function includes: i. incorporating the physical. i. ii. shorter work weeks flexi-time. work scheduling. iii. recognition. It is a systematic and objective way of evaluating work-related behaviour and potential of employees. Managers generally try to motivate people through properly administered rewards (financial as well as non-financial). Career planning and development: It is the planning of one's career and implementation of career plans by means of education.

Social security measures: Managements provide social security to their employees in addition to fringe benefits. 28 . welfare amenities etc. motivate and retain competent employees-which is also perceived to be fair by these employees. hours or conditions of employment that is used as a complaint against the employer. The important goals of compensation administration are to design a low-cost pay plan that will attract. encouraging a participative culture. Incentives and benefits: In addition to a basic wage structure. They must ensure a work environment that protects employees from physical hazards. Unlike incentives. Employee welfare: Employee welfare includes the services. ii. transportation. (d) Disablement benefits/allowance. Through proper safety and health programmes. club membership) 4. offering constructive help to trade unions etc.The appraisal process consists of six steps: (1) establish performance standards with employees. unhealthy conditions and unsafe acts of other personnel. birthday gifts. (e) Dependent benefits. (4) compare actual performance with standards. paid holidays. (3) measure actual performance. (f) Retirement benefits like Provident Fund. vii. (employee stock options. (b) Maternity benefits to women employees. Compensation administration: Compensation administration is the process of dividing how much an employee should be paid. Maintenance: It aims at protecting and preserving the physical and psychological health of employees through various welfare measures. (2) set measurable goals (manager and employee). Housing. insurance. iii. Grievance redressal: A grievance is any factor involving wages. Organisations have been offering a plethora of other benefits and services as well as a means of 'sweetening the pot'. like redressing grievances promptly. etc. workmen's compensation. instituting proper disciplinary measures. i. the physical and psychological well-being of employees must be preserved and even improved. Health and safety: Managers at all levels are expected to know and enforce safety and health standards throughout the organisation. (5) discuss the appraisal with the employees and (6) if necessary initiate corrective action. benefits and services are offered to all employees as required by law including social security. vi. most organisations nowadays offer incentive compensation based on actual performance. Integration function: This tries to integrate the goals of an organisation with employee aspirations through various employee-oriented programmes. Gratuity. i. empowering people to decide things independently. These measures include: (a) Workmen's compensation to those workers (or their dependents) who are involved in accidents. Pension. education and recreation facilities are all included in the employee welfare package. (c) Sickness benefits and medical benefits. psychological and social well being. amenities and facilities offered to employees within or outside the establishment for their physical. anniversary gifts.

Trade unions have always played a powerful role in improving the lot of workers in India. iii. discontentment develops and conflicts erupt abruptly. benefits. the situation changed dramatically. It is not always easy to put out the fires with the existing dispute-settlement-machinery. they create camaraderie among team members. and discipline. The process of bargaining generally takes time. and commit themselves to organisational objectives whole-heartedly. They encourage individuals to sublimate their individual goals for those of the group.proposals. The contract contains agreements about conditions of employment such as wages. using aggressive bargaining tactics. lay off. Hence both labour and management must appreciate the importance of openness. Employee participation and empowerment: Participation means sharing the decision-making power with the lower ranks of an organisation in an appropriate manner. Since they are now treated with respect. It is a relatively permanent a body formed by workers with the objective of countering exploitation and harassment. When workers participate in organisational decisions they are able to see the big picture clearly and also how their actions would impact the overall growth of the company. rest pauses and the grievance procedure. many employers have been forced to shutdown units and scale down operations. Collective bargaining: It is the process of agreeing on a satisfactory labour contract between management and union. promotion. vii. trust and collaboration in their day-to-day dealings. diagnose and correct the causes of potential employee dissatisfaction before it converts into a formal grievance. They can offer feedback immediately based on their experiences and improve the quality of decisions greatly. vi.necessary for the attainment of an objective. v. Constructive grievance handling depends first on the manager's ability to recognise. iv. Unable to fight the forces of competition. The resulting agreement must be ratified by unions. regulations and procedures.ii. However since the 90's. hours. Trade unions and employees association: Trade union is an association either of employees or employers or independent workers. Industrial relations: Harmonious industrial relations between labour and management are essential to achieve industrial growth and higher productivity. By increasing worker interaction. created by the government. It strives towards providing economic and social benefits to the labour community. as both parties tend to make proposals and counter. Teams have inherent strengths which ultimately lead to organisational success at various levels. Teams and teamwork: Self-managed teams have emerged as the most important formal groups in today's organisations. they begin to view the job and the organisation as their own. Discipline: It is the force that prompts an individual or a group to observe the rules. workers and management. When the relationship between the parties is not cordial. vacations. They enhance employee involvement and have the potential to create positive synergy. Hence the need to look at other important 29 . 6. which are deemed . This has made both parties realise the importance of bargaining for their rights in an atmosphere of 'give and take*. Emerging issues: Effective management of human resources depends on refining HRM practices to changing conditions.

It makes HR records more useful to the management by serving as a source of information. cassettes and films are maintained to have tangible record of what is actually happening in an organization and to formulate appropriate HR policies and program‘s (based on historical records. Stress and counseling: Stress is the psychological and physical reaction to certain life events or situations. actual experience and future trends) from time to time. v. iv. stress results in burn out. procedures and practices to determine the effectiveness of HRM. At an organizational level. International human resource management: International business is important to almost every business today and so firms must increasingly be managed with a clear global focus. Companies. are closely looking at what should be done to promote the physical and mental well being of employees through proper counseling and employee development programmes. This of course. Human resource audits Human resource audit refers to an examination and evaluation of policies. increased absenteeism and increased turnover.issues that can motivate people to give their best in a dynamic and ever-changing environment i. poses many challenges before managers including coordinating production. orientation and training services to help employees adapt to a new and different environment outside their own country 30 . cards. files. Personnel records: Personnel records such as papers. International HRM places greater emphasis on a number of responsibilities and functions such as relocation. Human resources accounting (HRA): It is a measurement of the cost and value of human resources to the organization. Human resources research: It is the process of evaluating the effectiveness of human resource policies and practices and developing more appropriate ones. sales and financial operations on a worldwide basis. therefore. Human resource management is said to be effective if its value and contribution in any organization is more than its cost. iii. Human resource information system: HRIS is an integrated system designed to improve the efficiency with which HR data is compiled. vi. Personnel audit (a) measures the effectiveness of personnel programmes and practices and (b) determines what should or should not be done in future. vii. ii. substance abuse in the form of alcohol or drug use/dependence reduced job satisfaction.

HR systems are people intensive and require a lot of managerial time. It helps managers as well as subordinates to dispose of repetitive problems A large number of corporations have established Human Resources Development Departments.2 Definition of Personnel Policy Personnel policies guide action. "people" or employees can give a good degree of competitive advantage to the company. issues and challenges. accept. requirements and strategies of the corporation and implemented well • The systems are periodically reviewed and aligned and realigned with the business goals of the organisation. HR could become a big liability to corporations. In to-days competitive world.Personnel Policies. Important features of an effective personnel policy can be broadly outlined as: i. the line managers and the top management should synergise with the HR goals and strategies. They serve as a road map for managers on a number of issues such as recruitment (the job for physically challenged only). promotion (performance leads to promotion) and compensation. structure. It summaries past experience in the form of useful guidelines that help managers to speed-up the decision making process. introduced new systems of HRD. and internalize their own role in development • A learning culture is created in the organization • Appropriate HRD systems are identified to suit the needs. They offer the general standards or parametres based on which decisions are reached. Good HD requires the following: • The top management of the organization recognizes the strategic advantage and the critical value addition provided by people • The role of HRD is well carved out • Line managers understand. There are examples of corporations where HRD has taken a driver's seat and has given a lot of benefits. If it is not aligned. To get the best out of HR. Besides this alignment. the skills and styles of HR staff. Policies are general statements that guide thinking and action in decision-making. its strategies. parameters). ii. selection (selection based on merit only). customer etc. • Support HR policies are formulated and implemented 31 . and styles with business and its goals (financial. systems. Procedures and Programmes After the establishment of objectives of personnel management. A good number of CEOs saw a hope in HRD for most of their problems. It is generally derived from the personnel objectives of an organisation. It should be aligned both with the short-term goals and long term strategies. there should be a good alignment of the function. Having a separate or a dedicated HRD Department does not guarantee good HRD. HRD audit is an attempt to assess these alignments and ensure the same. personnel policies are to be formulated. and made structural changes in terms of differentiating the HRD function and integrating it with HR function.

employment position. According to Seybold. identify training and development needs. absenteeism. Obviously. in most cases this is not sufficient. HRD audit is a comprehensive evaluation of the current human resource development strategies. turnover. iv. revise pay scales and benefits from time to time. personnel audit refers to an examination and evaluation of policies. Measurement and evaluation of personnel programmes. 2. HRD audit attempts to find out the future HRD needs of the company after assessing the current HRD activities and inputs available. provide the information about manpower inventory for manpower planning and succession planning. systems. structure. supply the information required by various agencies on the accidents. 32 . and 3. managers cannot function effectively without the information on various areas of personnel and industrial relations. 1998)! iii. In place of informal impressions gathered and summarised through records and reports. procedures and practices to determine the effectiveness of personnel management. etc.• The HRD function is handled by competent people • The styles. strikes. However. belief^ and values of the top management is aligned to promote a good learning and competency building culture • HRD function and the implementation of HRD is periodically reviewed and renewed It is to achieve the last objective HRD audit has come in to existence. a methodology for auditing HRD function and implemented the same in a good number of Indian companies (Rao. styles and skills in the context of the short and long-term business plans of a company. conduct research in personnel and industrial relations areas. vii. Personnel/HR Audit Personnel records and reports provide information regarding the utilization of human resources in an objective way. v. Personnel audit covers basically three things:2 1. In the last decade the authors of this book pioneered in India. a systematic and analytical search is made to find out the effectiveness of personnel management. Determination of what shoulder what should not be done in future. Identification of gap between objectives and results. vi. policies and practices. A critical evaluation of manpower programmes might be required to find out the areas where improvements are needed and to set things in order.

and d. Changing philosophy of management towards human resources.Objectives of Personnel/HR Audit "The basic objective of personnel audit is to know how the various units are functioning and how they have been able to meet the policies and guidelines which were agreed upon. and to assist the rest of the organisation by identifying the gaps between objectives and results. 33 . Types of Personnel Records Personnel records include the following: • Job application and test scores • Job descriptions and job specifications • Interview results • Employment history • Medical reports • Attendance records • Payroll • Employee ratings • Training records • Leave records • Accident and sickness records • Grievances. To review the organisational system. for the end-product of an evaluation should be to formulate plans for corrections of adjustments" (Gray). c. some of the modern organisations have accepted it due to certain compelling reasons: i. To know how various units are functioning and how they have been able to implement the personnel policies. ii. Increasing size of the organisation and personnel in several organisations. To review the personnel system in comparison with organisations and modify them to meat challenges of personnel management. b. human resources subsystem in order to find out the efficiency of the organisation in attracting and retaining human resources. disputes records • Contracts of employment • Records to be kept under various statutes Need for Personnel Audit Though there is no legal obligation to audit personnel policies and practices. To find out the effectiveness of various personnel policies and practices. The objectives of personnel audit are: a.

Reduces human resource costs. industrial relations are also included within the scope of personnel audit. according to Dale Yoder. • Improves the professional image of HR department. forecasting and scheduling to meet organisation and personnel needs. policies. employee mobility. The areas and levels of personnel audit.2 | Personnel Audit . training and development also come within the scope of personnel audit. Finds critical personnel problems. Changing human resources management philosophy and thereby personnel policies and practices throughout the world. • Encourages greater responsibility and professionalization among members of HR Department.Results Level II Programmes & Procedures Level III . the areas of leadership. are fairly exhaustive3 (See Table 27. t a b l e 27. Increasing dependence of the organisation on the human resources system and its effective functioning. v. Scope of Personnel Audit The scope of personnel audit is very wide. Benefits The benefits of a human resource management audit may be summarised thus: • Identifies the contributions of the HR department.Policy 34 . The major areas of personnel audit include programming.2). Increasing strength and influence of trade unions.Areas and Levels Major Areas Levels & Examples of Audit Data Level 1 . • • • • • Classifies the HR departments' duties and responsibilities. programmes.iii. grievances. selection. promotions. iv. The areas of recruitment. It covers areas like personnel philosophy. Ensures timely compliance with legal requirements. careers. performance appraisal. Further. welfare. Stimulates uniformity of personnel policies and practices. practices and personnel results.

Style adapted to changing expectations. 35 . extent of formal. exit interviews. etc. fringe benefits. experiments. Consultative supervision. Research & Innovation: Experiments & theory testing in all areas. etc. training times cost. etc. etc. R&D approach in all Test old & new theory.Planning: Forecasting & scheduling to meet organisation & needs. collective bargaining. In house & out Let cream rise. training. etc. areas. suggestion encourage creativity in plans. careers. publications. etc. performance norms comparative costs. sources. records. promotions Organising: Maintaining structures for co-ordinating. unionmanagement committees. Changes. Job definitions for individuals. Administration: Style of leadership and supervision. collaborating. programmes. layoff. selection. effort. delegation. ensure whole man satisfactions. negotiation. contribution Feedback. Job enlargement. requirement. research reports. unionmanagement cooperation. interest. wage & salary administration. reports. etc. Staffing & Development: Personnel shortages Time bound or supplies. management. Encourage flexibility. morale survey. reduce resistance to change. communicating. Suggestions. labour Defined requirements & turnover etc. network cost/benefit budget. discipline. house organs. reader interest. Motivation & Commitment: Individual & group motivation. task forces. Explicit statement to provide inclusive personnel plans for present & future Recruitment times costs. etc. collective bargaining. etc. grievances. guidance in careers. promotions. etc. Gain high personal identification. etc. effective three-way communication. departments. etc. Productivity. participative involvement. etc. nonhouse training discrimination. organisation.

Examining the variations of different periods and comparing them with similar units and industries in the same region. philosophy. Preparing and submitting a detailed report to the top management and to the managers at appropriate levels for information and necessary action. Comparing the variations of different departments during different periods. The process of personnel audit. frequency distributions and calculating statistical correlations. procedures/ practices). How are they understood by individual employers. Are they consistent with the existing trends towards human resource management and research? 36 .e. programmes. The level and the depth of the investigation should be decided in advance. usually carried out through an attitudinal survey or by interpreting data. How are they communicated to various managers and employers concerned? 4. Various personnel policies. iii. 2. Are they consistent with the managements' organisational philosophy and human resource management philosophy? 6.. procedures and practices can be evaluated by asking various questions of the following type: 1.HR Audit Process The personnel audit should probe much deeper. Drawing trend lines. Identifying indices. What are they? (i. statistical ratios and gross numbers in some cases. supervisors and managers at various levels? 5. indicators. policies. ii. evaluating personnel policies. includes: i. vi. iv. v. Examining the variations in time-frame in comparison with a similar previous corresponding period. practices and concepts comparing with standards and with those of the personnel records of the said organisation and other organisations. How are they established? 3.

Employment Ratios Vacations granted as a percentage of employees eligible. Scrap loss per unit of the organisation. Accident Ratios Frequency of accident rate for the organisation as a whole or by unit. Output in units per employee hour worked for the entire organisational unit. and overtime comparisons by organisational unit as a measure of how well an operation is handling employees. Sales in dollars per employee for the whole company or by organisational unit (business). Compensation paid for accidents per 1. Accidents classified by type of injury to each part of the body. Number of arbitration awards lost. What are the controls that exist for ensuring their effective and uniform application? 8. Accidents by type. tardiness. Number of lost-time accidents. What measures exist to modify them to meet the organisational requirements? Most organisations that employ HR audit examine the employment statistics pertaining to a period— making use of ratios (given below): Effectiveness Ratios Ratio of number of employees to total output in general.7. Maternity leaves granted per 100 employees. Average cost of accident by part of the body involved. Turnover and Absenteeism Ratios Attendance.000 hours worked. Sick-leave days granted as a percentage of labour-days worked. Organisational Labour Relations Ratios Number of grievances filed. Payroll costs by unit per employee grade. 37 . Employee turnover by unit and for the organisation.

It is the experience of the author that group discussions and interviews is a good mechanism of collecting information about the effectiveness of existing systems. Such individual interviews are a must for capturing their thinking about the future plans and opportunities available for the company. race.Educational leaves granted per 100 employees. What do you see as the future growth opportunities and business directions of the company? 38 . religion. sex. national origin. This is because in Asian cultures there is likely to be inhibition on the part of junior employees to freely express their views in the presence of their seniors. If the organization is large. it is quite common to give cross functional representation of employees in the same group. 1. Individual Interviews The auditors normally make it a point to interview the top level management and senior managers individually. Managerial distribution by chronological age. Union leaders. Employment distribution by length of service with organisation. Employment distribution by sex. Employment distribution by chronological age. In addition if the organization is small and is manned by largely professionals an attempt is made to enlarge the coverage and randomly selected representative sample of employees from different levels and different functions could be interviewed. Group interviews are conducted normally for groups of four to eight individuals. Such information is available particularly about the styles and culture through individual interviews. some strategic clients and informal leaders are all interviewed individually. These are described in some detail below. However. Thus a good HRD audit begins with Individual interviews of top management. Personal leaves granted per 100 employees. Also by virtue of occupying strategic positions the top management provides a perspective required for a good HRD audit. it is not feasible to meet everyone individually. Average age of managerial workforce. It is preferable to have employees drawn from same or similar levels. Group Interviews Normally for the audit of companies having thousands of employees. In the individual and group interviews for HRD audit normally the following open ended questions are asked: i. religion. Average age of workforce. Individual interviews also are essential when sensitive matters and sensitive information has to be obtained. race. national origin. Methodology of HRD Audit In order to arrive at answers to the above types of questions the auditors use a number of methods. 2. an attempt is made to conduct group interviews for each function separately to keep the levels homogenous. departmental heads.

training. etc? 3. iv. Even if it does not. This ensures uninterrupted answering of the questionnaire and provides scope for getting more credible data due to the personal explanations 39 . What changes do you suggest to strengthen HRD in your company? ix. In the workshop a large number of participants Ranging from 30 to about 300 could be gathered in a room and could be asked to do the HRD audit. 4. Questionnaire Method TVRLS has developed a comprehensive questionnaire which has to be administered to the executives of a company. quality circles. induction training. viii. it is a potential diagnostic tool and can provide a lot of information to the top management on human processes and help them plan further interventions. The author of this paper found it useful to call groups of respondents selected randomly to a room and explain the objectives and the process of HRD audit and administer the questionnaire then and there itself. do a SWOT analysis and make a presentation. vii. What skills and competencies does the company have which you are proud of? What skills and competencies do you need to run your business or to perform your role more effectively at present? What are the strengths of your HRD function? What are the areas where your HRD function can do better? What is good about your HRD sub-systems like performance appraisal. recruitment policies. The workshop outcomes in the experience of the author have been found to be very good. This questionnaire has over 250 items and requires about 90 minutes to complete. v. performance counseling. HRD departments. Workshop In some cases the individual and group interviews are substituted by large-scale workshops. job rotation. career planning. The HRD audit if conducted through participatory methods in itself may initiate the change process. worker development programmes. Normally in the workshop the participants work in small groups either around various sub-systems of HRD or around different dimensions of HRD. What do you think are the ways in which line managers can perform more development roles.ii. This questionnaire can be administered individually or in a group. etc? What is weak about them? What can be improved? iii. The workshops also can be used focusing specifically on individual HRD systems like performance appraisal. vi.

For example. TVRLS a consulting firm specialising in HRD audit over the last several years have bench marking data from several organisations. competencies. This is essential because employees are not likely to give their best if they do not live in good surroundings. These questionnaires attempt to assess various dimensions of HRD including the competency base of HRD staff. Analysis of Secondary Data Analysis of secondary data can give lots of insight into the HRD assets and liabilities of the company. Such analysis of secondary data can throw up many insights. In such cases there is more work and there are criticisms of the past. analysis of the training attended. Observation In addition to the above the auditors should physically visit the workplace including the plant. Manuals and other Published Literature Published literature of the company including annual reports. These visits and observations are meant to assess the extent to which a congenial and supportive human welfare oriented climate exists in the company. the styles of line managers. it was found that a large number of them did not attend any HRD programme in the last five years. Such an analysis should also pay attention to the costs incurred by the company in terms of maintaining the HRD infrastructure. etc. help in determining the assets and liabilities. school. they do not have good communication and other facilities and their work conditions are poor. HRD Audit has taken time to get popular for these and a variety of other reasons. Analysis of age profiles of the employees. Records. If things have to improve more work needs to be done. The observations can be conducted using a check list of questions. 40 . their health and education are riot taken care of. the canteen.given by the auditors. Hence it may not be always a comfortable feeling to get audit done. etc. 5. When an analysis of the training programmes attended by others was carried out. Normally in the audit the HR function. 7. Once done HRD Audit could realign the firm goals to HRD and could help people to drive business better and also uplift the HRD function. All diagnoses are painful particularly if things have to improve. marked hand-outs. the implementation of various HRD systems etc. in a company that had about 50 HR people only two were found to have the required technical training in HRD area. the hostels. the toilets. Preparation for the Audit The organization has to prepare itself for the audit. analysis of the minutes of the meetings held etc. the hospital. culture and the top management commitment come under scrutiny. personnel manual.. 6. Analysis of Reports. systems. Hence audit requires a lot of courage and boldness on the part of the HR Department to be self critical and open to examination. living colony. new focal points have to be identified and implementation ahs to be stepped up etc. the training rooms. training calendar. and various circulars issued from time to time are also likely to help immensely in assessing the strengths and weaknesses of HRD. The utility of the questionnaire is that it helps in benchmarking. the machinery. A number of other questionnaires have been developed since the time the first comprehensive HRD audit questionnaires were prepared by Rao and Pareek.

shop-floor committee‘s etc. OD interventions if any taken by the organization 12. guidelines Suggestion schemes and other guidelines Training policy guidelines 10. Job-rotation and transfer policies and practices 20. Reward systems—policies and guidelines 16. Communication systems and reports 17. In-house Newsletters and other mechanisms 18. Diagnostic and evaluation studies 15. 9. 13. Small group activities. Personnel Manual 2. 3. 4. The following points give a list of documents required by the auditors before the audit. shop-floor committees and details 22. Succession planning and career planning guidelines and methods 11. 7. 8. 5. Check-list of Documents to be made available by the HRD department for Audit 1. Manpower planning guidelines Recruitment policies Promotion policies Performance appraisal manuals TQM manuals Quality circles. Delegation manuals or guidelines 19. Exit Interview guidelines and data 41 .As preparation for the audit the auditors have to become familiar with the current HRD status. Activities of the HRD department—annual reports etc. 6. Organizational structure of HRD department 21. Training calendar and reports of training activities 14. They do this through examination of various documents relating to the existing systems and processes.

it is essential that job profiles should get linked to the A balanced scorecard provides an overall view of the organization's performance by integrating financial measures along with key performance indicators such as the perspective of customers. especially in the corporate world. Climate surveys. the perspective of customers. Any other documents having implication for HRD strategies 33. Corporate vision. Worker education and training programs 25. Welfare schemes and facilities 26.guidelines 27. Residential colony facilities . This requirement becomes more pronounced in the context of the HR function. It has been realized the world over.23. that is. etc. department or unit-wise and exit interview data 32. 31. that the human assets are the most valuable ones. Age profiles grade-wise and department-wise for assessing retirements etc. To facilitate efficient performance. internal business ] organizational growth. Previous HRD audit reports 29. Documents dealing with facilities offered to employees 24. and corresponding measures for evaluating success in organizations. along with key perform indicators. A balanced scorecard provides a framework for organizations to : the implementation of strategy in an organization by linking the < initiatives. In brief. 42 . it provides an overall view of the organization performance by integrating financial measures. internal business processes. Attrition rates. Organizational structure charts if necessary BALANCED SCORECARD Today it has become essential for all the functional areas to get linked to corporate strategy. It is in this context that the balanced scorecard has 1 formulated. learning and innovation. Other studies undertaken by summer trainees and students 30. culture studies 28.

and market share in target segments. Building a Balanced Scorecard 43 . retention. The construction of an individual organization's balanced is accomplished through a systematic process. sets. The employee growth is measured through employee satisfaction. the perspectives of the customer.Robert Kaplan and David Norton developed the balanced scorecard performance measurement system. Before the organization embarks \ the implementation of a balanced scorecard programmed. To develop an effective balanced scorecard one should keep in mind the organization's vision and decide which strategies will lead to successful goal attainment. and quality. Thus. the process. It evaluates organizational j from various perspectives. and economic value added (EVA). that is. Linking corporate objectives to individual line of business (LOB) and measures 3. The customer's perspective is measured through customer satisfaction. specific targets to be achieved. the learning measures apart from user feedback. The important aspects to be taken care of by organizations while < the balanced scorecard are the objectives. return on < employed (ROCE). measures/parameters for assessment. Linking LOB objectives and measures to critical business The objective of every organization's measurement system is to motivate I employees to successfully implement the business unit's strategy. etc. production. and the measures. The business process perspective includes I throughput. it is < guide the senior management on issues such as the requirement and 1 behind development and the adoption of the balanced scorecard business reality and also the conceptual backdrop. and order fulfillment. employee retention. Defining objectives and levels at the corporate level 2. by building conscience clarity in terms of the translation of the business unit's machines and s into operational objective measures. The financial perspective includes the operating income. These are required for business processes: procurement. and more importantly the in to be undertaken by the organizations. The steps involved process is: 1. The balanced scorecard is a comprehensive view of organizational performance with a focus on vision and strategy. the individual metrics— or vital signs—will emerge from that exercise quite naturally. The balanced scorecard a comprehensive view of organizational performance focusing on vision d strategy The Need for the Scorecard The objective of every organization's measurement system is to motivate all employees to successfully implement the business unit's strategy. once a vision and subsequent strategy have been developed.

Building the business case It is critical to obtain executive support for the balanced scorecard approach to ensure that management support. and clinical experts as well as information technology professionals. Building the business case 2. The business case should also include a preliminary project budget and work plan. 44 . As with any strategic project. Identifying strategies 3. the first step in obtaining this support is to build a business case for implementing a balanced scorecard and data warehouse. Refining the tactical objectives in support of the strategy each of the ten steps is explained in further detail below. Identifying data sources for calculating the measurements 6. resources. and strategic directions are made available. Identifying tactical objectives 4. who should be involved in the design of the balanced scorecard. Creating a data warehouse to supply the data 7. The design team should include financial. The team should be educated in the principles of the balanced scorecard and how a data warehouse can provide the required performance data. Creating the balanced scorecard report 9. and to use their expertise to define the purposes and benefits of the project for documentation in the business case. Managing the strategy using the balanced scorecard 10. operational. Identifying performance measurements 5.The balanced scorecard framework and its information foundation can be created using the following ten steps: 1. The first step is to identify the experts and the key stakeholders. Selecting information technology to create the data warehouse 8.

45 . performance measurement. The required data must be extracted from the various internal and external information systems and data sources. internal process. Demographics. the data values standardized. grants management. and quality-of-care measurements are not usually captured by traditional healthcare ' information systems and need to be purchased from a consulting firm. and the ultimate achievement of tactical objectives. The team should devise outcome and driver performance measurements that are effective in measuring the objective and will not require expensive or unfeasible data-capture processes. obtained through purchased software. The measurements will identify trends in the desired direction in the cause-and-effect relationships between drivers. market research. Because the goal of the balanced scorecard is to create views of the organization beyond the financial aspect. increasing supply-chain efficiency). insurance type. DRG) are generally obtained from a patient billing or the medical record system. that is. The many disparate information sources cited above need to be brought together. However. a healthcare organization's business case may include goal of transforming its cardiology product line into a centre of excellence and marketing it as such to patients. payroll. and fixed-asset systems. and invalid data removed or corrected. national performance indicators. Identifying performance measurements For each new and existing tactical objective identified. and competitor market share are also required. and organized into a data warehouse designed specifically for the analytical needs of performance measurement. ICD-9. and clinical data based on coding (for example. external benchmarks. Demographic. data regarding clinical care. and budgeting systems. and insurance carriers. The existence of the required information in these numerous and disparate systems indicates the need for integrating it into a single source of information. performance outcomes. or created using custom data collection methods. Identifying tactical objectives The design team should then determine specific tactical objectives for these strategies using the four balanced scorecard! perspectives on performance: financial. cost accounting. Creating the data warehouse A data warehouse is the information foundation for a specific analytical subject area—in this case. Some strategies will require that unique tactical objectives be developed. severity and risk indexing. the balanced-scorecard framework should including existing corporate tactical objectives that can help achieve almost any strategy (for example. For example. The process and information technology to affect the extraction. satisfaction survey results. accounts payable. CPT. the team should then determine outcome and driver measurements. physicians. volume. a data warehouse.Identifying strategies The team should then identify specific bi strategies that will achieve the purposes and benefits stated in the bi case. and the remaining data often can be obtained from human resources. and hematite resource. Most of the financial measurements can be derived from the general ledger. corrected. The disparate data must then be integrated. Identifying data sources Much of the data needed to calculate the performance measurements may be obtained through the organization's existing information systems. customer.

The group should determine the functionality needed and an acceptable price range. It is also necessary to evaluate and purchase decision support software. then select and purchase the appropriate software. administrative and automated processes should be put into place so that the balanced scorecard can be updated periodically with more timely data. core customer measures. Creating the balanced scorecard The installation of hardware and software and the design for the balanced scorecard then need to be accomplished. For most uses. and new analysis capabilities. the team can work with the clinical staff to identify and rectify the root cause of this problem. it is essential to define appropriate measurement architecture with the following steps: • selection of an appropriate organizational unit • identification of SBU/Corporate linkages • build confidence on strategic objectives through interviews • synthesize the feedback from interviews and make it available to decision makers and the top management • hold an executive workshop to assign responsibility to individual executives • conduct sub-group meetings for dissemination down the line • select and design measures in aspects relating to core financial measures. which includes the spectrum of tools that enables the creation and analysis of balanced scorecard reports. clinical. the organization may choose to create decision-support capabilities using generic development tools. For example.integration. new measurements. A growing selection of software is designed specifically for performance measurement analysis. To achieve higher levels of flexibility and customization. the balanced scorecard requires data-extraction and measurement calculation routines. Refining and reusing After evaluating its first attempt at the balanced scorecard approach and refining its methodology where necessary. The data are then loaded into the balancedscorecard data warehouse. In the process of building a balanced scorecard. Finally. correction. core learning and growth measures 46 . These applications typically combine interactive data exploration capabilities with scorecard reports and 'dashboards' that graphically depict the performance measurements. The prepared data should then be loaded into the performance measurement data warehouse. Managing the strategy With the measurements shown on the balanced scorecard. if the percentage of population on the congestive heart failure critical pathway is decreasing. and operational processes from the design team should evaluate the data warehousing software on the market. the team can add new corporate strategies to the balanced scorecard. and transformation of data are best supplied by information technology experts. the organization can respond to those objectives that have not been achieved and reinforce those that have been achieved. Selecting information technology A work group made up of information technology professionals and experts in financial.

we have seen little improvement in this over the past eight years". creativity. which was originally meant to be an accurate performance measurement system. It involves all the HRD staff and a large number of managers in the audit process and makes them conscious of the areas needing improvements. However it denies and opportunity for the 47 .• build the implementation plan after discussion. 1. Norton says that he has worked with about 200 companies to design Balanced score cards. The authors remark in the early part of this chapter that if the HR function cannot show that it adds value. Increasingly this is likely to gain movement and be come a good self renewal tool for the HR function. These designs always start with the same question—"What is your strategy" Norton says that what struck him most is—while most companies have awareness of good financial strategies and operational strategies. It risks being outsourced. author of Balanced Score Card. It could be further refined as an OD tool. they have extremely limited understanding of strategies for developing human capital (HRD strategies) "There is little consensus. was subsequently used by researchers for achieving the following: Strategy clarification A balanced scorecard helps in the conversion of strategic objectives at organizational levels into quantifiable measures for the members of the management and in the process helps in the development of consensus among the management team. makes some very interesting comments. The interview methodology. HRD audit is not intended to be originally an OD tool. Planning and aligning strategic initiatives The organizational objectives are aligned with the department and group/team levels seamlessly across the organization. Communication of strategic objectives A balanced scorecard can be utilized for converting the macro objectives into operational objectives and to communicate them to the employees across the organization. and no real framework for thinking about this subject. the audit methodology insisting on starting and ending with top management involvement all have high potential for initiating change processes. Worse. with time frame for each activity Balanced Scorecard—Strategic Initiative The balanced scorecard. its comprehensiveness. HRD audit and HRD score card of TVRLS precisely aims at promoting what the firms lack in their awareness of HRD and its value addition to firm's success. By virtue of its diagnostic and participative methodology it seems to work as a change management tool. In the foreword David Norton. The authors argue that there is nothing wrong being outsourced as it saves costs for the firm. HRD audit is needed for realigning and rejuvenating the HR function in any company. Based on the feedback they evolve or modify the strategy for its successful implementation through the double-loop learning. Learning from feedback The management and the other members obtain feedback on implementation of strategy vis-a-vis the plan.

Can be leveraged though control. 2. investments produce known returns. dynamic and short shelf life when not sued. Similarly focusing on making Sears a fun place to shop it became a compelling place to shop. Part of the balance sheet. managed with scarce mentality. Easily quantified. they are busy innovating 4. appreciate with purposeful use. • Intangible assets are invisible. Can be stored and accumulated. For example support for ideas and innovations helped Sears establish as a compelling place to work. leveraged through control. performance management etc. Some of the points made by the authors in this section of the book are summarised below: • Intangible assets generate tangible benefits • Managing intangible assets requires different skill sets than managing tangible assets. 48 . They created a Sears University and changed their recruitment. capital replied: This is business and not HR". assessment is based on assumptions. As a result firms have lost an opportunity build intellectual capital. The authors argue that the differences in market value of any company are largely reflections of the nature of intellectual it has. • Tangible assets are readily visible. When Sears was incurring losses in billions in early nineties its reorganization involved making it a compelling place to shop. easily measurable. That is how in the past HR is not seen as a part of the strategy.company to utilize its human capital and runs the risk of wasting potential of a function. To make it a compelling place to shop they had to make it a compelling place to work. 5. has multiple applications without value reduction. HR's emerging strategic potential hinges on the increasingly central role played by intangible assets and intellectual capital in today's economy. 3. effective measurement systems and monitoring they have been able to bring a big turn around in the company. Difficult to quantify. and aligned them with strategy. The team identified behavioral objectives and competencies needed by employees to accomplish these goals. best managed with abundance mentality. Through an effective implementation of the vision. They have innovative HR systems but they are not perceived as linked to business. The authors illustrate with an example of how a CEO of a company when asked how his HR is helping him build the market. HR people have not helped in recognizing this. is easily duplicated. best leveraged through alignment. job design. They developed objective measures for each of the three compelling. The Sears story quoted by the authors illustrates how HR if aligned with strategy will boost the performance of a company. When you take the examples of two firms one having double the market value of the other most often the explanation is to be found in the intellectual capital including the firm ahs created. not traced through accounting.

49 . (ii) the system and (iii) the employee behaviors • The authors point out also the two separate HRMs: The Technical HRM which deals with the delivery of HR basics such as recruitment. They particularly were deficient in translating the firms strategy into operational and HR goals and subsequently implement these. and the Strategic HRM which includes the those services that support the implementation of the firm's strategy • In a study of 300 firms Huselid and others have found that the technical proficiency was 35% higher than the strategic proficiency of HR professionals. Financial analysts have begun to therefore look for such assets. compensation etc.• In the US the ratio of the market value of the firms have doubled than the book value based on intangible assets. • It is here the HR function can make the lives easy by demonstrating the value of intangible assets. Measurement of intangible assets will perhaps provide and answers to linking HR with strategy • The authors list the following as some of the intangible assets listed or used by the financial analysts • Execution of corporate strategy (Execution ability) • Management credibility • Quality of corporate strategy • Innovation • Ability to attract and retain talented people • Market share • Management expertise • Alignment of compensation with share holders • Research leadership • If the current measures cannot give the HR professionals the measurement tools they need. they have to develop their won ways of demonstrating their contributions to firm performance • The first step is to discard the accounting mentality that treats HR as a cost center and minimizing the costs as a primary indicator of success • The architecture of HR consists of (i) the function.

retain and motivate high performance employees In short for HR to create value.• The authors of this book go on to advocate what they call as the High Performance Work System (HPWS) in the book and the entire book of HR Score Card is based on this approach. The following are the characteristic of high performing organizations as compared to the low performing organizations: 50 . The chapter concludes by pointing out that the HR practices of high performing organizations differ substantially from those of the low performing organizations. • In HPWS each element of the HR system is designed to enhance the overall quality of the human capital throughout the organization. • HPWS does the following: • Links selection an/l promotion decisions to validated competency models • Develops strategies that provide timely and effective support for the skills demanded by the firm's strategy implementation • Enacts compensation and performance management policies that attract. needs to structure each of its HR systems Ina way that relentlessly emphasizes supports and reinforces a high performance workforce.

HR audit also detect lapses in processes and identify reasons for the same. Another important problem of this small eighteen member company was with their system leaves. AN HR audit compares the results of the implementation to the preset targets. A healthy HR function is as important to an organization as mental well-being for a human being. confirmation letter etc. curriculum vitae. Deputy General Manager. appointment letter. The very first introduction of the project was given by Mr. Every company plans certain processes and systems.Research Study and Analysis A human resource audit is like deboning a fish. These documents included Age Proof certificate. Premankur Bhattacharya. The project covered in the report was focussed on a Human Resource Audit at Kaizen Leisure and Holidays. Human Resource. and sets up targets for such systems. most of the personnel documents of the employees were missing. The research work conducted first identified the reasons behind the requirement of these data and then the reasons why the same was missing 51 . Peerless Smart Financial Solutions. the travelling agency of Peerless. A HR audit provides an organization with a method of getting a clear picture of the overall status of an organization and also evaluates whether certain systems are yielding the desired results. Even passport size photographs of all the employees were not present. As the company was originated as Minnie Pan Travels and then taken over by Peerless and renamed as Kaizen Leisure and Holidays.

Documents Studied Bio-Data The bio-data contains all the officially required information of a candidate and is a vital document. which is also a vital document. It also contains the expected date of joining of the candidate. But another important thing is the photograph. 52 . the probationary period is extended. After the candidate joins. Confirmation letter is achieved after the satisfactory completion of the probationary period which depends upon organization to organization. As far as Kaizen Leisure and Holiday is concerned. It is a formal agreement in writing for the terms of employment between the employee and organization. If the service of the employee is not found satisfactory. It is the confirmation that the employee is permanent now and not temporary. and after completion of the probationary period. he/she gets the Confirmation Letter. Some organizations follow six months of probationary period. which is normally presented along with the bio data. Appointment Letter Appointment letter serves as a proof that one is selected to work in the organization. It is the confirmation that the employee has become permanent in the organization. It serves as a physical identification for the employee. The retirement age is also usually mentioned in the appointment letter. Confirmation Letter Confirmation Letter is given by the company itself. A proper bio data is always required when one applies for a new organization. and thus the employee gets the confirmation letter only after the proper completion of the same. The importance of appointment letter lies in the fact that it contains all the rules and regulations of the organization that the employee is supposed to follow. they follow probationary period of six months. Joining Letter Joining letter is the one that is given by the candidate to the organization confirming his/her joining and the date of joining.

This type of Leave must be granted with prior approval of the appropriate sanctioning authority or Departmental Head and should be processed through HR department so that the Leave record of each employee can be maintained and updated. Privilege Leaves: It is affixed amount of leave that a person can take within a year. as well as the date of implementation. informing about the changes in the payment. it is accompanied by the promotion letter. But accumulation and encashment also have some rules associated with it. Processes and Systems Studied Leave Systems Leaves come as a breath of refreshing air to the hectic daily schedule of an employee. Casual Leaves: They can be considered as accidental leaves. Designation in an organization is important because it helps in distinguishing different posts and different roles of different employees in a multi-tasking organization. both for the employee and the employer. It cannot be increased or decreased. It also acts as a record keeping for future reference. Pay fixation Letter Pay fixation Letter is yet another important letter provided by the organization to its employees. As there was a problem with this in Kaizen Leisure and Holidays. the HR audit was conducted to rectify it and put the company‘s HR function in a proper line. There are different kinds of leaves for different organizations and different rules and regulations pertaining to them also. It can be accumulated as well as encashed after a year. It is the official letter given to the employee mainly to inform him about the change of his position in the organization. In most of the cases. the periodic increase in payment is informed by the pay fixation letter. even if not so. When any leave is required urgently without any prior preparation.Promotion Letter Promotion Letter is also an important aspect of an organization. It is also looked as a reward for an employee loyal service to the company. The promotion letter includes the present designation and the raised designation. 53 . Casual Leave is encouraged. Mainly it is done for pay increment. It acts as an enthusiasm booster for the employee – a formal record of a realized reward. It is fixed since a person joins an organization. All the personnel files and folders of the employees of the company must be well maintained with each and every important document.

Performance Appraisal is the process by which the job performance of the employees is evaluated. Normally. During this evaluation. They may be accumulated and en-cashed based on the organization. a medical certificate is required for granting of these leaves. promotion or any disciplinary action should be taken or not. It is very important that all the rules and regulations of the organization be uniform for each and every employee. quantity. performance appraisal is done keeping in mind few objectives. They can‘t be accumulated nor can they be encashed. An unequal leave system at the same designation creates dissatisfaction among employees and proves as a de-motivational factor. This leave rule varies from one organization to another.But notice should be given if it is taken for more than one day. to encourage or discourage prior employee behaviour  Document criteria used to allocate organizational reward  Organizational diagnosis and development  Acts as a bridge of communication between staffs and administration  Validate selection techniques and human resource policies to meet federal equal employment opportunity requirements There are several processes of performance appraisal as indicated below Scalar System: One of the common approaches is the numerical or scalar rating system. managers score the employees against a number of objectives or attributes. They are regular reviews of the employee performance in the organizations. Following can be few aims of performance appraisal:  Giving feedback regarding the performance of the employee  Identifying when and where there is a need of training for the employee  Salary increase. Here. Sick Leaves: Sick Leave is taken when the employee is physically not fit. specially rules regarding leaves. there accumulation and encashment. Performance Appraisal Performance Appraisal is a part of career development. Only then the employees will feel being treated equally by the company. That is why sometimes it is called ‗Employee Appraisal‘. 54 . cost and item are generally kept in mind. certain terms like quality. Generally.

they make it difficult for a manager to provide feedback that can cause 1. But according to the scientific literature. customers. There are two major reasons for this: Because trait based systems are by definition based on personality traits. subordinates.360º Performance Appraisal: There is another method where assessment is done by managers. This method is known as 360 degree performance appraisal. peers. An advantage of this method is that it creates a good communication pattern. a person who lacks integrity may stop lying to a 55 . Positive change in employee performance. and while an employee can change a specific behaviour they cannot change their personality. For example. even self assessment is included. That system is known as Trait Based System. it is not correct to access employees by these two factors. The most popular Performance Appraisal methods are considered to be the following:  Management by objectives  360 degree appraisal  Behavioural observation scale  Behaviourally anchored ratting scale There is another system which is highly based on integrity and conscientiousness. This is caused by the fact that personality dimensions are for the most part static. and is commonly used by business.

Now. scheduled or unscheduled. those should be made right at the very beginning. according to which the employees will be judged. Whatever be the method of performance appraisal. If any changes are to be made. easily understandable and in measurable terms. The point is this review. it is also important that the standards are clear to the evaluators or the appraisers. As knowing about the standards about the organization is important for the employees. The standards set should be clear. The very first thing is to set up a standard. documented or undocumented. it is the responsibility of the administration to declare and let every employee know about the standards being set.manager because they have been caught. what was their contribution to the organization keeping in view the goals and objectives. And these changes are done mainly by the feedback from the employers to the evaluators. but they still have low integrity and are likely to lie again when the threat of being caught is gone. because they are vague. once the standards of the organization are set. are more easily influenced by office politics. These systems are also more likely to leave a company open to discrimination claims because a manager can make biased decisions without having to back them up with specific behavioural information. rather than basing scores on specific behaviours employees should/should not be engaging in. It may be informal or formal. By this process. Trait Based Systems. subordinates can use to improve their performance. This will make them understand their roles properly and they will be clear of the fact that what the organization exactly wants them to do. The vagueness of these instruments allows managers to fill them out based on who they want to/feel should get a raise. Often a subordinate's first performance appraisal may occur at the end of a probationary period. causing them to be less reliable as a source of information on an employee's true performance. have the potential to be the most meaningful opportunities managers have to provide information. 2. the performance appraisal will not be effective. employees can be judged as successful or unsuccessful or accordingly. The entire performance appraisal process can be put forward by the following flow diagram: 56 . In case the standardization is not proper. as well as those to follow. anywhere from 30 to 90 days after their start date. the basic process always remains the same.

it should 57 . the problems. During this discussion. It includes recalling. The main aim is problem solving and consensus. It should be kept in mind that whatever be the feedback. the results and the possible solutions are discussed. The major focus of this discussion is the proper communication and listening. This comparison tells about the deviation in the employees work from the desired work. or the actual performance can be less than the desired performance. In this stage. resulting in negative result. This can again be of two types. evaluating and analysis of data related to the employees‘ performance. Now. The actual performance can be better than the standardized performance. It is measured by the actual task the employee has performed in a given period of time. providing a positive result. the next step is to compare the actual performance with the desired performance or the standardized performance. The result of the appraisal is communicated to the employees and then discussed as one to one basis. choosing the correct measuring techniques is very important. It is a continuous process and done by monitoring the performances throughout.Flowchart of Performance Appraisal Process The toughest part of performance appraisal is measuring the actual performance of the employee. It should also be kept in mind that personal biasness should not create any hindrance to the process.

so that the employee performs better the next time. total employees are divided into two groups: For Executives or Supervisors. or the related HR decisions like rewards. transfers etc. The last step of the process is to take decisions which can be taken either to improve the performance of the employees. 6. At the very onset. The appraisee needs to answer and rate them according to their thinking. 2. Kaizen Leisure and Holidays have two different employee appraisal methods. a one to one interview takes place with the appraisal: Questionnaire 1. 3. Similarly. take the required corrective actions. What were your 3 main goals for the period under review? To what extend were you able to achieve the above? What constraints did you encounter in achieving your goals? How can your manager assist you in achieving your goal? Do you want additional responsibility at this point in time? After this questionnaire. Lists areas of major accountability. the rating method is done in the following questions: 58 . demotions. At first a form is filled up by the appraisee. the method that is followed is Questionnaire and Rating Method. That includes few questions and few ratings. 5. promotions. The man purpose of the meeting should be to discuss the problems and find out the practical and effective solutions. the studied organization. Performance Appraisal at Kaizen Leisure and Holidays Different organizations follow different methods of Performance Appraisal. And after submission of it.e. 4. i.always be given with a positive attitude because this affects the future performance of the employees.

Productivity 3.Attitude and co-operation 16. Revenue enhancement 5.Initiative 14. 10. The pointing is done by 15. Subordinate handling 10. 5. The pointing is done in the following questions: 59 . Then the last question that is asked is whether they are keen to take any more responsibility. Cost control 6.Communication skill 11. Then after that. Achieving given targets 4. Decision making and judgment 7. As far as the sub – staff appraisal is concerned.Self-motivation 13.Team work 12.Dependability And the appraiser rates themselves in the above criteria as A. the appraisee has to answer in front of the appraisal committee. Client handling 9. Problem solving ability 8. the appraiser rates or points the appraisee in the appraisal form. and -5.1. This method of performance appraisal is known as Pointing Method. Job knowledge / professional competence 2.Desire for responsibility 15. B or C.

5. 0. -5] 3. -5] 2. 5. Discipline 1. -5] 60 . (b) You sometimes leave early / report late but with prior permission. Punctuality (a) You are consistently found present at the work place as per duty schedule.90% (d) Below 80% [15. (d) Poor grooming standards. [15. however need to improve on _______________ (c) You are well groomed. Attendance During this period your attendance has been (a) Over 95% (b) 90% . (b) You are satisfactorily groomed. _____________ and _________________. Grooming (a) You are consistently well groomed as per grooming standards communicated.95% (c) 80% . 10. 10. 5. require improvement in _______________. (c) You sometimes leave early / report late but without prior permission.I. (d) You consistently report late to / leave early from the work place. [10.

10. need to be guided / prodded. -5] 61 . Attitude 1. [20. Skill (a) You are quick and efficient in performing specialized and routine tasks. 5. [10. Quality of results produced (a) You consistently produce accurate. ignorant of deadlines. 0. (c) Your work is usually acceptable. Knowledge (a) Your job knowledge exceeds expectations. 5. (c) You complete assigned tasks. (b) You occasionally take initiative and show interest I performing new tasks. requires occasional supervision and reminders on deadlines. -5] III. 10. (d) You are slipshod in work. Initiative (a) You are self-starter. (d) You feel burdened with tasks. (b) You have adequate job knowledge. (b) You are efficient in performing most specialized and routine tasks need to improve speed. -5] 2. needs improvement in all major areas. work often requires redoings. (c) You have a fair amount of knowledge. [10. always adhere to deadlines. eager to perform tasks and take on new responsibility. require specific inputs in _______________. wait for new tasks to be ‗handed down‘. -5] 3. (d) Your job knowledge is inadequate. [20. through neat work. 5. 0. 5.II. Technological 1. (d) You need extensive inputs and practice in performing specialized tasks. (b) You usually meet prescribed standards and deadlines in work. (c) You are particularly need to improve skills in ___________________.

0. 10. 5. 5. 10. (b) You co-operate all times but lack in communication skills. (c) You are self-motivated but are unable to generate group effort. are willing to accept different points of views without comprising on quality and quantity of the job. (b) You are fairly adapt at getting work done but require some amount of guidance. (d) You are defiant. (b) You keep good schedule of work / stick to workplace quality and time criteria. 10. 62 . (c) You are willing to co-operate as long as personal view points are not challenged. [15. Attitude towards seniors (a) You show respect and feel accountable towards seniors. (c) You need reminding from time to time. Leadership (a) You accept responsibility. (d) You co-operate grudgingly. (d) You have low ability to accomplish results through people. -5] 4. -5] 6.-5] 3.2. [15. duties and responsibilities. Team Work (a) You co-operate and co-ordinate well with the team. [15. insubordinate and indifferent towards seniors. quarrel and are argumentative. -5] 5. judgment and resourcefulness in getting tasks accomplished consistently. 5. Commitment to work (a) You are conscientious in your approach to work. waste time and leave the place of work at intervals. Commitment to training (a) You show keen interest in learning and apply well. (c) You show lack of respect towards your seniors and their authority. eager to improve. 5. (d) You are indifferent. display potential. knowledge attained on a continuous basis. [10. (b) You show respect but sometimes tend to question their authority unreasonable.

[15. [15. (d) You are not concerned about costs. 10. (d) You are negligent in following safety precautions. Safety consciousness (a) You take initiative with colleagues and team in adopting consistent and regular safety precautions. At the end.(b) You are keen on self-development but application in operations is limited. 10. -5] 8. 5. the percentage is calculated and the employee with higher percentage gets the higher opportunity for reward or rather promotions. (b) You personally adopt consistent and regular safety precautions. 63 . Cost consciousness (a) You take initiative in monitoring and reducing costs in table allotted. (c) You require supervision to ensure adherence to safety precautions. [15. 10. (c) You require guidance and control in cost consciousness. (b) You show a fair degree of cost consciousness only in tasks allotted. -5] Then the total score is counted and compared with 200. 5. (c) You are eager to learn but are not self-motivated. (d) You show little interest in training and increasing knowledge. -5] 7. 5.

 When employees know there will be regularly scheduled evaluations. areas in which one must improve.  Employees need to know when their job duties are being fulfilled and when there are issues with their work performance.Importance of Performance Appraisals Performance appraisals have a manifold importance. and educational courses that must be completed.  It assures an opportunity for constant rise in salary and promotion for the desired candidates  The greed for rewards results to an outstanding performance in many  It shows the proper and efficient working of the human resource department.  During a performance appraisal review. 64 . This can include identifying skills that must be acquired. employee appraisals provide the opportunity for managers to explain organizational goals and the ways in which employees can participate in the achievement of those goals.  Performance appraisals allow employees and supervisors to discuss goals that must be met to advance within the company. a supervisor and an employee discuss the employee's strengths and weaknesses. they realize that they are accountable for their job performance. This gives the employee individual face time with the supervisor and a chance to address personal concerns. Managers should schedule this communication on a regular basis. Some of the importances of it are:  It acts as a performance boost to the employees.  Besides communicating employees' individual goals.

Any further queries about the topic or any doubt about the progress of the project was always welcomed and sorted out by the faculty members. license. present and permanent address. marital status. Then a face to face interview with the Senior Manager Accounts of Kaizen Leisure and Holidays. as because theoretical background is important for any practical work. peerless. Secondary Research The most important tool of the secondary research for this project was the personnel files and data of the company. references. Bhattacharya himself. It was the first task to collect all the required information from all the employees. After the application blank is filled up. Application Blank include name. Mr. Interviews with different employees of the company like Ms.com. post.co. Amna Saigal helped to understand the problems and the drawbacks better. only one candidate had the complete documents arranged properly. Details about the project and the topic were also gathered from different websites like google.Research Methodology Primary Research The first major queries were answered and explained by Mr. etc. Now. That is why they were provided with the application blank. hobbies. Different books provided a lot of knowledge about the topic and many references. A major role as the secondary data supplier was played by the library. Observation The very first observation is that. educational qualification. other qualification and training details. application blank is a form where all the required information is supposed to be filled up.in etc. Atish Adhikary helped to clear most of the doubts. date of birth. Kaizen Leisure and Holidays provided all the personnel files and details of each and every employee of the company. father‘s or husband‘s name. telephone number. a remarkable change in the data collection was seen. It was to be kept in mind that only secondary and higher secondary age 65 . place of birth.

) of many is not mentioned yet. not passport or license photocopy or anything else. The situation is charted as follows: The Privileged Leave (P. But those P. Before the audit has been done. the leaves scenario of Kaizen Leisure and Holidays is fully disturbed. as far as leaves are concerned. the following observation is made: After the audit.L. the observation turned as the following: Now. when all the application blank is submitted by all the employees. it is mentioned as 30 days a year. 66 . is mentioned. L.proof documents were considered as age proofs. The following bar diagrams will brief the findings.

RECOMMENDATION 1) If PL 60 days and Sl 30 days in a year is taken as a standard for leave accumulation. flowing employees need certain amount of adjustment as per leave deduction. Mithun Kanti Majumder Debabrata Sarkar Mahendra P. Jadunath Puhan Manash Roy Chowdhury Debabrata Sarkar Mahendra P. 2 employees were given 180 days during their retirement which was subject to approval from higher authority. Sudipto Ghosh – PL 180 days SL 120 days. Payel Mukherjee – PL 240 days SL 150 days. Singh Swpan Kumar Ghosh Mahadeb Das Proloy Kumar Mukherjee Susanta Dey Srimanta Bag Only because of the lack of proper mention leave encashment. Mithu Das – PL 180 days SL 120 days. Proper mention of leave accumulation for the following employees is required. a) b) c) d) 2) Mithun Kanti Majumder .PL 180 days SL 120 days. 67 . Singh Swapan Kumar Ghosh Mahadeb Das Proloy Kumar Mukherjee Dilip Kumar Bhagat Susanta Dey Srimanta Bag a) b) c) d) e) f) g) h) i) j) 3) expect for 8 employees whose leave encashment is mentioned as 50% once in a year provided they have taken 5 days of Pl for the flowing employees it is still to be mentioned a) b) c) d) e) f) g) h) i) Jadunath Puhan.

where the appraisee is answerable to all the comments of the form. 5. Rating 1. a) Questionnaire and rating method is used for the executive and the supervisor level. 13. Team work. Subordinate handling. Cost control. Problem solving ability. 10. Following are few of the things that comes out with this appraisal practice. 2. whose retirement age is mentioned as 58 days for the following employees it is still to be mentioned. A form is filled up by the appraisee and then a one to one interview taken as place with the appraiser. Job knowledge / professional competence Productivity Achieving given targets.4) Except 3 employees. Revenue enhancement. 11. Self motivation. 4. 7. Mithun Kanti Majumder Manash Roy Chowdhury Debabrata Sarkar Mahendra P. Decision making and judgment. Singh Swpan Kumar Ghosh Mahadeb Das Proloy Kumar Mukherjee Payel Mukherjee Amna Saigal Sudipta Ghosh Dilip Kumar Bhagat Susanta Dey Mithu Das 5) As per as the performance appraisal is concern it is divided into two parts. 12. a) b) c) d) e) f) g) h) i) j) k) l) m) n) Jadunath Puhan. 6. Initiative 68 . 9. 3. Communication skill. 8. Client handling.

Then a one to one interview takes place where the appraiser is answerable to his comments in the performance appraisal form. 5. You consistently report late to leave early from the work place. POINTING METHOD I) a) Discipline Attendance During this period your attendance has been: i) over 95% ii) 90% . 16. Questionnaire 1. Dependability. The appraisal (Mr. Desire for responsibility. 2. Atish Adhikari filled the form with the concern of the appraisee. You sometimes leave early / report late but with prior permission You sometimes leave early/report take but without prior permission. 15.14. 4. Attitude and co-operation. c) Grooming 69 . 3. Accountability.90% iv) Below 80% b) Punctuality i) ii) iii) iv) your are consistently found present at the work place as per duty schedule.95% iii) 80% . What were your 3 main for the period under review? To what extent were you able to achieve the above? What constraints did you encounter in achieving your goals? How can your manager assist you in achieving your goals? b) The pointing method is applicable for the performance appraisal of the sub staff.

wait for new tasks to be handed down. iv) Your job knowledge is inadequate needs improvement in all major areas. You usually meet prescribed standards and deadlines in work. You are slipshod in work. iii) You have a fair amount of knowledge require specific inputs in.. require improvement in. b) Skill i) You are quick and efficient in performing specialized and routine tasks. however need to improve on. 70 . iii) You need extensive inputs and practise in performing specialized tasks. You are well groomed. III) Attitude a) Initiative i) ii) iii) you are self starter. c) Quality of Results produced i) ii) iii) iv) You consistently produce accurate through and neat work. You occasionally take initiative and show interest in performing new tasks. ignorant of deadlines work often requires redoing. requires accessional supervision and reminders on deadlines.i) ii) iii) iv) you are consistently well groomed as per grooming as standard You are satisfactory groomed. ii) You have adequate jobs knowledge. II) Technical a) Knowledge i) your job knowledge exceeds expectations. Poor grooming standards. ii) You are efficient in performing most specialized and routine tasks need to improve speed. You complete assigned tasks. Your work is usually acceptable. eager to perform tasks and take on new responsibilities. always adhere to deadlines.

waste time and leave the place of work at intervals. iv) You co-`operative grudgingly. ii) You show respect but sometimes tend to question their authority. display potentials. insubordinate and indifferent towards instructions from from senior. ii) you keep good schedule of work / stick to work place quality and time criteria. iii) you are self motivated but one unable to generate group effort. quarrel and one argumentative. ii) You co-operate at all times but lake in communication skills. d) Leadership i) you accept responsibility. b) Team Work i) you co-operate and co-ordinate well with the team are willing to accept different points of view without comprising on quality and quality of the job. iii) you show luck of respect towards yours seniors and their authority. iii) you need reminding from time to time. duties and responsibilities. ii) You are fairly adept at getting work done but require some amount of guidance. c) Attitude towards senior i) you show respect and feel accountable towards seniors. f) Commitment to training 71 . indecent and resourcefully in getting tasks accomplished. e) Commitment to work i) you are conscientious in your approach to work. iii) you are willing to co-operate as long as personal view points are not challenged. iv) you one defiant. iv) You have low ability to accomplish results through people. v) You are indifferent.iv) You feel burdened with tasks. consistently. need to be guided/prodded. eager to improve.

g) Cost consciousness i) ii) iii) iv) you take initiative in monitoring and reducing costs intasks allotted. you are not concerned about costs. but application in operation is limited. knowledge attained on a continuous basis.i) you show keen interest in learning and apply well. iii) you are eager to learn but are not self motivated. 72 . You require guidance and control in cost consciousness. h) Safety consciousness v) ii) e) vi) You take initiative with collegues and team in adopting consistent and regular safety precautions You personally adopt consistent and regular safety. you show a fair degree of cost consciousness only in tasks allotted. ii) you are keen on self development. iv) You show little interest in training and increasing knowledge. You require supervision to ensure adherence to safety precautions. You are negligent in following safety precautions.

10) 22. 9) 100% pay fixation letter is present.67% of qualification certificate is present. 1) 94. 8) As per of the promotion is considered 38.11% of employees is mentioned to take a maximum of 3 days 73 . 5) 16.89% CV is present.67% are still under their probationary period. 11.44% of employees have mentioned leave of 30 days of PL in a year 55. 2) 100% Photograph are present. 83.56% of employees are having 10days of CL in a year among which 11. 6) 94.89% of employee got promoted under kaizen among which 22.HUMAN RESOURCE REPORT The recent kaizen report depicts the following.22% of employees have their promotion letter along with their pay fixation letter. 12) 88.44% date of birth is mentioned.67% employees have their confirmation letter where as another 16. 4) 66. 3) 50% school certificate of employees are present.67% employees are not applicable.44% application blank have been submitted till date.23% joining letter is present.11% employees are under deputation and 16.78% of employees is there. 13) 44.67% has their written retirement age mentioned. 11) 16.33% date of joining is mentioned. 7) Appointment letter of 77.

14) As per leave accumulation is concern 22.44% of employees are having their mentioned leave encashment as 50% once in year provided PL of 5 days are taken.67% have 240days of PL and 50 days of SL in a year and the other 5.of CL at a time. 44.22% of employees have 60 days of PL and 30 days of SL in a year. 15) 44. 16.44% of employees are having their SL as 15 days a year. 74 .56% of employees have 30 days of PL and 180 days of SL.

in 75 .P. V.S.peerless. Memoria 4.co.Bibliography 1. Aswathapa 3. RAO 2. www.

Annexure : 76 .

77 .

78 .

79 .

80 .

81 .

82 .

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.