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)

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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 : ________________________

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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

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

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

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

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.

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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

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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.

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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.
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a leading indigenous insurance company. 12 .mopping up huge un-surfaced resources and injecting the same into the mainstream of the country's economy.  Generating excellent. Set an immaculately spotless record of Maturity Payment . 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. enormous Self-employment opportunities through Smart Rojgar Yojna.Over 100% in Secured approved investments.  Tapping the untapped areas . 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".  Safe and Riskless . with core competence of mobilizing savings from the grass root level. 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.Over Rs.800 Crore already disbursed.

We will accomplish our vision through our commitment to strategic growth. To fulfill its role as a responsible corporate citizen. 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 .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 create livlihood solutions across the length and breadth of the country. quality service and creation of self employment opportunities for more people. To provide a supportive and rewarding environment for employees.

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

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

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

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

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

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

Travel The word Kaizen means ―change for the better‖ in Japanese. aiming to reach high. We 20 . Our core strength was derived from our highly experienced and dedicated team of travel and hospitality professionals. the Durgapur hotel has 61 rooms and suites and is close to the railway station and the highway. He is forecasting a memorable holiday with Kaizen and is confident of achieving it. Thus the logo and the colours together complement the motto . We started operations in 1991. Ltd) started as a dream and like any beautiful dream it kept growing. also representing the head of a man. We offer space. which is Housing Bengal Peerless Housing Development Company Limited incorporated in 1994. Our beginning was humble. black & yellow. who is in a joyous mood.It‘s one of the finest hotels in the steel city. Kaizen Leisure & Holidays is an IATA (International Air Transport Association) accredited organization and a member of TAAI (The Travel Agents Association of India). 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. The Company believes that the new logo denotes an illustration of a man in the shape of the alphabet ―K‖. The Commitment Bengal Peerless endeavors to provide space to all while demanding the very least. With your support and strong belief in our brand. is a joint venture between the West Bengal Housing Board and The Peerless General Finance and Investment Company Limited.green. Located in the centre of the city. Kaizen Leisure & & Holidays (Formerly Peerless Travel Pvt.CHANGING FOR THE BETTER. We are centralized (operations and marketing) at Kolkata but with our nationwide infrastructure base we can provide quality services at the most competitive prices. 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. 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 colour ―black‖ portrays the threshold of development which turns into ―green ―symbolizing growth. 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. The ―green‖ arrow points to the golden ―sun‖. The illustration is in 3 colours.

on E. having 672 dwelling units is an epitome if collective living with deep rooted sense of socioeconomic cohesion. Kolkata. Alaktika Housing Complex under implementation at Action Area II of New Town. Kolkata. an Rs 250 crore project is the first of its kind Multi Utility Infrastructure project being implemented at New Town. During the year the Company has successfully completed ―Avishikta-I‖ Housing Complex on E. Fluctuating real estate prices and other external adversities do not compel us to shift the burden of price escalation upon our allottees. 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. M. Animikha Housing Complex. Architectural details are given great consideration.M. Kolkata Axis Multi-complex. M. 21 . M. Kolkata received appreciation from all corners of the society. Aahirini Neighbourhood Centre. Avishikta Housing Complex. 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.Bypass. A grand shopping mall with entertainment.believe affordable as well as completely secured. sports. a Rs 102 crore project. We remain steadfast to our commitment to provide dwellings and commercial spaces of the highest quality. the first Public-Private joint project at New Town. Bypass and Price Anwar Shah Road shall be a landmark structure on the E. Bypass. Avishar Commercial Complex at the junction of E. Kolkata. being the first ‗High Rise‘ Housing Complex implemented by the Company. Bypass. is an Rs 60 crore project and promises to be a fusion of cultural heritage and class ambience. Old Age Homes Social service is very much a part of the Company's activities. Sonar Taree Housing Complex.a comprehensive shopping complex is the first commercial centre at New Town. 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. 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. fashion shows European luxury products and information communication technology products as its constituents. so as not to disturb the serene beauty of the natural landscape.

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

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

insurance. quality. testing. The HR department is most likely to collaborate with other company functions on employment interviewing. Managerial functions facilitate the control and coordination of activities within and among departments. they must be managed well and this requires leadership. which are used in an organization. investment in.A. and some aspects of benefits administration. Above all. labor law compliance. advanced manufacturing. real estate. performance management and discipline. • They are capable of enlargement i. Managers at different organizational levels direct the acquisition of. land. If the skill and the will are properly applied. Middle Among the various factors of production. The HR department is solely responsible for outplacement. are motivated to make their equipment produce efficiently. and communications and information companies the most ($1. and efforts to improve quality and productivity. and training and development. therefore. materials) ultimately depends on how the human factor is put to good use on various operations. to get the best out of people. wonderful things can happen: • Human resources help in transforming the lifeless factors of production into useful products. The average ratio of HR department staff to total number of employees has been 1.2 The median HR department expenditure per employee was $813. human resource is the most important.1 shows the responsibilities of human resource departments. Other common specializations include recruitment. unemployment compensation.300). with wholesale and retail trade organizations spending the least ($282) and finance.increase its core competences. is responsible for formulating strategy and establishing the policies the organization uses to control its environment. HR expenditures relative to operating costs have been fairly stable over the past few years. efficiently and effectively.0 for every 100 employees served by the department. At the B. with benefits specialists being the most prevalent. Only recently have companies looked at HRM as a means to contribute to profitability.3 24 . and control of resources to improve the organization's ability to create value. 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. Large companies are more likely than small ones to employ HR specialists.e.R. machinery. for example. They must have requisite skills to handle their jobs in a competent way.1 To extract the best out of people. and Grille. compensation. the organisation must provide a healthy work climate where they can exploit their talents fully while realising goals assigned to them. As with other business functions. capable of producing an output that is greater than the sum of inputs. This is because the efficient use of physical resources (i. developing new menu choices to keep up with customers' changing tastes is an important adaptive activity.e. • They can help an organisation achieve results quickly. record keeping. Once they get inspired. Top management. and other business goals through enhancing and supporting business operations. 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. even ordinary people can deliver extraordinary results. Table 1.

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

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

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

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

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

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

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

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

33 . c. 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. for the end-product of an evaluation should be to formulate plans for corrections of adjustments" (Gray). and to assist the rest of the organisation by identifying the gaps between objectives and results. ii. Changing philosophy of management towards human resources. To review the organisational system. human resources subsystem in order to find out the efficiency of the organisation in attracting and retaining human resources. To review the personnel system in comparison with organisations and modify them to meat challenges of personnel management. To know how various units are functioning and how they have been able to implement the personnel policies. some of the modern organisations have accepted it due to certain compelling reasons: i.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. The objectives of personnel audit are: a. Increasing size of the organisation and personnel in several organisations. 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. and d. To find out the effectiveness of various personnel policies and practices. b.

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

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

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

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. and overtime comparisons by organisational unit as a measure of how well an operation is handling employees. Average cost of accident by part of the body involved. Accidents classified by type of injury to each part of the body. Accidents by type. tardiness. Accident Ratios Frequency of accident rate for the organisation as a whole or by unit. 37 . Maternity leaves granted per 100 employees. Sales in dollars per employee for the whole company or by organisational unit (business). Number of arbitration awards lost.7. Payroll costs by unit per employee grade. Turnover and Absenteeism Ratios Attendance. Compensation paid for accidents per 1. What are the controls that exist for ensuring their effective and uniform application? 8. Sick-leave days granted as a percentage of labour-days worked.000 hours worked. Employee turnover by unit and for the organisation. Employment Ratios Vacations granted as a percentage of employees eligible. Organisational Labour Relations Ratios Number of grievances filed. Scrap loss per unit of the organisation. Output in units per employee hour worked for the entire organisational unit. Number of lost-time accidents.

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

The workshop outcomes in the experience of the author have been found to be very good. recruitment policies. v. 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. career planning.ii. Questionnaire Method TVRLS has developed a comprehensive questionnaire which has to be administered to the executives of a company. Even if it does not. 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. 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. This questionnaire can be administered individually or in a group. What do you think are the ways in which line managers can perform more development roles. 4. performance counseling. viii. job rotation. etc? 3. etc? What is weak about them? What can be improved? iii. HRD departments. induction training. Normally in the workshop the participants work in small groups either around various sub-systems of HRD or around different dimensions of HRD. worker development programmes. quality circles. vi. The HRD audit if conducted through participatory methods in itself may initiate the change process. do a SWOT analysis and make a presentation. The workshops also can be used focusing specifically on individual HRD systems like performance appraisal. This ensures uninterrupted answering of the questionnaire and provides scope for getting more credible data due to the personal explanations 39 . iv. training. vii. This questionnaire has over 250 items and requires about 90 minutes to complete. 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. Workshop In some cases the individual and group interviews are substituted by large-scale workshops. What changes do you suggest to strengthen HRD in your company? ix.

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

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

Previous HRD audit reports 29. This requirement becomes more pronounced in the context of the HR function. Documents dealing with facilities offered to employees 24. that is. internal business processes. Organizational structure charts if necessary BALANCED SCORECARD Today it has become essential for all the functional areas to get linked to corporate strategy. Residential colony facilities . that the human assets are the most valuable ones. internal business ] organizational growth. Climate surveys. culture studies 28.23. Welfare schemes and facilities 26. To facilitate efficient performance. Other studies undertaken by summer trainees and students 30. along with key perform indicators. 42 . etc. especially in the corporate world. Worker education and training programs 25. It is in this context that the balanced scorecard has 1 formulated. department or unit-wise and exit interview data 32. Any other documents having implication for HRD strategies 33. 31. Corporate vision. It has been realized the world over.guidelines 27. the perspective of customers. Age profiles grade-wise and department-wise for assessing retirements etc. 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. learning and innovation. In brief. it provides an overall view of the organization performance by integrating financial measures. Attrition rates. A balanced scorecard provides a framework for organizations to : the implementation of strategy in an organization by linking the < initiatives. and corresponding measures for evaluating success in organizations.

and more importantly the in to be undertaken by the organizations. Defining objectives and levels at the corporate level 2. that is. 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 market share in target segments. The business process perspective includes I throughput. The customer's perspective is measured through customer satisfaction. Building a Balanced Scorecard 43 . The financial perspective includes the operating income. 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. retention. Thus. sets. the learning measures apart from user feedback. and order fulfillment. 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. These are required for business processes: procurement. employee retention. by building conscience clarity in terms of the translation of the business unit's machines and s into operational objective measures. once a vision and subsequent strategy have been developed. 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. measures/parameters for assessment.Robert Kaplan and David Norton developed the balanced scorecard performance measurement system. Before the organization embarks \ the implementation of a balanced scorecard programmed. The balanced scorecard is a comprehensive view of organizational performance with a focus on vision and strategy. The steps involved process is: 1. and economic value added (EVA). etc. and quality. specific targets to be achieved. and the measures. The construction of an individual organization's balanced is accomplished through a systematic process. the individual metrics— or vital signs—will emerge from that exercise quite naturally. Linking corporate objectives to individual line of business (LOB) and measures 3. The employee growth is measured through employee satisfaction. the perspectives of the customer. the process. return on < employed (ROCE). production. It evaluates organizational j from various perspectives. The important aspects to be taken care of by organizations while < the balanced scorecard are the objectives.

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

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

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

with time frame for each activity Balanced Scorecard—Strategic Initiative The balanced scorecard. By virtue of its diagnostic and participative methodology it seems to work as a change management tool. Planning and aligning strategic initiatives The organizational objectives are aligned with the department and group/team levels seamlessly across the organization. Learning from feedback The management and the other members obtain feedback on implementation of strategy vis-a-vis the plan. In the foreword David Norton. author of Balanced Score Card. the audit methodology insisting on starting and ending with top management involvement all have high potential for initiating change processes. 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. Based on the feedback they evolve or modify the strategy for its successful implementation through the double-loop learning. However it denies and opportunity for the 47 . HRD audit is needed for realigning and rejuvenating the HR function in any company. which was originally meant to be an accurate performance measurement system. The authors argue that there is nothing wrong being outsourced as it saves costs for the firm. they have extremely limited understanding of strategies for developing human capital (HRD strategies) "There is little consensus. 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. 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. It could be further refined as an OD tool. 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. The interview methodology. The authors remark in the early part of this chapter that if the HR function cannot show that it adds value. creativity. makes some very interesting comments. and no real framework for thinking about this subject. we have seen little improvement in this over the past eight years". HRD audit is not intended to be originally an OD tool. Increasingly this is likely to gain movement and be come a good self renewal tool for the HR function. It risks being outsourced. its comprehensiveness. Norton says that he has worked with about 200 companies to design Balanced score cards. Worse. 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.• build the implementation plan after discussion. 1.

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

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.• In the US the ratio of the market value of the firms have doubled than the book value based on intangible assets. 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. (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. compensation etc. 49 . 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. • It is here the HR function can make the lives easy by demonstrating the value of intangible assets. Financial analysts have begun to therefore look for such assets. They particularly were deficient in translating the firms strategy into operational and HR goals and subsequently implement these.

• 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. • In HPWS each element of the HR system is designed to enhance the overall quality of the human capital throughout the organization.• 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. retain and motivate high performance employees In short for HR to create value.

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

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

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

Here. 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. Sick Leaves: Sick Leave is taken when the employee is physically not fit. They can‘t be accumulated nor can they be encashed. Performance Appraisal is the process by which the job performance of the employees is evaluated. promotion or any disciplinary action should be taken or not. specially rules regarding leaves.But notice should be given if it is taken for more than one day. This leave rule varies from one organization to another. An unequal leave system at the same designation creates dissatisfaction among employees and proves as a de-motivational factor. 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. Generally. During this evaluation. 54 . performance appraisal is done keeping in mind few objectives. a medical certificate is required for granting of these leaves. certain terms like quality. cost and item are generally kept in mind. That is why sometimes it is called ‗Employee Appraisal‘. quantity. there accumulation and encashment. Only then the employees will feel being treated equally by the company. They are regular reviews of the employee performance in the organizations. managers score the employees against a number of objectives or attributes. It is very important that all the rules and regulations of the organization be uniform for each and every employee. They may be accumulated and en-cashed based on the organization. Normally. Performance Appraisal Performance Appraisal is a part of career development.

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

Often a subordinate's first performance appraisal may occur at the end of a probationary period. because they are vague. Trait Based Systems. as well as those to follow. Whatever be the method of performance appraisal. easily understandable and in measurable terms.manager because they have been caught. subordinates can use to improve their performance. It may be informal or formal. scheduled or unscheduled. employees can be judged as successful or unsuccessful or accordingly. it is also important that the standards are clear to the evaluators or the appraisers. The entire performance appraisal process can be put forward by the following flow diagram: 56 . In case the standardization is not proper. By this process. it is the responsibility of the administration to declare and let every employee know about the standards being set. have the potential to be the most meaningful opportunities managers have to provide information. The standards set should be clear. 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. Now. If any changes are to be made. The very first thing is to set up a standard. the performance appraisal will not be effective. those should be made right at the very beginning. documented or undocumented. rather than basing scores on specific behaviours employees should/should not be engaging in. are more easily influenced by office politics. but they still have low integrity and are likely to lie again when the threat of being caught is gone. once the standards of the organization are set. what was their contribution to the organization keeping in view the goals and objectives. causing them to be less reliable as a source of information on an employee's true performance. the basic process always remains the same. 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. anywhere from 30 to 90 days after their start date. And these changes are done mainly by the feedback from the employers to the evaluators. As knowing about the standards about the organization is important for the employees. 2. according to which the employees will be judged. The point is this review.

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

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

As far as the sub – staff appraisal is concerned.Initiative 14. Revenue enhancement 5. and -5. Cost control 6. 5. Subordinate handling 10.1. 10. Then the last question that is asked is whether they are keen to take any more responsibility.Self-motivation 13. Client handling 9. The pointing is done by 15.Desire for responsibility 15.Team work 12. This method of performance appraisal is known as Pointing Method. the appraiser rates or points the appraisee in the appraisal form. B or C.Attitude and co-operation 16. the appraisee has to answer in front of the appraisal committee. The pointing is done in the following questions: 59 . Achieving given targets 4. Problem solving ability 8.Dependability And the appraiser rates themselves in the above criteria as A. Decision making and judgment 7.Communication skill 11. Then after that. Job knowledge / professional competence 2. Productivity 3.

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

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

(b) You show respect but sometimes tend to question their authority unreasonable. 5. (d) You co-operate grudgingly.-5] 3. (d) You have low ability to accomplish results through people. [15. (d) You are indifferent. (b) You keep good schedule of work / stick to workplace quality and time criteria. insubordinate and indifferent towards seniors. 5. Attitude towards seniors (a) You show respect and feel accountable towards seniors. quarrel and are argumentative. 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. (c) You need reminding from time to time. -5] 4. Team Work (a) You co-operate and co-ordinate well with the team. 10. Commitment to work (a) You are conscientious in your approach to work. 5. -5] 5. (c) You show lack of respect towards your seniors and their authority. (d) You are defiant. knowledge attained on a continuous basis. 0. duties and responsibilities. -5] 6. Leadership (a) You accept responsibility. (c) You are self-motivated but are unable to generate group effort. display potential. [10. waste time and leave the place of work at intervals. 5. [15. judgment and resourcefulness in getting tasks accomplished consistently. 62 . eager to improve. (c) You are willing to co-operate as long as personal view points are not challenged. 10. 10. Commitment to training (a) You show keen interest in learning and apply well.2. [15. (b) You co-operate all times but lack in communication skills.

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

Some of the importances of it are:  It acts as a performance boost to the employees. 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. 64 .  Employees need to know when their job duties are being fulfilled and when there are issues with their work performance. This can include identifying skills that must be acquired. 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.  When employees know there will be regularly scheduled evaluations.  Performance appraisals allow employees and supervisors to discuss goals that must be met to advance within the company.  Besides communicating employees' individual goals. Managers should schedule this communication on a regular basis. areas in which one must improve.  During a performance appraisal review. 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. a supervisor and an employee discuss the employee's strengths and weaknesses.Importance of Performance Appraisals Performance appraisals have a manifold importance.

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

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

a) b) c) d) 2) Mithun Kanti Majumder .PL 180 days SL 120 days. 2 employees were given 180 days during their retirement which was subject to approval from higher authority. Jadunath Puhan Manash Roy Chowdhury Debabrata Sarkar Mahendra P. 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. Singh Swpan Kumar Ghosh Mahadeb Das Proloy Kumar Mukherjee Susanta Dey Srimanta Bag Only because of the lack of proper mention leave encashment. Mithun Kanti Majumder Debabrata Sarkar Mahendra P. flowing employees need certain amount of adjustment as per leave deduction. Proper mention of leave accumulation for the following employees is required. Sudipto Ghosh – PL 180 days SL 120 days.RECOMMENDATION 1) If PL 60 days and Sl 30 days in a year is taken as a standard for leave accumulation. Mithu Das – PL 180 days SL 120 days. 67 . Payel Mukherjee – PL 240 days SL 150 days.

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

Accountability. Attitude and co-operation. You consistently report late to leave early from the work place. 4. Dependability. 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. 3. Desire for responsibility. 5. Atish Adhikari filled the form with the concern of the appraisee. c) Grooming 69 . POINTING METHOD I) a) Discipline Attendance During this period your attendance has been: i) over 95% ii) 90% . Questionnaire 1. Then a one to one interview takes place where the appraiser is answerable to his comments in the performance appraisal form. 15.90% iv) Below 80% b) Punctuality i) ii) iii) iv) your are consistently found present at the work place as per duty schedule. You sometimes leave early / report late but with prior permission You sometimes leave early/report take but without prior permission. 16. 2. The appraisal (Mr.95% iii) 80% .14.

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

iii) you are self motivated but one unable to generate group effort. iv) you one defiant. iii) you are willing to co-operate as long as personal view points are not challenged. iv) You have low ability to accomplish results through people. ii) You are fairly adept at getting work done but require some amount of guidance. eager to improve. d) Leadership i) you accept responsibility. c) Attitude towards senior i) you show respect and feel accountable towards seniors. insubordinate and indifferent towards instructions from from senior. v) You are indifferent. duties and responsibilities. quarrel and one argumentative. indecent and resourcefully in getting tasks accomplished. e) Commitment to work i) you are conscientious in your approach to work. need to be guided/prodded. iv) You co-`operative grudgingly. waste time and leave the place of work at intervals. iii) you show luck of respect towards yours seniors and their authority. 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. display potentials.iv) You feel burdened with tasks. iii) you need reminding from time to time. ii) You co-operate at all times but lake in communication skills. consistently. f) Commitment to training 71 . ii) you keep good schedule of work / stick to work place quality and time criteria. ii) You show respect but sometimes tend to question their authority.

You require supervision to ensure adherence to safety precautions. but application in operation is limited.i) you show keen interest in learning and apply well. ii) you are keen on self development. knowledge attained on a continuous basis. 72 . You require guidance and control in cost consciousness. g) Cost consciousness i) ii) iii) iv) you take initiative in monitoring and reducing costs intasks allotted. iii) you are eager to learn but are not self motivated. 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. you are not concerned about costs. iv) You show little interest in training and increasing knowledge. You are negligent in following safety precautions.

89% CV is present.78% of employees is there.HUMAN RESOURCE REPORT The recent kaizen report depicts the following.23% joining letter is present.33% date of joining is mentioned. 13) 44. 2) 100% Photograph are present.67% of qualification certificate is present.44% date of birth is mentioned. 7) Appointment letter of 77. 12) 88.11% employees are under deputation and 16. 11.44% of employees have mentioned leave of 30 days of PL in a year 55. 4) 66. 3) 50% school certificate of employees are present. 10) 22.67% are still under their probationary period.56% of employees are having 10days of CL in a year among which 11. 1) 94. 8) As per of the promotion is considered 38.11% of employees is mentioned to take a maximum of 3 days 73 .67% employees have their confirmation letter where as another 16.67% employees are not applicable. 5) 16. 83.22% of employees have their promotion letter along with their pay fixation letter. 6) 94.67% has their written retirement age mentioned. 11) 16. 9) 100% pay fixation letter is present.89% of employee got promoted under kaizen among which 22.44% application blank have been submitted till date.

22% of employees have 60 days of PL and 30 days of SL in a year.44% of employees are having their SL as 15 days a year.56% of employees have 30 days of PL and 180 days of SL. 74 . 16. 44.67% have 240days of PL and 50 days of SL in a year and the other 5.of CL at a time. 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. 15) 44.

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

Annexure : 76 .

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