Human Resource Audit - 4 Credits

Assignment Set- 1 (60 Marks)

Q.1 Discuss the conceptualizing of HR Audit.
Conceptualization of HR Auditing Auditing has evolved, becoming increasingly specific, until the term functional audit has emerged. The objective of a functional audit is to diagnose, analyze, control, and advise within the boundaries of each functional area of the company. The HR audit is a type of functional audit. Thus, as a first approach, one could say that HR auditing consists of diagnosing, analyzing, evaluating, and assessing future lines of action within the framework of HRM. HR auditing is a basic tool for the management of a company. Its objective is not only the control and quantifying of results, but also the adoption of a wider perspective that will aid in defining future lines of action in the HRM field. Thus, HR auditing must perform two basic functions [Cantera, 1995]. First, it must be a management information system whose feedback provides information about the situation in order to facilitate the development of managing processes or the development of HR. On the other hand, it must be a way of controlling and evaluating the policies that are being applied, as well as the established processes. It can be understood that in order to secure the operative efficiency and user or client satisfaction, an appraisal of the results of the HR function is necessary. According to this approach, the results obtained can be valued from certain HR policies (an external type of measurement), or from the results of the policies or the policies themselves. The results can be valued through their cost (a measurement internal to the function) [Walker, 1998]. This would lead the company to consider some basic questions. Are adequate HR policies being developed? Are the desired results being obtained? To what extent do they add value to the company? The purpose of this work is to offer a few guidelines for the appraisal of the HR function, which is in itself the basis for the auditing process. The objective is to set conceptual limits for its content and to present the different approaches with which the HR audit can be presented.

Q.2 What are the goals of HR Audit. GOALS OF THE AUDIT
An audit is a means by which an organization can measure where it currently stands and determine what it has to accomplish to improve its human resources function. HR audit also helps companies to figure out any gaps or lapses and the reason for the same. The goals of the audit can be of two types i.e. short-term or long-term. Short-term goal can solve any recent problems in the organization and long-term goals are the objectives that have greater impact on the goodwill of the organization. Read box 4.1 for understanding the concept of long- and shortterm audit goals through example.
Example of short-term and long-term audit goal: Suppose in a steel plant, many workers are leaving because of safety issues. So the senior HR manager decides to verify the safety and health issues in the factory. So in this case short-term goal is to solve the problem and try to retain the workers. Long-term goal is to increase the job-satisfaction among workers and increase the goodwill of the company as a better employer.

The main goal of the HR Audit is to ensure that proper controls, policies and procedures are in place for each of HR functions, and that records, disclosures, and other information are consistent with plan documents and in compliance with applicable laws and regulation. The other important goals can be as follows: 1. To ensure effective utilization of human resources. 2. To review compliance with tons of laws and regulations. 3. To motivate human resource department that it is well-managed and prepared to meet potential challenges and opportunities. 4. To maintain or enhance the organization's reputation in the society.

During an informational interview. Screening interviewers often have honed skills to determine whether there is anything that might disqualify you for the position. Computer programs are among the tools used to weed out unqualified candidates. You might enter the room expecting to tell stories about your professional successes and instead find yourself selling the interviewer a bridge or editing code at a computer. Give a range. and try to avoid giving specifics by replying. but be intentional nonetheless: y y y y Come prepared with thoughtful questions about the field and the company. That way. This takes off some of the performance pressure. . (This is why you need a digital resume that is screening-friendly. Gain references to other people and make sure that the interviewer would be comfortable if you contact other people and use his or her name. Job seekers ostensibly secure informational meetings in order to seek the advice of someone in their current or desired field as well as to gain further references to people who can lend insight. the jobseeker and employer exchange information and get to know one another better without reference to a specific job opening. or esteem the mutual friend that connected you to them. For this reason. are often open to informational interviews. Save your winning personality for the person making hiring decisions! Be tactful about addressing income requirements." If the interview is conducted by phone. whether the interviewer catches you sleeping or vacuuming the floor. only whether you are not a match. Screeners will hone in on gaps in your employment history or pieces of information that look inconsistent. you will be able to switch gears quickly. Some tips for maintaining confidence during screening interviews: y y Highlight your accomplishments and qualifications. One strategy for performing your best during an interview is to know the rules of the particular game you are playing when you walk through the door. the informational interview is underutilized by job-seekers who might otherwise consider themselves savvy to the merits of networking. Give the interviewer your card. screeners tend to dig for dirt. Personality is not as important to the screener as verifying your qualifications. y y The Informational Interview On the opposite end of the stress spectrum from screening interviews is the informational interview. They also will want to know from the outset whether you will be too expensive for the company. Employers that like to stay apprised of available talent even when they do not have current job openings.Q. "I would be willing to consider your best offer. feel flattered by your interest. Get into the straightforward groove. A meeting that you initiate. Remember-they do not need to know whether you are the best fit for the position. but employers reach that objective in a variety of ways. The Screening Interview Companies use screening tools to ensure that candidates meet minimum qualification requirements.3 What are the different types of interview? Types of Interviews All job interviews have the same objective. Write a thank you note to the interviewer. Answer questions directly and succinctly.) Sometimes human professionals are the gatekeepers. especially if they like to share their knowledge. See our resume center for help. it is helpful to have note cards with your vital information sitting next to the phone. contact information and resume.

running with your own agenda and dominating the conversation means that you run the risk of missing important information about the company and its needs. or you might find the conversation develops naturally. The interviewer might openly challenge your believes or judgment. you will better maintain clarity of mind if you do not have to wing your responses.The Directive Style In this style of interview. the interviewer has a clear agenda that he or she follows unflinchingly. If you are flustered. relies on you to lead the discussion. when interviewers ask each candidate the same series of questions. Remain alert to the interviewer. View it as the surreal interaction that it is. Either employers view the stress interview as a legitimate way of determining candidates' aptness for a position or someone has latent maniacal tendencies. they can more readily compare the results. The Meandering Style This interview type. Do not rely on the interviewer to spark your memory-jot down some notes that you can reference throughout the interview. Sometimes companies use this rigid format to ensure parity between interviews. You might be held in the waiting room for an hour before the interviewer greets you. following his or her lead. the Greek hazing system has made its way into professional interviews. remember: y y Flex with the interviewer. Ask well-placed questions. usually used by inexperienced interviewers. Prepare and memorize your main message before walking through the door. If he or she becomes more directive during the interview. qualities and experiences. Directive interviewers rely upon their own questions and methods to tease from you what they wish to know. Even if you feel like you can take the driver's seat and go in any direction you wish. It might begin with a statement like "tell me about yourself. You might face long silences or cold stares. remain respectful of the interviewer's role. . You might be called upon to perform an impossible task on the flylike convincing the interviewer to exchange shoes with you. which are helpful for any interview. All this is designed to see whether you have the mettle to withstand the company culture. Insults and miscommunication are common. are particularly important when interviewers use a non-directive approach: y Come to the interview prepared with highlights and anecdotes of your skills. If the interviewer does not ask you for information that you think is important to proving your superiority as a candidate. It is not personal. Do not relinquish complete control of the interview. Either way. Their style does not necessarily mean that they have dominance issues. Besides wearing a strong anti-per spirant. You might feel like you are being steam-rolled. politely interject it. although you should keep an eye open for these if the interviewer would be your supervisor. the clients or other potential stress. you will do well to: y y Remember that this is a game." which you can use to your advantage. adjust. Although the open format allows you significantly to shape the interview. The interviewer might ask you another broad. This interview style allows you tactfully to guide the discussion in a way that best serves you. open-ended question before falling into silence. The following strategies. y y The Stress Interview Astounding as this is.

For this reason. Brush up on your skills before an interview if you think they might be tested. In these interviews.y y Even if the interviewer is rude. Keep your responses concise and present them in less than two minutes. but also organization. Any of the qualities and skills you have included in your resume are fair game for an interviewer to press. y The Audition For some positions. adaptability. educational and personal experience to develop brief stories that highlight these skills and qualities in you. Go into the interview relaxed and rested. you might be asked to describe a time that required problem-solving skills. solve a . such as computer programmers or trainers. logically highlighting your actions in the situation. conflict resolution. Prepare stories by identifying the context. You should have a story for each of the competencies on your resume as well as those you anticipate the job requires. If you sense that other candidates have an edge on you in terms of experience or other qualifications. An audition can be enormously useful to you as well. Reflect on your own professional. companies want to see you in action before they make their decision. leadership. since it allows you to demonstrate your abilities in interactive ways that are likely familiar to you. Your responses require not only reflection. Depending upon the responsibilities of the job and the working environment. Treat the situation as if you are a professional with responsibility for the task laid before you. but it provides the company with a sense of your leadership potential and style. or do you compete for authority? The interviewer also wants to view what your tools of persuasion are: do you use argumentation and careful reasoning to gain support or do you divide and conquer? The interviewer might call on you to discuss an issue with the other candidates. you will have a more difficult time keeping a cool perspective. initiative or stress management. and you should demonstrate to the prospective employer that you make the effort to do things right the first time by minimizing confusion. employers use standardized methods to mine information relevant to your competency in a particular area or position. If you go into it feeling stressed. To maximize your responses in the behavioral format: y y y Anticipate the transferable skills and personal qualities that are required for the job. y y The Group Interview Interviewing simultaneously with other candidates can be disconcerting. requesting an audition can help level the playing field. Communication is half the battle in real life. do others turn to you instinctively. volunteer. and identifying the results of your actions. they might take you through a simulation or brief exercise in order to evaluate your skills. Review your resume. The Behavioral Interview Many companies increasingly rely on behavior interviews since they use your previous behavior to indicate your future performance. remember to: y Clearly understand the instructions and expectations for the exercise. multi-tasking. To maximize on auditions. The group interview helps the company get a glimpse of how you interact with peers-are you timid or bossy. The simulations and exercises should also give you a simplified sense of what the job would be like. Take ownership of your work. are you attentive or do you seek attention. You will be asked how you dealt with the situations. remain calm and tactful.

Do not sit down until your host does. With some preparation and psychological readjustment. Are you relaxed and charming or awkward and evasive? Companies want to observe not only how you handle a fork. Keep an eye on the interviewer throughout the process so that you do not miss important cues. you can enjoy the process. If he badly wants you to try a particular dish. and religious communion. companies want to know what you are like in a social setting. do not launch into business. oblige him. but also how you treat your host. In some companies. the interviewer is your host. Not only does the company want to know whether your skills balance that of the company. or discuss your peculiar qualifications in front of the other candidates. If she and the other guests discuss their upcoming travel plans or their families. In other companies. Particularly when your job requires interpersonal acuity. Some basic social tips help ease the complexity of mixing food with business: y Take cues from your interviewer. two of her staff. he likely intends to order one himself. you will proceed through a series of one-on-one interviews. and expand it. interviewing over a meal sounds like a professional and digestive catastrophe in the making. but also whether you can get along with the other workers. Treat others with respect while exerting influence over others. and the serving staff." or "Shrimp makes my eyes swell and water. do not leave him eating alone. and the Sales Director." Choose manageable food items. Remember. this could be a challenge. any other guests. Do not begin eating until he does. ask for clarification from the interviewer. Excuse yourself from the table for a moment. It is rude to be finicky unless you absolutely must. but there are a few tips that will help you navigate the group interview successfully: y y y y Observe to determine the dynamics the interviewer establishes and try to discern the rules of the game. This environment might seem overwhelming or hard to control. If you are unsure of what is expected from you. Meals often have a cementing social effectbreaking bread together tends to facilitate deals. remembering that you are the guest. Try to set aside dietary restrictions and preferences. Glenn. If he recommends an appetizer to you. if possible. multiple people will interview you simultaneously. Mealtime interviews rely on this logic. do so. y y y y y y . The Mealtime Interview For many. Find a discrete way to check your teeth after eating. If you must. Companies often want to gain the insights of various people when interviewing candidates. Thank your interviewer for the meal. friendships. be as tactful as you can. The Tag-Team Interview Expecting to meet with Ms. Avoid phrases like: "I do not eat mammals. This method of interviewing is often attractive for companies that rely heavily on team cooperation. Order something slightly less extravagant than your interviewer. marriages. Avoid overt power conflicts. Avoid barbeque ribs and spaghetti. which will make you look uncooperative and immature. you might find yourself in a room with four other people: Ms. Glenn. If you have difficulty chewing gum while walking. If he orders coffee and dessert. If your interviewer wants to talk business.problem collectively. Practice eating and discussing something important simultaneously.

Alternatively. Still. the interviewer should view you as the answer to their needs. . Other times.The Follow-up Interview Companies bring candidates back for second and sometimes third or fourth interviews for a number of reasons. the interviewer's supervisor or other decision makers in the company want to gain a sense of you before signing a hiring decision. You might find yourself negotiating a compensation package. and you must prepare for each of them. Sometimes they are having difficulty deciding between a short-list of candidates. The second interview could go in a variety of directions. you might find that you are starting from the beginning with a new person. Sometimes they just want to confirm that you are the amazing worker they first thought you to be. You can focus on cementing rapport. understanding where the company is going and how your skills mesh with the company vision and culture. you do not need to be as assertive in your communication of your skills. When meeting with the same person again.

This may seem to be a fair strategy. There can be no ambiguity. . Auditors may want to work with a compensation expert when reviewing this area. Too often. sales incentives are geared to the entire sales force. A review of the organization's salary administration process is also important to determine how employees are paid throughout their careers. motivate employees.4 Explain compensation system.Q. full compliance with tax and other deductions is made. variable performance pay. The 80-20 principle Twenty percent of the salespeople make eighty percent of the sales and profits. Thus the organization must keep the incentive program sweet. light a fire under the next twenty percent ± the next logical group The results have shown that this doubles the business in a more cost efficient manner. promotions. simple and attainable. keep these motivated sales personnel going and 2. and payroll costs are in line with budgeting objectives. Corporations use incentive programs to drive behavior and it is a well known fact that what gets rewarded gets done. and an appropriate job evaluation system is being used to slot jobs into the salary structure. Keep it simple: Good salespeople look to simplicity to make things happen. auditors should ensure that: a compensation philosophy has been developed that defines how the organization wants to pay people with respect to its position in the labor market. Anything less will result in a lack of interest. including merit increases. a salary structure has been developed to help manage pay. To ensure that the incentive programme at your organization work. to name a few. Compensation System Employee compensation system along with the benefits programs. Base salary During the audit. you may use. an effective market analysis has been conducted. are one of the most complex HR systems. Sales incentives Sometimes past incentive programme may be a reason for disappointment to both you and your salespeople. terminating employees' payrolls are processed appropriately. Auditors should verify controls to ensure that the confidentiality of personnel data is maintained. as well as a waste of time and money that can sometimes spill over into other departments whose task it is to administer and account. sales incentive programme should be crosschecked because a payment less than the worth may lead the sales team to underperform or fail as a result. additions to base pay are appropriately calculated and authorized. bonuses. stock options. but a strategist should remember that these 20% people are already motivated. and reward performance. Compensation systems should be both externally competitive and internally equitable. and deferred compensation. there are current job descriptions for each position. At the time of HR audit. That means that the sales incentives should be good enough to 1. A reward system should help support the organization's strategic mission.

By granting bonuses according to title and seniority. Bonus plans by design. There are primarily two ways to offer team based incentives. companies turn them into entitlements. professional. The determination is never. More importantly. salaried). the auditor should check if the executive bonus plan fits the uniqueness of the company. a project is assigned to a whole team together and the performance on the project depends on the collective performance of the team. that positions can be placed in based upon the duties and responsibilities of the job. Due to this. Executive bonus programs In most of the companies. title and seniority mean more when it comes to bonus pay. executive. Exempt and non-exempt status determination This concept is more prominent in USA where the HR auditor should analyze if the finance department has correctly determined whether a salaried associate should be exempt or non-exempt? Exempt status is regulated by the Fair Labor Standards Act (FLSA).Productivity incentives HR audit should employ meaningful methodologies of productivity measurement to evaluate and monitor the performance of a business operation. 1. viz. HR auditor should ensure that the organization links incentives to performance as the only fair and rationale way to reward employees. Regardless. the HR auditor should check if the due reward is being paid to the collective performance of the employees. The auditor should analyze if a realistic means of measuring progress has been employed or not. At the time of the audit. When determining exemptions. employers must first establish how the program fits into their overall compensation philosophy as well as set criteria that need to be met for the reward. should be geared to reward employees for short-term performance. he should ensure that the organization has made realistic goals and performance targets that can be reached through productivity improvements. Team based 2. . the teams like the second one of the above methods of the incentive allocation. Although. it should also be checked if the team is being told about the team based incentives entitled to them. Productivity measurements must show a linkage with profitability and should clearly demonstrate how efficiently (or inefficiently) a company is using its resources to produce quality goods and services. employers must first consider the way in which the employee is paid (hourly vs. and out-side sales. Team based incentives Since in most of the big organizations. and the allocation method involved or not. Gain sharing The auditor should also check if the employees are satisfied by the allocation method employed. In implementing a bonus program. administrative. made based upon the job s title or the manner the position is paid. executives. there are a number of unique position that provide for exempt status. There are four main exemptions. The methods of team based incentive allocation are: Equal incentive payments Differential payments based on contribution to goals Differential payment according to base pay Most often than not. There are some that believe in paying low salaries and highly aggressive incentives. then they must review the duties and responsibilities of the job. while others believe the exact opposite. who does the field work and put in more labor do not get that much of the bonus. not incentives. The majority of employers must use what is referred to as the white-collar exemption tests to determine exempt status.

Overtime computation According to the labour laws in India. either on working days or weekly offs). when a worker works in an employment for more than nine hours on any day or for more than forty-eight hours in any week. . but still less than the double. not pay the entire double amount and instead replace it with an amount that is definitely higher than the basic. This will definitely create employee unrest over time and the productivity is bound to suffer. for example. They might. he shall. in respect of such overtime work. the auditor must make sure that no such practice is being undertaken and the employees are getting their dues properly. At the time of HR audit. But many a company do not do so. be entitled to wages at double the ordinary rates of wages. The labour laws also state that the workers should be given double the normal salary when they work overtime (extra hours.

Collect Data Assess the mission. Exit interview summaries 5. and culture of the organization. 5. safety. strategy. 6. compare the data you collected with market data. Conduct Interviews The purpose of the interview is to collect input from the internal customer on their Human Resources needs and how those needs are being met. hiring rate. you can explore the reasons for the discrepancy(s).5 Write a note on Audit of HR Function. Audit of HR Function The purpose of a Human Resources audit is to assess the effectiveness of the Human Resources function and to ensure regulatory compliance. from whatever written material there is in the company (check with the department or person who handles public. during the interview. vision. hiring projections) 2. Perceptions of the company and its goals Strengths and weaknesses of top management Employee perceptions of the company and top management Relations with subordinates Support of career goals for self and employees Major Human Resources issues Which Human Resources functions work well Which Human Resources functions need improvement . Compensation and benefits philosophy and practice 4. If. as it provides the auditor with a broader perspective. other) 6. Having experience working in more than one company is a plus. Human Resources budget and expenditures Where possible.Q. Because the external consultant has fewer biases about the organization and has less personal interest in the outcome than an employee of the company. Next conduct interviews with a sample of subordinate managers including first line management. discrepancies arise between the data and the interviewee's answer. Begin the interview with top management. This information will provide you with a point of view for the next phase of the audit: the interviews. harassment. 7. 8. Employee complaints (discrimination. Promotion and advancement practices and trends 7. the external consultant may be more objective. Collect existing data such as: 1. There's an advantage to having the audit conducted by an external consultant. Hiring statistics (acceptance rate. 3. The audit can be conducted by anyone with sufficient Human Resources experience. Turnover 3. 2. customer. 4. The topics to discuss during the interview include: 1. or shareholder relations).

Implement the Program Consider implementing the program in part of the organization as a pilot program. Compare the results with market surveys. Workers' Compensation 8. Legal reporting Summarize the Results Consolidate the information you collected. Determine which practices are good/popular/effective/competitive. Legal postings 5. Point out how these recommendations will support their needs. . Pay equity 3. internal forms. Justify the recommendations.) 7.Conduct the Regulatory Compliance Audit The following areas should be audited as part of the regulatory compliance audit: 1. etc. Determine how to measure whether the improvements are successful. Job descriptions (ADA compliance) 4. Obtain Approval from senior Management Present the preliminary results and recommendations to senior management individually. Personnel files and recordkeeping (contain only job related information) 2. Monitor and measure success and seek to continuously improve processes. Equal Employment Opportunity and Affirmative Action 6. Be prepared to modify the program if an organizational change requires it. Determine which practices need improvement. Recommend specific improvements referring to the results of both the Effectiveness audit and the Regulatory compliance audit. Fair Labor Standards Act 9. Family and Medical Leave Act 10. Forms (applications. Obtain their support. then present the final results and recommendations to the senior management staff for final approval.

2. Competencies Describing Job Requirements: This approach is useful for organizations having multiple competency models. Evaluative Competency Levels: Exceptional competencies of high performers are set as standards for evaluating competency levels of employees. Behavioral Indicators: Behavioral indicators describe the behaviors. Job specific competency models help in structuring focused appraisal and compensation decisions. There are three ways in which competencies models may be developed: 1. . Design and Implementation of competencies model During an HR audit. functional and behavioral competencies. To identify role-specific competencies required industry specific. which should include functional experts and top management personnel in order to define critical and desirable competencies. Develop competency framework taking into consideration the core values and the culture of the organizations in addition to specific functional and level requirements. Detail role description for positions. 6 Write a note on design and implementation of competencies model. And also to substantiate the extent to which the competencies differentiate between high and average performers by validating the content and criteria. due attention must be paid to find out if the competencies model has been adequately designed and developed or not. 3. which need to be developed for enhanced performance. Defining and scaling (relative importance and mastery level) of specific behaviors for each identified competency as a measure of performance. The auditor should establish the link between people and roles through effective measuring tools that evaluate the performance of the person in the HR Audit role. thought patterns. Validate the competency framework through a workshop. The approach for developing a competency framework for a particular role is as proposed below: Understand strategic business context of the organizations in term of its structure and environmental variables. Competencies required in a particular job are described. This should gel with the vision and mission of the company. abilities and traits that contribute to superior performance.Q.

leverage knowledge and indicate behavioral patterns. change orientation.On-the-job performance of the individual is evaluated on the basis of a performance management system. reliability. efficiency. ethical behavior and global orientation. . multiple tests and optimal stress to increase performance. high potential list and change of functional role. decision making skills. fast tracks schemes. identifying training needs and career development. and Team Exercises: Used to assess ability to work in a team and solve problems efficiently. etc. decide. behavioral event interviews. i.. Individual Exercises For potential assessment. and risk taking skills. Inputs for analysis of an individual s potential and behavioral patterns are also collected through multilateral feedback. it is helpful in succession planning. career history. Group Exercises For potential assessment. Unassigned Role Exercises: Used to assess ability to handle uncertainty.e. In order to minimize assessors bias and ensure objectivity and uniformity multiple trained assessors for each competencies assessment are used. Learning skill Inventory/Psychometric Inventories: Used to assess ability to learn. fairness. legality. and Interpersonal Effectiveness Module: Used to assess interpersonal effectiveness. Designing and conducting a potential assessment centre should follow basic principles in term of accuracy. excommunication skills. career aspiration interview. the following group exercises are conducted: Assigned Role Exercises: Used to assess negotiating skills. As a development tool. multiple assessors. As a selection tool it can be used for management promotions. It would involve two types of exercises. manage and delegate. The assessment centre is a powerful tool in the hands of the management for selection and development. patience and interpersonal skills. group exercises and individual exercises. the following individual exercises are conducted: In-Basket Exercises: Used to assess ability to plan. organize.

It starts with analysis of the strategic position of the business. they should also be trained and educated for this role. along with some specific job duties to be conducted by the role. Along with knowing what an employee's role is in the company. an organization is deemed to be understaffed. Employees should also know what is expected of them and the work they produce. Share information about the company with your employees. Workforce planning: Workforce planning is one of the most important activities in a business. Balance the work load. Staffing includes various aspects to ensure the best practices in an organization . It can be described as the process of acquiring. Encourage employees to openly communicate with you and other employees. Update your employee's progress continuously. If the number and quality of staff employed are greater than necessary for the workload. If your company continues to grow and develop you may realize that there is a need for a new job role. Management should draft a job description which states the general responsibilities of the position. . an organization may be deemed to be overstaffed or if the number of staff is insufficient for the workload. Weekly progress reports should be implemented. When employees continue to report being short-handed and mention that some tasks are not being done this could mean it is time to plan a new job role. Here are some tips to help you to clearly define employee roles: Clearly tell people what is expected of them. The ideal staffing level for an organization depends on the amount of work to be done and the skills required for doing it. The final stage involves the creation and implementation of a human resources plan which aims to deliver the right number of the right people for the business.MU0013 ± Human Resource Audit Assignment Set. Employees that do not know what is expected of them or their role in your company can lead to unnecessary conflict and misunderstandings.1 Explain staffing in detail. Effective human resource planning will determine the appropriate staffing level for an organization at any given point in time. The results of this analysis then feed into a forecast of the required demand for labor by the business and how this is likely to be supplied. y Staffing Staffing is a term that refers to the management of employee schedules. Specifying Jobs and Roles: Clearly defining employee roles in your company is vital to work efficiency. deploying. and retaining a workforce of sufficient quantity and quality to create positive impacts on the organization's effectiveness.2 Q. When employees understand what their role is in your company they will be more productive.

staffing agency. Your company enters into an agreement with the PEO to establish a three-way relationship between you. Outsourcing: Employee Outsourcing can be a cost effective alternative to the expense and administrative burden of a traditional employer-employee relationship. Remember to help your company grow and advance it is vital that all employees know what their roles are in your company. Outsourcing your human resource functions allows you to focus on business development and provides administrative relief from many employment responsibilities such as payroll preparation. Make changes if necessary to maintain a balanced work load. the interview process. employee benefits and workers compensation. the job description and the responsibilities that the new employee will have. the employee orientation process. The other staffing processes involve Screening Applicants Selecting (Hiring) New Employees Succession Planning Job and Task Analysis Job Description Specifying Competencies New Employee Orientation Training and Development Retaining Employees Out placing and Downsizing (laying off employees) Exit Interviews HRD audit and staffing HR auditors review the process of staffing and policies pertaining to staffing. Recruiting: It involves the process of identifying and hiring best-qualified candidate (from within or outside of an organization) for a job vacancy. the job analysis and job description. required training and skills on.Get feedback from other managers and supervisors about the new job role. A PEO is not simply a temp firm. promotion and growth opportunities. in a most timely and cost effective manner. Outsourcing is accomplished by transferring many of your employer responsibilities to a Professional Employment Organization (PEO). The PEO acts as your off-site human resource department. income tax reporting. It is important the job description is accurate because it is what you have based the new employee's salary. payroll service or placement agency. Finalize the job description. You and the PEO become coemployers instead of the traditional employment relationship. . your employees and the PEO. It includes reviewing the recruitment process.

to arrive at final decision about industry¶s actual performance with the set objectives. the auditors use standards set by an outside consultant as benchmark for comparison of own results. the auditors identify Competitor Company as the model. the audit of performance or conformity consists of "making an inventory of the social situation of the company.Q.2 Discuss approaches to HR Audit. which are adopted for purpose of evaluation: ‡ Comparative approach ‡ Outside authority approach ‡ Statistical approach ‡ Compliance approach ‡ Management by objectives (MBO) approach Comparative approach In this. The Legal Approach in HR Auditing This first concept of HR auditing is based on a legal outlook. Compliance approach In this. this concept is centered on the verification that the current . p. Outside authority approach In this. The results of their organization are compared with that of the Model Company/ industry." Thus. against which performance can be measured. 2]. Approaches to Human Resources Audit The following are the approaches to Human Resources Audit. According to Antona [1993. auditors review past actions to calculate whether those activities comply with legal requirements and industry policies and procedures. Management by objectives (MBO) approach This approach creates specific goals. Statistical measures are performance is developed considering the company¶s existing information. Statistical approach In this. considering the labor law norms and regularly verifying the company's compliance with the applicable regulations.

protect the employment seeker from being discriminated against on the basis of age. social security payments). 1997]. retention. According to Nevado [1998. as well as its informative ones. termination. These practices and policies must: prohibit discrimination by offering equal employment opportunities. The second is to study the relationship between the employees and the firm based on the legal statutes. Such preventive activity could fit perfectly into the legal approach of HR. The requirement for labor security and hygiene is a part of the search for quality of life in the workplace. 49]. p. and post-employment are both fair and legal [Higgins. as well as those relative to the collective rights of its personnel. . The final function is verifying if the firm fulfills its financial obligations (for example. and contain provisions regarding mental disabilities and reasonable accommodations for disabled workers. the basic functions of the audit of conformity or of performance as an element of HR auditing are threefold. which is becoming increasingly demanded from companies. discipline. The first function is examining to see if the firm is fulfilling all its administrative social obligations. and documents regarding employee hiring. although the effort that the company can make in this sense can go beyond the application of the existing risk prevention laws. Concern about labor risks has created a function within HRM with the purpose of altering working conditions by identifying the risks that could stem from them and implementing necessary preventive measures. practices.labor laws are being fulfilled. The audit should verify if the firm's policies. carry out minimum wages.

1 for understanding the steps in HR Scorecard approach. Then design the HR Scorecard measurement system. In order to ensure the productivity. define the business strategy of the organization so as to be very clear about the way to exploit the human resource towards the achievement of the organizational goal. The next step is to formulate HR policies and practices which are strategically relevant such as new training and grievance systems. After ensuring that all above steps are correctly conducted then develop detailed scorecard.3 Describe How to approach a HR Scorecard. periodically re-evaluate the measurement system.Q. . identify the workforce requirements and behaviors expected so as to achieve the desired outcomes.e. Look at Figure 9. This mode of scorecard is based on the assumption that competent and committed employees are needed to provide quality products and services at competitive rates emphasizing on the ways to enhance customer satisfaction. The next step is to outline the company¶s value chain activities and identify the strategically required organizational outcomes. Now after the outcomes have been decided clearly. The Seven Steps in the HR Scorecard approach to formulating HR policies activities and strategies are as follows: The first step is to formulate business strategies i.

it is mere formality and they do not appreciate people-oriented culture. y A performance management/performance improvement plan.4 Explain the process of workplace behaviors that support legal compliance. dignified. . The employment decision needs to be made on work/performance-related information. Though it should be avoided because it is patently illegal because laws require that companies should mention very clearly the policies about guaranteeing specific protections to employees Safeguarding employee information Employees personal information should be safeguarded. Separate files should be maintained for personal information as contrasted with employment related information. to determine whether the descriptions list the essential functions of the job). Many smaller companies do not like writing certain aspects of ways of conducting business. related work experience. y A description of the company¶s policy for both voluntary resignation and companyinitiated termination.e.Q. For such companies. For example while deciding whether to promote employee or not. For example. not the personal information. Other employee information that must be safeguarded includes any materials that contain medical information. but also increases motivation and productivity of the employees. instead of his personal information like his religion. y Wage and salary administration program. a company may wish to review and evaluate its practices of dealing with inappropriate harassing behavior in its workplace. Main objective behind it to ensure that while deciding the employee¶s career with the company his personal information should not be considered.. An example of review of business practices used to deal with allegations of harassment safe working environments should be considered especially for the females in the offices so as to make them feel confident and concentrate on work. his work experience and capabilities should be considered. A company may choose to develop an audit sheet tailored to a particular issue. Audit will help in following improvements and reviews: y A 90-day written standard performance evaluation form. y Bonus/stock option criteria. Employee performance management An audit can review company¶s job descriptions for compliance (i. Relevant materials in the work file include information on the employee¶s education. Various legal issues can arise due to performance related problems of employees. and respectful work environment is not only mandated by the law. Safe work environment Audit practices may also help the companies to know about factors that contribute to a safe work environment. and performance evaluations in other positions within the company. y An annual written standard performance evaluation form. An audit can clarify what information must be segregated and the laws that govern employees access to and copying of their files. such as the company¶s zero-tolerance policy for harassment. Workplace behaviors that support legal compliance A safe.

shaped in part by accounting and reporting requirements. since employers cannot control the asset. while simultaneously evoking the passion. Exceptional management in the knowledge era is defined by the ability to resolve this paradox through a ³both/and." Organizations know that that measurement is a prerequisite for good management. ³What gets measured gets managed´. spending on the development of people does not meet the traditional accounting concept of an investment. a conservative strategy has its merits. a strategy that focuses exclusively on efficiency and cost containment can. the most basic source of wealth creation ± human capital ± is not managed properly. are still overly influenced by measurement concepts that date back to the industrial era when physical capital was the primary source of wealth creation. because measurement and accounting practices associated with human capital are remains of the industrial era. . Expenditures incurred on the development of the employees ± education and training being perhaps the most prominent ± are treated as costs although. also powerful arguments to be made that change is necessary.e. There are.Q. however. There are genuine arguments in favor of the status quo with regard to measurement. creativity. only be successful in the short-run. But this outright focus on costs and cost cutting is not baseless. As a result. the people in whom an investment is being made. But in most of the organizations today.´ rather than an ³either/or´ strategy. At the same time ± because human capital is also the only asset that cannot be owned ± it must be managed wisely. The both/and strategy requires a relentless focus on finding ways to cut costs and improve productivity. the measured costs are only a portion of the total costs.. because human capital cannot be owned. because benefits are both uncertain and unknown. Human capital represents a huge operating cost that must be managed efficiently because of its absolute scale. loyalty and best efforts of the people on whom an organization relies. Often the known costs associated with people and their development. accounting and reporting of human capital development and management. but also with humanity. As the popular saying goes. at best.Explain Issues in Human Capital Measurement and Reporting The human capital can be defined as "the knowledge that individuals acquire during their life and use to produce goods services or ideas in market or non-market circumstances. i. And finally.5 What are the issues in Human Capital Measurement and reporting . Moreover. these expenditures possess the traits of an investment (expenditure at one point in time that is made with the intention of generating an increase in capacity at some future point in time). This creates a fundamental paradox. This is primarily because most organizations systems of measurement.

as well as to achieve and maintain world-class competitiveness in key HR practice areas. In essence. more efficiently or at a reduced cost. procedures and practices. and these gaps can then be prioritized for attention in an effort to minimize lawsuits and/or regulatory violations. The scope of the HR function includes establishing and administering a host of policies and practices²many of which involve compliance implications²that significantly influence the productivity and profitability of the enterprise. companies operate within the confines of a heavily-regulated employee environment. It is an opportunity to assess what an organization is doing right. This includes dealing with myriad complex laws and regulations. an HR audit involves identifying issues and finding solutions to problems before they become unmanageable. Overview Human resource audits are a vital means of avoiding legal and/or regulatory liability that may arise from a company s HR policies and practices. This type of comprehensive review of the company¶s current state can help to identify whether specific practice areas or processes are adequate. audits often are designed to provide a company with information about the competitiveness of its HR strategies by looking at the best practices of other companies in its industry. legal and/or effective.6 Discuss the auditing for HR professionals. The results obtained from this review can help to identify gaps in HR practices. In addition to identifying areas of legal risk. Just a handful of these are: Benefit administration issues y y y y y y y y y y y y y y y Disciplinary matters Employee development Employees eligibility to work Interim/contingent staffing Interviewing and hiring Job descriptions Organizational development Payroll management Performance management Problem or conflict resolution Stress management Substance abuse Team building Termination Workplace violence . as well as how things might be done differently. Human Resource Audits Scope²Human resource audits involve a company¶s strategic actions to take an intensely objective look at its HR policies. In today¶s competitive climate.Q.

many organizations purchase employment practices liability insurance. performance management. Chief among these is a voluntary HR compliance audit.). companies can take other proactive measures. There are several types of audits. A review of sample personnel files often reveals inadequate documentation of performance for example. vague and/or inconsistent disciplinary warnings.) There are. Function-Specific: Focuses on a specific area in the HR function (e. within the constraints of time. Best Practices: Helps the organization maintain or improve a competitive advantage by comparing its practices with those of companies identified as having exceptional HR practices..g. While this is a sound strategy. performance management. Strategic: Focuses on strengths and weaknesses of systems and processes to determine whether they align with the HR department s and/or the company s strategic plan. with sometimes conflicting state and federal protections. To minimize the risk. payroll. Accurate and detailed records are essential for employers to defend any type of employee claim.Given that many HR departments are both understaffed and overworked. Some of the more common types are: y y y y Compliance: Focuses on how well the company is complying with current federal. Types of Audits An HR audit can be structured to be either comprehensive or specifically focused. thereby exposing the company to liability for past overtime. Inadequate personnel files. Noncompliance with applicable laws and regulations involves significant financial risk. records retention. Some additional risk areas that should be carefully reviewed include: y y y Misclassification of exempt and nonexempt jobs. Performance evaluations may be ambiguous. Almost every company has job positions that have been misclassified as exempt from overtime eligibility. has made many formerly acceptable absence control . despite medical privacy laws requiring such data to be kept separate. only in retrospect do many companies become aware of the monetary costs of ignoring HR-related legal hot buttons. particularly unemployment compensation or wrongful termination claims. Keeping a log of issues that have arisen but are not covered in the company¶s procedures or policies will help identify areas of potential exposure that can be addressed during the annual review process (if they do not need to be addressed immediately. the type of audit decided on and the available resources. the complexity of family and medical leave laws. What to Audit Deciding what to audit will depend largely on the perceived weaknesses in the company¶s HR environment. The complexity of wage and hour laws and regulations makes it easy to err in classifying a job as exempt. etc. and each is designed to accomplish different objectives. certain areas in which companies are particularly vulnerable. informal. budgets and staff. state and local laws and regulations. discipline or termination. however. Personal health information is often found in personnel files. inaccurate or outdated. Prohibited attendance policies. Controlling excessive absenteeism is a big concern for most employers. However. Most lawsuits can be traced to issues related to hiring.

so it is essential that timekeeping policies and practices be clearly communicated and consistently administered. such as missing or incomplete I-9 Forms. Employers typically require nonexempt employees to punch a time clock or to fill out time sheets reflecting their time worked each week. Employers can be fined between $100 and $1. Companies often have attendance policies that either do not comply with relevant laws and regulations or grant employees more protections than required. family and medical leave. Insufficient documentation. with reported cases of repayment totaling over $100. Inaccurate time records. Fines for these violations can easily add up.000 . Absences affect workers compensation.y y policies unacceptable. disability accommodations and pregnancy laws. The records generated by these systems typically are the employer s primary means of defense against wage and hour claims.000 for each failure to accurately complete an I-9 Form. Reviews of employer hiring practices often uncover inadequate documentation.

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