4. Literature Review 4.1, Concept of HR Audit The concept of human resout into light in recent ti ree audit is brought into light in ree time, Hower, . practice of human resource aud ; iderably (Phillips et. al., 200} Jit has boosted consi b . »P.5) i i us human ¢esoure: Li the financial audit, human resource audit deals ei policies, procedure, : ro ke human resource audit is a process ee Oa aoe functions of an Orpen ystems and pi ices with respect } fo AY es + rum) iZatig. peareers Ikaainns (2006), HRaudit entails the analytical eee and valu programs, policies and procedures to the extent of human re: ‘gement (p, 162) A Iniman resource audit is a fact-finding, diagnostic and Piece that attems to expose the effectiveness of various HR functions (Phillips et. al., 2001, P. Suttigs review of formal and informal systems and procedures of an employer to determine Wheth they meet present and expected practical needs, and whether they deliver Necessary protections from the legal obligation (Harris, 2002). “Human resource audit refers tg a examination and evaluation of policies; procedures and practices to determine the effectiveness of HRM” (Rao, 2005, p. 33; Ulrich, 1997). More specifically, human Tesource audit means the systematic investigation of job analysis, job design, HR Planning ang staffing, employee orientation and placement, training and development, employee performance appraisal and job assessment, compensation management, employee motivation, participative management, communication, employee and social welfare, employee security, safety and health compliance, trade or labor unionism, industrial relations and disagreements, and their declaration (Bandyopadhyay, 2007). The management of human resource can be seen as the Tequisite to contribute to the organization’s value as’ a whole by elevating the value of the human assets; the effectiveness criterion can measure the changes in the value of the human resources of the organization (Flamholtz, 1999, p. 17). The effectiveness of human resource management is not up to the mark as it might be, due to the lack of a unifying framework to direct it (Flamholtz, 1999, p. 17). Human resource accounting can offer a framework to assist managers utilizes human resources effectively and efficiently (Flamholtz, 1999, p. 18) and human resource audit can ensure the performance of the managers (Batra, 1996). HR audit is very worthwhile to achieve the organizational goal; and also is a dynamic tool that supports to assess the effectiveness of various HR functions of-an organizatioa (Aswathappa, 2005, p. 612). HR audit provides feedback about the various functions of human resource management to operating managers and human resource specialists. audit actually a total quality control check on HR activities in a division or company, 2" . (An iment of how these activities support the strategy Sf the organization (Figu® (Aswathappa, 2005, p. 612). Human resource audit aims “to encourage pro! fessions and Cts and executives to develop their own way of measuring performance against IS a > its and objectives developed from the experience and needs of their own particular ™™ department and section, nt- Chapter 22 ‘Scanned with CamScannerHuman Resou: ide a better worki Tee Audie (HR Ault): 4 | 40 provi lea r working environment } A Critical Review fo Prtiate further actions modifying the ins buil r Iman r¢ genefits of HR Audit pa id strong em) '& employce relationship, ‘esource systems and challenge i eS, ource audit is very supportive in i nat) res y supportive in improvin, . vest ame Se te a See ; sure as the existence of practi 1) argues that HR 7 egg 0 Aswatbappe (2005), the following benefits can be shenten Sony p3). sorbed from an HR audit p61) . Finding the contribution of the HR department t rgani th fae a Upgrading the professional image of the umm resouree rare : Encouraging greater responsibility and professionalism among ae of the HR e department, - Prompting uniformity of HR policies and practices, Jdentifying critical personnel problems, Ensuring well-timed-compliance with Jegal obligations, Reducing HR costs through more effective HR procedures, Creating higher acceptance of the necessary changes in the HR department, and Reviewing thoroughly the department’s information systems. 44.Demerits/limitations of HR Audit 1 audit are well established, but not of rules and regulations regarding financial g human resource (Sharma &Goyal, 2013, p- 404). As a result, problems ing the audit process. There are a set of disadvantages 0! and legal liability. Harris (2002) argues that an HR audit the audit, how efficiently , ‘conducted. Human resource audit should be conducted on the ‘o meet the unique need of the organization. The systems, the audit concernin} can be raised before OF duri audit regarding time and expense, 92 5 can be time- consuming and expensive depending on the scope of and by whom the audit is basis of the plan developed 45, Responsibilities of HR Auditors auditor can be internal or external. HR manager (Sharma &Goyal, The human resO¥™ "other suff or external consultant may conduct an HR audit. The 2013, p. 401) OF resource audit is to examine various reports, policies and procedures and pane of hum or alone record a ‘observations, findings and finally prepare’ the au . 403). esha necoyal 2012"? ment- Chapter 22 ‘Scanned with CamScannerE-HRM 400. iy use Sey ‘heed HRM on the world ick- oe rdly exist a1 ici ee Moritz, 2003; Ruel, Bondaroul, and/or activities. The processing and transmissioy noes ay Of performing ‘ 7 slic! - sae iRMjed electronic human resource management (HRM), hang a eR ari - application of J i i ji . or HR practices which enables easy interactions withii 10" qformation regarding payroll, employee eee Ga employers. It sSfing, recruitment and strategic orientation. E-HRM has been defined as “a wey of caplementing HR Strategics, Policies and practices in organizations through a eomecisaes a Reed support of and/or with the fall use of web-technology-based channels” (uel, sendarouk and Looisc, 2004, p. 281) or more recently, and more broadly, as “the (planning flementation, and) application of information systems for both networking and Spporting actors in their shared performing of HR activities” (Strochmeier, 2007). uman resource management (HRM) departments using information and communication technologies (ICTs) are becoming an increasingly important phenomenon commonly referred to as e- HRM. ‘Automated HR tasks and practices are transforming the traditional paper-and-pencil, labor- intensive HR tasks, into efficient, fast-response activities that enable companies to anticipate and profit from environmental shifts to create a much needed competitive advantage (Marler, 2006; Watson Wyatt, 2002). In the view of Michael Armstrong [2003] e-HR provides information required to manage HR processes. In other words, E-HRM is-a way of implementing HRM strategies, policies and practices in an organization through a directed support of web technology based channels. . E-HRM is the relatively new term for this IT supported HRM, especially through the use of web technology. E-HRM has the potential to change the way traditional HRM functions are performed. For example, in the analysis and design of work, employees in geographically dispersed locations can work together in virtual teams using videos, e-mail etc. Under recruitment function, job openings can be posted online, and candidates can apply for jobs online. On compensation and benefits Ca cHRM will make it easy for employees to review salary and bonus information 2n6.S°S%'™ formation about bonus'plans. F . «implementation, and application of information technology for E-HRM is the planning: iF yeast two individual or collective actors in their shared both networking and s' Te ME-IIRM is not the same as HRIS, which refers to ICT systems Performing of HR activit®l fj gifferent from that of Virtual HRM. VHRM is defined by Used within HR departme™ "4 network-based structure built on partnerships and typically Lepak and Snell (1998) en escuies to help the organization acquire, develop, and deploy mediated by informatiyiRM js, in essence, the devolution of HR functions to management intellectual capital. - Chapter 20 it ‘Scanned with CamScannerlower barriers 10 1 ii o ex rouun socially complex routines (Diene even where a firm has deplc edo between he int ons betwee fron Ie adent resources. THe PUrpe ea ts value through the more ¢ por (Bowman and ve ok and COOL 19077. Feeemeny = oo ease 0 assume s (Diericl® M1 technologies they may derive sustained ad - possibly imitable resources, and other more og oof this paper is to test the proposition thay ¢ Px {ficient management of generic labor and ffees ctiy, { Ambrosini, 2000). can increase i support of differential lat 7. Advantages of E-HRM for organizations where employees are not prepared to accept or \ Many researchers have argued that c-HRM systems offer organizations se nefits. For example, they enhance HR efficiency, save time, reduce costs, deor, istrative burdens, facilitate HR planning, and allow HR professionals to becom, tegic or business partners in organization. Major benefits/advantages of E-HRM are 4 F-HRM is not suitable follows: (a) Improving quality services. (>) Ensuring efficient services at the amazing speed. (c) Facilitating routine tasks like record keeping, maintaining the portfolio, collecting ang storing relevant information regarding human resource. (d) Helping reduction of costly time and labor. (c) Improving accuracy and reducing human bias. | (1) Making, reporting and analyzing data quickly. | (g) Benefiting everyone through standardization and automation. (b) Handing bundles of employee data from multiple locations fairly and quickly. ©) Performing crucial functions of HRM such as recruitment, selection, training an development by using web-based technology. | (i) Playing decisive roles towards a paperless office. &) Maintaining anonymity of staff in the evaluation / feedback giving. According to Nrupa Rajhans (2012) E- HRM costs lower and improve efficiency educing paperwork and streamlining workflow, automating redundant HRM “mpowering employees to embrace a self- service HRM delivery eysteni keeping empany workflow fully informed about all important HR compliance issues and corpora ents, speeding up the response time of HRM systems, ensuring that more inform “tons are made, and improving time management. . ‘Scanned with CamScannerconcert of Green HRM om ereut (GHRM) a new concept and is b to the different people, uae S ings . aig efforts tO improve cnergy efficiency « v _ business and general living habits (Rajassh: mn green is to reduce the potential negative j fjion can have on the environment. impact that en Sachandran (2012) defines Green HRM as the integrati . ran resources management, The term green H at of environment Management siribution of HRM policies and practices towards the broader, pad eee Tate environmental cenda. It refers to using every employee to support sustainable practic id ai e x es i sployee awareness and commitments on the issue of sustainability. ane increase ergy consumption and gsiana Nath (2012) defines Green HR as environment-friendly HR initiati i setter efficiencies, less cost and heightened employee engagement levels. "Ty ears ° saivities are performed to travel requirements through the video recruiting om ie use of online and video interviews. It involves undertaking environment-friendly HR initiatives rsulting in greater éfficiencies, lower costs and better employee engagement and retention, which in’turn, help organizations to reduce employee carbon footprints by the likes of dectronic filing, car-sharing, job-sharing, teleconferencing’ and virtual interviews, recycling, telecommuting, online training, energy-efficient office spaces etc. Green HR initiatives help companies find alternative ways to cut costs without losing their top talent. Focus on Green HRM as a strategic initiative promotes sustainable business practices. Therefore, developing a new organizational culture through GHRM practices becomes a manager’s concern. Developing a green culture has the ability to affect employee behavior and introduce certain values that build an internal culture. Green behavior is assumed to be jnstrumental in the implementation of the green HRM culture and adopting formal environmental strategies. According to Mandip (2012) the practice of green HR should be translated into the HR processes, such as recruitment, training, compensation and etc, 5 stated above, it can be concluded that Green HRM needs the From the definition’ Dove e as ion’s members in order to create and keep the organization participation of all the organi geen. ‘Scanned with CamScannern HRM riendly HR initiatives resulting in, pro, ation, Which in tum, nts by electronic filing, car sharing, ‘ely i, telecommuting, onlin, 3. Benefits of Gree! pent ing, environ involves undertaking envire { involves und ; n om sie oe Mower costs and better employ erpanizati fuce employee carbo izations to reduc ‘ fies crea, teleconferencing and virtual i xenitment and training, energy-efficien source Management plays an important role in an industry to Promote Greet n Re r P : It The Green Hummrelated issues. Organizations must formulate HR policie and practices ees wareness about the environment, and implement laws relansc in increase awareness about ed to train people to inc! environmental protection. s0 help the employers, manufacturers in building, brand image an organizational culture, thinking about waste management, pollution and helping the Society and its own people; those are getting affected by pollution. It will also make employces and society members aware of the utilization of natural resources more economically and cncourage eco-friendly products. Experts (Cohen and Taylor, 2010; Ehner, 2009; Behrend, 2009; Philips, 2007; Bansal and Roth, 2000) have identified the benefits of GHRM, which are mentioned belo 1. Helping companies to bring down costs without losing their talent. 2. Organizations have huge growth opportunities by being green and creating a new friendly environment which helps in enormous operational savings by reducing their carbon footprint. Helps in achieving higher employce job satisfaction and commitment which leads the higher productivity and sustainability, - Create a culture of having concern for the wellbeing and health of fellow workers Improvement in retention rate of employee, Improved public image. Any time a firm adds a green initiative to its workplace, it can use the event to generate Positive public relations. Organizations can promote Potential customers and possible new sales, Promote employee morale, Improvement in attracting better employees. Dolan’s (1997) study of USA MBA Students found that most of the graduates would take a lower salary to work for environmentally responsible organizations. Reduction in environmental impact of the company - Improved competitiveness and increased overall performance ignificantly reduce wasteful. * Reduction of utility costs significantly. Even small busines their utility costs by u: 8 i - Chapter 21 ‘Scanned with CamScanner~~ management and Tax Benefits. Going gr nt (GHRM) an cen is easier yi 4 pio? municipalities, Water supply 'S easier with the ass; - we ves and rebates. agsed business Opportunities. Some government . nonprofit institutions mandate that agencies, commercial t only busi busine af - ‘ thei nesses that i SSCs “andards CaN bid on their contracts. Some also mandates tha cet specific green gepartments only buy green products or use Products and servi Sane Purchasing ‘hat meet certain green standards, Tvices sold by t 4 companies Reduction of environmentally damage. Encoura; compensation to find ways to reduce the use of. i us ging employees. through traini : 9 training and environmental damaging Tmaterialse " y, most educated and affluent consumers look for companies which adopt ‘ronmental standards. Organizations pursuing environment friendly human fama ‘sss are also immensely benefitted. This may help in arriving at greener products and iminati fi -en savings from waste climination. The promotion of such values may also indirectly zprove consumer satisfaction. e {Disadvantages of GHRM ‘tile environmentally-friendly living is a positive ideal, there are several possible dadvantages of going green.. Gregory Hamel (2012) has made a review of the advantages if an organization is going green. The major disadvantages are listed below: Initial Costs echaps the greatest disadvantage of going green is that it often requires a large initial cost. example, installing a new roof or new insulation to keep heat from escaping our home would be considered a green home improvement, but it would cost a large sum of money to st the work done. ». Inadequate Savings he aim of going green in many cases, such as building an energy-efficient home or Putchasing a hybrid vehicle is to reduce environmental impact while saving money in the long term, Green buildings and vehicles tend to use less energy, so initial costs can often be "couped over time through energy savings. The problem is that the savings generated by | ting green are often less than expected; they do not make up for the initial cost quickly nough to make them economically viable, & Increased Capital Outlays me green onversions require ns require an initial cash outlay that decreases firm's bottom-line Performance while the investment is paying for itself. This can decrease earnings or annual Profits of a firm. ‘Scanned with CamScannereen Human Resource Management (GHRM) 417 G 4. Uneven Competition can be an attractive goal to gain goodwill a inese world, going green car ve goal to gain on In the busines: Jess green improvements are economically viable, it can put a busing support, but unless if one company decides to adhere to ine ty : Fe i nce, titive disadvantage. For instance, if one : ct, fenponed pollution standards which require the installation of new technology ang wong . = while another sets loose standards, the second company will be at an advantage Since fi y will have lower production costs. Mey . Marginal Impact . | ; While ee green is focused on reducing harm. to the environment, the impact that specific individual can have on the environment by going green is often negligible, me theory is that if everyone were to go green, it would have a significant and notig, ab), impact, but not everyone can be convinced to go green and many believe that doing sob, no real impact outside of the economics. This makes going green a personal choice pu many. f, Employee apathy and reluctance Many employees feel that it is not their responsibility to protect the environment while they are at work. “ But the newly educated workforce is emphasizing on environmental management consciousness when they choose their employers. 5. How to implement Green HRM rom a study of three com, ani i ii foe: mena ies, Kitazawa and Sarkis (2000) reveal a continuous reductio® ined i slate ‘ained in activities of enyi “ito empowerment and Participation of employees who ring that will increase emplo “gement ahd incentive programs, such as profit proaches, skill impre in fi bast i ove 5 companies. Moreover, team tinuous improvement ‘aaa on communications aid management supports for portant. Based on research jj ne activities ion reduction are also 10 an Duly (200g tw ) different companies, environmental j, i ‘ en! ni , . mnt Othe 4 ‘ement on envifol ning unicatio y environmental (| agement program Srmance of environ ‘Scanned with CamScanner