Winter / November 2011 Master of Business Administration Semester III MU0013 –HR Audit- 4 Credits (Book ID: B1231) Assignment
Set- 1 (60 Marks) Note: Each Question carries 10 marks. Answer all the questions.
Q1. What are the components of human resource development audit?
Organisation and administration of human resource Information management through documentation Computerized Human Resource Information System 2.2.1 Organisation and administration of human resource In this you should consider following points: · The way in which the organization’s HR office is organized · The operating standards and internal controls followed in the business unit. · The ways of administrating retention rights, including notices, matrix, use of separation incentives, and outplacement practices. · The procedure of making HR staff up to date with the HR field. · The techniques used for communicating with employees and appointing authorities in department. 2.2.2 Information management through documentation You must be aware that information is managed in the business unit through documentation of various records of the employees and factors concerned to them. So following are some important considerations in this:
· The ways to document following in your organization : -Hiring: Application. and reference checks -Compensation and benefits -Leave and overtime information -Transitions -Training -Discipline -Work history -Work Assignments -Significant accomplishments -Emergency contact information -Performance evaluation and performance management Termination · The duration of holding the files. medical. · The various internal controls to ensure accuracy of information and control access. payroll. · The documents are held in personnel files.· The person with whom the personnel files currently held. · The policies and procedures for accessing files. · It should be seen that whether there is training of managers and employees about personnel files. · The place at which they are stored after employees leave. and position files. · The person responsible for filling the requests for information when they are made to your organization.
. · The content of employee. interviewing.
.· The process for purging records. · The way of maintaining employee timesheets. · The type of HRIS system used. · The methods to ensure timely and accurate reporting of information to the top management. · The formal training program for employees and managers to access the HR information through the system. · Whether the HRIS system is comprehensive or not.3 Computerized Human Resource Information System In this you need to check the System requirements. · To judge that system is based on same platform as rest of the organization. · The place at which various notices are posted. Consider the following: · Whether HRIS system is being used in the organisation or not. · The data security issues.2. features and capabilities. · The individuals who are able to update and change information controlled to enhance accuracy. · Are discreet pieces of information captured about employees and their jobs: -Personnel data -Recruitment/selection data -Training and development data -Compensation data -Performance appraisal/promo ability data -Benefit Plan data -Health/safety/accident data · The ways of translating the information into usable forms. 2.
annual salary.employee claims. Each phase is designed to buildupon the preceding phase so that the organization will have a very strong overview of thehealth of the HR function. a separate review is conducted of HR recordsand postings. As a result of this scheme of classification. On-site Review: This phase involves an on-site visit at the client’s facility interviewingstaff regarding HR policies and practices. for 500 employee records. and important opportunities needs (IO). including age.2 Credits (Book ID: B0799)Assignment Set. The critical areas
.The self-administered yes/no questionnaire asks a number of questions about current HR policies and practices.1 (30 Marks) Question 1: Explain the process of HR Audit in detail Answer 1: The audit process The HR audit process is conducted in different phases. Records Review: During the on-site visit. managements can prioritize their steps. forms. The areas that are urgent andimportant (UI). handbooks. Employee personnel files are randomly examined as well as compensation. Explain the audit of human resource function. These phases include: Pre-Audit Information: This phase involves the acquiring and review of relevant HR manuals.Master of Business Administration-MBA Semester 3 MU0004 ± Human Resource Audit . reports and other information.
Q2. Audit Report: The information gathered is used to develop an HR audit report. not urgent needs but important (NUI).The completion of this selfadministered questionnaire allows auditors to identify keyareas for focus during the HR audit. a pre-audit selfassessment form. not urgent but not important needs(NNI)). A pre-audit informationrequest is forwarded to the client who compiles the necessary information for review byauditors. at the conclusion of the audit.· The hardware is used to operate the system. · The local area networks that is fully compatible with the system. Pre-Audit Self-Assessment: In order to maximize the time spent during subsequent portions of the audit. and years of service. · The estimated processing time to generate a standard 10-field employee roster listing. grievances and other relevant HR relatedinformation are checked. if sent to the client can be of use. disciplinary actions. A very in-depth HR audit checklist iscompleted. The auditreport categorizes action needs into four separate areas.
The broad objective of this study was:
A study of relationship between Human Resource practices and performance of business The belief that Human Resource (HR) management and development practices have linkages with organizational level outcomes has been focus of the theoretical and conceptual work undertaken by Peters and Waterman (1982).The comprehensive HR audit covers all areas of HR management like recruitment practices. miscellaneous HR policies and practices-welfare. compensation and benefits. 1990. 1994. promotions. there is no evidence of prior empirical work in the Indian context focusing on relationship between HR practices and organizational level outcomes. Also.If using internal resource. training and development. handbooks. Recent empirical work has highlighted the connections between HR practices like selection.Besides classifying needs in each of the above areas. 1995. Explain the linkages between HR Audit and business functions. employee and unionrelations.strategic HR issues.
Q3. Ostroff. 1990. Auditors must be given unrestricted access to records. 1989. manpower planning/budgeting. manuals. it is better to appointthem formally with clarity on scope and select persons who are non political or those whoare not high on hierarchy. Arthur. However. 1992. On-site access: The on-site portion of the audit is the most critical. and financial performance (Delaney et al. 1994. Ichniowski. Huselid. incentive system and employee participation. 1995). safety and security. Data gathering: Completion of a self-assessment questionnaire significantly expeditesthe audit process and allows for better audit planning. training. It is in this context that present study was undertaken to explore the existence and seek confirmation of relationship between HR practices and organizational performance. and organization level outcomes like employee turnover. it is preferable to set termsin writing defining and agreeing on scope . productivity. Kleiner. and Lawler (1986). MacDuffie and Krafcik. 1991. forms and reports auditor must have access to relevantinformation contained in employee files and other confidential documents of theorganization. the HR audit also cites relevantlaws. cases and research to support the recommendations. Preparation for an audit
Auditor engagement : If external firm carrying out the audit. Schuler. performance appraisal. if internal persons are auditing there must be training inauditing. Porter (1985).Documents. once they signagreement for confidentiality. health. job design. attitude surveys. 1989. Begin. Pfeffer. information sharing.
This is evidenced by explaining a significant variation in all the measures of the objective and perceived organizational performance by individual HR practices. and Human Resources Planning and Forecasting Techniques? To answer the above questions. The questionnaire used in the present study was an adoption of the questionnaire developed by Huselid (1993). How many of. The analysis of data shows that all the HR practices selected for the current study have been adopted by the organizations though the proportion of employees in an organization covered by such practices is low. are likely to increase organizational performance as indicated by objective as well as perceived measures? 5. Human Resources Costing Procedures. the selected HR practices have been implemented by the organizations under study? Do they place different degrees of emphasis on these? 2. the present study was carried out through a mail survey questionnaire method.
. It indicates that relationships of individual HR practices with all the measures of objective and perceived organizational performance are statistically significant. and in interaction with each other? 3. 2. and also the relationship between these practices and organizational performance both-objective and perceived. together. What is the impact of HR practices on measures of objective organisational performance. What is the impact of HR practices on measures of perceived organizational performance. not covering all categories of employees. Both extensity and intensity measures of HR practices individually appear to be related to objective and perceived organizational performance. A sample of 359 organizations emerged. The present study was undertaken with the following research questions: 1. and how far. The major findings of the study were: 1. This means that application of HR practices is often partial. What are the key HR practices which if earnestly implemented. The universe for the study was Business Today (BT) 500 organizations using the criterion of selecting only those organizations which figured consecutively in the BT 500 list during the years 1995. 1996 and 1997. 84 organizations responded with the filled questionnaire. together. individually.40%.· To arrive at an understanding of the adoption of HR practices in Indian organizations. and in interaction with each other? 4. Do high performing organizations differ from low performing organizations in terms of the strategic importance accorded to HR function as evidenced by the HR-Business Strategy linkages and use of Human Resources Information System. Finally. and thus the overall response rate was 23. individually.
determine recruitment levels. The interaction of HR practices does not result in explaining higher variation in the measures of objective organizational performance. The result shows that extensity and intensity measures of all HR practices together do not explain a significantly higher variation in the measures of objective and perceived organizational performance as compared to the variation explained by individual HR practices. though the magnitude is low. A number of specific reasons for attaching importance of manpower planning and forecasting exercise are to: link manpower planning with organisational planning. .a nticipate redundancies. -
. human resources costing procedures. The use of HR practices like human resources information system.
determine optimum training levels. HR function still does not appear to have acquired the status of a strategic function as evidenced by the organizations participating in the study. and human resources forecasting techniques is not widely prevalent among the organizations and thus HR management and development have not yet reached a state of sophistication extensively. 6. the implications of the same seem to be substantial.3. ii) To assess or forecast future skill requirements. What are the main objectives of Human Resource Planning?
OBJECTIVES OF HUMAN RESOURCE PLANNING
The three main objectives of human resource planning are: i) To ensure optimum use of human resources currently employed. *. The present study was an exploratory study. 5. pravide a basis for management development programnes. However. This is evidenced by large number of organizations from high performing category having a person from HR function as the member of business planning committee.
Q4. . However. 7. interaction explains a significant variation in dependent variable. involvement of HR department in strategic planning process etc. iii) To provide control measures to ensure that necessary resources are available as and when required. At the end of the dissertation. The findings of the study need further confirmation on larger samples. . major implications for practitioners and future research issues have been indicated. in the case of perceived organizational performance. High performing organizations appear to emphasize the HR-business strategy linkages to a greater degree than low performing organizations. 4. though there appears to be a positive trend in this direction.
business planning. ideally starting on the employee’s first day. including central agencies and corporate service unit structure o Information about public service values o Information about government as a preferred employer. peer support. and decide whether certain activities need to be subcontracted. Write a short note on employee orientation programme.
Q5. while the second section discusses the planning and delivery of employee orientation programs. Departments may wish to create check-lists or a guide for managers. to help employees understand their job and performance expectations. and corporate goals and government priorities. o An overview of departments and agencies. This can include coaching. information sessions and on-line learning. and roles of Ministers and Deputy Ministers o Information about government’s strategic direction and vision. The Public Service Commission will provide the corporate component to employee orientation. division and department goals and priorities. including an overview of legislation. These objectives are relevant for any hotel though as per its specific requirements the hotel may add more to it. etc. assess future accommodation requirements.
Guidelines are divided into two sections—the first section discusses the development of employee orientation programs. budgeting. This information may include things like: o An overview of the structure of government. like. and pride in our workplace o Information about working in government. corporate planning. providing right service at the right moment or meet the demand of changing trends and fashions in hotel industry. Employee orientation programs should be offered using multiple learning methods. and examples of strategic initiatives. corporate policies.
Developing Employee Orientation Programs
An employee orientation program should take into consideration the culture and values of the department. management manuals. Employee orientation should be an on-going learning process. meeting the increasing demands of guests.cost the manpower in new projects. as well as checklists or a guide for employees to explain the employee orientation process. study the cost of overheads and value of service functions. and performance management processes
. have a competitive edge over other service providers. to best meet the needs of employees.
Deputy Heads will be accountable for the development of the department component of employee orientation. learning and development. casual basis)? What do they need to know to perform best in their role? Who do they need to know to perform best in their role?
. goals. private sector. This information may include things like: o Overview of the department’s vision. and employee recognition activities o Information about employee benefits and pensions o Information about Employee Self-Serve (ESS) Managers will lead the development of the job-specific component to employee orientation. including its divisions o Overview of the department’s goals. such as healthy workplace.
What is the employee’s employment background? (Within the Government of Nova Scotia. o Information about the terms and conditions of employment.) How long is the employee with you (permanent. public sector outside of the Government of Nova Scotia. within province/out of province. mission and values o Information about the department’s structure. work hours. and priorities of the division and the employee’s work unit o Introduction to key contacts and team members o Information about work assignments. This information may include things like: o Overview of the position description and job posting o Information about roles and responsibilities. o Review of performance management cycles for the division. etc. etc. priorities and the business plan o Information about department policies and procedures o Overview of the programs and services delivered by the department o Review of the departmental organizational chart o Information about human resources initiatives for employees. and can assist the implementation of employee orientation activities. etc. diversity. nonprofit. client groups (if appropriate). temporary. including a discussion about probationary periods. Answers to the questions outlined below can help managers or supervisors plan the employee’s orientation and anticipating their learning needs. including performance review timelines o Review of applicable dress code o Tour of work space o Equipment orientation and training o Occupational Health and Safety (OHS) information o Review of security procedures o Review of acronyms and common terminology used in the work unit o Information about mandatory training for the position
Planning and Delivering Employee Orientation for a New Employee
The information in this section is directed to managers and supervisors.
and the employee’s first month on the job. consider the use of a ―buddy system‖. In addition.
What resources (internal/external) are available for the new hire? Is there something unique about your department and/or work team?
Suggested activities have been outlined below. What are the reasons for implementing the human resource scorecard?
Reasons to Implement HR Scorecard
72 rate or flag
Q6. the employee’s first week on the job. Employee orientation should be an on-going learning process. having a team member available to coach the new employee throughout the orientation process. the employee’s first day on the job. so managers and supervisors are encouraged to use these suggested timeframes and build on them as they see fit. divided into four phases: prior to the employee’s first day.
managerial approaches. Balanced Scorecard may be used only in HR departments. Sometimes. check out articles and tips at our website to get more info on how to align HR with Balanced Scorecard. Thus. HR BSC in particular. if positive results are achieved. companies start using BSC in one department which does not require sufficient investments.
. it is very important that employees are satisfied with wages. Today. HR managers must understand how achievement of HR goals will contribute to implementation of company strategy. Thus. Of course. That is why when companies develop strategies they should make sure that HR approaches are aligned with general strategy. it might be better to hire inexperienced employees and educate them. The HR was. When looking for consulting and software. Indeed. Luckily. Some companies even managed to generate revenues during crisis thanks to innovative approaches and dedication of employees. Please. HR Performance Management and HR Balanced Scorecard The performance management is not just about the performance of the employees.. The best way to align HR goals and company strategy is to use Balanced Scorecard which is a fantastic performance evaluation tool which is also used in strategy planning. By the way. In such a way. especially when using specialized BSC software. it is easy to find lots of helpful seminars and online trainings. As known. The process of BSC implementation starts with discussion of company strategy. BSC is used in the entire company. all big companies have HR departments. 10 or 20 employees might require trainings if software is used in the entire company and all levels.. it is not recommended to star using BSC unless any company has a realistic strategy. The performance management is about the efficiency and increasing outputs of the departments in the organization. You should be able to identify own needs and budget in order to get the required services and software. Even experienced employees might require additional knowledge. implementation of BSC. some companies are willing to pay much for seasoned professionals who know how to do the job. HR became extremely popular since business owners understood that their employees are the most valuable asset they have. Besides. if employees perform better the company has better chances to implement strategy. managers evaluate efficiency of Balanced Scorecard and acquire skills of using this framework. . Moreover. office environment etc. requires time and efforts. To the contrary.
What Does A Balanced Scorecard Company Do? The Balanced Scorecard is a well established method of determining business performance while conducting an overall review of company and organisation success rather than just focusing of financial aspects. HR department should identify goals. In fact. make sure you find reliable companies with good reviews. If employees are not experienced in BSC it is recommended to look for trainings and seminars... HR department may overpay when hiring employees or do nothing to improve organization climate. Later on. For example. For example. Stats show that satisfied employees can perform better. However. Company employees should be prepared to work with this system. often HR managers deviate from company strategy. recent economic crisis demonstrated importance of having educated and motivated personnel.Nowadays. this is a popular way to test BSC. this is an excellent opportunity to analyze own mistakes in using BSC.
Benefits of the HR Scorecard
The HR Scorecard offers the following benefits: • It reinforces the distinction between HR do-ables and deliverables: The HR measurement system must clearly distinguish between the deliverables that influence strategy implementation and do-ables that do not. which is to create value. there are drivers and outcomes in the HR value chain as well. • It assesses HR’s contribution to strategy implementation: The cumulative effect of the HR Scorecard’s deliverable measures provides the answer to the question regarding
. At the same time. but at the same time defend investments in intangibles and HR by outlining the benefits in concrete terms. It allows HR professionals to drive out costs where appropriate. Assessing this alignment provides feedback on HR’s progress towards these deliverables and lays the foundation for HR’s strategic influence. An appropriate HR measurement system will encourage HR professionals to think both strategically as well as operationally. The HR scorecard helps HR professionals balance the two and find the optimal solution. • It enables cost control and value creation: HR is always expected to control costs for the firm. It is thus important to monitor the alignment of the HR decisions and systems that drive the HR deliverables. HR has to fulfil its strategic goal. Policy implementation is not a deliverable until it has a positive effect on the HR architecture and creates the right employee behaviours that drive strategy implementation. • It measures leading indicators: Just as there are leading and lagging indicators in the overall balanced performance measurement system.
Standardisation is good for things that don’t tend to have a dynamic nature but firm performance is a dynamic phenomenon. It provides a clear framework to think in a systemic manner. The HR scorecard engenders flexibility and change because it focuses on the firm’s strategy implementation. All measures have a credible and strategic rationale. measures simply become indicators of the underlying logic that managers accept as legitimate. One of the common problems of measurement systems is that managers tend to get skilled to obtain the right numbers once they get used to a particular measurement system. It helps them look at the bigger picture and since there are no perfect numbers it makes it easier for managers to change direction when needed. Line managers can use these measures as solutions to business problems.HR’s contribution to firm performance. With this framework. • It encourages flexibility and change: The basic nature of the scorecard with its causal emphasis and feedback loops helps fight against measurement systems getting too standardised.
. • It lets HR professionals effectively manage their strategic responsibilities: The scorecard encourages HR managers to focus on exactly how their decisions affect the successful implementation of the firm’s strategy. This is due to the systemic nature of the scorecard. Every decision needs to be taken based on the past and future scenarios. which constantly demands change.
It includes: • Overview of Focus Groups • Ethical Guidelines • Logistics of Focus Groups • How to Be an Effective Moderator • How to Be an Effective Note-taker • Suggested Readings • Case Study Samples • Steps in Moderating a Focus Group • Steps in Note-taking for a Focus Group • Focus Group Checklist
Overview of Focus Groups
What is a focus group?
A focus group is a qualitative data collection method in which one or two researchers and several participants meet as a group to discuss a given research topic. These sessions are usually taperecorded. and sometimes videotaped.
Q1. Write a short note on focus groups. This module presents the fundamentals of using focus groups in applied qualitative research. One researcher (the moderator) leads the discussion by asking participants to respond to open-ended questions – that is. Answer all the questions. as well as the range of perspectives that exist within that community or subgroup.4 Credits (Book ID: B1231) Assignment Set. such as in marketing studies. questions that require an indepth
.2 (60 Marks) Note: Each Question carries 10 marks.Winter / November 2011 Master of Business Administration Semester III MU0013 –HR Audit. Because focus groups seek to illuminate group opinion. Focus groups are often used to determine what service or product a particular population wants or would like to have. the method is especially well suited for sociobehavioral research that will be used to develop and measure services that meet the needs of a given population.
ocus groups are a qualitative data collection method effective in helping researchers learn
the social norms of a community or subgroup.
. Elaborate on the different aspects work place policies and practices to be considered by the employers. Explain the different types of competencies with examples. They are also effective for accessing a broad range of views on a specific topic. Focus groups are not the best method for acquiring information on highly personal or socially sensitive topics.response rather than a single phrase or simple ―yes‖ or ―no‖ answer.
Q2. as opposed to achieving group consensus. A second researcher (the note-taker) takes detailed notes on the discussion. Q3. Explain how audit of training is conducted. Q5. A principal advantage of focus groups is that they yield a large amount of information over a relatively short period of time. What are the trends in HR audit seen in Indian scenario? Q4. Q6. Elaborate on the need for Human Resource Audit. one-on-one interviews are better-suited for such topics.