Metas Adventist

college
HRD AUDIT
PRESENTATION
PRESENTED BY:-
HULLASH
AGRAW AL
PRIYANKA RATHI
MOULI CHAURASIA
MANSI PATEL
 Definition of
HR Audit
According to Biles and Schuler :

"HR audit evaluates the HR activities in an organisation with a view to their effectiveness and efficiency".

According to Storey and Sisson :

"HR audit is concerned with the gathering, analyzing information, and then deciding what actions need
to be taken to improve performance"
 Nature of
Hr Audit
Identifies the contribution of the personnel
departments to the organization
Improves professional image of
the personnel department
Encourages greater responsibility
and professionalism among
employees Clarifies the employee’s
duties and responsibilities
Finds critical personnel problems
HR Audit Helps In :-
Legal Complaince
HR is bound by various laws. Non-compliance not only sparks strained employer-employee relations, even can drag an
organisation to a court of law. Systematic HR audit can ensure such compliance and benefit an organisation to
concentrate more on other strategic issues

H r Audit and Record keeping

HR record keeping is either electronically or through paper documents are, very important. Improper records can
give rise to legal complications and organisations may face structures in terms of fines and law suits. Systematic
HR audit can prevent this duly identifying deficiency in HR record-keeping and suggest better way of record
maintenance.

Employee-Relations Audit
Such audits e n c o m p a s s study of various aspects of employee relations through
structured surveys to m a p employees’ perceived level of motivation / morale / job
satisfaction etc. Through HR audit, getting a n insight on employees thinking on
various policies a n d p r o g r a m m es is possible. Such pr o g ram m es or sch emes s o m e
incentives, benefit plan etc.
HRD AUDIT - -

Meaning and Definition :

HRD audit means the methodical authentication of job analysis and design, recruitment and
selection, direction and placement, training performance appraisal and job evaluation of the
HR of the organization. HRD audit is useful to achieve the organizational goal and also is a vital
tool which helps to assess the effectiveness of HR functions of an organization and helps
company remain competitive.

The scope of HRD audit is large encompassing all the HR function namely managerial
compliance of personnel policies, procedures and legal provisions, HRD planning and staffing
and audit of the HRD climate on employee motivation, morale and job satisfaction.
It provides various benefits to the organization by finding out the contribution of the HRD
initiatives towards the organization. It also helps in development of the professionalism of
employees. It helps reduce the developmental cost by providing a cost benefit analysis of the
HRD activities. HR audit is helpful in facing the challenges of performance appraisal and
increasing the potentiality of personnel in the organization.
Cont
.
HRD A UDIT -
M ea ning a nd Definition
HRD can be defined as a process of people to acquire
competencies. In an organizational context HRD is a process by
which the employees of an organization are helped in a
continuous and planned way to acquire or sharpen capabilities
required to perform various functions associated with their
present or expected future roles and develop their general
capabilities as individuals and discover and exploit their innate
potential for their own and organizational development purpose.
Objectives of HRD AUDIT
Effectiveness Rectification
0 To review perform ance of
Hum an resource Departm ent
and its activities to determ ine
02 To take corrective steps to rectify
mistakes, shortcomings contesting
effective work perform ance of HR

1
effectiveness. Department.

Implementation
03 To locate gaps, lapses, failings in
applying Polices, Procedures,
Practices & HR-directives. Also to see
areas of wrong/ non im plem entation
that hindered the planned programs
& activities.
HR Audit v/s HRD AUDIT
Hr Audit Hrd Audit
HRD Audit is evaluation HR Audit is a comprehensive
of only few activities evaluation of the entire gamut
of HR activities
Structure,
HR Cost

HRD activities

Strategies Health, Env. &

, Systems, Safety Legal

Styles, Com pliance

Quality
Skills/
FEATURES
1. Comprehensive:

An audit team must consider the business plan and its corporate strategies
from the very beginning. The HRD auditor needs to take into account where
the company intends to be after a definite period of time. The top level
management needs to discuss these issues with the auditor. The auditor
needs to examine the objective evidences such as long-term documents as
well.
Thereafter, the auditor needs to assess the skill base required to perform the
new roles and the current skill base of HRD staff in the company in relation
to various roles and role requirements.
Following this, an auditor should verify the effectiveness of the existing HRD
mechanisms in developing people and ensure that human competencies are
available in adequate levels in the company. An HRD audit examines
linkages with other systems. The HRD structure existing in the company
should be adequate enough to manage the company’s HRD functions. Top
management and senior managerial styles of managing people need to
promote a learning culture.
The managerial styles should facilitate the creation of a learning
environment. Auditors need to examine this difficult task.
FEATURES
2. Linkages with Other Systems:

There is a linkage between HR and other functions

such as production management, maintenance
management, total quality management, personnel
policies, strategic planning, etc., in any
organization.
An audit examines these linkages between HRD
and other systems. On the basis of evaluation,
HRD
auditors suggest future HRD strategies required
by the company.
FEATURES
3. Business-Driven:

HRD audit is business-driven and primarily focuses on fulfilling

the objectives. Along with meeting objectives, HRD audit
evaluates HRD strategy, structure, system, staff, skills and
styles, and their appropriateness.
HRD audit is not a problem-solving exercise. HRD audit does
not always provide solutions to organization-specific
problems involving industrial relations, discipline,
performance, etc.

However, it gives feedback about the HRD department, the

structure of the HRD departments, competency levels of the
personnel manning, leadership styles, processes practiced,
interrelationships of HRD system with systems, influence of
the HRD on the other systems, etc.
 # 1. Establishing Strategic Plans:
HRD audit begins with strategic plans which then
roll down to the lower levels. This enables the
employees to plan their own activities and
eventually their competency development program.

# 2. Describing the Role of the HRD Department and

Benefits
Line Managers in HRD: # 3. Reformation of Other Management Practices:
HRD audit is important for employees at various levels for HRD audit recognizes the strengths and weaknesses in the
current as well as the future development. However, enhanced some of the management systems existing in the
role clarity of HRD department and HRD function and organization. At the same time it also points out the lack
increased understanding of line managers about their HRD of systems that can augment human productivity and

of hrd
role is an essential aspect of its success.
employment of the existing capability base which in turn
may have an effect on the performance of the employees.

# 5. Altering the Styles of Top Management:

# 4. Superior Recruitment Policies and Extra-Professional Staff:
One of the objectives of HRD is to create a learning organization by
An HRD audit reveals the skill base required for smooth functioning
making the top managers of the company exhibit a
of the organization. It gives direction for the proficiency
developmental style of management. The prerequisite of such a
requirements of employees at various levels and provides a base
style is an empowering attitude, participative style of
for recruitment policies and procedures. This results in
management, and an ability to translate errors, conflicts and
strengthening the recruitment policies and procedures and helps in
problems as learning opportunities. HRD audit provides subtle
working out new recruitment and retention strategies.
feedback to the top management and to initiate a change
process.
Reasons for HRD Audit -

- For expanding, diversifying and entering into a fast growth phase.

- For promoting more professionalism and professional

management.

- Bench-marking for improving HRD practices.

- Growth and diversification

- Dissatisfaction with any component

- Change of leadership
 Role of Hrd
Audit

HRD audit is cost effective

Changes in the styles of top management

Increased focus on human resources and

human competencies

Improvements in HRD systems

Better recruitment policies and more

professional staff
 CHALLENGES IN
HRD AUDIT

Build and improve Align biz processes with

quality technology infrastructure
consciousness

Strive to recruit and Train and develop the

retain competent, creative employees employee through 360
degree

Nurture creative and supportive

Promote learning orientation-
work culture
informal networks
 HRD AUDIT-
Pre Requisites

(i) Legal Compliance

(ii) Employment / recruitment
(iii) Terminations
(iv) Employee Relations
(v) Record Maintenance / Technology
Up-gradation
(vi) Compensation / Salary
(vii) Orientation
(viii) Training and Development
(ix) Communications
(x) Policies and Procedures
Using of Audit Data

Presentation of report to the top management

team & preparation of action plans by the top
management as a follow up action
Appointment of a task force to study and
prioritize the areas to be improved and the areas
to be maintained
Appointment of task force by the top management
to monitor the implementation of the report, an
periodically report to a top management
committee or the board
Appointment of number of task forces to ensure
use of the audit findings and to bring system
improvements
Designing H R D Audit

A broad indication of the competency requirement of the future to achieve

planned business outcomes

An indication of the value addition including motivational value, by the

current system and subsystems of HRD and the areas needing improvement

An Indication of the competency gaps of the HR staff

An indication of the current roles being performed by the top

management, line manager, union and associates leaders and other
stakeholder, and the gaps between what they could do and what they are
current doing

An indication of the alignment of the HR strategies with business

 A ud itor's
Role
For each activity in the HR
Audit functions Auditors
must:
Determine objective of activity.
Identify who is responsible for its
performance.

Review the performance.

Develop action plan to correct deviation,

between Results & Goal.
Follow up action plan. HR Evaluation must justify
existence of department & its expenses. Department has
 Methods of HRD
Audit
Top management and senior management
Q must be reliable and valid Observation in the natural
environment
Working style and organisational culture
Provided to a representative
Goals and readiness to pursue them sample. Canteen

Representative employees
Questionnaire assess Training centres

- Vision
-Competency of HRD staff Residential colony
- M ission Workplace
-Line managers' style
-Culture Assess conduciveness
-Implementation of HRD systems of environment
-
SWO

Interv iew Ques tionna ire Obs erv a tion

Method method Method
 Methods of HRD
Secondary data
Audit
Training programmes conducted
Frequency of the programmes
Duration of training
Evaluation of training
Large number of employees
Gathered into a single
room
Divided into groups
SWOT Analysis conducted
on different dimensions of
HRD by each group
Task force constituted
Purpose - To identify,
evaluate and recommend
solutions to HRD issues
HRD Auditor develops
on the results

Manner of assessment of training Presentation by each group

needs
Discussion and suggestions

A na ly s is of W orks hop Ta s k
records a n d Method Force
Secondary d a ta Method