HUMAN RESOURCE AUDIT - DEFINITION:
Human Resource Audit is a systematic assessment of the strengths, limitations, and developmental needs of its existing human resources in the context of organizational performance (Flamholtz, 1987)
NEED FOR H.R. AUDIT:
Top Management saw solutions to their problems, issues and
challenges in HRD to face business competition and to achieve
organizational goals.
PURPOSE OF H.R. AUDIT:
1. To examine and pinpoint strength and weaknesses related
to H.R. areas and Skills and Competencies to enable an organization to achieve its long-term and short-term goals.
2. To increase the effectiveness of the design and implementation of human resource policies, planning and programs.
3. To help human resource planners develop and update employment and program plans.
SCOPE OF HUMAN RESOURCE AUDIT
Whenever the H.R. Audit it taken up, the scope is decided. Audit need not be exhaustive, but should be focused on particular function of H.R.M. such as Training and Development, Performance Appraisal, Compensation, etc.. However, the objective and approach of H.R. Audit, more or less, remains the same, regardless of scope.
APPROACH TO H.R. AUDIT
1. Self directed surveys.
2. Task Forces within the organisation.
3. Out side Consultants.
AUDITING PROCESS: STEPS IN H.R. AUDIT
Auditing process varies from organizations to organizations.
Generally involves following STEPS:
STEP ONE: Briefing and Orientation:
Key Staff Members meet:
i. To discuss particular issues considered to be important.
ii. To chart out audit procedures, and
iii. To develop plans and program of audit.
STEP TWO: Scanning material information:
Scrutiny of all available information pertaining
to personnel, personnel handbooks and manuals,
guides, appraisal forms, computer capabilities and
any other related information.
STEP THREE: Surveying employees:
a. Interview with key managers, functional executives,
Top functionaries in the organisation and employees
Representatives, if necessary.
b. The purpose is to pinpoint issues of concern,
Present strengths, anticipated needs and managerial
views on human resources.
STEP FOUR: Conducting interviews:
I. What questions to be asked, are developed during
scanning of information.
II. It is better for H.R. Audit, if clarity about the key
factors of H.R.M. selected for audit and the related
questions that need to be examined.
STEP FIVE: Synthesising:
The data gathered is synthesized to present the
a. Current Situation.
b. Priorities.
c. Staff pattern, and
d. Issues identified.
STEP SIX; Reporting:
1. The results of the audit are discussed with
Managers and Staff Specialists, in several
rounds.
2. Important issues are identified for
inclusion in the formal Report.
H.R. AUDIT
TOPICS (AREAS) FOR INTERVIEW QUESTIONNAIRES
AND RELATED ASPECTS
1. INFORMATION
COVERAGE
SOURCE
ADEQUACY
GAPS
2. FORECASTING
METHODOLOGY
RELIABILITY
TESTABILITY
BUDGETING
TIME ORIENTATION
TECHNOLOGY PERSPECTIVE
3. TRAINING AND DEVELOPMENT
NEED ASSESSMENT
SELECTION CRITERIA
LEVELS COVERED AND FREQUENCY
INTERNAL VS EXTERNAL TRAINING
QUALITY CONSCIOUSNESS
CHANGING NEEDS
CLIMATE FOR SELF-DEVELOPMENT
4. PERFORMANCE APPRAISAL
VALIDITY OF APPRAISAL PROCESS
FITNESS
BENEFITS AND/OR
DRAW BACKS/PROBLEMS
KNOW-HOW OF APPRAISING
CLEAR OBJECTIVES
UNIFORMITY IN PROCESS
UNDERLYING BENCHMARKS
CONSISTENCY IN RATINGS
LINKAGES WITH PAY
FEEDBACK TO EMPLOYEES
CHANGING NEEDS
5. MANAGEMENT SUCCESSION PLANNING
POLICY FORMULATION
IDENTIFYING KEY POSITIONS
AVAILABILITY OF SUCCESSORS
MATCHING FUTURE NEEDS
RESPONSIBILITY FOR GROOMING
AND DEVELOPING
HANDLING NON/POOR PERFORMERS
6. COMPENSATION
APPROPRIATENESS OF POLICIES
COMPANY PHILOSOPHY
ADEQUACY OF REWARDS
NATURE OF JOB DESCRIPTIONS
FLEXIBILITY IN JOB EVALUATION SYSTEMS
CONTROL OVER COSTS
RATIONALE OF REWARD SYSTEM
OPPORTUNITIES FOR IMPROVEMENT
7. AFFIRMTIVE ACTION
EFFICIENCY OF ACTION PROGRAMMES
LESSONS FOR FUTURE
8. SPECIAL ASSIGNMEN
(OTHER H. R. FUNCTIONS)
CLARITY
COMMENTS
ACTIVITIES JURISDICTIO
9. NEED INTER-RELATIONSHIPS
UNIQUENESS
DISTINCTIVENESS
PRESENCE AND AWARENESS OF ABOUTCOMPANYS H. R. POLICY
CLARITY ON OBJECTIVES OF
H.R. AUDIT
FUTURE OUTLOOK ON PHILOSOPHY
* CAPABILITIES ON IMPLEMENTATION
10. THE STAFF FUNCTION
(THE H.R. STAFF)
EXPECTATION FROM HUMAN RESOURCE STAFF
DEGREE OF SATISFACTION
ADEQUACY
ATTIDUDE AND APPROACH
CAPABILITY AND POTENTIAL
SUGGFESTION FOR CHANGE
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CHALLENGES FOR H.R. DEPARTMENT
EIGHT CHALLENGES IDENTIFIED
BY DAVE ULRICH (1997)
1. GLOBALISATION INVOLVES
NEW MARKETS
NEW PRODUCTS
NEW MINDSETS
NEW COMPETENCIES
NEW WAYS OF THINKING
H. R. DEPATMENTS WILL NEED TO CREATE
MODELS AND PROCESSES FOR ACHIEVING:
GLOBAL ACTIVENESS
COMPETITIVENESS
EFFECTIVENESS
2. VALUE CHAIN FOR GLOBAL
COMPETITIVENESS AND HR SERVICES
BUILDING CUSTOMER-RESPONSIVENESS ORGANISATION THROUGH:
a. Innovation
b. Faster Decision Making
c. Price or Value Advantage
d. Effective linking with Suppliers
3. GROWTH OF ORGANISATION
By INCREASING Customers
BY MERGERS
BY ACQUISITION
BY JOINT VENTURES
HR ISSUES INVOLVED:
Having EXECUTIVES with BUSINESS MINDSET.
- For CUTING COST on hiring PEOPLE.
- For overcoming CHALLENGE in New Business.
4. BUILDING ORGANISATIONAL CAPABILITIES
Reviewing Existing Capabilities
New Capabilities.
Aligning Capabilities with Business Strategies.
5. MANAGING CHANGE
Adopting some new H.R. Practices.
Learning some New Skills and Attitudes.
Unlearning some existing skills and Attitudes.
Modifying Mindset of Executives and Employees.
6. MAKING TECHNOLOGY VIABLE
Finding out ways and means to
make technology successful.
7. ATTRACTING AND RETAINING
COMPETENT PEOPLE
Attracting Talented People.
Retaining them.
Utilising them suitably.
8. TRANSFORMING ORGANISATION
Creating fundamental and lasting changes.
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PRINCIPLES FOR HRM EFFECTIVENESS
SIX PRINCIPLES OF Dr. T. V. RAO ARE BASED ON HIS OBSERVATIONS AND PERSONAL KNOWLEDGE ABOUT THE 11 NATIONAL HRD AWARD WINNERS, DURING THE PERIOD FROM 1989 TO 1997.
DR. RAO OBSERVED, FOLLOWING COMMON TRAITS AND CHARACTERISTICS IN THE AWARDEES:
i. ROLE MAKERS NOT ROLE TAKERS.
II. INTEGRATION OF HR POLICIES AND PRACTICES
WITH COMPANY BUSINESS.
III.VERSATILITY FOR ONE ROLE TO OTHER.
IV.THRUST FOR LERNING.
V. ALL ARE NOT HR MANAGERS.
VI. READY TO HANDLE LINE RESPONSIBILITIES.
VII. HAVING HIGH APPLIED BEHAVIOURAL SCIENCE ORIENTATION.
ฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌ_________________________ _______________________________________________
SIX PRINCIPLES FOR BECOMING AN EFFECTIVE
HR MANAGER:
1. RESPECTING EACH OTHERS TIME.
2. BECOMING TRUSTWORTHY AND PROMOTING TRUSTWORTHINESS.
3. CONTINUOUS INTROSPECTION OF ROLES AND RESPONSIBILITY OF SELF AND THE GROUP.
4. LEARNING FROM NEIGHBOURS FOR CHANGE AND REFLECTION.
5. PAYING ADEQUATE ATTENTION TO THE CULTURE AND VALUES IN THE COMPANY AND THE COUNTRY.
6. USING PERSONNEL POLICIES FOR EMPOWERING EMPLOYEES AND PROMOTING MANAGERIAL EFFECTIVENESS AND NOT FOR BLOCKING CREATIVITY AND INNOVATION.
H. R. COMPENTENCIES
1. Knowledge of H.R. practices:
- Staffing.
- Development.
- Appraisal.
- Rewards.
- Organisational Planning.
- Communication, Etc...
2. Mastery of Human Resource:
- Every thing about H.R.
3. Knowledge of Business:
It means knowing about:
- Financial.
- Strategic.
- Technological variables and their influence on business.
4. Mastery over Change process and Change Management:
- Creating Meaning.
- Problem Solving.
- Innovation.
- Transformation.
- Relationship Influence.
- Role Influence.
5. Mastery of Business:
It means knowing about following capabilities of the
organisation:
- Business,
- Financial.
- Strategic.
- Technological.
- Organisational.
METHODS OF H.R. AUDIT
FOUR METHODS:
1. INDIVIDUAL INTERVIEW METHOD
2. GROUP INTERVIEW METHOD
3. WORKSHOP METHOD
4. QUESTIONNAIRE METHOD
FOR H.R. AUDIT, EITHER COMBINATION OF METHODS OR ALL THE METHODS ARE USED.
I. INDIVIDUAL INTERVIEW METHOD:
Top level management and senior managers are interviewed, individually. It helps in following:
A. Knowing their thinking about future plans and opportunities available
for the company.
B. Knowing about their expectations from the H.R.Audit.
C. Getting sensitive information pertaining to working styles and culture.
Union leaders, departmental heads, some strategic clients and informal leaders are also interviewed, individually.
In case of small companies, manned by professionals, interviews can be extended with selected employees from different levels and functions.
II. GROUP INTERVIEW METHOD:
Group interviews and discussions with the employees and/or executives of large companies for H.R. Audit, facilitate collection of information about effectiveness
of existing systems.
COMPOSITION OF GROUP:
1. Ideally, the group should be of 4 to 8 persons.
2. Group should consists of same or similar level of employees from cross functional areas.
3. In case of large organisation, group interviews for each functional area can be conducted, separately.
RELAVANT QUESTIONS THAT ARE ASKED IN INDIVIDUAL AND GROUP INTERVIEWS:
a. What do you see as the future growth opportunities and business directions of the company?
b. What skills and competencies does the company have which you are proud of?
b. What skills and competencies do you need to run your business, or to perform your role, more effectively at present?
c. What are the strengths of your HRD function?
d. What are the areas where your HRD function can do better?
e. What is good about your HRD subsystems, such as:
performance appraisal,
career planning,
job rotation, training,
quality circles,
induction training,
recruitment policies,
performance counseling,
worker development programmes, and
HRD departments?
f. What is weak about them? What can be improved?
g. What changes do you suggest to strengthen HRD in your company?
h. What do you think are the ways in which line managers
can perform more developmental roles?
III. WORKSHOP METHOD:
In some cases of H.R. Audit, instead of Individual and Group Interviews, Workshop Methods i.e. Large Scale Interactive Process (LSIP) is conducted, as under:
a. 30 to 300 participants can be asked to gather in a room.
b. They are divided in small groups.
c. They are asked to work either around Systems, Subsystems or
around different dimensions of HRD and do SWOT Analysis.
d. All the groups thereafter give presentations.
e. The H.R. Auditor compiles the views of all groups, makes
own observation, conclusions and prepares a report.
f. The H.R. Auditor announces the audit Results before submitting
the report to top Management.
LSIP WORKSHOP FOR HRD AUDIT ON
PERFORMANCE APPRAISAL SYSTEM
- RELEVANT QUESTIONS THAT HAVE BEEN ASKED
IN ONE OF THE HR AUDIT CONDUCTED BY
Dr. T.V. RAO:
i. What are the three good things in your performance
appraisal system?
ii. What is the one thing you would like to change in your
performance appraisal system?
iii. How would you critically evaluate the job rotation in
your company?
iv. What are the strengths and weaknesses of your training
policies and practices?
v. What three objectives would you use to describe the promotion
policies as they exist in your company?
IV. QUESTIONNAIRE METHOD:
Feed back about various dimensions of HRD, including the competency base of HRD staff, the styles of line managers, the implementation of various HRD systems, etc are obtained through a detailed questionnaire from individuals or groups for H.R. Audit. This method helps in benchmarking.
The process is as follows:
a. Detailed questionnaire is prepared by H.R. Auditor.
b. Individuals or groups are asked to assemble in a room or hall are explained the objective and process of HR Audit. They are then given questionnaires.
c. They submit the questionnaire, duly filled in, to the HR Auditor.
d. The HR Auditor compiles the feedbacks, makes observations, conclusions and recommendations.
e. Audit Results are informed to the Participants before
the report is submitted to the top management.
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OSERVATION, ANALYSIS OF SECONDATY DATA, REPORTS, MANUALS AND
OTHER PUBLISHED LITERATURE
OBSERVATION:
In addition to following the said methods, the HR Audit, needs to undertake following to assess the extent to which a congenial and supportive human welfare-oriented climate exists in the company:
1. Visit workplace, plant, machinery room, canteen, toilets, training rooms, hostels, hospital, school, living colony, etc., as applicable.
2. Observations can be made through a checklist.
ANALYSIS OF SECONDARY DATA:
This can provide an insight into the HRD assets and liabilities of the company. For example in the are of training, it may reveal as to whether employees are given training systematically or otherwise, the cost involved for training, the age group of employees attended training programmes, the purpose of training the employees etc..
ANALYSIS OF REPORTS, RECORDS, MANUALS AND OTHER PUBLISHED LITERATURE:
Study and analysis of said documents help in assessing the strengths and weakness of HRD.
*****
H.R.AUDIT METHODOLOGY
(INDIVIDUAL INTERVIEW METHOD
HOW TO INTERVIEW AND FRAME QUESTIONS?)
INTERVIEWS BEGIN WITH THE CEO AND
TOP MANAGEMENT
PURPOSE:
TO KNOW EXPECTATIONS OF CEO.
TO EXPLAIN SCOPE AND LIMITATIONS OF HRA.
TO GET COOPERATION FROM STAFF.
TO KNOW STRATEGIC LONG-TERM AND SHORT-TERM PLAN
OF THE ORGANISATION.
CEO SHOULD BE INTERVIEWED, SEPARATELY.
BRIEFING SESSION WITH CEO, COVERS:
HRD AUDIT AND ITS METHODOLOGY.
SCHEDULE OF H.R. AUDIT.
ASKING CEO OF HIS/HER EXPECTATIONS.
EXPECTATIONS, WHICH CANNOT BE MET.
IF DESIRED BY CEO, BRIEFING SESSION OF SENIOR AND TOP MANAGERS CAN BE HELD IN A GROUP:
BRIEFING WILL COVER FOLLOWING QUESTIONS-
WHAT IS HRD?
WHAT IS HRD AUDIT?
WHAT IS REQUIRED OF THE LINE MANAGERS IN INDIVIDUAL
OR GROUP INTERVIEWS?
WHAT HAVE BEEN THE FINDINGS OF GROUP.
HR AUDITOR TO TELL DURING BRIEFINGS TO CEO AND SENIOR/ TOP MANAGEMENT:
HR AUDIT IS NOT A PROBLEM-SOLVING EXERCISE.
IT WILL NOT GIVE FEEDBACK ABOUT INVIDIDUALS, BUT ABOUT STRUCTURE, COMPETENCY LEVELS, LEADERSHIP,
PROCESSES ETC.
IT IS COMPREHENSIVE, BUT CAN BE FOCUSED ON ONE OR MORE SYSTEMS.
ACTION ON HRD AUDIT REST WITH CEO.
FORMULATION OF QUESTIONS FOR INTERVIEW WITH CEO:
WILL BE BASED ON FUTURE PLANS OF THE COMPANY IN THE AREAS, THE COMPETENCY REQUIREMENTS AND PREPAREDNESS OF H.R.
DIVERSIFICATION,
NEW MARKET,
NEW BUSNESSES,
NEW AREAS
SCALE OF OPERATIONS,
EXPORT,
ANY CHANGE OR CONSOLIDATION.
INTERVIEW QUESTIONNAIRE:
WHAT DO YOU SEE AS THE COMPETENCY REQUIREMENTS FOR THE FUTURE?
WHAT COMPETENCY GAP DO YOU SEE
IN THE EXISTING STAFF?
WHAT NEW COMPETENCIES NEED TO BE DEVELOPED IN THE STAFF AND HOW DO YOU PROPOSE TO DO THAT?
INTERVIEW WITH THE HRD CHIEF
OBJECTIVE:
TO UNDERSTAND THE EXISTING SYSTEMS, STRUCTURE, SKILLS OF STAFF, STYLES OF TOP MANAGEMENT AND RELATIONSHIP WITH THE HRD PHILOSOPHY, PROBLEMS ETC..
TO UNDERSTAND HRD CHIEFS PERCEPTIONS:
1. ABOUT TOP MANAGEMENT AND THE SUPPORT REQUIRED FROM THEM.
2. ABOUT LINE MANAGERS, THEIR COMPETENCIES AND INVOLVEMENT IN HRD MATTERS.
3. ABOUT UNIONS AND THEIR INVOLVEMENT
IN HRD RELATED ISSUES.
THE COMPETENCIES OF HRD DEPARTMENT AND STAFF.
TO UNDERSTAND THE INTERNAL CUSTOMER FRAMEWORK OF HRD DEPARTMENT.
TO FIND OUT THE TIME DIVISION AND HOW TIME IS SPENT BY THE DEPARTMENT.
TO ASCERTAIN VIEWS ON HOW VARIOUS SYSTEMS ARE WORKING.
TO GET A SWOT ANALYSIS OF HRD SYSTEMS.
TO PREPARE A LIST OF DOCUMENTS VIS-ภ-VIS CHECKLIST
OF HR AUDIT.
FRAMING OF INTRVIEW QUESTIONNAIRE, BASED ON SAID DIMENTIONS FOR INTERVIEW WITH HRD CHIEF:
WHAT ARE THE OBJECTIVES OF YOUR DEPARTMENT?
WHEN AND HOW WAS IT SET UP?
WHAT ARE THE SIGNIFICANT MILESTONES
AND CONTRIBUTIONS OF THE DEPARTMENT?
WHAT ARE ITS CURRENT ACTIVITIES?
WHAT IS THE ORGANISATIONAL STRUCTURE?
HOW ARE THE STRATEGIES OF HR AND HR PLANS FORMULATED? WHAT IS THE ROLE OF THE DEPARTMENT IN STRATEGIC PLANNING?
WHAT ARE THE MAIN COMPETENCIES OF HRD STAFF? WHICH ARE THE COMPETENCIES THEY NEED TO DEVELOP?
What are the styles of Top and Senior level Managers?
To what extent the styles are helpful in developing learning culture?
What are the main blocks in developing learning culture?
How are the line managers supporting their juniors in developing? What needs to be done to make them more supportive?
What is the extent of support given by Top Management to HRD?
Is there a separate budget for HRD? How the same is allocated and what is the support of Top Management?
What is the HRD philosophy and values?
What the core competencies of each department and of the organisation
as a whole?
What is relationship between Personnel and HRD Departments? Is there need for further strengthening Integrating or differentiating the functions or activities of the two?
What the strengths and weakness in the following systems of your organisation:
i. Performance Appraisal.
ii. Counseling.
iii. Training.
iv. Career Planning and Development.
v. Succession Planning for strategic roles.
vi. Job Rotation.
vii. OD and Team Building interventions.
viii. Research and System Development.
ix. Mentoring.
x. Culture- Building Exercises.
xi. Quality improvement interventions.
*****
INTERVIEWS WITH LINE MANAGERS:
OBJECTIVE:
TO UNDERSTAND THEIR PERCEPTIONS ABOUT THEIR:
a. HRD needs.
b. Current status.
c. Expectations.
d. Competencies.
e. Commitment to HRD.]
f. Etc..
FORMULATION OF INTERVIEW QUESTIONNAIRE,
BASED ON ABOVE DIMENSIONS:
What are the HRD needs of your department and yourself?
What kinD of help do you get from HRD Department for competency and commitment building?
What the HRD System that you feel happy about?
What are the HRD System that you have contributed and contributing in achieving business goals?
What are the strengths of your HRD functions?
What are the weak areas of HRD?
What are your expectations from HRD?
What are the training needs of your department?
Are your training needs taken care of?
What are your career growth? Are they taken care of?
What do you see as future growth of the opportunities and business directions of the company?
What the core competencies are skills and knowledge the company has?
What skills and knowledge do you thing are required to run the business (or to perform better in your job)?
What is good about your HRD sub-systems: Performance Appraisal? Training? Job Rotation? Career Planning and development?
What should the HRD Department start doing or do more? What it should stop doing or do less.
*****
INTRVIEWS WITH WORKERS AND THEIR REPRESENTATIVES:
OBJECTIVE - TO FIND OUT:
THEIR CURRENT DEVELOPMENT NEEDS VIS-ภ-VIS BUSINESS GOALS OF THE COMPANY.
THEIR MOTIVATIONAL LEVEL.
CULTURE PREVAILING IN THE ORGANISATION.
GOOD AND BAD PRACTICES OF THE ORGANISATION.
FOMULATING INTERVIEW QUESTIONNAIRE,
BASED ON ABOVE:
How to you feel working in your organisation?
What are the strengths of your organisation?
What are the areas that need improvement?
What do you know about the business plans and opportunities for your company?
What do you know about the competition your company is facing today or is likely to face in the future?
What are some of the things your company should do to face the changing environment?
What is being done to ensure that you all have the skills needed to meet the current needs or future challenges of the company?
What motivates you here?
What more do you think needs to be done to help you contribute better to the organisation?
What kind of training do you get here? Are you satisfied? What more do you think need to be done in the interest of the company?
What are the facilities available for you in the plant and colony.
What do you think can be done to improve quality, save costs and make people feel happy to work for the company.
What are your expectations from the HRD Department? What are you happy about? What are your suggestions for them to serve you better.
*****
H.R.AUDIT METHODOLOGY
(GROUP INTERVIEW METHOD
HOW TO INTERVIEW AND FRAME QUESTIONS?)
GROUP INTERVIEWS
Advantages:
1. Wider coverage of issues.
2. Larger involvement of employees.
3. Verification of data and significant points.
4. Assessment of impact of feelings related to any issue and
problem or satisfiers and dissatisfiers.
GUIDELINES FOR SELECTING SAMPLES FOR
GROUP INTERVIEWS
Middle level Managers:
Minimum 10% and Maximum 100% group-wise or department-wise. In any audit, 100 Managers individually or in groups should be interviewed.
Supervisors and Staff:
10% or 5-6 groups from different functions and workplaces may be selected for audit.
Workmen:
To be interviewed in large groups. 5-10 groups are advisable.
GUIDELINES FOR INTERVIEWS IN GROUPS
A. Auditors to be introduced to the group by a representative from
H.R. Department.
B. Auditors to brief about the HRD Audit and its purpose and usefulness
to the company. Thereafter, questions relating to various systems can be
either asked questions or given a questionnaire to answer in about
30 Minutes and after collecting the feedbacks, discussion for another
about 30 minutes can be held to know the intensity of the feelings.
In either case, notes should be taken.
C. Auditors to consolidate the feedbacks.
FORMULATION OF QUESTIONNAIRE FOR GROUP INTERVIEWS:
As per your view, what are the Strengths and Weaknesses in respect of the following components of HRD:
Commitment of Top Management to HRD. Performance Review discussions.
Recruitment of competent people. Separations.
Retention of competent people. Quality Circles.
Identification of fast-track-employees. Participative Management.
Mentoring System. Shopfloor Committees.
Training (In-house & outside). Delegation.
Induction. Personnel Policies.
Career Planning. HRD Department and Staff.
Succession Planning. Communication.
Job Rotation. HRD Culture.
Performance Appraisal. Others.
INTERVIEW AREAS,
DIMENSIONS AND QUESTIONS
FOR ASSESSING HRD SYSTEMS
POSSIBLE INTERVIEW AREAS, DIMENSIONS, ISSUES AND QUESTIONS CAN BE IN THE FOLLOWING HRD SYSTEMS:
CAREER SYSTEM: Manpower Planning and Recruitment. Potential Appraisals and Promotions, Career Planning and Development.
WORK PLANNING: Role Analysis (goal setting), Contextual Analysis, Performance Appraisal.
DEVELOPMENT SYSTEM: Training and Learning, Performance Coaching/Counseling, 360-Degree performance feedback, Job Rotation/Mentoring, Staff (worker) Development.
SELF-RENEWAL SYSTEMS: Role efficacy, O.D., Action-Oriented Research.
CULTURE SYSTEMS: HRD Climate, Values, Quality orientation, Reward and Recognition, Information, Communication, Empowerment.
TWO EXAMPLES:
HRD SYSTEM/SUB-SYSTEM
POSSIBLE INTERVIE AREAS, DIMENSIONS, ISSUES AND QUESTIONS
WORK PLANNING:
Performance Appraisal
What is the existing system of performance appraisal?
What re the components?
What are the objectives?
What is it currently being used for?
How is it linked to other systems?
What are the roles played by the system?
Are the line managers taking it seriously? Are they trained for and are they constantly kept educated?
What are the strengths, Weaknesses and suggestions for improvement?
DEVELOPMENT
SYSTEM:
Training and Learning
What are the suggestions for improvement in the training?
What is the training budget?
Do line managers take the training seriously?
What is the process of sponsoring employees for training?
What are the other learning mechanisms being used for competency building?
What are the new learning mechanisms that can be used?
What are the attitudes of the line managers and the top management for training?
What are the strengths and Weaknesses of the training as it is being managed?
WHAT TO OBSERVE IN AUDIT
IN
HRD SYSTEM
TWO EXAMPLES:
HRD SYSTEM/
SUB-SYSTEM SECONDARY DATA
WORK PLANNING:
PERFORMANCE APPRAISAL
Study the pattern of ratings for leniency, rater wise trends and department-wise trends to ascertain the leniency and conservativeness in assessment. Study interdepartmental variations in ratings and rewards to ascertain the possible biases, etc.. Investigate this, only if necessary.
DEVELOPING SYSTEM:
TRAINING AND LEARNING
Assess the expenditure on training level-wise, department-wise and location-wise. Assess, if the training programmes sponsored are in line with the training needs stated in the appraisal formats. Analyse the training budget to assess, if the budgets are prepared appropriately and if the full expenditure is taken into consideration in the assessment.
WRITING H.R.AUDIT REPORT
OBJECTIVE:
1. TO HIGHLIGHT AREAS THAT NEEDS IMPROVEMENT.
2. TO BE ACTED UPON.
PURPOSE:
TO HELP THE TOP MANAGEMENT AND AND THE HRD STAFF TO RECOGNISE AND RETAIN THE COMPANYS STRENGTHS.
POINTS TO REMEMBER FOR WRITING REPORT:
A. SIMPLE LANGUARE SHOULD BE USED.
B. IT SHOULD BE SHORT AND PRECISE.
C. BULLET FORM HIGHLIGHTING THE STRENGTHS AND WEAKNESSES,SHOULD BE USED.
MODEL OUTLINE: HR AUDIT REPORT
EXECUTIVE SUMMARY
CHAPTER-1 INTRODUCTION
CHAPTER-2 CURRENT STATUS OF THE HRD FUNCTION; SOME FACTS.
CHAPTER-3 GENERAL OBSERVATIONS
CHAPTER-4 CAREER SYSTEMS
CHAPTER-5 WORK PLANNING
CHAPTER-6 DEVELOPMENT SYSTEM
CHAPTER-7 SELF-RENEWAL SYSTEM
CHAPTER-8 HRD CULTURE
CHAPTER-9 HRD FUNCTION
TABLE AND APPENDICES
1. INTRODUCTION
BRIEF DESCRIPTION ABOUT:
COMPANY LOCATIONS,
PRODUCTS AND SERVICES,
MANPOWER, TURN OVER, AND
MAIN CONCERNS AND TOP MANAGEMENT.
DATE AND REASON FOR UNDERTAKING THE AUDIT.
METHODOLOGY ADOPTED FOR THE STUDY:
DETAXILS OF SAMPLES, AND
AUDIT METHODS USED:
* Questionnaires administered,
* Number of individual interviews,
* level-wise records and reports examined,
* Group Interviews, etc..
HRD SYSTEMS (various sub-systems of HR audit; etc.)
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__________________________________________________ ___________________
2. CURRENT STATUS OF THE HRD FUNCTION
DETAILS ABOUT HRD FUNCTIONS:
STRUCTURE AND STAFFING OF HRD FUNCTION,
HRD DEPARTMENTs THRUST AREAS AND OBJECTIVES,
HIGHLIGHTS OF EXISTING HRD SYSTEMS AND SUB-SYSTEMS:
- Performance Appraisal,
- Potential Appraisal,
- Career Planning,
- Mentoring,
- Training,
- Job rotation,
- Quality circles, etc.
STRENGTHS AND WEAKNESSES OF THE HRD FUNCTION.
HRD NEEDS: AN OVERVIEW
Broad highlights of the areas that need attention.
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3. GENERAL OBSERVATIONS
SALIENT FESTURES OF THE COMPANY OBSERVED BY THE AUDITORS VIS-ภ-VIS PRESENT COMPETENCIES AND FUTURE POTENTIAL, ENCOMPASSING FOLLOWING DIMENTIONS OF HRD:
* Competence Building,
* Culture Building,
* Commitment Building.
PRESENT AND FUTURE BUSINESS CONCERNS - HIGHLIGHTS,
CONPETENCIES AND COMPETENCY REQUIREMENTS FOR FUTURE,
GENERAL OBSERVATIONS ABOUT COMPETENCIES FOUND.
GENERAL OBSERVATIONS ABOUT THE COMPETENCY PROMOTING MECHANISMS,
COMMITMENT AND MOTIVATIONAL PATTERNS,
COMMITMENT-AND MOTIVATION-PROMOTING MECHANISMS,
WORK CULTURE AND ORGANISATIONAL CULRURE,
CULTURE-BUILDING MECHANISMS
- A BRIEF ABOUT IMPORTANCE OF THE ABOVE 3 COMPONENTS FOLLOWED BY GENERAL STRENGTHS AND WEAKNESSES OF THE COMPANY RELATING TO HR AREAS, COVERING THE FOLLOWING, CAN BE GIVEN:
* Impact of existing situation in the industry on HRD Culture
of the organisation; Technological Innovations, Customers
expectations, Leadership change or change of Management or
any thing affecting HR function.
* Any excellent or weak parts of the HRD function.
* The general Strengths and Weaknesses of the Company.
*****
__________________________________________________ _____________________
4. CAREER SYSTEMS
FINDINGS OF THE AUDIT ON THE FOLLOWING SHOULD BE INCLUDED:
IMPORTANCE OF THE FOLLOWING,
MANPOWER PLANNINGF AND UTILISATION
- Strengths, Weaknesses and Recommendations.
RECRUITMENT
- Strengths, Weaknesses and Recommendations.
POTENTIAL APPRAISAL AND FAST TRACK
- Strengths, Weaknesses and Recommendations.
CAREER PLANNING AND DEVELOPMENT
- Strengths, Weaknesses and Recommendations.
SUCCESSIONAL PLANNING
- Strengths, Weaknesses and Recommendations.
*****
5. WORK PLANNING
INTRODUCTION (Concept of work planning and
the component of systems)
CONTEXTUAL ANALYSIS
_ Strengths, Weaknesses and Recommendations.
ROLE CLARITY
_ Strengths, Weaknesses and Recommendations.
PERFORMANCE APPRAISAL SYSTEM
_ Strengths, Weaknesses and Recommendations.
*****
__________________________________________________ ______________________
6. DEVELOPMENT SYSTEM
INTRODUCTION AND COMPONENTS
INDUCTION TRAINING
_ Strengths, Weaknesses and Recommendations.
TRAININGAND LEARNING SYSTEMS
_ Strengths, Weaknesses and Recommendations.
PERFORMANCE GUIDANCE AND DEVELOPMENT
_ Strengths, Weaknesses and Recommendations.
WORKER DEVELOPMENT
_ Strengths, Weaknesses and Recommendations.
OTHER MECHANISMS OF DEVELOPMENT
_ Strengths, Weaknesses and Recommendations.
*****
7. SELF-REENEWAL SYSTEM
INTRODUCTION
ROLE EFFICACY
_ Strengths, Weaknesses and Recommendations.
ORGANISATION DEVELOPMENT
_ Strengths, Weaknesses and Recommendations.
ACTION ORIENTED RESEARCH
_ Strengths, Weaknesses and Recommendations.
8. HRD CULTURE
INTRODUCTION
HRD CULTURE
_ Strengths, Weaknesses and Recommendations.
VALUES
_ Strengths, Weaknesses and Recommendations.
QUALITY ORIENTATION
_ Strengths, Weaknesses and Recommendations.
REWARDS AND RECOGNITION
_ Strengths, Weaknesses and Recommendations.
INFORMATION
_ Strengths, Weaknesses and Recommendations.
COMMUNICATION
_ Strengths, Weaknesses and Recommendations.
EMPOWERMENT THROUGH PARTICIPATION,
DECENTRALISATION, SHOPFLOOR COMMITTEES, ETC.
_ Strengths, Weaknesses and Recommendations.
*****
9. HRD FUNCTION
GENERAL OBSERVATIONS
INDUSTRIAL RELATIONS AND HR
_ Strengths, Weaknesses and Recommendations.
PERSONNEL POLICIES AND HRD
_ Strengths, Weaknesses and Recommendations.
HRD FUCTION STRUCTURE
_ Strengths, Weaknesses and Recommendations.
HRD DEPARTMENT - COMPETENCIES
_ Strengths, Weaknesses and Recommendations.
HRD STRATEGIES
_ Strengths, Weaknesses and Recommendations.
HRD ACTIVITIES AND PRIORITIES
_ Strengths, Weaknesses and Recommendations.
*****
From India, Hyderabad
40Human Resource Audit is a systematic assessment of the strengths, limitations, and developmental needs of its existing human resources in the context of organizational performance (Flamholtz, 1987)
NEED FOR H.R. AUDIT:
Top Management saw solutions to their problems, issues and
challenges in HRD to face business competition and to achieve
organizational goals.
PURPOSE OF H.R. AUDIT:
1. To examine and pinpoint strength and weaknesses related
to H.R. areas and Skills and Competencies to enable an organization to achieve its long-term and short-term goals.
2. To increase the effectiveness of the design and implementation of human resource policies, planning and programs.
3. To help human resource planners develop and update employment and program plans.
SCOPE OF HUMAN RESOURCE AUDIT
Whenever the H.R. Audit it taken up, the scope is decided. Audit need not be exhaustive, but should be focused on particular function of H.R.M. such as Training and Development, Performance Appraisal, Compensation, etc.. However, the objective and approach of H.R. Audit, more or less, remains the same, regardless of scope.
APPROACH TO H.R. AUDIT
1. Self directed surveys.
2. Task Forces within the organisation.
3. Out side Consultants.
AUDITING PROCESS: STEPS IN H.R. AUDIT
Auditing process varies from organizations to organizations.
Generally involves following STEPS:
STEP ONE: Briefing and Orientation:
Key Staff Members meet:
i. To discuss particular issues considered to be important.
ii. To chart out audit procedures, and
iii. To develop plans and program of audit.
STEP TWO: Scanning material information:
Scrutiny of all available information pertaining
to personnel, personnel handbooks and manuals,
guides, appraisal forms, computer capabilities and
any other related information.
STEP THREE: Surveying employees:
a. Interview with key managers, functional executives,
Top functionaries in the organisation and employees
Representatives, if necessary.
b. The purpose is to pinpoint issues of concern,
Present strengths, anticipated needs and managerial
views on human resources.
STEP FOUR: Conducting interviews:
I. What questions to be asked, are developed during
scanning of information.
II. It is better for H.R. Audit, if clarity about the key
factors of H.R.M. selected for audit and the related
questions that need to be examined.
STEP FIVE: Synthesising:
The data gathered is synthesized to present the
a. Current Situation.
b. Priorities.
c. Staff pattern, and
d. Issues identified.
STEP SIX; Reporting:
1. The results of the audit are discussed with
Managers and Staff Specialists, in several
rounds.
2. Important issues are identified for
inclusion in the formal Report.
H.R. AUDIT
TOPICS (AREAS) FOR INTERVIEW QUESTIONNAIRES
AND RELATED ASPECTS
1. INFORMATION
COVERAGE
SOURCE
ADEQUACY
GAPS
2. FORECASTING
METHODOLOGY
RELIABILITY
TESTABILITY
BUDGETING
TIME ORIENTATION
TECHNOLOGY PERSPECTIVE
3. TRAINING AND DEVELOPMENT
NEED ASSESSMENT
SELECTION CRITERIA
LEVELS COVERED AND FREQUENCY
INTERNAL VS EXTERNAL TRAINING
QUALITY CONSCIOUSNESS
CHANGING NEEDS
CLIMATE FOR SELF-DEVELOPMENT
4. PERFORMANCE APPRAISAL
VALIDITY OF APPRAISAL PROCESS
FITNESS
BENEFITS AND/OR
DRAW BACKS/PROBLEMS
KNOW-HOW OF APPRAISING
CLEAR OBJECTIVES
UNIFORMITY IN PROCESS
UNDERLYING BENCHMARKS
CONSISTENCY IN RATINGS
LINKAGES WITH PAY
FEEDBACK TO EMPLOYEES
CHANGING NEEDS
5. MANAGEMENT SUCCESSION PLANNING
POLICY FORMULATION
IDENTIFYING KEY POSITIONS
AVAILABILITY OF SUCCESSORS
MATCHING FUTURE NEEDS
RESPONSIBILITY FOR GROOMING
AND DEVELOPING
HANDLING NON/POOR PERFORMERS
6. COMPENSATION
APPROPRIATENESS OF POLICIES
COMPANY PHILOSOPHY
ADEQUACY OF REWARDS
NATURE OF JOB DESCRIPTIONS
FLEXIBILITY IN JOB EVALUATION SYSTEMS
CONTROL OVER COSTS
RATIONALE OF REWARD SYSTEM
OPPORTUNITIES FOR IMPROVEMENT
7. AFFIRMTIVE ACTION
EFFICIENCY OF ACTION PROGRAMMES
LESSONS FOR FUTURE
8. SPECIAL ASSIGNMEN
(OTHER H. R. FUNCTIONS)
CLARITY
COMMENTS
ACTIVITIES JURISDICTIO
9. NEED INTER-RELATIONSHIPS
UNIQUENESS
DISTINCTIVENESS
PRESENCE AND AWARENESS OF ABOUTCOMPANYS H. R. POLICY
CLARITY ON OBJECTIVES OF
H.R. AUDIT
FUTURE OUTLOOK ON PHILOSOPHY
* CAPABILITIES ON IMPLEMENTATION
10. THE STAFF FUNCTION
(THE H.R. STAFF)
EXPECTATION FROM HUMAN RESOURCE STAFF
DEGREE OF SATISFACTION
ADEQUACY
ATTIDUDE AND APPROACH
CAPABILITY AND POTENTIAL
SUGGFESTION FOR CHANGE
*****
CHALLENGES FOR H.R. DEPARTMENT
EIGHT CHALLENGES IDENTIFIED
BY DAVE ULRICH (1997)
1. GLOBALISATION INVOLVES
NEW MARKETS
NEW PRODUCTS
NEW MINDSETS
NEW COMPETENCIES
NEW WAYS OF THINKING
H. R. DEPATMENTS WILL NEED TO CREATE
MODELS AND PROCESSES FOR ACHIEVING:
GLOBAL ACTIVENESS
COMPETITIVENESS
EFFECTIVENESS
2. VALUE CHAIN FOR GLOBAL
COMPETITIVENESS AND HR SERVICES
BUILDING CUSTOMER-RESPONSIVENESS ORGANISATION THROUGH:
a. Innovation
b. Faster Decision Making
c. Price or Value Advantage
d. Effective linking with Suppliers
3. GROWTH OF ORGANISATION
By INCREASING Customers
BY MERGERS
BY ACQUISITION
BY JOINT VENTURES
HR ISSUES INVOLVED:
Having EXECUTIVES with BUSINESS MINDSET.
- For CUTING COST on hiring PEOPLE.
- For overcoming CHALLENGE in New Business.
4. BUILDING ORGANISATIONAL CAPABILITIES
Reviewing Existing Capabilities
New Capabilities.
Aligning Capabilities with Business Strategies.
5. MANAGING CHANGE
Adopting some new H.R. Practices.
Learning some New Skills and Attitudes.
Unlearning some existing skills and Attitudes.
Modifying Mindset of Executives and Employees.
6. MAKING TECHNOLOGY VIABLE
Finding out ways and means to
make technology successful.
7. ATTRACTING AND RETAINING
COMPETENT PEOPLE
Attracting Talented People.
Retaining them.
Utilising them suitably.
8. TRANSFORMING ORGANISATION
Creating fundamental and lasting changes.
*****
PRINCIPLES FOR HRM EFFECTIVENESS
SIX PRINCIPLES OF Dr. T. V. RAO ARE BASED ON HIS OBSERVATIONS AND PERSONAL KNOWLEDGE ABOUT THE 11 NATIONAL HRD AWARD WINNERS, DURING THE PERIOD FROM 1989 TO 1997.
DR. RAO OBSERVED, FOLLOWING COMMON TRAITS AND CHARACTERISTICS IN THE AWARDEES:
i. ROLE MAKERS NOT ROLE TAKERS.
II. INTEGRATION OF HR POLICIES AND PRACTICES
WITH COMPANY BUSINESS.
III.VERSATILITY FOR ONE ROLE TO OTHER.
IV.THRUST FOR LERNING.
V. ALL ARE NOT HR MANAGERS.
VI. READY TO HANDLE LINE RESPONSIBILITIES.
VII. HAVING HIGH APPLIED BEHAVIOURAL SCIENCE ORIENTATION.
ฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌฌ_________________________ _______________________________________________
SIX PRINCIPLES FOR BECOMING AN EFFECTIVE
HR MANAGER:
1. RESPECTING EACH OTHERS TIME.
2. BECOMING TRUSTWORTHY AND PROMOTING TRUSTWORTHINESS.
3. CONTINUOUS INTROSPECTION OF ROLES AND RESPONSIBILITY OF SELF AND THE GROUP.
4. LEARNING FROM NEIGHBOURS FOR CHANGE AND REFLECTION.
5. PAYING ADEQUATE ATTENTION TO THE CULTURE AND VALUES IN THE COMPANY AND THE COUNTRY.
6. USING PERSONNEL POLICIES FOR EMPOWERING EMPLOYEES AND PROMOTING MANAGERIAL EFFECTIVENESS AND NOT FOR BLOCKING CREATIVITY AND INNOVATION.
H. R. COMPENTENCIES
1. Knowledge of H.R. practices:
- Staffing.
- Development.
- Appraisal.
- Rewards.
- Organisational Planning.
- Communication, Etc...
2. Mastery of Human Resource:
- Every thing about H.R.
3. Knowledge of Business:
It means knowing about:
- Financial.
- Strategic.
- Technological variables and their influence on business.
4. Mastery over Change process and Change Management:
- Creating Meaning.
- Problem Solving.
- Innovation.
- Transformation.
- Relationship Influence.
- Role Influence.
5. Mastery of Business:
It means knowing about following capabilities of the
organisation:
- Business,
- Financial.
- Strategic.
- Technological.
- Organisational.
METHODS OF H.R. AUDIT
FOUR METHODS:
1. INDIVIDUAL INTERVIEW METHOD
2. GROUP INTERVIEW METHOD
3. WORKSHOP METHOD
4. QUESTIONNAIRE METHOD
FOR H.R. AUDIT, EITHER COMBINATION OF METHODS OR ALL THE METHODS ARE USED.
I. INDIVIDUAL INTERVIEW METHOD:
Top level management and senior managers are interviewed, individually. It helps in following:
A. Knowing their thinking about future plans and opportunities available
for the company.
B. Knowing about their expectations from the H.R.Audit.
C. Getting sensitive information pertaining to working styles and culture.
Union leaders, departmental heads, some strategic clients and informal leaders are also interviewed, individually.
In case of small companies, manned by professionals, interviews can be extended with selected employees from different levels and functions.
II. GROUP INTERVIEW METHOD:
Group interviews and discussions with the employees and/or executives of large companies for H.R. Audit, facilitate collection of information about effectiveness
of existing systems.
COMPOSITION OF GROUP:
1. Ideally, the group should be of 4 to 8 persons.
2. Group should consists of same or similar level of employees from cross functional areas.
3. In case of large organisation, group interviews for each functional area can be conducted, separately.
RELAVANT QUESTIONS THAT ARE ASKED IN INDIVIDUAL AND GROUP INTERVIEWS:
a. What do you see as the future growth opportunities and business directions of the company?
b. What skills and competencies does the company have which you are proud of?
b. What skills and competencies do you need to run your business, or to perform your role, more effectively at present?
c. What are the strengths of your HRD function?
d. What are the areas where your HRD function can do better?
e. What is good about your HRD subsystems, such as:
performance appraisal,
career planning,
job rotation, training,
quality circles,
induction training,
recruitment policies,
performance counseling,
worker development programmes, and
HRD departments?
f. What is weak about them? What can be improved?
g. What changes do you suggest to strengthen HRD in your company?
h. What do you think are the ways in which line managers
can perform more developmental roles?
III. WORKSHOP METHOD:
In some cases of H.R. Audit, instead of Individual and Group Interviews, Workshop Methods i.e. Large Scale Interactive Process (LSIP) is conducted, as under:
a. 30 to 300 participants can be asked to gather in a room.
b. They are divided in small groups.
c. They are asked to work either around Systems, Subsystems or
around different dimensions of HRD and do SWOT Analysis.
d. All the groups thereafter give presentations.
e. The H.R. Auditor compiles the views of all groups, makes
own observation, conclusions and prepares a report.
f. The H.R. Auditor announces the audit Results before submitting
the report to top Management.
LSIP WORKSHOP FOR HRD AUDIT ON
PERFORMANCE APPRAISAL SYSTEM
- RELEVANT QUESTIONS THAT HAVE BEEN ASKED
IN ONE OF THE HR AUDIT CONDUCTED BY
Dr. T.V. RAO:
i. What are the three good things in your performance
appraisal system?
ii. What is the one thing you would like to change in your
performance appraisal system?
iii. How would you critically evaluate the job rotation in
your company?
iv. What are the strengths and weaknesses of your training
policies and practices?
v. What three objectives would you use to describe the promotion
policies as they exist in your company?
IV. QUESTIONNAIRE METHOD:
Feed back about various dimensions of HRD, including the competency base of HRD staff, the styles of line managers, the implementation of various HRD systems, etc are obtained through a detailed questionnaire from individuals or groups for H.R. Audit. This method helps in benchmarking.
The process is as follows:
a. Detailed questionnaire is prepared by H.R. Auditor.
b. Individuals or groups are asked to assemble in a room or hall are explained the objective and process of HR Audit. They are then given questionnaires.
c. They submit the questionnaire, duly filled in, to the HR Auditor.
d. The HR Auditor compiles the feedbacks, makes observations, conclusions and recommendations.
e. Audit Results are informed to the Participants before
the report is submitted to the top management.
*****
OSERVATION, ANALYSIS OF SECONDATY DATA, REPORTS, MANUALS AND
OTHER PUBLISHED LITERATURE
OBSERVATION:
In addition to following the said methods, the HR Audit, needs to undertake following to assess the extent to which a congenial and supportive human welfare-oriented climate exists in the company:
1. Visit workplace, plant, machinery room, canteen, toilets, training rooms, hostels, hospital, school, living colony, etc., as applicable.
2. Observations can be made through a checklist.
ANALYSIS OF SECONDARY DATA:
This can provide an insight into the HRD assets and liabilities of the company. For example in the are of training, it may reveal as to whether employees are given training systematically or otherwise, the cost involved for training, the age group of employees attended training programmes, the purpose of training the employees etc..
ANALYSIS OF REPORTS, RECORDS, MANUALS AND OTHER PUBLISHED LITERATURE:
Study and analysis of said documents help in assessing the strengths and weakness of HRD.
*****
H.R.AUDIT METHODOLOGY
(INDIVIDUAL INTERVIEW METHOD
HOW TO INTERVIEW AND FRAME QUESTIONS?)
INTERVIEWS BEGIN WITH THE CEO AND
TOP MANAGEMENT
PURPOSE:
TO KNOW EXPECTATIONS OF CEO.
TO EXPLAIN SCOPE AND LIMITATIONS OF HRA.
TO GET COOPERATION FROM STAFF.
TO KNOW STRATEGIC LONG-TERM AND SHORT-TERM PLAN
OF THE ORGANISATION.
CEO SHOULD BE INTERVIEWED, SEPARATELY.
BRIEFING SESSION WITH CEO, COVERS:
HRD AUDIT AND ITS METHODOLOGY.
SCHEDULE OF H.R. AUDIT.
ASKING CEO OF HIS/HER EXPECTATIONS.
EXPECTATIONS, WHICH CANNOT BE MET.
IF DESIRED BY CEO, BRIEFING SESSION OF SENIOR AND TOP MANAGERS CAN BE HELD IN A GROUP:
BRIEFING WILL COVER FOLLOWING QUESTIONS-
WHAT IS HRD?
WHAT IS HRD AUDIT?
WHAT IS REQUIRED OF THE LINE MANAGERS IN INDIVIDUAL
OR GROUP INTERVIEWS?
WHAT HAVE BEEN THE FINDINGS OF GROUP.
HR AUDITOR TO TELL DURING BRIEFINGS TO CEO AND SENIOR/ TOP MANAGEMENT:
HR AUDIT IS NOT A PROBLEM-SOLVING EXERCISE.
IT WILL NOT GIVE FEEDBACK ABOUT INVIDIDUALS, BUT ABOUT STRUCTURE, COMPETENCY LEVELS, LEADERSHIP,
PROCESSES ETC.
IT IS COMPREHENSIVE, BUT CAN BE FOCUSED ON ONE OR MORE SYSTEMS.
ACTION ON HRD AUDIT REST WITH CEO.
FORMULATION OF QUESTIONS FOR INTERVIEW WITH CEO:
WILL BE BASED ON FUTURE PLANS OF THE COMPANY IN THE AREAS, THE COMPETENCY REQUIREMENTS AND PREPAREDNESS OF H.R.
DIVERSIFICATION,
NEW MARKET,
NEW BUSNESSES,
NEW AREAS
SCALE OF OPERATIONS,
EXPORT,
ANY CHANGE OR CONSOLIDATION.
INTERVIEW QUESTIONNAIRE:
WHAT DO YOU SEE AS THE COMPETENCY REQUIREMENTS FOR THE FUTURE?
WHAT COMPETENCY GAP DO YOU SEE
IN THE EXISTING STAFF?
WHAT NEW COMPETENCIES NEED TO BE DEVELOPED IN THE STAFF AND HOW DO YOU PROPOSE TO DO THAT?
INTERVIEW WITH THE HRD CHIEF
OBJECTIVE:
TO UNDERSTAND THE EXISTING SYSTEMS, STRUCTURE, SKILLS OF STAFF, STYLES OF TOP MANAGEMENT AND RELATIONSHIP WITH THE HRD PHILOSOPHY, PROBLEMS ETC..
TO UNDERSTAND HRD CHIEFS PERCEPTIONS:
1. ABOUT TOP MANAGEMENT AND THE SUPPORT REQUIRED FROM THEM.
2. ABOUT LINE MANAGERS, THEIR COMPETENCIES AND INVOLVEMENT IN HRD MATTERS.
3. ABOUT UNIONS AND THEIR INVOLVEMENT
IN HRD RELATED ISSUES.
THE COMPETENCIES OF HRD DEPARTMENT AND STAFF.
TO UNDERSTAND THE INTERNAL CUSTOMER FRAMEWORK OF HRD DEPARTMENT.
TO FIND OUT THE TIME DIVISION AND HOW TIME IS SPENT BY THE DEPARTMENT.
TO ASCERTAIN VIEWS ON HOW VARIOUS SYSTEMS ARE WORKING.
TO GET A SWOT ANALYSIS OF HRD SYSTEMS.
TO PREPARE A LIST OF DOCUMENTS VIS-ภ-VIS CHECKLIST
OF HR AUDIT.
FRAMING OF INTRVIEW QUESTIONNAIRE, BASED ON SAID DIMENTIONS FOR INTERVIEW WITH HRD CHIEF:
WHAT ARE THE OBJECTIVES OF YOUR DEPARTMENT?
WHEN AND HOW WAS IT SET UP?
WHAT ARE THE SIGNIFICANT MILESTONES
AND CONTRIBUTIONS OF THE DEPARTMENT?
WHAT ARE ITS CURRENT ACTIVITIES?
WHAT IS THE ORGANISATIONAL STRUCTURE?
HOW ARE THE STRATEGIES OF HR AND HR PLANS FORMULATED? WHAT IS THE ROLE OF THE DEPARTMENT IN STRATEGIC PLANNING?
WHAT ARE THE MAIN COMPETENCIES OF HRD STAFF? WHICH ARE THE COMPETENCIES THEY NEED TO DEVELOP?
What are the styles of Top and Senior level Managers?
To what extent the styles are helpful in developing learning culture?
What are the main blocks in developing learning culture?
How are the line managers supporting their juniors in developing? What needs to be done to make them more supportive?
What is the extent of support given by Top Management to HRD?
Is there a separate budget for HRD? How the same is allocated and what is the support of Top Management?
What is the HRD philosophy and values?
What the core competencies of each department and of the organisation
as a whole?
What is relationship between Personnel and HRD Departments? Is there need for further strengthening Integrating or differentiating the functions or activities of the two?
What the strengths and weakness in the following systems of your organisation:
i. Performance Appraisal.
ii. Counseling.
iii. Training.
iv. Career Planning and Development.
v. Succession Planning for strategic roles.
vi. Job Rotation.
vii. OD and Team Building interventions.
viii. Research and System Development.
ix. Mentoring.
x. Culture- Building Exercises.
xi. Quality improvement interventions.
*****
INTERVIEWS WITH LINE MANAGERS:
OBJECTIVE:
TO UNDERSTAND THEIR PERCEPTIONS ABOUT THEIR:
a. HRD needs.
b. Current status.
c. Expectations.
d. Competencies.
e. Commitment to HRD.]
f. Etc..
FORMULATION OF INTERVIEW QUESTIONNAIRE,
BASED ON ABOVE DIMENSIONS:
What are the HRD needs of your department and yourself?
What kinD of help do you get from HRD Department for competency and commitment building?
What the HRD System that you feel happy about?
What are the HRD System that you have contributed and contributing in achieving business goals?
What are the strengths of your HRD functions?
What are the weak areas of HRD?
What are your expectations from HRD?
What are the training needs of your department?
Are your training needs taken care of?
What are your career growth? Are they taken care of?
What do you see as future growth of the opportunities and business directions of the company?
What the core competencies are skills and knowledge the company has?
What skills and knowledge do you thing are required to run the business (or to perform better in your job)?
What is good about your HRD sub-systems: Performance Appraisal? Training? Job Rotation? Career Planning and development?
What should the HRD Department start doing or do more? What it should stop doing or do less.
*****
INTRVIEWS WITH WORKERS AND THEIR REPRESENTATIVES:
OBJECTIVE - TO FIND OUT:
THEIR CURRENT DEVELOPMENT NEEDS VIS-ภ-VIS BUSINESS GOALS OF THE COMPANY.
THEIR MOTIVATIONAL LEVEL.
CULTURE PREVAILING IN THE ORGANISATION.
GOOD AND BAD PRACTICES OF THE ORGANISATION.
FOMULATING INTERVIEW QUESTIONNAIRE,
BASED ON ABOVE:
How to you feel working in your organisation?
What are the strengths of your organisation?
What are the areas that need improvement?
What do you know about the business plans and opportunities for your company?
What do you know about the competition your company is facing today or is likely to face in the future?
What are some of the things your company should do to face the changing environment?
What is being done to ensure that you all have the skills needed to meet the current needs or future challenges of the company?
What motivates you here?
What more do you think needs to be done to help you contribute better to the organisation?
What kind of training do you get here? Are you satisfied? What more do you think need to be done in the interest of the company?
What are the facilities available for you in the plant and colony.
What do you think can be done to improve quality, save costs and make people feel happy to work for the company.
What are your expectations from the HRD Department? What are you happy about? What are your suggestions for them to serve you better.
*****
H.R.AUDIT METHODOLOGY
(GROUP INTERVIEW METHOD
HOW TO INTERVIEW AND FRAME QUESTIONS?)
GROUP INTERVIEWS
Advantages:
1. Wider coverage of issues.
2. Larger involvement of employees.
3. Verification of data and significant points.
4. Assessment of impact of feelings related to any issue and
problem or satisfiers and dissatisfiers.
GUIDELINES FOR SELECTING SAMPLES FOR
GROUP INTERVIEWS
Middle level Managers:
Minimum 10% and Maximum 100% group-wise or department-wise. In any audit, 100 Managers individually or in groups should be interviewed.
Supervisors and Staff:
10% or 5-6 groups from different functions and workplaces may be selected for audit.
Workmen:
To be interviewed in large groups. 5-10 groups are advisable.
GUIDELINES FOR INTERVIEWS IN GROUPS
A. Auditors to be introduced to the group by a representative from
H.R. Department.
B. Auditors to brief about the HRD Audit and its purpose and usefulness
to the company. Thereafter, questions relating to various systems can be
either asked questions or given a questionnaire to answer in about
30 Minutes and after collecting the feedbacks, discussion for another
about 30 minutes can be held to know the intensity of the feelings.
In either case, notes should be taken.
C. Auditors to consolidate the feedbacks.
FORMULATION OF QUESTIONNAIRE FOR GROUP INTERVIEWS:
As per your view, what are the Strengths and Weaknesses in respect of the following components of HRD:
Commitment of Top Management to HRD. Performance Review discussions.
Recruitment of competent people. Separations.
Retention of competent people. Quality Circles.
Identification of fast-track-employees. Participative Management.
Mentoring System. Shopfloor Committees.
Training (In-house & outside). Delegation.
Induction. Personnel Policies.
Career Planning. HRD Department and Staff.
Succession Planning. Communication.
Job Rotation. HRD Culture.
Performance Appraisal. Others.
INTERVIEW AREAS,
DIMENSIONS AND QUESTIONS
FOR ASSESSING HRD SYSTEMS
POSSIBLE INTERVIEW AREAS, DIMENSIONS, ISSUES AND QUESTIONS CAN BE IN THE FOLLOWING HRD SYSTEMS:
CAREER SYSTEM: Manpower Planning and Recruitment. Potential Appraisals and Promotions, Career Planning and Development.
WORK PLANNING: Role Analysis (goal setting), Contextual Analysis, Performance Appraisal.
DEVELOPMENT SYSTEM: Training and Learning, Performance Coaching/Counseling, 360-Degree performance feedback, Job Rotation/Mentoring, Staff (worker) Development.
SELF-RENEWAL SYSTEMS: Role efficacy, O.D., Action-Oriented Research.
CULTURE SYSTEMS: HRD Climate, Values, Quality orientation, Reward and Recognition, Information, Communication, Empowerment.
TWO EXAMPLES:
HRD SYSTEM/SUB-SYSTEM
POSSIBLE INTERVIE AREAS, DIMENSIONS, ISSUES AND QUESTIONS
WORK PLANNING:
Performance Appraisal
What is the existing system of performance appraisal?
What re the components?
What are the objectives?
What is it currently being used for?
How is it linked to other systems?
What are the roles played by the system?
Are the line managers taking it seriously? Are they trained for and are they constantly kept educated?
What are the strengths, Weaknesses and suggestions for improvement?
DEVELOPMENT
SYSTEM:
Training and Learning
What are the suggestions for improvement in the training?
What is the training budget?
Do line managers take the training seriously?
What is the process of sponsoring employees for training?
What are the other learning mechanisms being used for competency building?
What are the new learning mechanisms that can be used?
What are the attitudes of the line managers and the top management for training?
What are the strengths and Weaknesses of the training as it is being managed?
WHAT TO OBSERVE IN AUDIT
IN
HRD SYSTEM
TWO EXAMPLES:
HRD SYSTEM/
SUB-SYSTEM SECONDARY DATA
WORK PLANNING:
PERFORMANCE APPRAISAL
Study the pattern of ratings for leniency, rater wise trends and department-wise trends to ascertain the leniency and conservativeness in assessment. Study interdepartmental variations in ratings and rewards to ascertain the possible biases, etc.. Investigate this, only if necessary.
DEVELOPING SYSTEM:
TRAINING AND LEARNING
Assess the expenditure on training level-wise, department-wise and location-wise. Assess, if the training programmes sponsored are in line with the training needs stated in the appraisal formats. Analyse the training budget to assess, if the budgets are prepared appropriately and if the full expenditure is taken into consideration in the assessment.
WRITING H.R.AUDIT REPORT
OBJECTIVE:
1. TO HIGHLIGHT AREAS THAT NEEDS IMPROVEMENT.
2. TO BE ACTED UPON.
PURPOSE:
TO HELP THE TOP MANAGEMENT AND AND THE HRD STAFF TO RECOGNISE AND RETAIN THE COMPANYS STRENGTHS.
POINTS TO REMEMBER FOR WRITING REPORT:
A. SIMPLE LANGUARE SHOULD BE USED.
B. IT SHOULD BE SHORT AND PRECISE.
C. BULLET FORM HIGHLIGHTING THE STRENGTHS AND WEAKNESSES,SHOULD BE USED.
MODEL OUTLINE: HR AUDIT REPORT
EXECUTIVE SUMMARY
CHAPTER-1 INTRODUCTION
CHAPTER-2 CURRENT STATUS OF THE HRD FUNCTION; SOME FACTS.
CHAPTER-3 GENERAL OBSERVATIONS
CHAPTER-4 CAREER SYSTEMS
CHAPTER-5 WORK PLANNING
CHAPTER-6 DEVELOPMENT SYSTEM
CHAPTER-7 SELF-RENEWAL SYSTEM
CHAPTER-8 HRD CULTURE
CHAPTER-9 HRD FUNCTION
TABLE AND APPENDICES
1. INTRODUCTION
BRIEF DESCRIPTION ABOUT:
COMPANY LOCATIONS,
PRODUCTS AND SERVICES,
MANPOWER, TURN OVER, AND
MAIN CONCERNS AND TOP MANAGEMENT.
DATE AND REASON FOR UNDERTAKING THE AUDIT.
METHODOLOGY ADOPTED FOR THE STUDY:
DETAXILS OF SAMPLES, AND
AUDIT METHODS USED:
* Questionnaires administered,
* Number of individual interviews,
* level-wise records and reports examined,
* Group Interviews, etc..
HRD SYSTEMS (various sub-systems of HR audit; etc.)
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__________________________________________________ ___________________
2. CURRENT STATUS OF THE HRD FUNCTION
DETAILS ABOUT HRD FUNCTIONS:
STRUCTURE AND STAFFING OF HRD FUNCTION,
HRD DEPARTMENTs THRUST AREAS AND OBJECTIVES,
HIGHLIGHTS OF EXISTING HRD SYSTEMS AND SUB-SYSTEMS:
- Performance Appraisal,
- Potential Appraisal,
- Career Planning,
- Mentoring,
- Training,
- Job rotation,
- Quality circles, etc.
STRENGTHS AND WEAKNESSES OF THE HRD FUNCTION.
HRD NEEDS: AN OVERVIEW
Broad highlights of the areas that need attention.
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3. GENERAL OBSERVATIONS
SALIENT FESTURES OF THE COMPANY OBSERVED BY THE AUDITORS VIS-ภ-VIS PRESENT COMPETENCIES AND FUTURE POTENTIAL, ENCOMPASSING FOLLOWING DIMENTIONS OF HRD:
* Competence Building,
* Culture Building,
* Commitment Building.
PRESENT AND FUTURE BUSINESS CONCERNS - HIGHLIGHTS,
CONPETENCIES AND COMPETENCY REQUIREMENTS FOR FUTURE,
GENERAL OBSERVATIONS ABOUT COMPETENCIES FOUND.
GENERAL OBSERVATIONS ABOUT THE COMPETENCY PROMOTING MECHANISMS,
COMMITMENT AND MOTIVATIONAL PATTERNS,
COMMITMENT-AND MOTIVATION-PROMOTING MECHANISMS,
WORK CULTURE AND ORGANISATIONAL CULRURE,
CULTURE-BUILDING MECHANISMS
- A BRIEF ABOUT IMPORTANCE OF THE ABOVE 3 COMPONENTS FOLLOWED BY GENERAL STRENGTHS AND WEAKNESSES OF THE COMPANY RELATING TO HR AREAS, COVERING THE FOLLOWING, CAN BE GIVEN:
* Impact of existing situation in the industry on HRD Culture
of the organisation; Technological Innovations, Customers
expectations, Leadership change or change of Management or
any thing affecting HR function.
* Any excellent or weak parts of the HRD function.
* The general Strengths and Weaknesses of the Company.
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__________________________________________________ _____________________
4. CAREER SYSTEMS
FINDINGS OF THE AUDIT ON THE FOLLOWING SHOULD BE INCLUDED:
IMPORTANCE OF THE FOLLOWING,
MANPOWER PLANNINGF AND UTILISATION
- Strengths, Weaknesses and Recommendations.
RECRUITMENT
- Strengths, Weaknesses and Recommendations.
POTENTIAL APPRAISAL AND FAST TRACK
- Strengths, Weaknesses and Recommendations.
CAREER PLANNING AND DEVELOPMENT
- Strengths, Weaknesses and Recommendations.
SUCCESSIONAL PLANNING
- Strengths, Weaknesses and Recommendations.
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5. WORK PLANNING
INTRODUCTION (Concept of work planning and
the component of systems)
CONTEXTUAL ANALYSIS
_ Strengths, Weaknesses and Recommendations.
ROLE CLARITY
_ Strengths, Weaknesses and Recommendations.
PERFORMANCE APPRAISAL SYSTEM
_ Strengths, Weaknesses and Recommendations.
*****
__________________________________________________ ______________________
6. DEVELOPMENT SYSTEM
INTRODUCTION AND COMPONENTS
INDUCTION TRAINING
_ Strengths, Weaknesses and Recommendations.
TRAININGAND LEARNING SYSTEMS
_ Strengths, Weaknesses and Recommendations.
PERFORMANCE GUIDANCE AND DEVELOPMENT
_ Strengths, Weaknesses and Recommendations.
WORKER DEVELOPMENT
_ Strengths, Weaknesses and Recommendations.
OTHER MECHANISMS OF DEVELOPMENT
_ Strengths, Weaknesses and Recommendations.
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7. SELF-REENEWAL SYSTEM
INTRODUCTION
ROLE EFFICACY
_ Strengths, Weaknesses and Recommendations.
ORGANISATION DEVELOPMENT
_ Strengths, Weaknesses and Recommendations.
ACTION ORIENTED RESEARCH
_ Strengths, Weaknesses and Recommendations.
8. HRD CULTURE
INTRODUCTION
HRD CULTURE
_ Strengths, Weaknesses and Recommendations.
VALUES
_ Strengths, Weaknesses and Recommendations.
QUALITY ORIENTATION
_ Strengths, Weaknesses and Recommendations.
REWARDS AND RECOGNITION
_ Strengths, Weaknesses and Recommendations.
INFORMATION
_ Strengths, Weaknesses and Recommendations.
COMMUNICATION
_ Strengths, Weaknesses and Recommendations.
EMPOWERMENT THROUGH PARTICIPATION,
DECENTRALISATION, SHOPFLOOR COMMITTEES, ETC.
_ Strengths, Weaknesses and Recommendations.
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9. HRD FUNCTION
GENERAL OBSERVATIONS
INDUSTRIAL RELATIONS AND HR
_ Strengths, Weaknesses and Recommendations.
PERSONNEL POLICIES AND HRD
_ Strengths, Weaknesses and Recommendations.
HRD FUCTION STRUCTURE
_ Strengths, Weaknesses and Recommendations.
HRD DEPARTMENT - COMPETENCIES
_ Strengths, Weaknesses and Recommendations.
HRD STRATEGIES
_ Strengths, Weaknesses and Recommendations.
HRD ACTIVITIES AND PRIORITIES
_ Strengths, Weaknesses and Recommendations.
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From India, Hyderabad
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