What is HRD Audit?

What is HRD Audit? Why should it be done? Can it be used as an intervention for the development of the organization? Briefly discussing its limitations, explain the ways and means of making this process more effective and efficient for development of the organization. Explain with suitable organizational examples. Briefly describe the organization you are referring to.

Human Resource Audit is the critical analysis of the existing human resource within the orgasnisation. To be able to do that, the audit will have to be served with the data that is quantitative, qualitative, as well as comprehensive. In others words, the success of this stage of human resource planning solely rests upon the manner in which personnel records and other information are maintained. It is from the base of the current situation that the human resource audit is to take in order that the future must be planned. Hence the information needs of such a critical exercise must be met.
ESSENTIAL STEPA IN HRA (Human Resource Audit)
Though the process would vary from organisation to organisation, generally it involves the following steps:
1) Briefing and orientation : This is a preparatory meeting of key staff members to
i) discuss particular issues considered to be significant,
ii) chart out audit procedures, and
iii) develop plans and programmed of audit.
2) Scanning material information : This involves scrutiny of all available information pertaining to the personnel, personnel handbooks and manuals, guides, appraisal forms, material on recruitment, computer capabilities if a computer and all such other information considered material.
3) Surveying employees : surveying employees involves interview with key managers, functional executives, top functionaries in the organisation, and even employees’ representatives, if necessary. The purpose is to pinpoint issues of concern, present strengths, anticipated needs and managerial philosophies on human resources.
4) Conducting interviews : What questions to ask? The direction which audit must follow is based on issues developed through the scanning of information gathered for the purpose. However, the audit efforts will get impetus if clarity is obtained as to the key factors of human resource management selected for audit and the related questions that need to be examined.
The following model depicts the various key factors on which information needs during human resource audit need to be focused. It is developed form the interview guide used in an electronics company. It covers a wide range of topics of profound interest relation to human resource management practices in the organisation.
The question to be asked on these topics needs to be framed very carefully. These questions may be developed by the interviewer/audit team on the following aspects as indicated against each topic.

The process of the interview and the sequence of questions are often as important as their content. Another effective method is the ‘focus interview’. A focus interview involves meeting between a trained interviewer and selected members of the organisation. Here the interviewer asks a variety of questions planned and prepared in the same fashion as the interview questionnaire explained earlier.
5) Synthesizing : The data thus gathered is synthesized to present the
• Current situation
• Priorities
• Staff pattern, and
• Issues identified
Similarly, future needs are identified and appropriate criteria developed for spot-lighting the human resource priorities and specific recommendations made.
6) Reporting: just as the planning meetings of briefing and orientation, the results of the audit are discussed within several rounds with the mangers and staff specialists In the process, the issues that get crystallized are brought to the notice of the management in a formal report.
In conclusion, human resource audit is an important approach to human resource planning. It is practical because if correctly conducted, it should increase the effectiveness of the design and implementation of human resource policies, planning and programmers. A periodic and systematic audit helps human resource planners develop and update employment and programmed plans.

PROCESS OF HRD AUDIT
Individual interviews :- The auditors normally make it a point to interview the top level management and senior managers individual interviews are a must capturing their thinking about the future plans and opportunities available for the company. Also, by virtue of occupying strategic positions, the top management has the required perspective for good HRD audit. Thus a good HRD audit begins with individual interviews of the top management. Individual interviews are also essential when sensitive information has to be obtained. Such information pertains to working styles and culture. Union leaders, departmental heads, some strategic clients and informal leaders are interviewed individually. In addition, if the organization is small and is largely manned by professionals, the coverage can be enlarged to include interviews with randomly selected representative sample of employees from different levels and functions.

Group Interviews
Normally, in an audit of companies having thousands of employees, it is not feasible to meet everyone individually. It is my experience the group discussions and interviews serve as a good mechanism for collecting information about the effectiveness of existing system. Group interviews are conducted normally for groups of four to eight individuals. It is preferable to have employees drawn from same or similar levels. This is because in Asian cultures there is likely to be some inhibition on part of junior employees to freely express their views in the presence of their seniors. However, it is quire common to give cross-cross-functional representation of employees in the same group. If the organization is large, an attempt is made to conduct group interviews for function separately to keep the levels homogeneous.
In both individuals and group interviews for HRD, audit the following open-ended questions are normally asked:
1. What do you see as the future growth opportunities and business to run your business, or directions of the company?
2. What skills and competencies does the company have which you are proud of?
3. What skills and competencies do you need to run your business, or to perform your role, more effectively at present?
4. What are the strengths of your HRD function?
5. What are the areas where your HRD function can do better?
6. 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?
7. What is weak about them ? What can be improved?
8. What changes do you suggest to strengthen HRD in your company?
9. What do you think are the ways in which line managers can perform more development roles?

Workshop
In some cases individual and group interviews are substituted by Large Scale Interactive Process (LSIO) workshop. In such workshops a large number of participants ranging from 30-300 can be gathered in a room and asked to do the HRD audit. Normally the participants work in small groups either around various sub systems or around different dimensions of HRD, do a SWOT analysis and make presentation. The Workshops also can be used to focus so specifically on individual HRD systems like performance appraisal. The workshop outcomes have been found to be very good.
HRD audit, if conducted through participatory methods, in itself may initiate the change process. Even if it does not, it is a potential diagnostic tool and can provide a lot of information to the top management on employee related process and help them plan further interventions.

QUESTIONNAIRE METHOD
A comprehensive questionnaire, is administrated to company executives. The questionnaire can be administrated individually or in a group. It is useful to call groups of respondents, selected randomly, to a room and explain the objectives and the process HRD audit and administer the questionnaire then and there itself. This ensures uninterrupted answering of the questionnaire and provides scope for getting more credible data due to the personal explanations given by the auditors.
A number of question developed. These questionnaires attempt to assess various dimensions of HRD including the competency base of HRD staff, the styles of line managers the implementation of various HRD systems etc.
The most significant use of the questionnaire method is that it helps in benchmarking.

OBSERVATION
In addition to the above methods, the auditors should physically visit the workplace including the plant, the machinery room, canteen, toilets, training rooms, hostels, hospital, school, living colony etc. These visits and observations are meant to assess the extent to which a congenial and supportive human welfare oriented climate exists in the company. This is essential because employees are not likely to give their best if they do not in good surroundings, their facilities and their working conditions are poor. The observations can be made using a checklist of questions.
ANALYSIS OF SECONDARY DATA
Analysis of Secondary Data can give a lot of insights into the HRD assets and liabilities of the company. For example, in a company that had about 50 HR people, only two had the required technical training in HRD. When analysis of training of programmes attended by others was carried out, it was found that a large number of them did not attend any HRD programme in the last five years. Such analysis of secondary data can give many insights. Analysis of age profiles of the employees, of the training attended, of the minutes of the meetings held etc. help in determining the assets and liabilities. Such an analysis should also pay attention to the costs incurred by the company in terms of maintaining the HRD infrastructure.

ANALYSIS OF REPORTS, RECORDS MANUALS AND OTHER PUBLISHED LITERATURE
Published literature of the company, such as manual reports, marked handouts, training calendar, personnel manual and various circular issued from time to time are also likely to help in assessing the strengths and weaknesses of HRD.