Discuss the concept of HRD Audit. Explain the process of HRD Audit
being done in your organisation or an organisation you are familiar with.
Describe how HRD Audit helps in improving organizational efficiency. Briefly
describe the organisation you are referring to.
Answer. HRD audit is a comprehensive evaluation of the current HRD strategies,
structure, systems, styles and skills in the context of the short and long-term business
plans of a company. It attempts to find out the future HRD needs of the company after
assessing the current HRD activities and inputs.
I am familiar with Hoovers, Inc. It delivers comprehensive company, industry, and
market intelligence that drives business growth. Their database of 12 million
companies, with in-depth coverage of 40,000 of the world's top business enterprises, is
at the core of our business tools and services that customers find vital to their business
operations. Hoover's editorial staff of some 80 editors and researchers brings vital
business information and knowledge to its coverage, updating the site daily to bring our
visitors and subscribers the most up-to-date business information in the industry.
Process of HRD Audi at Hoovers
HRD audit starts with an understanding of the future business plans and corporate
strategies. While HRD audit can be done even in organizations that lack well
formulated future plans and strategies it is most effective as a tool when the
organization already has such long-term plans.
The HRD audit starts with the following questions:
Where does the company want to be ten years from now, three years from now
one year from now??
The top management needs to provide the answer to this question. If there are any
long-term plan documents they are also reviewed. On the basis of answers, the
consultants finalize the subsequent audit strategies and methodology. They identify the
nature of the competencies the organization needs to develop in order to achieve its
long term, five to 10 years plans.
What is the current skill base-of the employees in the company in relation to the
various roles and role requirements.
This is assessed through an examination of the qualifications of employees, job
descriptions training programmes attended, and so on. Besides this interviews are
conducted to identify the skill gap in the organization. Training needs and performance
appraisal forms provide insights into the competency and other skill requirements.
What are the HRD subsystems available today to help the organization
competency base for the present, immediate future and long-term goals?
The auditors identify various HRD subsystems that are available to ensure the
availability utilization and development of skills and other competencies in the
company. The framework for evaluating these HRD subsystems have been presented
earlier where all the component HRD systems have been presented. These systems
and other HRD tools that an organization may be using are studied in details for
arriving at the systems maturity score.
What is the current level of effectiveness of these systems in developing people
and ensuring that human competencies are available in adequate levels in the
company?
The consultants assess the effectiveness of each system. For example, the
effectiveness of performance appraisal system is assessed by discussing with
employees, individually and in groups, about the efficacy of the systems. The auditors
look at the appraisal forms, at the.
linkages between appraisal and framing, conduct questionnaire surveys to assess the
extent to which coaching and other components on other appraisals are being utilized
and also conduct systems.
Is the HRD structure existing in the company adequate enough to manage the
HRD in the company??
At this stage, the auditors or consultants examine whether the current HRD structure
can handle the pressing and future HRD needs of the company. They examine the
existing skill base of the HRD staff, their professional preparation, attitudes, values,
developmental needs, the line manager’s perception regarding them and so on. In
addition to the full-time staff, the consultants also assess the HRD structure in terms of
the use of task forces and other mechanisms.
Are the top management and senior manager styles of managing people in tune
with the learning culture?
Here the consultants examine the leadership styles, human relations skills and so on,
of senior managers. The extent to which their styles facilitate the creation of a learning
environment are examined.
HRD Audit examines Linkages with other Systems:
Attempts Total Quality Management (TQM), personnel policies, strategic planning etc.,
evaluates HRD strategy, structure, system, staff, skill, style and consultants, make
suggestions the basis of evaluation about the future HRD strategies required by the
company. The structure the company needs to develop new competencies, the systems
that need to be strengthened, and the styles and culture that have compatibility with the
HRD process.
HRD Audit is Business-driven: HRD audit keeps business goals in focus. At the same
time, it attempts to bring in professionalism in HRD. In keeping the business focus at
the centre, HRD audit attempts to evaluate HRD strategy, structure, system, staff, skill
and style and their appropriateness.
How HRD Audit helps in improving organizational efficiency
It can get the top management to think in term of strategic and long-term
business plans
Ironically, it may seem that HRD audit should begin with such strategic plans, but in
some cases it has propelled the top management to formulate such plans. Another
aspect in this regard is that people cannot participate in HRD audit without some
sharing of these plans. The audit, therefore, has forced the top management to share
their plans across the organization resulting in increased involvement and commitment
of employees. In a few system of annual planning and sharing of the business plans
with management staff, to enable them to plan their own activities and competency
development programmes, have been initiated.
Changes in the styles of the top management
Any successful HRD company has an excellent learning environment. Thus one of
HRD is to create a learning organization. A learning culture can be created managers
of the company exhibit an HRD orientation, ability to convert and conflicts and
problems as learning opportunities and so on. Some top level India have been found to
block the motivation and learning of employees through coercive, autocratic and even
paternalistic styles of management. HRD audit highlights styles of management thereby
pointing out the difficulties in developing and employees for the future. This has helped
in providing subtle feedback to the top management and initiating a change process.
Role clarity of HRD department and the role of line managers in HRD
In almost all cases, the HRD audit has been found to draw the attention of employees
at various levels to the important role of the HRD department: current as well as the
future, better role clarity of the HRD department and the HRD function, resulting in
increased understanding of line managers about their HRD role and the uniform results
of HRD audit. While the degree may vary from organization to organization depending
on various factors, this exercise has favorable impact on employee productivity.
Improvements in HRD systems
HRD audit has helped most organizations in measuring the effectiveness of their HRD
systems, and in designing or redesigning HRD systems, the most frequently changed
or renewed system include performance appraisal, induction training, job rotation care
planing and promotion policies, monitoring communication and training. A number of
organizations have changed or strengthened one or more of their HRD subsystem as a
result of HRD audit.
Increased focus on human resources and human competencies
(One of the results of HRD audit is to focus on new knowledge attitudes and skills
required by the employees. Comments are made about the technical, managerial,
human and conceptual competencies of staff at various levels. This differentiation has
been found to help organizations in identifying and focusing sharply on the competency
requirements and gaps. The audit establishes a system of role clarity and fixing of
accountability. This may take place through separate role-clarity exercises or through
the development of and appropriate performance appraisal systems. In any case, the
attention of the organization gets focused on developing the competency base of the
organization. More sensitivities are developed towards missing aspects of
competencies. For example, one organization was found to neglect the human relations
competencies of their staff which led to quite a few problems and wastage of time. With
HRD audit many of these were streamlined. The various HRD policies also got
strengthened.
Better recruitment policies and more professional staff
HRD audit proposes the competence base required by tile organization. It gives
direction for competency requirements of employees at various levels, thus providing a
base for recruitment policies and procedures. As a result, in some companies, new
recruitment and retention strategies have been worked out. In other companies, the
audit as led to strengthening recruitment policies and procedures.?
More planning and more cost-effective training
HRD audit has been found to assist in assessing the returns on training. One of the
aspects emphasized in the HRQ audit is to calculate the investments made in training
and ask questions about the returns. The process of identifying training needs, and
utilization of training and learning for organization growth development are assessed.
As direct investments are made in training, any cost benefit analysis draws the
attention of the management and HRD managers to review the training function with
relative ease. For example, one organization has strengthened its training function by
introducing a new system of post training follow up and dissemination of knowledge to
others through seminars and action plans. Many organizations have developed training
policies and systematized their training function. Training needs assessment also has
become more scientific in these organizations.?
Strengthening accountability through appraisal system and other mechanism
HRD audit can give significant inputs about existing state of accountability of can be
assessed through performance appraisal as well as through the work culture and
cultural dimensions. A number of organizations have introduced systems of planning,
sharing of experience and documenting the accountability of staff. HRD audit to the
chaining of appraisal systems.
Streamlining of other management practices
Most often HRD audit points out the strengths and weakness in some of the
management systems existing in the organization. It also indicates the absence of
system, which enhance productivity and utilization of the existing competency base,
e.g., MIS, rules and procedure, etc., which may have an effect on the functioning of
employees. In a few cases helped the management to look at some subsystems and
work procedures. Preparation of a manual for delegation of powers, clarification of
roles and responsibilities, developing or strengthening the manuals of financial and
accounting procedures and systems and the information systems ad sharing of
information are some of the resultant activities.
TQM interventions
Quality improvements and establishing TQM systems require a high degree of
employees. In a number of cases HRD audit has pointed out to the linkages between
TQM and other quality programmes, and helped in strengthening the same.
Due to improvements in the training systems, enhancement of the quality of
strengthening of the appraisals system, TQM programmes also get improved. In a few
organizations performance appraisal have been changed to integrate quality internal
customer satisfaction into the appraisal systems. Thus HRD audit leads to the
strengthening of quality systems.
It can enhance the ROI (Return on Investment) of the HR function
In addition to all the above points, HRD audit aligns the HR function and activities with
business goals. In the process it eliminates non-value adding HR systems, activities
and processes and enhances the value-adding activities and processes. It reduces
non-productive assets the HR department (For example, under utilized training centers,
ill-implemented appraisal systems, etc.) and sharpens the focus of the HR function to
get better results. The main contribution of HRD audit is to focus on value-adding HRD.
Showing posts with label HRD Audit. Show all posts
Showing posts with label HRD Audit. Show all posts
Wednesday, June 3, 2009
Describe HRD audit and discuss its significance in an organizational set up.
Describe HRD audit and discuss its significance in an organizational set up. Describe the methodology of HRD audit being practiced in your organization or an organization you are acquainted with.
HRD audit is a comprehensive evaluation of the current HRD strategies, structure, systems, styles and skills in the context of the short and long-term business plans of a company. It attempts to find out the future HRD needs of the company after assessing the current HRD activities and inputs.
The audit itself is a diagnostic tool, not a prescriptive instrument. It will help you identify what you are missing or need to improve, but it can’t tell you what you need to do to address these issues. It is most useful when an organization is ready to act on the findings, and to evolve its HR function to a level where its full potential to support the organization’s mission and objectives can be realized.
Why Do An HR Management Audit ?
An HR Management Audit can answer important questions for your organization, such as:
• Are you currently legally at risk anywhere in the HR part of our business?
• Is the HR function structured to the company’s best competitive advantage?
• Is Human Resources providing the required services?
• Is Human Resources providing leading-edge, “best practices” services?
• Are the needs of the organization effectively addressed?
• Are we maximizing our resources to get the best level of productivity?
• Are we strategically positioned for the future?
I am familiar with Hoovers, Inc. It delivers comprehensive company, industry, and market intelligence that drives business growth. Their database of 12 million companies, with in-depth coverage of 40,000 of the world's top business enterprises, is at the core of our business tools and services that customers find vital to their business operations. Hoover's editorial staff of some 80 editors and researchers brings vital business information and knowledge to its coverage, updating the site daily to bring our visitors and subscribers the most up-to-date business information in the industry.
PROCESS OF HRD AUDIT AT HOOVERS
HRD audit starts with an understanding of the future business plans and corporate strategies. While HRD audit can be done even in organizations that lack well formulated future plans and strategies it is most effective as a tool when the organization already has such long-term plans. The HRD audit starts with the following questions:
1. Where does the company want to be ten years from now, three years from now one year from now? ¬
The top management needs to provide the answer to this question. If there are any long-term plan documents they are also reviewed. On the basis of answers, the consultants finalize the subsequent audit strategies and methodology. They identify the nature of the competencies the organization needs to develop in order to achieve its long term, five to 10 years plans.
2. What is the current skill base-of the employees in the company in relation to the various roles and role requirements.
This is assessed through an examination of the qualifications of employees, job descriptions training programmes attended, and so on. Besides this interviews are conducted to identify the skill gap in the organization. Training needs and performance appraisal forms provide insights into the competency and other skill requirements.
3. What are the HRD subsystems available today to help the organization competency base for the present, immediate future and long-term goals?
The auditors identify various HRD subsystems that are available to ensure the availability utilization and development of skills and other competencies in the company. The framework for evaluating these HRD subsystems have been presented earlier where all the component HRD systems have been presented. These systems and other HRD tools that an organization may be using are studied in details for arriving at the systems maturity score.
4. What is the current level of effectiveness of these systems in developing people and ensuring that human competencies are available in adequate levels in the company?
The consultants assess the effectiveness of each system. For example, the effectiveness of performance appraisal system is assessed by discussing with employees, individually and in groups, about the efficacy of the systems. The auditors look at the appraisal forms, at the.
linkages between appraisal and framing, conduct questionnaire surveys to assess the extent to which coaching and other components on other appraisals are being utilized and also conduct systems.
5. Is the HRD structure existing in the company adequate enough to manage the HRD in the company?
At this stage, the auditors or consultants examine whether the current HRD structure can handle the pressing and future HRD needs of the company. They examine the existing skill base of the HRD staff, their professional preparation, attitudes, values, developmental needs, the line manager’s perception regarding them and so on. In addition to the full-time staff, the consultants also assess the HRD structure in terms of the use of task forces and other mechanisms.
6. Are the top management and senior manager styles of managing people in tune with the learning culture?
Here the consultants examine the leadership styles, human relations skills and so on, of senior managers. The extent to which their styles facilitate the creation of a learning environment are examined.
7. HRD Audit examines Linkages with other Systems:
Attempts Total Quality Management (TQM), personnel policies, strategic planning etc., evaluates HRD strategy, structure, system, staff, skill, style and consultants, make suggestions the basis of evaluation about the future HRD strategies required by the company. The structure the company needs to develop new competencies, the systems that need to be strengthened, and the styles and culture that have compatibility with the HRD process.
8. HRD Audit is Business-driven: HRD audit keeps business goals in focus. At the same time, it attempts to bring in professionalism in HRD. In keeping the business focus at the centre, HRD audit attempts to evaluate HRD strategy, structure, system, staff, skill and style and their appropriateness.
HRD audit is a comprehensive evaluation of the current HRD strategies, structure, systems, styles and skills in the context of the short and long-term business plans of a company. It attempts to find out the future HRD needs of the company after assessing the current HRD activities and inputs.
The audit itself is a diagnostic tool, not a prescriptive instrument. It will help you identify what you are missing or need to improve, but it can’t tell you what you need to do to address these issues. It is most useful when an organization is ready to act on the findings, and to evolve its HR function to a level where its full potential to support the organization’s mission and objectives can be realized.
Why Do An HR Management Audit ?
An HR Management Audit can answer important questions for your organization, such as:
• Are you currently legally at risk anywhere in the HR part of our business?
• Is the HR function structured to the company’s best competitive advantage?
• Is Human Resources providing the required services?
• Is Human Resources providing leading-edge, “best practices” services?
• Are the needs of the organization effectively addressed?
• Are we maximizing our resources to get the best level of productivity?
• Are we strategically positioned for the future?
I am familiar with Hoovers, Inc. It delivers comprehensive company, industry, and market intelligence that drives business growth. Their database of 12 million companies, with in-depth coverage of 40,000 of the world's top business enterprises, is at the core of our business tools and services that customers find vital to their business operations. Hoover's editorial staff of some 80 editors and researchers brings vital business information and knowledge to its coverage, updating the site daily to bring our visitors and subscribers the most up-to-date business information in the industry.
PROCESS OF HRD AUDIT AT HOOVERS
HRD audit starts with an understanding of the future business plans and corporate strategies. While HRD audit can be done even in organizations that lack well formulated future plans and strategies it is most effective as a tool when the organization already has such long-term plans. The HRD audit starts with the following questions:
1. Where does the company want to be ten years from now, three years from now one year from now? ¬
The top management needs to provide the answer to this question. If there are any long-term plan documents they are also reviewed. On the basis of answers, the consultants finalize the subsequent audit strategies and methodology. They identify the nature of the competencies the organization needs to develop in order to achieve its long term, five to 10 years plans.
2. What is the current skill base-of the employees in the company in relation to the various roles and role requirements.
This is assessed through an examination of the qualifications of employees, job descriptions training programmes attended, and so on. Besides this interviews are conducted to identify the skill gap in the organization. Training needs and performance appraisal forms provide insights into the competency and other skill requirements.
3. What are the HRD subsystems available today to help the organization competency base for the present, immediate future and long-term goals?
The auditors identify various HRD subsystems that are available to ensure the availability utilization and development of skills and other competencies in the company. The framework for evaluating these HRD subsystems have been presented earlier where all the component HRD systems have been presented. These systems and other HRD tools that an organization may be using are studied in details for arriving at the systems maturity score.
4. What is the current level of effectiveness of these systems in developing people and ensuring that human competencies are available in adequate levels in the company?
The consultants assess the effectiveness of each system. For example, the effectiveness of performance appraisal system is assessed by discussing with employees, individually and in groups, about the efficacy of the systems. The auditors look at the appraisal forms, at the.
linkages between appraisal and framing, conduct questionnaire surveys to assess the extent to which coaching and other components on other appraisals are being utilized and also conduct systems.
5. Is the HRD structure existing in the company adequate enough to manage the HRD in the company?
At this stage, the auditors or consultants examine whether the current HRD structure can handle the pressing and future HRD needs of the company. They examine the existing skill base of the HRD staff, their professional preparation, attitudes, values, developmental needs, the line manager’s perception regarding them and so on. In addition to the full-time staff, the consultants also assess the HRD structure in terms of the use of task forces and other mechanisms.
6. Are the top management and senior manager styles of managing people in tune with the learning culture?
Here the consultants examine the leadership styles, human relations skills and so on, of senior managers. The extent to which their styles facilitate the creation of a learning environment are examined.
7. HRD Audit examines Linkages with other Systems:
Attempts Total Quality Management (TQM), personnel policies, strategic planning etc., evaluates HRD strategy, structure, system, staff, skill, style and consultants, make suggestions the basis of evaluation about the future HRD strategies required by the company. The structure the company needs to develop new competencies, the systems that need to be strengthened, and the styles and culture that have compatibility with the HRD process.
8. HRD Audit is Business-driven: HRD audit keeps business goals in focus. At the same time, it attempts to bring in professionalism in HRD. In keeping the business focus at the centre, HRD audit attempts to evaluate HRD strategy, structure, system, staff, skill and style and their appropriateness.
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.
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.
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