Professional Documents
Culture Documents
Tarandeep Singh
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To start with?
The unexamined work life is not worth living Socrates (469-399 BC)
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What is an HR Audit?
An HR audit is a process to review implementation of organizations policies and procedures, ensure compliance with employment law, eliminate liabilities, implement best practices and educate your managers.
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HR Audit
A human resource audit evaluates the personnel activities used in an organization. The audit may include one division or entire company. It gives feedback about : 1. The function of operating manager 2. The human resource specialists. 3. How well managers are meeting their human resource duties. In short, the audit is an overall quality control check on human resource activities in a division or company and how those activities support the organizations strategy
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HR Audit involves
Measurement and evaluation of personnel programs, policies and practices Identification of gap between objectives and results Determination of what should or should not be done in future.
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Ensure compliance Improve HR practices Train your managers Prepare for potential government audit or litigation Gain an understanding of departments environment Show a good faith effort Correct errors
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Scope of HR Audits
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Human resource professionals do not set corporate strategy, but they strongly determine its success. By assessing the firms internal strengths and weaknesses and its external opportunities and threats, senior management devises ways of gaining an advantage, such as : stresses superior marketing channels, low-cost production, etc.
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Understanding the strategy has strong implications for human resource planning, staffing, compensation, employee relations, and other human resource activities 3/28/2008 HR AUDIT (GROUP 10)
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HR INFORMATION SYSTEM:
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Compliance with laws is especially important. When safety, compensation, or labor laws are violated, the government holds the company responsible. If managers ignore policies or violate employee relations laws, the audit should uncover these errors so that corrective action can be started.
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Employee satisfaction refers to an employees general attitude toward his or her job. When employee needs are unmet, turnover, absenteeism, and union activity are more likely. To learn how well employee needs are met, the audit team gathers data from workers. The team collects information about wages, benefits, supervisory practices, career planning assistance, and other dimensions of job
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Are they ready to fix whats broken, even if it costs highly? Do they agree with the methodology? Will they allow access to all departments/information? support the 3/28/2008
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Who will be audited? What do you want to audit? What audit tools will you use? How will the process be rolled out? How will results get reported? Who will get the results?
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Auditors
The following are the likely auditors who can use this system: 1. External Auditors 2. Internal Auditors 3. Internal Team of auditors consisting of HR specialists 4. In-House Team or Internal Task Force consisting of line managers and HR specialists 5. In-House Team without any HR specialists
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Who is an Auditor?
An auditor is a person who is specially trained in HR Audits. A trained HR auditor has the following knowledge, attitude and skills: 1. A thorough knowledge of various HR systems, their objectives, relevance, functioning and various benchmarks available. 2. Knowledge of HR departments, their competencies, and HR Competency models. role,
3. Knowledge of the principles of human development and growth. 4. Knowledge of the role of line managers, and appreciation of roles played by top management and their styles.
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5. Knowledge of various assessment models, methods, tools and techniques. 6. Assessment skills in terms of skills in observation, questionnaires, use of secondary data, and interviews. 7. A positive attitude to audit an attitude to view audit as an empowering tool and not a faultfinding tool. 8. Communication skills in terms of presenting audit reports verbally, or in writings, etc.
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Tasks of Auditors
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Identify who is responsible for each activity. Determine the objectives sought by each activity. Review the policies and procedures used to achieve these activities. Prepare a report commending proper objectives, policies, and procedures. Develop an action plan to correct errors in each activity.
Follow up the action plan to see if it solved the problems found 3/28/2008 HR AUDIT (GROUP 10) through the audit.
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Audit tools
1. INTERVIEWS: Interviews with employees and
managers are one source of information about human resource activity. Employees and managers comments help the audit team find that need improvement. Another useful source of information is the exit interview. Exit interview are conducted with departing employees to learn their views of the organization.
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2. QUESTIONNAIRES / SURVEYS: Because interviews are time-consuming, costly, and often to only few people, many human resource departments use questionnaires. Through questionnaire surveys, a more comprehensive picture of employee treatment can be developed. Questionnaire may also lead to more candid answers than face-to-face interviews.
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Employee attitude about supervisors. Employee attitude about their jobs. Perceived effectiveness department. HR AUDIT (GROUP 10) of human resource
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3. HISTORICAL ANALYSIS: Not all the issues of interest to human resource audit are revealed through interviews or questionnaires. Sometimes insight can be obtained by an analysis of historical records, such as:
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Safety and health records Grievances records Compensation studies Scrap rates Turnover and absenteeism records
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Selection records
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4. EXTERNAL INFORMATION: Outside comparisons give the audit team a perspective against which their firms activities can be judged. Through Department of Labor, industry association, professional association numerous statistics and report are compiled. These organizations regularly publishes information about future employment opportunities, employee turnover rates, work force projection, area wage and salary survey, work force demography, accident rates, and other data that can serve as benchmark for comparing internal information.
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HR Scorecard
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Scorecard grading
These four indices consist of the four pillars of HRD effectiveness. All the four dimensions are assessed using following ten point rating system. A* A B* B C* C D* D F Highest Score and Highest Maturity Level Very High Maturity level High Maturity Level Moderately High Maturity Level Moderate Maturity Level Moderately low Maturity level Low Maturity Level Very low Maturity level Not at all present
U Ungraded
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1. HR Systems Maturity
The HRD systems maturity assesses the extent to which various HRD subsystems and tools are well designed & are being implemented.
The systems should be appropriate and relevant to business goals. It should focus on current and future needs of the corporation. The HRD strategies and systems should flow from the corporate strategies.
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The systems should be well designed and should have a structural maturity. They should be implemented well.
The employees should be taking them seriously implemented well. The employees should be taking them seriously and follow meticulously what has been envisaged in each system. The overheads of implementation should be low.
The subsystems should be well integrated and should have internal synergy. They should be adequate and should take care of the HRD requirements of the organisation.
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2. HR Competencies
This dimension indicates the extent to which HRD competencies are well developed in the organisation.
The HRD Staff The Top Management Line managers and Supervisory Staff Union and Association leaders Workmen, Operators and Grass root level employees
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The level of HRD skills they possess Their attitudes and support to learning and their own development Extent to which they facilitate learning among others in the corporation and those who work with them. Their attitudes and support to HRD function and systems the HRD function
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The extent to which the leadership and managerial styles are empowering and competence building is assessed by studying the leadership and supervisory styles. The extent to which the HRD culture and values are practised and stabilised in the corporation are measured.
The HRD culture is culture that promotes Human potential development. It is also a culture that promotes a learning organisation.
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4. HR Business Linkages
This score indicates the extent to which HRD efforts (tools, processes, culture etc.) are driven to achieve business goals. The business goals includes:
Business Excellence including profitability and other outcomes the organization is expected to achieve; Internal operational efficiencies; Internal Customer satisfaction; External Customer satisfaction; Employee motivation and commitment; Cost effectiveness and cost consciousness among employees; Quality orientation;
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HRD audit is cost effective. It can give many insights into a company's affairs. It could get the top management to think in terms of strategic and long term business plans. Changes in the styles of top management. Role clarity of HRD Department and the role of line managers in HRD
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Improvements in HRD systems. Increased focus on human resources and human competencies. Better recruitment professional staff. policies and more
More planning and more cost effective training. Strengthening accountabilities through appraisal systems and other mechanisms.
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HR Audit Benefits
It provides the various benefits to the organization. These are: It helps to find out the proper contribution of the HR department towards the organization. Development of the professional image of the HR department of the organization. Reduce the HR cost. Motivation of the HR personnel. Find out the problems and solve them smoothly.
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Provides timely legal requirement. Sound Performance Appraisal Systems. Systematic job analysis. Smooth adoption of the changing mindset.
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Conclusion
HR Audit is certainly a comprehensive account of the HR practices in operation in an organization appointing various tools mainly on account of these four categories:
1. 2. 3. 4.
HR Systems and Strategies. HR Competencies HR Culture and Values HR Impact and Business Linkages
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THANK YOU
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