Professional Documents
Culture Documents
and their appropriateness to achieve the short-term and long-term goals of the organisation.
HR Audit v/s HRD Audit...
HRD Audit is an evaluation of
• Strategies
• Structure
• Systems
• Styles
• Skills & Competencies
• Culture
• HR Audit is a comprehensive evaluation of the entire gamut of HR activities:
• HR Cost
• HRD activities
• Health, Envt. & Safety
• Legal Compliance
• Quality
• Compensation & Benefits
Methods used for HRD Audit
• Questionnaires
• Interviews
• Group Discussions and workshops
• Observation
• Analysis of records and documents
HRD Audit Instrument : Questionnaires
• HRD Audit questionnaires
– Effectiveness of HRD Systems, processes & functions
• Mapping of HRD Practice profile
– Effectiveness of HRD activities performed
• Professional preparation of HRD Staff Profile
– Competencies required to perform HRD roles
• HRD Climate questionnaires
– Openness, trust, collaboration, authenticity, autonomy, pro-action, confrontation and experimentation
• HRD Competencies Checklist
– Assess HRD Staff competencies
Types of Analyses – Item Wise Analysis
• % score on each item is calculated from the item wise averages
• Tabulate average score obtained on each item from different respondent
• Average score converted into % by
% score = (Item average -1) x 25
• Benchmarking data gives high, low & standard deviation
• Score above 75% = Org is excellent
• Below 60% = scope of improvement
• Below 50% = weakness area
Types of Analyses - Dimension-wise
• Dimensions in questionnaire
• Dimension-wise average score can be obtained by totaling the item-wise averages on the dimension and dividing by number of items in that
dimension.
• Percentage score can be obtained by
% score = (dimension average -1) x 25
• Overall HRD score obtained by adding up the dimension-wise, percentage –wise score and then dividing by 21
• Result indicate general level of HRD effectiveness of Org. Five point Scale to be used in each statement
5 = Very much true 1 = Not at all true
Types of Analyses - Assets & Liability Analysis
• 21 categories used in such analysis
– Identify dimensions where the % score is <50 = liability side
– Identify dimensions where the % score is >50 = asset side
Instruments
HRD Audit Questionnaire
Dimensions – A) Career System
• A1 Manpower Planning & Recruitment
– Manpower planning and business plans are closely linked
– Manpower plans are prepared for 3-5 years
– Dept send manpower requirements in advance
– Selection process is objective and competent people are recruited
– Valid and standardized tests are used for recruitment
– Line Managers are trained on interviewing and other selection technique
• A2 Potential Appraisals & Promotions
– Competencies for each job are identified
– Potential of employees is assessed for higher level responsibilities
– Promotions are based on needs rather than accommodate individuals
– Company has satisfactory promotion policies
– Adequate feedback about employee qualities and potential for performing higher level jobs
– Job rotation is being done to help people understand and develop their potential in new areas
Dimensions – A) Career System
• E3 Quality Orientation
– Employees are quality conscious
– High degree of customer orientation
– Focus on customer requirements
– Process improvements are carried out
– E4 Reward and Recognition
– Deserving people are rewarded
– Objectivity in rewards is ensured
– Rewards have a motivating effect
– Non-financial rewards are used
Dimensions – E) HRD
Dimensions – E) HRD
• E5 Information
- Communications on
- company policies, procedures, and changes
- environmental change
- competitors performance
- short term plans & long term plans
- Communication on market opportunities
- E6 Communication
- Task related information is provided to all employees
- Good circulars, notices etc are adequate to keep employees informed
- Top down communication helps employees know the thinking on the top
- Forums are available for information sharing and communication
Communication infrastructure is good and constantly improved (email, internet, cell phones and other technology)
• E7 Empowerment
– Employee is treated with dignity and significance
– Employees have autonomy to plan, organize and carry out their work
– Employee participation in decision making
– Delegation of responsibility and authority
– Decentralization of financial decisions to departments
Dimensions – F) HRD Function
• Significance given by Top, Middle & Personnel Dept
• Helps line Managers to work effectively
• Helps to build Organisation Culture
Dimensions: G & H
• G
– Competency Mapping
– 360 degree feedback
– Assessment & development centre
• H
– Strengths, weakness and suggestions
Checklist to achieve HRD Goals
• HRD Philosophy and Liaison with Top Management
– Developing and articulating HRD philosophy
– Top Management commitment
– Communicating HR philosophy
– Clarifying, communicating & monitoring the organizational values
– Having periodic discussions with top management
Checklist to achieve HRD Goals
• Development Motivation in Line Managers
– Arranging talks or seminars by outsiders
- Conducting in-house discussions and in-house newsletters
- Experimenting with new HRD methods periodically
- Conducting team building workshops
- Meeting line managers frequently
– Facilitating line managers to learn from each other
Strengthening HRD Climate through HRD Systems
• Designing, development and review of Appraisal System.
• Conducting orientation workshops.
• Analyzing data.
• Analyzing factors of productivity.
• Reporting findings to top management.
• Preparing training policy and reviewing it periodically.
• Post training follow-up / analysis.
• Keeping track of innovative and outstanding work done by line managers.
• Assimilating this knowledge & spreading the learning.
• Formulating job-rotation policies.
• Conducting role analysis exercises and improving role clarity.
• Preparing career development plans.
• Establishing counseling services to workers.
• Undertaking OD and self – renewal exercises.
Strengthening HRD Climate through HRD Systems
Directing HRD Effort to Goals and Strategies of the Organisation
• Understanding and clarifying business goals of the organisation.
• Understanding and clarifying strategies.
• Contributing to the strategies.
• Clarifying social objectives.
• Shaping HRD philosophy to suit the goals and strategies.
• People friendly strategic shifts.
• Developing HRD philosophy to suit goals and strategies.
• Identifying sick, loss making units and performing diagnostic exercises.
• Performance improvements through human – process interventions.
• Assisting top management in organizational revivals or renewals.
Directing HRD Effort to Goals and Strategies of the Organisation
Monitoring HRD Implementation
• Designing questionnaires for monitoring the effectiveness or effective implementation of various systems
• Use of task forces for implementation and monitoring
• Conducting orientation workshops for different HRD systems
• Conducting review workshops
• Using unconventional methods to monitor HRD systems
HRD Audit
• Introduction of new systems in HRD
• Structural changes in terms of differentiating HRD function
• Problems, issues, and challenges
• HR systems are people intensive and require a lot of managerial time
• HRD taking a driver’s seat
HRD audit
• Need for alignment of function, its strategies, structure, systems and styles with business and its goals
• Both short term and long term goals
• Synergy with HR goals and strategies
• HRD audit is an attempt to assess these alignments and ensure the same
HRD audit
• Good HRD requires :
• Top management to recognize the strategic advantage and the critical value addition provided by people
• Role of HRD is well carved out
• Line Managers understand, accept and internalise their own role in development
HRD audit
• A learning culture is created in the company
• Appropriate HRD systems are identified to suit the needs/strategies & implemented
• The systems are periodically reviewed and aligned and realigned with the business goals of the organization
• Support HR policies are formulated and implemented
HRD audit
• HRD function is handled by competent people
• The style, beliefs and values of the top management is aligned to promote a good learning and competency building culture
• HRD function and the implementation of HRD is periodically reviewed and renewed
HRD audit
• 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.
• HRD audit attempts to find out the future HRD needs of the company after assessing the current HRD activities and inputs available
HRD audit
• HRD audit examines linkages with other systems
• Audit also examines linkages between HRD and other systems like TQM, personnel policies, strategic planning, etc.
• HRD audit is business driven – always keeps the business goals on focus
HRD Audit
T V Rao
Chairman, TVRLS
What is HRD?
u Competence Building
u Commitment /Motivation Building
u Culture Building
What is involved in Good HRD?
u Top Management Philosophy and Understanding
u Competent HR Staff and Department
u Line Manager Attitudes
u Union and Employee Support
u Use of appropriate Systems
u Periodic Renewal Exercises
u Business relevance of HRD systems and Practices
What is HRD Audit?
u It is a Comprehensive Evaluation of Human Resource Development
u Strategies, Systems and Practices,
u Structures and Competencies
u Styles and Culture
u And their appropriateness to achieve the short and long term business goals of the organization
Methodology of HRD Audit
u Examines long term and short term plans and vision to assess Competency Requirements
u Identifies broad Competency requirements for future Business Goals
u Examines the existing HRD strategies, systems and practices and assess their appropriateness to have the required competencies
Methodology of HRD Audit
u Examines the adequacies and inadequacies of HRD structure, staff and their competencies, line managers and their attitudes, top management
and their support, unions and their role in competence building for future
u Suggests mechanisms for improving all these in the business context
What is a Scorecard?
A scorecard is a visual display of the most important information needed to achieve one or more objectives, consolidated and arranged on a single
screen so the information can be monitored at a glance.
Scorecards typically display the gap between actual and target values for a smaller number of key performance indicators.
What is an HR Scorecard?
• The HR scorecard is a method for Human Resources to position itself as a strategic planning partner with line managers and executives in the
organization.
• HR Scorecard can help you deal with your Strategic HR Management Challenges
• Demonstrate HR performance
• Measuring HR Performance
• The goal of a HR scorecard is to ensure that all HR projects are focused on achieving the strategy
Balanced Scorecard
Why Scorecard?
Objectives
Measures
Targets
Initiatives
HRD Scorecard
• Tested and developed by Dr T.V Rao
• The score card is a resultant of HRD Audit
• To assess and benchmark the maturity level of HRD function
• Four letter rating to grade four critical dimensions
A* Extremely high
A Very high
B* High
B Moderately high
C* Moderate
C Moderately Low
D* Low
D Very Low
Right HR
Practices
HR Scorecard - Process
• HR scorecard measurement process is not a one-time event
• It requires flexibility as well as continuous monitoring and re-thinking
• HR professionals should regularly review the existing measures and analyze their impacts
Manpower Planning
Manpower Planning may be defined as a strategy for the acquisition, utilization, improvement and preservation of the human resource of an
enterprise. It is the activity of the Management aimed at coordinating the requirements for and availability of different types of employees.
Ensures that the Company has enough of the kind of people at the right time and also adjusting the requirements to the available supply.
HRP is “an integrated approach to performing the planning aspects of the personnel function in order to have a sufficient supply of adequately
developed and motivated people to perform the duties and tasks required to meet organizational objectives and satisfy the individual needs and goals
of organizational members”.
Leon G. Megginson
HRP is “the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of
the organization”
Coleman
HRP means deciding the number and type of human resources required for each job, unit and total company for a particular future date in order to
carry our organizational activities.
“A process by which an organization should move from its current manpower position to its desired manpower position. Through planning,
management, strives to have the right number and right kind of people at the right place at the right time, doing thing which result in both the
organization and the individual receiving maximum long range benefit”.
EW Vatter