Professional Documents
Culture Documents
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)
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
• NEED ASSESSMENT
• SELECTION CRITERIA
• LEVELS COVERED AND FREQUENCY
• INTERNAL VS EXTERNAL TRAINING
• QUALITY CONSCIOUSNESS
• CHANGING NEEDS
• CLIMATE FOR SELF-DEVELOPMENT
4. PERFORMANCE APPRAISAL
• UNDERLYING BENCHMARKS
• CONSISTENCY IN RATINGS
• LINKAGES WITH PAY
• FEEDBACK TO EMPLOYEES
• CHANGING NEEDS
• 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
8. SPECIAL ASSIGNMEN
(OTHER H. R. FUNCTIONS)
• CLARITY
• COMMENTS
• ACTIVITIES JURISDICTIO
9. NEED INTER-RELATIONSHIPS
• UNIQUENESS
• DISTINCTIVENESS
• PRESENCE AND AWARENESS OF ABOUTCOMPANY’S H. R. POLICY
• CLARITY ON OBJECTIVES OF
H.R. AUDIT
• FUTURE OUTLOOK ON PHILOSOPHY
* CAPABILITIES ON IMPLEMENTATION
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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
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:
5. MANAGING CHANGE
8. TRANSFORMING ORGANISATION
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H. R. COMPENTENCIES
- 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.
FOUR METHODS:
Top level management and senior managers are interviewed, individually. It helps in
following:
Union leaders, departmental heads, some strategic clients and informal leaders are also
interviewed, individually.
COMPOSITION OF GROUP:
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.
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?
d. What are the areas where your HRD function can do better?
• performance appraisal,
• career planning,
• job rotation, training,
• quality circles,
• induction training,
• recruitment policies,
• performance counseling,
• worker development programmes, and
• HRD departments?
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:
ii. What is the one thing you would like to change in your
performance appraisal system?
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:
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.
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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.
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..
Study and analysis of said documents help in assessing the strengths and weakness of
HRD.
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H.R.AUDIT METHODOLOGY
(INDIVIDUAL INTERVIEW METHOD –
HOW TO INTERVIEW AND FRAME QUESTIONS?)
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.
• 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.
• DIVERSIFICATION,
• NEW MARKET,
• NEW BUSNESSES,
• NEW AREAS
• SCALE OF OPERATIONS,
• EXPORT,
• ANY CHANGE OR CONSOLIDATION.
INTERVIEW QUESTIONNAIRE:
OBJECTIVE:
• TO UNDERSTAND THE EXISTING SYSTEMS, STRUCTURE, SKILLS OF
STAFF, STYLES OF TOP MANAGEMENT AND RELATIONSHIP WITH THE HRD
PHILOSOPHY, PROBLEMS ETC..
• TO FIND OUT THE TIME DIVISION AND HOW TIME IS SPENT BY THE
DEPARTMENT.
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.
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OBJECTIVE:
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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.
• 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:
B. Auditors to brief about the HRD Audit and it’s 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.
As per your view, what are the Strengths and Weaknesses in respect of the following
components of HRD:
INTERVIEW AREAS,
DIMENSIONS AND QUESTIONS
FOR ASSESSING HRD SYSTEMS
TWO EXAMPLES:
HRD SYSTEM/SUB-SYSTEM
WORK PLANNING:
Performance Appraisal
DEVELOPMENT
SYSTEM:
• What are the other learning mechanisms being used for competency building?
• 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:
OBJECTIVE:
PURPOSE:
TO HELP THE TOP MANAGEMENT AND AND THE HRD STAFF TO RECOGNISE
AND RETAIN THE COMPANY’S STRENGTHS.
POINTS TO REMEMBER FOR WRITING REPORT:
EXECUTIVE SUMMARY
CHAPTER-1 INTRODUCTION
CHAPTER-2 CURRENT STATUS OF THE HRD FUNCTION; SOME FACTS.
1. INTRODUCTION
• 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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3. GENERAL OBSERVATIONS
* Competence Building,
* Culture Building,
* Commitment Building.
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4. CAREER SYSTEMS
• 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
6. DEVELOPMENT SYSTEM
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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.