Hr Audit Ppt

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HRD Audit

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"The unexamined work life is not worth living."

“The things that get measured gets managed”

Socrates’ (469-399 BC)

Kaplan (2000)

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What is HRD?...

• HRD is any process or activity that, either initially or over the longer-term, has the potential to develop adults work-based knowledge, expertise, productivity, & satisfaction, whether for personal or group/team gains or for the benefit of an organisation, community nation or ultimately the whole humanity

- Mclean & Mclean

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What is HRD?...

• Competence Building

• Commitment Building

• Culture Building

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What ?...SHRENUJ

An HRD Audit is like an annual health check-up, it plays a vital role in instilling a sense of confidence in the Management and the HR functions of an organisation.

What is HRD Audit?...

HRD Audit is a comprehensive evaluation of the existing HRD

• Structure, • Strategies, • Systems, • Styles, • Skills / Competencies &• Culture

and their appropriateness to achieve the short-term and long-term goals of the organisation.

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HR Audit v/s HRD Audit...

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HRD Audit is evaluation of only few activities :-

• 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, Env. & Safety • Legal Compliance• Quality• Compensation & Benefits

How ?...

• In HRD Audit the skills, styles, systems, strategies, structure is studied and analysed using a variety of methodologies like – interviews, (Individual and group, Top Management, Line Managers,

HRD Staff, Workmen and others)– questionnaires, – observations, – available records, – workshops etc.

• This evaluation helps the organisation have a clear understanding of the lacunae and better align the HR processes with business goals.

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Why ?...

Organisations undertake HR audits for many reasons :

• To make the HR function business-driven.

• Change of leadership.

• To take stock of things & to improve HRD for expanding, diversifying, & entering into a fast growth phase.

• For growth & diversification.

• For promoting professionalism among employees & to switch over to professional Management.

• To find out the reasons for low productivity & improve HRD strategies.

• Dissatisfaction with a particular component.

• To become employer of choice.

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Role of HRD Audit in Business Improvements…

• 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 policies and more professional staff

• More planning and more cost effective training

• Strengthening accountabilities through appraisal systems and other mechanisms

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Role of HRD Audit in Business Improvements…

HRD Score Card…

This model is based on the assumption that:

Competent and committed employees are

needed to provide quality products & services at competitive rates & ways that enhance customer satisfaction.

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HRD Score Card…

• These four indices consist of the four pillars of HRD effectiveness. All the four dimensions are assessed using following ten point rating system.

A* Highest Score and Highest Maturity Level A Very High Maturity level B* High Maturity Level B Moderately High Maturity Level C* Moderate Maturity Level C Moderately low Maturity level D* Low Maturity Level D Very low Maturity level F Not at all present

U Ungraded

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Name of the Organisation ABC

HRD System Maturity Grade

HRD Competence Score

HRD Culture Grade

Business Linkage Grade

Overall HRD Maturity rating

B* C B* B B*CB*B

Components to be audited

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HRD 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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• The following subsystems are assessed and depending upon the extent to which they meet the requirements a score is assigned.

Manpower planning and recruitment

Performance Management Systems

Feedback and Coaching Mechanisms

Training

Career development and Succession planning

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Job-rotation

OD Interventions

HR Information systems

Worker Development methods and systems

HR Information Systems

Potential Appraisal and Development Other subsystems if any

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HRD Competencies in the Corporation…

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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Each of the groups is assessed on :

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

Internal efficiency of the HRD function (HRD Department)

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HRD Staff…

How professionally qualified are they?

Do they seem to demonstrate adequate knowledge base? Are adequately trained in the appropriate HRD systems? Are they sensitive to internal customer requirements?

How good is their skill base in implementing various systems?

Do they demonstrate OCTAPACE values?

Are they quality conscious?

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HRD Staff…

Are they familiar with the business goals of the corporation?

Are they cost conscious?

Are they empathetic?

• Do they spend adequate time trying to understand the requirements of all categories of employees?

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Top Management…

• Do they understand HRD and its significance in achieving business goals?

How supportive are they of HRD interventions and values?

Are their leadership styles facilitative of a learning culture?

Are they willing to give the time needed for HRD?

How well do they subscribe to the HRD values like the OCTAPACE values?

How well do they practice HRD values.

How committed are they to create a learning culture in the organisation?

Do they invest their time, effort and energies in employee development?

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Line Managers and Supervisory Staff…

How much do they understand the significance of HRD?

Are they interested and motivated to develop themselves?

Are they willing to spend their time and effort in

developing their subordinates?

How supportive are they of HRD efforts?

• Do they have listening and other skills required facilitating development of their juniors?

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Union and Association Leaders…

How much developmental role are they playing?

Do they see their own role in HRD?

Are they committed to create a learning organisation? Are they willing to promote employee development? Are they positive in their approach and perceive their own

roles a supportive of organisation building?

• Do they perceive the significance of Employee development for organisation building?

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HRD Function…

Adequacy of manpower

Appropriateness of the structure

Cost consciousness of staff

Quality consciousness of the HRD staff

Responsiveness of the HRD department to the needs of employees, Managers, Staff, Workmen, Union Leaders?

Level of Internal customer satisfaction

Internal operational efficiency of the department?

Level of internal synergy among staff?

Are they the first to implement HRD systems? Do they implement them in an exemplary way?

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A HRD Competency maturity core is assigned on the basis of the competency levels of all categories.

• A* = All categories of employees have extremely high competence base in HRD (knowledge, attitudes, values and skills) and the HRD department has a high internal efficiency and satisfaction levels.

• B = The competence levels of every group is at an acceptable level and the internal efficiency of the HRD department and the internal customer satisfaction are acceptable levels.

• D = The competencies of more than one group are below acceptable levels and/or the HRD department is not internally efficient and does not meet the requirements of the minimum internal customer satisfaction.

• F = Total failure on almost

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HRD Styles, Culture and Values…

• 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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Business Relevance of HRD…

• 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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?

Thank You

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HRD Audit v/s PCMM System...

HRD Audit PCMM

Focus is on People & HR practices

Aims at evaluating & improving HRD competencies in any organisation.

Aims at improving workforce practices in software industry.

Based on Quality, TQM & processimprovement models.

Based on HRD - HRD strategies, structure, competencies, styles, & culture & takes into consideration Quality concerns & OD

Does not believe that organisation could be classified into any stage or level, assumes that any organisationcould be assessed on a 10 - pointmaturity scale on any givendimension.

Conceptualises the organisation as passing through 5 maturity levels, one superior to the other & describes process areas of each level.

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PCMM Maturity Framework...

Level 4Predictable

Level 3Defined

Level 5Optimizing

Competency Management

Capability Management

Empowered & measured practices

Level 2Managed

Competencybased practices

Continuously Improving

practices

People Management

Level 1Initial

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What is involved in Good HRD?...

• Top Management Philosophy and understanding

• Competent HR Staff and Department

• Line Manager Attitudes

• Union and Employee Support

• Use of appropriate Systems

• Periodic Renewal Exercises

• Business relevance of HRD systems and Practices

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Methodology of HRD Audit…

Examines long term and short term plans and vision to assess Competency requirements

Identifies broad competency requirements for future Business Goals

Examines the existing HRD strategies, systems and practices and assess their appropriateness to have the required competencies

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

Suggests mechanisms for improving all these in the business context

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• The HRD Scorecard is a measure of the HRD maturity level of an organization. The scorecard is based on the following assumptions and takes into consideration the research based understanding gained in the last few decades regarding HRD. The maturity level of HRD in an organization is indicated by the following factors:- HRD Systems Maturity- HRD Competencies of the Employees including the HR Department- HRD Culture of the Organization- HRD Influence on the Business Goals or Business Linkages of HRD.

This model is based on the assumption that:• - Competent and motivated employees are needed to provide quality products and services at

competitive rates and ways that enhance customer satisfaction.

• - HRD Systems Maturity Score: Competencies and commitment can be developed through appropriate HRD mechanisms (tools and systems). In a HRD Mature organization there will be well-developed HRD systems and HRD systems Maturity can be measured through HRD audit.

- HRD Competence Score: HRD Competencies of the HRD department and the line managers play a significant role in implementing the systems and processes in ways that could ensure employee satisfaction, competence building and customer satisfaction linkages. The competencies of the staff and the other employees can be measured in terms of an index.

- The HRD Culture: values and processes created by the HRD tools, staff and their styles also play a crucial role in building sustainable competencies in the organization. These need to be measured and monitored. It is possible in some corporations (for example small corporations) to have very little of HR systems and yet have a high level of HR competencies and HR culture. In the traditional family owned organizations in those years where there were no systems approaches there used to be good degree of HRD culture, which has resulted in effective functioning and business.

• - Business Linkage Score: Business linkages of HRD are very crucial component of HRD effectiveness. HRD systems, competencies and the culture must be aligned with the business goals of the corporation. The alignment could be ensured through the direct linkages with customer satisfaction and employee motivation indices.

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The HRD system should focus on the above dimensions.

Are the HRD systems aligned towards the above mentioned or other important business goals of the corporation?

Does the HRD staff reflect adequate understanding the commitment to the business goals of the organisation?

• Are the HRD processes and culture drive employees and the corporation and interviews of the auditor with the employees. Similar ratings are assigned for this dimensions.

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Hr Audit Ppt