HRD Audit HRD Audit

What is HRD?What is HRD?

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

- Mclean & Mclean - Mclean & Mclean

Competence BuildingCompetence Building Commitment Building Commitment Building ••Culture Building Culture Building

What ?What ?

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

HRD AuditHRD Audit

HRD Audit is a comprehensive HRD Audit is a comprehensive evaluation of the existing HRD evaluation of the existing HRD

Structure,Structure,Strategies,Strategies,Systems,Systems,Styles,Styles,Skills / Competencies &Skills / Competencies &CultureCultureand their appropriateness to achieve and their appropriateness to achieve the short-term and long-term goals of the short-term and long-term goals of the organisation. the organisation.

HRD Audit & HR Audit HRD Audit & HR Audit

HRD Audit is evaluation of only few activities :- HRD Audit is evaluation of only few activities :- • •Strategies,Strategies,

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

HR Audit is a comprehensive evaluation of the HR Audit is a comprehensive evaluation of the entire gamut of HR activities :- entire gamut of HR activities :-

• •HR CostHR Cost•HRD activities•HRD activities•Health, Env. & Safety•Health, Env. & Safety •Legal Compliance •Legal Compliance•Quality•Quality•Compensation & Benefits•Compensation & Benefits

How ?... How ?...

In HRD Audit the skills, styles, systems, In HRD Audit the skills, styles, systems, strategies, structure is studied and strategies, structure is studied and analysed using a variety of methodologies analysed using a variety of methodologies like like

– –interviews, (Individual and group, Top interviews, (Individual and group, Top Management, Line Managers, HRD Staff, Management, Line Managers, HRD Staff, Workmen and others) Workmen and others)

– –questionnaires,questionnaires,–observations,–observations,–available records,–available records,–workshops etc.–workshops etc.

This evaluation helps align the HR This evaluation helps align the HR processes with business goals. processes with business goals.

Why HR audits?Why HR audits?

To make the HR function business-driven.To make the HR function business-driven. Change of leadership.Change of leadership. To take stock of things & to improve HRD To take stock of things & to improve HRD

for expanding,diversifying, & entering into a for expanding,diversifying, & entering into a fast growth phasefast growth phase

For growth & diversificationFor growth & diversification For promoting professionalism among For promoting professionalism among

employees & to switch over to professional employees & to switch over to professional ManagementManagement

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

Dissatisfaction with a particular component.Dissatisfaction with a particular component. To become employer of choiceTo become employer of choice

Role of HRD Audit in Business Role of HRD Audit in Business Improvements Improvements Improvements in HRD systems Improvements in HRD systems ••Increased focus on human resources and Increased focus on human resources and

human human competencies competencies ••Better recruitment policies and more Better recruitment policies and more

professional professional staffstaff

•More planning and more cost effective •More planning and more cost effective trainingtraining•Strengthening accountabilities through •Strengthening accountabilities through appraisal systems and other mechanisms appraisal systems and other mechanisms

HRD Score Card HRD Score Card

This model assumes that,This model assumes that, Competent and committed Competent and committed

employees are needed to provide employees are needed to provide quality products & services at quality products & services at competitive rates & ways thatcompetitive rates & ways thatenhance customer satisfactionenhance customer satisfaction

Components to be auditedComponents to be audited

HRD systems maturityHRD systems maturity

The HRD systems maturity assesses The HRD systems maturity assesses the extent to which various HRD the extent to which various HRD subsystems and tools are well subsystems and tools are well designed & are being implementeddesigned & are being implemented

1. The systems should be appropriate 1. The systems should be appropriate and relevant to business goalsand relevant to business goals

2. It should focus on current and future 2. It should focus on current and future needs of the corporation. needs of the corporation.

3. The HRD strategies and systems 3. The HRD strategies and systems should flow from the corporate should flow from the corporate strategiesstrategies

4. The systems should be well designed and 4. The systems should be well designed and should have a structural maturity. should have a structural maturity.

5.They should be implemented well. 5.They should be implemented well. The employees should be taking them The employees should be taking them

seriously implemented well seriously implemented well The employees should be taking them The employees should be taking them

seriously and follow meticulously what has seriously and follow meticulously what has been envisaged in each system. been envisaged in each system.

The overheads of implementation should The overheads of implementation should be lowbe low

6. The subsystems should be well integrated 6. The subsystems should be well integrated and should have internal synergy. and should have internal synergy.

7. They should be adequate and should take 7. They should be adequate and should take care of the HRD requirements of the care of the HRD requirements of the organisationorganisation

subsystems are assessed and subsystems are assessed and are,are, Manpower planning and recruitmentManpower planning and recruitment Performance Management SystemsPerformance Management Systems Feedback and Coaching MechanismsFeedback and Coaching Mechanisms TrainingTraining Career development and Succession Career development and Succession

planningplanning Job-rotationJob-rotation OD Interventions OD Interventions HR Information SystemsHR Information Systems Worker Development methods and Worker Development methods and

systemssystems Potential Appraisal and DevelopmentPotential Appraisal and Development