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HRD

Audit

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What is HRD?

Human Resource Development (HRD) is theframework for helping employees develop theirpersonal and organizational skills, knowledge,and abilities.

HRD includes such opportunities as employeetraining, employee career development,performance management and development,

coaching, mentoring, succession planning, keyemployee identification, tuition assistance, andorganization development.

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"The unexamined work life is not

worth living."

The things that get measuredgets managed

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What is Audit?

The general definition of an audit is an

evaluation of a person, organization, system,

process, enterprise, project or product.

The term most commonly refers to audits in

accounting, but similar concepts also exist in

project management, quality management,water management

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HRD Audit

HRD Audit is a comprehensive evaluation of theexisting HRD

Structure,

Strategies,

Systems,

Styles,

Skills / Competencies

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

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What ?

HRD Audit is like an annual healthcheck-up, it plays a vital role in

instilling a sense of confidence in theManagement and the HR functions

of an organization

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HR Audit v/s HRD Audit

HRD Audit is evaluation ofonly few activities

Structure,

Strategies,

Systems,

Styles,

Skills / Competencies

Culture

HR Audit is a comprehensiveevaluation of the entire gamut

of HR activities

HR Cost

HRD activities

Health, Env. & Safety

Legal Compliance

Quality

Compensation & Benefits

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Methodology of HRD Audit (How?)

Interviews

Questionnaires

Observation

Analysis of records and secondary data

Workshops could be used

Task forces and internal teams could also be used

External Auditors have a significant roleBenchmarking of questionnaire data may be of

use

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Reasons for HRD Audit (Why?)

For expanding, diversifying and entering into a

fast growth phase.

For promoting more professionalism and

professional management.

Bench-marking for improving HRD practices.

Growth and diversification Dissatisfaction with any component

Change of leadership

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Role of HRD Audit HRD audit is cost effective

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 managersin HRD Improvements in HRD systems

Increased focus on human resources and human

competencies

Improvements in HRD systems Better recruitment policies and more professional staff

More planning and more cost effective training

TQM Interventions

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HRD SCORE CARD

T.V. Rao (1999) has introduced the concept of HRD score card.

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:

1. HRD Systems Maturity

2. HRD Competencies of the Employees including the HR Department

3. HRD Culture of the Organization

4. HRD Influence on the Business Goals or Business Linkages of HRD

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A* Highest Score and Highest Maturity Level

A Very High Maturity level

B* High Maturity Level

B Moderately High Maturity LevelC* Moderate Maturity Level

C Moderately low Maturity level

D* Low Maturity Level

D Very low Maturity level

F Not at all presentU Ungraded

Name of the Organisation ABC

HRDSystems

Maturity

B*

HRDCompetence

Score

C

HRD Culture

Grade

B*

BusinessLinkage

Grade

B

Overall HRDMaturity

rating

B*C B*B

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Assumption

Competent and motivated employees are

needed to provide quality products and

services at competitive rates and ways thatenhance customer satisfaction

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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 ScoreHRD 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.

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The HRD Culture

values and processes created by the HRD tools, staff and their

styles also play a crucial role in building sustainablecompetencies 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 yearswhere there were no systems approaches there used to be

good degree of HRD culture, which has resulted in effective

functioning and business.

Business Linkage ScoreBusiness linkages of HRD are very crucial component of HRD

effectiveness.HRD systems competencies and the culture

must be a lined with the business oals of the cororation

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Challenges in HRD Audit

Build and improve quality consciousness

Strive to recruit and retain competent , creative employees

Align biz processes with technology infrastructure

Nurture creative and supportive work culture

Train and develop the employee through 360 degree

feedbacks, appraisals.

Promote learning orientation-informal networks

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Organisations that Have done

HRD Audit Aditya Birla Group (8 years)

L&T

Gujarat Gas

Gujarat Guardian

Apollo Tyres

Alexandria Carbon Black

Godrej Soaps

GVFL

BPL

Tyco International Wokhardt Hospitals Bangalore

Bharat Electronics

NTPC

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