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MU0013 –HR Audit Winter / November 2011
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Winter / November 2011
Master of Business Administration
Semester III
MU0013 –HR Audit- 4 Credits
Assignment Set- 1 (60 Marks)
Note: Each Question carries 10 marks. Answer all the questions.
Q1.What are the components of human resource development audit?
For understanding the HRD Audit as conducted in different organizations, you should know well
the different components of HRD Audit. Look at Figure 2.1 to identify the components of HRD
Audit.
Figure 2.1: Components of HRD Audit
The HRD audit is divided into three components:
· Organisation and Administration of Human Resource
· Information Management through Documentation
· Computerized HRIS
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The various functions in HRD are carried out through its systems and sub-systems. HRD has five
major systems and each of the systems has sub systems which are given below:
1. Career system: This is the most important HRD system. As an HRD system, career system
ensures attraction and retention of human resources through the following sub-systems.
-Manpower planning
-Recruitment
-Career planning
-Succession planning
-Retention
2. Work system: It ensures that the human resources are not over or under utilized but is utilized
in the best possible way to achieve organizational goals. Following are the sub-systems of the
work planning system:
-Role analysis
-Role efficacy
-Performance plan
-Performance feedback and guidance
-Performance appraisal
-Promotion
-Job rotation
-Reward
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3. Development system: The business environment is ever changing and very dynamic. So the
human resources within the organization have to change accordingly if the organization wants to
be in business. The development system ensures that the retained (career system) and utilized
(work system) human resources are also continuously developed so that they are adaptable to the
changing scenario. Following are some of the developmental sub- systems of HRD that
contributes and ensures that human resources in the organization are continuously developed.
-Induction
-Training
-Job enrichment
-Self-learning mechanisms
-Potential appraisal
-Succession development
-Counseling
-Mentor system
4. Self-renewal system: It is important not only to develop individuals and teams in the
organizations but occasionally there is a need to renew the organization itself. Following are
some of the sub-systems that can be utilized to renew the organization:
-Survey
-Action research
-Organizational development interventions
-Organizational retreats
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5. Culture system: To build up a desired culture is very important in today’s changing business
scenario. It is the culture that will give a sense of direction, purpose, togetherness, and teamwork.
You should note that whether an organization wants it or not along with the time common ways
of doing things (culture) will emerge. Some of the culture building sub-systems are given below:
-Vision, mission and goal
-Values
-Communication
-Get-togethers and celebrations
-Task forces
-Small Groups
The Box 2.1 shows various commonly used HRD systems used in big Multi National
Companies.
Box 2.1: HRD Systems
The commonly used HRM systems are as follows:
· Human Resources Information System (HRIS)
· Personnel Action Tracking System (PATS)
· Financial Disclosure System (FINDIS)
· Modular Ethics Training Tracking System (METTS)
· Office of Workers Compensation Case Tracking System (OWCP)
· Leave Transfer System
· Research Position Evaluation System (RPES)
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· Awards Tracking System
· OPF Tracking System
· Electronic Performance Management System (e-PMS)
Human resouree management (HRM) has experienced a strong evolution. In order to provide
useful information to managers, it is necessary to evaluate the results generated by the design and
implementation of personnel policies. This is the goal of the HR audit that includes two different
analyses and valuations: the HR policies and their level of fit with the strategy of the firm, and
the characteristics of human capital. Several criteria have been used to assess different HR
policies. Nevertheless, the measurement of the value that human capital brings to the firm is a
very complex topic. Consequently, different models are being presented that aim to properly
solve this challenge. This paper will analyze the HR function from two perspectives: the
evaluation of the implemented policies and the quality of human capital in relation to real
competencies, and the capability to learn and develop new skills. (JEL M10)
Conceptualization of HR Auditing
Auditing has evolved, becoming increasingly specific, until the term functional audit has
emerged. The objective of a functional audit is to diagnose, analyze, control, and advise within
the boundaries of each functional area of the company.
The HR audit is a type of functional audit. Thus, as a first approach, one could say that HR
auditing consists of diagnosing, analyzing, evaluating, and assessing future lines of action within
the framework of HRM.
HR auditing is a basic tool for the management of a company. Its objective is not only the
control and quantifying of results, but also the adoption of a wider perspective that will aid in
defining future lines of action in the HRM field. Thus, HR auditing must perform two basic
functions [Cantera, 1995]. First, it must be a management information system whose feedback
provides information about the situation in order to facilitate the development of managing
processes or the development of HR. On the other hand, it must be a way of controlling and
evaluating the policies that are being applied, as well as the established processes.
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It can be understood that in order to secure the operative efficiency and user or client
satisfaction, an appraisal of the results of the HR function is necessary. According to this
approach, the results obtained can be valued from certain HR policies (an external type of
measurement), or from the results of the policies or the policies themselves. The results can be
valued through their cost (a measurement internal to the function) [Walker, 1998]. This would
lead the company to consider some basic questions. Are adequate HR policies being developed?
Are the desired results being obtained? To what extent do they add value to the company?
The purpose of this work is to offer a few guidelines for the appraisal of the HR function, which
is in itself the basis for the auditing process. The objective is to set conceptual limits for its
content and to present the different approaches with which the HR audit can be presented.
Q2.Explain the audit of human resource function.
Q3.Explain the linkages between HR Audit and business functions.
Q4.What are the main objectives of Human Resource Planning?
Q5.Write a short note on employee orientation programme.
Q6.What are the reasons for implementing the human resource scorecard?
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Winter / November 2011
Master of Business Administration
Semester III
MU0013 –HR Audit- 4 Credits
Assignment Set- 2 (60 Marks)
Note: Each Question carries 10 marks. Answer all the questions.
Q1.Write a short note on focus groups.
A focus group is a form of qualitative research in which a group of people are asked about their
perceptions, opinions, beliefs, and attitudes towards a product, service, concept, advertisement,
idea, or packaging.[1] Questions are asked in an interactive group setting where participants are
free to talk with other group members. The first focus groups were created at the Bureau of
Applied Social Research in the USA, by associate director, sociologist Robert K. Merton.[2] The
term itself was coined by psychologist and marketing expert
Types of focus groups
Variants of focus groups include:
Two-way focus group - one focus group watches another focus group and discusses the
observed interactions and conclusion
Dual moderator focus group - one moderator ensures the session progresses smoothly,
while another ensures that all the topics are covered
Dueling moderator focus group - two moderators deliberately take opposite sides on the
issue under discussion
Respondent moderator focus group - one and only one of the respondents are asked to act
as the moderator temporarily
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Client participant focus groups - one or more client representatives participate in the
discussion, either covertly or overtly
Mini focus groups - groups are composed of four or five members rather than 6 to 12
Teleconference focus groups - telephone network is used
Online focus groups - computers connected via the internet are used
Traditional focus groups can provide accurate information, and are less expensive than other
forms of traditional marketing research. There can be significant costs however : if a product is
to be marketed on a nationwide basis, it would be critical to gather respondents from various
locales throughout the country since attitudes about a new product may vary due to geographical
considerations. This would require a considerable expenditure in travel and lodging expenses.
Additionally, the site of a traditional focus group may or may not be in a locale convenient to a
specific client, so client representatives may have to incur travel and lodging expenses as well.
Problems and criticism
Focus groups are "One shot case studies" especially if they are measuring a property-disposition
relationship within the social sciences, unless they are repeated.[8] Focus groups can create severe
issues of external validity, especially the reactive effects of the testing arrangement. [9] A
fundamental difficulty with focus groups (and other forms of qualitative research) is the issue
of observer dependency: the results obtained are influenced by the researcher, raising questions
of validity.
Another issue is with the setting itself. If the focus groups are held in a laboratory setting with a
moderator who is a professor and the recording instrument is obtrusive, the participants may
either hold back on their responses and/or try to answer the moderator's questions with answers
the participants feel that the moderator wants to hear. Another issue with the focus group setting
is the lack of anonymity. With all of the other participants, there can not be any guarantee of
confidentiality. Again we have to deal with the issues of the reactive effects of the testing
arrangement (See above).
Douglas Rushkoff[10] argues that focus groups are often useless, and frequently cause more
trouble than they are intended to solve, with focus groups often aiming to please rather than
offering their own opinions or evaluations, and with data often cherry picked to support a
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foregone conclusion. Rushkoff cites the disastrous introduction of New Coke in the 1980s as a
vivid example of focus group analysis gone bad. In addition there is anecdotal evidence of focus
groups rebelling, for instance the name for the Ford Focus, was created by a focus group which
had grown bored and impatient and the irony of this was not picked up by the marketing team.[citation needed]
Jonathan Ive, Apple’s senior vice president of industrial design, also said that Apple had found a
good reason not to do focus groups : "They just ensure that you don’t offend anyone, and
produce bland inoffensive products."
Q2.Explain the different types of competencies with examples.
Q3.What are the trends in HR audit seen in Indian scenario?
Q4.Elaborate on the need for Human Resource Audit.
Q5.Explain how audit of training is conducted.
Q6.Elaborate on the different aspects work place policies and practices to be considered by the
employers.
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MBA <Name> <E-MAIL ID> <SEM ? > ) To +91 9995105420 , we will
reach back you with in 24H
Or Directly call our Middle East Office +974 55702886 .
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