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8/9/2019 437fbHRD Audit
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HRD AUDIT
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Audit comes from a Latin verb Audire ,which means, to LI STEN
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HRD Audit
HRD Audit
Is a comprehensiveevaluation of the currentHRD strategies, structure,systems, styles and skillsin the context of theshort-and long-termbusiness plans of acompany
HR Audit
An HR audit is a processto review implementationof your institutionspolicies and procedures,ensure compliance withemployment law,eliminate liabilities,implement best practicesand educate your managers.
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W hy Do Most Co. W ant HRD
Audit?Gain an understanding of the departments environment.Ensure Compliance.Correct Errors & Improve HR Practices.
To make the HR function business-driven.Promoting Professionalism among employees.For Growth & Diversification.Dissatisfaction with a particular component.
Change of leadership .
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B efore beginning the audit process
determine:Internal Vs External
W ill the organizationallow access to all
information?W hat audit tools will beused?How will the process berolled out?W ho will get the result?
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Audit Tools
Interview1. Individual Interviews2
. Group InterviewsDocument ReviewQuestionnaireSampling
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Audit
HR ManualManpower StrengthRecord KeepingEmployee FilesUnderstanding of Policies/ PracticesCompensation & Grading SystemEmployee RelationsTraining & Development
Calculation of Leaves, Overtime etc.Separation
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Role of HRD In B usiness Improvement
Getting the top management to think in terms of strategic and long-term business plansClarifying the role of the HRD department and line managers in HRDStreamlining of other management practices
B etter recruitment policies and more professional staff Changes in the styles of top managementImprovements in HRD systemsMore planning and more cost-effective training
Increased focus on human resources and human competenciesStrengthening accountabilities through appraisal systems and other mechanismsTQM interventions
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HRD Systems & Subsystems
The purpose of any HRD System is broadly to build thecompetencies, commitment of individuals, teams & entireorganization as a whole through a variety of instruments.A system has an objective, an output, an input and aprocess.The instruments available for an organization are put intosubsystems & become HRD systems & subsystems.HRD Functions are carried out through these systemsand subsystems.
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HRD SYSTEMS AND SUB SYSTEMS
1. Career system: This system ensures attraction and retention of human resource through following subsystems:
Manpower planning and recruitmentPotential appraisal and promotionsCareer planning and developmentRetention
2. Work planning system: This system ensures that human resource isutilized in a best possible way to meet organisational objectives :Role analysisContextual analysisPerformance appraisal
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3. Development system: The environmental situation and the businessscenario is fast changing. The human resources within the organization have toraise up to the occasion and change accordingly if the organization wants to be inbusiness. The development system ensures that the retained (career system) andutilized (work system) human resources are also continuously developed so thatthey are in a position to meet the emerging needs of the hour.
Induction
Training and learningPerformance coachingMentoring
4. Self renewal system: : It is not enough to develop individuals and teams in theorganizations but occasionally there is a need to renew and re-juvenate the organization itself.
Role efficacyOrganization development
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5 . Culture system : Building a desired culture is of paramount importancein todays changed business scenario. It is the culture that will give asense of direction, purpose, togetherness, and teamwork. It is to benoted that whether an organization wants it or not along with the timecommon ways of doing things (culture) will emerge. If not plannedcarefully and built systematically such common traits may not help thebusiness but may become a stumbling block. Hence it is veryimportant to have cultural practices that facilitate business. Some of the culture building subsystems are given below :
HRD Climate
ValuesReward and recognitionCommunication
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HRD SystemsPossible Interview Areas, Issues and
questions Documents to be observed
1.Career System
1 (a) Manpower Planning
What is the process of manpower planning
Manpower planningdocuments
and recruitment and recruitment? for their appropriateness
How do the line managers participtae in
it?
Tests used, Assessment in
theAre there adequate mechanisms to
ensure theinterviews, Recruitment
room,
availability of the right competencies? space etc.
1 (b) Appraisal Is there a promotion policy? Appraisal format,
how is it being implemented?Assessment centers in
operation,
Is it widely shared with all employees? Feedback process
Are the promotions based oncompetency
assessment?
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1 Career planning
How is the system of career planning Career path documents,
anddevelopment and development operating?
Career related data andcirculars,
Are there well laid out career
paths? Sessions etc.
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HRD Style and Culture
HRD culture is one that results from beliefs of the top managementinitially and subsequently from the HRD systems & practices.HRD culture is a culture that promotes human potentialdevelopment, and also promotes a learning organization.OCTAPACE CultureThese four pairs form the four corner stones of the HRD culture
Openness & Autonomy & Trust & Proaction &Confrontation Collaboration Authenticity Experimentation
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Styles in building culture
The extent to which the leadership and managerial styles are empoweringand competence building is assessed by studying the leadership andsupervisory styles of top, senior and middle level managers
An OCTAPACE culture can only be built by an enlightened topmanagement . Research has found that Indian managers exhibit the following style:
1. Benevolent & paternalistic style highly relationshiporientedtreat subordinateswith affection, generates loyalty
provides resources
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2 . Critical style Close supervision & constantmonitoringDirective in approachW ant immediate resultCannot tolerate mistakes
3 . Developmental style Highly matured styleEmpower employees
Real HRD style
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Auditing
HRD CultureThe extent to which anOCTAPACE culture exists in anorganization can be studied usingsimple HRD climate questionnaireand surveys.
Top Management StyleRequires leadership stylequestionnaireFollowing method may be used:Step 1 : Determine & draw out the
list of strategically imp individualStep 2 : Administer thequestionnaire, eg: 3 6 0-degreeStep 3 : Collect the feedbackStep 4 : Observation about thestyle of top managementStep 5 : Suggest mechanism to
improve the HRD styles.
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HRD Competencies
Any HRD audit is incomplete without an assessment of those involved in HRD.Hr personnel knowledge level, attitudes and skills play a
critical role, as they are responsible for designing the HRstrategies, implementing HR practices etc.HRD competencies & their requirements need to beanalyzed in the context of the business challenges & therole of HRD professionals in meeting them.
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Priorities for HR professional
HR TheoryHR Tools
1.Global HR2 . Leadership Depth3
. Knowledge Transfer 4 . Cultural change5 . Customer focused HR
Hr Capabilities1.Speed2 .Implementation3 .Innovation4 .Integration.
HR value propositionHR governanceHR careersHR competencies
1. Knowledge of business2 . Knowledge of HR practices3 . Management of change4 . Personal credibility
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Competencies needed by HR Managers
HRD Professional KnowledgeHRD Professional Skills
1. Communication Skills
2 . Designing Skills HRD systems3 . Articulating the HRD philosophy & values4 . Conflict management skills5 . Creativity
Personal Attitudes and Values
1. Empathy & understanding2 . Proactive
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Auditing HRD Competencies
Knowledge TestingAttitudes and valuesSelf-assessment by HR professional
Peer level assessmentAssessment of the HRD functionAssessment centre
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HRD Strategies
Communication Strategy.Accountability, Ownership and Commitment.Quality StrategiesIntroducing Customer Orientation throughout theCompanyCost ReductionDeveloping an Entrepreneurial Spirit among AllEmployeesCulture-building Exercises.
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Auditing HRD Strategies
HRD audit takes the business goals and strategies asgiven. The auditors do not question the businessstrategies or plans. They attempt, to understand if enough thought has been given to the HR strategies toachieve the business goals.
Sometimes it is difficult to differentiate what is usefulfrom that which is not useful.
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Strategy Audit HRD Score Card
The extent to which current HR Strategies, systems,practices etc., are derived from the business needs or goals
There are internal processes to ensure that the HRDplans, systems, processes & investments aresensitive to changing needs of the organization .