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-Assessing the Human resource management strengths. Auditing beyond numbers. New Idea. “If you have an idea and I have an idea and we exchange these ideas, then each of us will have two ideas.” - George Bernard Shaw. Before we start let us try to answer a few questions. - PowerPoint PPT Presentation
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Auditing beyond numbers
-Assessing the Human resource management strengths
-By CA Lekha Krishnakumar
l e k h a @ l e k r i s h . c o m
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
New Idea
“If you have an idea and I have an idea and we exchange these ideas, then each of us will have two ideas.”
-George Bernard Shaw
2
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Before we start let us try to answer a few questions What is the role we envisage for a
traditional auditor? If you are in the industry as a Finance
Controller, how would you perform qualitative analysis?
What could be a finance professionals role towards Human Resources function in an organization?
Do you think it is important to appraise qualitative aspect of resources including human resources?
The understanding that we carry today are paradigms accumulated over the years due to experiences.
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Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
What do you see in this picture?
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Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
What do you see in this picture?
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Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Paradigms
It has been observed that :
All of us have paradigms that resist us to appreciate and acknowledge a different perspective.
Paradigms might take a rigid form with progression of age.
Some paradigms are due to the socio-economic factors and others are self created.
6
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Change is inevitable
Traditional Number cruncher to a Consultant
Validations to Interpretations7
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
What is the purpose we wish to accomplish from this presentation?To appraise internal auditors and management teams, regarding problems generally overlooked by organizations due to departmentalization and inflexible job descriptions.
To provide insights where a third party independent auditor could add value in building a successful enterprise.
To bring out the dynamics of management amongst the five critical aspects of human resource capital viz., Knowledge, Skill, Competence, Incentives and Belongingness.
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Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Quantity or Quality?
16KB Floppy
1GB Pen-drive
Pentium I PC
Pentium Dual Core
PC
Mechanical
Executers
Executive Thinkers
9
FewMany
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Attrition – Lost man months
Job searching
Notice Period
Finding Replacement
Training new recruit
Two
One
One
Three
Seven
Activities when an employee quits
Man-Months Lost
10
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Satisfy all Stakeholders
Auditor
Shareholders
Management
CreditorsCustom
ers
Employees
Regulatory Authorities
Public at Large
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Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Team Building
12
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Qualities of good team..
Effective solutions are provided by talented, skillful and proactive people who can strike the right balance among key business values viz.,
InnovationPromptnessQualityEffectivenessGoodwill RelationshipSatisfaction
13
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
How do we build a good team?
A Good team
Hiring Right People
Nurturing Leadership Qualities
Structuring The
Organization Properly
Competence Mapping And
Capacity Building
Adopting Good
Evaluation And Incentive
Systems
Creating A Sense Of
Belongingness
14
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
How do we build a good team?
A Good team
Hiring Right
People
Nurturing
Leadership
Qualities
Structuring The
Organization
Properly
Competence
Mapping And
Capacity Building
Adopting Good
Evaluation And Incentiv
e Systems
Creating A Sense
Of Belongin
gness
15
Hiring Right
People
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Hiring good people
Job DescriptionSkill
Requirement analysis
Costing
Timeline Profile match
Candidate analysis
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Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Candidate Analysis
Knowledge
Skill
Competence
Cost Attitude
Adaptability
Values
17
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Talking about attitude..
Let me share a small presentation received from my friend.
The following 8 slides are from the other presentation on attitude.
18
A SMALL TRUTH TO MAKE LIFE
100%
Hard Work
H+A+R+D+W+O+R+K
8+1+18+4+23+15+18+11 = 98%
Knowledge
K+N+O+W+L+E+D+G+E
11+14+15+23+12+5+4+7+5 = 96%
Love
L+O+V+E
12+15+22+5 = 54%
Luck
L+U+C+K
12+21+3+11 = 47%
( don't most of us think this is the most important ??? )
Then what makes 100% ?
Is it Money ? ... NO ! ! !
M+O+N+E+Y
13+15+14+5+25 = 72%
Leadership ? ... NO ! ! !
L+E+A+D+E+R+S+H+I+P
12+5+1+4+5+18+19+9+16 = 89%
Every problem has a solution, only if we perhaps change our
attitude.
To go to the top,
to that 100%,
what we really need to go further... a bit more...
ATTITUDE
A+T+T+I+T+U+D+E 1+20+20+9+20+21+4+5 =
100%
It is OUR ATTITUDE towards Life and Work that makes OUR Life
100% ! ! !
Change Your Attitude …
And You Change Your Life ! ! !
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
How do we build a good team?
A Good team
Hiring Right
People
Nurturing
Leadership
Qualities
Structuring The
Organization
Properly
Competence
Mapping And
Capacity Building
Adopting Good
Evaluation And Incentiv
e Systems
Creating A Sense
Of Belongin
gness
27
Nurturing
Leadership
Qualities
Nurturing Leadership..
Lead by example..
Don’t just manage..
28Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Manager or Leader?
MANAGER
What & Who?What happened &
Who did it?Plays Blame Game.Penalizes the doer.
LEADER
Why & How?Why something
happened and How it can be corrected?
Concentrates on the fundamental cause.
Offers solutions to problems.
29Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
How do we build a good team?
A Good team
Hiring Right
People
Nurturing
Leadership
Qualities
Structuring The
Organization
Properly
Competence
Mapping And
Capacity Building
Adopting Good
Evaluation And Incentiv
e Systems
Creating A Sense
Of Belongin
gness
30
Structuring The
Organization
Properly
Preparing an Organizational Chart
Board of Directors
CEO/MD
General manager-Support services
General manager- Marketing (South)
General manager- Marketing (West)
Chief manager Finance
Chief manager -HR
Chief manager-Logistics
Manager- Technical team
Manager- Business Development team
Manager- Commercial
Manager- Commercial
Manager- Technical team
Manager- Business Development team
31Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Clearly define roles and responsibilities of each employee
Chief Manager Finance
Accounts Planning/Budgetary Control
Treasury/ Statutory Compliance
Contract management
General Ledger
Accounts Receivable
Accounts Payable
Receipt and payment through cash/bank
Bank Reconciliation
Finalization of financial statements
Managing internal & external audit
Preparation of Annual Budgets
Comparative analysis of budgets vs actual
Product pricing methodology
Preparation of monthly MIS
Cash and funds flow management
Compliance with direct and indirect tax and assessments
Relationship with banks
Debt Collection
Dealer Contract management
Supplier Contract management
Invoicing
Status of outstanding commitments
Systematic maintenance of documents
32
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Establishing Clear performance parameters
33
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Communicating objective decisions and critical feedback
34
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Establishing effective communication channels and whistle blower policy
35
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
How do we build a good team?
A Good team
Hiring Right
People
Nurturing
Leadership
Qualities
Structuring The
Organization
Properly
Competence
Mapping And
Capacity Building
Adopting Good
Evaluation And Incentiv
e Systems
Creating A Sense
Of Belongin
gness
36
Competence
Mapping And
Capacity Building
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Right Person for the right job..
Creative brain used for mess cleaning??!!??
Field worker
used for Desk
Job??!!??
37
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Capacity Building
38
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
How do we build a good team?
A Good team
Hiring Right
People
Nurturing
Leadership
Qualities
Structuring The
Organization
Properly
Competence
Mapping And
Capacity Building
Adopting Good
Evaluation And Incentiv
e Systems
Creating A Sense
Of Belongin
gness
39
Adopting Good
Evaluation And
Incentive Systems
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Periodic performance evaluation
Staff Dialogues
Peer reviews
Management
feedback
Goal setting
and establishi
ng Key Result Areas
Measurement of actual
performance with respect to KRAs
Objective rating
systems
Good HR policies
for incremen
ts, promotions and merit
rewards
40
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
How do we build a good team?
A Good team
Hiring Right
People
Nurturing
Leadership
Qualities
Structuring The
Organization
Properly
Competence
Mapping And
Capacity Building
Adopting Good
Evaluation And Incentiv
e Systems
Creating A Sense
Of Belongin
gness
41
Creating A Sense Of
Belongingness
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Belongingness wields Power
42
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Good Organizational Culture
Show flexibility to amend mistakes as opposed to
defending them.
Evolve a policy of giving credit when
voluntary disclosures of
lessons learnt from mistakes are
communicated.
Develop a feeling of pride within the individual to be a part of the team.
43
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
To summarize..excerpts from Management E-Learning program
44
Please watch the e-learning program..
How can a Finance Professional help build Human Resources team?
Understand Human Resources aspect of Management.
Evaluate constantly the health of an Organization.
45Auditing Beyond Numbers -By CA Lekha Krishnakumar
www.lekrish.com
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
What can a finance professional do?
Analyze the symptoms. We are originators and presenters of financial information. And, symptoms are revealed from figures.
46
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
What can a finance professional do?
Diagnose the right cause of problems – this may involve a paradigm shift.
47
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
What can a finance professional do?
Give corrective recommendations at the right time. Bring business on track.
48
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Let us keep our minds open for various possibilities..
49
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Let us help in building Healthy Organizations!
50
Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com
Thank You!
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