Q1 Define human resource (HR) Audit. What is the need HR Audit? What are various approaches HR Audit?

Ans: DEFINITION OF HUMAN RESOURCE AUDIT The word audit word comes from the Latin verb audire, which means to listen. Listening implies an attempt to know the state of the affairs as they exit and as they are expected/ promised to exit. Auditing as a formal process is rooted in this feature of listening. The human resource audit is a process of examining policies, procedures, documentation, systems, and practices etc which means the systematic verification of job analysis and design, recruitment and selection, orientation and placement, training and development, performance appraisal and job evaluation, employee and executive remuneration, motivation and morale, participative management, communication, welfare and social security, safety and health, industrial relations, trade unionism, and disputes and their resolution. HR audit is very much useful to achieve the organizational goal and also is a vital tool which helps to assess the effectiveness of HR functions of an organization. A complete Human Resources Check up, including administration, employee files, compliance, handbook, orientation, training, performance management, and termination procedures. The intended outcomes include minimizing your liability exposure and introduction or enhancement of human resource best practices. HUMAN RESOURCE AUDIT Many organisations now realise that their most important and expensive asset is their human resources. They recognise the need to exercise better control over these assets so that they are able to make an optimum return on their HR investment. In this regard, HR audit is seen by the organisations as an invaluable tool to inculcate discipline and accountability among the HR people. Audit is one of the important Management Control Devices. Its a review and verification of completed transactions to see whether they represent a true state of affairs of business or not. An audit involves systematic reviewing all aspects of human resources, usually in a checklist fashion. The HR audit most vital purpose is to reveal the strengths and weaknesses of an organization with major focus on the human resources system, and provide assistance if any issues arises and needed resolution. The need of an HR Audit is to recognize strengths and identify any needs

for improvement in the human resources function. A properly executed Audit will reveal problem areas and provide recommendations and suggestions for the remedy of these problems. Some of the reasons to conduct such a review include: -Ensuring the effective utilization of the organizations human resources -Reviewing compliance concerns with a myriad of administrative regulations -Instilling a sense of confidence in management and the human resources function -Maintaining or enhancing the organizations and the departments reputation in the community -Performing due diligence review for shareholders or potential investors/owners -Establishing a baseline for future improvement for the function Need for HR Audit :- Human resource audit is a systematic assessment of the strengths, limitations, and developmental needs of its existing human resources in the context of organisational performance. (Flamholtz, 1987).Human resource audits give an account of the skills, abilities and limitation of its employees. The audit of non-managers are called skills inventory while the audit of managers are called management inventories. Basically, the audit is an inventory that catalogues each employees skills and abilities which enables the planners to have an understanding of the organisations work force. (William B. Werther,Jr. and Keith Davies). Thus the need for HR audit is: To make the HR function business-driven. Determining change of leadership. To take stock of things and improve HRD for expanding, diversifying and entering into a fast-growth phase. For growth and diversification. For promoting professionalism among employees and to switch over to professional management. To find out the reasons for low productivity and develop HRD strategies to address that. Dissatisfaction with a particular component. UNCLEAR To become employer of choice or revamping employer branding. To ensure effective utilisation of human resources.

To review compliance with laws and regulations. To in still a sense of confidence in the human resource department that it is well-managed and prepared to meet potential challenges and opportunities. To maintain or enhance the organisation's reputation in a community. VARIOUS APPROACHES TO HUMAN RESOURCE AUDIT Human resource audits are an important means of analyzing HR policies and practices so as to avoiding legal and/or regulatory liability arising from it. The organizational goal can be achieve if HR audit is applied in a systematic way.HR audit is an most important tool which helps to know the efficiency of HR functions within an organization. Analyzing and improving the HR function in the organization considered to be the best outcome of HR audit. Thus HR audit helps in realizing company's goals and objective and lead to over all development of HR department and initiates utilization of full potential of HR functional with various approaches viz: Comparative approach-In this Competitor Company is identified as the model for analyzing by the auditors. The Model Company/ industry are used to compare the results with their own organization. Outside authority approach-In this, outside consultant are being set as a benchmark standard by the auditors for comparing their own organization's results. Statistical approach-Under this statistical method is applied to analyzed the growth, drawbacks and expectation of each job and department. Compliance approach-In this, auditors focus on the application of legal requirement, industry policies and procedures. They even review the past actions so as to calculate whether those activities of HR functional comply with legal and industrial policies or not. Management by objectives (MBO) approach-To achieve final decision about industry's actual performance with the set objectives MBO approach is applied. In this approach specific goals are presumed against which performance can be measured in any organization Q2 Write a brief note on staffing. How does an employee orientation program help the employees? What the characteristics of a good employee orientation programs ANS: The selection and training of individuals for specific job functions, and charging them with the associated responsibilities is known as

staffing which means it is the process of acquiring, deploying, and retaining a workforce of sufficient quantity and quality to create positive impacts on the organizations effectiveness. Staffing Process - Steps involved in Staffing Manpower requirements- The very first step in staffing is to plan the manpower inventory required by a concern in order to match them with the job requirements and demands. Therefore, it involves forecasting and determining the future manpower needs of the concern Recruitment- Once the requirements are notified, the concern invites and solicits applications according to the invitations made to the desirable candidates. Selection- This is the screening step of staffing in which the solicited applications are screened out and suitable candidates are appointed as per the requirements. Orientation and Placement- Once screening takes place, the appointed candidates are made familiar to the work units and work environment through the orientation programmes. Placement takes place by putting right man on the right job. Training and Development- Training is a part of incentives given to the workers in order to develop and grow them within the concern. Training is generally given according to the nature of activities and scope of expansion in it. Along with it, the workers are developed by providing them extra benefits of in depth knowledge of their functional areas. Development also includes giving them key and important jobs as a test or examination in order to analyse their performances. Remuneration- It is a kind of compensation provided monetarily to the employees for their work performances. This is given according to the nature of job- skilled or unskilled, physical or mental, etc. Remuneration forms an important monetary incentive for the employees. Performance Evaluation- In order to keep a track or record of the behaviour, attitudes as well as opinions of the workers towards their jobs. For this regular assessment is done to evaluate and supervise different work units in a concern. It is basically concerning to know the development cycle and growth patterns of the employees in a concern. Promotion and transfer- Promotion is said to be a non- monetary incentive in which the worker is shifted from a higher job demanding bigger responsibilities as well as shifting the workers and transferring them to different work units and branches of the same organization. Nature of Staffing Function

Staffing is an important managerial function- Staffing function is the most important managerial act along with planning, organizing, directing and controlling. The operations of these four functions depend upon the manpower which is available through staffing function. Staffing is a pervasive activity- As staffing function is carried out by all mangers and in all types of concerns where business activities are carried out. Staffing is a continuous activity- This is because staffing function continues throughout the life of an organization due to the transfers and promotions that take place. The basis of staffing function is efficient management of personnels- Human resources can be efficiently managed by a system or proper procedure, that is, recruitment, selection, placement, training and development, providing remuneration, etc. Staffing helps in placing right men at the right job. It can be done effectively through proper recruitment procedures and then finally selecting the most suitable candidate as per the job requirements. Staffing is performed by all managers depending upon the nature of business, size of the company, qualifications and skills of managers, etc. In small companies, the top management generally performs this function. In medium and small scale enterprise, it is performed especially by the personnel department of that concern. CHARACTERISTICS OF STAFFING Staffing is a universal function. It is the responsibility of every management. Staffing is a dynamic function Staffing cannot be entrusted fully to personnel department or any other service department. Staffing helps in the accomplishment of organizational goals through team spirit and optimum contribution from every employee. Staffing is concerned with the management of managers Staffing is a difficult function with extraordinary problems of social, philosophical and psychological in nature. Orientation Programs: Once employees are selected, they must be prepared to do their jobs, which is when orientation and training come in. Orientation means providing new employees with basic information about the employer. Training programs are used to ensure that the new employee has the basic knowledge required to perform the job satisfactorily.

Employee Orientation Programmes :- Employee orientation programmes are given to new employees at a place of business or work. It helps employees to speed up and learn the ground rules of the company. This often reduces start-up time, training, and other indirect costs associated with having new employees who are unfamiliar with the company culture. Orientation programmes are aimed at reducing the new employee stress factor. The employee orientation programme offers the business its best chance in shaping an employee's skills / work practices and imbibing its corporate philosophy onto the mind of the new employee, because a new hire comes with an open mind to learn and create a good impression. The programmes can last from several hours to several days. The process of new employee orientation strengthens the new employees relationship with the organisation. It fuels their enthusiasm and guides their steps into a long term positive relationship with the organisation. Effective orientation programmes where new employees are introduced to the company's mission, vision and goals begin to feel they are a vital part of the team are key to sparking early productivity and improving employee retention. "In today's labour market, new employees know they can quit and start somewhere else tomorrow," says Mel Kleiman, author of Hire Tough, Manage Easy How to Find and Hire the Best Hourly Employees. Done poorly, the new employee orientation will leave the new employees wondering why on earth they walked through your door. "Orientation should be geared toward reinforcing new employees' 'buying decisions. The focus must be on convincing them that they made the right choice when they signed on." Good employee orientation programmes: Make a good first impression. Make new employees feel welcome and valued as key players on the team. Explain the mission/ purpose of the company and the job so that employees can see the big picture. Assure them they will be carefully and patiently trained not thrown in to "sink or swim. Familiarise employees with rules, policies and procedures. Help employees adapt to their new surroundings, as well as learn who all the players are and how they work together. Establish friendly relationships among co-workers and managers. Ensure new employees have all the information and tools they need to do their jobs.

Motivate employees to succeed as an integral part of the team. Develop the long-term commitment you want from every member of your workforce. Tell them what's in it for them in sum, reinforce their "buying decision. Reduces the stress factor and helps in establishing a positive, can-do attitude at the beginning of a new employment situation. Without a wellplanned orientation programme, new employees will end up confused. The employer's lack of direction and disorganised approach rapidly diminishes the employee's commitment to the company. Many new hires question their decision to change companies by the end of their first day. Their anxieties are fuelled by mistakes that companies often make during that first day when new employees attend the orientation programme. The common mistakes include: Overwhelming the new hire with facts, figures, names and faces packed into one eight-hour day; Showing boring orientation videos; Providing lengthy front-of-the-room lectures; and Failing to prepare for the new hire; providing no phone, no e-mail, no computer, and no work. Before you completely revamp your present new employee orientation process, ask yourself the following question: "What do we want to achieve during new employee orientation? What first impression do we want to make in front of the employees?" There is no doubt that a companys positive first impressions can cement the relationship for a newly recruited employee. Q3What is HR scoreboard? Explain the reason for implementing the HR score board? ANS: A scorecard for HR provides management a set of metrics with which to benchmark performance of an HR department and to show its value as a whole. The scorecard helps to present an HR department as a strategic asset and establish it as a partner in the organization. It also provides a basis for defining what functions the HR department does and does not do, as well as provide cost savings by optimizing solutions and balancing duties within the department. Having a measurement system in place helps an organization to define HR strategically and organizationally. Reasons to Implement HR Scorecard

Nowadays, HR became extremely popular since business owners understood that their employees are the most valuable asset they have. Indeed, recent economic crisis demonstrated importance of having educated and motivated personnel. Some companies even managed to generate revenues during crisis thanks to innovative approaches and dedication of employees. That is why when companies develop strategies they should make sure that HR approaches are aligned with general strategy. Today, all big companies have HR departments. However, often HR managers deviate from company strategy. For example, HR department may overpay when hiring employees or do nothing to improve organization climate. As known, it is very important that employees are satisfied with wages, managerial approaches, office environment etc. Stats show that satisfied employees can perform better. Thus, if employees perform better the company has better chances to implement strategy. The best way to align HR goals and company strategy is to use Balanced Scorecard which is a fantastic performance evaluation tool which is also used in strategy planning. Balanced Scorecard may be used only in HR departments. By the way, this is a popular way to test BSC. Sometimes, companies start using BSC in one department which does not require sufficient investments. Later on, if positive results are achieved, BSC is used in the entire company. In such a way, managers evaluate efficiency of Balanced Scorecard and acquire skills of using this framework. Besides, this is an excellent opportunity to analyze own mistakes in using BSC. The process of BSC implementation starts with discussion of company strategy. In fact, it is not recommended to star using BSC unless any company has a realistic strategy. HR department should identify goals. For example, it might be better to hire inexperienced employees and educate them. To the contrary, some companies are willing to pay much for seasoned professionals who know how to do the job. Moreover, HR managers must understand how achievement of HR goals will contribute to implementation of company strategy. Of course, implementation of BSC, HR BSC in particular, requires time and efforts. Company employees should be prepared to work with this system. If employees are not experienced in BSC it is recommended to look for trainings and seminars. Luckily, it is easy to find lots of helpful seminars and online trainings. Even experienced employees might require additional knowledge, especially when using specialized BSC software.

Thus, 10 or 20 employees might require trainings if software is used in the entire company and all levels. When looking for consulting and software, make sure you find reliable companies with good reviews. You should be able to identify own needs and budget in order to get the required services and software. Please, check out articles and tips at our website to get more info on how to align HR with Balanced Scorecard. What Does A Balanced Scorecard Company Do? The Balanced Scorecard is a well established method of determining business performance while conducting an overall review of company and organisation success rather than just focusing of financial aspects. ... HR Performance Management and HR Balanced Scorecard the performance management is not just about the performance of the employees. The performance management is about the efficiency and increasing outputs of the departments in the organization. The HR was... Benefits of the HR Scorecard following benefits: the HR Scorecard offers the

it reinforces the distinction between HR do-able and deliverables: The HR measurement system must clearly distinguish between the deliverables that influence strategy implementation and doable that does not. Policy implementation is not a deliverable until it has a positive effect on the HR architecture and creates the right employee behaviours that drive strategy implementation. An appropriate HR measurement system will encourage HR professionals to think both strategically as well as operationally. It enables cost control and value creation: HR is always expected to control costs for the firm. At the same time, HR has to fulfil its strategic goal, which is to create value. The HR scorecard helps HR professionals balance the two and find the optimal solution. It allows HR professionals to drive out costs where appropriate, but at the same time defend investments in intangibles and HR by outlining the benefits in concrete terms. It measures leading indicators: Just as there are leading and lagging indicators in the overall balanced performance measurement system, there are drivers and outcomes in the HR value chain as well. It is thus important to monitor the alignment of the HR decisions and systems that drive the HR deliverables. Assessing this alignment provides feedback on HRs progress towards these deliverables and lays the foundation for HRs strategic influence.

 It assesses HRs contribution to strategy implementation: The cumulative effect of the HR Scorecards deliverable measures provides the answer to the question regarding HRs contribution to firm performance. All measures have a credible and strategic rationale. Line managers can use these measures as solutions to business problems. It lets HR professionals effectively manage their strategic responsibilities: The scorecard encourages HR managers to focus on exactly how their decisions affect the successful implementation of the firms strategy. This is due to the systemic nature of the scorecard. It provides a clear framework to think in a systemic manner. It encourages flexibility and change: The basic nature of the scorecard with its causal emphasis and feedback loops helps fight against measurement systems getting too standardised. Standardisation is good for things that dont tend to have a dynamic nature but firm performance is a dynamic phenomenon. Every decision needs to be taken based on the past and future scenarios. One of the common problems of measurement systems is that managers tend to get skilled to obtain the right numbers once they get used to a particular measurement system. The HR scorecard engenders flexibility and change because it focuses on the firms strategy implementation, which constantly demands change. With this framework, measures simply become indicators of the underlying logic that managers accept as legitimate. It helps them look at the bigger picture and since there are no perfect numbers it makes it easier for managers to change direction when needed APPROACH TOWARDS HR SCORECARD: This mode of scorecard is based on the assumption that competent and committed employees are needed to provide quality products and services at competitive rates emphasizing on the ways to enhance customer satisfaction .The Seven Steps in the HR Scorecard approach to formulating HR policies activities and strategies are as follows: The first step is to formulate business strategies i.e. define the business strategy of the organization so as to be very clear about the way to exploit the human resource towards the achievement of the organizational goal. The next step is to outline the companys value chain activities and identify the strategically required organizational outcomes. Now after the outcomes have been decided clearly, identify the work force requirements and behaviours expected so as to achieve the desired outcomes.

The next step is to formulate HR policies and practices which are strategically relevant such as new training and grievance systems. After ensuring that all above steps are correctly conducted then develop detailed scorecard. Then design the HR Scorecard measurement system. In order to ensure the productivity, periodically re-evaluate the measurement system. Q4 Define competency management? Explain the two frameworks of competency management? ANS: A 'competence' is a single statement that accurately summarises the skill and knowledge that an individual must have to carry out the required task to the level required for employment. When we refer to a complex task or a series of tasks then we must have a number of competencies to specify accurately the ability of the person we want to employ or level to which we will train. The Competency Management System is a systematic approach to all the stages necessary in developing an individual employee to the levels required for employment in the specified job. Competency Management: - In today's fast-changing environment, a firms competitive position is constantly challenged by the emergence of new technologies, products, markets and competitors. An effective human resource strategy requires direct connections between the value employees offer and the company's bottom line. HR audit answers this challenge through competency based human resource management. Audit of HR professionals is an important parameter of HR audit, as it assesses their competence. To carry out effective audit of HR professionals, a competency model must be developed, along with behavioural attributes that complement these competencies and indicate a successful HR professional. Different tools can be used in collecting data that identifies the extent to which the modelled competencies are exhibited by the HR professionals. The results obtained should be quantified in order to have a clear understanding of the areas of strength and the areas that need improvement. Based on these figures, an action plan can be devised to work upon the shortcomings. For this, the most important activity required is competency management. Competency management can be understood as a strategy and approach to work structurally on the development of employee competencies in order to improve the performance of an organisation. Competency management can help you direct the changes in line with the organisations vision, mission as well as strategic objectives - whether the organisation wants to exclusively

enhance its performance or completely transform its way of doing business. It works as a framework to provide unbiased, fair, honest and reliable feedback to the employee on both his/her performance and the way in which he/ she is demonstrating the required competencies. Competency Management Framework: - HR auditor should pay attention towards the fact that competency management utilises a competency framework to align the strategic objectives of the organisation with the competencies of its human resources. The frameworks are focused on attitudinal and behavioural competencies, rather than those that look at technical skills. HR auditors should be able to address technical gaps in knowledge through established training and development activities. By applying a systematic approach in measuring individual competencies, ongoing snapshots of the overall knowledge capital could be built within the organisation. Competency framework is a method of describing the underpinning values that shape and define the culture of an organisation. It provides clear focus to support the development of staff in order to deliver the best possible services. There are two general frameworks that an organisation can use and the auditor can check: 1. Management Competency Framework 2. Generic Competency Framework Management competency framework is generally applied if your job involves supervising or managing other people, or you are in a technical or professional role in which you regularly operate at this level. This framework splits into three levels. The particular level that applies to you depends on the level of your management responsibilities. Generic Competency Framework applies if your job does not include supervisory or management responsibilities. There are a number of competencies in each framework. Under each is a general description of the competency, followed by a list of attitudes/ behaviours that would indicate competence in the relevant area. There is also a negative statement at the end of each competency to indicate the sort of behaviour that is actively discouraged, as it works against the principle of continual improvement that an organisation may be striving for. The competency framework serves several purposes that enable an organisation to improve and develop its staff and services. The framework: 1. Informs prospective employees about what is expected of them

2. Informs staff of the attitudes and behaviours sought and rewarded by the organisation 3. Informs staff of what they can expect from their managers 4. Shapes and defines a culture based on strong principles such as partnership, continuous improvement, constructive challenge and being employee centred 5. Supports staff at all levels in their development in order to maximise their potential. The framework also links to some of the key strategies that drive the objectives of the organisation. Q5 Write a brief note on workplace policies and practices? ANS: Safe, dignified, and respectful work environment is not only mandated by the law, but also increases motivation and productivity of the employees. An example of review of business practices used to deal with allegations of harassment safe working environments should be considered especially for the females in the offices so as to make them feel confident and concentrate on work is shown as under: Review of business Practices used to deal with allegations of harassment Method of review Area of Review Walk through referring to the HR audit report: Are there posters visible throughout the company especially prohibiting such behaviour Review of new employee: does each employee receive a copy of the policy upon package hire? Review of Hr files does the company redistribute a copy of the policy with a cover memo from a senior manager clearly stating the companys expecting of appropriate and respectful behaviours? Does the memo contain information regarding to whom/where to report violations of the policy? Review of policy manual: Does the company have a clearly published and posted employee handbook (both) non-retaliation policy Review of HR files: is there documentation representing such investigations with the results? Review of HR files/ interviews: Are managers trained on how to handle reports of harassment Are employees advised of their rights and informed on how and where to make a report of inappropriate behaviour

Do employees indicate a thorough understanding of the companys beliefs regarding safe and respectful workplace behaviours By Joan Curtice: Read the following example at the end to observe how in practical world organisations pursue safe working environment for their employees. 1. Ethical trading initiative: promoting conflict resolution in union negotiations Cambodia (Source: http://www.ethicaltrade.org) In November 2005 the Ethical Trading Initiative (ETI) was alerted to allegations of serious interference in union rights in a Cambodian factory. In response, the organisation brought member companies sourcing from the Fortune Garments factory to meet with workers, intermediary suppliers, factory management and International Textile, Garment and Leather Workers Federation (ITGLWF) representatives, in order to seek a solution to the conflict. After negotiations, in May 2006 an agreement was reached by all parties resulting in: payment of compensation to unfairly dismissed workers; entry of the Coalition of Cambodian Democratic Apparel Workers Union into the factory; and acceptance of trade union demands over pay and conditions. 2. Nike, Adidas, Umbro and more: working group with trade unions to promote trade unionism Global (Source: http://www.ituc-csi.org) The International Trade Union Confederation reported in the lead up to the 2008 Beijing Olympics that sporting apparel companies including Nike, Adidas, New Balance, Umbro and Speedo had formed a joint working group with trade unions and NGOs to explore, amongst other issues, how to promote trade unionism and collective bargaining across the sector. 3. Agreement with UNI property services to ensure rights of workers Global: (Source: http://www.g4s.com/) In 2008, G4S, one of the worlds largest international security firms, signed a global agreement with UNI Property Services, a global union, to ensure that all of G4Ss 570,000 employees (spread across more than 110 countries) have the right to organise in a free and fair atmosphere. This is in addition to complying with international standards and national law in its relations with workers. 4. Training internal monitors on freedom of association Global:(Source: http://www.gapinc.com) In 2006 Gap Inc. partnered with the International Textile, Garment and Leather Workers Federation (ITGLWF), the global union federation for the apparel and textiles sector, to train its internal monitoring team on freedom of association and collective bargaining issues. In the same year, the ITGLWF provided Gap Inc. with a detailed briefing. Gap Inc. supplemented this training by

holding workshops on the Indian subcontinent and in south East Asia with the ITGLWF and local trade union representatives. These workshops aimed to strengthen engagement between Gap Inc.s Vendor Compliance Officers (responsible for inspecting factories and documenting violations) and key worker rights representatives at regional and local levels. 5. General Electric: expanding supplier due diligence to include freedom of association Global (Source: http://www.ge.com) In 2008, General Electric (GE) expanded its supplier due diligence programme to cover freedom of association, discrimination and harassment/retaliation. To do this it engaged in benchmarking activities with other companies to determine how they monitored and audited their suppliers in relation to the ILO principles. In addition, it reviewed its on-site assessment tools and guidance materials and developed new training materials. As a result, over 150 suppliers were asked to change their policies with respect to freedom of association. In addition, around 400 suppliers were asked to adopt an employee dispute resolution process. 6. Mod-Style: offering worker empowerment and training to suppliers China (Source: http://www.bsl.org.au) Mod-Style, a business sourcing optical frames from Asia, has the majority of its factories in China, where the only government-affiliated All-China Federation of Trade Unions is recognised and trade union rights are severely restricted. In 2000, ModStyle joined with the Brotherhood of St. Laurence (BSL), an Australian based charity, to implement business standards based on the conventions of the ILO and the OECD Guidelines for Multinational Enterprises. In the absence of independent trade unions, BSL and Mod-Style have offered worker empowerment training and capacity building in supplier factories to ensure that workers rights can still be adequately voiced and heard. Nonetheless, to date no factories have agreed to this training, with BSL and Mod-Style instead focusing on developing long-term, direct and stable relationships with factory owners and managers. Workplace behaviours that support legal compliance: A safe, dignified, and respectful work environment is not only mandated by the law, but also increases motivation and productivity of the employees. An example of review of business practices used to deal with allegations of harassment safe working environments should be considered especially for the females in the offices so as to make them feel confident and concentrate on work. Many smaller companies do not like writing certain aspects of ways of conducting business. For such companies, it is mere formality and they do

not appreciate people-oriented culture. Though it should be avoided because it is patently illegal because laws require that companies should mention very clearly the policies about guaranteeing specific protections to employees. Safeguarding employee information: Employees personal information should be safeguarded. Separate files should be maintained for personal information as contrasted with employment related information. Main objective behind it to ensure that while deciding the employees career with the company his personal information should not be considered. For example while deciding whether to promote employee or not, instead of his personal information like his religion, his work experience and capabilities should be considered. The employment decision needs to be made on work/performance-related information, not the personal information. Relevant materials in the work file include information on the employees education, related work experience, and performance evaluations in other positions within the company. An audit can clarify what information must be segregated and the laws that govern employees access to and copying of their files. Other employee information that must be safeguarded includes any materials that contain medical information. Employee performance management: An audit can review companys job descriptions for compliance (i.e., to determine whether the descriptions list the essential functions of the job). Various legal issues can arise due to performance related problems of employees. Audit will help in following improvements and reviews: A 90-day written standard performance evaluation form, An annual written standard performance evaluation form, A performance management/performance improvement plan, A description of the companys policy for both voluntary resignation and company-initiated termination, Wage and salary administration program, Bonus/stock option criteria. Safe work environment: Audit practices may also help the companies to know about factors that contribute to a safe work environment. A company may choose to develop an audit sheet tailored to a particular issue, such as the companys zero-tolerance policy for harassment. For example, a company may wish to review and evaluate its practices of dealing with inappropriate harassing behaviour in its workplace.

Q6 What are the areas to be concentrated on the HR audit? Prepare a questionnaire for conducting an audit for manpower planning ANS: Areas that should be audited include, but are not limited to: 1.Legal compliance (EEO, AA, ADA, FMLA, IRCA, etc.) 2. Record-keeping (personnel files, I-9s, applications, etc.) 3.Compensation/pay equity 4.Employee relations 5.Performance appraisal systems 6.Policies and procedures/employee handbook 7.Terminations 8.Health, safety and security (OSHA compliance, Drug-Free Workplace, AIDS in the workplace, etc.) Conducting a Human Resource Audit: A human resources audit usually involves review of all HR policies, practices, and procedures, whether or not they are formal. Audits are indispensable in various areas of HR. For example, an organisations policies and procedures must change with the employment laws which are constantly changing if it hopes to avoid litigation and thrive in the market. A comprehensive policy manual is one of the best ways to avoid lawsuits. However this is not enough. You must regularly conduct an employment law/ human resources audit to make sure that your policies reflect changes in employment laws. Methods used in the HR Audit process are: Interviews: In order to ascertain what the top management thinks about the future plans and opportunities available for the company, the auditors conduct individual interviews with the members of the top management. The top management can provide a perspective for a good HR audit. To collect information about the effectiveness of the Human Resource Development System, organisational culture, skills, styles, etc., auditors conduct group interviews with different level of managers. Interviews help the auditors in a number of ways. Some of the benefits are: Observation: Observation method is often used by the auditors to observe various aspects of the organisation. It helps them to evaluate the work place and work atmosphere. It also helps them to judge the extent to which a congenial and a supportive human welfare related climate exists in the organisation. Auditors mainly observe the physical facilities and living conditions, meetings, discussions and other transactions,

celebrations and other events related to organisational life and culture, training and other HRD-related facilities including the classroom, library, training centre, etc. Group discussions: For companies having thousands of employees, it is not always possible to meet each one individually to get feedback. In such circumstances, group discussions and workshops act as an effective mechanism to collect information about the effectiveness of the current system. In order to evaluate various aspects of HRD and for a participative diagnosis, various diagnostic workshops and group discussions can be conducted in large organisations. It is preferable to have cross-functional representation of employees in the same group or each function separately to keep a homogenous group. Workshops: These workshops give critical appraisal of policies and programmes as also initiate the change process. Its a potential diagnostic tool and can provide lots of information on HR processes and can help plan further intervention as OD (Organisation Development) Process. Questionnaires: Auditors use comprehensive questionnaires to garner information about HRD systems, processes, styles, and competencies. It helps in benchmarking of data. Analysis of records and documents: In order to ascertain the strengths and weaknesses of the human resource system of the organisation, the auditors scrutinise the published literature of the company like annual report, performance appraisal forms, training documents, employees' records files maintained by the HR department, in-house, journals and periodicals. Analysis of secondary data: Analysis of secondary data can give a lot of insight into the assets and liabilities of the company. The analysis may relate to age profile of the workforce, stagnation in career progression and analysis of training, etc. HR audit report: HR audit as a diagnostic tool helps in improving the HR functions, systems, competencies, culture, team, policies and practices. HR audit report provides insights into the sources of the problem and appropriate strategies can be taken. HR audit always keeps the business goals in focus.