HR AUDIT

Q.1. Discuss the Key HR Elements and Resource .

A.1. Did you know that it costs approximately 1.5 times an employee’s base salary to re-
hire and re-train for that position?Did you know it’s an even higher expense for
managerial positions?
Many companies and managers fail to remember that it costs more to re-hire for an open
position verses investing in tetention programs for the employee long term.Too many
organizations are not pro-active in creating retention programs that will help keep good
employees.

Employees primarily quit their job for these reasons.they had a poor manager or position
was not challenging enough:With management coaching and advice on how to develop
employees for long term your retention rate will increase.Many companies today are
finding that the key to an effective retention program is found in a strategy that includes
an employee’s personal ambition and the aspirations they possess for their organizations.

How do you hire the best candidate for the job?

Here are a few question to help determine if you have found the best candidate for the
job:
1.When answering interview questions did they provide work related experience and
exhibit skills that were directly applicable to the role?
2.If there were job gaps,do you know why?
3Why did they leave their previous organizations?
4.Does the candidate fit into your company culture,team and exhibit the same work
values?
5.Interview for interpersonal and behavioral skills by asking open ended questions such
as:-
--Tell me about a time when you worked on a team project and what role you played.
--Give me an example of when you worked with a difficult person and what u did to
overcome the situation.
--Tell me about a time when you find a problem that wasn’t obvious to the parties
Q.2 Write a note on steps involved in competency mapping.

A.2. Competency Mapping

Competency Mapping is a process of identifying the key competencies for an

organization and/or a job and incorporating those competencies throughout the various
processes (i.e. job evaluation, training, recruitment) of the organization.

Following are the steps included in competency mapping:

Step 1: To classify the competencies under the types of competencies.

Step 2: To determine type of competency that is the most critical for an oranisation.
Step 3: To determine the critical competencies that are required for superior performance
at a given level in the organization (educational institution).

Classification of the Basic Competencies in the Competency Grid

Motivational Competencies:

o Continuous Learning

o Perseverance

o Achievement Orientation

o Time Management
Intellectual Competencies:

o Communication

o Creativity

o Analytical Ability

o Planning and Organising

Social Competencies:

o Team Work

o Inter-personal Skills

o Responsibility

o Customer Satisfaction
Emotional Competencies:

o Initiative

o Optimism

o Self Confidence

o Leadership
o Managing Stress

o Managing Change

Mapping the Competencies

A research survey can be conducted to test the level of competency of an employee based
on the above aspects. The researcher has to take into consideration only the well
performing employees in an organization while conducting the research survey. Because,
the critical competencies needed for excellent performance can be identified only from
the well performing employees of an organization. Hence, the researcher has to ignore
the non-performing employees and has to conduct the survey only with well performing
employees. The top ten competencies perceived as important or vital by the well
performing employees can be emphasized for others in the organization. The other
employees can be conducted with training and development programmes to acquire the
critical competencies.

Conclusion

Competency mapping helps an organization to identify the critical competencies that are
essential for employees to excel in an organization. By identifying the critical
competencies existing with well performing employees, the other employees can also be
stressed with the same by conducting training and development programmes.

Q.3 Write a note on the Performance management audit .

A.3. Performance Management Audit

An effective performance
Ever get the feeling that "tinkering" with the management system sets
performance appraisal form doesn't make a whole employees up to succeed, so
lot of sense if the real problem is the larger they can help your
system of Performance Management? organization succeed.
Fred Nickols
Performance management is the organization's
whole system of managing its work force for
optimum performance. For each individual
worker, this system begins when they are hired and ends when they separate from the
organization, and includes issues like:

• Performance expectations when a person is hired

• Frequency of Performance Discussions
• Participation in Goal Setting
• Matching people to jobs that use their skills
• Importance of Teamwork & Group Performance
• Competence-based Promotions
 • Career & Succession Planning
• Skill Level of Managers
• Perceived Fairness of Appraisal Process

Performance Management Diagnostic is an assessment instrument developed by

ReliableSurveys.com to help organizations diagnose their performance management. It is
a participative tool that examines the above issues and more to detail the strong points
and areas of needed improvement in your organization's performance management
system.

What Performance Management Audit Delivers

• A clear picture of how your people view your Performance Management System
right now (your Actual).
• A clear picture of how your people think the system should be improved (your
Ideal).
• A clear picture of how experts in Performance Management think the system
should be (experts' Ideal).
• A "Gap Analysis" that shows you graphically what's working, what's not, and
which direction to go.
• Results that are based on a consensus of stakeholders, however you choose to
define them. You may decide to just find out how line managers think, or maybe
include HR staff, or the whole organization.
• Credible results, based on a strong comparative questionnaire process, the Scaled
Comparison, to answer the toughest statistical questions from the ever-present
skeptics.
• A questionnaire process that is cost-effective and time-efficient, designed and
conducted by in-house personnel requiring little or no consultant help.

Q.1 Explain in detail the audit process

A.1. Initial Steps of the Audit - Notification, Planning, Opening

Meeting and Fieldwork

1. The 10 steps of the audit process begins with notification. The notification
process alerts the party to be audited of the date and time of the process. The
notification also will list the documents that the order wishes to review in order to
understand the organization of the company. The next step, planning, is the steps
the auditor takes, before the audit, to identify key areas of risk and areas of
concern. This step is usually accomplished in a series of meetings with auditing
staff. This leads up to the opening meeting between the auditing staff and senior
management of the auditing target as well as administrative staff. The auditors
will describe the process they will undertake. Management will describe areas of
concern to them and the schedule of the employees that must be consulted. The
 next step, fieldwork, begins after the results of the meeting are used to adjust the
final audit plans. Employees are notified of the audit, schedules are drawn up
regarding the activities of the audit staff, and initial investigation is begun after
learning of business procedures, interviewing key staff, testing current business
practices by sampling, reviewing the law and testing internal rules and practices
for reasonableness.

The Audit Itself - Communication, Draft Audit, Management Response

2. Communication is the next step. The audit team should consistently be in contact
with the corporate auditor to clarify processes, gain access to documents and
clarify procedures. At the completion of the audit, the next step, the draft audit, is
prepared. The draft audit will detail what was done and what was found, a
distribution list of parties to receive preliminary results, and a list of concerns.
The draft is given to management to review, edit and suggest changes, probe areas
of concern and correct errors. Upon making final corrections, the report is given
to management for the seventh step, the management response. Management is
requested to answer the report by stating whether they agree with the problems
cited, the plan to correct noted problem and the expected date by which all issues
will have been addressed.

Ending the Auditing Process-Final Meeting, Report Distribution, Feedback

3. The final meeting is designed to close loose ends, discuss the management
response and address the scope of the audit. The ninth step is the report
distribution, where the final audit report is sent to appropriate officials inside
and outside the audit area. The last step is the audit feedback whereby the audited
company implements the recommended changes and the auditors review and test
the quality, adherence and effects of the adopted changes. This continues until all
issues are adopted and the next audit cycle begins.

Q.2 Explain the five types of traits/factors.

A.2. In contemporary psychology, the "Big Five" factors of personality are five broad
domains or dimensions of personality which have been scientifically discovered to define
human personality at the highest level of organization (Goldberg, 1993 These five over-
arching domains have been found to contain and subsume more-or-less all known
personality traits within their five domains and to represent the basic structure behind all
personality traits. They have brought order to the often-bewildering array of specific
lower-level personality concepts that are constantly being proposed by psychologists,
which are often found to be overlapping and confusing. These five factors provide a rich
conceptual framework for integrating all the research findings and theory in personality
psychology. The big five traits are also referred to as the "Five Factor Model" or FFM
(Costa & McCrae, 1992), and as the Global Factors of personality (Russell & Karol, 1994
The Big Five model is considered to be one of the most comprehensive, empirical, data-
driven research findings in the history of personality psychology. Identifying the traits
and structure of human personality has been one of the most fundamental goals in all of
psychology. Over three or four decades of research, these five broad factors were
gradually discovered and defined by several independent sets of researchers (Digman,
1990).] These researchers began by studying all known personality traits and then factor-
analyzing hundreds of measures of these traits (in self-report and questionnaire data, peer
ratings, and objective measures from experimental settings) in order to find the basic,
underlying factors of personality.

At least three sets of researchers have worked independently for decades on this problem
and have identified generally the same Big Five factors: Goldberg at the Oregon
Research Institute, Cattell at the University of Illinois,[10][11][12][13] and Costa and McCrae at
the National Institutes of Health. These three sets of researchers used somewhat different
methods in finding the five traits, and thus each set of five factors has somewhat different
names and definitions. However, all three sets have been found to be highly inter-
correlated and factor-analytically aligned.[18][19][20][21][22]

It is important to note that these traits have been found to organize personality at the
highest level, and so they are most helpful as a conceptual, organizing framework for
regular, lower-level personality traits. However, because the Big Five traits are so broad
and comprehensive, they are not nearly as powerful in predicting and explaining actual
behavior as are the more numerous lower-level traits. Many studies have confirmed that
in predicting actual behavior the more numerous facet or primary level traits are far more
effective (e.g. Mershon & Gorsuch, 1988[23]; Paunonon & Ashton, 2001 The Big Five
factors and their constituent traits can be summarized as follows:

• Openness - appreciation for art, emotion, adventure, unusual ideas, curiosity, and
variety of experience.
• Conscientiousness - a tendency to show self-discipline, act dutifully, and aim for
achievement; planned rather than spontaneous behavior.
• Extraversion - energy, positive emotions, urgency, and the tendency to seek
stimulation in the company of others.
• Agreeableness - a tendency to be compassionate and cooperative rather than
suspicious and antagonistic towards others.
• Neuroticism - a tendency to experience unpleasant emotions easily, such as
anger, anxiety, depression, or vulnerability; sometimes called emotional
instability.

When scored for individual feedback, these traits are frequently presented as percentile
scores. For example, a Conscientiousness rating in the 80th percentile indicates a
relatively strong sense of responsibility and orderliness, whereas an Extraversion rating in
the 5th percentile indicates an exceptional need for solitude and quiet.

Although these trait clusters are statistical aggregates, exceptions may exist on individual
personality profiles. On average, people who register high in Openness are intellectually
curious, open to emotion, interested in art, and willing to try new things. A particular
individual, however, may have a high overall Openness score and be interested in
learning and exploring new cultures. Yet he or she might have no great interest in art or
poetry. Situational influences also exist, as even extraverts may occasionally need time
away from people.

The most frequently used measures of the Big Five comprise either items that are self-
descriptive sentences[26] or, in the case of lexical measures, items that are single
adjectives.[27] Due to the length of sentence-based and some lexical measures, short forms
have been developed and validated for use in applied research settings where
questionnaire space and respondent time are limited, such as the 40-item balanced
International English Big-Five Mini-Markers.[28] or a very brief (10 item) measure of the
big 5 domains [29].

Openness to Experience
Main article: Openness to experience

Openness is a general appreciation for art, emotion, adventure, unusual ideas,

imagination, curiosity, and variety of experience. The trait distinguishes imaginative
people from down-to-earth, conventional people. People who are open to experience are
intellectually curious, appreciative of art, and sensitive to beauty. They tend to be,
compared to closed people, more creative and more aware of their feelings. They are
more likely to hold unconventional beliefs.

People with low scores on openness tend to have more conventional, traditional interests.
They prefer the plain, straightforward, and obvious over the complex, ambiguous, and
subtle. They may regard the arts and sciences with suspicion, regarding these endeavors
as abstruse or of no practical use. Closed people prefer familiarity over novelty. They are
conservative and resistant to change.

Sample Openness items

• I have a rich vocabulary.

• I have a vivid imagination.
• I have excellent ideas.
• I spend time reflecting on things.
• I use difficult words.
• I am not interested in abstractions. (reversed)
• I do not have a good imagination. (reversed)
• I have difficulty understanding abstract ideas. (reversed)[30]

Conscientiousness
Main article: Conscientiousness

Conscientiousness is a tendency to show self-discipline, act dutifully, and aim for

achievement. The trait shows a preference for planned rather than spontaneous behavior.
It influences the way in which we control, regulate, and direct our impulses.
Conscientiousness includes the factor known as Need for Achievement (NAch).

The benefits of high conscientiousness are obvious. Conscientious individuals avoid

trouble and achieve high levels of success through purposeful planning and persistence.
They are also positively regarded by others as intelligent and reliable. On the negative
side, they can be compulsive perfectionists and workaholics.

Sample Conscientiousness items

• I am always prepared.
• I am exacting in my work.
• I follow a schedule.
• I get chores done right away.
• I like order.
• I pay attention to details.
• I leave my belongings around. (reversed)
• I make a mess of things. (reversed)
• I often forget to put things back in their proper place. (reversed)
• I shirk my duties. (reversed)[30]

Extraversion
Main article: Extraversion and introversion

Extraversion is characterized by positive emotions, surgency, and the tendency to seek

out stimulation and the company of others. The trait is marked by pronounced
engagement with the external world. Extraverts enjoy being with people, and are often
perceived as full of energy. They tend to be enthusiastic, action-oriented individuals who
are likely to say "Yes!" or "Let's go!" to opportunities for excitement. In groups they like
to talk, assert themselves, and draw attention to themselves.

Introverts lack the exuberance, energy, and activity levels of extraverts. They tend to be
quiet, low-key, deliberate, and less involved in the social world. Their lack of social
involvement should not be interpreted as shyness or depression. Introverts simply need
less stimulation than extraverts and more time alone.

Sample Extraversion items

• I am the life of the party.

• I don't mind being the center of attention.
• I feel comfortable around people.
• I start conversations.
• I talk to a lot of different people at parties.
• I am quiet around strangers. (reversed)
• I don't like to draw attention to myself. (reversed)
• I don't talk a lot. (reversed)
 • I have little to say. (reversed)[30]

Agreeableness
Main article: Agreeableness

Agreeableness is a tendency to be compassionate and cooperative rather than suspicious

and antagonistic towards others. The trait reflects individual differences in general
concern for social harmony. Agreeable individuals value getting along with others. They
are generally considerate, friendly, generous, helpful, and willing to compromise their
interests with others. Agreeable people also have an optimistic view of human nature.
They believe people are basically honest, decent, and trustworthy.

Disagreeable individuals place self-interest above getting along with others. They are
generally unconcerned with others’ well-being, and are less likely to extend themselves
for other people. Sometimes their skepticism about others’ motives causes them to be
suspicious, unfriendly, and uncooperative.

Sample Agreeableness items

• I am interested in people.
• I feel others’ emotions.
• I have a soft heart.
• I make people feel at ease.
• I sympathize with others’ feelings.
• I take time out for others.
• I am not interested in other people’s problems. (reversed)
• I am not really interested in others. (reversed)
• I feel little concern for others. (reversed)
• I insult people. (reversed)[30]
• I like being isolated. (reversed)

Neuroticism
Main article: Neuroticism

Neuroticism is the tendency to experience negative emotions, such as anger, anxiety, or

depression. It is sometimes called emotional instability. Those who score high in
neuroticism are emotionally reactive and vulnerable to stress. They are more likely to
interpret ordinary situations as threatening, and minor frustrations as hopelessly difficult.
Their negative emotional reactions tend to persist for unusually long periods of time,
which means they are often in a bad mood. These problems in emotional regulation can
diminish the ability of a person scoring high on neuroticism to think clearly, make
decisions, and cope effectively with stress.

At the other end of the scale, individuals who score low in neuroticism are less easily
upset and are less emotionally reactive. They tend to be calm, emotionally stable, and
free from persistent negative feelings. Freedom from negative feelings does not mean that
low scorers experience a lot of positive feelings. Frequency of positive emotions is a
component of the Extraversion domain.

Sample Neuroticism items

• I am easily disturbed.
• I change my mood a lot.
• I get irritated easily.
• I get stressed out easily.
• I get upset easily.
• I have frequent mood swings.
• I often feel blue.
• I worry about things.
• I am relaxed most of the time. (reversed)
• I seldom feel blue

The Big five factors are Openness, Conscientiousness, Extraversion, Agreeableness, and
Neuroticism (OCEAN, or CANOE if rearranged). The Neuroticism factor is sometimes
referred to as Emotional Stability. Some disagreement remains about how to interpret the
Openness factor, which is sometimes called "Intellect Each factor consists of a cluster of
more specific traits that correlate together. For example, extraversion includes such
related qualities as sociability, excitement seeking, impulsiveness, and positive emotions.

The Five Factor Model is a purely descriptive model of personality, but psychologists
have developed a number of theories to account for the Big Five.

Q.3 Discuss the key elements of HR Scorecard.

A.3 By linking clearly defined department objectives and performance to the company’s
strategic business goals, the HR balanced scorecard can serve as a way of focusing
human resources staff on activities that will support the company’s goals. It also
demonstrates the strategic value of HR by defining and measuring HR's contribution in
concrete, clearly understood terms. The Balanced Scorecard (Kaplan & Norton, 1996)
provides a system that leverages the traditional measures available currently for human
resources with metrics of performance from four additional perspectives—financial,
customers, internal business processes and learning and growth.
Using the area of recruiting as an example, a balanced scorecard would look something
like this:

• Objective: Reduce turnover costs.

• Description: Develop effective recruiting methods and new-hire orientation
methods to optimize the retention of new hires.
• Actions:
 1. Identify key attributes of successful employees who stay at company for two or
more years.
2. Utilize technology more effectively for recruiting and screening applications.
3. Identify selection methods that will contribute to successful hires
4. Integrate branding efforts into recruiting.
5. Revise orientation program to ensure new-hire retention.

• Measures:

1. Cost-per-hire (financial).
2. Turnover rates and costs (financial).
3. Time-to-fill (business process).
4. Customer satisfaction with new-hire performance (customer).
5. New-hire satisfaction with orientation (learning and growth).
6. Supervisor satisfaction with orientation (learning and growth).

In addition to alignment with company goals, the HR scorecard must also contain the
following elements in order to be truly effective: accountability, validity and actionable,
measurable results.

In the above example, who is accountable for the retention of employees? It’s a joint role
between HR and the line manager. HR is responsible for developing retention strategies,
while the line manager is responsible for providing the feedback on whether the strategies
are successful.

The HR scorecard must be valid. In other words, the measurement system must contain
metrics that are understandable, aligned to the objective and can be backed up with solid
data.

For the balanced scorecard to be meaningful, it must contain only those measures that are
most important to the objective and the company’s strategic plan. In other words, can an
action be taken as a result of those measures?

The balanced scorecard must focus on results. For example, simply measuring turnover
or time-to-fill is ineffective if no action is taken as a result of those measures. More
meaningful measures that are aligned clearly with the company’s strategic plan are
productivity and retention.

When successfully executed, the HR scorecard can be an extremely useful method of

aligning HR with the company’s strategic plan. The key to success is careful planning
and execution.