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Submitted By: Abhinav Aggarwal Danish Vohra Harvinder Singh Jiwanjot Singh Jotsaroop Singh Juhhie Mendiratta Manmeet Singh
What is HRD?
Competence Building Commitment /Motivation Building Culture Building
and their appropriateness to achieve the short-term and long-term goals of the organisation.
Functional Audit
This aspect of the HR audit examines: HRD systems and procedures, encompassing training and development, Organisation development and career development Whether the HRD systems and procedures are aligned with the HRM systems Procedures to promote competence, confidence and performance.This includes job design, HR planning, performance management systems, selection and sta ffing, the HR information systems and whether HR helps management keep track of costs and benefits in HRD and HRM. This includes ensuring fairness and consistency in compensation and benefits, employee relations and HR record keeping, particularly in regard to providing timely management informa tion
Service Audit This aspect of the audit activity looks at the service responsiveness and reliability of the HR function. This will include an asse ssment of such things as response times, willingness to help line managers/staff, the knowledge of the HR staff Compliance Audit This assesses the degree to which HR is compliant with the relevant legislati on e.g. Labour Laws, etc. This part of the audit will assess whether the req uired policies, practices, and procedures exist and to what extent management and labour have been trained to enact these codes of best practice.
Financial Management Audit A comprehensive audit of HR systems and procedures needs to go beyond the inspection level. Basic financial ratios/sco recard measures appropriate for a staff function like HR need to be put in place to audit the efficiency of the various HR functions. Strategic Audit Each organisation should have an overall people management strategy that aims to increase the value of employ ees to the business. The strategic audit will examine whether th e HR strategy, policies and processes are aligned with, and sup port, the achievement of the businesss mission and objectives.
Determine the breath of the audit and exactly what areas should be targeted for review.
Strengths of the job design, how well the department handles recruitment and selection, and its timeliness and ability to respond to staffing needs.
Methodology Adopted
Interviews
Individual Interviews with Top Management Group Interviews with other Staff
Questionnaires Group Discussions and Workshops Observation Analysis of records and documents
Name of the Organisation HRD Systems Maturity B* HRD Competenc e Score C HRD Culture Grade B* Business Linkage Grade B
A* Highest Score and Highest Maturity Level A Very High Maturity level
D* Low Maturity Level D F U Very low Maturity level Not at all present Ungraded
Assumption
Competent and motivated employees are needed to provide quality products and services at competitive rates and ways that enhance customer satisfaction
The HRD Culture Values and processes created by the HRD tools, staff and their styles also play a crucial role in building sustainable competencies in the organization. These need to be measured and monitored. It is possible in some corporations (for example small corporations) to have very little of HR systems and yet have a high level of HR competencies and HR culture. Business Linkage Score Business linkages of HRD are very crucial component of HRD effectiveness.HRD systems competencies and the culture must be linked with the business goals of the corporation
Regardless of the type of company or the size of your HR department, the HR Audit is a simple, yet comprehensive tool to analyze and improve your effectiveness as a function. The audit is made up of four main steps: 1) Define desired HR practices for your organization 2) Assess current practices against the criterion that you have established 3) Analyze the results 4) Establish improvement goals and take action
Four-Step Approach
Step One--Defining Audit Statements
A good starting point is to take some time and reflect on the legal requirements and programs that the department must administer. Consider your areas of responsibility and traditional HR practices covered by your function: They may include HR Planning, Staffing, Performance Management, Employee Relations, Compensation and Benefits, Training and Development, Safety and Wellness. Employee Surveys, and Communications. Finally, other areas to consider are company initiatives that the HR function may be required to support, i.e. internal customer requirements.
The ideal time to complete an audit is just prior to the annual planning process. With audit information in hand, you can be poised to take advantage of your insights into setting next year's goals. There are two aspects of setting goals: maintenance of current good practices and development of improved practices. Knowing the capacity and capability of the HR department and system is critical in developing a realistic plan.
This is the point in the audit process, where definitions are reviewed and modified to create a new and improved vision of the HR system as you wish it to be. Doing this on an annual basis allows practices to be improved and benefits shared.
OSHA incident rates Development and sharing of Total Compensation Philosophy Reduction in throughput time of filling open positions Employee turnover rate HR customer survey results % of training time/employee Reduction in throughput time of administrative requests Business results
Conclusion
HRD Audit is a comprehension evaluation of the current hr strategies ,structure ,style and skills in the context of the short and long term business plans of a company. its main objective is to align the hr function with business goals or to create a business driven hr function.