audit_ppt_152

8/7/2019 audit_ppt_152

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SHRENUJ

HRD Audit

BK Parmar

Sr. Manager HR

SHRENUJ & CO. LTD

8/7/2019 audit_ppt_152


Start to End...

"The unexamined work life is

not worth living."

´The things that get measured gets managedµ

Socrates· (469-399 BC)

Kaplan (2000)

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What is HRD?...

� HRD is any process or activity that, either initially

or over the longer-term, has the potential todevelop adults work-based knowledge, expertise,productivity, & satisfaction, whether for personalor group/team gains or for the benefit of anorganisation, community nation or ultimately thewhole humanity

- Mc lean & Mc lean

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What is HRD?...

� Competence Building

� Commitment Building

� Culture Building

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What ?...

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An HRD Audit is like an

annual health check-up, it

plays a vital role in instilling a

sense of confidence in the

Management and the HR

functions of an organisation.

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What is HRD Audit?...

HRD Audit is a comprehensiveevaluation of the existing HRD

� Structure,

� Strategies,� Systems,

� Styles,

� Skills / Competencies &

� Culture

and their appropriateness to achievethe short-term and long-term goals of the organisation.

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HR Audit v/s HRD Audit...

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HRD Audit is evaluation of only few activities :-

� Strategies,

� Structure,

� Systems,

� Styles

� Skills & Competencies

� Culture

HR Audit is a comprehensiveevaluation of the entire gamut

of HR activities :-

� HR Cost

� HRD activities

� Health, Env. & Safety

� Legal Compliance

� Quality

� Compensation & Benefits

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How ?...

� In HRD Audit the skills, styles, systems, strategies,structure is studied and analysed using a variety of methodologies like

² interviews, (Individual and group, Top Management, Line Managers,HRD Staff, Workmen and others)

² questionnaires,

² observations,

² available records,

² workshops etc.

� This evaluation helps the organisation have a clearunderstanding of the lacunae and better align theHR processes with business goals.

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Why ?...

Organisations undertake HR audits for many reasons :

� To make the HR function business-driven.

� Change of leadership.

� To take stock of things & to improve HRD for expanding,diversifying, & entering into a fast growth phase.

� For growth & diversification.

� For promoting professionalism among employees & to switch

over to professional Management.� To find out the reasons for low productivity & improve HRD

strategies.

� Dissatisfaction with a particular component.

� To become employer of choice.

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Role of HRD Audit in Business Improvements«

� HRD audit is cost effective.

� It can give many insights into a company's affairs.

� It could get the top management to think in termsof strategic and long term business plans.

� Changes in the styles of top management

� Role clarity of HRD Department and the role of linemanagers in HRD

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� Improvements in HRD systems

� Increased focus on human resources and human

competencies

� Better recruitment policies and more professionalstaff

� More planning and more cost effective training

� Strengthening accountabilities through appraisalsystems and other mechanisms

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Role of HRD Audit in Business Improvements«

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HRD Score Card«

This model is based on the assumption

that:

Competent and committed employees are

needed to provide quality products &

services at competitive rates & ways that

enhance customer satisfaction.

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HRD Score Card«

� These four indices consist of the four pillars of HRD effectiveness. All the four dimensions are assessed using following ten point rating system.

A* Highest Score and Highest Maturity Level

A Very High Maturity levelB* High Maturity LevelB Moderately High Maturity LevelC* Moderate Maturity LevelC Moderately low Maturity levelD* Low Maturity LevelD Very low Maturity levelF Not at all present

U Ungraded

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Name of the Organisation ABC

HRD SystemMaturityGrade

HRD CompetenceScore

HRD CultureGrade

BusinessL inkageGrade

OverallHRD Maturityrating

B* C B* B B*CB*B

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Components to be audited

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HRD S ystems Maturit y«

The HRD systems maturity assesses theextent to which various HRD subsystemsand tools are well designed & are beingimplemented.

The systems should be appropriate and relevant tobusiness goals.

It should focus on current and future needs of thecorporation.

The HRD strategies and systems should flow fromthe corporate strategies.

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The systems should be well designed and shouldhave a structural maturity.

They should be implemented well.

The employees should be taking them seriously implementedwell.

The employees should be taking them seriously and followmeticulously what has been envisaged in each system.

The overheads of implementation should be low.

The subsystems should be well integrated andshould have internal synergy.

They should be adequate and should take care of the HRD requirements of the organisation.

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� The following subsystems are assessed anddepending upon the extent to which they meet the requirements a score is assigned.

Manpower planning and recruitment

Performance Management Systems

Feedback and Coaching Mechanisms

Training

Career development and Succession planning

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Job-rotation

OD Interventions

HR Information systems

Worker Development methods and systems

HR Information Systems

Potential Appraisal and Development

Other subsystems if any

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HRD Competencies in t he Corporation«

This dimension indicates the extent to which HRDcompetencies are well developed in the organisation.

The HRD Staff

The Top Management

Line managers and Supervisory Staff

Union and Association leaders

Workmen, Operators and Grass root level employees

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HRD Competencies in t he Corporation

Each of the groups is assessed on :

The level of HRD skills they possess

Their attitudes and support to learning and their owndevelopment

Extent to which they facilitate learning among others in thecorporation and those who work with them.

Their attitudes and support to HRD function and systems

Internal efficiency of the HRD function (HRD Department)

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HRD Staff «

y How professionally qualified are they?

y Do they seem to demonstrate adequate knowledge base?

y Are adequately trained in the appropriate HRD systems?

y Are they sensitive to internal customer requirements?

y How good is their skill base in implementing varioussystems?

y Do they demonstrate OCTAPACE values?

y Are they quality conscious?

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HRD Staff «

y Are they familiar with the business goals of the

corporation?

y Are they cost conscious?

y Are they empathetic?

� Do they spend adequate time trying to understand

the requirements of all categories of employees?

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T op Management «

� Do they understand HRD and its significance in achievingbusiness goals?

y How supportive are they of HRD interventions and values?

y Are their leadership styles facilitative of a learning culture?

y Are they willing to give the time needed for HRD?

y How well do they subscribe to the HRD values like theOCTAPACE values?

y How well do they practice HRD values.

y How committed are they to create a learning culture in theorganisation?

y Do they invest their time, effort and energies in employeedevelopment?

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Line Managers and Supervisor y Staff «

y How much do they understand the significance of HRD?

y Are they interested and motivated to develop

themselves?

y Are they willing to spend their time and effort indeveloping their subordinates?

y How supportive are they of HRD efforts?

� Do they have listening and other skills requiredfacilitating development of their juniors?

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U nion and Association Leaders«

y How much developmental role are they playing?

y Do they see their own role in HRD?

y Are they committed to create a learning organisation?

y Are they willing to promote employee development?

y Are they positive in their approach and perceive their own

roles a supportive of organisation building?

� Do they perceive the significance of Employee developmentfor organisation building?

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HRD Function«

Adequacy of manpower

Appropriateness of the structure

Cost consciousness of staff

Quality consciousness of the HRD staff

Responsiveness of the HRD department to the needs of employees, Managers, Staff, Workmen, Union Leaders?

Level of Internal customer satisfaction

Internal operational efficiency of the department?

Level of internal synergy among staff?

Are they the first to implement HRD systems? Do they implement them in an exemplary way?

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HRD Competencies in the Corporation«

A HRD Competency maturity core is assigned on the basis of the competency levels of all categories.

� A* = All categories of employees have extremely high

competence base in HRD (knowledge, attitudes, values andskills) and the HRD department has a high internal efficiency and satisfaction levels.

� B = The competence levels of every group is at an acceptablelevel and the internal efficiency of the HRD department andthe internal customer satisfaction are acceptable levels.

� D = The competencies of more than one group are belowacceptable levels and/or the HRD department is notinternally efficient and does not meet the requirements of theminimum internal customer satisfaction.

� F = Total failure on almost

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HRD Styles, Culture and Values«

� The extent to which the leadership and managerialstyles are empowering and competence building isassessed by studying the leadership and

supervisory styles.

� The extent to which the HRD culture and valuesare practised and stabilised in the corporation aremeasured.

² The HRD culture is culture that promotes Humanpotential development.

² It is also a culture that promotes a learning organisation.

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Business Relevance of HRD«

� This score indicates the extent to which HRD

efforts (tools, processes, culture etc.) are driven to

achieve business goals.

� The business goals includes:y Business Excellence including profitability and other

outcomes the organization is expected to achieve;

y Internal operational efficiencies;

y Internal Customer satisfaction;

y External Customer satisfaction;y Employee motivation and commitment;

y Cost effectiveness and cost consciousness among

employees;

� Quality orientation;

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?

Thank You

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HRD Audit v/s PCMM S ystem...

HRD Audit PCMM

Focus is on People & HR practices

Aims at evaluating & improving

HRD competencies in any

organisation.

Aims at improving workforce

practices in software industry.

Based on Quality, TQM & process

improvement models.

Based on HRD - HRD strategies,

structure, competencies, styles, &

culture & takes into consideration

Quality concerns & OD

Does not believe that organisation

could be classified into any stage or

level, assumes that any organisatio

could be assessed on a 10 - point

maturity scale on any givendimension.

Conceptualises the organisation

as passing through 5 maturity

levels, one superior to the other &

describes process areas of each

level.

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PCMM Maturit y Framework...

Level 4

Predictable

Level 3

Def ined

Level 5Optimizing

Competency

Management

Capability

Management

Empowered &

measured practices

Level 2

Managed

Competency

based practices

Contin

uo

usly Impro

vingpractices

People

Management

Level 1

Initial

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What is involved in Good HRD?...

� Top Management Philosophy and understanding

� Competent HR Staff and Department

� Line Manager Attitudes

� Union and Employee Support

� Use of appropriate Systems

� Periodic Renewal Exercises

� Business relevance of HRD systems and Practices

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Met hodolog y of HRD Audit «

Examines long term and short term plans and vision toassess Competency requirements

Identifies broad competency requirements for future BusinessGoals

Examines the existing HRD strategies, systems and practicesand assess their appropriateness to have the requiredcompetencies

Examines the adequacies and inadequacies of HRD

structure, staff and their competencies, line managers andtheir attitudes, top management and their support, unionsand their role in competence building for future

Suggests mechanisms for improving all these in the businesscontext

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� The HRD Scorecard is a measure of the HRD maturity level of an organization. The scorecard is based onthe following assumptions and takes into consideration the research based understanding gained in the lastfew decades regarding HRD. The maturity level of HRD in an organization is indicated by thefollowing factors:- HRD Systems Maturity- HRD Competencies of the Employees including the HR Department- HRD Culture of the Organization- HRD Influence on the Business Goals or Business Linkages of HRD.

This model is based on the assumption that:

� - Competent and motivated employees ar e needed to pr ovide quality pr oducts and services atcompetitive rates and ways that enhance customer satisf action.

� - HRD Systems Maturity Score: Competencies and commitment can be developed through appropriateHRD mechanisms (tools and systems). In a HRD Mature organization there will be well-developed HRDsystems and HRD systems Maturity can be measured through HRD audit.

- HRD Competence Score: HRD Competencies of the HRD department and the line managers play a

significant role in implementing the systems and processes in ways that could ensure employeesatisfaction, competence building and customer satisfaction linkages. The competencies of the staff andthe other employees can be measured in terms of an index.

- The HRD Culture: values and processes created by the HRD tools, staff and their styles also play acrucial role in building sustainable competencies in the organization. These need to be measured andmonitored. 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. In the traditional family ownedorganizations in those years where there were no systems approaches there used to be good degree of HRD culture, which has resulted in effective functioning and business.

� - Business Linkage Score: Business linkages of HRD are very crucial component of HRD effectiveness.HRD s stems com etencies and the culture must be ali ned with the business oals of the cor oration.

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HRD Competencies in the Corporation«

The HRD system should focus on the above dimensions.

y Are the HRD systems aligned towards the above mentioned orother important business goals of the corporation?

y Does the HRD staff reflect adequate understanding thecommitment to the business goals of the organisation?

� Are the HRD processes and culture drive employees and thecorporation and interviews of the auditor with the employees.Similar ratings are assigned for this dimensions.

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audit_ppt_152

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