HRD Audit

SUBMITTED BY-
SATYAJEET SUMAN
SAMEER SARDANA
SUKRIT CHANDRA
SUMEET
AASHISH ARORA
SHEKHAR MALHOTRA
RAVINDRA SINGH
ATWAL
Start to End...
"The unexamined work life is
not worth living."

The things that get measured gets managed






Socrates (469-399 BC)




Kaplan (2000)
What is HRD?...


E HRD is any process or activity that, either initially
or over the longer-term, has the potential to
develop adults work-based knowledge, expertise,
productivity, & satisfaction, whether for personal
or group/team gains or for the benefit of an
organisation, community nation or ultimately the
whole humanity
- Mclean & Mclean

What is HRD?...

E Competence Building

E Commitment Building

E Culture Building
What ?...
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.
What is HRD Audit?...
HRD Audit is a comprehensive evaluation
of the existing HRD
Structure,
Strategies,
Systems,
Styles,
Skills / Competencies &
Culture

and their appropriateness to achieve the
short-term and long-term goals of the
organisation.
HR Audit v/s HRD Audit...




HRD Audit is evaluation of
only few activities :-

Strategies,
Structure,
Systems,
Styles
Skills & Competencies
Culture






HR Audit is a comprehensive
evaluation of the entire gamut
of HR activities :-

HR Cost
HRD activities
Health, Env. & Safety
Legal Compliance
Quality
Compensation & Benefits

How ?...
E In HRD Audit the skills, styles, systems, strategies,
structure is studied and analysed using a variety of
methodologies like
interviews, (Individual and group, Top Management, Line Managers,
HRD Staff, Workmen and others)
questionnaires,
observations,
available records,
workshops etc.

E This evaluation helps the organisation have a clear
understanding of the lacunae and better align the
HR processes with business goals.
Why ?...
Organisations undertake HR audits for many reasons :


E To make the HR function business-driven.
E Change of leadership.
E To take stock of things & to improve HRD for expanding,
diversifying, & entering into a fast growth phase.
E For growth & diversification.
E For promoting professionalism among employees & to switch
over to professional Management.
E To find out the reasons for low productivity & improve HRD
strategies.
E Dissatisfaction with a particular component.
E To become employer of choice.

Role of HRD Audit in Business Improvements

E HRD audit is cost effective.

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

E It could get the top management to think in terms
of strategic and long term business plans.

E Changes in the styles of top management

E Role clarity of HRD Department and the role of line
managers in HRD

Role of HRD Audit in Business Improvements

E Improvements in HRD systems

E Increased focus on human resources and human
competencies

E Better recruitment policies and more professional
staff

E More planning and more cost effective training

E Strengthening accountabilities through appraisal
systems and other mechanisms
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.
HRD Score Card
E 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 level
B* High Maturity Level
B Moderately High Maturity Level
C* Moderate Maturity Level
C Moderately low Maturity level
D* Low Maturity Level
D Very low Maturity level
F Not at all present
U Ungraded

Name of the Organisation ABC
HRD
System
Maturity
Grade
HRD
Competence
Score
HRD
Culture
Grade
Business
Linkage
Grade
Overall
HRD
Maturity
rating
B* C B* B B*CB*B

Components to be audited
HRD Systems Maturity
The HRD systems maturity assesses the
extent to which various HRD subsystems
and tools are well designed & are being
implemented.

The systems should be appropriate and relevant to
business goals.

It should focus on current and future needs of the
corporation.

The HRD strategies and systems should flow from
the corporate strategies.

HRD Systems Maturity
The systems should be well designed and should
have a structural maturity.
+ They should be implemented well.
_ The employees should be taking them seriously implemented
well.
_ The employees should be taking them seriously and follow
meticulously what has been envisaged in each system.
_ The overheads of implementation should be low.
The subsystems should be well integrated and
should have internal synergy.
; They should be adequate and should take care of
the HRD requirements of the organisation.

HRD Systems Maturity
E The following subsystems are assessed and
depending 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

HRD Systems Maturity
+Job-rotation

+OD Interventions

+HR Information systems

+Worker Development methods and systems

+HR Information Systems

+Potential Appraisal and Development

+Other subsystems if any
HRD Competencies in the Corporation

This dimension indicates the extent to which HRD
competencies 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

HRD Competencies in the Corporation
Each of the groups is assessed on :

The level of HRD skills they possess

Their attitudes and support to learning and their own
development

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

Their attitudes and support to HRD function and systems

Internal efficiency of the HRD function (HRD Department)

HRD Staff
How professionally qualified are they?

Do they seem to demonstrate adequate knowledge base?

Are adequately trained in the appropriate HRD systems?

Are they sensitive to internal customer requirements?

How good is their skill base in implementing various systems?

Do they demonstrate OCTAPACE values?

Are they quality conscious?

HRD Staff

Are they familiar with the business goals of the
corporation?

Are they cost conscious?

Are they empathetic?

E Do they spend adequate time trying to understand
the requirements of all categories of employees?
Top Management
E Do they understand HRD and its significance in achieving
business goals?
How supportive are they of HRD interventions and values?
Are their leadership styles facilitative of a learning culture?
Are they willing to give the time needed for HRD?
How well do they subscribe to the HRD values like the
OCTAPACE values?
How well do they practice HRD values.
How committed are they to create a learning culture in the
organisation?
Do they invest their time, effort and energies in employee
development?

Line Managers and Supervisory Staff
How much do they understand the significance of
HRD?

Are they interested and motivated to develop
themselves?

Are they willing to spend their time and effort in
developing their subordinates?

How supportive are they of HRD efforts?

E Do they have listening and other skills required
facilitating development of their juniors?

Union and Association Leaders
How much developmental role are they playing?

Do they see their own role in HRD?

Are they committed to create a learning organisation?

Are they willing to promote employee development?

Are they positive in their approach and perceive their own
roles a supportive of organisation building?

E Do they perceive the significance of Employee development for
organisation building?

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?

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

E A* = All categories of employees have extremely high
competence base in HRD (knowledge, attitudes, values and
skills) and the HRD department has a high internal efficiency
and satisfaction levels.
E B = The competence levels of every group is at an acceptable
level and the internal efficiency of the HRD department and
the internal customer satisfaction are acceptable levels.
E D = The competencies of more than one group are below
acceptable levels and/or the HRD department is not
internally efficient and does not meet the requirements of the
minimum internal customer satisfaction.
E F = Total failure on almost
HRD Styles, Culture and Values
E The extent to which the leadership and managerial
styles are empowering and competence building is
assessed by studying the leadership and
supervisory styles.

E The extent to which the HRD culture and values
are practised and stabilised in the corporation are
measured.

The HRD culture is culture that promotes Human potential
development.
It is also a culture that promotes a learning organisation.
Business Relevance of HRD
E This score indicates the extent to which HRD
efforts (tools, processes, culture etc.) are driven to
achieve business goals.
E The business goals includes:
Business Excellence including profitability and other
outcomes the organization is expected to achieve;
Internal operational efficiencies;
Internal Customer satisfaction;
External Customer satisfaction;
Employee motivation and commitment;
Cost effectiveness and cost consciousness among
employees;
Quality orientation;