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HRD AUDIT AND ITS METHODOLOGY

PRESENTED BY: Abhinandan Seth Abhishek Jatav Anooj Kapoor

WHAT IS HRD AUDIT


HRD Audit is a comprehensive evaluation of the current HRD strategies, structure systems, styles and skills in the context of the short-term and long-term business plans of a company.

It is a tool to assess the present. The blueprint for the future


It means, a systematic assessment of the strengths, limitations, and developmental needs of HR management in the context of organizational performance.

WHAT IS HRD AUDIT


HRD Audit is a comprehensive evaluation of the existing HRD
Structure, Strategies, Systems, Styles,

Skills / Competencies &


Culture

EXAMINES LINKAGES WITH OTHER SYSTEMS


The HRD audit examines the linkages between HRD and other systems like total quality management, personnel policies, strategic planning etc. The company needs to have for developing new competencies and the systems that need to be strengthened, the styles and culture that has compatibility with HRD processes in the company particularly the styles of the top management, etc.

BUSINESS DRIVEN
HRD audit always keeps the business goals always on focus. It attempts to bring in professionalism in HRD HRD audit attempts to evaluate HRD strategy, structure, system, staff, skills and styles and their appropriateness. HRD Audit give feedback about the HRD department, its structure, competency levels, leadership, processes, influence of the HRD on the other systems etc.

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

Reasons for HRD Audit


For expanding, diversifying and entering into a fast growth phase. For promoting more professionalism and professional management.

Bench-marking for improving HRD practices.


Growth and diversification

Dissatisfaction with any component


Change of leadership

Reasons for HRD Audit


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

To find out the reasons for low productivity & improve HRD strategies.
To become employer of choice.

CONCEPTS OF HRD AUDIT


COMPREHENSIVE

HRD AUDIT
EXAMINES LINKAGES WITH OTHER SYSTEMS

BUSINESS DRIVEN

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

This evaluation helps the organisation have a clear understanding of the lacunae and better align the HR processes with business goals.

Methodology of HRD Audit


Examines long term and short term plans and vision to assess Competency Requirements. Identifies broad Competency requirements for future Business Goals. Examines the existing HRD strategies, systems and practices and assess their appropriateness to have the required competencies.

Methodology of HRD Audit


Examines the adequacies and inadequacies of HRD structure, staff and their competencies, line managers and their attitudes, top management and their support, unions and their role in competence building for future

Suggests mechanisms for improving all these in the business context

Methodology Adopted
Interviews
Individual and group Top Management Line Managers HRD Staff Workmen and others

Questionnaires Observation Analysis of records and secondary data

Methodology
Workshops could be used Task forces and internal teams could also be used External Auditors have a significant role

Benchmarking of questionnaire data may be of use

Methodology Adopted
INTERVIEWSINDIVIDUAL & GROUP Interviews with CEO/Top Management

Interviews with HRD Chief


Interviews with Line Managers Interviews with workers and their representatives.

Methodology Adopted
OBSERVATIONS & QUESTIONNAIRES:
Physical Facilities

Meetings , discussions and Transactions


Celebrations and Events Training and other Facilities

Methodology Adopted
Analysis Of Records And Secondary Data Personnel Manual Manpower Planning Guidelines Recruitment & Promotion Manuals Performance Appraisal &Training Policy Guidelines. Documents like appointment letters, annual reports, product information and company information brochuresand any other documents with implications for HRD strategies

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 terms of strategic and long term business plans. Changes in the styles of top management Role clarity of HRD Department and the role of line managers in HRD

Role of HRD Audit in Business Improvements


Improvements in HRD systems Increased focus on human resources and human competencies Better recruitment policies and more professional staff

More planning and more cost effective training


Strengthening accountabilities through appraisal systems and other mechanisms

Streamlining of other management practices


TQM Interventions

Organisations that Have done HRD Audit


Aditya Birla Group has been doing it for the last 8 years
Rajashree Cement, Vikram Cement, Hindalco, Indo-Gulf Fertilisers, Gwalior Grasim, Harihar Fibres etc.

L&T, Crompton Greaves Gujarat Guardian Gujarat Gas Apollo Tyres Alexandria Carbon Black

Godrej Soaps GVFL BPL

Some Organisations using HRD Audit

Tyco International Gati Cargo Management Services Wokhardt Hospitals

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