HRD Audit

Dr.V.Mohanasundaram
manlymohan@gmail.com
Audit
The general meaning of an audit in HR
is an evaluation of a person,
organization, system, process,
enterprise, proect or product.
The term most commonly refers to
audits in accounting, !ut similar
concepts also e"ist in proect
management, #uality management,
$ater management etc%
HRD Audit
An HRD Audit is li&e a $ee&ly'
montly' annualy health chec&(up, it
plays a vital role in instilling a sense
of con)dence in the Management and
the HR functions of an organisation.
HRD Audit
HRD Audit is a comprehensive evaluation
of the e"isting HRD

*tructure,

*trategies,

*ystems,

*tyles,

*&ills ' +ompetencies

+ulture
and their appropriateness to achieve the
short(term and long(term goals of the
organisation.
HRD Audit VS HR Audit
HRD Audit is evaluation
of only fe$ activities

*tructure,

*trategies,

*ystems,

*tyles,

*&ills ' +ompetencies

+ulture
HR Audit is a
comprehensive evaluation
of the entire gamut of HR
activities

HR +ost

HRD activities

Health, ,nv. - *afety

.egal +ompliance

/uality

+ompensation -
0ene)ts
Objectives of HRD
Audit

To determine the e1ectiveness of

management programmes

Develop a statement of )ndings $ith

recommendations for correcting deviations

To study the current manpo$er inventory

Methodology of HRD Audit

2ntervie$s

/uestionnaires

3!servation

Analysis of records and secondary data

4or&shops could !e used

Tas& forces and internal teams could also

!e used

,"ternal Auditors have a signi)cant role

0enchmar&ing of #uestionnaire data may

!e of use
*teps in HR Audit
Reasons for HRD Audit

5or e"panding, diversifying and entering

into a fast gro$th phase.

5or promoting more professionalism and

professional management.

0ench(mar&ing for improving HRD

practices.

6ro$th and diversi)cation

Dissatisfaction $ith any component

+hange of leadership
Role of HRD Audit

HRD audit is cost e1ective

2t could get the top management to thin& in terms

of strategic and long term !usiness plans.

+hanges in the styles of top management

Role clarity of HRD Department and the role of line

managers in HRD 2mprovements in HRD systems

2ncreased focus on human resources and human

competencies

2mprovements in HRD systems

0etter recruitment policies and more professional

sta1

More planning and more cost e1ective training

T/M 2nterventions
Scope of HRD Audit
HRD Audit emcompasses all the areas li&e
as%

Manpo$er planning

6oals,policies and o!ective

7romotion and transfer polices

7erformance appraisal systems

Training and development functions

Importance of the HRD
Audit

Technological changes

To &eep pace $ith the environment changes

+hanging role of trade union

,mergence of ne$ $or&ing class

Role of HRD Audit in Business Improvements

To gets the current facts.

2t could get the top management to thin&

in terms of strategic and long term
!usiness plans.

+hanges 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

2mprovements in HRD systems

2ncreased focus on human resources and

human competencies

0etter recruitment policies and more

professional sta1

More planning and more cost e1ective

training
Advantages of HRD
Audit

To ensure e1ective utilization of HR

To inculcate sense of con)dence in

management

To develop and sustain organizational

reputation in the society

To perform a 8due diligence 8 revie$ for

various sta&eholders
hallenges in HRD
Audit

0uild and improve #uality consciousness

*trive to recruit and retain competent , creative

employees

Align !iz processes $ith technology infrastructure

9urture creative and supportive $or& culture

Train and develop the employee through :;<

degree feed!ac&s, appraisals.

7romote learning orientation(informal net$or&s

Organisations that Have
done
HRD Audit

Aditya 0irla 6roup => years?

.-T

6uarat 6as

6uarat 6uardian

Apollo Tyres

Ale"andria +ar!on 0lac&

6odre *oaps

6V5.

07.

Tyco 2nternational

4o&hardt Hospitals 0angalore

0harat ,lectronics

9T7+