MU0013 HR Audit

Q1. Describe the components of human resource development audit. Answer: components of Human Resource Development Audit for understanding the HRD audit as conducted in different organizations should be well-acquainted with the different components of HRD audit. Below figure to identify the components of HRD audit.

Components of HRD Audit

The HRD audit is divided into three components: Organization and Administration of Human Resource: The organization and administration of human resource consists of the way in which the organizations HR system is organized, the standard operating procedures (SOP) and internal controls followed in the business unit, the ways of administrating retention rights, including notices, matrix, use of separation incentives, and out-placement practices. Information Management through Documentation: One must be aware that information is managed in the business unit through documentation of various records of the employees and factors related to them. So here are some important points regarding information management. The person with whom the personnel files are currently held. The sort of documents to be held in personnel files. The methods to document the following in an organization: Hiring Application, interviewing, and reference checks, Compensation and benefits, Leave and overtime information, Transitions, Training, Discipline, Work history, Work assignments, Significant, accomplishments, Emergency contact information performance evaluation and performance management, termination. The duration of maintaining the files. The place at which they are stored after employees leave the organization. It should be seen whether managers and employees are trained to maintain personnel files. The policies and procedures for accessing files. The person responsible for filing the requests for information when they are made to your organization. The content of employee, payroll, medical, and position files.

Computerized HRIS (Human Resource Information System): In this kind of HR information management, one needs to check the system requirements, features and capabilities. Need to consider the following: Whether HRIS system is being used in the organization or not. The type of HRIS system used. Determine whether the system is based on the same platform as rest of the organization. The formal training programme for employees and managers to access the HR information through the system. Whether the HRIS system is comprehensive or not. Whether the system is capturing discreet pieces of information about employees and their jobs such as: Personnel data Recruitment/ selection data Training and development data Compensation data Performance appraisal/promo ability data Benefit plan data Health/ safety/ accident data The ways of translating the information into usable forms. The data security issues. The individuals capable of updating and changing information to enhance accuracy. The hardware used to operate the system. Compatibility of the local area network (LAN) with the system.

Q2. Explain the need for HR audit? Answer: The human resources audit measures the level to which the management adheres to laws and regulations that govern employee-employer relations. It also measures the motivation levels of the employees and their satisfaction with their job and employer. As a manager, use the results of the audit to plan, attract and select staff. This audit can also provide the groundwork for conducting the orientation and training of new employees to ensure they are comfortable with their respective job positions purpose. The human resources audit also ensures that workers are being utilized effectively. It assesses whether organizational policies and procedures are being complied with. It improves the goodwill of the human resource department in the eyes of the workers. It also evaluates the performance of human resource function in terms of its contribution to the overall achievement of the company's objectives. As a manager, use the comparative approach of human resources audit if your company benchmarks itself against its competitors. You can outsource this function to an external human resources consultant. You can also carry out in-house surveys and research on issues related to human resources. It basically involves carrying out surveys within the company and setting up a compliance model that sets out the company's human resource policy. As a manager, use the comparative approach of human resources audit if your company benchmarks itself against its competitors. You can outsource this function to an external human resources consultant. You can also carry out in-house surveys and research on issues related to human resources. It basically involves carrying out surveys within the company and setting up a compliance model that sets out the company's human resource policy. Benefits of Audit A company improves its image by fostering greater responsibility and professionalism amongst its employees. classifying the duties of each employee allows them to focus on their assigned roles, thereby increasing productivity. It also helps to identify problems and challenges facing employees. This enables managers to address the pressing issues, thus boosting the staff's morale. Legal provisions are also complied with, thus minimizing the risk of expensive litigations and penalties.

Q3. Describe employee orientation programs? Answer: Employee orientation is part of a long-term investment in a new employee. It is an initial process that provides easy access to basic information, programs and services, gives clarification and allows new employees to take an active role in their organization.

Introduce new employees to their new environment Make new employees feel welcome and comfortable Retain a pool of new, capable employees

Benefits: Establish clear standards that help reduce disputes and limit liability Promote consistent management Inform new employees of the companys policies Demonstrate a commitment to equal treatment of personnel Provide protection from claims of discrimination and sexual harassment In some organizations an employee handbook is available to all employees. The content of the handbook covers the key topics covered in an orientation session for new employees. An orientation program helps the employee understand their assigned duties, terms and conditions of employment as well as the organizational culture. It provides the following information: Orientation to business: history mission statement goals and objectives organizational structure, e.g. own job description and relationship of position to other positions future plans Company policies and procedures dress code reporting procedures smoking restrictions expense claims operating telephone system who to call for repairs Explanation of benefit package group insurance, sick leave, holidays Tour facility and work areas introduce employees identify amenities, e.g. washrooms, shower explain emergency procedures identify safety equipment

provide manuals for operating equipment

Q4. Explain the importance of audit of training? Answer: Training is a sub-system of an organization. It ensures that randomness is reduced and learning or behavioral change takes place in a structured format. The main objective of training and development division is to make sure the availability of a skilled and willing workforce to an organization. It improves the productivity of employees and thereby increases the performance of the organization. Audit of training suggests future improvements based on measurement of past activities. Below are the training indicators: The procedures followed and the frequency with which personnel training needs are analyzed. The criteria followed to list the content of the training programmers. The evaluation criteria of the efficacy of the training programmes. The procedure by which training needs are analyzed. The percentage of the HR budget dedicated to training. The situation at which training is being conducted such as employee Orientation, skills and technical training, coaching and counseling. The training conducted at the orientation programme of the employees. The average number of hours of training per employee. The percentage of employees that participate in training programs by Workplace categories.

Q5. (a) What is HR scorecard? (b) What are the steps in HR scorecard approach? Answer: HR scorecard helps to verify the level to which the HR policies of the company are aligned with the strategic goals of the company. HR scorecard measures the HR function's effectiveness and efficiency in producing employee behaviors needed to achieve the company's strategic goals. In order to achieve that we need to know what the company's strategy is, understand the causal links between HR activities, employee behaviors, organizational outcomes, and the organization's performance, have metrics to measure all the activities and results involved. This mode of scorecard is based on the assumption that competent and committed employees are needed to provide quality products and services at competitive rates emphasizing on the ways to enhance customer satisfaction. Below are the steps in HR scorecard approach. The first step is to formulate business strategies, i.e., define the business strategy of the organization so as to be very clear about how to utilize human resources towards the achievement of the organizational goal. HR managers should focus on implementation of strategy. By doing so, they can facilitate discussions on how to communicate the firms goals throughout the organization. The important thing for HR managers is to state the goals in such a way that the employees understand what exactly their role in the organization is, and thus the organization knows how to measure success in achieving these goals. Once a firm clarifies its strategy, HR professionals need to build a clear case for the strategic role of HR. They must be able to explain in concrete terms how and why HR can support the strategy. n activities and identify the strategically required organizational outcomes. The first step clarifies the firms strategy. This paves the way for the implementation process. But, before this is done, the firm must get a clear understanding of its value chain. The value chain is the complex cumulative set of interactions and combinatorial effects that create the customer value in the products and services of the firm. It is important that the firms performance management system accounts for each of the links and dependencies in the value chain. The balanced scorecard framework refers to this process and creation of a strategy map. These are basically diagrams that show the links in the value chain. It shows how different components in different layers interact. It is what provides managers and employees the big picture of the effect of their tasks on the other elements in the firm and how their effect on the overall strategy. requirements and behaviors expected so as to achieve the desired outcomes. It is HRs responsibility to depict HR deliverables including performance drivers as well as HR enablers in the strategy map of the firm. Performance drivers such as employee competence, motivation and availability are very fundamental and so it might be difficult to locate these precisely on the strategy map. It is important to identify those HR. Deliverables that support the firmlevel performance drivers on the strategy map. is to formulate HR policies and practices which are strategically relevant such as new training and grievance systems. The previous three steps encourage the top-down thinking approach, whereby strategy decides what HR deliverables the firm needs to focus on. It is also important to consider how the HR system is made up of the rewards, competencies; work organization, etc., that need to be structured to provide the deliverables that are identified in the strategy map. This step enhances the value creation aspect of the firm by aligning the HR system with the firms larger strategy implementation system. conducted; you have to develop a detailed scorecard. To accurately measure the HR-firm performance relationship, it is imperative that the firm develops valid measures of HR deliverables. This task has two dimensions. Firstly, HR has to be confident that they have chosen the correct HR deliverables. This requires that HR has a clear understanding of the cause and effect links in the value chain for effective strategy implementation. Secondly, HR must choose the correct measures for those deliverables. During this process of developing the HR scorecard, the firm may have to go through several stages of increasing sophistication. The first stage is normally the traditional category of measures. These mainly include Operational measures such as cost per hire, activity counts, etc. In the second stage,

firms may declare several people measures such as Employee satisfaction as strategic measures and these could be included directly into the reward systems. In this stage, there tends to be a balance between financial and non-financial measures but there is less of an agreement on how exactly they combine together to Implement the strategy. Then design the HR scorecard measurement system. The previous step completed the HR scorecard development process. This step uses this powerful new management tool in the right way. This tool not only helps the firm measure HRs impact on its performance, but also helps HR professionals have new insights into what steps must be taken to maintain HR as a strategic asset. It helps the HR professionals dig deeper into the causes of success and failure and helps them promote the former and avoid the latter. In order to ensure productivity, periodically re-evaluate the measurement system. Implementing the strategy using the HR scorecard requires change and flexibility as well as constant monitoring and re-thinking. The process is not a one-time event. HR professionals must regularly review the measures and their impacts.

Q6. What are the different aspects of workplace policies and practices that need to be considered by employers? Answer: Many smaller companies do not like writing down certain aspects of its ways of conducting business. For such companies, it is a mere formality and they do not appreciate people-oriented culture. However, this should be avoided as it is blatantly illegal since laws require that companies should state very clearly the policies and guidelines laid down for the employees safeguarding employee information. Employees personal information should be safeguarded. Separate files should be maintained for personal information as contrasted with employment related information. Main objective behind it to ensure that while deciding the employees career with the company, his personal information should not be considered. The employment decision needs to be made on the basis of work/ performance related information, not the personal information. For example, while deciding whether to promote an employee or not, instead of his religion, medical history, ethnicity, demography or employees performance at work, job experience and capabilities should be considered. Relevant documents in the work file include information on the employees education, related work experience, and performance evaluations in various positions within the company. An audit can clarify what information must be segregated and the laws that govern employees access to and copying of their files. Other employee information that must be safeguarded includes any materials that contain medical information.