NAME- KANIKA BEHL

ROLL NO.1411006989
SUB- HR AUDIT

QUE- 1 MEANING OF HUMAN RESOUCE PLANNING

ANS-1 Manpower or human resource may be thought of as the total knowledge, skills,
creative abilities, talents and aptitudes of an organization's work, force, as well as the values,
attitudes and benefits of an individual involved it is the sum total of inherent abilities, acquired
knowledge and skills represented by the talents and aptitudes of the employed persons; of all
the MS in management (i.e., the management of materials, machines, money, motive power),
the most important is M for men or human resources.
Explain the four main objectives of human resources planning
The People Factor

HR objectives relate to managing your greatest asset, your employees, to keep your business on
track. For example, one of your business goals might be to increase sales. An HR objective
aimed at achieving this goal would be to "optimize workforce potential," and a description would
follow on how best to facilitate this objective, such as, "Through training, ensure salespeople are
performing at their maximum skill level."
Business-Specific

Unique HR objectives exist for the various goals of every type of business. If, for example, your
business has employees working in potentially hazardous conditions such as with heavy
equipment, one goal may be to have an injury-free workplace. An applicable HR objective could
be, "Reduce workplace injuries, resulting in no workers' compensation claims for six months,"
which you could achieve through implementing ongoing safety meetings and awards for
employees who stay injury-free.
Number of Objectives

Your business might have just one goal toward achieving success, requiring only one or two HR
objectives. For example, you might be in the business of providing a dog-walking service. Your
goal might be to achieve 100 percent customer satisfaction. Your HR objective could be,
"Maintain a dog-friendly staff who excels in customer service." Actions needed to achieving
your objective might be: "Carefully screen and hire applicants with an high level of appreciation
for dogs; provide excellent customer service training."
NAME-KANIKA BEHL
ROLL NO. 1411006989
SUB- HR AUDIT

NAME- KANIKA BEHL

ROLL NO.1411006989
SUB- HR AUDIT
A Directive

An easy-to-remember directive to use in creating an HR objective could be: Goal HR Objective

Actions. Following this directive will ensure your HR objectives are consistent and integral to
your company's expectations. The directive will result in a detailed and well-written living
document that can be used to guide your business through the opening of another location or
larger expansion or simply remain in your business's historical Archieve.
QUE-2. Explain the method involve in the HR audit process?
ANS-2. Method used in the HR audit process are :
In order to ascertain what the top management thinks about the future plans and opportunity
available for the company the auditor conduct individual interviews with the member of the top
management.
Interviews help the auditor in a number of ways.

It help in getting detail information which can be re-clarified.

It help revalidate the input and strengthen observation, which makes the entire audit very
dynamic.
It helps in gaining first-hand access to and understanding of feeling and perception of the
people.

QUESTIONARE
Auditors use comprehensive questionnaires to garner information about HRD system, processes,
styles, and competencies. It helps in benchmarking of data.
WORKSHOPS
These workshops give critical appraisal of policies and programs as also Intiate the change
process. Its potential diagnostic tool and can provide lots of information on HR processes and
can help plan further intervention as OD (Organization Development) process.
GROUP DISCUSSIONS
For companies having thousands of employees, it is not always possible to meet each one
individually get feedback. In such circumstances, group, discussions, and workshop act as an
effective mechanism to collect information about the effectiveness of the current system.
OBSERVATION
NAME-KANIKA BEHL
ROLL NO. 1411006989
SUB- HR AUDIT

NAME- KANIKA BEHL

ROLL NO.1411006989
SUB- HR AUDIT

Observation method is often used by the auditor to observe various aspects of the organization. It
helps them to evaluate the work place and work atmosphere. It also helps them to judge the
extend to which a congenial and a supportive human welfare related climate exits in the
organization.
ANALYSIS OF RECORDS AND DOCUMENTS
In the order ascertain the strengths and weaknesses of the human resources system of the
organization, the auditors scrutinize the publish literature of the company like annual report,
performance appraisal forms, training documents, employees records files maintained by the HR
department, In house journals and periodicals.
ANALYSIS OF SECONDARY DATA
Analysis of secondary data can give a lot of insight into the assets and liabilities of the company.
The analysis may relate to age profile of the workforce, stagnation in career progression and
analysis of training etc.
QUE- 3 AREAS OF HR AUDIT.
ANS-3
HR AUDIT
HR audit as a diagnostic tool helps in improving the HR function, system, competencies, culture,
team, policies, and practices, HR audit report provides insight into the sources of the problem
and appropriate strategies.
AREAS IN HR AUDIT

AUDIT OF HR PLANNING
AUDIT OF TRAINING
AUDIT OF HR DEVELOPMENT
AUDIT OF INDUSTRIAL RELATION
AUDIT OF MANAGERIAL COMPLIANCE
AUDIT OF HR CLIMATE
AUDIT OF CORPORATE STARAGIES

NAME-KANIKA BEHL
ROLL NO. 1411006989
SUB- HR AUDIT

NAME- KANIKA BEHL

ROLL NO.1411006989
SUB- HR AUDIT

AUDIT OF HR DEVELOPMENT
HR development is a set of systematic and planned activities designed by an organization to
provide its member with the necessary skills to meet present and future job requirement. Indept audit of this function is required because of the introduction of new technologies, need
for more skilled and educated workers, cultural sensitivity requirement, team involvement,
problem solving and better communication skills.
AUDIT OF INDUSTRIAL RELATIONS
In the words of Lester, industrial relation involve attempts at arriving at solution between the
conflicting objective and values, between, the profit motive and social gain, between
discipline and freedom, between authority and industrial democracy between bargaining and
co-operation and between conflict interest of the individual, the group and the community,
industrial relation is a term used to depict the collective relationship between the
management and the worker.
AUDIT OF MANAGERIAL COMPLIANCE
In this era of competitive climate, companies must operate within the confines of a heavilyregulated employees environment. This includes dealing with the various Acts passed by the
government for protecting the interest of employees. It involve audit of managerial
compliance of personnel policies, procedure and legal provision. It is very useful because it
saves the management from liabilities in case of violations. These types of audits are an
important part of a comprehensive strategy to help a company avoid legal liability.
AUDIT OF CORPORATE STRATEGIES
A Strategy audit involve assessing the actual direction of a business and comparing that
course to the direction required to succeed in a changing environment. A companies actual
direction is the sum of what it does and does not do, how well the organization is internally
aligned to support the strategy, and how well the organization is internally aligned to support
the strategy, and how viable the strategy in when seen in context of the external market,
competitors and financial realities. These two categories, the internal assessment and the
external or environment assessment, make up the major element of a strategy audit.
QUE-4. Definition of HR scorecard

ANS- 4 HR SCORECARD HR scorecard measures the HR function effectiveness

and efficiency in producing employees behavior needed to achieve the companys

NAME-KANIKA BEHL
ROLL NO. 1411006989
SUB- HR AUDIT

NAME- KANIKA BEHL

ROLL NO.1411006989
SUB- HR AUDIT
strategic goal. Its is a tool for measuring the contribution of human resources
management practices to the financial performance of an organization.

Step on the HR scorecard approach

Formulate the business strategy
Define the business strategy
Outline companys value chain activity
Recognise workforce requirement and behavior
Formulate HR policies
Develop HR audit scorecard
Periodically revaluate

The next step is outline the company value chain activities and identify the strategic
required organizational outcomes. The first step clarifies the firm 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
interaction and combination effects that create the customers value in the products and
service of the firm.
After the outcomes have been decided clearly, identify the workforce requirements and
behavior expected as to achieve the desired outcomes. It is HR responsibility to depict
HR deliverable including performance drives as well as HR enablers 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 deliverable that
support the firm-level performance drives on the strategy map.4
After ensuring that all above steps are correctly conducted you have to develop a detail
scorecard. To accurately measure the HR- firm performance relationship, it is imperative
that the firm develops valid measure of HR deliverable. This task has two dimension.
Firstly HR have to be confident that they have chosen the correct HR deliverable. This
requires that HR has a clear understanding of the course and effect links in the value
chain for effective strategy implementation. Secondly HR must choose the correct
measure for those deliverable.
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 events. HR
professionals must regularly review the measure and their impacts.

NAME-KANIKA BEHL
ROLL NO. 1411006989
SUB- HR AUDIT

NAME- KANIKA BEHL

ROLL NO.1411006989
SUB- HR AUDIT

5. EXPLAINING THE EFFECTIVENESS OG HUMAN RESOUCES DEVELOPMENT

AUDIT AS AN INTERVATION.

ANS-5

HUMAN RESOURCE DEVELOPMENT AUDIT AS AN INTERVATION

You will be pleased to know that India is the first country to formally establish a totally
dedicated Human resources development department separated from the personnel
department. It was established in the year 1974 when the term HRD itself was not very
popular in the USA. Two consultant from the Indian institute of management. Ahmdabad
after reviewing the effectiveness of the performance appraisal system and training in
LARSON & TOURBO recommended and integrated HR system to be establish and the
department dealing with development issues be separated out from the personnel department
and be called the HRD department. Thus the first HRD department was established. A series
of HRD department were established by the State Bank of India and its associate in India.
In the objective of this department is to facilitate the environment of learning and change in
the organization so as to facilitate the environment of learning and change in the organization
so as to achieve the organization so as to achieve the organization goal. This department
should comprise learning specialist who can facilitate the change process.
In their model. OD was conceived as one of the main task of the HRD department. Thus a
attempt was made to institution OD through HRD department. As the department picked up
momentum, a lot of OD work was being done through the HRD department. In fact most
change intervention have been and are being made by the HRD department (as undertake a
number of differentiated from the personnel department). HRD mangers in India do
undertake a number of interventions undertaken by the HRD department includes.

Cultural change through new performance through new performance management

system.
Total Quality management (TQM) based intervention (in most cases these are undertaken
also by a separate group of professionals ).
Survey feedback.
Role clarity and role negotiation exercise
Training
Career planning and succession exercise

NAME-KANIKA BEHL
ROLL NO. 1411006989
SUB- HR AUDIT

NAME- KANIKA BEHL

ROLL NO.1411006989
SUB- HR AUDIT

Assessment centers and promotion policies

Vision and value clarification exercise
Team building intervention

The Academy of human resources development has come up with a concept of individual and
organization Assessment center( IOAC) which is becoming popular as an intervention by the
HRD department. In this concept the HRD department establish an assessment center with the
purposes of assessing and developing the competencies of individual as individual, individual in
relation to their current and future roles, dynamic relationship, teams, inter-team collaboration
and work, and organization climate and synergy.
6 COCEPT AND STEP INVOLVED FRANHOLTZ MODEL.
FRANHOLTZ MODEL
The rewards evaluation model was suggested by FRANHOLTZ . It identifies the
major variable that determine an individual value to an organization, or in other
word, his expected reliable value.
The rewards evaluation model suggested five- step approach for approach for
assessing the value of an individual to the organization. This step are discussed as
under
STEP-1 Forecasting the period the employee a five-step approach for assessing the
value of an individual to the organization.
STEP-2 Identifying the period the employee will remain in the organization, his
expected service life
STEP-3 Estimating the value derived by the organization when a person occupied a
particular position for a specified period.
STEP-4 Estimation of the probability of occupying each possible mutually exclusive
state at specified future times, and
STEP-5 Discounting the value at a predetermined rate to get the present value of
human resources.
PEKIN ORGAN MODEL
PEKIN, as he prefers to be called, teaches Managerial Accounting with flawless
engagement, focusing on class discussion and endless whiteboard brainstorms as
the primary source of learning.

NAME-KANIKA BEHL
ROLL NO. 1411006989
SUB- HR AUDIT

NAME- KANIKA BEHL

ROLL NO.1411006989
SUB- HR AUDIT
In this model, the value of human resources is determined by taking into
consideration the certainly with which the net benefit in future will accrue to the
enterprise. The method the following steps;
(a) Each employees net benefit (as determined under the previous approach)
which is a function of the employee expected benefits and total costs.
(b) A certainly factor which is comprises of the employees probability of continued
employment amd probability of survival.
(c) The certainly equivalent benefits will be calculated by multiplying the certainly
factor with the net benefits from all employees. This will be the value of human
resources of the enterprises.
Needless to say, organ model is that it can be applied only in those organization
where costs and benefits of employees can be traced with fair objectively.

NAME-KANIKA BEHL
ROLL NO- 1411006989
SUB HR AUDIT

NAME-KANIKA BEHL
ROLL NO. 1411006989
SUB- HR AUDIT

NAME- KANIKA BEHL

ROLL NO.1411006989
SUB- HR AUDIT

NAME-KANIKA BEHL
ROLL NO. 1411006989
SUB- HR AUDIT