Scribd Upload a Document

Search Documents

Explore Sign Up | Log In

Select View Mode

/ 39

Download this Document for Free

Theobj ect ives of the audit report are: To highlight areas that needs improvement. To be acted upon. Thepurpose of preparing the audit report is to help the top management and the HRD staff to recognize and retain the companys strengths. Following points are to be remembered for writing an audit report:

Simple language should be used. It should be short and precise. Bullet form highlighting the strengths and weaknesses should be used.

An HR audit report should include contents as follows: (Model Outline)

Cha pter s Contents Pg. No. 1

Introduction

2
Current Status of The HRD Function: Some Facts

3
General Observations

4
Career Systems

5
Work Planning

6
Development System

7
Self-Renewal System

8
HRD Culture

9
HRD Function

10
Table And Appendices
Chapter 1 INTRODUCTION: This will include a brief description about: 29

Company locations, products and services, manpower, turnover, and main concerns and top management. Date and reason for undertaking the audit. Methodology adopted for the study: details of samples, and audit methods used:

Questionnaires administered, Number of individual interviews, Level-wise records and reports examined, Group interviews, etc.

HRD SYSTEMS (various sub-systems of HR audit; etc.) Chapter 2 - CURRENT STATUS OF THE HRD FUNCTION: This will include details about HRD functions:

Structure and staffing of HRD function, HRD departments thrust areas and objectives, Highlights of existing HRD systems and sub-systems:

Performance appraisal, Potential appraisal, Career planning, Mentoring, Training,

Job rotation, Quality circles, etc.

Strengths and weaknesses of the HRD function. HRD needs: an overview broad highlights of the areas that need attention. Chapter 3 - GENERAL OBSERVATIONS: General observations will include: Salient features of the company observed by the auditors vis--vis present competencies and future potential, encompassing following dimensions of HRD:

Competence Building, Culture Building, Commitment Building.

Present and future business concerns highlights Competencies and competency requirements for future, Commitment and motivational patterns, Work culture and organizational culture,

30

Culture-building mechanisms Chapter 4 - CAREER SYSTEMS: This chapter will include Findings of the audit on the following and Importance of the following including the Strengths, Weaknesses and Recommendations of each:

Manpower planning and utilization Recruitment Potential appraisal and fast track Career planning and development Succession planning

Chapter 5 - WORK PLANNING: This chapter will include the Strengths, Weaknesses and Recommendations of each related to work planning system:

Introduction (Concept of work planning and the component of systems) Contextual analysis Role clarity Performance appraisal system

Chapter 6 - DEVELOPMENT SYSTEM: This chapter will include the Strengths, Weaknesses and Recommendations of each related to development system:

Introduction and components Induction training Training and learning systems Performance guidance and development Worker development

Chapter 7 - SELF-REENEWAL SYSTEM: This chapter will include the Strengths, 31

Weaknesses and Recommendations of each related to self renewal system:

Introduction Role efficacy Organisation development Action oriented research

Chapter 8 - HRD CULTURE: This chapter will include the Strengths, Weaknesses and Recommendations of each related to HRD culture:

Introduction HRD culture Values Quality orientation Rewards and recognition Information Communication Empowerment through participation, decentralization, shop floor committees

Chapter 9 - HRD FUNCTION: This chapter will include the Strengths, Weaknesses and Recommendations of each related to HRD function:

General observations Industrial relations and HR Personnel policies and HRD HRD function structure HRD department competencies

HRD strategies HRD activities and priorities

32

Introduction:

HR Audit, Inc. has been providing human resources, management practices and organizational development services since 1998. While located near Milwaukee, Wisconsin, HR Audit, Inc. provides services to companies nationally, from Radisys Corp. near Portland, OR to Monster.com in Maynard, MA. Co-founder and managing director Jim Bastian has 18 years of senior management experience including serving as senior vice president and officer of a Fortune 50 company. He also served as a member of a post-acquisition assimilation team during an aggressive growth period involving over a dozen transactions. Holding an undergraduate degree in psychology/education and an MBA, Jim serves as company's senior auditor. He is a frequent speaker on managing change, conflict, and diversity and performance accountability. The audit staff has a minimum of 12 years of senior management experience, has conducted dozens of audits and has an advanced degree in a related field.
Services:

As the name implies, they specialize in providing comprehensive Human Resources and Management Practices Audits. They also help clients find solutions to Organizational Development Challenges like reducing administrative and employment related costs, post merger/acquisition assimilation, talent retention and succession planning, workforce diversity, regulatory compliance, conflict resolution and change management and we design, develop and deliver customized, interactive Management/Supervisor Training programs. Their confidential audit/assessment process includes interviews with senior managers, focus groups, attitudinal surveys, review of policies and procedures, internal records, employment data, resources, staffing and processes.
Audit Areas:

Strategic plan implementation, Training, Affirmative action, Regulatory compliance, Turnover data/retention, Compensation Policies, Performance appraisal process, Job descriptions , Employee handbook, The employment process, Change readiness, Communications and Administrative staffing levels. 33

Hr Audit Project
Download this Document for FreePrintMobileCollectionsReport Document

Info and Rating

Follow dan_cool786

Share & Embed

Related Documents
PreviousNext 1.

p.

p.

p.

2.

p.

p.

p.

3.

p.

p.

p.

4.

p.

p.

p.

5.

p.

p.

p.

6.

p.

p.

p.

7.

p.

p.

More from this user

PreviousNext 1.

38 p.

38 p.

39 p.

2.

39 p.

7 p.

23 p.

Recent Readcasters

Add a Comment

Upload a Document

Search Documents

Follow Us! scribd.com/scribd twitter.com/scribd facebook.com/scribd About Press Blog Partners Scribd 101 Web Stuff Scribd Store Support FAQ Developers / API Jobs Terms Copyright Privacy

Copyright 2011 Scribd Inc. Language: English

INTRODUCTION
HRM includes different functions like HRP, job analysis and design, recruitment, selection, induction, performance appraisal, safety and health, welfare, industrial relations and many more. These functions are performed in furtherance of certain social, functional and personal objectives. At this stage several questions crop up, for example:

Does the organization do the HRP regularly in various categories? Does job analysis exist for all positions in the organization? Are all potential sources of recruitment identified and evaluated? Is there a performance evaluation system that helps asses past and potential

performance?

Is remuneration programme designed to motivate employees? Does the HRM practice respond to individual employee needs and aspirations? Does the organisation have high quality of work life?

It is necessary to take a look at these questions. HR audit is highly useful for this purpose. The Human Resources (HR) Audit is a process of examining policies, procedures, documentation, systems, and practices with respect to an organizations HR functions. The purpose of the audit is to reveal the strengths and weaknesses in the nonprofits human resources system, and any issues needing resolution. The audit works best when the focus is on analyzing and improving the HR function in the organization. The audit itself is a diagnostic tool, not a prescriptive instrument. It will help you identify what you are missing or need to improve, but it cant tell you what you need to do to address these issues. It is most useful when an organization is ready to act on the findings, and to evolve its HR function to a level where its full potential to support the organizations mission and objectives can be realized.

Definition: HR Audit means the systematic verification of job analysis and design, recruitment and selection, orientation and placement, training and development, performance appraisal and job evaluation, employee and executive remuneration, motivation and morale, participative management, communication, welfare and social security, safety and health, industrial relations, trade unionism, and disputes and their resolution. HR audit is very much useful to achieve the organizational goal and also is a vital tool which helps to assess the effectiveness of HR functions of an organization. APPROACHES TO HR AUDIT There are five approaches for the purpose of evaluation of HR in any organization: Comparative approach Outside authority Statistical Compliance approach and Management By Objectives(MBO) 1. Comparative approach: In this, the auditors identify Competitor Company as the model. The results of their organization are compared with that of the Model Company/ industry. 2. Outside authority approach: In this, the auditors use standards set by an outside consultant as benchmark for comparison of own results. 3. Statistical approach: In this, Statistical measures are performance is developed considering the companys existing information. 4. Compliance approach: In this, auditors review past actions to calculate whether those activities comply with legal requirements and industry policies and procedures. 5. Management by objectives (MBO) approach: This approach creates specific goals, against which performance can be measured, to arrive at final decision about industrys actual performance with the set objectives. Scope of audit Generally, no one can measure the attitude of human being. Hr audit must cover the activities of the department and extend beyond because employees problems are not confined to the HR department alone. So it is very much broad in nature. It should evaluate the personnel function, the use of its procedures by the managers and the impact of these activities on the employees. It covers the following HR areas: 1.Audit of all the HR function. 2.Audit of managerial compliance of personnel policies, procedures and legal provisions. 3.Audit of corporate strategy regarding HR planning, staffing, IRs, remuneration and other HR activities. 4.Audit of the HR climate on employee motivation, morale and job satisfaction.

1.Audit of HR function: This involves audit of all HR activities. For each activity, auditor must (i) determine the objective of each activity, (ii) identify who is responsible for its performance, (iii) review the performance, (iv) develop an action plan to correct deviation, if any (v) follow up the action plan. The following criteria would help measure effectiveness of HR function. Each statement has a four point rating scale varying from very true to not true. a. In your company, all issues are closely related to every other business process. b. The HR department is represented in strategy building sessions of top management. c. The performance of HR department and the organisation are linked. d. The HR function is given more importance than other functions e. The HR managers have sufficient powers to suggest strategic initiative to the top management. Employee turnover: It refers to the process of employees leaving an organization. Higher turnover involves high cost of recruitment, selection, training, etc. High turnover may also lead to disruption of production, problems in quality control, etc. Resignation, retirement, death and transfers are unavoidable labour turnover. The specific actions that will reduce employee turnover are better hiring practices, orientation and training, working condition, better remuneration and growth opportunities. b.Absenteeism: It refers to the failure on the part of the employees to report to work. In other words, unauthorized absence continues absenteeism. Absenteeism costs money to the organisation, besides reflecting employee dissatisfaction. Unavoidable absenteeism happens when employee or his family member is sick whereas avoidable occurs because of night shifts, indebtedness, lack of job security, unfriendly supervision, etc. Managers should take steps to remove the causes. They should make the work environment such that employees feel that it makes sense to work in the firm rather than sitting at home and wasting time. c.Accidents: Organization maintains records related to the accidents. Organisation must have a safety plan, implement it and evaluate its effectiveness. d.Attitude surveys: Attitude surveys are the most powerful indicators of the organizational climate. It determines an employees feelings towards the organisation, peer group, colleagues, supervisors, etc. The surveys may be conducted by face-to-face interviews but are usually conducted through questionnaires. 4.Audit of corporate strategy: Hr professionals do not set corporate strategy but they strongly determine its success. Corporate strategy helps the organization gain competitive advantage. By SWOT analysis, top management devises the ways of gaining and advantage. Whether the company stresses superior marketing channels, service, innovation, or some other approach, HRM is affected.

Employee turnover: It refers to the process of employees leaving an organization. Higher turnover involves high cost of recruitment, selection, training, etc. High turnover may also lead to disruption of production, problems in quality control, etc. Resignation, retirement, death and transfers are unavoidable labour turnover. The specific actions that

will reduce employee turnover are better hiring practices, orientation and training, working condition, better remuneration and growth opportunities. b.Absenteeism: It refers to the failure on the part of the employees to report to work. In other words, unauthorized absence continues absenteeism. Absenteeism costs money to the organisation, besides reflecting employee dissatisfaction. Unavoidable absenteeism happens when employee or his family member is sick whereas avoidable occurs because of night shifts, indebtedness, lack of job security, unfriendly supervision, etc. Managers should take steps to remove the causes. They should make the work environment such that employees feel that it makes sense to work in the firm rather than sitting at home and wasting time. c.Accidents: Organization maintains records related to the accidents. Organisation must have a safety plan, implement it and evaluate its effectiveness. d.Attitude surveys: Attitude surveys are the most powerful indicators of the organizational climate. It determines an employees feelings towards the organisation, peer group, colleagues, supervisors, etc. The surveys may be conducted by face-to-face interviews but are usually conducted through questionnaires. 4.Audit of corporate strategy: Hr professionals do not set corporate strategy but they strongly determine its success. Corporate strategy helps the organization gain competitive advantage. By SWOT analysis, top management devises the ways of gaining and advantage. Whether the company stresses superior marketing channels, service, innovation, or some other approach, HRM is affected.