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HRD Audit

Good HR Practices
Competencies Commitment Culture

HRD Definition
A process by which an employees of an organizations

are helped, in a continuous , planned way, to acquire and sharpen capabilities required to perform various functions associated with it

What is HRD?
Competence Building Commitment /Motivation Building Culture Building

What is involved in Good HRD?

Top Management Philosophy and Understanding Competent HR Staff and Department Line Manager Attitudes Union and Employee Support Use of appropriate Systems Periodic Renewal Exercises Business relevance of HRD systems and Practices

What is HRD Audit?

It is a Comprehensive Evaluation of Human Resource


Strategies, Systems and Practices, Structures and Competencies Styles and Culture

And their appropriateness to achieve the short and

long term business goals of the organization

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

Individual and group Top Management Line Managers HRD Staff Workmen and others

Questionnaires Observation Analysis of records and secondary data

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

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

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


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

Some Organisations using HRD Audit

Godrej Soaps GVFL BPL Tyco International Gati Cargo Management Services Wokhardt Hospitals For detailed client list visit: