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Hrd audit

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Chintan Modi
Chintan Modi

The document discusses the concepts of HRD audit and its importance for organizations. It defines HRD audit as a comprehensive evaluation of an organization's HRD structure, strategies, systems, styles, skills/competencies, and culture and their alignment with organizational goals. The key aspects of HRD audits include evaluating HRD systems maturity, employee competencies, organizational culture, and linkages between HRD and business goals. HRD audits help organizations identify areas for improvement, ensure the effective development of human resources, and promote strategic alignment of HRD with the business.

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HRD Audit
What is HRD? Human Resource Development (HRD) is the framework for helping employees develop their personal and organizational skills, knowledge, and abilities. HRD includes such opportunities as employee training, employee career development, performance management and development, coaching, mentoring, succession planning, key employee identification, tuition assistance, and organization development.
"The unexamined work life is not worth living." “The things that get measured gets managed”
What is Audit? The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. The term most commonly refers to audits in accounting, but similar concepts also exist in project management, quality management, water management
HRD Audit HRD Audit is a comprehensive evaluation of the existing HRD  Structure,  Strategies,  Systems,  Styles,  Skills / Competencies  Culture and their appropriateness to achieve the short- term and long-term goals of the organisation.
What ? HRD Audit is like an annual health check-up, it plays a vital role in instilling a sense of confidence in the Management and the HR functions of an organization
HR Audit v/s HRD Audit HR Audit is a comprehensive HRD Audit is evaluation of evaluation of the entire gamut only few activities of HR activities • Structure, • HR Cost • Strategies, • HRD activities • Systems, • Health, Env. & Safety • Styles, • Legal Compliance • Skills / Competencies • Quality • Culture • Compensation & Benefits
Methodology of HRD Audit (How?)  Interviews  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 (Why?) • 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 • HRD audit is cost effective • 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 Improvements in HRD systems • Increased focus on human resources and human competencies • Improvements in HRD systems • Better recruitment policies and more professional staff • More planning and more cost effective training • TQM Interventions
HRD SCORE CARD  T.V. Rao (1999) has introduced the concept of HRD score card.  The HRD Scorecard is a measure of the HRD maturity level of an organization. The scorecard is based on the following assumptions and takes into consideration the research based understanding gained in the last few decades regarding HRD. The maturity level of HRD in an organization is indicated by the following factors: 1. HRD Systems Maturity 2. HRD Competencies of the Employees including the HR Department 3. HRD Culture of the Organization 4. HRD Influence on the Business Goals or Business Linkages of HRD
Name of the Organisation ABC HRD HRD Business Overall HRD HRD Culture Systems Competence Linkage Maturity Grade Maturity Score Grade rating B* C B* B B*C B*B A* Highest Score and Highest Maturity Level A Very High Maturity level B* High Maturity Level B Moderately High Maturity Level C* Moderate Maturity Level C Moderately low Maturity level D* Low Maturity Level D Very low Maturity level F Not at all present U Ungraded
Assumption “Competent and motivated employees are needed to provide quality products and services at competitive rates and ways that enhance customer satisfaction”
 HRD Systems Maturity Score Competencies and commitment can be developed through appropriate HRD mechanisms (tools and systems). In a HRD Mature organization there will be well-developed HRD systems and HRD systems Maturity can be measured through HRD audit.  HRD Competence Score HRD Competencies of the HRD department and the line managers play a significant role in implementing the systems and processes in ways that could ensure employee satisfaction, competence building and customer satisfaction linkages. The competencies of the staff and the other employees can be measured in terms of an index.
 The HRD Culture values and processes created by the HRD tools, staff and their styles also play a crucial role in building sustainable competencies in the organization. These need to be measured and monitored. It is possible in some corporations (for example small corporations) to have very little of HR systems and yet have a high level of HR competencies and HR culture. In the traditional family owned organizations in those years where there were no systems approaches there used to be good degree of HRD culture, which has resulted in effective functioning and business.  Business Linkage Score Business linkages of HRD are very crucial component of HRD effectiveness.HRD systems competencies and the culture must be a lined with the business oals of the cororation
Challenges in HRD Audit  Build and improve quality consciousness  Strive to recruit and retain competent , creative employees  Align biz processes with technology infrastructure  Nurture creative and supportive work culture  Train and develop the employee through 360 degree feedbacks, appraisals.  Promote learning orientation-informal networks
Organisations that Have done HRD Audit • Aditya Birla Group (8 years) • L&T • Gujarat Gas • Gujarat Guardian • Apollo Tyres • Alexandria Carbon Black • Godrej Soaps • GVFL • BPL • Tyco International • Wokhardt Hospitals Bangalore • Bharat Electronics • NTPC
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Hrd audit

  • 2. What is HRD? Human Resource Development (HRD) is the framework for helping employees develop their personal and organizational skills, knowledge, and abilities. HRD includes such opportunities as employee training, employee career development, performance management and development, coaching, mentoring, succession planning, key employee identification, tuition assistance, and organization development.
  • 3. "The unexamined work life is not worth living." “The things that get measured gets managed”
  • 4. What is Audit? The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. The term most commonly refers to audits in accounting, but similar concepts also exist in project management, quality management, water management
  • 5. HRD Audit HRD Audit is a comprehensive evaluation of the existing HRD  Structure,  Strategies,  Systems,  Styles,  Skills / Competencies  Culture and their appropriateness to achieve the short- term and long-term goals of the organisation.
  • 6. What ? HRD Audit is like an annual health check-up, it plays a vital role in instilling a sense of confidence in the Management and the HR functions of an organization
  • 7. HR Audit v/s HRD Audit HR Audit is a comprehensive HRD Audit is evaluation of evaluation of the entire gamut only few activities of HR activities • Structure, • HR Cost • Strategies, • HRD activities • Systems, • Health, Env. & Safety • Styles, • Legal Compliance • Skills / Competencies • Quality • Culture • Compensation & Benefits
  • 8. Methodology of HRD Audit (How?)  Interviews  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
  • 9. Reasons for HRD Audit (Why?) • 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
  • 10. Role of HRD Audit • HRD audit is cost effective • 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 Improvements in HRD systems • Increased focus on human resources and human competencies • Improvements in HRD systems • Better recruitment policies and more professional staff • More planning and more cost effective training • TQM Interventions
  • 11. HRD SCORE CARD  T.V. Rao (1999) has introduced the concept of HRD score card.  The HRD Scorecard is a measure of the HRD maturity level of an organization. The scorecard is based on the following assumptions and takes into consideration the research based understanding gained in the last few decades regarding HRD. The maturity level of HRD in an organization is indicated by the following factors: 1. HRD Systems Maturity 2. HRD Competencies of the Employees including the HR Department 3. HRD Culture of the Organization 4. HRD Influence on the Business Goals or Business Linkages of HRD
  • 12. Name of the Organisation ABC HRD HRD Business Overall HRD HRD Culture Systems Competence Linkage Maturity Grade Maturity Score Grade rating B* C B* B B*C B*B A* Highest Score and Highest Maturity Level A Very High Maturity level B* High Maturity Level B Moderately High Maturity Level C* Moderate Maturity Level C Moderately low Maturity level D* Low Maturity Level D Very low Maturity level F Not at all present U Ungraded
  • 13. Assumption “Competent and motivated employees are needed to provide quality products and services at competitive rates and ways that enhance customer satisfaction”
  • 14.  HRD Systems Maturity Score Competencies and commitment can be developed through appropriate HRD mechanisms (tools and systems). In a HRD Mature organization there will be well-developed HRD systems and HRD systems Maturity can be measured through HRD audit.  HRD Competence Score HRD Competencies of the HRD department and the line managers play a significant role in implementing the systems and processes in ways that could ensure employee satisfaction, competence building and customer satisfaction linkages. The competencies of the staff and the other employees can be measured in terms of an index.
  • 15.  The HRD Culture values and processes created by the HRD tools, staff and their styles also play a crucial role in building sustainable competencies in the organization. These need to be measured and monitored. It is possible in some corporations (for example small corporations) to have very little of HR systems and yet have a high level of HR competencies and HR culture. In the traditional family owned organizations in those years where there were no systems approaches there used to be good degree of HRD culture, which has resulted in effective functioning and business.  Business Linkage Score Business linkages of HRD are very crucial component of HRD effectiveness.HRD systems competencies and the culture must be a lined with the business oals of the cororation
  • 16. Challenges in HRD Audit  Build and improve quality consciousness  Strive to recruit and retain competent , creative employees  Align biz processes with technology infrastructure  Nurture creative and supportive work culture  Train and develop the employee through 360 degree feedbacks, appraisals.  Promote learning orientation-informal networks
  • 17. Organisations that Have done HRD Audit • Aditya Birla Group (8 years) • L&T • Gujarat Gas • Gujarat Guardian • Apollo Tyres • Alexandria Carbon Black • Godrej Soaps • GVFL • BPL • Tyco International • Wokhardt Hospitals Bangalore • Bharat Electronics • NTPC