CHAIRMAN AND MANAGING DIRECTOR

DIRECTOR MARKETING

DIRCETOR FINANCE

CHIEF VIGILANCE

OFFR

COMPANY SECRETARY CC & CSR

DIRECTOR TECHNICAL

EXEC DIR MKT

GEN MGR

GM (OPRN)

GM (TECH)

GM (MAINT)

GM (COMM)

GM (TECHN)

GM (OPRN)

CGM HR

GM FIN

CGM (CF & IT )EXECT DIR

TROMBAYEXECT DIR HR

EXECT DIR THAL

EXECT DIR P & PD

EXECT DIR FIN

EXECT DIR (F & SO)

CHAIRMAN AND MANAGING DIRECTOR

DIRECTOR MARKETING

GG

DIRCETOR FINANCE

DIRECTOR TECHNICAL

LL

EXCT DIR ECTOR HR

EXCT DIR IA CHIEF OFFR VIGILANCE

CO SECRETARY

EXEC DIR MKT

CHIEF GEN MGR COMPLEX & ACIDS

GEN MGR FERT,MKT

GEN MGR IPD

GENERAL MGR FIN

GEN MGR FIN

CHIEF GEN MGR THAL

CHIEF GEN MGR FIN

GEN MGR CO-ORD.

GEN MGR ES,SGP,CM

CHIEF GEN MGR CORP

GEN MGR THAL

ADVISOR PRJ.

EXEC DIR TR

CHIEF GEN MGR PROJECT

CH GEN MGR TECH TR

GENERAL MGR R&D

GENERAL MGR COMM

GENERAL MGR NITROGEN

GEN MGR HR

GEN MGR HR CORP

GEN MGR IT

CHAIRMAN AND MANAGING DIRECTOR

DIRECTOR MARKETING

DIRCETOR FINANCE

CHIEF VIGILANCE

OFFR

COMPANY SECRETARY CC & CSR

DIRECTOR TECHNICAL

EXEC DIR MKT

GEN MGR

GM (OPRN)

GM (TECH)

GM (MAINT)

GM (COMM)

GM (TECHN)

GM (OPRN)

CGM HR

GM FIN

CGM (CF & IT )EXECT DIR

TROMBAYEXECT DIR HR

EXECT DIR THAL

EXECT DIR P & PD

EXECT DIR FIN

EXECT DIR (F & SO)

DIRECTOR MARKETING

GG

DEFINITION:Human Resource Audit is a systematic assessment of the strengths, limitations, and developmental needs of its existing human resources in the context of organizational performance – (Flamholtz, 1987)

NEED FOR H.R. AUDIT:Top Management saw solutions to their problems, issues and challenges in HRD to face business competition and to achieve

organizational goals.

PURPOSE OF H.R. AUDIT:1. To examine and pinpoint strength and weaknesses relatedto H.R. areas and Skills and Competencies to enable an organization to achieve its long-term and short-term goals.2. To increase the effectiveness of the design and implementation of human resource policies, planning and programs.3. To help human resource planners develop and update employment and program plans.

SCOPE OF HUMAN RESOURCE AUDITWhenever the H.R. Audit it taken up, the scope is decided. Audit need not be exhaustive, but should be focused on particular function of H.R.M. such as Training and Development, Performance Appraisal, Compensation, etc.. However, the objective and approach of H.R. Audit, more or less, remains the same, regardless of scope.

APPROACH TO H.R. AUDIT1. Self – directed surveys.2. Task Forces within the organisation.3. Out side Consultants.

AUDITING PROCESS: STEPS IN H.R. AUDITAuditing process varies from organizations to organizations.Generally involves following STEPS:

STEP ONE: Briefing and Orientation:Key Staff Members meet:i. To discuss particular issues considered to be important.ii. To chart out audit procedures, and iii. To develop plans and program of audit.

STEP TWO: Scanning material information:Scrutiny of all available information pertainingto personnel, personnel handbooks and manuals,guides, appraisal forms, computer capabilities and any other related information.

STEP THREE: Surveying employees: a. Interview with key managers, functional executives,Top functionaries in the organisation and employeesRepresentatives, if necessary.b. The purpose is to pinpoint issues of concern,Present strengths, anticipated needs and managerialviews on human resources.

STEP FOUR: Conducting interviews:

I. What questions to be asked, are developed duringscanning of information.II. It is better for H.R. Audit, if clarity about the keyfactors of H.R.M. selected for audit and the relatedquestions that need to be examined.

STEP FIVE: Synthesising:

The data gathered is synthesized to present thea. Current Situation.b. Priorities.c. Staff pattern, and d. Issues identified.

STEP SIX; Reporting:

1. The results of the audit are discussed withManagers and Staff Specialists, in severalrounds.2. Important issues are identified for inclusion in the formal Report.

H.R. AUDIT TOPICS (AREAS) FOR INTERVIEW QUESTIONNAIRESAND RELATED ASPECTS

1. INFORMATION

• COVERAGE• SOURCE• ADEQUACY• GAPS

2. FORECASTING

• METHODOLOGY• RELIABILITY• TESTABILITY• BUDGETING• TIME ORIENTATION• TECHNOLOGY PERSPECTIVE

3. TRAINING AND DEVELOPMENT

• NEED ASSESSMENT• SELECTION CRITERIA• LEVELS COVERED AND FREQUENCY• INTERNAL VS EXTERNAL TRAINING• QUALITY CONSCIOUSNESS• CHANGING NEEDS• CLIMATE FOR SELF-DEVELOPMENT

4. PERFORMANCE APPRAISAL

• VALIDITY OF APPRAISAL PROCESS• FITNESS• BENEFITS AND/OR DRAW BACKS/PROBLEMS• KNOW-HOW OF APPRAISING• CLEAR OBJECTIVES• UNIFORMITY IN PROCESS

• UNDERLYING BENCHMARKS• CONSISTENCY IN RATINGS• LINKAGES WITH PAY• FEEDBACK TO EMPLOYEES• CHANGING NEEDS

5. MANAGEMENT SUCCESSION PLANNING

• POLICY FORMULATION• IDENTIFYING KEY POSITIONS• AVAILABILITY OF SUCCESSORS• MATCHING FUTURE NEEDS• RESPONSIBILITY FOR GROOMINGAND DEVELOPING• HANDLING NON/POOR PERFORMERS

6. COMPENSATION

• APPROPRIATENESS OF POLICIES• COMPANY PHILOSOPHY• ADEQUACY OF REWARDS• NATURE OF JOB DESCRIPTIONS• FLEXIBILITY IN JOB EVALUATION SYSTEMS• CONTROL OVER COSTS• RATIONALE OF REWARD SYSTEM• OPPORTUNITIES FOR IMPROVEMENT

7. AFFIRMTIVE ACTION

• EFFICIENCY OF ACTION PROGRAMMES• LESSONS FOR FUTURE

8. SPECIAL ASSIGNMEN(OTHER H. R. FUNCTIONS)

• CLARITY• COMMENTS• ACTIVITIES JURISDICTIO

9. NEED INTER-RELATIONSHIPS

• UNIQUENESS• DISTINCTIVENESS• PRESENCE AND AWARENESS OF ABOUTCOMPANY’S H. R. POLICY• CLARITY ON OBJECTIVES OF H.R. AUDIT• FUTURE OUTLOOK ON PHILOSOPHY* CAPABILITIES ON IMPLEMENTATION

10. THE STAFF FUNCTION(THE H.R. STAFF)

• EXPECTATION FROM HUMAN RESOURCE STAFF• DEGREE OF SATISFACTION• ADEQUACY• ATTIDUDE AND APPROACH• CAPABILITY AND POTENTIAL• SUGGESTION FOR CHANGE

*****

attribution http://www.citehr.com/16449-hr-audit-notes-change-management.html#ixzz311ZAsQdR

Regular human resources audits are effective, proactive measures that ensure an organization's compliance with federal and state regulations as well as organizational policy concerning employment actions and HR strategic management. An audit can be performed on a single HR function, such as an examination of compensation practices, or it can focus on several areas of HR at a time. HR audits also can be useful in adjusting workplace policies when necessary or modifying HR practices to be consistent with corporate headquarters' HR processes.Sponsored Link

Performance Management www.hrtools.com.au

Staff performance management 360 and Climate Surveys 100% Free!

Step 1

Schedule a meeting with the HR audit team. Team members might include a representative from every HR discipline, such as compensation and benefits, recruitment and selection, training and development, employee relations and safety and risk management. Assign specialists their duties for conducting portions of the HR audit within their areas of expertise.Step 2

Establish the time within which to complete the full audit, as well as individual areas of the audit for each HR area. Identify areas of the audit that are contingent upon the completion of another area. For example, if the employee relations portion of the audit needs information from completed portions of the compensation and benefits portion, establish the order in which specific areas must be completed.Step 3

Obtain HR process documents and standard operating procedures, if they exist. Any documentation related to how HR staff process employee requests, applicant information, medical or health information and payroll matters. If the organization outsources any of its HR functions, gather information from outsource providers and determine consistency with in-house functions. In addition, for outsourced functions,

obtain information from the HR staff member who oversees the outsourced functions and monitors the providers for quality assurance.Step 4

Review each area's process. For example, look at the way employee relations specialists manage intake of employee complaints, the investigation process, interaction with legal counsel, documenting witness statements and sealing confidential files related to employee complaints. Another example is a review of compensation practices. Aside from ensuring the company is in compliance with record-keeping provisions of the Fair Labor Standards Act, determine whether the company is adhering to its compensation structure. This includes assigning wage increases according to the terms and conditions of union contracts, performance appraisal processes or merit increase policies.Step 5

Examine the workplace for postings required by federal and state law. For example, look for current minimum wage posters required by the U.S. Department of Labor, Wage and Hour Division. In addition, ensure there is an adequate number of posters that inform employees of their workplace rights under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act and the Family Medical Leave Act. If the organization is a government contractor, it may have additional obligations to post notices concerning its obligations under Executive Order 11246 for mandatory affirmative action compliance.Sponsored Links

DIA Training Webinar

Variations in the European Union: CMC/Quality Changes

www.diahome.org / webinars

Fire Safety Audit

Identify Fire Safety hazards, Minimize the risk of accidents

www.ascertiva.in

Risk Management Program

Learn Enterprise Risk Management @ IIM Bangalore Executive Education

www.iimb.ernet.in

Free Kitchen Catalog 2014

New Colors, Amazing Designs & More. Grab Your Free Copy Today!

www.sleekworld.com

References

Minnesota Department of Trade and Economic Development: Why and How to Conduct a Human Resources Audit in Minnesota

U.S. Equal Employment Opportunity Commission: EEOC Poster Request Form U.S. Department of Labor: Fair Labor Standards Act -- Minimum Wage Poster U.S. Department of Labor: Compliance Assistance -- Executive Order 11246 Nonprofit HR Solutions: HR Audit -- 101

About the Author

Ruth Mayhew began writing in 1985. Her work appears in "The Multi-Generational Workforce in the Health Care Industry" and "Human Resources Managers Appraisal Schemes." Mayhew earned senior professional human resources certification from the Human Resources Certification Institute and holds a Master of Arts in sociology from the University of Missouri-Kansas City.******************************************************************************************************************************************************************************************************************************************************

auditAn audit is a systematic and documented investigation to determine if prescribed processes are functioning as intended. We audit to find out whether processes are working properly, where they are not working properly, and how to address identified gaps. No matter how diligent the staff is in following procedures, there are nearly always revelations indicating needed corrections and opportunities for improvement. Whether an audit is conducted as part of a due diligence process, to evaluate management system effectiveness, or to assess routine EH&S compliance, the audit process allows us to reset the system back to where it should be.

Types of Audit Surprises

Since there is a high likelihood that audits will reveal unexpected problems, it is important to understand how to handle those surprises. Every situation is different in the specifics, however, negative findings generally occur in a few primary categories: legal violations, procedural discrepancies or corporate system violations. Legal violations will, of course, require immediate attention. In the case of a safety issue, it may be critical to isolate the

problem immediately to reduce the possibility of injury. If there is an environmental compliance issue, it may be necessary to mitigate the situation. In situations of lesser urgency, it may be sufficient to simply stop the situation from continuing while an investigation is conducted to identify the root cause of the problem.When investigating a potential legal issue, it is important to refrain from jumping to conclusions. A careful analysis is needed to determine if an actual violation exists. If the problem is a system or procedural violation, rather than a legal one, it still may be important to act quickly to prevent a financial loss. No matter which type of issue exists, it is critical that the situation be investigated thoroughly, the root causes discovered, and appropriate corrective actions taken. Below are a few real-world situations for illustration.

1. During a regulatory compliance audit at a chemical and components parts manufacturer, the auditor discovered that the company's wastewater discharge from a large parts washer associated with their painting operation was being sent to a municipal water treatment system. The company believed they were obeying the law because they were operating within the limits of their state- issued NPDES permit. They had made an earlier decision to stop discharging to the local creek and route their discharge directly to the city system instead. In making this change they failed to consider city sewer ordinances which had tighter limits than their permit. When the audit revealed the problem, the initial concern was that a violation of the city ordinance existed. A careful investigation revealed that although their system would have allowed for a legal violation, their records revealed that no actual violation had occurred. The audit found the problem before any violation had occurred and gave them the opportunity to take appropriate corrective action without any legal difficulties.

2. In a similar audit, a different company, that has an excellent reputation for safety, redesigned a room to include explosion proof electrical fixtures for the storage of highly flammable solvents. The audit revealed an improper repair of one electrical fixture in the room. The repair compromised the explosion proof design and created a major fire risk. Immediate action was needed to assure the safety of all involved. The audit made it possible to eliminate a serious fire hazard.

3. At a telecommunications company that designed its products and new facility without asbestos, an auditor was assured that there was no asbestos onsite. Never-theless, the auditor discovered asbestos in the hazardous waste shed. The subsequent investigation revealed that the company's installers were cleaning up the waste they created at their clients' sites and were returning it to the company shed. This included the dust created from drilling through floor tile that contained asbestos. The environmental manager was previously unaware of the practice. The audit revealed a situation that required correction due to both safety and environmental concerns.

Identifying the Root CauseAll three of these situations required some form of corrective action but the causes varied considerably. A root cause analysis is an effective way to determine the true reasons for the problem, leading to corrective actions that are permanent rather than quick fixes. A simple technique for performing a root cause analysis is known as the "Five Why" approach. Don't just ask why a problem occurred but rather ask "Why?" five times consecutively. For example, consider the scenario above at the chemical company where the city sewer ordinance was not considered. The "Five Why" approach might look like the following:Problem Statement- The wastewater was being sent to the POTW without considering the limits of the city sewer ordinance.

WHY #1 - We thought the State NPDES Permit covered the waste water discharges.WHY #2 - We were unaware of the City Sewer Ordinance.WHY #3 - We failed to research the legal implications when we made a change to the plant's handling of wastewater.WHY #4 - We did not inform the plant environmental manager of the plant change.WHY #5 - The plant environmental manager is not routinely copied on plant infrastructure changes.

If the staff stopped at WHY #1, they would have corrected the potential problem of a violation of the city ordinance but not addressed the root cause. As a result, there could have been a reoccurrence of the issue when a different plant infrastructure change occurred. The root problem was not the legal one but rather that the environmental manager was not being informed of changes that could affect plant compliance. The "Five Why" process revealed the root cause that will allow them to address the immediate problem and prevent the problem from reoccurring in the future.Of course, simple problems may not always need to have five levels of asking "Why?" and complex issues may require deeper investigation. The concept, however, is to repetitively ask "Why?" until the root cause is identified.

The strength of the "Five Why" approach is its simplicity. This encourages its use in a wide variety of situations. On the other hand, more complicated situations may require a more in-depth evaluation. A modified version of the "Five Why" approach is usually needed when multiple root causes are found. In these cases it is usually best to break down each root cause separately by dividing them into categories such as:

People - training, human behavior, ergonomics, communications Equipment - infrastructure, maintenance, capital expenditures Environment - physical conditions, culture, weather Materials - industrial hygiene, consistency, handling, transportation Methods - policies, procedures, systems

Each category may contain a separate root cause to a problem. A Cause and Effect Diagram (Fishbone diagram) is often an excellent tool for analyzing the various root causes. In the simple example above there are indications of root causes in the training, communications, infrastructure and systems categories. The company had failed to train the Facility Engineer about the compliance consequences of rerouting wastewater discharges. There were communications issues among the Operations Management, Facilities department and the EH&S department. The infrastructure may have been in question due to improper labeling of the facility piping or out-of-date facility drawings. Finally the system of making facility changes without considering the EH&S implications indicates a weakness in the maintenance & capital improvements procedures. Each category's root cause could involve a different aspect of the problem's resolution.It may be of value to next consider doing an FMEA (Failure Mode Effects Analysis) to explore all the possible means of the process failing and the methods of prevention. In complex cases, it may be desirable to use Scatter Diagrams and Correlation Analysis to determine trends and to find the central reality in the mass of seemingly inconsistent data. Statistical Process Control techniques may also be used to analyze and monitor processes when multiple root causes are having a variable effect on the outcome. In evaluating all of this, it is important to remember "Occam's Razor" which states that when multiple competing theories exist it is usually the simplest one that is correct. In other words, we should start with the simple and work toward the complex to ensure the potential

benefit is greater than the risk.

Although surprises are common during audits, handling them with a thorough examination of the facts, a careful analysis of the requirements, and a diligent focus on root causes can lead to appropriate corrective actions. Of course, there was also an audit of a plastics manufacturer that "unearthed" a four foot snake living in a storage area. Now that was a surprise of a different nature!