hrd audit concepts

8/6/2019 HRD Audit Concepts

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HRD Audit

HRD audit is a comprehensive evaluationof the current HRD strategies, structure,

styles and skills in the context of the short

and long-term business plans of the

company

It attempts to find out the future HRD

needs of the company after assessing the

current HRD activities and inputs


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Concept of HRD Audit:

HRD audit is Comprehensive: It starts with an

understanding of the future business plans andcorporate strategies. The HRD audit starts with thefollowing questions:

Where does the company want to be ten years

from now, three years from now and one year fromnow? (answer to this question contribute to theHRD business linkages score of the HRD scorecard)

What is the current skill base of the employees inthe company in relation to the various roles androle requirements? (answer to this questioncontribute to the competency score on the HRDscore card)


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What are the HRD subsystems available today to

help the organization build its competency base

for the present, immediate future and long-termgoals? (answer to this question contribute to the

HRD systems maturity score of the HRD score

card)

What is the current level of effectiveness of these

sub-systems in developing people and ensuring

that human competencies are available in

adequate levels in the company? (answer to this

question contribute to the HRD systems maturity

on the HRD score card)


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Is the HRD structure existing in the

company adequate enough to managethe HRD in the company? (answer to

this questions contribute to the HRD

competencies score of the score card)

Are the top management and senior

manager styles of managing people in

tune with the learning culture? (answer

to this question contribute to the HRDculture score of the HRD score card)


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HRD Audit Examines Linkages with other

Systems: Like TQM, strategic planningetc.

HRD audit is Business-driven: It keeps

business goals in focus, at the same

time, it attempts to bring professionalismin HRD


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Why Do Most Companies Want HRD Audit?

1. To make the HR function business-driven2. To take stock of things and to improve HRD for

expanding, diversifying, and entering into a fastgrowth phase

3. For promoting professionalism among

employees and to switch over to professionalmanagement4. Multinationals want to know the reasons for

lower labor productivity and for improving theirHRD strategies in the Indian context

5. For growth and diversification6. Dissatisfaction with a particular component7. Change of leadership


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Role of HRD Audit in Business Improvement

It can get the top management to think in terms of

strategic and long-term business plans

Changes in the styles of the top management

Role clarity of the HRD department and the role of

line managers in HRD

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

Streamlining of other management practices


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Strengthening accountability through

appraisal systems and other mechanisms

TQM interventions

It can enhance the ROI (return on

investment)( of the HR function


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Methodology of HRD Audit: An Overview

Methods for HRD Audit: Individual Interviews

Group Interviews

Workshop

Questionnaire Method

Observation

Analysis of Secondary Data

Analysis of Reports, Records, Manualsand other Published Literature


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Limitations of HRD Audit

The audit itself is rarely a failure, however when

HRD audit is conducted as a fashion or as arequirement of someone else and the CEO has no

way of refusing such an HRD audit, it can have

some negative results.

Most HRD audit failures are due to failures ofimplementation.

Sometimes HRD audit can also be used against

the HRD department to get rid of some staff in the

department.

HRD audit does not give evaluation of individuals

but focuses on units and systems

hrd audit concepts

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