Description
The PPT explains about HR Audit.
People Perspective HR AUDIT
Outline
Introduction ? Reasons and Benefits ? Scope ? Pre- Audit process ? The Auditing Process ? Audit Tools ? Audit Report ? Case Studies & Examples ? Conclusion
?
What is HR audit?
?
HR Audit is a comprehensive evaluation of the existing HRD: ? Structure ? Strategies ? Systems ? Styles ? Skills / Competencies & ? Culture To achieve the short-term and long-term goals of the organisation.
?
An HR audit is a process:
? ? ?
?
?
To review implementation of an institution?s policies and procedures To ensure compliance with employment laws To eliminate liabilities To implement best practices To educate the company managers
Why HR Audits?
?
?
?
? ? ? ?
To make the HR function business-driven Change of leadership To take stock of things & to improve HRD for expanding, diversifying, & entering into a fast growth phase For growth & diversification For promoting professionalism among employees & to switch over to professional Management To find out the reasons for low productivity & improve HRD strategies Dissatisfaction with a particular component
HR Audit gives feedback…
?
? ?
About the HR function to operating managers
To human resource specialists
About how well managers are meeting their HR
duties
The HRM Cycle
HRM Objectives
Orgn. Objectives
HRM Activities
HR Audits
HRM Outcomes
Benefits
? ? ?
Identifies the contribution of HR dept. to the organization Ensures compliance with legal requirements Finding critical personnel problems
?
? ? ?
Improves HR practices
Prepares for potential government audit or litigation Reduction of costs through better personnel procedures Clarifies the personnel department?s duties and responsibilities
Major Areas of HR Audit
?
Audit of corporate strategy
Audit of the Human Resource function Audit of managerial compliance Audit of employee satisfaction
?
?
?
Scope of HR Audit
Audit of Corporate Strategy
• How the organization is going to gain competitive advantage • How to achieve low cost production, better marketing channels etc. • Helps relate corporate strategy with HR activities like planning, staffing and
compensation
Audit of the Human Resource Function
• Human Resource Information System – supply and demand estimates, skill inventories, job specifications, compensation management • Staffing and Development – Recruitment, training and career development • Organization Control and Evaluation – Performance appraisals, Labormanagement, employee communications
Scope of HR Audit (contd.)
Audit of Managerial Compliance
• Reviews how well managers comply with human resource policies and procedures • Ensures compliance with safety, compensation and labour laws
Audit of Employee Satisfaction
• To learn how well employee needs are met • Reviews their general attitude to the job • Data gathered is used to implement better policies and practices
Pre- Audit Process
? ? ?
Determine who will conduct the audit
Secure senior management support Define the parameters
? ? ?
Who, what, how of the process Tools to be used Results to be reported
?
Introduce process to the managers
The Auditing Process
Identify who is responsible for each activity
Determine the objectives sought by each activity
Review the policies and procedures used to achieve these activities
Prepare a report commending proper objectives, policies, and procedures
Develop an action plan to correct errors in each activity
Follow up the action plan to see if it solved the problems found through the audit
Audit Tools
• Interview and Exit interviews
• Questionnaire/ Surveys • Historical Analysis • External Information
Audit Report
? ?
Findings compiled in a draft letter
Department head/manager reviews the draft and makes comments/corrections
? ? ?
Final version is compiled Report presented to senior management Copy sent to department head/manager
The Report contains…
? ? ? ?
Recognition of department?s cooperation (or lack of it) Statement of the facts – avoid opinions Areas that need attention Areas where department was proactive, compliant, practiced good judgment
? ? ?
“Suggestions” on how to correct problem areas Time line for follow-up Human Resources? assistance offered
Case studies & examples
?
?
Leading Irish distribution company had concerns over HR policies, procedures and practices in place in their organization Actions taken ? HR compliance audit was conducted ? Meetings with key staff members ? On-site review of all employee files ? Current policies and procedures ? Supporting documentation ? Review of HR system in place
Key Findings
? ? ?
?
? ? ?
No. of serious compliance breaches Absence of employee contracts Non-compliant policies No-employee handbook Inconsistent employee terms and conditions Breaches in compliance with the organization of working time act of 1997 Proper record of employees not maintained
Outcomes/Benefits
Comprehensive report setting out the gaps ? Series of practical actions to address gaps ? Comprehensive employee handbook detailing policies and procedures ? Best practice record keeping system ? Nominated individual identified and trained to ensure HR compliance in the future
?
HR Auditing in Satyam
?
HR dept. verifies the company?s headcount after AP CID?s claims of 13000 ghost employees on the company?s payroll Internal audit verification undertaken by Deloitte and KPMG Audit includes staff in India, overseas & subsidiaries
?
?
About Gateway
?
Founded in 1985
Grew from a 2 person start up to a multibillion dollar fortune 500 company Employs 12000 people Faced intense price competition and sagging consumer demand recently
?
?
?
Key issues facing Gateway
More centralization ? Improve customer satisfaction ? Simplify product line ? Drive revenues ? Relaunch brand ? Establish a culture
?
? Employees
held accountable ? Rewarded for high performance
Approach (1/2)
?
?
? ?
Watson Wyatt hired for HR audit Quarterly reward system tied to company?s and individual?s performance, bonus pool based on company?s results, 0-200% performance bonus based on managerial discretion Company wide skill assessment process to identify skill gaps Upgrade from PeopleSoft 7.5 to 8.3 to drive efficiency and increase centralization
Approach (2/2)
Relocation of the internal communication function inside HR ? Expansion of Corp.HR from 40 to 100 people ? Establishment of HR service centre to enhance service delivery ? Emphasis on metrics such as employee satisfaction, commitment and productivity, and organizational capability
?
Results (1/2)
?
Impressive increase in employee and customer satisfaction due to HR audit and implementation of its recommendations HR service centre –instrumental in improving the employee perception of HR ? Average of 100 calls per day initially ? Gradually increased to 600 calls per day
?
Results (2/2)
?
“ The service centre has been a huge success. From a basic process and infrastructure standpoint, it?s been a real benefit to us and has made things much more efficient” – Gateway?s director of HR operations
HRD Audit of 12 organizations
Survey of audit done on 12 leading Indian corporations ? HRD function is not as well-structured as envisaged in the mid-seventies ? Convenience driven than systems driven ? Not well integrated systems ? Structures and competencies not in tune with the integrated HRD system
?
Maturity levels of sub systems
Performance management system, Training & development system have evolved and matured to a substantial degree ? OD, Feedback & Counseling are in the next level of maturity ? Potential appraisal, career planning & development are the least developed and used sub systems
?
Study by TVRLS
?
Perception of HRD functions by 162 line managers were assessed
18 companies and 3-10 line managers from each company Assessment of HRD?s performance of 87 different activities under 8 different functions
?
?
Results of the study (1/2)
?
Decline in the perceptions of the effectiveness with which HRD functions are being performed as compared to a decade ago Functions are perceived as being performed at a level below the theoretical average Reflection of the falling standards of performance of various HRD activities
?
?
Results of the study (2/2)
?
Most frequently performed roles
? Influencing
personnel policies ? Alignment of HRD with business goals and strategies, ? Articulating HR philosophy ? Liaising with top management
?
Poorly performed functions
? Monitoring
HRD implementation ? Conducting human process research ? OD
Conclusion
? ? ? ? ? ?
HRD – more of a business & strategic partner than a function One of the major contributors for building competing world class organizations Organizations strive to internalize the HRD philosophy and principles- part of mission statement HRD seen as a „ stand alone? entity in most organizations Poor linkage of HRD and its sub systems to overall business strategy One of the ways of bridging the gap and strengthening the weak link is HRD Audit
References
?
Text Books
? HRD
Score Card 2500 based on HRD Audit by T.V.Rao – First edition ? Recent experiences in Human Resources Development by T.V.Rao & D.F.Pereira
?
Websites
?http://www.citehr.com ?http://www.workinfo.com ?http://www.thehindubusinessline.com ?http://www.wikipedia.org
THANK YOU !! ?
doc_667937563.ppt
The PPT explains about HR Audit.
People Perspective HR AUDIT
Outline
Introduction ? Reasons and Benefits ? Scope ? Pre- Audit process ? The Auditing Process ? Audit Tools ? Audit Report ? Case Studies & Examples ? Conclusion
?
What is HR audit?
?
HR Audit is a comprehensive evaluation of the existing HRD: ? Structure ? Strategies ? Systems ? Styles ? Skills / Competencies & ? Culture To achieve the short-term and long-term goals of the organisation.
?
An HR audit is a process:
? ? ?
?
?
To review implementation of an institution?s policies and procedures To ensure compliance with employment laws To eliminate liabilities To implement best practices To educate the company managers
Why HR Audits?
?
?
?
? ? ? ?
To make the HR function business-driven Change of leadership To take stock of things & to improve HRD for expanding, diversifying, & entering into a fast growth phase For growth & diversification For promoting professionalism among employees & to switch over to professional Management To find out the reasons for low productivity & improve HRD strategies Dissatisfaction with a particular component
HR Audit gives feedback…
?
? ?
About the HR function to operating managers
To human resource specialists
About how well managers are meeting their HR
duties
The HRM Cycle
HRM Objectives
Orgn. Objectives
HRM Activities
HR Audits
HRM Outcomes
Benefits
? ? ?
Identifies the contribution of HR dept. to the organization Ensures compliance with legal requirements Finding critical personnel problems
?
? ? ?
Improves HR practices
Prepares for potential government audit or litigation Reduction of costs through better personnel procedures Clarifies the personnel department?s duties and responsibilities
Major Areas of HR Audit
?
Audit of corporate strategy
Audit of the Human Resource function Audit of managerial compliance Audit of employee satisfaction
?
?
?
Scope of HR Audit
Audit of Corporate Strategy
• How the organization is going to gain competitive advantage • How to achieve low cost production, better marketing channels etc. • Helps relate corporate strategy with HR activities like planning, staffing and
compensation
Audit of the Human Resource Function
• Human Resource Information System – supply and demand estimates, skill inventories, job specifications, compensation management • Staffing and Development – Recruitment, training and career development • Organization Control and Evaluation – Performance appraisals, Labormanagement, employee communications
Scope of HR Audit (contd.)
Audit of Managerial Compliance
• Reviews how well managers comply with human resource policies and procedures • Ensures compliance with safety, compensation and labour laws
Audit of Employee Satisfaction
• To learn how well employee needs are met • Reviews their general attitude to the job • Data gathered is used to implement better policies and practices
Pre- Audit Process
? ? ?
Determine who will conduct the audit
Secure senior management support Define the parameters
? ? ?
Who, what, how of the process Tools to be used Results to be reported
?
Introduce process to the managers
The Auditing Process
Identify who is responsible for each activity
Determine the objectives sought by each activity
Review the policies and procedures used to achieve these activities
Prepare a report commending proper objectives, policies, and procedures
Develop an action plan to correct errors in each activity
Follow up the action plan to see if it solved the problems found through the audit
Audit Tools
• Interview and Exit interviews
• Questionnaire/ Surveys • Historical Analysis • External Information
Audit Report
? ?
Findings compiled in a draft letter
Department head/manager reviews the draft and makes comments/corrections
? ? ?
Final version is compiled Report presented to senior management Copy sent to department head/manager
The Report contains…
? ? ? ?
Recognition of department?s cooperation (or lack of it) Statement of the facts – avoid opinions Areas that need attention Areas where department was proactive, compliant, practiced good judgment
? ? ?
“Suggestions” on how to correct problem areas Time line for follow-up Human Resources? assistance offered
Case studies & examples
?
?
Leading Irish distribution company had concerns over HR policies, procedures and practices in place in their organization Actions taken ? HR compliance audit was conducted ? Meetings with key staff members ? On-site review of all employee files ? Current policies and procedures ? Supporting documentation ? Review of HR system in place
Key Findings
? ? ?
?
? ? ?
No. of serious compliance breaches Absence of employee contracts Non-compliant policies No-employee handbook Inconsistent employee terms and conditions Breaches in compliance with the organization of working time act of 1997 Proper record of employees not maintained
Outcomes/Benefits
Comprehensive report setting out the gaps ? Series of practical actions to address gaps ? Comprehensive employee handbook detailing policies and procedures ? Best practice record keeping system ? Nominated individual identified and trained to ensure HR compliance in the future
?
HR Auditing in Satyam
?
HR dept. verifies the company?s headcount after AP CID?s claims of 13000 ghost employees on the company?s payroll Internal audit verification undertaken by Deloitte and KPMG Audit includes staff in India, overseas & subsidiaries
?
?
About Gateway
?
Founded in 1985
Grew from a 2 person start up to a multibillion dollar fortune 500 company Employs 12000 people Faced intense price competition and sagging consumer demand recently
?
?
?
Key issues facing Gateway
More centralization ? Improve customer satisfaction ? Simplify product line ? Drive revenues ? Relaunch brand ? Establish a culture
?
? Employees
held accountable ? Rewarded for high performance
Approach (1/2)
?
?
? ?
Watson Wyatt hired for HR audit Quarterly reward system tied to company?s and individual?s performance, bonus pool based on company?s results, 0-200% performance bonus based on managerial discretion Company wide skill assessment process to identify skill gaps Upgrade from PeopleSoft 7.5 to 8.3 to drive efficiency and increase centralization
Approach (2/2)
Relocation of the internal communication function inside HR ? Expansion of Corp.HR from 40 to 100 people ? Establishment of HR service centre to enhance service delivery ? Emphasis on metrics such as employee satisfaction, commitment and productivity, and organizational capability
?
Results (1/2)
?
Impressive increase in employee and customer satisfaction due to HR audit and implementation of its recommendations HR service centre –instrumental in improving the employee perception of HR ? Average of 100 calls per day initially ? Gradually increased to 600 calls per day
?
Results (2/2)
?
“ The service centre has been a huge success. From a basic process and infrastructure standpoint, it?s been a real benefit to us and has made things much more efficient” – Gateway?s director of HR operations
HRD Audit of 12 organizations
Survey of audit done on 12 leading Indian corporations ? HRD function is not as well-structured as envisaged in the mid-seventies ? Convenience driven than systems driven ? Not well integrated systems ? Structures and competencies not in tune with the integrated HRD system
?
Maturity levels of sub systems
Performance management system, Training & development system have evolved and matured to a substantial degree ? OD, Feedback & Counseling are in the next level of maturity ? Potential appraisal, career planning & development are the least developed and used sub systems
?
Study by TVRLS
?
Perception of HRD functions by 162 line managers were assessed
18 companies and 3-10 line managers from each company Assessment of HRD?s performance of 87 different activities under 8 different functions
?
?
Results of the study (1/2)
?
Decline in the perceptions of the effectiveness with which HRD functions are being performed as compared to a decade ago Functions are perceived as being performed at a level below the theoretical average Reflection of the falling standards of performance of various HRD activities
?
?
Results of the study (2/2)
?
Most frequently performed roles
? Influencing
personnel policies ? Alignment of HRD with business goals and strategies, ? Articulating HR philosophy ? Liaising with top management
?
Poorly performed functions
? Monitoring
HRD implementation ? Conducting human process research ? OD
Conclusion
? ? ? ? ? ?
HRD – more of a business & strategic partner than a function One of the major contributors for building competing world class organizations Organizations strive to internalize the HRD philosophy and principles- part of mission statement HRD seen as a „ stand alone? entity in most organizations Poor linkage of HRD and its sub systems to overall business strategy One of the ways of bridging the gap and strengthening the weak link is HRD Audit
References
?
Text Books
? HRD
Score Card 2500 based on HRD Audit by T.V.Rao – First edition ? Recent experiences in Human Resources Development by T.V.Rao & D.F.Pereira
?
Websites
?http://www.citehr.com ?http://www.workinfo.com ?http://www.thehindubusinessline.com ?http://www.wikipedia.org
THANK YOU !! ?
doc_667937563.ppt