HRD SCORECARD AND WRITING THE HRD AUDIT REPORT

BYVinita Krishnamurthi

eMBA-HRRoll no. 9181

HRD HRD is a combination of 3 elements Competencies, Commitment Culture

o Any process or activity that, either initially or over the longer-term, has the potential to develop a person’s work-based knowledge, expertise, productivity & satisfaction, whether for personal or group/team gains or for the benefit of an organisation, community nation or ultimately the whole humanity

HRD AUDIT

HRD Audit is a comprehensive evaluation of the existing HRD

Structure, Strategies, Systems, Styles, Skills / Competencies & Cultureand their appropriateness to achieve the short-term and long-term goals of the organisation.

The Human Resources (HR) Audit can also be defined as a process of examining policies, procedures, documentation, systems, and practices with respect to an organization’s HR functions

Its main objective is to align the HR function(structure, systems and processes) with business goals or to create a business-driven HR function

Organisations undertake HR audits for many reasons :

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. To become employer of choice.

THE HRD SCORECARD An assessment of the HRD maturity level of the

organisation

In HRD Audit the skills, styles, systems, strategies, structure is studied and analysed using a variety of methodologies like Interviews,(Individual & group, Top

Management, Line Managers, HRD Staff, Workmen and others)

Questionnaires Observations Available records Workshops etc.

Assigns a 4 letter reading Systems maturity Competencies Culture and values Business Linkages

It is the resultant of the HRD audit Done by external auditors This evaluation helps the organisation have a

clear understanding of the lacunae and better align the HR processes with business goals

HRD SCORE CARD

These four indices consist of the four pillars of HRD effectiveness. All the four dimensions are assessed using  following ten point rating system.

     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

Name of the Organisation ABC

HRD System Maturity Grade

HRD Competence Score

HRD Culture Grade

Business Linkage Grade

Overall HRD Maturity rating

B* C B* B B*CB*B

HRD SYSTEMS MATURITY

Measures the extent to which various HRD subsystems and tools are well designed and implemented

7 factors System appropriate to business goals Balance between current and future needs of

the corporation HRD strategies from corporate strategies Well designed systems with structural maturity Well implemented Well integrated with internal synergy Adequate talking care of HRD requirements

Subsystems which are assessed Manpower planning and recruitment Performance management systems Feedback and coaching mechanisms Training Career development & Succession planning Job rotation OD interventions HRIS Worker development methods and systems

Potential appraisal and development Other subsystems if any

o 10 point rating scale 10- high level of maturity 5-moderate level 1- extremely low level

HRD COMPETENCIES

Include attitudes, values & skills Employee categories The HRD staff Top management Line managers and supervisory staff Union and association leaders Workmen, operators and grassroot-level

employees

Each of these groups is assessed on

The level of HRD skills they possess

Their attitudes and support to learning and their own development

Extent to which they facilitate learning among others in the corporation and those who work with them.

Their attitudes and support to HRD function and systems

Internal efficiency of the HRD function (HRD Department)

HRD STAFF

How professionally qualified are they?

Do they seem to demonstrate adequate knowledge base?

Are adequately trained in the appropriate HRD systems?

Are they sensitive to internal customer

requirements?

How good is their skill base in implementing various systems?

Do they demonstrate OCTAPACE values?

Are they quality conscious?

· Are they familiar with the business goals of the corporation?

· Are they cost conscious?

· Are they empathetic?

Do they spend adequate time trying to understand the requirements of all categories of employees?

TOP MANAGEMENT

Do they understand HRD and its significance in achieving business goals?

· How supportive are they of HRD interventions and values?

· Are their leadership styles facilitative of a learning culture?

· Are they willing to give the time needed for HRD?

· How well do they subscribe to the HRD values like the OCTAPACE values?

· ?

· How well do they practice HRD values.

· How committed are they to create a learning culture in the organisation?

· Do they invest their time, effort and energies in employee development

LINE MANAGERS AND SUPERVISORY STAFF

· How much do they understand the significance of HRD?

· Are they interested and motivated to develop themselves?

· Are they willing to spend their time and effort

in developing their subordinates?

· How supportive are they of HRD efforts?

Do they have listening and other skills required facilitating development of their juniors?

UNION AND ASSOCIATION LEADERS· How much developmental role are they playing?

· Do they see their own role in HRD?

· Are they committed to create a learning organisation?

· Are they willing to promote employee

development? · Are they positive in their approach and perceive

their own roles a supportive of organisation building?

Do they perceive the significance of Employee development for organisation building?

HRD COMPETENCY MATURITY SCOREA HRD Competency maturity score is assigned on the basis

of the competency levels of all categories.

A* = All categories of employees have extremely high competence base in HRD (knowledge, attitudes, values and skills) and the HRD department has a high internal efficiency and satisfaction levels.

B = The competence levels of every group is at an acceptable level and the internal efficiency of the HRD department and the internal customer satisfaction are acceptable levels.

D = The competencies of more than one group are below acceptable levels and/or the HRD department is not internally efficient and does not meet the requirements of the minimum internal customer satisfaction.

F = Total failure on almost all the dimensions

CULTURE & VALUES

The HRD culture is a culture that promotes a learning organisation

Based on the following dimensions Openness Collaboration Trust and Trustworthiness Authenticity Proaction Autonomy Confrontation Experimentation Learning culture Listening

BUSINESS LINKAGE This score indicates the extent to which HRD

efforts (tools, processes, culture etc.) are driven to achieve business goals.

The business goals includes:· Business Excellence including profitability and other outcomes the organization is expected to achieve;

· Internal operational efficiencies; · Internal Customer satisfaction; · External Customer satisfaction; · Employee motivation and commitment; · Cost effectiveness and cost consciousness

Quality orientation & Technology adoption

HRD AUDIT REPORT

Its main objective is to highlight areas that need improvement and that need to be acted upon

Its purpose is to help the top management and the HRD staff recognise and retain the company’s strengths

1.INTRODUCTION

o An introduction to the company highlighting its manpower, turnover, locations, products and services, its main concerns and its management

o A brief description of the dates and reasons for commissioning the audit

o A brief description of the framework and methodology adopted for the study

o A brief description of the HRD systems framework(various subsystems of HRD audit etc.)

o Future plans of the company and competency requirements

2.CURRENT STATUS OF THE HRD FUNCTION Structure and staffing of the HRD function HRD department’s thrust areas and

objectives Highlights of the HRD systems and

subsystems-brief description of the existing HRD systems(performance appraisal, potential appraisal, career planning, job rotation etc.)

Strengths and weaknesses of the HRD function

HRD needs –broad highlights of the areas that need attention

3.GENERAL OBSERVATIONS Observations by the auditor in relation to its

present competencies and future potential Business concerns for the present and future Competencies and competency requirements for

the future General observations about the competencies

formed General observations about the competency-

promoting mechanisms Commitment and motivational patterns Commitment and motivation-promoting

mechanisms Work culture and organisational culture Culture-building mechanisms

4.CAREER SYSTEMS Findings of the audit in relation to manpower

planning, recruitment, promotions, career planning and development and succession planning

Importance Manpower planning and utilisation-strengths,

weaknesses & recommendations Recruitment-strengths, weaknesses &

recommendations Career planning & development-strengths,

weaknesses & recommendations Succession planning-strengths, weaknesses

& recommendations

5.WORK PLANNING

Introduction(introduce the concepts of work planning briefly followed by the component systems)

Contextual analysis Role clarity Performance appraisal system

6.DEVELOPMENT SYSTEM

Introduction & components Induction training Training & learning systems Performance guidance & development Worker development Other mechanisms of development

7.SELF-RENEWAL SYSTEM

The strengths weaknesses and recommendations can be highlighted in each of the foll. sections

Introduction Role efficacy Organisation development Action-oriented research

8.HRD CULTURE

Introduction HRD culture Values Quality orientation Rewards & recognition Information Communication Empowerment through participation,

decentralisation, shop-floor committees etc.

9.HRD FUNCTION

General Observation Industrial relations & HR Personnel policies & HRD HRD function-structure HRD department-competencies HRD strategies HRD activities & priorities

Thank you!!