2. Omni
Start to End...
"The unexamined work life is
not worth living."
Socrates’ (469-399 BC)
“The things that get measured gets managed”
Kaplan (2000)
3. Omni
What is HRD?...
• HRD is any process or activity that, either initially
or over the longer-term, has the potential to
develop adults 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
- Mclean & Mclean
4. Omni
What is HRD?...
• Competence Building
• Commitment Building
• Culture Building
5. Omni
What ?...
An 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 organisation.
6. Omni
What is 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.
7. Omni
HR Audit v/s HRD Audit...
HRD Audit is evaluation of HR Audit is a comprehensive
only few activities :- evaluation of the entire gamut
of HR activities :-
• Strategies,
• Structure, • HR Cost
• Systems, • HRD activities
• Styles • Health, Env. & Safety
• Skills & Competencies • Legal Compliance
• Culture • Quality
• Compensation & Benefits
8. Omni
How ?...
• In HRD Audit the skills, styles, systems, strategies,
structure is studied and analysed using a variety of
methodologies like
– interviews, (Individual and group, Top Management, Line Managers,
HRD Staff, Workmen and others)
– questionnaires,
– observations,
– available records,
– workshops etc.
• This evaluation helps the organisation have a clear
understanding of the lacunae and better align the
HR processes with business goals.
9. Omni
Why ?...
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.
10. Omni
Role of HRD Audit in Business Improvements…
• HRD audit is cost effective.
• It can give many insights into a company's affairs.
• 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
11. Omni
Role of HRD Audit in Business Improvements…
• 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
• Strengthening accountabilities through appraisal
systems and other mechanisms
12. Omni
HRD Score Card…
This model is based on the assumption
that:
Competent and committed employees are
needed to provide quality products &
services at competitive rates & ways that
enhance customer satisfaction.
13. Omni
HRD Score Card…
Name of the Organisation ABC
HRD HRD HRD Business Overall
System Competence Culture Linkage HRD
Maturity Score Grade Grade Maturity
Grade rating
B* C B* B B*CB*B
• 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
15. Omni
HRD Systems Maturity…
The HRD systems maturity assesses the
extent to which various HRD subsystems
and tools are well designed & are being
implemented.
The systems should be appropriate and relevant to
business goals.
It should focus on current and future needs of the
corporation.
The HRD strategies and systems should flow from
the corporate strategies.
16. Omni
HRD Systems Maturity…
The systems should be well designed and should
have a structural maturity.
They should be implemented well.
The employees should be taking them seriously implemented
well.
The employees should be taking them seriously and follow
meticulously what has been envisaged in each system.
The overheads of implementation should be low.
The subsystems should be well integrated and
should have internal synergy.
They should be adequate and should take care of
the HRD requirements of the organisation.
17. Omni
HRD Systems Maturity…
• The following subsystems are assessed and
depending upon the extent to which they
meet the requirements a score is assigned.
Manpower planning and recruitment
Performance Management Systems
Feedback and Coaching Mechanisms
Training
Career development and Succession planning
18. Omni
HRD Systems Maturity…
Job-rotation
OD Interventions
HR Information systems
Worker Development methods and systems
Potential Appraisal and Development
Other subsystems if any
19. Omni
HRD Competencies in the Corporation…
This dimension indicates the extent to which HRD
competencies are well developed in the organisation.
The HRD Staff
The Top Management
Line managers and Supervisory Staff
Union and Association leaders
Workmen, Operators and Grass root level employees
20. Omni
HRD Competencies in the Corporation…
Each of the 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)
21. Omni
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?
22. Omni
HRD Staff…
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?
23. Omni
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?
24. Omni
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?
25. Omni
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?
26. Omni
HRD Function…
Adequacy of manpower
Appropriateness of the structure
Cost consciousness of staff
Quality consciousness of the HRD staff
Responsiveness of the HRD department to the needs of
employees, Managers, Staff, Workmen, Union Leaders?
Level of Internal customer satisfaction
Internal operational efficiency of the department?
Level of internal synergy among staff?
Are they the first to implement HRD systems? Do they
implement them in an exemplary way?
27. Omni
HRD Competencies in the Corporation…
A HRD Competency maturity core 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
28. Omni
HRD Styles, Culture and Values…
• The extent to which the leadership and managerial
styles are empowering and competence building is
assessed by studying the leadership and
supervisory styles.
• The extent to which the HRD culture and values
are practised and stabilised in the corporation are
measured.
– The HRD culture is culture that promotes Human
potential development.
– It is also a culture that promotes a learning organisation.
29. Omni
Business Relevance of HRD…
• 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 among
employees;
• Quality orientation;
30. Omni
What is involved in Good HRD?...
• Top Management Philosophy and understanding
• Competent HR Staff and Department
• Line Manager Attitudes
• Union and Employee Support
• Use of appropriate Systems
• Periodic Renewal Exercises
• Business relevance of HRD systems and Practices
31. Omni
Methodology of HRD Audit…
Examines long term and short term plans and vision to
assess Competency requirements
Identifies broad competency requirements for future Business
Goals
Examines the existing HRD strategies, systems and practices
and assess their appropriateness to have the required
competencies
Examines the adequacies and inadequacies of HRD
structure, staff and their competencies, line managers and
their attitudes, top management and their support, unions
and their role in competence building for future
Suggests mechanisms for improving all these in the business
context
