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HR Audit Set 1

HR planning involves systematically analyzing an organization's HR needs to ensure the correct number of employees with the necessary skills are available when required. It helps address questions like how many staff the organization has, what their skills are, how to best utilize resources, and how to retain employees. HR planning forms an important part of management information systems and strategic human resource management. It assists organizations to manage staff strategically and direct the actions of the HR department.

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0% found this document useful (0 votes)
231 views11 pages

HR Audit Set 1

HR planning involves systematically analyzing an organization's HR needs to ensure the correct number of employees with the necessary skills are available when required. It helps address questions like how many staff the organization has, what their skills are, how to best utilize resources, and how to retain employees. HR planning forms an important part of management information systems and strategic human resource management. It assists organizations to manage staff strategically and direct the actions of the HR department.

Uploaded by

Zayed Patel
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Q.1 Explain Objectives of HR Planning.

INTRODUCTION

Planning is very important to our everyday activities. Several definitions have been
given by different writers what planning is all about and its importance to achieving our
objectives. It is amazing that this important part of HR is mostly ignored in HR in most
organizations because those at the top do not know the value of HR planning.
Organizations that do not plan for the future have less opportunities to survive the
competition ahead. This article will discuss the importance of HR planning; the six steps
of HR planning that is : Forecasting; inventory, audit, HR Resource Plan; Actioning of
Plan; Monitoring and Control.

Definition of HR Planning

Quoting Mondy et (1996) they define it as a systematic analysis of HR needs in order to


ensure that correct number of employees with the necessary skills are available when
they are required.

When we prepare our planning programme, Practitioners should bear in mind that their
staff members have their objective they need to achieve. This is the reason why
employees seek employment. Neglecting these needs would result in poor motivation
that may lead to unnecessary poor performance and even Industrial actions.

Importance of Planning

Planning is not as easy as one might think because it requires a concerted effort to
come out with a programme that would easy your work. Commencing is complicated,
but once you start and finish it you have a smile because everything moves smoothly.

Planning is a process that have to be commenced form somewhere and completed for a
purpose. It involves gathering information that would enable managers and supervisors
make sound decisions. The information obtained is also utilized to make better actions
for achieving the objectives of the Organization. There are many factors that you have
to look into when deciding for an HR Planning programme.

HR Planning involves gathering of information, making objectives, and making decisions


to enable the organization achieve its objectives. Surprisingly, this aspect of HR is one
of the most neglected in the HR field. When HR Planning is applied properly in the field
of HR Management, it would assist to address the following questions:

1. How many staff does the Organization have?


2. What type of employees as far as skills and abilities does the Company
have?
3. How should the Organization best utilize the available resources?
4. How can the Company keep its employees?

HR planning makes the organization move and succeed in the 21 st Century that we are
in. Human Resources Practitioners who prepare the HR Planning programme would
assist the Organization to manage its staff strategically. The programme assist to direct
the actions of HR department.

The programme does not assist the Organization only, but it will also facilitate the
career planning of the employees and assist them to achieve the objectives as well.
This augment motivation and the Organization would become a good place to work. HR
Planning forms an important part of Management information system.

HR have an enormous task keeping pace with the all the changes and ensuring that the
right people are available to the Organization at the right time. It is changes to the
composition of the workforce that force managers to pay attention to HR planning. The
changes in composition of workforce not only influence the appointment of staff, but
also the methods of selection, training, compensation and motivation. It becomes very
critical when Organizations merge, plants are relocated, and activities are scaled down
due to financial problems.

Q.2 Write a note on Major Human Resource Development Strategies.

Human resource development (HRD) refers to an approach for managing the human
resources of an organization that emphasizes the importance of developing the basic
capabilities to the people employed by the organization, working as individuals as well
as in groups. It can be contrasted with the alternate approach that is limited to selecting
the people with required capabilities and motivating them so that they work and use
their capabilities in the best interest of the company.

HRD strategy also requires use of long term manpower planning function. This is
essential to identify the future requirements of manpower quality and quantity, and to
take manpower development action to meet such requirements. This also implies much
greater reliance on internal promotion of people to fill vacancies at higher levels in the
organization, rather than through external recruitment.

PERFORMANCE DEVELOPMENT & COACHING

HRD Strategies has long held the belief that performance management, as we know it
from a traditional perspective, has done little to improve organizational effectiveness.
Therefore, HRD looks at things from a Performance Development model. This model
provides focus and growth, perpetuates continuous improvement, and develops
competencies from a behavioral, technical, and business viewpoint, thus bringing
professionalism and accountability to the organization. HRD Strategies provides
individual assessments of strengths and developmental opportunities to develop and
implement strategies for optimal organizational and leadership effectiveness.

EMPLOYEE & ORGANIZATIONAL SURVEYS

The administration of an employee and organizational survey is a quick and easy way to
gather information regarding the importance of staff issues, and provide the focus
required to motivate change for organizational effectiveness. HRD Strategies provides
a variety of standardized and client-specific employee and organizational surveys
designed to provide a snapshot view of current issues within the organization

TALENT MANAGEMENT & RETENTION

The best selection process to ensure success for the future is one that measures
relevant technical and behavioral competencies as defined by a comprehensive job
analysis study. These competencies serve as criteria against which job applicants are
evaluated and later trained. HRD's selection processes will reduce the likelihood of
turnover, therefore retaining valuable employees.

 Strategic Partnering for Retained Searches


 Turnover Reduction Assessment
 Selection/Behavioral Interview Design
 Assessment Centers
 Basic Skills Testing
 Personality Testing
 Technical Skills Interviewing and Testing

WORK TEAM SYSTEMS & TEAM BUILDING

It is essential that the proper philosophical base be established to ensure that the intent
of the employee involvement concept becomes reality. In doing so, organizations will
require that all team members learn specific skills related to working together effectively
and acquiring the necessary skill sets to ensure process optimization. HRD's
Organizational Effectiveness and Team Building Processes enable groups to remove
barriers to goal attainment.

 High Performance Work Team Systems


 Organizational Effectiveness & Team Building
 Team Management Training

CORPORATE UNIVERSITIES & LEARNING MANAGEMENT SYSTEMS

The Corporate University is a learning laboratory for knowledge management,


performance improvement, and people development within organizations. It is the
driving force for organizational learning while integrating individuals, teams, and the
organization. HRD Strategies designs client specific corporate universities
administrable via a classroom or virtual classroom setting.

 Corporate University System Design


 Curriculum Development
 Technical Training & Development Systems
 Learning Management Systems Administration

Q.3 Discuss the approaches of HR Audit.

This first concept of HR auditing is based on a legal outlook. According to Antona [1993,
p. 2], the audit of performance or conformity consists of "making an inventory of the
social situation of the company, considering the labor law norms and regularly verifying
the company's compliance with the applicable regulations." Thus, this concept is
centered on the verification that the current labor laws are being fulfilled. The audit
should verify if the firm's policies, practices, and documents regarding employee hiring,
retention, discipline, termination, and post-employment are both fair and legal [Higgins,
1997]. These practices and policies must: prohibit discrimination by offering equal
employment opportunities; protect the employment seeker from being discriminated
against on the basis of age; carry out minimum wages; and contain provisions regarding
mental disabilities and reasonable accommodations for disabled workers.

According to Nevado [1998, p. 49], the basic functions of the audit of conformity or of
performance as an element of HR auditing are threefold. The first function is examining
to see if the firm is fulfilling all its administrative social obligations, as well as those
relative to the collective rights of its personnel. The second is to study the relationship
between the employees and the firm based on the legal statutes. The final function is
verifying if the firm fulfills its financial obligations (for example, social security
payments), as well as its informative ones.

Concern about labor risks has created a function within HRM with the purpose of
altering working conditions by identifying the risks that could stem from them and
implementing necessary preventive measures. Such preventive activity could fit
perfectly into the legal approach of HR, although the effort that the company can make
in this sense can go beyond the application of the existing risk prevention laws. The
requirement for labor security and hygiene is a part of the search for quality of life in the
workplace, which is becoming increasingly demanded from companies.

Focus of the Function Audit

The function audit centers on "observing if the procedures applied are the adequate
ones and if they function correctly. That is, checking to see if the relationship between
objectives and procedures is a satisfactory one and if this has been achieved in the
most cost effective manner" [Nevado, 1998, p. 50].

The function of this level of the HR audit is to study and analyze each one of the specific
areas of HRM. The analysis should center on the planned measures, the method of
implementation, and the results obtained. In order to carry this out, the areas that are to
be studied must first be identified. Afterwards, a list of the indicators that will serve to
analyze each of them must be made. These indicators can be either quantitatively
(absolute numbers or ratios) or qualitatively derived from the responses given by the
people involved (management, employees, or external experts). A list of the indicators
corresponding to the different areas of the HR function could contain some of the
following.

1) Description of the Company's Staff

The complete staff can be described by: hierarchic levels, years of service, qualification,
sex, and nationality; the number of permanent and temporary employees, interns, and
physically or mentally challenged employees; and indexes of personnel rotation and
absenteeism.

2) Job Analysis

Job analysis can include: the number of described posts and occupants per post; the
degree to which the job description cards have been updated; the degree of detail in the
job description cards; and the methods used to analyze and describe the jobs.

3) HR Planning

Planning includes the methods employed to plan personnel needs, the measures
adopted to cover future personnel needs, and the temporary planning horizon.

4) Recruiting and Personnel Selection

This includes: the number of days needed to fill a vacant post; the number of
applications received by work place categories; the average amount of days between
the reception of the application and the final answer; the average cost of recruitment
and selection per job post; the degree to which internal and external sources of
recruitment are used; the average number of candidates that do not pass the selective
tests; a study of the reliability and validity of the selection tests; and the degree to which
the recruiting efforts fit the company's business plan.
5) Training

The training indicators are: the procedures followed and the frequency with which
personnel training needs are analyzed; the criteria followed to define the content of the
training programs; the evaluation criteria of the efficacy of the training programs; the
percentage of the HR budget dedicated to training; the average number of hours of
training per employee; and the percentage of employees that participate in training
programs by work place categories.

Q.4 Explain preliminary steps that are to be considered before conducting any
audit

PRELIMINARY STEPS
There are two issues that must be considered before implementing an employment law
audit:-
􀂾 When should the audit take place? And,
􀂾 Who should conduct the audit?
Since the Municipality already utilizes a variety of employment-related practices and
procedures, the audit should be conducted as soon as possible, if you have never
audited such procedures before. After the initial audit, follow-up audits should be
conducted annually. When putting together an audit team, include either in-house or
outside legal counsel, a representative from Human Resources, and any other
individuals needed to represent a cross-section of staff functions. All team members
should be warned ahead of time regarding the handling of confidential information.

1.2 GOALS OF THE AUDIT.


The review process should provide answers to several important questions regarding
the
application of Municipality’s policies. The audit’s goals are to determine whether your
policies are being applied consistently, whether they are the norm for your industry and
geographic location, and whether they are consistently communicated to all employees.
The audit should also provide insight as to which individuals are responsible for the
implementation and enforcement of policies. Finally, it should distinguish between
policies that are applicable to nonunion employees, and the terms and conditions of
employment for employees who are represented by a labour organization.
5
1.3 AREAS TO AUDIT.
Most lawsuits can be traced to four distinct stages of the employment relationship:
hiring,
employee evaluation, employee discipline or termination, and post-employment.
Therefore, your self-audit should target these areas. Sample audit questions from each
of these four areas appear on the following pages. In addition to these four areas, your
employment audit should also target state regulations. Here are a few examples.
1. Review all your labour contract provisions for their impact on employees with
disabilities.
2. Review all job specifications for hiring and placement of employees.
3. Review all employment applications for illegal questions dealing with employees
4. Review and prepare all current job descriptions setting forth essential job
elements.
5. Review current facilities to ensure accessibility for individuals with disabilities.
6. Review all pre- employment tests.
7. Review all company or organization policies and procedures, in line with any
statutory regulations or Acts, any applicable code of good practice in line with the
Labour Relations Act 66 of 95 as amended, the Basic Conditions of Employment
8. Act and the Employment Equity Act.

Q.5 Write a note on Audit of HR Climate.

AUDIT OF HR CLIMATE

HRM Climate has impact on Motivation, Morale and Job Satisfaction. Quality of
Climate can be measured by examining: 1.Employee Turnover, 2.Absenteeism,
3.Safety Records  4. Attitude Surveys

 
Employee Turnover:

ETO Implies the process of Employee Leaving & Joining  - deaths, transfers,
retirements, resignations. High ET incurs increased costs – Recruitment, Selection, Trg,
Disruption of Prodn, QC-Problems, and Team & Morale Building. Certain % turnover is
Unavoidable. Avoidable ETO causes Concern to HRM, gives excellent measure of HR
Climate, as it can be reduced. Specific Actions can Minimize ETO - Better Hiring
Practices, Orientation Trg, Working Conditions, Remuneration & Benefits, Advancement
Opportunities. Quality ETO Better Than Quantity ETO

ABSENTEEISM

 Refers to Failure on part of Employee to report for work. (Unauthorized Absence). It


costs money and reflect dissatisfaction with Orgn. Unavoidable Absence sanctioned.
Mgr must step in to remove causes of Avoidable Absenteeism – night shifts, earning
extra income, indebtness, and lack of job security, job dissatisfaction, and unfriendly
supervision. 

ACCIDENTS

Organizations keep records. Accidents cost money and also reflect prevailing Org-
climate. Managements must have Safety Plan, implement, Evaluate its Effectiveness.

 ATTITUDE SURVEYS

Are Most Powerful Indicators of Org-climate. Attitudes determine employee’s feeling


towards the Orgn, supervisor, peer & activities. ASs  conducted thro’ face-to-face
interviews or anonymous questionnaires. Resulting Info – an invaluable Insight What
They Feel & Think. Useful to address Business Problems linked to Productivity,
Turnover, Absenteeism, Tardiness, Work-Group Effectiveness & IR. 

AUDIT OF CORPORATE STRATEGY

HR Professionals do not set CS, but determine its success. CS gains competitive
advantage. Assessing Orgn  Internal Strengths & Weaknesses and its External
strengths & opportunities enable Mgt gain advantage. Coy may adopt any Approach,
HRM always affected. Understanding thro Audit, CS strongly influences HR planning,
staffing, remuneration, IRs & other activities.

AUDIT AND HUMAN RESOURCE RESEARCH

Auditors highly rely on HRR Data. Research - systematic goal-oriented investigations of


facts establishing relationship between two/ more phenomenon – lead increased
understanding of & improvement in HR Practices. HRR major Topics:

Wage Surveys, Effectiveness of various recruitment sources, Effectiveness of Trg


Efforts, supervisor’s Effectiveness Survey, Job Satisfaction Survey, Employee needs
Survey, Attitude towards Reward Sys- Survey, High Accident Frequency Areas.
Q.6 Write a note on planning questions for HR Audit. Prepare 5 questions for
auditing the process of recruitment.

With human resources audit becoming a mandatory annual undertaking in most


organizations, there is no denying the vital role that the HR audit questionnaire plays. 
The HR audit is conducted for purposes of gauging the overall well-being of the human
resource (workforce) in an organization. Through data compiled from such audits, the
HR department is then able to figure any lapses or gaps that may exist in the workforce.
The audit is also vital in comparing set systems, policies and targets with
implementation. In addition, the HR department is able to determine if the organization
is sufficiently staffed, whether the HR resources are maximally utilized and whether the
workforce complies with set industry laws. Example:

Employee Name______________ Date of Employment_______ Dept._________

Q1. How were you recruited?

?Through a series of interviews

?Through a panel interview

?Through a written interview

?A combination of written and direct interviews

?I was just called for the job without any interviews

Q2. Have you ever been involved in training and development activities since joining this
organization? ___________

If yes, state when__________

If yes, how did you learn about them?

?By reading the HR manual  ?Hearing from my work colleagues

Q4. Are you a member of any employee or trade union? _______

If not, why? ____________________________________

Q5. Do you have insurance cover?

Q6. Do you understand fully this organization’s policy regarding security and personal safety?
________

Q7. For how long have you been working in the same position? _____________

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