User talk:Constantineofrome

Hello All,

I am MBA(HR) Student. I need your help for details of Manpower Planning and Employee Relations. If you have any good books related to HR(PDF Format)or send me the link where i received the books, Kindly send me on my email id - constantineofrome@gmail.com. This is very helpful for me.

Thanks in advance.

Basic Concept of HR Audit
What is a Human Resources audit? Why do one? How do we do it and what do we do after it is done? This article will discuss the basic concepts and help you get organized to take on this important and beneficial project. In the last two decades a large number of corporations have established Human Resources Development Departments, introduced new systems of HRD, made structural changes in terms of differentiating the HRD function and integrating it with HR function. A good number of CEOs saw a hope in HRD for most of their problems, issues and challenges. It is estimated that on an average establishing a new HRD department with a small size of about five professionally trained staff costs about two million rupees per annum in terms of salaries, another ten million in terms of budget (like training budget, travel etc. and probably about five to ten times the amount in terms of managerial time costs and opportunity costs. This is because HR systems are people intensive and require a lot of managerial time. In spite of these investments in a number of corporations, there is a widespread feeling that HRD has not lived up to the expectations of either the top management or the line managers. There are also examples of corporations where HRD has taken a driver’s seat and has given a lot of benefits. In today’s competitive world, “people” or employees can give a good degree of competitive advantage to the company. To get the best out of HR, there should be a good alignment of the function, its strategies, structure, systems, and styles with business and its goals (financial, customer etc. parameters). It should be aligned both with the short term goals and the long term strategies. If it is not aligned, HR could become a big liability to corporations and they will have no alternative but to close the HR departments. Besides this alignment, the skills and styles of HR staff, the line managers and the top management should synergize with the HR goals and strategies. HRD audit is an attempt to assess these alignments and ensure the same. HRD audit is a comprehensive evaluation of the current human resource development strategies, structure, systems, styles and skills in the context of the short and long-term business plans of a company. HRD audit attempts to find out the future HRD needs of the company after assessing the current HRD activities and inputs available. Objectives: •	Determine the scope of your internal HR audit •	Analyze your HR procedures to ensure that they are fully documented to avoid incurring penalties and fines from the Department of Labour •	Establish your employees’ level of awareness of your company HR policies •	Review the company HR procedures at induction to ensure your new staff are informed and to validate your HR practices •	Understand the recently released HR Draft Code of Good Practice and other Codes to ensure you are properly updated and conform to the requirements HRD Audit is Comprehensive HRD audit starts with an understanding of the future business plans and corporate strategies. While HRD audit can be done even in organisations that lack well formulated future plans and strategies, it is most effective as a tool when the organization already has such long-term plans. The HRD audit starts with attempts to answer the following questions: Where does the company want to be ten years from now, three years from now and one year from now? (Answers to this question ensures business linkages part of the HRD score card) Answer to this question needs to be provided by the top level management. If there are long-term plan documents these are reviewed. On the basis of the answers to these questions the consultants finalize the subsequent audit strategies and methodology. The consultants make an attempt to identify the nature of core competencies the organization needs to develop in order to achieve its long-term five to ten year plans. The consultants also attempt to identify skills required to be developed by the company at various levels (example, workmen level, supervisors level, junior management level, middle management level, top management level, etc.) and with respect to various functions (finance, production, marketing, etc.). Listing all these core competencies and skills for the future is the starting point of HRD audit. The HRD audit normally attempts to assess the existing skills and the competency gaps in order to achieve the long term business goals and short term results of the company. The competencies may deal with technical aspects, managerial aspects, people related or conceptual. They may cover knowledge base, attitudes, values and skills. What is the current skill base of employees in the company in relation to various roles and role requirements? (answers to this question contribute to the competency score on the score card) Basic Concepts behind HR Audit

What is a Human Resources audit? It is simple to define a Human Resources audit. The audit is a tool that we use to:

i)   measure an employer’s compliance with its legal obligations in managing its workforce ii)    chart any corrective actions that might be needed.

Fortunately, it is relatively easy to perform an audit, although it does require time and effort. We will discuss that a little later. Why do we recommend that employers periodically audit their employment relations practices? One answer is as obvious as the latest headline from almost any area of the country: “Employee sues and wins $$$$ judgment against Employer.” The audit helps us to eliminate many simple but common errors that employers, especially new businesses, often make. The audit also serves to educate HR professionals on the latest trends and best practices used by their peers. The HR audit can give those responsible for employee relations some reassurance that legal risks have been managed and minimized, thus freeing them to focus on more creative aspects of their jobs that can add value to the employer’s bottom line.

There are also other benefits in doing an HR audit. If your company is in the market for financing, investors will want to know that you have done all you can to protect the company from unnecessary lawsuits. The results of an HR audit can be presented to investors for their due diligence review. Similarly, if an employer is interested in obtaining Employment Practices Liability Insurance, the insurance carrier will assess the degree of existing risk by asking many of the same questions one would ask in an HR audit. Typically, an insurance company will not issue a policy unless the employer can demonstrate

(i) substantial compliance with applicable employment laws and (ii) the existence of appropriate employment procedures and policies.

The concept of HR audit has emerged from the practice of yearly finance and accounting audit, which is mandatory for every company, to be done by external statutory auditors. This audit serves as an examination on a sample basis of practices and systems for identifying problems and ensuring that sound accounting principles are followed. Similarly, an HR audit serves as a means through which an organization can measure the health of its human resource function. Organisations undertake HR audits for many reasons: •	To ensure effective utilization of human resources. •	To review compliance with tons of laws and regulations. •	To instill a sense of confidence in the human resource department that it is well-managed and prepared to meet potential challenges and opportunities. •	To maintain or enhance the organization’s reputation in a community. An audit is a systematic process, which examines the important aspects of the function and its management, and is a means to identify strengths, weaknesses and areas where rectification may be warranted. An audit is done on sampling basis. And in sampling, not every instance or situation can be examined. An HR audit can be used by an organization for multiple purposes. Some of the more common reasons are: •	To identify and address HR-related problems. •	To seek out HR-related opportunities. •	To conduct due diligence for mergers and acquisitions. •	To support initial public offerings. How an audit is conducted is very often determined by its intended use. For instance, the type of audit used to ascertain HR practices may be significantly different from the type of audit used to support an initial public offering. Although the areas examined may be similar, the process used and the depth of inquiry will vary from the intended outcome.

the intended outcome. The audit process The HR audit process is conducted in different phases. Each phase is designed to build upon the preceding phase so that the organization will have a very strong overview of the health of the HR function, at the conclusion of the audit. These phases include: Pre-Audit Information: This phase involves the acquiring and review of relevant HR manuals, handbooks, forms, reports and other information. A pre-audit information request is forwarded to the client who compiles the necessary information for review by auditors. Pre-Audit Self-Assessment: In order to maximize the time spent during subsequent portions of the audit, a pre-audit self-assessment form, if sent to the client can be of use. The self-administered yes/no questionnaire asks a number of questions about current HR policies and practices. The completion of this self-administered questionnaire allows auditors to identify key areas for focus during the HR audit. On-site Review: This phase involves an on-site visit at the client’s facility interviewing staff regarding HR policies and practices. A very in-depth HR audit checklist is completed. Records Review: During the on-site visit, a separate review is conducted of HR records and postings. Employee personnel files are randomly examined as well as compensation, employee claims, disciplinary actions; grievances and other relevant HR related information are checked. Audit Report: The information gathered is used to develop an HR audit report. The audit report categorizes action needs into four separate areas. The areas that are urgent and important (UI), not urgent needs but important (NUI), not urgent but not important needs (NNI)), and important opportunities needs (IO). As a result of this scheme of classification, managements can prioritize their steps. The critical areas The comprehensive HR audit covers all areas of HR management like recruitment practices, training and development, compensation and benefits, employee and union relations, health, safety and security, miscellaneous HR policies and practices-welfare, strategic HR issues, manpower planning/budgeting. Besides classifying needs in each of the above areas, the HR audit also cites relevant laws, cases and research to support the recommendations. Preparation for an audit Auditor engagement: If external firm carrying out the audit, it is preferable to set terms in writing defining and agreeing on scope .If using internal resource, it is better to appoint them formally with clarity on scope and select persons who are non political or those who are not high on hierarchy. Also, if internal persons are auditing there must be training in auditing. Documents, manuals, handbooks, forms and reports auditor must have access to relevant information contained in employee files and other confidential documents of the organization. Auditors must be given unrestricted access to records, once they sign agreement for confidentiality. Data gathering: Completion of a self-assessment questionnaire significantly expedites the audit process and allows for better audit planning. On-site access: The on-site portion of the audit is the most critical.