Saturday, March 8, 2008

Role of HRD audit in business improvements

HRD audit is cost-effective and can give many insights into a company's affairs. The auditors come for one to two weeks, camp at the organization and give a report in a month's time. They normally make a preliminary presentation at the end of their visit. HRD audit can lead to several benefits:

1. Getting the top management to think in terms of strategic and long-term business plans

It may sound ironical that the HRD audit should begin with such strategic plans, but in some cases it has compelled the top management to think about such plans. while some companies started thinking about them, a few others started sharing these plans with a larger number of persons. Since the employees cannot participate in an HRD audit without some sharing of these plans, the audit has forced the top management to share their plans which has resulted in increased employee involvement. In a few cases a new system of annual planning and sharing of business plans with the management staff have been initiated to enablethem plan their own activities and competency development programmes.

2. Clarifying the role of the HRD department and line managers in HRD

In almost all cases the HRD audit has been found to draw the attention of employees at various levels to the important role of the HRD department�current as well as the future. Enhanced role clarity of HRD department and HRD function and increased understanding of line managers about their HRD role have been the uniform results of HRD audit. The degree may vary from organization to organization depending on other factors.

3. Streamlining of other management practices

Most often HRD audit identifies the strengths and weaknesses in the some of the management systems existing in the organization. It also points out to the absence of systems that can enhance human productivity and utilisation of the existing competency base; for example, the MIS, rules and procedures, etc. which may have an effect on the functioning of the employees. In a few cases anHRD audit has helped the management look at some of these sub-systems and work procedures. Preparation of a manual of delegation of powers, clarification of roles and responsibilities, developing or streamlining the manuals of financial and accounting procedures and systems, strengthening the information systems, and sharing of information are some of the resultant activities in this direction.

4. Better recruitment policies and more professional staff

An HRD audit points out to the competence base required. It sets the stage and gives direction for the competency requirements of employees at various levels and thus provides a base for recruitment policies and procedures. In some companies, it has resulted in strengthening the recruitment policies and procedures. As a result of HRD audit, new recruitment and retention strategies have been worked out.

5. Changes in the styles of top management

One of the objectives of HRD is to also create a learning organization. A learning culture canbe created only if the top managers of the company exhibit an HRD style of management. Such a style requires an empowering attitude, participative style of management, and an ability to convert and use mistakes, conflicts and problems as learning opportunities. Some of the top-level managers in India have been found to block employee motivation and learning through coercive, autocratic and even paternalistic styles of management. In such cases the HRD audit has pointed out the difficulties in developing and preparing the employees for the future. This has helped to provide subtle feedback to the top management and to initiate a change process.

6. Improvements in HRD systems

The HRD audit has helped most of the organisations in taking stock of the effectiveness of their HRD systems and in designing or re-designing the HRD systems. The most frequently changed or renewed systems include performance appraisal, induction training, job-rotation, career planning and promotion policies, mentoring,communication, and training.

7. More planning and more cost-effective training

HRD audits have been found to raise questions about the returns on training. One of the aspects emphasised in the HRD audit is to calculate the investments made in training and ask questions about he returns. The process of identifying training needs and utilisation of training inputs and learning for organisation growth and development are assessed. As direct investments are made in training, any cost-benefit analysis draws the attention of the top management and HRD managers to review the training function with relative ease. One organization strengthened its training function by introducing a new system of post-training follow-up and dissemination of knowledge to others through seminars and action plans. many organisations have developed training policies and systematised their training function. Assessment of training needs has also become more scientific in these organisations.

8. Increased focus on humanresources and human competencies

One of the results of an HRD audit is to focus on new knowledge, attitudes and skills required by the employees in the organization. Comments are made about the technical, managerial, human and conceptual competencies of the staff at various levels. This differentiation has been found to help organisations identify and focus sharply on the competency requirements and gaps. The audit establishes a system of role clarity and fixing of accountabilities. This can take place through separate role clarity exercises or through the development of an appropriate performance appraisal system. In any case the attention of the organization gets focussed on developing the competency base of the organization. More sensitivities are developed to the missing aspects of competencies. For example, one organization has been found to neglect human relations competencies of their staff, resulting in a large number of human Problems leading to wastage of time. Some of these got streamlinedand various HRD policies also got strengthened.

9. Strengthening accountabilities through appraisal systems and other mechanisms

An HRD audit can give significant inputs about the existing state of the accountabilities of employees. This gets assessed through performance appraisals as well as through the work culture and other cultural dimensions. A number of organisations have introduced systems of performance planning, sharing of expectations and documenting the accountabilities of staff.

10. TQM interventions

Quality improvements and establishing TQM systems require a high degree of employee involvement. In a number of cases the HRD audit has pointed out to the linkages between TQM and other developmental programmes and helped in strengthening the same. Due to improvements in the training system, group work and appraisal systems, TQM programmes have also improved. In a few organisations the performance appraisals have been so changed as to integrate quality aspects and internalcustomer satisfaction dimensionsinto the appraisal system. Thus, an HRD audit leads to the strengthening of the quality systems.

ORGANIZATION DEVELOPMENT -- INTERVENTIONS & STRATEGIES

Edited by S Ramnarayan, T V Rao and Kuldeep Singh
Published by Response Books
Price: 450

Monday, February 4, 2008

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