October 26, 2018

MU0013 [Human Resource Audit] Set1 Q1

Q1.   What are the components of human resource development audit? 

Organisation and administration of human resource
Information management through documentation
Computerized Human Resource Information System

Organisation and administration of human resource
In this you should consider following points:
• The way in which the organization’s HR office is organized 
• The operating standards and internal controls followed in the business unit.
• The ways of administrating retention rights, including notices, matrix, use of separation incentives, and outplacement practices.
• The procedure of making HR staff up to date with the HR field.
• The techniques used for communicating with employees and appointing authorities in department.

Information management through documentation
You must be aware that information is managed in the business unit through documentation of various records of the employees and factors concerned to them. So following are some important considerations in this: 
• The person with whom the personnel files currently held.
• The documents are held in personnel files.
• The ways to document following in your organization :
-Hiring: Application, interviewing, and reference checks 
-Compensation and benefits 
-Leave and overtime information 
-Transitions 
-Training 
-Discipline 
-Work history 
-Work Assignments 
-Significant accomplishments 
-Emergency contact information 
-Performance evaluation and performance management 

Termination 
• The duration of holding the files.
• The place at which they are stored after employees leave.
• It should be seen that whether there is training of managers and employees about personnel files.
• The policies and procedures for accessing files. 
• The person responsible for filling the requests for information when they are made to your organization.
• The content of employee, payroll, medical, and position files. 
• The various internal controls to ensure accuracy of information and control access. 
• The process for purging records.
• The way of maintaining employee timesheets. 
• The place at which various notices are posted.
• The methods to ensure timely and accurate reporting of information to the top management.

Computerized Human Resource Information System
In this you need to check the System requirements, features and capabilities. Consider the following:
• Whether HRIS system is being used in the organisation or not.
• The type of HRIS system used.
• To judge that system is based on same platform as rest of the organization.
• The formal training program for employees and managers to access the HR information through the system. 
• Whether the HRIS system is comprehensive or not. 
• Are discreet pieces of information captured about employees and their jobs: 
-Personnel data 
-Recruitment/selection data 
-Training and development data 
-Compensation data 
-Performance appraisal/promo ability data 
-Benefit Plan data 
-Health/safety/accident data
• The ways of translating the information into usable forms.
• The data security issues.
• The individuals who are able to update and change information controlled to enhance accuracy. 
• The hardware is used to operate the system.
• The local area networks that is fully compatible with the system. 
• The estimated processing time to generate a standard 10-field employee roster listing, including age, annual salary, and years of service, for 500 employee records.

For understanding the HRD Audit as conducted in different organizations, you should know well the different components of HRD Audit. Look at Figure 2.1 to identify the components of HRD Audit.

Figure: Components of HRD Audit

The HRD audit is divided into three components:
• Organisation and Administration of Human Resource
• Information Management through Documentation
• Computerized HRIS

The various functions in HRD are carried out through its systems and sub-systems. HRD has five major systems and each of the systems has sub systems which are given below:

1. Career system: This is the most important HRD system. As an HRD system, career system ensures attraction and retention of human resources through the following sub-systems.
-Manpower planning
-Recruitment
-Career planning
-Succession planning
-Retention

2. Work system: It ensures that the human resources are not over or under utilized but is utilized in the best possible way to achieve organizational goals. Following are the sub-systems of the work planning system:
-Role analysis
-Role efficacy
-Performance plan
-Performance feedback and guidance
-Performance appraisal
-Promotion
-Job rotation
-Reward

3. Development system: The business environment is ever changing and very dynamic. So the human resources within the organization have to change accordingly if the organization wants to be in business. The development system ensures that the retained (career system) and utilized (work system) human resources are also continuously developed so that they are adaptable to the changing scenario. Following are some of the developmental sub- systems of HRD that contributes and ensures that human resources in the organization are continuously developed.

-Induction
-Training
-Job enrichment
-Self-learning mechanisms
-Potential appraisal
-Succession development
-Counseling
-Mentor system

4. Self-renewal system: It is important not only to develop individuals and teams in the organizations but occasionally there is a need to renew the organization itself. Following are some of the sub-systems that can be utilized to renew the organization:
-Survey
-Action research
-Organizational development interventions
-Organizational retreats

5. Culture system: To build up a desired culture is very important in today’s changing business scenario. It is the culture that will give a sense of direction, purpose, togetherness, and teamwork. You should note that whether an organization wants it or not along with the time common ways of doing things (culture) will emerge. Some of the culture building sub-systems are given below:
-Vision, mission and goal
-Values
-Communication
-Get-togethers and celebrations
-Task forces
-Small Groups

The Box 2.1 shows various commonly used HRD systems used in big Multi National Companies.

Box 2.1: HRD Systems
The commonly used HRM systems are as follows:
• Human Resources Information System (HRIS)
• Personnel Action Tracking System (PATS)
• Financial Disclosure System (FINDIS)
• Modular Ethics Training Tracking System (METTS)
• Office of Workers Compensation Case Tracking System (OWCP)
• Leave Transfer System
• Research Position Evaluation System (RPES)
• Awards Tracking System
• OPF Tracking System
• Electronic Performance Management System (e-PMS)

Human resouree management (HRM) has experienced a strong evolution. In order to provide useful information to managers, it is necessary to evaluate the results generated by the design and implementation of personnel policies. This is the goal of the HR audit that includes two different analyses and valuations: the HR policies and their level of fit with the strategy of the firm, and the characteristics of human capital. Several criteria have been used to assess different HR policies. Nevertheless, the measurement of the value that human capital brings to the firm is a very complex topic. Consequently, different models are being presented that aim to properly solve this challenge. This paper will analyze the HR function from two perspectives: the evaluation of the implemented policies and the quality of human capital in relation to real competencies, and the capability to learn and develop new skills. (JEL M10)

Conceptualization of HR Auditing
Auditing has evolved, becoming increasingly specific, until the term functional audit has emerged. The objective of a functional audit is to diagnose, analyze, control, and advise within the boundaries of each functional area of the company.

The HR audit is a type of functional audit. Thus, as a first approach, one could say that HR auditing consists of diagnosing, analyzing, evaluating, and assessing future lines of action within the framework of HRM.

HR auditing is a basic tool for the management of a company. Its objective is not only the control and quantifying of results, but also the adoption of a wider perspective that will aid in defining future lines of action in the HRM field. Thus, HR auditing must perform two basic functions [Cantera, 1995]. First, it must be a management information system whose feedback provides information about the situation in order to facilitate the development of managing processes or the development of HR. On the other hand, it must be a way of controlling and evaluating the policies that are being applied, as well as the established processes.

It can be understood that in order to secure the operative efficiency and user or client satisfaction, an appraisal of the results of the HR function is necessary. According to this approach, the results obtained can be valued from certain HR policies (an external type of measurement), or from the results of the policies or the policies themselves. The results can be valued through their cost (a measurement internal to the function) [Walker, 1998]. This would lead the company to consider some basic questions. Are adequate HR policies being developed? Are the desired results being obtained? To what extent do they add value to the company?

The purpose of this work is to offer a few guidelines for the appraisal of the HR function, which is in itself the basis for the auditing process. The objective is to set conceptual limits for its content and to present the different approaches with which the HR audit can be presented.

No comments:

Post a Comment

Labels

1st Sem (common) Subjects (150) 1st Sem BBA (10) 2nd Sem (common) Subjects (70) 2nd Sem BBA (10) 3rd Sem Banking Management (30) 3rd Sem BBA (8) 3rd Sem core/common subjects (37) 3rd Sem Environmental Management (2) 3rd Sem Event Management (8) 3rd Sem Finance Management (113) 3rd Sem HEALTH SERVICE MANAGEMENT (HSM/HCS) (65) 3rd Sem Human Resource Management (98) 3rd Sem Information Systems Management (8) 3rd Sem International Business (34) 3rd Sem Marketing Management (129) 3rd Sem Operations Management (8) 3rd Sem Project Management (103) 3rd Sem Retail Operations Management (8) 3rd Sem Supply Chain Management (SCM) (16) 3rd Sem Total Quality Management (TQM) (16) 4th Sem Banking Management (38) 4th Sem core/common subjects (65) 4th Sem Event Management (8) 4th Sem Finance Management (8) 4th Sem HEALTH SERVICE MANAGEMENT (HSM/HCS) (21) 4th Sem Human Resource Management (104) 4th Sem Information Systems Management (8) 4th Sem International Business (12) 4th Sem Marketing Management (8) 4th Sem Operations Management (37) 4th Sem Project Management (56) 4th Sem Retail Operations Management (8) 4th Sem Supply Chain Management (SCM) (8) 4th Sem Total Quality Management (TQM) (8) BBA101 - Communication Skills (2) BBA101 Set1 (1) BBA101 Set2 (1) BBA102 - Organization Behaviour (2) BBA102 Set1 (1) BBA102 Set2 (1) BBA103 - Business Environment (2) BBA103 Set1 (1) BBA103 Set2 (1) BBA104 - Quantitative Techniques in Business (2) BBA104 Set1 (1) BBA104 Set2 (1) BBA105 - Computer Fundamentals (2) BBA105 Set1 (1) BBA105 Set2 (1) BBA201 - Research Methods (2) BBA201 Set1 (1) BBA201 Set2 (1) BBA202 - Business Strategy (2) BBA202 Set1 (1) BBA202 Set2 (1) BBA203 - Financial Accounting (2) BBA203 Set1 (1) BBA203 Set2 (1) BBA204 - Marketing Management (2) BBA204 Set1 (1) BBA204 Set2 (1) BBA205 - Management Information Systems (2) BBA205 Set1 (1) BBA205 Set2 (1) BBA301 - Legal and Regulatory Framework (2) BBA301 Set1 (1) BBA301 Set2 (1) BBA302 - Human Resource Management (2) BBA302 Set1 (1) BBA302 Set2 (1) BBA303 - Quality Management (2) BBA303 Set1 (1) BBA303 Set2 (1) BBA304 - Advertising and sales (2) BBA304 Set1 (1) BBA304 Set2 (1) Differences between Managers and Leaders (1) EM0001 - Fundamentals of Environment (2) EM0001 Set1 (1) EM0001 Set2 (1) ET0001 - Human resource management for events (2) ET0001 Set1 (1) ET0001 Set2 (1) ET0002 - Corporate Event Project Management (2) ET0002 Set1 (1) ET0002 Set2 (1) ET0003 - Event marketing and management (2) ET0003 Set1 (1) ET0003 Set2 (1) ET0004 - Event Finance Management (2) ET0004 Set1 (1) ET0004 Set2 (1) ET0006 - Event Risk Management (2) ET0006 Set1 (1) ET0006 Set2 (1) ET0007 - Entrepreneurship (2) ET0007 Set1 (1) ET0007 Set2 (1) ET0008 - Special Events (2) ET0008 Set1 (1) ET0008 Set2 (1) ET0009 - Event Management for Tourism (2) ET0009 Set1 (1) ET0009 Set2 (1) IB0010 - International Financial Management (9) IB0010 Set1 (7) IB0010 Set2 (2) IB0011 - International Marketing (9) IB0011 Set1 (2) IB0011 Set2 (7) IB0012 - Management of Multinational Corporations (8) IB0012 Set1 (7) IB0012 Set2 (1) IB0013 - Export-Import Management (8) IB0013 Set1 (7) IB0013 Set2 (1) IB0015 - Foreign Trade of India (6) IB0015 Set1 (3) IB0015 Set2 (3) IB0016 - International Logistics and Distribution Management (2) IB0016 Set1 (1) IB0016 Set2 (1) IB0017 - International Business Environment and International Law (2) IB0017 Set1 (1) IB0017 Set2 (1) IB0018 - Export Import Finance (2) IB0018 Set1 (1) IB0018 Set2 (1) MA0036 - Financial Systems and Commercial Banking (14) MA0036 Set1 (7) MA0036 Set2 (7) MA0037 - Banking Related Laws and Practices (12) MA0037 Set1 (6) MA0037 Set2 (6) MA0038 - Banking Operations (2) MA0038 Set1 (1) MA0038 Set2 (1) MA0039 - Retail Banking (2) MA0039 Set1 (1) MA0039 Set2 (1) MA0040 (1) MA0041 - Merchant Banking and Financial Services (5) MA0041 Set1 (3) MA0041 Set2 (2) MA0042 - Treasury Management (14) MA0042 Set1 (7) MA0042 Set2 (7) MA0043 - Corporate Banking (9) MA0043 Set1 (5) MA0043 Set2 (4) MA0044 - Institutional Banking (10) MA0044 Set1 (8) MA0044 Set2 (2) MB0038 - Management Process and Organization Behavior (24) MB0038 Set1 (16) MB0038 Set2 (9) MB0039 - Business Communication (24) MB0039 Set1 (15) MB0039 Set2 (9) MB0040 - STATISTICS FOR MANAGEMENT (24) MB0040 Set1 (15) MB0040 Set2 (9) MB0041 - Financial Management and Accounting (24) MB0041 Set1 (15) MB0041 Set2 (9) MB0042 - Managerial Economics (30) MB0042 Set1 (15) MB0042 Set2 (15) MB0043 - Human Resource Management (24) MB0043 Set1 (15) MB0043 Set2 (9) MB0044 - PRODUCTION and OPERATIONS MANAGEMENT (16) MB0044 Set1 (8) MB0044 Set2 (8) MB0045 - Financial Management (9) MB0045 Set1 (7) MB0045 Set2 (2) MB0046 - Marketing Management (10) MB0046 Set1 (8) MB0046 Set2 (2) MB0047 - MANAGEMENT INFORMATION SYSTEMS (15) MB0047 Set1 (8) MB0047 Set2 (7) MB0048 - OPERATIONS RESEARCH (10) MB0048 Set1 (8) MB0048 Set2 (2) MB0049 - Project Management (10) MB0049 Set1 (8) MB0049 Set2 (2) MB0050 - Research Methodology (20) MB0050 Set1 (10) MB0050 Set2 (10) MB0051 - Legal Aspects of Business (17) MB0051 Set1 (13) MB0051 Set2 (4) MB0052 - Strategic Management and Business Policy (30) MB0052 Set1 (15) MB0052 Set2 (15) MB0053 - International Business Management (35) MB0053 Set1 (19) MB0053 Set2 (16) MF0010 - Security Analysis and Portfolio Management (39) MF0010 Set1 (21) MF0010 Set2 (18) MF0011 - Mergers and Acquisitions (24) MF0011 Set1 (14) MF0011 Set2 (10) MF0012 - Taxation Management (25) MF0012 Set1 (16) MF0012 Set2 (9) MF0013 - Internal Audit and Control (25) MF0013 Set1 (16) MF0013 Set2 (9) MF0014 (1) MF0015 - International Financial Management (2) MF0015 Set1 (1) MF0015 Set2 (1) MF0016 - Treasury Management (2) MF0016 Set1 (1) MF0016 Set2 (1) MF0017 - Merchant Banking and Financial Services (2) MF0017 Set1 (1) MF0017 Set2 (1) MF0018 - Insurance and Risk Management (2) MF0018 Set1 (1) MF0018 Set2 (1) MH0051 - Health Administration (15) MH0051 Set1 (5) MH0051 Set2 (10) MH0052 - Hospital Organisation Operations and Planning (26) MH0052 Set1 (12) MH0052 Set2 (14) MH0053 - Hospital and Healthcare Information Management (11) MH0053 Set1 (3) MH0053 Set2 (8) MH0054 - Finance Economics and Planning in HCS (13) MH0054 Set1 (10) MH0054 Set2 (3) MH0055 (1) MH0056 - Public Relations and Marketing for Healthcare Organisation (6) MH0056 Set1 (3) MH0056 Set2 (3) MH0057 - Management of Healthcare Human Resources (5) MH0057 Set1 (2) MH0057 Set2 (3) MH0058 - Legal Aspects in Healthcare Administration (5) MH0058 Set1 (3) MH0058 Set2 (2) MH0059 - Quality Management in HCS (5) MH0059 Set1 (3) MH0059 Set2 (2) MI0014 (1) MI0033 - Software Engineering (2) MI0033 Set1 (1) MI0033 Set2 (1) MI0034 - Database Management System (2) MI0034 Set1 (1) MI0034 Set2 (1) MI0035 - Computer Network (2) MI0035 Set1 (1) MI0035 Set2 (1) MI0036 - BUSINESS INTELLIGENCE TOOLS (2) MI0036 Set1 (1) MI0036 Set2 (1) MI0038 - Enterprise Resource Planning (2) MI0038 Set1 (1) MI0038 Set2 (1) MI0039 - eCommerce (2) MI0039 Set1 (1) MI0039 Set2 (1) MI0040 - Technology Management (2) MI0040 Set1 (1) MI0040 Set2 (1) MI0041 - Java and Web Design (2) MI0041 Set1 (1) MI0041 Set2 (1) MK0010 - Sales Distribution and Supply Chain Management (33) MK0010 Set1 (17) MK0010 Set2 (16) MK0011 - Consumer Behaviour (31) MK0011 Set1 (16) MK0011 Set2 (15) MK0012 - Retail Marketing (42) MK0012 Set1 (20) MK0012 Set2 (22) MK0013 - Market Research (23) MK0013 Set1 (12) MK0013 Set2 (11) MK0014 (1) MK0015 - Service Marketing And Customer Relationship Management (2) MK0015 Set1 (1) MK0015 Set2 (1) MK0016 - Advertising Management and Sales Promotion (2) MK0016 Set1 (1) MK0016 Set2 (1) MK0017 - eMarketing (2) MK0017 Set1 (1) MK0017 Set2 (1) MK0018 - International Marketing (2) MK0018 Set1 (1) MK0018 Set2 (1) ML0010 - Warehousing and Supply Chain Management (2) ML0010 Set1 (1) ML0010 Set2 (1) ML0011 - Buying and Merchandising (2) ML0011 Set1 (1) ML0011 Set2 (1) ML0012 - Store Operations (2) ML0012 Set1 (1) ML0012 Set2 (1) ML0013 - Retail IT Management (2) ML0013 Set1 (1) ML0013 Set2 (1) ML0014 (1) ML0015 - Services Marketing and Customer Relationship Management (2) ML0015 Set1 (1) ML0015 Set2 (1) ML0016 - Advertising Management and Sales Promotion (2) ML0016 Set1 (1) ML0016 Set2 (1) ML0017 - Mall Management (2) ML0017 Set1 (1) ML0017 Set2 (1) ML0018 - Project Management in Retail (2) ML0018 Set1 (1) ML0018 Set2 (1) MU0010 - Manpower Planning and Resourcing (31) MU0010 Set1 (16) MU0010 Set2 (15) MU0011 - Management and Organizational Development (20) MU0011 Set1 (10) MU0011 Set2 (10) MU0012 - Employee Relations Management (22) MU0012 Set1 (11) MU0012 Set2 (11) MU0013 - Human Resource Audit (25) MU0013 Set1 (15) MU0013 Set2 (10) MU0014 (1) MU0015 - Compensation Benefits (24) MU0015 Set1 (14) MU0015 Set2 (10) MU0016 - Performance Management and Appraisal (27) MU0016 Set1 (12) MU0016 Set2 (15) MU0017 - Talent Management and Employee Retention (24) MU0017 Set1 (12) MU0017 Set2 (12) MU0018 - Change Management (29) MU0018 Set1 (9) MU0018 Set2 (20) OM0010 - Operations Management (2) OM0010 Set1 (1) OM0010 Set2 (1) OM0011 - Enterprise Resource Planning (2) OM0011 Set1 (1) OM0011 Set2 (1) OM0012 - Supply Chain Management (2) OM0012 Set1 (1) OM0012 Set2 (1) OM0013 - Advanced Production and Operations Management (2) OM0013 Set1 (1) OM0013 Set2 (1) OM0014 (1) OM0015 - Maintenance Management (6) OM0015 Set1 (3) OM0015 Set2 (3) OM0016 - Quality Management (11) OM0016 Set1 (8) OM0016 Set2 (3) OM0017 - Advanced Production and Planning Control (11) OM0017 Set1 (3) OM0017 Set2 (8) OM0018 - Technology Management (9) OM0018 Set1 (7) OM0018 Set2 (2) PM0010 - Introduction to Project Management (26) PM0010 Set1 (14) PM0010 Set2 (12) PM0011 - Project Planning and Scheduling (25) PM0011 Set1 (14) PM0011 Set2 (11) PM0012 - Project Financing and Budgeting (26) PM0012 Set1 (14) PM0012 Set2 (12) PM0013 - Managing Human Resources in Projects (26) PM0013 Set1 (13) PM0013 Set2 (14) PM0014 (1) PM0015 - Quantitative Methods in Project Management (14) PM0015 Set1 (8) PM0015 Set2 (6) PM0016 - Project Risk Management (14) PM0016 Set1 (7) PM0016 Set2 (7) PM0017 - Project Quality Management (14) PM0017 Set1 (7) PM0017 Set2 (7) PM0018 - Contracts Management in Projects (14) PM0018 Set1 (7) PM0018 Set2 (7) Project (1) QM0010 - Foundations of Quality Management (4) QM0010 Set1 (2) QM0010 Set2 (2) QM0011 - Principles and Philosophies of Quality Management (4) QM0011 Set1 (2) QM0011 Set2 (2) QM0012 - Statistical Process Control and Process Capability (4) QM0012 Set1 (2) QM0012 Set2 (2) QM0013 - Quality Management Tools (4) QM0013 Set1 (2) QM0013 Set2 (2) QM0014 (1) QM0015 - ISO/QS 9000 Elements (2) QM0015 Set1 (1) QM0015 Set2 (1) QM0016 - Managing Quality in the Organization (2) QM0016 Set1 (1) QM0016 Set2 (1) QM0017 - Quality Management System (2) QM0017 Set1 (1) QM0017 Set2 (1) QM0018 - Quality Development Methods (2) QM0018 Set1 (1) QM0018 Set2 (1) SC0001 - Supply Chain Management (4) SC0001 Set1 (2) SC0001 Set2 (2) SC0002 - Outsourcing (4) SC0002 Set1 (2) SC0002 Set2 (2) SC0003 - Food Supply Chain Management (4) SC0003 Set1 (2) SC0003 Set2 (2) SC0004 - Inventory Management (4) SC0004 Set1 (2) SC0004 Set2 (2) SC0006 - Global Logistics and Supply Chain Management (2) SC0006 Set1 (1) SC0006 Set2 (1) SC0007 - Category Management in Purchasing (2) SC0007 Set1 (1) SC0007 Set2 (1) SC0008 - Purchasing and Contracting for Projects (2) SC0008 Set1 (1) SC0008 Set2 (1) SC0009 - Supply Chain Cost Management (2) SC0009 Set1 (1) SC0009 Set2 (1) SMU BBA Subjects (1) SMU MBA/PGDBA Subjects (1)

Visitor Count (since Jan 2019)