 BETTY METHEW
 RAVI ROSHAN DUNGDUNG
 ACHINT CHHABRA
 DEBABRATA SAHA
 PRITEY BALA
 HARSHWARDHAN SINGH RATHOOR
 RICHA NAUTIYAL
 It is a Comprehensive Evaluation of the existing HRD
 Strategies and Systems
 Structures and Competencies
 Culture and Values
 And their appropriateness to achieve the short and
long term business goals of the organization
Focal Points
 Culture building strategies
 Quality and Customer Orientation
 Communication strategy
 Efficiency management and cost reduction strategy
 HRD Audit helps discover the areas of strength as well as
developmental areas , thereby strengthening the
effectiveness of HR in the organization.
 HRD Audit attempts to highlight the current status,
strengths, weaknesses and cost effectiveness.
 HRD Audit attempts to study the extent to which the








organizational culture fosters
Openness
Collaboration
Trust
Authenticity
Proactivity
Autonomy
Confrontation
Experimentation
 HRD audit is Comprehensive: It starts with an
understanding of the future business plans and corporate
strategies. The HRD audit starts with the following
questions:
 Where does the company want to be ten years from now,
three years from now and one year from now? (answer to
this question contribute to the HRD business linkages
score of the HRD score card)
 What is the current skill base of the employees in the
company in relation to the various roles and role
requirements? (answer to this question contribute to the
competency score on the HRD score card)
 What are the HRD subsystems available today to help
the organization build its competency base for the
present, immediate future and long-term goals?
(answer to this question contribute to the HRD
systems maturity score of the HRD score card)
 What is the current level of effectiveness of these sub-
systems in developing people and ensuring that
human competencies are available in adequate levels
in the company? (answer to this question contribute to
the HRD systems maturity on the HRD score card)

Is the HRD structure existing in the company
adequate enough to manage the HRD in the
company? (answer to this questions contribute to the
HRD competencies score of the score card)

Are the top management and senior manager styles
of managing people in tune with the learning
culture? (answer to this question contribute to the
HRD culture score of the HRD score card)

HRD Audit Examines Linkages with other Systems:
Like TQM, strategic planning etc.
 HRD audit is Business-driven: It keeps business goals
in focus, at the same time, it attempts to bring
professionalism in HRD
1. To make the HR function business-driven
2. To take stock of things and to improve HRD for
expanding, diversifying, and entering into a fast
growth phase
3. For promoting professionalism among employees
and to switch over to professional management
4. Multinationals want to know the reasons for lower
labor productivity and for improving their HRD
strategies in the Indian context
5. For growth and diversification
6. Dissatisfaction with a particular component
7. Change of leadership
Role of HRD Audit in Business Improvement
1.
It can get the top management to think in terms of
strategic and long-term business plans
2. Changes in the styles of the top management
3. Role clarity of the HRD department and the role of line
managers in HRD
4. Improvements in HRD systems
5. Increased focus on human resources and human
competencies
6. Better recruitment policies and more professional staff
7. More planning and more cost-effective training
8. Streamlining of other management practices
1.
2.
3.
Strengthening accountability through appraisal systems
and other mechanisms
TQM interventions
It can enhance the ROI (return on investment)( of the
HR function
 To determine the effectiveness of management programs.
 To locate the gaps in the implementation of various HRD
programs.
 Develop a statement of findings with recommendations for
correcting deviations.
 To study the extent to which line managers comply with
HRD policies.
 To study current manpower inventory.
 To examine and pinpoint strength and weaknesses related
to H.R. areas and Skills and Competencies to enable an
organization to achieve its long-term and short-term goals.
 To increase the effectiveness of the design and
implementation of human resource policies, planning and
programs.
 To help human resource planners develop and update
employment and program plans.
 To evaluate current effectiveness.
 To standardize practices across multiple sites within a
division or company.
 To improve performance levels to key customers within the
organization.
 The general process of conducting an audit includes seven
key steps:
 1. Determine the scope and type of the audit
 determine exactly what areas should be targeted for
review.
 2. Develop the audit questionnaire helps guide the audit
team in scrutinizing all critical areas of a company’s HR
practices.
 Important to invest sufficient time in developing a
comprehensive document.
3. Collect the data
4. Benchmark the findings
comparison will offer insight into how the audit results compare
against other similarly sized firms, national standards and/or
internal company data.
5. Provide feedback about the results
summarize the data and provide feedback
a roadmap for action can be developed
6. Create action plans
The company must create action plans for implementing the
changes suggested by the audit
7. Foster a climate of continuous improvement
 it is important to engage in constant observation and
continuous improvement of the company’s policies,
procedures and practices so that the organization never
ceases to keep improving.
 Interviews;
 Questionnaires;
 Observation;
 Secondary data analysis; and
 Examination of documents and communications
 The score card is a series of four letter grades assigned by
the auditors on the basis of the HRD Audit.The HRD Score
card helps identify the areas the firm needs to focus at a
glance.
 HRD Systems
 HRD Competencies
 HRD Climate
 Business Linkages
 Traditionally there have been the financial audits of a
company. Gradually auditing has evolved and has become
function specific, function audit diagnoses and analyses
the situation, set measures of control and give advice
within the boundaries of functional area. HR audit is also
the audit of HR function. Audit has a wider perspective
defining future lines of action.
 HR Audit performs two basic functions ( Cantera, 1995).
1. facilitates the development of managing process.
2. Controls and evaluates the policies and established
processes.
Important noteOrganizations assume that their HR department is doing
“everything”….
 Keys the HR department’s mission and goal in sync with the







organization’s needs and long term business strategy.
Identifies and prioritizes opportunities for improvement, as well
as area of potential risk.
Improves efficiency and productivity so that the department can
better serve employees and customers.
Identifies root problem areas and fix them before they become
more widespread.
Find cost- reduction opportunities.
Improves employee communications and moral and help
establish better credibility and perceptions of top management.
Provides a reality check in order to identify and correct any gaps
between what is intended and what is actually being delivered.
Implements and stays current with best practices.
 http://www.citehr.com/184468-suraj-asks.html
 http://www.younghrmanager.com/the-importance-
and-benefits-of-human-resources-audits
 Human resource management- Seema Sanghi.
 Human resource management- Aswathappa.
 Wikipedia.