HRM Audit Road-map_5 6 September 2013

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The best practice process, principles and practice of conducting a comprehensive HRM Audit

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HRM Audit Road-map_5 6 September 2013

  1. 1. HR AUDIT ROAD-MAP CROWNE PLAZA HOTEL, ROSEBANK 5-6 SEPTEMBER 2013 CHARLES COTTER
  2. 2. 2-DAY TRAINING PROGRAMME OVERVIEW • INTRODUCTION • THE FUNDAMENTALS OF HRM AUDITING • THE SCOPE OF HRM AUDITING • THE PROCESS OF HRM AUDITING
  3. 3. INTRODUCTION • “How does a firm know if its human resource practices have an impact on business results? • “..most professional service firms and organizations complete an extensive audit of their financial statements on an annual basis, but the programmes involving “people”, such as recruiting, training or pay-for-performance are seldom given the same scrutiny.” • “..the starting point for enterprises wishing to manage their human capital successfully and seeking a labour competitive advantage is activities of the HR department.” • COMPLETE THE INTRODUCTORY LEARNING ACTIVITY
  4. 4. THE FUNDAMENTALS OF HRM AUDITING • DEFINING HRM AUDITING • THE DRIVING FORCES OF HRM AUDITING • THE PURPOSE AND OBJECTIVES OF HRM AUDITING • THE BENEFITS OF HRM AUDITING • POTENTIAL DRAWBACKS OF HRM AUDITS • THE CRITICAL SUCCESS FACTORS OF HRM AUDITING • THE PRINCIPLES OF EFFECTIVE HRM AUDITING
  5. 5. PURPOSES OF HRM AUDITING •VALUE •COMPLIANCE •RISK
  6. 6. PURPOSES OF HRM AUDITING •VALUE – STRATEGIC (ROI); OPERATIONAL (EFFECTIVENESS); ADMINISTRATIVE (EFFICIENCY) AND RESOURCE OPTIMIZATION (ECONOMICAL) •COMPLIANCE – LEGISLATIVE AND ORGANIZATIONAL POLICY •RISK – PEOPLE AND RELATED E.G. OHS
  7. 7. BENEFITS OF HRM AUDITING
  8. 8. THEPRINCIPLESOF EFFECTIVEHRM AUDITING • NEED FOR INDEPENDENCE; • AUDIT ACTIVITIES SHOULD BE BUDGETED FOR PROPERLY; • ACKNOWLEDGEMENT THAT THERE ARE MANY TYPES OF AUDITS; • EACH TYPE OF AN HR AUDIT HAS ITS OWN PURPOSE AND OBJECTIVES; • ESTABLISH TIMEFRAMES FOR EVERY PHASE/STEP OF THE AUDIT; • TRAINING OF AUDITORS IS A MUST; • SET STANDARDS FOR THE HR AUDITS; • AGREE ON REPORTING TEMPLATE; • AUDITORS SHOULD SIGN A CONFIDENTIALITY AGREEMENT; AND • AUDITORS SHOULD AGREE BEFOREHAND ON COMMUNICATION STRATEGY.
  9. 9. LEARNING ACTIVITY 1 • COMPLETE THIS ACTIVITY (PAGES 21-22) IN SYNDICATE GROUPS COST-BENEFIT ANALYSIS OF HRM AUDITING GAP ANALYSIS OF CURRENT HRM AUDITING PRACTICES • NOMINATE A SPOKESPERSON TO PROVIDE A SUMMATION OF YOUR SYNDICATE GROUP DISCUSSION
  10. 10. THE SCOPE OF HRM AUDITING • THE HR ELEMENTS/FOCAL POINTS WITHIN THE SCOPE OF HRM AUDITS • TYPES OF AUDITS • COMMON AREAS FOR HRM AUDITING
  11. 11. THE SCOPE OF HRM AUDITING
  12. 12. COMMON AREAS OF HRM AUDITING • HRM AND RELATED • HRD AND RELATED • HR INFORMATION SYSTEMS • THE SERVICE ROLE OF HR • HR LEGISLATIVE COMPLIANCE • THE STRATEGIC ROLE OF HR
  13. 13. HRM AUDIT MEASURES • HR PLANNING • RESOURCING – RECRUITMENT EFFICIENCY AND EFFECTIVENESS • COMPENSATION AND BENEFITS MEASURES • ORIENTATION/ON-BOARDING • EMPLOYEE COUNSELING AND DISCIPLINARY COSTS • LOST TIME COSTS • EMPLOYEE TURNOVER RATES • TRAINING AND DEVELOPMENT COSTS E.G. ROI • ORGANIZATIONAL DEVELOPMENT AND CHANGE MANAGEMENT
  14. 14. SABPP NATIONAL HR STANDARDS REFER TO ANNEXURE: • Strategic HR Management • Talent Management • HR Risk Management • Workforce Planning • Learning & Development • Performance Management • Reward • Employee Wellness • Employment Relations Management • Organization Development • HR Service Delivery • HR Technology • HR Measurement
  15. 15. LEARNING ACTIVITY 2 • COMPLETE THIS ACTIVITY (PAGE 43) IN SYNDICATE GROUPS IDENTIFY THE SCOPE (FOCAL AREAS) OF A HRM AUDIT DEVELOP HRM AUDIT MEASURES FOR EACH OF THESE FOCAL AREAS • NOMINATE A SPOKESPERSON TO PROVIDE A SUMMATION OF YOUR SYNDICATE GROUP DISCUSSION
  16. 16. HRM AUDITING PROCESS • PHASE 1: FOUNDATIONAL/INITIATION • PHASE 2: ASSESSMENT • PHASE 3: CONCLUDING AND REPORTING
  17. 17. OVERVIEW OF THE GENERIC HRM AUDITING PROCESS • DESIGN AND DEVELOP HR POLICIES, PROCEDURES AND PRACTICES FOR YOUR ORGANIZATION; • ASSESS CURRENT HR POLICIES, PROCEDURES AND PRACTICES AGAINST SET CRITERIA; • ANALYSE THE RESULTS FROM EVIDENCE; AND • TAKE ACTION: TO CLOSE GAPS, MAKE RECOMMENDATIONS/ SET IMPROVEMENT GOALS.
  18. 18. HRM AUDITING PROCESS ILLUSTRATED
  19. 19. HRM AUDITING PROCESS ILLUSTRATED
  20. 20. PHASE 1: FOUNDATIONAL/INITIATION • AUDIT SET-UP ACTIONS • AUDIT PLANNING ACTIONS Determine the purpose and objectives of the audit Determine the scope of the audit Determine the organizational components to be audited Determine the auditing tool to be used Determine costs and resources needed to perform the audit Determine audit team governance
  21. 21. LEARNING ACTIVITY 3 • COMPLETE THIS ACTIVITY (PAGES 56-57) IN SYNDICATE GROUPS APPLY PHASE 1: FOUNDATIONAL/INITIATION OF THE 3- STEP HRM AUDIT CYCLE • NOMINATE A SPOKESPERSON TO PROVIDE A SUMMATION OF YOUR SYNDICATE GROUP DISCUSSION
  22. 22. PHASE 2: ASSESSMENT • GENERAL COMMENTS • IDENTIFY KEY ORGANIZATIONAL METRICS - DETERMINE EMPLOYMENT ISSUES ACCOUNTABILITY • DEVELOPING A CHECKLIST REFER TO THE ATTACHED ANNEXURE: HUMAN RESOURCES BEST PRACTICE AUDIT AND NEEDS ASSESSMENT TOOL • FORMULATING AUDITING METHODOLOGY AND TOOLS
  23. 23. LEARNING ACTIVITY 4 • COMPLETE THIS ACTIVITY (PAGES 60-61) IN SYNDICATE GROUPS APPLY PHASE 2: ASSESSMENT OF THE 3-STEP HRM AUDIT CYCLE • NOMINATE A SPOKESPERSON TO PROVIDE A SUMMATION OF YOUR SYNDICATE GROUP DISCUSSION
  24. 24. PHASE 3: CONCLUDING AND REPORTING • REPORT PREPARATION • REPORT PRESENTATION QUANTIFY YOUR RESULTS - START WITH OUTCOMES INCLUDE AN EXECUTIVE SUMMARY IDENTIFY RISKS IDENTIFY AND PRIORITIZE SOLUTIONS TO PROBLEMS IDENTIFY. WHERE POSSIBLE, FRAME YOUR SOLUTIONS FROM A BOTTOM LINE PERSPECTIVE, I.E., CALCULATE THE BENEFITS AND COSTS OF PROPOSED SOLUTIONS EVALUATE AND DISCUSS THE ORGANIZATIONAL, FINANCIAL AND EMPLOYEE RELATIONS IMPACT OF ACTION OR INACTION • DEVELOP A HR IMPROVEMENT PLAN
  25. 25. LEARNING ACTIVITY 5 • COMPLETE THIS ACTIVITY (PAGE 63) IN SYNDICATE GROUPS APPLY PHASE 3: CONCLUDING AND REPORTING OF THE 3-STEP HRM AUDIT CYCLE • NOMINATE A SPOKESPERSON TO PROVIDE A SUMMATION OF YOUR SYNDICATE GROUP DISCUSSION
  26. 26. CONCLUSION • SUMMARY OF KEY LEARNING POINTS • QUESTIONS • FINALIZATION OF TRAINING ADMINISTRATION • THANK YOU • GOOD LUCK WITH YOUR ORGANIZATIONAL HRM AUDIT
  27. 27. CONTACTDETAILS • CHARLES COTTER • 084 562 9446 • charlescot@polka.co.za • LINKED IN • TWITTER: Charles_Cotter

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