This document discusses human resource development (HRD) audits and scorecards. It defines HRD and what is involved in good HRD practices. An HRD audit is described as a comprehensive evaluation of an organization's HRD strategies, systems, practices, structures, competencies, styles and culture, and how appropriate they are for achieving business goals. The methodology of an HRD audit examines these areas along with competency requirements and suggestions for improvements. HRD scorecards are presented as a tool to measure key HRD processes, identify gaps, and communicate successes using ratings across four dimensions: HRD systems maturity, competencies, culture/values, and business linkages.

1. HRD Audit
Tedwin Thomas
MBA - HR

2. What is HRD?
• Competence Building
• Commitment /Motivation Building
• Culture Building

3. What is involved in Good HRD?
• Top Management Philosophy and Understanding
• Competent HR Staff and Department
• Line Manager Attitudes
• Union and Employee Support
• Use of appropriate Systems
• Periodic Renewal Exercises
• Business relevance of HRD systems and Practices

4. What is HRD Audit?
• It is a Comprehensive Evaluation of Human
Resource Development
• Strategies, Systems and Practices,
• Structures and Competencies
• Styles and Culture
• And their appropriateness to achieve the short and
long term business goals of the organization

5. Methodology of HRD Audit
• Examines long term and short term plans and vision
to assess Competency Requirements
• Identifies broad Competency requirements for future
Business Goals
• Examines the existing HRD strategies, systems and
practices and assess their appropriateness to have the
required competencies

6. Methodology of HRD Audit
• Examines the adequacies and inadequacies of HRD
structure, staff and their competencies, line managers
and their attitudes, top management and their
support, unions and their role in competence
building for future
• Suggests mechanisms for improving all these in the
business context

7. Methodology Adopted
• Interviews
• Individual and group
• Top Management
• Line Managers
• HRD Staff
• Workmen and others
• Questionnaires
• Observation
• Analysis of records and secondary data

8. Methodology
• Workshops could be used
• Task forces and internal teams could also be used
• External Auditors have a significant role
• Benchmarking of questionnaire data may be of use

9. Reasons for HRD Audit
• For expanding, diversifying and entering into a fast growth
phase.
• For promoting more professionalism and professional
management.
• Bench-marking for improving HRD practices.
• Growth and diversification
• Dissatisfaction with any component
• Change of leadership

10. Role of HRD Audit in Business
Improvements
• HRD audit is cost effective
• It can give many insights into a company's affairs.
• It could get the top management to think in terms of
strategic and long term business plans.
• Changes in the styles of top management
• Role clarity of HRD Department and the role of line
managers in HRD

11. Role of HRD Audit in Business
Improvements
• Improvements in HRD systems
• Increased focus on human resources and human competencies
• Better recruitment policies and more professional staff
• More planning and more cost effective training
• Strengthening accountabilities through appraisal systems and
other mechanisms
• Streamlining of other management practices
• TQM Interventions

12. Organisations that Have done HRD
Audit
• Aditya Birla Group has been doing it for the last 8 years
• Rajashre e Ce m e nt, Vikram Ce m e nt, Hindalco , Indo -
Gulf Fe rtilise rs, Gwalio r Grasim , Harihar Fibre s e tc.
• L& T, Cro m pto n Gre ave s
• Gujarat Guardian
• Gujarat Gas
• Apo llo Tyre s
• Ale xandria Carbo n Black

13. Some Organisations using HRD
Audit
• Godrej Soaps
• GVFL
• BPL
• Tyco International
• Gati Cargo Management Services
• Wokhardt Hospitals
• For detailed client list visit: www.hrdaudit.com

14. HRD Score Card
The modern HR Management is supported by the
measurement of main HR Processes and trends in the
area of the people management. The HR Scorecard is a
modern HR reporting tool for measuring the progress,
identifying gaps and communicating successes. The HR
Scorecard has to be widely used for the communication
with the top executives and line managers. The scorecard
provides the almost instant and immediate feedback about
the performance of HR in the organization. It provides
the basis and foundations for discussions about the HR
Development.

15. HRD Score Card
• HRD Score Card' which has been developed and
tested by Dr. T.V Rao. This Score Card' can be used
to assess and benchmark the maturity level of the
HRD function in organisations and make it more
business-driven. It assigns a four-letter rating to
grade four critical dimensions of HRD which
contribute vitally to organisational performance;
HRD systems maturity, HRD competencies,
HRD culture and values, and HRD linkages to
business goals

16. The maturity level of HRD in an organization is
indicated by the following factors:
HRD Systems Maturity Score:
Competencies and commitment can be developed
through appropriate HRD mechanisms (tools and
systems). In a HRD Mature organization there will be
well-developed HRD systems and HRD systems
Maturity can be measured through HRD audit.
(The HRD systems maturity assesses the extent to
which various HRD subsystems and tools are well
designed and are being implemented.)

17. The maturity level of HRD in an organization is
indicated by the following factors:
HRD Competence Score:
HRD Competencies of the HRD department and the
line managers play a significant role in implementing
the systems and processes in ways that could ensure
employee satisfaction, competence building and
customer satisfaction linkages. The competencies of the
staff and the other employees can be measured in
terms of an index.

18. The maturity level of HRD in an organization is
indicated by the following factors:
The HRD Culture:
values and processes created by the HRD tools, staff and their
styles also play a crucial role in building sustainable
competencies in the organization. These need to be measured and
monitored. It is possible in some corporations (for example
small corporations) to have very little of HR systems and yet have
a high level of HR competencies and HR culture. In the
traditional family owned organizations in those years where there
were no systems approaches there used to be good degree of
HRD culture, which has resulted in effective functioning and
business.

19. The maturity level of HRD in an organization is
indicated by the following factors:
Business Linkage Score: Business linkages of HRD
are very crucial component of HRD effectiveness.
HRD systems, competencies and the culture must be
aligned with the business goals of the corporation. The
alignment could be ensured through the direct
linkages with customer satisfaction and employee
motivation indices.

20. These four indices consist of the four pillars of HRD
effectiveness. All the four dimensions are assessed using
following ten point rating system.

21. Sample HRD Score Card

22. Thank YouThank You