The document discusses the concepts of HRD audit and its importance for organizations. It defines HRD audit as a comprehensive evaluation of an organization's HRD structure, strategies, systems, styles, skills/competencies, and culture and their alignment with organizational goals. The key aspects of HRD audits include evaluating HRD systems maturity, employee competencies, organizational culture, and linkages between HRD and business goals. HRD audits help organizations identify areas for improvement, ensure the effective development of human resources, and promote strategic alignment of HRD with the business.

1. HRD Audit

2. What is HRD?
Human Resource Development (HRD) is the
framework for helping employees develop their
personal and organizational skills, knowledge,
and abilities.
HRD includes such opportunities as employee
training, employee career development,
performance management and development,
coaching, mentoring, succession planning, key
employee identification, tuition assistance, and
organization development.

3. "The unexamined work life is not
worth living."
“The things that get measured
gets managed”

4. What is Audit?
The general definition of an audit is an
evaluation of a person, organization, system,
process, enterprise, project or product.
The term most commonly refers to audits in
accounting, but similar concepts also exist in
project management, quality management,
water management

5. HRD Audit
HRD Audit is a comprehensive evaluation of the
existing HRD
 Structure,
 Strategies,
 Systems,
 Styles,
 Skills / Competencies
 Culture
and their appropriateness to achieve the short-
term and long-term goals of the organisation.

6. What ?
HRD Audit is like an annual health
check-up, it plays a vital role in
instilling a sense of confidence in the
Management and the HR functions
of an organization

7. HR Audit v/s HRD Audit
HR Audit is a comprehensive
HRD Audit is evaluation of evaluation of the entire gamut
only few activities of HR activities
• Structure, • HR Cost
• Strategies, • HRD activities
• Systems, • Health, Env. & Safety
• Styles, • Legal Compliance
• Skills / Competencies • Quality
• Culture • Compensation & Benefits

8. Methodology of HRD Audit (How?)
 Interviews
 Questionnaires
 Observation
 Analysis of records and secondary data
 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 (Why?)
• 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
• HRD audit is cost effective
• 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 Improvements in HRD systems
• Increased focus on human resources and human
competencies
• Improvements in HRD systems
• Better recruitment policies and more professional staff
• More planning and more cost effective training
• TQM Interventions

11. HRD SCORE CARD
 T.V. Rao (1999) has introduced the concept of HRD score card.
 The HRD Scorecard is a measure of the HRD maturity level of an
organization. The scorecard is based on the following assumptions and
takes into consideration the research based understanding gained in the
last few decades regarding HRD.
The maturity level of HRD in an organization is indicated by the following
factors:
1. HRD Systems Maturity
2. HRD Competencies of the Employees including the HR Department
3. HRD Culture of the Organization
4. HRD Influence on the Business Goals or Business Linkages of HRD

12. Name of the Organisation ABC
HRD HRD Business Overall HRD
HRD Culture
Systems Competence Linkage Maturity
Grade
Maturity Score Grade rating
B* C B* B B*C B*B
A* Highest Score and Highest Maturity Level
A Very High Maturity level
B* High Maturity Level
B Moderately High Maturity Level
C* Moderate Maturity Level
C Moderately low Maturity level
D* Low Maturity Level
D Very low Maturity level
F Not at all present
U Ungraded

13. Assumption
“Competent and motivated employees are
needed to provide quality products and
services at competitive rates and ways that
enhance customer satisfaction”

14.  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.
 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.

15.  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.
 Business Linkage Score
Business linkages of HRD are very crucial component of HRD
effectiveness.HRD systems competencies and the culture
must be a lined with the business oals of the cororation

16. Challenges in HRD Audit
 Build and improve quality consciousness
 Strive to recruit and retain competent , creative employees
 Align biz processes with technology infrastructure
 Nurture creative and supportive work culture
 Train and develop the employee through 360 degree
feedbacks, appraisals.
 Promote learning orientation-informal networks

17. Organisations that Have done
HRD Audit
• Aditya Birla Group (8 years)
• L&T
• Gujarat Gas
• Gujarat Guardian
• Apollo Tyres
• Alexandria Carbon Black
• Godrej Soaps
• GVFL
• BPL
• Tyco International
• Wokhardt Hospitals Bangalore
• Bharat Electronics
• NTPC