how the auditing is done in HRD system

1. HRD System

2. Topic to be covered
• What is HRD System?
• HRD System & its Subsystems
• Auditing HRD Systems
o Possible interview areas, dimensions, issues & questions
o Observation for auditing
o Related documents & facilities to be observed
• Conclusion

3. What is HRD System?
• The branch of human resources management function that endeavors to build
competencies, commitment and a learning culture in organizations with the
purpose of bringing in competitive advantages to achieve business excellence in
all its operation.

4. HRD System and Its Subsystems
1. Training
2. Performance Appraisal
3. Feedback & Counselling System
4. Career Development & Career Planning
5. Potential Appraisal & Development

5. Auditing HRD Systems- Possible interview areas,
dimensions, issues & questions
Career System
What is the process of manpower planning and recruitment?
Is there a system of potential appraisal?
How is the system of career planning & development operating?
Work Planning
What is being done to clarify roles on a continuous basis?
Are there mechanisms to inform employees about the performance of the company?
What is the current system of performance appraisal?

6. Auditing HRD Systems
Development System
What are the suggestions for improvement in the training?
What is the system of giving performance feedback & counselling?
What are the other noticeable mechanisms being used for competence building and
commitment building?
What is the seriousness attached to the worker & staff development?
Self Renewal System
Are there mechanisms of periodically examining the effectiveness with which employees
are performing their role?

7. Auditing HRD System
What OD exercises have been undertaken in the past? What have been the results?
Is there a research orientation?
Culture System
What are the main characteristics of the HRD climate?
Are there some stated values? What are these values?
What efforts have been made in the past to improve the quality of product & services?
What are the various reward systems in use?
Is the information given up to the desired level?
What are the communication needs of people?
What is the level of empowerment?

8. Auditing HRD Systems - Observation for
auditing
Career System
o Analyse recruitment data
o Analyse the rate of promotions
o Study the past internal promotions patterns & career patterns of the employees
Work Planning
o Study the performance appraisal forms
o Examine the extent to which the data is provided to employees
o Study the pattern of ratings

9. Auditing HRD Systems
Development System
o Assess the expenditure on training
o Find out the time spent by each appraiser
o Analyse job rotation data of the past
o Calculate the per employee training hours per year
Self Renewal system
o Examine if any role efficacy seminar or workshops have been conducted.
o Study any docs. available from OD exercises
o Study research reports & any circulars, communication, etc. using these.

10. Auditing HRD Systems
Culture Systems
o Examine the earlier climate survey data & compare with the current one.
o Examine the values, statements & any comments, notifications & critiques in relation
to values.
o Examine data on TQM & ISO 9000 certificate, minutes of QC meetings, etc. to
ascertain the quality of implementation and possible improvement.
o Study from available docs.
o Examine if there are any secondary data maintained for these.
o Observe memos, meetings, etc. for communication content
o Observe the level of confidence with which staff speak/decisions are taken.

11. Auditing HRD System -Related documents &
facilities to be observed
• Assessment centres
• KPAs or KRAs
• Training materials
• Documents or report
• Annual reports and documents
• Meetings

12. Conclusion
 HRD subsystems are extremely crucial to the organisation.
 They focus on competence building & have a lasting impact on the
organisational culture.
 HRD audit helps to assess the orientation, processes & mechanisms, degree of
participation, cost effectiveness & efficiency of the overall system and helps to
point out the areas of modification for meeting the organisational needs.