Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Hr Audit Presentation For Linkedin


Published on

HR Audit report for the financial institution

  • Be the first to comment

Hr Audit Presentation For Linkedin

  1. 1. Saturday 28 August 2010 HR Audit of Policies & Practices Wajahat Ali Khan Group Manager Human Resources
  2. 2. Summary Slides S. No. Details Page No. 1 Overview of the Company 3 2 Objective of HR Audit 4 3 Methodology & Approach 5 4 Current & Recommended HR Structure 6 - 8 5 Overview of Existing policy & Procedures & Recommendation 9-12 6 Improvement of HRIS 13 7 Conclusion 14
  3. 3. Overview of the Company <ul><li>is amongst the leading financial groups in Pakistan. Capital’ s core areas of business include Equity Markets, Treasury Markets, Corporate Finance & Advisory, Research and Retail Brokerage. Asset Management Company Ltd. ( Funds) began its operations in June 2005. It is licensed to offer open and closed-end mutual funds in both equity and fixed income asset classes, and has rapidly established a strong presence as a pioneer in asset management. Funds launched Pakistan’s first ever open end off-shore fund, the Pakistan Opportunities Fund, and recently launched the country’s first capital guaranteed fund, the Principal Guaranteed Fund (BPGF). Financial Services Ltd. is ’s third party mutual funds distribution company. Since its inception in March 2008 the company has expanded its client base which consists of leading multinational and national companies, and high net worth individuals. Financial provides investment guidance and facilitation services for companies managing retirement funds, and/or both short and long term liquidity. Financial provides a one stop solution for investments in mutual funds, term deposits, pension schemes and discretionary portfolio management accounts. </li></ul>
  4. 4. <ul><li>A HR Audit collects and evaluates information about the state of an organization's HR practices and policies to determine the overall effectiveness of people management in the organization. The HR Audit demonstrates to what extent the HR function contributes to organizational effectiveness as a whole, as well as productivity and morale. </li></ul><ul><li>The HR Audit helps by: </li></ul><ul><li>Providing feedback on the value of the contribution of the HR function to the organization's strategic business objectives </li></ul><ul><li>Assessing the quality of HR practices, policies and delivery </li></ul><ul><li>Assessing HR and line management relationships and ways these can be improved </li></ul><ul><li>Setting guidelines for establishing HR performance standards </li></ul><ul><li>Identifying areas for change and improvement with specific recommendations </li></ul>Objective of HR Audit
  5. 5. <ul><li>My understanding for this report is based on following four activities: </li></ul><ul><li>Review of literature based on collection of HR data of Group. </li></ul><ul><li>Meetings with selected senior & middle management staff of . </li></ul><ul><li>Analysis & finding based on the existing HR practices and comparison with the current market practices </li></ul>Methodology & Approach
  6. 6. <ul><li>Current Structure </li></ul><ul><li>The HR function is centralized for all the three companies of Group i.e. Capital, Funds & Financials. Within the HR function, there are certain resources which are shared between all three companies of the group, e.g. Recruitment, Policy & Development function is shared between the groups. </li></ul><ul><li>The job descriptions for positions relating to Capital are available while the same are yet to be developed for positions in Funds and Financials. Although the human resources and administration function are ‘housed’ in a separate division but the job descriptions for HR and Personnel related positions also include some responsibilities relating to the Administration function. </li></ul>HR Structure Entity Management staff Non-management staff Remarks Capital - 12 The Marketing, HR, Administration and Non Management staff is common to the all three organizations of the Group. Funds - 5 Financials - 3
  7. 7. Recommended HR Structure Option 1
  8. 8. Option 2
  9. 9. Overview of Existing policy & Procedures <ul><li>This section presents a comparative assessment of ’s existing HR policies with the market practices. While defining the ‘market’, I have kept in mind organizations primarily in the Financial Services, Asset Management and Investment companies. </li></ul><ul><li>Current policies & Procedures of are as follows: </li></ul>Man power Budgeting Provident Fund Loan Provident Fund Medical Benefits Group Life Insurance Training Personnel Requisition Annual Salary review Reference Check Recognition Awards Grievances Performance Appraisal Company Maintained Car Company Motor Bike Compensation Structure Promotion Long Service Awards TADA for Non-Management Appointment & Re-appoint. of Ex-employees House Rent Advance on Relocation Company Mobile Connection Career / Succession Planning Code of Conduct & Ethics Dissemination of HR & Compensation Separation Recruitment / Selection Recruitment Resources CFA Scholarship Office Timings & Leaves Exit Interview Record Keeping Hiring of Relatives Confirmation Internal Transfer Company Fuel TADA for Management
  10. 10. Recommendations on Policies & Procedures <ul><li>During the audit it has been analyzed that most of the policies and Procedures are in place and they are aligned with the “Best market practices”. </li></ul><ul><li>Company has to revise the following policies in order to be competitive in the market. </li></ul><ul><li>Medical Benefits </li></ul><ul><li>Current Medical Benefit includes only Hospitalization, Major Care & Maternity and the limits of coverage is on low side. In many cases employees limit get exhausted. </li></ul><ul><li>It is recommended that should revise its medical plan and add a OPD for the employees. </li></ul><ul><li>Training </li></ul><ul><li>The Primary focus of management is on the training and learning of business departments.. There is no such policy or criteria for training. Nominations only comes from departmental heads. </li></ul><ul><li>It is recommended to make a policy on training & development. Training need analysis should take place on merit basis on half yearly basis as well as after identifying the weaknesses in performance appraisal. </li></ul>
  11. 11. <ul><li>Reference check </li></ul><ul><li>Reference check policy has been implemented but this practice is not been followed. There should be a proper reference check for newly joined employees as well as selective reference checks for current employees. </li></ul><ul><li>Automation of Performance appraisal </li></ul><ul><li>Appraisal process of is on paper and it requires lot of effort to go through the whole cycle. To make this process hassle-free, should automate the appraisal process and transparent. </li></ul><ul><li>CFA Scholarship </li></ul><ul><li>To enhance professional competence for improvement in individual and company performance, offers financial assistance to candidates appearing for CFA examination who has served in the company for at least one year. </li></ul><ul><li>It has been observed that many companies in the industry have made a pool to finance studies of the employees. It is recommended that should also initiate financial assistance for degree programs other than CFA . </li></ul>
  12. 12. <ul><li>Company Fuel </li></ul><ul><li>Company fuel policy is only applicable for Financials. The other two companies doesn't offer fuel allowance or reimbursement for staff at any level. </li></ul><ul><li>Most of the companies in the industry offer separate fuel allowance for AVP and above position. It is recommended to revise the fuel policy in aligned with the current market practices. </li></ul><ul><li>TADA for Management </li></ul><ul><li>The current limits of TADA of Management staff is low. It is recommended that should revise its TADA structure as per the current market practices. </li></ul>
  13. 13. Improvement of HRIS <ul><li>The choice of an effective HR automation solution is dependent upon several factors including the following: </li></ul><ul><li>Availability of employee interface – This issue relates to one of the key design principles- Transparency vs. Confidentiality -. Some organizations enable their employees to all the HR related information via web based portals or similar tools while other organizations exercise high degree of confidentiality in such matters. Depending upon where wishes to position itself on this continuum, the choice of automation solution could be influenced. </li></ul><ul><li>Availability of financial resources – The choice of appropriate solution will be tempered by the budget available / approved for the purpose. Based on my knowledge of options available in the market, the price of HR automation solutions ranges from few lakhs of rupees to millions. </li></ul><ul><li>Broadly speaking, should consider improving its current HRIS system which has been developed by our IT experts. </li></ul>
  14. 14. Conclusion <ul><li>Based on the current observation, has to take following initiatives: </li></ul><ul><li>To steam line the HR function, Management should adopt one of the proposed structure. </li></ul><ul><li>Revision of current policies & procedures has to be undertaken in order to curtail the gaps. </li></ul><ul><li>Current compensation structure has to improve to attract and retain new and existing workforce through internal and external salary surveys. </li></ul><ul><li>Automation of HR processes has to be undertaken. </li></ul><ul><li>There should be a separate Job descriptions design for each company of the group according to exact nature of job responsibilities and reporting relationships. </li></ul>