DRIVE-- SUMMER 2016

SUBJECT CODE & NAME-MU0013 HR Audit

BK ID-B1735

Q1. Define Human Resource Planning (HRP).Discuss the objectives of Human Resource
Planning.
(Meaning of Human Resource Planning., Explain the four main objectives of Human
Resource Planning) 2, 8
Answer.
Meaning of Human Resource Planning
Human resource planning is the term used to describe how companies ensure that
their staff comprises the right person for doing the job. It includes planning for staff
retention, planning for candidate search, training and skills analysis and much more. It
is the process of acquiring and utilising human resource in an organization.
Explain the four main objectives of Human Resource Planning
ANS.
Objectives:
The main objective of having human resource planning is to have an accurate number
of employees required, with matching skill requirements to accomplish organisational
goals.

In other

words, the objectives of human resource planning are to:

1. Ensure adequate supply of manpower as and when required.
2. Ensure proper use of existing human resources in the
organisation.
3. Forecast future requirements of human resources with different levels of
skills.
4. Assess surplus or shortage, if any, of human resources available over a
specified period of time.

5. Anticipate the impact of technology on jobs and requirements for human

resources.
6. Control the human resources already deployed in the organisation.

Q3. Suppose you have joined as an HR and you are asked to carry out the HR Audit
process in your organization. What are the methods you will consider while
implementing the HR Audit process?
(Explain the methods involved in the HR Audit process) 10
Answer.
Methods involved in the HR Audit process
Methods used in the HR Audit process are: Interviews
In order to ascertain what the top management thinks about the future plans and
opportunities available for the company, the auditors conduct individual interviews
with the members of the top management. The top management
can provide a perspective for a good HR audit. To collect information about the
effectiveness of the Human Resource
imilar to a financial or tax audit, an HR audit gives businesses the opportunity to
identify any potential human resources compliance issues and establish HR best
practices. An HR audit reviews an organizations essential human resources
functions to determine the organizations compliance with state and federal
regulations.
Do your HR audit processes meet all the requirements of our six-step HR audit
checklist?
1. Determine the scope: The first step of conducting an HR audit is to determine
the scope of the audit. If an HR audit has never been conducted, a
comprehensive review of all policies and procedures is recommended. Going
forward, businesses may choose to conduct audits that focus on specific HR
functions, such as payroll or record keeping.

2. Develop a plan: The next step is to develop a plan for conducting the audit.
Identify the goals of the audit, assemble the audit team and create a timeline for
completing the audit.
3. Gather and analyze the data: Once the audit begins, the audit team should
gather all the applicable documents and forms under the scope of the audit. The
audit team should also review current and potential legal actions.
4. Produce a report: After all of the necessary information has been analyzed, the
next step is to create a report with the findings of the audit. This report should
identify any strengths and weaknesses found during the audit, as well as offer
recommendations to correct any instances of noncompliance.
5. Create an action plan: Once the audit is complete, company executives should
meet with the audit team to discuss the findings and formulate a plan to address
each problem or area of concern identified in the report. Action items may
include changes to policy, procedures and/or training practices. Organizations
should also consider their available resources when setting a timeline for
correcting noncompliance issues, and ensure any corrective actions are realistic
and achievable. In addition, organizations should take measures to ensure
the audit information is kept confidential and protected from unintentional
disclosure.
6. Evaluate the progress: Once corrective measures have been implemented,
organizations should continuously monitor and periodically review the new
processes or procedures to ensure the organization stays compliant.
For more in-depth information about conducting an HR audit, check out the HR Audit
webinar hosted by Nancy Edwards, a senior G&A Partners HR Advisor.
G&A Partners offers a lifeline to businesses by delivering both strategic as well as
tactical HR and administrative support. Our experienced human resources
professionals study the nuances of federal and state labor laws so they can help

companies understand and expertly execute procedural tasks

surrounding HR compliance. With G&A Partners managing your labor law and HR
compliance, you can rest assured that your employees are afforded the protection of
federal laws, and that you are protected against the risks of
regulatory noncompliance.

Q.3 What are the areas of HR Audit? Explain any four of them
ANS. Listing the areas of HR Audit.
What is an HR Audit?
A Human Resource Audit should provide a comprehensive assessment of HR
management activities and practices. This professional and objective review identifies
the gap between current efforts within HR and recommended practices. The audit
report should outline recommendations and practical solutions to close the gap
between current practices and proven HR best practices.
Recommendations
After conducting HR audits for organizations for many years, there are five
recommendations that are often listed in an HR audit report. These areas of concern
should be addressed by companies to limit liability and fines as well as improve
employee/employer relationships.
Explaining any four of them.

Recommendation #1:
Complete or correct 1-9 forms for all employees
An employer is required to have a completed I-9 form on file for each employee on the
payroll. This includes full-time and part-time employees of the company.
When reviewing I-9 forms, some common errors include:
the employee not signing the top section
proper forms of documentation not provided
information on documentation copied in incorrect areas on the form
hire date missing
company information incomplete or missing
company representative signature missing
When errors are found on the I-9 form, Immigration and Customs Enforcement (ICE)
requires correction of I-9 forms be done in a very specific way. Corrected forms do not
necessarily relieve a company from ICE fines and penalties.
Recommendation #2:
Develop or revise employee handbook
All companies should have an employee handbook whether there are 10 employees or
thousands of employees. The employee handbook provides information on the

companys policies, procedures and benefits. It outlines management and human

resource best practices and provides the employee with an understanding of company
expectations.
The contents of the employee handbook may vary depending on the number of
employees at any given company. For example, a company with less than 50
employees is not required to comply with the Family and Medical Leave Act (FMLA)
and is not required to have a FMLA policy in the handbook. Handbooks should be
reviewed and updated to ensure compliance with changes in laws and regulations and
to reflect changes in company benefits and policies. Every employee should receive a
copy of the employee handbook and sign an acknowledgment form stating they have
received and read the handbook.
Recommendation #3:
Develop or update job descriptions
There should be a job description for each position within a company. The employee
and the employees manager should have a copy of their job description and a signed
job description should be filed in the employees personnel file. The job description is
an important part of various HR processes including hiring, orientation and employee
performance management. Job descriptions often become outdated because they are
not reviewed on an annual basis. The job description should reflect the duties
performed by the employee at the present time. A current job description helps
employees understand their job duties, and it should be the basis for their
performance evaluations.
Recommendation #4:
Develop an interviewing/hiring process and provide training for managers
A structured interviewing/hiring process ensures the company selects the most
qualified applicants for all open positions. Its important to develop guidelines and
procedures for the process and follow them for all hiring decisions. Often managers
who are interviewing and hiring employees have not received proper interviewing
skills training. They may ask discriminatory questions or questions that are not
relevant to the position. Behavioral interviewing techniques are very helpful to
understand an applicants past skills and experience and determine if those skills and
experience are relevant to the skills and experience required for the position. Training
in behavioral interviewing is beneficial in selecting an applicant that is the most skilled
and the best fit for the position and the company.
Q.4 What do you mean by HR Scorecard? Explain the steps undertaken to approach a
Human Resource Scorecard
ANS

Definition of HR Scorecard

The HR scorecard is a method for Human Resources to position itself as a strategic

planning partner with line managers and executives within an organization. A detailed
and excellent book on this topic is The HR Scorecard, by Becker, Huselid, and Ulrich.
This book is available on either Amazon.com or the Society for Human Resource
Managements web site.

The premise for an HR scorecard is that HR can and should develop metrics to
demonstrate how HR activities impact profitability. The process we recommend is:
1.
2.
3.

Identify the critical deliverables for Human Resources.

Identify HRs customers (for the deliverables).
Define HR activities that provide the critical deliverables (such as high-talent
staffing or a retention initiative).
4.
Conduct a cost-benefit analyses of activities that provide deliverables.
Lastly, its important to ask the right questions to determine if HR is providing the
appropriate deliverables. Examples of these questions are:
1.

How many exceptional candidates do we recruit and retain for each strategic job
opening?
2.
How many hours of results-oriented training do new employees receive
annually?
3.
What is the differential in merit pay between high-performers and lowperformers?
Explaining the steps in HR Scorecard Approach
ANS The Seven Steps in the HR Scorecard approach to formulating HR policies
activities and strategies are,
1 Formulate Business Strategies:
2 Define the business strategy
3 Outline the companys value chain activities
4 Identify the strategically required organizational outcomes.
5 Identify Workforce Requirements Identify the required workforce behaviors
6.Formulate HR Policies and Practices Identify the strategically relevant HR system
policies and activities, such as new training and grievance systems.
7.Develop Detailed Scorecard Measures Design the HR Scorecard measurement
system
Periodically reevaluate the measurement system.

Value chain analysis is more than just a tool for identifying the ways things are done
now. It prompts questions such as: How do our costs for this activity compare with our
competitors? Is there some way we can gain a competitive advantage with this
activity? Is there a more efficient way for us to deliver these services? And do we have
to perform these services in-house? Outlining and analyzing the company value chain
can also help the HR manager create an HR system that makes sense in terms of the

firms strategy? For example, it can help him or her identify the organizational
outcomes the company absolutely must achieve if it is to achieve its strategic goals.
For example, at a Medical services company delivering new services was so critical to
what they had to accomplish, it was obvious it had to be a core value chain activity.
This in turn can help the HR manager better understand what employee behaviors and
competencies are required and what HR policies and activities (HR system) would
produce these behaviors and competencies.

Q.5 Write a brief note on the effectiveness of Human Resource Development Audit as
an
intervention.
ANS. Perhaps India is the first country to formally establish a totally dedicated HRD
(Human Resources development) Department separated from the Personnel
Department. This was designed in the year 1974 when the term HRD itself was not
very popular in the USA. Two consultants from the Indian Institute of Management ,
Ahmadabad after reviewing the effectiveness of the performance appraisal system
and training in Larsen & Toubro recommended an Integrated HR System to be
established and the department dealing with development issues be separated out
from the personnel department and be called the HRD
Methodology :A team of auditors visit the corporation and using a variety of
methodologies assess the appropriateness and adequacy of the various HRD systems,
strategies, structures, competencies, culture, processes etc. The methodology used
include: Interviews Questionnaires Observation Secondary data analysis And
Examination of documents and communications The audit starts with a brief by the
CEO and the Chief of HR who may set an agenda and focal areas of evaluation. The
interview with the top management starts with finding out details of the future plans
of the organizations and uses it as a base for outlining the competency requirements
of the organization. The current competencies, structures, HRD systems etc. are
assessed in terms of their capability to prepare the organization for the future.
Suggestions are made to improve for achieving the future business goals and plans.
The HRD audit is contextual and at the same time uses the available knowledge of the
potential of the HRD systems in helping the corporation achieve its goals.

Q.6 What do you mean by Employee Orientation Programmes? List out some
points of Good employee orientation programmes.
ANS. Definition of Employee Orientation Programmes
Employee orientation, also commonly referred to as onboarding or organizational
socialization, is the process by which an employee acquires the necessary skills,
knowledge, behaviors, and contacts to effectively transition into a new organization
(or role within the organization).
List of Good employee orientation programmes

Employee orientation, as an integral part of Government's human resource

development strategy, provides employees with the information necessary to begin or
continue a successful career in the Newfoundland and Labrador Public Service.
Employee orientation promotes a broad understanding of Government as a public
institution. The process contains a consistent message about work in the Public
Service and the basic expectations of Government as an employer.
Employees who are new to the job require essential information related to their work
and their work environment. Within a reasonable time following their appointment,
employees require orientation to their duties, work environment and terms and
conditions of employment. The end result should be a solid foundation for a
successful, long-term working relationship between employer and employee.

Goals of Orientation

Specific Roles and Responsibilities

Sample Orientation Timeline

Onboarding Checklist

Employee Handbook

Manager's Guide

Onboarding Schedule