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‡ HRD is any process or activity that, either initially

or over the longer-term, has the potential to
develop adults work-based knowledge, expertise,
productivity, & satisfaction, whether for personal
or group/team gains or for the benefit of an
organisation, community nation or ultimately the
whole humanity
- McMc

‡ Competence Building

‡ Commitment Building

‡ Culture Building

V |   › › 
›  › › ››  
   ›  › 
 ›   › › 
|   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.

|   is evaluation of |  is a comprehensive

only few activities :- evaluation of the entire gamut
of HR activities :-
‡ Strategies,
‡ Structure, ‡ HR Cost
‡ Systems, ‡ HRD activities
‡ Styles ‡ Health, Env. & Safety
‡ Skills & Competencies ‡ Legal Compliance
‡ Culture ‡ Quality
‡ Compensation & Benefits

‡ In HRD Audit the skills, styles, systems, strategies,

structure is studied and analysed using a variety of
methodologies like
² interviews, (Individual and group, Top Management, Line Managers,
HRD Staff, Workmen and others)
² questionnaires,
² observations,
² available records,
² workshops etc.

‡ This evaluation helps the organisation have a clear

understanding of the lacunae and better align the
HR processes with business goals.
§   |       

‡ To make the HR function business-driven.

‡ Change of leadership.
‡ To take stock of things & to improve HRD for expanding,
diversifying, & entering into a fast growth phase.
‡ For growth & diversification.
‡ For promoting professionalism among employees & to switch
over to professional Management.
‡ To find out the reasons for low productivity & improve HRD
‡ Dissatisfaction with a particular component.
‡ To become employer of choice.
Y  Y


‡ 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
Y  Y


‡ Improvements in HRD systems

‡ Increased focus on human resources and human


‡ Better recruitment policies and more professional


‡ More planning and more cost effective training

‡ Strengthening accountabilities through appraisal

systems and other mechanisms



Competent and committed employees are

needed to provide quality products &
services at competitive rates & ways that
enhance customer satisfaction.

üame of the Organisation ABC

|  |  |   §
a    ! | 

"  "  ""

‡ These four indices consist of the four pillars of HRD effectiveness. All the four
dimensions are assessed using following ten point rating system.
Highest Score and Highest Maturity Level
Very High Maturity level
 High Maturity Level
 Moderately High Maturity Level
 Moderate Maturity Level
 Moderately low Maturity level
 Low Maturity Level
 Very low Maturity level
 Not at all present
Components to be audited


The HRD systems maturity assesses the

extent to which various HRD subsystems
and tools are well designed & are being

X The systems should be appropriate and relevant to

business goals.

X It should focus on current and future needs of the


X The HRD strategies and systems should flow from

the corporate strategies.


X The systems should be well designed and should

have a structural maturity.
X They should be implemented well.
X The employees should be taking them seriously implemented
X The employees should be taking them seriously and follow
meticulously what has been envisaged in each system.
X The overheads of implementation should be low.

X The subsystems should be well integrated and

should have internal synergy.
X They should be adequate and should take care of
the HRD requirements of the organisation.


‡ The following subsystems are assessed and

depending upon the extent to which they
meet the requirements a score is assigned.
X Manpower planning and recruitment

X Performance Management Systems

X Feedback and Coaching Mechanisms

X Training

X Career development and Succession planning


X †ob-rotation

X OD Interventions

X HR Information systems

X Worker Development methods and systems

X HR Information Systems

X Potential Appraisal and Development

X Other subsystems if any


This dimension indicates the extent to which HRD

competencies are well developed in the organisation.

X The HRD Staff

X The Top Management

X Line managers and Supervisory Staff

X Union and Association leaders

X Workmen, Operators and Grass root level employees



X The level of HRD skills they possess

X Their attitudes and support to learning and their own


X Extent to which they facilitate learning among others in the

corporation and those who work with them.

X Their attitudes and support to HRD function and systems

X Internal efficiency of the HRD function (HRD Department)


- How professionally qualified are they?

- Do they seem to demonstrate adequate knowledge base?

- Are adequately trained in the appropriate HRD systems?

- Are they sensitive to internal customer requirements?

- How good is their skill base in implementing various


- Do they demonstrate OCTAPACE values?

- Are they quality conscious?


- Are they familiar with the business goals of the


- Are they cost conscious?

- Are they empathetic?

‡ Do they spend adequate time trying to understand

the requirements of all categories of employees?
‡ Do they understand HRD and its significance in achieving
business goals?
- How supportive are they of HRD interventions and values?
- Are their leadership styles facilitative of a learning culture?
- Are they willing to give the time needed for HRD?
- How well do they subscribe to the HRD values like the
OCTAPACE values?
- How well do they practice HRD values.
- How committed are they to create a learning culture in the
- Do they invest their time, effort and energies in employee

- How much do they understand the significance of


- Are they interested and motivated to develop


- Are they willing to spend their time and effort in

developing their subordinates?

- How supportive are they of HRD efforts?

‡ Do they have listening and other skills required

facilitating development of their juniors?


- How much developmental role are they playing?

- Do they see their own role in HRD?

- Are they committed to create a learning organisation?

- Are they willing to promote employee development?

- Are they positive in their approach and perceive their own

roles a supportive of organisation building?

‡ Do they perceive the significance of Employee development

for organisation building?

X Adequacy of manpower
X Appropriateness of the structure
X Cost consciousness of staff
X Quality consciousness of the HRD staff
X Responsiveness of the HRD department to the needs of
employees, Managers, Staff, Workmen, Union Leaders?
X Level of Internal customer satisfaction
X Internal operational efficiency of the department?
X Level of internal synergy among staff?
X Are they the first to implement HRD systems? Do they
implement them in an exemplary way?
|      #

A HRD Competency maturity core is assigned on the basis of

the competency levels of all categories.

‡ " $ All categories of employees have extremely high

competence base in HRD (knowledge, attitudes, values and
skills) and the HRD department has a high internal efficiency
and satisfaction levels.
‡  $ The competence levels of every group is at an acceptable
level and the internal efficiency of the HRD department and
the internal customer satisfaction are acceptable levels.
‡  $ The competencies of more than one group are below
acceptable levels and/or the HRD department is not
internally efficient and does not meet the requirements of the
minimum internal customer satisfaction.
‡ %$ Total failure on almost

‡ The extent to which the leadership and managerial

styles are empowering and competence building is
assessed by studying the leadership and
supervisory styles.

‡ The extent to which the HRD culture and values

are practised and stabilised in the corporation are

² The HRD culture is culture that promotes Human

potential development.
² It is also a culture that promotes a learning organisation.

‡ This score indicates the extent to which HRD

efforts (tools, processes, culture etc.) are driven to
achieve business goals.
‡ The business goals includes:
- Business Excellence including profitability and other
outcomes the organization is expected to achieve;
- Internal operational efficiencies;
- Internal Customer satisfaction;
- External Customer satisfaction;
- Employee motivation and commitment;
- Cost effectiveness and cost consciousness among
‡ Quality orientation;

Thank You

|  &

Aims at evaluating & improving Aims at improving workforce

HRD competencies in any practices in software industry.
Focus is on People & HR practices

Based on Quality, TQM & process Based on HRD - HRD strategies,

improvement models. structure, competencies, styles, &
culture & takes into consideration
Quality concerns & OD

Conceptualises the organisation Does not believe that organisation

as passing through 5 maturity could be classified into any stage or
levels, one superior to the other & level, assumes that any organisation
describes process areas of each could be assessed on a 10 - point
level. maturity scale on any given

u ()




!+ & 

‡ 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

X Examines long term and short term plans and vision to
assess Competency requirements

X Identifies broad competency requirements for future Business


X Examines the existing HRD strategies, systems and practices

and assess their appropriateness to have the required

X 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

X Suggests mechanisms for improving all these in the business

‡ 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. á  |    
- HRD Systems Maturity
- HRD Competencies of the Employees including the HR Department
- HRD Culture of the Organization
- HRD Influence on the Business Goals or Business Linkages of HRD.
  " !


 | # ! 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 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.
$ á | ! 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 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
| " " 

The HRD system should focus on the above dimensions.

- Are the HRD systems aligned towards the above mentioned or

other important business goals of the corporation?

- Does the HRD staff reflect adequate understanding the

commitment to the business goals of the organisation?

‡ Are the HRD processes and culture drive employees and the
corporation and interviews of the auditor with the employees.
Similar ratings are assigned for this dimensions.