HUMAN RESOURCE

DEVELOPMENT
PRESENTATION
 TOPIC OF
PRESENTATIO
STRATEGIC N:
PERSPECTIVES
IN HRD
 • HRD interventions

• Career Planning

• Training

• Systems Development

CONTENT • Rewards

S:
• Employee Welfare and
Work Life Balance

• Roles of HR Developer

• HR Accounting

• HRD Audit
 STRATEGIC HUMAN RESOURCE
DEVELOPMENT (HRD)
• Strategic HRD definition was given by Walton(1999) :
Strategic human resource development involves
introducing, eliminating, modifying, directing and guiding
processes in such a way that all individuals and teams
are equipped with the skills, knowledge and
competences they require to undertake current and
future tasks required by the organization.
• It takes a broad and long-term view about how HRD
Policies and practices can support the achievement of
business strategies.
• Aim-> Enhance the resource capability in accordance
with the belief that human capital of an organization
is a major source of competitive advantage.
• Examples-> Compensation planning, succession
planning and employee development.

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 HRD INTERVENTIONS
• Human Resource Development (HRD) is the
framework of systematic and planned practice
designed by organization for helping
employees develop their personal and
organizational skills, knowledge and abilities.
• HRD Interventions are activities or programs
designed to improve the skills, knowledge,
abilities and overall performance of employees
within an organization.
• They aim to enhance individual and
organizational effectiveness by addressing
various aspects of human capital development.
• Some common HRD interventions are Training
& Development, Coaching & Mentoring,
Performance Management, Career
Development, Succession planning etc.

Img source: JP Singh(1989),” Choosing HRD” https://youtu.be/QDAdwwOVa6A?si=r9WuGYEoBrrggEvQ

 1.PERFORMANCE APPRAISAL

• A performance appraisal is a regularly scheduled

formal process evaluating an employee’s overall
performance and contribution to the company with the
goal of improving that performance.
• It is also known as performance review, performance
evaluation or employee appraisal.
• It happens once or twice a year, takes place at the
start of the year and around the half-year point.
• Identifying opportunities for improvement based on
pre-determined goals and metrics is key goal of
performance appraisals.
• For example- employees might need specific training to
perform better.

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https://unstop.com/blog/performance-appraisa
 IMPORTANCE

a) Feedback Mechanism-> Structured process for employees to

receive feedback on their work.
b) Goal Alignment-> Helps to align individual performance with
organizational goals by how well employee’s efforts contribute to
achieve broader objectives.
c) Motivation & Engagement-> Recognize employees achievements
and provide constructive feedback can boost morale, motivation etc.
d) Decision Making-> Inform various HR decisions like promotions,
transfers and terminations.
e) Legal Compliance-> Implementing performance appraisals
ensures that organization complies with legal requirements.

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CASE STUDY
-
ZARA
 Background:
Zara is a renowned Spanish clothing retailer known for its fast-fashion business model. It operates in a highly competitive
industry where innovation and customer focus are paramount.
Implementation:
a) Objective-driven Approach-> Zara emphasizes setting clear and measure the objectives aligned with individual roles and
organizational objectives.
b) Continuous Feedback Culture-> Zara fosters a culture of continuous feedback where managers provide ongoing
guidance, support and recognition to their team members.
c) Competency-based Evaluation-> Performance appraisal at Zara focuses not only on achieving specific targets but also
demonstrate key competencies which are essential for success.
d) 360-Degree Feedback Mechanism-> Zara implements a 360-degree feedback mechanism where employees receive input
from peers, subordinates and customers and gains insights into their strengths.
e) Recognition and Rewards-> Zara values and rewards high performance through various recognition programs, incentives,
and opportunities for career advancement.
f) Development and Training Initiatives-> Zara invests in employee development and training initiatives to enhance skills,
knowledge and capabilities across the organization.
Outcome:
• Implementing a robust performance appraisal system has yielded several positive outcomes for Zara.
• Improved employee engagement and job satisfaction through regular feedback and recognition.
Conclusion:
Zara’s strategic approach to performance appraisal underscores its commitment to nurturing talent, driving excellence and
sustain competitive advantages in a rapidly evolving retail landscape.
2. POTENTIAL APPRAISAL
2. POTENTIAL
APPRAISAL
• Potential can be defined as ‘ a latent but unrealised ability’.
• It includes the possible knowledge, skills and attitudes the
employee may possess for better performance.
• Potential appraisal refers to the appraisal i.e. identification
of the hidden talents and skills of a person.
• The person might or might not be aware of them. It is a
future- oriented appraisal whose main objective is to identify
and evaluate the potential of the employees to assume
higher positions and responsibilites in the organizational
hierarchy.
a) To inform employees of their future
prospects
b) To enable the organisation to draft
a management succession
programme
c) To update training and recruitment
activities
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 STEPS OF POTENTIAL APPRAISAL

1.Role Description: A good potential appraisal system would be based on clarity of

roles and functions associated with the different roles in an organisation.
2. Qualities Required: Besides job descriptions, it’s necessary to have a detailed list
of qualities required to perform each of these functions. Majorly four categories are
Technical knowledge & skills, Managerial capabilities, Behavioural & Conceptual
Capabilities.
3. Indicators of Qualities: A good potential appraisal system besides listing down the
functions and qualities would also have various mechanisms for judging these
qualities in a given individual.
• Some of these mechanisms are rating by others, Pyschological tests, Simulation
Games and exercises etc.
4. Organising the System: Once the functions, the qualities required performing
these functions, indicators of these qualities and mechanisms for generating these
indicators are clear, the organisation is in a sound position to establish and operate
the potential appraisal system.
5. Feedback: If the organisation believes in the development of human resources it
should attempt to generate a climate of openness.

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 CASE
STUDY-
NIKE
 Background:
Nike, Inc., the global leader in athletic footwear and apparel, places a strong emphasis on maximizing
the potential of its workforce. One critical aspect of this endeavor is the effective appraisal of
employees potential.
Methodology:
Nike employs a multifaceted approach to potential appraisal, incorporates various tools and techniques:
a) Performance Reviews-> Regular performance evaluations serve as a foundational element of potential appraisal at Nike.
b) 360-degree Feedback-> Nike utilizes a 360-degree feedback mechanism to gather insights from multiple sources,
including peers, subordinates and supervisors.
c) Individual Development Plans (IDPs)-> Following performance evaluations, Nike collaborates with employees to create
personalized IDPs.
d) Talent Reviews-> Nike conduct talent reviews at various organizational levels to assess and calibrate employee potential.
Challenges:
Despite its comprehensive approach, Nike faces several challenges in appraising employee potential;
1. Subjectivity-> Evaluating potential inherently involves a degree of subjectivity, leads to biases and inconsistencies in
assessments.
2. Dynamic Nature-> Employee potential is dynamic and subject to change over time and necessitates continuous reassessments.
3. Data Management-> Managing vast amounts of performance and feedback data poses logistical challenges.
Outcomes:
• Succession Planning->Effective potential appraisal facilitates succession planning and ensures a pipeline of capable
leaders.
• Skill Enhancement-> Employees benefit from targeted development initiatives tailored to their unique stengths and
Conclusion:
growth areas.
Nike’s approach to potential appraisal underscores its dedication to unlocking the full capabilities of its workforce.
 3. PERFORMANCE
3.PERFORMANCE
COACHING
COACHING
• Performance coaching is the process of helping
individuals or groups identify their strengths and
areas for improvement to achieve their goals.
• It’s a powerful tool for anyone who inspires to
develop professional skills and progress in their
career.
• Companies now spend billions of dollars on
performance coaching to help employees and
executive leaders improve the critical skills that
boost their productivity and performance.

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https://www.noomii.com/performance-coaching
 CASE
STUDY-
AXELERA
NT
 Background:
• Axelerant is a digital experience agency that offers integrated strategy, design and engineering services.
• Customers include software partners like Acquia and Red Hat, digital agencies like Blue State and institutions like
Stanford University,The US.
• Headquartered in India, with subsidiaries in the U.S., Canada, the U.K. etc.
Approaches:
• Axelerant adopts a holisitc approach to performance coaching and integrate various methodologies. It
includes following steps:
a) Goal Setting-> Employees collaborate with managers to establish clear and measurable goals ( SMART) .
b) Regular Feedback-> Managers provide ongoing feedback to employees, focusing on strengths and areas for
improvement.
c) Skills Developments-> Axelerant offers a wide range of learning and development opportunities which
includes online courses, workshops and mentorship programs.
Challenges:
• Diverse workforce- Individuals are from diverse cultural backgrounds
• Skill Development-Employees need ongoing support to acquire new skills
• Remote Work Dynamics- Presents challenges in fostering team cohesion, communication
and collaboration.
Conclusion:
• Performance Coaching at Axelerant is integral to cultivating a high-performance culture and
empowering employees to reach their full potential.
 4.
4. FEEDBACK
FEEDBACK

• It refers to the process of providing

individuals or groups with information
about their performance, behavior, or
outcomes in order to facilitate learning,
growth, and improvement within an
organizational context.
• It involves both giving and receiving
constructive information to enhance
individual and organizational
effectiveness.

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https://fastercapital.com/topics/the-benefits-of-getting-feedback.html
CAREER
PLANNING
 Career planning is the
continuous self-evaluation and
planning process done by a
person to have a strong career
path which is aligned with one's
career goals, aspirations and
skills. Career planning process
in the continuous reiterative
process of understanding
oneself, setting career goals,
revising skills and searching for
the right career options which
may include basic skills,
specialized education and job
options.
IMPORTANCE OF CAREER PLANNING
• Set Clear Goals: A career plan helps you set clear goals for your future. By
defining what you want to achieve in your career, you can create a roadmap
to success.
• Identify Your Strengths and Weaknesses: Developing a career plan requires
you to engage in self-reflection and self-awareness. By identifying your
strengths and weaknesses, you can choose a career path that aligns with your
abilities and interests.
• Find Job Satisfaction: Having a clear career plan can help you find a job that
aligns with your skills, interests, and values. When you are satisfied with your
job, you are more likely to be productive, engaged, and successful.
• Achieve Financial Success: Finally, having a career plan can lead to financial
success. By setting specific goals and mapping out a career path, you can
make informed decisions about education, training, and job opportunities that
https://www.google.com/url?
 8 Objectives of career
planning

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TRAINING
Training refers to a system of
educating employees within a
company. It includes various
tools, instructions, and
activities designed to improve
employee performance. It's
an opportunity for employees
to increase their knowledge
and upgrade their skills.
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 Role of HR in
training
• Employee guidance and mentorship
• Monitoring employee performance
• Gathering feedback and interpreting data collected
• Providing enhancement activities and educational
platforms
• Supplying sufficient on-the-job training
• Boosting employee morale and motivation
• Ensuring employees' overall well-being
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 5 Processes in training
Training and Development consists of 5 related processes. These
processes do not have a distinct beginning, middle, and end. Instead, they
overlap with each other to fulfill their intended purpose.
The processes are:
• Assessment of training needs and resources
• Motivation of trainers and trainees
• Design of training programs and materials
• Delivery of training
• Process and outcome evaluation
When done correctly, each process can lead to significant growth in your
employees. Take note, no two employees or organizations are exactly
alike.
Case Study on Amazon

This successful e-commerce company has committed to upskilling more than

300,000 of its employees. Amazon's Upskilling 2025 pledge is meant to provide
workers with the training they need to secure new and high-growth jobs.

Some of the programs offered by the company are as follows:

• Machine Learning University
• Mechatronics and Robotics Apprenticeship
• Amazon Technical Apprenticeship
• User Experience Design and Research Apprenticeship

Additionally, Amazon provides over 750,000 operations employees with fully funded
tuition eligibility. In doing so, the company clearly values the education of its
employees. It wants to prepare them for the future.
Indeed, Amazon is surely a model company when it comes to training and
development.
WHY ARE REWARDS IMPORTANT?
Rewarding employees is important for
several reasons:

• Motivation: Rewards serve as

positive reinforcement for desired
behaviors and achievements. They
motivate employees to perform at
their best.

• Retention: Recognizing and

rewarding employees for their
contributions increases job
satisfaction and loyalty. This reduces
employee turnover and the
associated costs of recruiting and https://www.ismartrecruit.com/upload/blog/main_image/
Top_8_Great_Ways_to_Reward_Your_Employees.webp
training new staff.
• Productivity: Motivated and engaged employees are generally more
productive. By rewarding high performance and accomplishments,
organizations can drive productivity levels and achieve better
results.

• Talent attraction: A reputation for valuing and rewarding employees

can attract top talent to the organization. Potential candidates are
more likely to be attracted to companies that offer competitive
compensation and recognition programs.

• Positive work culture: A culture of recognition and appreciation

promotes a positive work environment where employees feel
supported, respected, and empowered. This, in turn, enhances
collaboration, teamwork, and overall morale within the
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TYPES OF REWARDS
 Monetary Rewards:

• Salary increases: Regular pay raises based on performance or tenure.

• Bonuses: One-time or periodic bonuses for achieving targets, meeting

deadlines, or exceptional performance.

• Profit-sharing: Sharing company profits with employees based on

predetermined criteria.

• Stock options: Offering employees the opportunity to purchase company

stock at a discounted rate or as part of their compensation package.

• Team-based incentives: Offering rewards to entire teams or departments for

achieving collective goals or milestones.
 Non-Monetary Rewards:
• Recognition and praise: Publicly acknowledging employees' achievements and
contributions.

• Opportunities for career advancement: Promotions, additional responsibilities,

or access to training and development programs.

• Flexible work arrangements: Allowing employees to have more control over

their work schedules, such as telecommuting or flexible hours.

• Employee perks: Providing benefits such as gym memberships, wellness

programs, or discounts on products and services.

• Personalized rewards: Tailoring rewards to suit individual preferences and

interests, such as gift cards, vouchers, or experiences.
 WHAT IS EMPLOYEE WELFARE?

Employee welfare refers to the efforts made by an

organization to ensure the well-being, health,
safety, and overall quality of life of its employees.
It encompasses various initiatives, policies, and
programs designed to support employees both
inside and outside the workplace.
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 CASE STUDY ON
EMPLOYEE WELFARE
Reliance Industries Limited (RIL) is one of India's largest
conglomerates, operating in various sectors including petrochemicals,
refining, oil & gas exploration, retail, telecommunications, and more.

Some of the Employee Welfare Initiatives are:

Health and Safety Programs:

• RIL prioritizes the health and safety of its employees by

implementing stringent safety protocols and providing a safe
working environment across its facilities.

• The company offers comprehensive health insurance coverage for

employees and their families, including medical, dental, and vision
benefits.
Wellness Initiatives: RIL promotes employee wellness through various
initiatives such as wellness workshops, health screenings, fitness
programs, and access to onsite gyms and recreational facilities.The
company may offer employee assistance programs (EAPs) to provide
counseling and support services for personal or work-related issues.

Financial Assistance: RIL provides competitive salaries and benefits

packages to attract and retain talent, including performance-based
bonuses, retirement plans, and stock options.The company may also
offer financial education resources and workshops to help employees
improve their financial literacy and manage their finances effectively.

Career Development and Training: RIL invests in employee development

through training programs, workshops, and educational opportunities to
enhance employees' skills and capabilities.
WORK-LIFE BALANCE
Work-life balance refers to the equilibrium an individual seeks between their professional
responsibilities and personal life. Achieving a healthy work-life balance is crucial for
maintaining overall well-being, reducing stress, and enhancing job satisfaction.

Strategies of work-life balance:

• Setting Boundaries: Establish clear boundaries between work and personal life. Define
specific times for work and leisure activities, and try to stick to them as much as possible.

• Prioritization: Identify your priorities both at work and in your personal life. Focus on tasks
and activities that are most important and meaningful to you, and allocate your time
accordingly.

• Time Management: Manage your time effectively by scheduling tasks, setting deadlines, and
avoiding procrastination. Use tools such as calendars, planners, or time-tracking apps to
help organize your schedule.

• Flexible Work Arrangements: Explore options for flexible work arrangements, such as
telecommuting, flextime, or compressed workweeks. These arrangements can provide
greater autonomy and allow for better integration of work and personal responsibilities.
ROLES OF
HR
DEVELOPER
 HR DEVELOPER V.S
HR MANAGER:
IS THERE A DIFFERENCE?
The role of HR manager and HR developer is a closely interelated
one within an organization. Although these two terms may seem
similar, there is a distinct difference between them. An HR
manager is focused on short term and operational functions like
recruitment, selection and compensation. An HR Developer
priorities long term and strategic functions like career planning,
training and development and succession planning.
 Talent
Manageme
nt
Performance Successio
Management n Planning

ROLES OF
DEVELOPER
Training and Organization
Development al
Career Development
Planning
 TRAINING
HR Developer is responsible for analysing the
training needs of employees. After figuring
out the training needs, the HR designs a
training program and implements it. Finally,
the effectivenes of the training program is
evaluated.
Image Source: https://youtu.be/wjEaKtDrhJM
 EXAMPLE: TRAINING NEEDS ANALYSIS
ON INFOSYS
Infosys conducts its training needs analysis in three
ways:

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 CAREER PLANNING
HR Developers also take an active role in the career development of
the employees by providing guidance in the right direction. They can
set up systems to help employees identify their weaknesses and work
on them. Career Planning initiatives include: Mentoring & Coaching
Courses & Certifications, Training programs, and Seminars &
Workshops.
EXAMPLE: Google's Career Guru program pairs employees with
experienced mentors to help them navigate their career paths
within the company. This one-on-one mentorship not only imparts
valuable knowledge but also fosters a sense of belonging and long-
term commitment among employees.
 TALENT MANAGEMENT
MANAGEMENT
Talent Management is concerned with recruiting the right kind
of talent . An HR developer carries out this function by picking
people that will help in the achievement of the organisation's
achievements.

EXAMPLE: Google encourages continuous learning through its

Google University program, offering courses on various subjects,
including technical skills and leadership development. Employees
are empowered to enhance their knowledge and skills
continuously, aligning their personal growth with the company's
needs.
Image Source: https://bit.ly/3TCPlgD
 PERFORMANCE MANAGEMENT
HR Developers have to
implement various
performance management
strategies such as goal
setting, performance
tracking with appraisal and
reward systems to ensure
that any gaps in
performance of employees
are overcome.
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 EXAMPLE: GOOGLE’S INNOVATIVE
APPROACH TO PERFORMANCE
MANAGEMENT
Instead of traditional annual reviews, they employ a system called
"Objectives and Key Results" (OKRs). This method encourages
employees to set clear, measurable goals and regularly assess their
progress. This approach provides more timely feedback and aligns
employees' efforts with the company's objectives. To enhance the
effectiveness of OKRs, Google uses a tool called "Google Grader" that
helps employees gauge the quality and impact of their objectives,
promoting continuous improvement.
 SUCCESSION PLANNING
Succession planning is essential in every organisation
to ensure that critical positions are not left vacant for
extended periods of time. HR Developer has to be
futuristic and keep a track of potential candidates
who fill in the senior roles effectively.
ARTICLE ON SUCCESSION PLANNING
IN TATA (The Economic Times):
 ORGANISATIONAL DEVELOPMENT
HR Developers can align their HR strategies
with the overall organisational objectives to
achieve the goals.
They can work together with
the top management to
identify areas of
improvement, develop talent
pipeline and enhance
organisational objectives.
 HR ACCOUNTING

Human Resource Accounting (HRA) is a branch of

accounting that involves the identification,
measurement, and reporting of the value of human
resources as an organizational asset. HRA involves
quantifying the value of human resources in
financial terms, which can be used to make
informed decisions regarding investments in the
workforce, talent retention, and talent
development.
Features of HR Accounting
Resource Allocation Optimization
By assessing the value of human capital, HRA helps optimize resource allocation, enabling
organizations to invest wisely in areas that contribute most to their success, such as training or
talent acquisition.

Decision Making
Helps make smart choices about managing people, like figuring out how many staff we need,
finding ways to improve employee performance, and seeing how changes in pay and benefits
affect things..

Performance Evaluation
HRA helps assess how well employees are doing and how HR practices affect their work. It
helps find ways to improve performance and make plans to boost productivity.

Long Term Planning

HRA supports long-term planning by helping organizations understand the sustainability of
their human capital investments and develop strategies for continued growth and success
Methods of HR
Accounting
Cost Approach
it involves determining the total cost of recruiting and hiring each employee , as well as the

Method
cost of any training or development.

In the In the acquisition cost method, organizations capitalize on all costs

ACQUISITION related to human resources (like training, welfare, and another cost) of the
COST METHOD organization and amortize it in the profit and loss account throughout from
appointment till retirement.

It is used to determine whether to keep or replace the worker. It considers

REPLACEMENT
the cost of replacing the human resource or employee. This method also
COST
helps in determining whether the appointment of employees is beneficial
APPROACH
to the organization or not.
Value Approach
The present value of future earning is the value of human resources based on the capacity of

Method
future earnings of that human resource.

In this method, the present value of all future benefits to employees is

PRESENT VALUE
determined to know whether the organisation can afford the cost that can
METHOD
be able to gain in the future from cost incurred on human resource

In this method, the most valuable employee of the organization is

VALUE TO THE
determined and measured whether the organization is earning premium
ORGANISATION
profits from the services of that employee and helps in finding the value of
METHOD
that employee.

This method divides the employees into two categories: Decision-making

EXPENSE MODEL category and decision execution category, and then determine the actual
METHOD cost incurred on both categories and determine whether it is beneficial to
the organization or not.
Models of HR Accounting
1971, In this model the present value of future benefits to employees is
determined on the assumptions like their salary, earnings till retirement
etc.
1996, This model is similar to the Present value model but
considers the fact of employees leaving earlier, Voluntary
Retirement or Retrenchment or death of the employee, etc.

This method includes all benefits to the employees like

retirement benefits, gratuity, etc. on proper assumptions and
then discounted to know the present value and benefits to
the organization.
1960s, This model considers the non-monetary benefits to the
employees by the organization like job satisfaction, productivity,
and other non-monetary benefits.

1976, in this model, net benefits from each employee are calculated and then
multiplied with its certain period of working with the organization.
 Detailed explanation
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of all the models in HRA

A Case study on HRA

in infosys
Back to Agenda Page
 HR AUDIT
An HR audit is a systematic method of investigating
the HR department’s practices, policies, and
procedures. It helps identify gaps in HR practice
areas, and HR can prioritize these gaps by identifying
ways to improve. it can be primarily categorized into
two areas: risk mitigation and value creation. Risk
mitigation focuses on legal areas and employee-
related lawsuits. Value creation, on the other hand,
focuses on improving HR policies and processes to
maximize the value of the employees.
 Benefits of HR Audit
Identify reasons for low productivity
By examining ,audit can identify bottlenecks, gaps in training, or ineffective management
practices that may be hindering productivity. helps in overall organizational efficiency

Staying up to date with laws & regulations

it helps organizations keep up with changing employment laws and regulation. This mitigates
legal risks, avoids penalties or lawsuits, & helps maintain a strong reputation for ethical
business practices

Gain a competitive advantage

it allows organizations to assess their HR practices against benchmarks & best practices. This
helps identify areas for improvement , enhancing HR capabilities ,creating a positive
employer brand

Low employee turnover

Gaps in compensation and benefits, and employee engagement initiatives are identified.
Employee satisfaction is improved by assessing the reasons for turnover which helps in
employee retention
 Types of HR Audit

CONDUCT
TIME PERIOD PURPOSE
In this category, HR audits can be further
classified based on how organizations conduct
Refers to the frequency of HR INTERNAL AUDIT -
the audits:
audit. Since they are very time- Internal audit takes COMPLIANCE AUDIT
consuming and require review place within the
of numerous documents, organization & is
practices, policies, etc., conducted by the HR
STRATEGIC AUDIT
organizations follow an department
irregular schedule for HR audit. EXTERNAL AUDIT -
Some organizations conduct HR When organization do
audits once a year or once in not prefer to conduct an JOB SPECIFIC AUDIT
three years. HR audit internally they
hire external companies
BEST PRACTICES
or professional to do the
job
ORGANIZATION
AUDIT
Audit as per purpose
While HR audit covers most HR processes, policies, and practices, organizations
conduct the audit for different, specific purposes. These purposes are classified into:

States how well a business is complying with all employment laws and
COMPLIANCE AUDIT
regulations. It helps the organization prevent violations of any laws .

A strategic HR audit looks beyond the internal HR operations and tries to

STRATEGIC AUDIT
align the department’s contribution with an organization’s strategic goals

HR audit is focused on a specific role or job performed by the HR

JOB SPECIFIC AUDIT department. It could be related to recruitment, training, performance,
etc. .

BEST PRACTICES
Best practices organization audit refers to reviewing the best HR practices
ORGANISATION
of other similar organizations and trying to adopt them.
AUDIT
7 Effective Process of HR
Audit

DATA MONITOR
OBJECTIVES DEVELOP
ANALYSE & EVALUATE
PLAN

DATA
IDENTIFYING IMPLEMENT
COLLECT
AREA PLAN
Process of HR Audit
The first step in an HR audit process is to define the scope and objectives
1. Define the Scope
of the audit. This includes determining which areas of the HR function will
and Objectives
be audited and what are the expected outcomes.

The next step is to collect data on the HR function. This includes reviewing
2. Collect Data HR policies & procedures, HR metrics such as turnover, employee
satisfaction.

Once the data has been collected, it needs to be analyzed to identify

3. Analyze the Data
areas of strength and weakness in the HR function.

Based on the data analysis, the next step is to identify areas for
4. Identify Areas For improvement in the HR function, includes developing new policies and,
Improvement updating existing ones, and implementing new HR programs and
initiatives
Process of HR Audit
After identifying areas for improvement, an action plan should be
5. Develop An
developed to address them. The action plan should include specific
Action Plan
recommendations, timelines, and responsibilities for implementation.

Once the action plan has been developed, it needs to be implemented.

6. Implement The
This may involve training HR staff, communicating changes to employees,
Action Plan
and updating HR policies and procedures.

The final step, This includes tracking HR metrics, soliciting feedback from
7. Monitor And
employees, and making adjustments as necessary to ensure that the HR
Evaluate
function is meeting organizational goals and legal requirements.
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HRD
References

1. Papertyari.com
2. Uk.indeed.com
3. T.N. Chhabra
4. https://www.pelagohealth.com/resources/hr-glossary/employee-
welfare/
5. https://hrzone.com/glossary/what-is-work-life-balance/