MBA SEMESTER – III

ASSIGNMENT – Set 1

Name : Esha Sengupta

Registration No. : 571117742

Learning Centre : Gariahat

Learning Centre Code : 01626

Course : MBA(HR)

Subject : HR Audit

Subject Code : MU0013

Semester : IIIrd

Date of submission : 7/2/2013

Q1. What are the main objectives of human resource planning?Ans . Human resource planning is the term used to describe how companies ensure that their

staff comprise of “Right person for doing the job”. It includes planning for staff retention, planning for candidate search, training and skills analysis and much more.The main objectives of Human Resource Planning are as follows: 1. To determine the number of employees to be employed: If organization has more number of employees than actually required, then the workforce will consist of underutilized staff. In contrast, if the opposite management is made, staff may be overstretched, making it hard or impossible to meet production or service deadlines at the quality level expected. You should ask following questions for planning right number of employees: (a) How can output be improved through your understanding about the interrelation between productivity, work organization and technological development? What does this mean for staff numbers?(b) What techniques can be used to establish workforce requirements? (c) Have more flexible work arrangements been considered? (d) How is the staff you need to be acquired? The principles can be applied to any exercise to define workforce requirements, whether it be a business start-up, a relocation, or the opening of new factory or office. 2. To retain highly skilled staff: In this competitive world it is very important for the organization to retain its skilled staff. Thus organizations should do following: (a) Monitor the extent of resignation (b) Discover the reasons for it (c) Establish what it is costing the organization (d) Compare loss rates with other similar organizations. Without understanding of above points, management may be unaware of how many good quality workers are being lost. This will cost the organization directly through the bill for separation, recruitment and induction, but also through a loss of long-term capability. 3. To manage an effective downsizing programme: This is a very common issue for managers but yet the most difficult one. A downsizing strategy reduces the workforce for improving profitability or reducing costs.4. To find out the procedure for recruiting the upcoming managers: Many senior managers are troubled by this issue. They have seen traditional career paths disappear. They have had to bring in senior staff from elsewhere. But they recognise that while this may have dealt with a short-term skills shortage, it has not solved the longer term question of managerial supply: what sort, how many, and where will they come from? To address these questions you need to understand: (a) The present career system (including patterns of promotion and movement, of recruitment and wastage) (b) The characteristics of those who currently occupy senior positions (c) The organization’s future supply of talent.

Q2. Write a short note on focus groups.Ans. Focus groups

A focus group is a form of qualitative research in which a group of employees are asked about their perceptions, opinions, beliefs and attitudes towards the culture and policies of the organization. Focus groups are interviews, but of 6-10 people at the same time in the same group. Questions are asked in an interactive group setting where participants are free to talk with other group members. Focus groups are a powerful means to evaluate services or test new ideas. One can get a great deal of information during a focus group session. Preparing for the session

Identification of the major objective of the meeting. Carefully developing five to six questions. Planning the session. Calling potential members to invite them to the meeting. About 2-3 days before the session, call each member to remind them to attend.

Planning the session Scheduling: Plan meetings to be one to 1-1.5 hours long. Over lunch tends to be a very good time for others to find time to attend. Ground Rules: It's critical that all members participate as much as possible, yet the session move along while generating useful information. Because the session is often a one-time occurrence, it's useful to have a few, short ground rules that sustain participation, yet do so with focus. Consider the following three ground rules:a) keep focused, b) maintain momentum and c) get closure on questions. Membership: Focus groups are usually conducted with 6-10 members who have some similar nature, e.g., similar age group, status in a program, etc. Select members who are likely to be participative and reflective. Attempt to select members who don't know each other.

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Q3. Explain the audit of human resource function.Ans. Good starting point of audit process is to take some time and reflect on HR functions which

need to be audited. Simply listing them is a good first step. For achieving organizational goals, it is very important to carry out various HR functions smoothly. In this step of audit process, we define the various functions which need to be audited.In this step consider your areas of responsibility and traditional HR practices covered by the functions, you need to audit. In starting out, it is better to make more general statements and improve from year to year in those areas that you choose to raise the level of performance.

The main purpose is to study and analyze each one of the specific areas of HRM. The analysis should focus on the planned measures, the method of implementation, and the results obtained. In order to carry this out, the areas that need to be audited must be identified. A list of the indicators corresponding to the different areas of the HR function could contain some of the following:Description of the staff of the company The complete staff can be described by:

hierarchic levels years of service qualification sex nationality the number of permanent and temporary employees, interns and physically or

mentally challenged employees indexes of personnel rotation and absenteeism

Job analysis The various indicators of Job analysis are as follows:

The number of described posts Occupants per post Degree to which the job description cards have been updated The degree of detail in the job description cards The methods used to analyze and describe the jobs.

HR planning HR planning, as you have studied in unit 7, is an important area of preplanning includes the methods employed to plan personnel needs, the measures adopted to cover future personnel needs, and the temporary planning horizon. Recruiting and personnel selection Main indicators of this are as follows:

the number of days required to a vacant post the number of applications received by work place categories the average amount of days between the reception of the application the average cost of recruitment cost of selection per job post the degree to which internal and external sources of recruitment are used the average number of candidates that do not pass the selective tests the study of the reliability and validity of the selection tests

Training and development The training indicators are as follows:

the procedures followed frequency to which personnel training needs are analyzed the criteria followed in the training programs

the evaluation criteria of the efficiency of the training programs the percentage of the HR budget dedicated to training the average number of hours of training per employee The percentage of employees that participate in training programmes by work place

categories. Development of professional careers

These indicators focus on the vacancies covered internally. These indicators include: the percentage of people promoted per number of employees; the percentage of vacancies covered internally and externally and the average time

per employee it takes to receive a promotion. -------------------------------------------------------------------------------------------------------------------------------

Q4. What are the trends in HR audit seen in Indian scenario?Ans. In India, the prevalence of HR Audit has been quite popular since 1970s. It first

promulgated by BHEL (Bharat Heavy Electrical Ltd), a leading public enterprise, during the financial year 1972-73. Later it was also adopted by other leading public and private sector organization in the subsequent years. Some of them are Hindustan Machine Tools Ltd. (HMTL). Oil and Natural Gas Corporation Ltd.(ONGC), NTPC, Cochin Refineries Ltd. (CRL), Madras Refineries Ltd.,(MRL), Associated Cement Company Ltd.(ACC) and Infosys Technologies Ltd.(ITL). Adaptability of various models, especially Lev and Schwartz model and Flamholtz model and discount rate fixation and disclosure pattern i.e. either age wise, skill wise etc., in BHEL, SAIL, MMTC (Minerals & Metals Trading Corporation Of India Ltd.) HMTL, NTP, etc., made HR auditing even more popular in the country. All said and done though, let us mark the fact here despite this all, there has been no uniformity among Indian enterprises regarding HRA disclosure. HRD audits of different organization have revealed different things. The case studies of two HRD audited organization discussed in this unit are quite illustrative to substantiate this. Let is make it clear at this point only that the names of the organization have been changed because the audit process reveals the strengths and weaknesses of the organization are brought to the fore and the organization may not like it to get their weaknesses published. It is a point to mark that, in most of the organization, great support was given to all HRD activities by the top management of the organization. Thus we can for sure make out the success of an HRD intervention.

Q5. Explain the process of conducting audit of training.

Ans. Training is a subsystem of an organization. It ensures that randomness is reduced and learning or behavioral change takes place in structured format. The main objective of training and development division is to make sure the availability of a skilled and willing workforce to an organization. It improves the productivity of employees and thereby increases the performance of the organisation. Audit of Training suggests future improvements based on past activities measurement. The training indicators are:

the procedures followed and the frequency with which personnel training needs are analyzed;

the criteria followed to list the content of the training programs; the evaluation criteria of the efficacy of the training programs; The procedure by which training needs are analyzed the percentage of the HR budget dedicated to training; The situation at which training is being conducted like Employee orientation, Skills &

technical training, Coaching and Counseling the training conducted at the orientation of the employees the average number of hours of training per employee; the percentage of employees that participate in training programs by work place

categories. ------------------------------------------------------------------------------------------------------------------------------Q6. Elaborate on the different aspects work place policies and practices to be

considered by the employers.Ans. Many smaller companies do not like writing certain aspects of ways of conducting business.

For such companies, it is mere formality and they do not appreciate “people-oriented culture.” Though it should be avoided because it is patently illegal because laws require that companies should mention very clearly the policies about guaranteeing specific protections to employees 1. Safeguarding employee information Employees’ personal information should be safeguarded. Separate files should be maintained for personal information as contrasted with employment related information. Main objective behind it to ensure that while deciding the employee’s career with the company his personal information should not be considered. For example while deciding whether to promote employee or not, instead of his personal information like his religion, his work experience and capabilities should be considered. The employment decision needs to be made on work/performance-related information, not the personal information. Relevant materials in the work file include information on the employee’s education, related work experience, and performance evaluations in other positions within the company. An audit can clarify what information must be segregated and the laws that govern employees’ access to and copying of their files. Other employee information that must be safeguarded includes any materials that contain medical information. 2. Employee performance management

An audit can review company’s job descriptions for compliance (i.e., to determine whether the descriptions list the essential functions of the job). Various legal issues can arise due to performance related problems of employees. Audit will help in following improvements and reviews:

A 90-day written standard performance evaluation form, An annual written standard performance evaluation form, A performance management/performance improvement plan, A description of the company’s policy for both voluntary resignation and company-

initiated termination, Wage and salary administration program, Bonus/stock option criteria.

3. Safe work environment Audit practices may also help the companies to know about factors that contribute

to a safe work environment. A company may choose to develop an audit sheet tailored to a particular issue, such as the company’s zero-tolerance policy for harassment. For example, a company may wish to review and evaluate its practices of dealing with inappropriate harassing behavior in its workplace.

4 .Auditing workplace behaviors that support legal compliance A safe, dignified, and respectful work environment is not only mandated by the law,

but also increases motivation and productivity of the employees.