by Comprehensive:
An audit team must consider the business plan and its corporate strategies from the very beginning. The HRD auditor needs to take into account where the company intends to be after a definite period of time. The top level management needs to discuss these issues with the auditor. The auditor needs to examine the objective evidences such as long-term documents as well.
Thereafter, the auditor needs to assess the skill base required to perform the new roles and the current skill base of HRD staff in the company in relation to various roles and role requirements.
Following this, an auditor should verify the effectiveness of the existing HRD mechanisms in developing people and ensure that human competencies are available in adequate levels in the company. An HRD audit examines linkages with other systems. The HRD structure existing in the company should be adequate enough to manage the company’s HRD functions. Top management and senior managerial styles of managing people need to promote a learning culture.
The managerial styles should facilitate the creation of a learning environment. Auditors need to examine this difficult task.
Linkages with Other Systems:
There is a linkage between HR and other functions such as production management, maintenance management, total quality management, personnel policies, strategic planning, etc., in any organization. An audit examines these linkages between HRD and other systems. On the basis of evaluation, HRD auditors suggest future HRD strategies required by the company.
The suggestions further include:
(a) The structure the company needs to have for developing new competencies,
(b) The systems that need to be strengthened
(c) The ideal managerial styles and work culture conducive and compatible with HRD processes in the company. The managerial styles of the top management should also be emphasized.
Business-Driven:
HRD audit is business-driven and primarily focuses on fulfilling the objectives. Along with meeting objectives, HRD audit evaluates HRD strategy, structure, system, staff, skills and styles, and their appropriateness.
HRD audit is not a problem-solving exercise. HRD audit does not always provide solutions to organization-specific problems involving industrial relations, discipline, performance, etc. However, it throws some insights into the sources of the problem. It never gives feedback about any specific individuals.
However, it gives feedback about the HRD department, the structure of the HRD departments, competency levels of the personnel manning, leadership styles, processes practiced, interrelationships of HRD system with systems, influence of the HRD on the other systems, etc.
HRD audit is one of the five systems used to measure the effectiveness of HR practices, the other systems being:
(a) Benchmarking
(b) HR accounting
(c) HR information system
(d) HR researches.
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 motivation indices.
The HRD system should focus on the above dimensions. Questions like are the HRD systems aligned towards the important business goals of the corporation, and does the HRD staff reflect adequate understanding the commitment to the business goals of the organisation and are the HRD processes and culture suitable for achievement of goals need to be answered.
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