Global HRM concept strategic framework of HRD

The history of the rise and the downfall of diff business have Proved, it would be “man behind the machine “ whose competence would determine the success of failure of an organization. The HRD agenda should focus on helping the organization to achieve advantage and to cope up with the changes in the competitive environment. In essence, HRD has a paramount role to play in making the industry better through superior quality or service, by being able to sense and satisfy customer requirements faster than competitors.

Background :

                        These are tremendous changes in the world of business recent years. The era of central, regulations and restrictions has gone and paved way for a open economy. LPG have become the buzz world today and the entire business seems to be going for these. Aggressive competitions strategies are being adopted by companies each to outfit and there seems to be a fierce battle going on for supremacy to the market place.

                        The competitors superiority of a company to be able to sustain superiority in the market would be reflected in a combination of superior customer value and lower delivery cost. These essential generic positional advantages would be derived from the relative superiority in knowledge, skill and resources ,business can deploy. To that extant it would be the competence of man power that would ultimately give an organization the competitive edge.

The human resource development :(a holistic view point )

●      HRD is a humanistic concept based on respect for the dignity of man and belief in the tremendous potential of human beings.

●      It is based on the basic presences that people are the greatest strength in an organization.

●      Maximize contribution from people there is a need to concentrate on building competitiveness, commitment and culture of excellence.

The role of people in any business organization is crucial today because of the following reasons.

○    The exclusive source of knowledge for an organization is the people.

○     individual knowledge is the starting point of organizational knowledge.

○    The knowledge pool for each individual cannot be replicated.

○    Only people can spread knowledge across the company.

○    It is only people who can convert knowledge into effective action.

The HRD philosophy emphasizes the basic attitudes like:

a.       To value human beings

b.       Have interest in the basic integrity of people

c.        Believe in the potential

d.       Respect their dignity

That devising systems for getting the best out of people will automatically maximize companies performance in terms of every operation, accept it includes the following.

1.       product design is an out come of sustained personal innovation

2.       manufacturing is the result of team work applied to technology.

3.       Marketing is the sum of people devised service and their knowledge

4.       TQM is the application of human intelligency to improve processes

Creation of fast decision making mechanism:

            The fast decision making mechanism is created by

1.       Keeping the company in a state of constant change

2.       Cultivating diversities in the functioning of an organization.

3.       Creating mechanism to un learn old and obsolete knowledge.

According to the management guru peter.F.Ducker “Knowledge is the meaningful resource today “. For, access to  other resources is no longer limited. Crucially, it is the people, who will bring knowledge into the organization and hence the importance of people is a new paradigm of business.

Management technique Vs roll of HRD:

1.       Organizations are discovering that their core competencies lie not in particular products are product categories, but in unique enterprises, the knowledge pool and skill of their people.

2.       Companies have realized that re-engineering their business process will not succeed unless the right people with the right skills are in place manage the new process.

3.       Equally important, re-engineering process will bring no improvement unless the peoples mindsets are re-engineered.

4.       Building settings were people collectively learn and take decision.

5.       Disseminating learning through the organization systematically.

With the increasing adherence to the above strategic frame work, the main advantages that will emerge are:

1.       Knowledge as a competitive advantage for survival.

2.       Total quality in every sphere.

3.       Evolutionary bounds with customers and vendors .

4.       Creation of energized work force to evolve the organization.

                                                            Role of HR audit

HR audit concept:

            HR audit Is a systematic, formal evaluation of all HR policies and programes in an organization. It may focus on different issues, for example:

1.       How well the HR department’s present purpose and strategy support those of the organization

2.       How well the HR department’s present purpose and strategy support those of the organization, or

3.       How well the HR department carries out various HR functions such as staffing, performance appraisal, handling grievances, etc..

In the pure form, an audit is simply a review of the many available HR records to determine of key HR policies and procedures are in place and followed similar to financial audits, HR audits rely on existing records, such as and followed. Similar to financial audits, HR budgets and allocations, grievances, type and number of training and development programs and performance evaluation records.

Objectives of HR audit:

            The objective of an HR audit is, to determine the effectiveness of the programmers which facilitate the accusation, development, allocation and monitoring of human resources.

It analyzes the HR plan, policies and programs and finds out the extent of deviations in the actual programs and performances and compares the actual performances with the established standards. It studies the extent to which line managers have complied with HR policies and the operational problems in implementing the existing HR policies.

Requirements for HR audit:

In order to carry out an audit, the auditor needs the following.

●      To decide what to examine in an HR audit.

●      To tentatively decide how to conduct the audit by drafting a rough audit plan.

●      To select the staff to be involved in the audit.

●      To engage in pre-audit research, which primarily involves collecting background information about the HR department, the organization, and specific problems considered to be acute in the latter..

●      To finalize the audit play by refining the audit tools/measures and developing a clear timetable for its conduct.

●      To collect audit information

●      To compile audit results and use them to identify present strengths and weakness of the HR department and pin point fruitful areas for long-term action in order to improve its status

Type of HR audit:

There are two kinds of HR audits : strategies and operational HR audit.

Strategic HR audit:

the focus of the strategic audit is to assess the appropriateness of the HR policies and practices in supporting an organizations overall business strategy. It should be remembered that the HR’s grand strategy should support and complement the organization strategy but need not be driven by it.

Factors to be assessed in strategic HR audit:

Environmental factors: The question to be asked is how does the HR functions contribute to organization’s dealing with the external environment or , to what extent does the HR sub-system contribute to the achievement of the long-term goals.

Industrial factors: What HR issues are of key concern in the industry ? for example, compliance with special laws or regulations applicable to it.

Strategy implementation factors: What key HR issues cure involved in implementation of the HR grand strategy? For example, the state of relations between the HR dept and line dept.

Company factors: What are an organizations existing HR strengths and weakness ? for example, what HR practice areas match up particularly well with desired future needs as envisioned in the strategy ? which ones do not  match up so well ?

Operational HR audit: The focus in the operational audit is, to guide short-term decisions and actions so that they do not conflict with long-term ones. Two different methods of conducting an operational audit are HR audit opinion questionnaire and checklist method. A checklist is a very simple, elementary approaches to assessment, but its interpretation is quite difficult due to the subjectivity of the information.

Scope of HR audit:

HR audit encompasses all the areas like review and integration of corporate mission, goals, policies and objectives, HR planning, career planning and development, procurement, promotion and transfer, performance appraisal and management , training and development function, etc depending upon the nature of an organization.

The following records and reports are checked in HR audits, time and motion study records, manpower cost records, performance appraisal score and records, test cores, attitudianal survey reports, grievance reports, turnover reports, accident records data on work stoppages, payroll data, service records etc, are checked while conducting and HR audit.

Methods of HR audit:

HR audit can be undertaken by conducting attitudinal surveys, analyzing and interpreting data, simple comparision over a period or by ratio analysis or graphical or pictorial displays.

Dimensions /Approaches to HR audit:

The importance of carrying out an HRM effectiveness assessment through HR audit is considered today as the most important HR activity because of the following approaches.

●      The renewed recognition that people attach to the difference between the success and failure of an organization.

●      People are expensive, and their wages are often an ogranization’s largest controllable cost

●      Society , through social and labor legislations requires organizations to produce  HRM effectiveness report in compliance with the law.

So little is known about what it really takes to manage human resource that it requires constant assessment in order to advance our understanding.