Master of Business Administration-MBA Semester 3 MU0004 Human Resource Audit - 2 Credits Assignment Set- 1 Q.

.1 Write a detailed note on Training and Development Audit Ans.

Assignment Set- 2 Q.1 Write a note on the Employment handbook. Ans. THE EMPLOYEE HANDBOOK A handbook can be an effective vehicle for communicating company culture and benefits aswell as any expectations the company has of itsemployees in other words, its policies. Written policies help ensure equal and consistenttreatment of employees by managers if used as a guide and can help avoid employmentlawsuits. However, the handbook must be reviewed and updated regularly to reflect changesin employment law as well as in company circumstances. An outdated handbook can causeserious problems and may be worse than not having one. There are some cautions, however,as you include information in the company handbook. You should avoid promising that allemployees will be treated in a certain way all of the time. Sometimes even promising to useprogressive discipline standards can backfire into wrongful discharge if you terminatesomeone for egregious behavior without this process. Avoid using a probationary period fornew hires; do not imply permanent employment following any initial trial period. This chipsaway at the at-will employment doctrine and may

be construed as an implied contractualcommitment. As a rule of thumb, avoid including policies that limit the companys ability touse its discretion in making employment decisions, and do not guarantee in advance how alldecisions will be made.Be sure that your handbook makes all the legally mandated statements. These statements aresimilar to the mandated postings and include policies related to equal opportunity, non-harassment, and maternity, family, and medical leaves (if applicable). The handbook is also agood place to describe the companys ownership of communication equipment, e.g.,electronic forms in particular (email and Internet access). Be sure to clearly outline companyexpectations about how such services are to be used. Legal counsel should review thehandbook to ensure that it is compliant with state and federal requirements. In general, ifthere is a conflict between state and federal mandates, the federal mandate takesprecedence unless the state mandate is more stringent, i.e., more favorable to employees.So, the better you treat your employees, the safer you are from a legal compliancestandpoint EMPLOYEE HANDBOOKS are also often called Policy and Procedures Manuals. TheHandbook/Manual is a statement of the policies of the business and how the business is to beconducted. The company employee handbook is one of the most important communication tools between your company and your employees. Not only does it set forth your expectations for your employees, but it also describes what they can expect from the company. It is essential that your company has one and that it be clear and as unambiguous as possible. Misunderstandings or misstatements can create legal liabilities for your business. In legal disputes courts haveconsidered an employee handbook to be a contractual obligation, so word it carefully. The company employee handbook and related personnel policies should be one of the firstformal communications that you will have with an employee after they are hired. Make sure thefirst impression is a good one. Similarly, in the event of a dispute or poor performance review,this will be the first place that the employee turns.The handbook should contain enough detail to avoid confusion, but not so much as tooverwhelm. For instance, if there are other documents (i.e. group insurance handbook, andretirement plan documents) which more appropriately provide details, don't try to recreate theinformation in the handbook. Instead, offer a brief summary and refer to the other document inthe employee handbook. Make sure that you are familiar with the myriad of laws and regulationsfor employment. It is always wise to consult with a lawyer on any topics that you don't understand.

Q.2 Write a note on HR Auditing. Ans. Conceptualization of HR Auditing Auditing has evolved, becoming increasingly specific, until the term functional audit hasemerged. The objective of a functional audit is to diagnose, analyze, control, and advise withinthe boundaries of each functional area of the company.The HR audit is a type of functional audit. Thus, as a first approach, one could say that HR auditing consists of diagnosing, analyzing, evaluating, and assessing future lines of action withinthe framework of HRM.HR auditing is a basic tool for the management of a company. Its objective is not only thecontrol and quantifying of results, but also the adoption of a wider perspective that will aid indefining future lines of action in the HRM field. Thus, HR auditing must perform two basicfunctions [Cantera, 1995]. First, it must be a management information system whose feedback provides information about the situation in order to facilitate the

development of managing processes or the development of HR. On the other hand, it must be a way of controlling andevaluating the policies that are being applied, as well as the established processes.It can be understood that in order to secure the operative efficiency and user or clientsatisfaction, an appraisal of the results of the HR function is necessary. According to thisapproach, the results obtained can be valued from certain HR policies (an external type of measurement), or from the results of the policies or the policies themselves. The results can bevalued through their cost (a measurement internal to the function) [Walker, 1998]. This wouldlead the company to consider some basic questions. Are adequate HR policies being developed?Are the desired results being obtained? To what extent do they add value to the company?The purpose of this work is to offer a few guidelines for the appraisal of the HR function, whichis in itself the basis for the auditing process. The objective is to set conceptual limits for itscontent and to present the different approaches with which the HR audit can be presented.

Q.3 Discuss balanced scorecard in the perspective of Business Process and Consumer. Ans. The HR Scorecard argues that HR measurement systems must be based on a clearunderstanding of organizational strategy and the capabilities and behaviors of the workforcerequired to implement that strategy. Thus, an HR Scorecard is a mechanism for describingand measuring how people and people management systems create value in organizations, aswell as communicating key organizational objectives to the workforce. It is based on a strategy map which is a visual depiction of what causes what in anorganization, beginning with people and ending with shareholder or other stakeholderoutcomes. The HR Scorecard is built around a series of examples and a process that helpsmanagers to do this work in their own firms designing an HR architecture that relentlesslyemphasizes and reinforces the implementation of the firms strategy. The HR Scorecard has five key elements: The first element is what we called Workforce Success. It asks: Has the workforceaccomplished the key strategic objectives for the business? The second element is called Right HR Costs. It asks: Is our total investment in theworkforce (not just the HR function) appropriate (not just minimized)? The third element we describe as Right Types of HR Alignment. It asks: Are our HRpractices aligned with the business strategy and differentiated across positions, where appropriate?

 The fourth element is Right HR Practices. It asks: Have we designed and implementedworld class HR management policies and practices throughout the business? The fifth element is Right HR Professionals. It asks: Do our HR professionals have the skills they need to design and implement a world-class HR management system? There is increasing interest in measuring HR and initial efforts have made use of a HR scorecard to provide a framework within which to measure. However, experience of HR scorecard implementation has been mixed. In this article we provide insights into the reasons why, and outline several key steps that must be undertaken for HR measurement to be effective. Traditionally, HR functions have struggled with appropriate and meaningful measures toquantify their value, or that of the people engaged within the business. The emergence of theHR scorecard concept has tried to address this point, taking its core design from theestablished balanced scorecard measurement framework applied in businesses. In short, thebalanced scorecard is essentially a framework that attempts to collate measures across fourareas: financial, internal process, customer and (people) learning, and growth rather thanjust the traditional financial measures (hence the term balanced). Balanced Scorecard A new approach to strategic management was developed in the early 1990s by Drs. RobertKaplan (Harvard Business School) and David Norton. They named this system the balancedscorecard. Recognizing some of the weaknesses and vagueness of previous managementapproaches, the balanced scorecard approach provides a clear prescription as to whatcompanies should measure in order to balance the financial perspective. The balanced scorecard is a management system (not only a measurement system) thatenables organizations to clarify their vision and strategy and translate them into action. Itprovides feedback around both the internal business processes and external outcomes in orderto continuously improve strategic performance and results. When fully deployed, thebalanced scorecard transforms strategic planning from an academic exercise into the nervecenter of an enterprise.Kaplan and Norton describe the innovation of the balanced scorecard as follows: The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation. The balanced scorecard suggests that we view the organization from four perspectives, and to develop metrics, collect data and analyze it relative to each of these perspectives: Learning Perspective:

This perspective includes employee training and corporate cultural attitudes related to both individual and corporate self-improvement. In a knowledge-worker organization, People the only repository of knowledge are the main resource. In the current climate of rapid technological change, it is becoming necessary for knowledge workers to be in a continuous learning mode. Government agencies often find themselves unable to hire new technical workers, and at the same time there is a decline in training of existing employees. This is a leading indicator of brain drain that must be reversed. Metrics can be put into place toguide managers in focusing training funds where they can help the most. In any case, Learning and growth constitute the essential foundation for success of any knowledge-worker organization. Business Process Perspective: This perspective refers to internal business processes. Metrics based on this perspective allow the managers to know how well their business is running, and whether its products and services conform to customer requirements (the mission). These metrics have to be carefully designed by those who know these processes most intimately; with our unique missions these are not something that can be developed by outside consultants. In addition to the strategic management process, two kinds of business processes may be identified: a) mission-oriented processes, and b) support processes. Mission-oriented processes are the special functions of government offices, and many unique problems are encountered in these processes. The support processes are more repetitive in nature, and hence easier to measure and benchmark using generic metrics. Consumer Perspective: Recent management philosophy has shown an increasing realization of the importance of customer focus and customer satisfaction in any business. These are leading indicators: if customers are not satisfied, they will eventually find other suppliers that will meet their needs. Poor performance from this perspective is thus a leading indicator of future decline, even though the current financial picture may look good. In developing metrics for satisfaction, customers should be analyzed in terms of kinds of customers and the kinds of processes for which we are providing a product or service to those customer groups.

The Balanced Scorecard and Measurement-Based Management The balanced scorecard methodology builds on some key concepts of previous management ideas such as Total Quality Management (TQM), including customer-defined quality, continuous improvement, employee empowerment, and primarily - measurement-based management and feedback.