See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/360032493

Auditing Human Resource Functions & Competencies: An Empirical Study

Article in Indian Journal of Industrial Relations · July 2015

CITATIONS READS

0 82

2 authors:

Neetu Rani Jagdeep Singla

Maharshi Dayanand University Maharshi Dayanand University
6 PUBLICATIONS 1 CITATION 24 PUBLICATIONS 11 CITATIONS

SEE PROFILE SEE PROFILE

All content following this page was uploaded by Jagdeep Singla on 19 April 2022.

The user has requested enhancement of the downloaded file.

Auditing Human Resource Functions & Competencies: An Empirical Study
Author(s): Neetu Rani and Jagdeep Singla
Source: Indian Journal of Industrial Relations , July 2015, Vol. 51, No. 1 (July 2015), pp.
109-120
Published by: Shri Ram Centre for Industrial Relations and Human Resources

Stable URL: https://www.jstor.org/stable/43974542

JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide
range of content in a trusted digital archive. We use information technology and tools to increase productivity and
facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.

Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at
https://about.jstor.org/terms

Shri Ram Centre for Industrial Relations and Human Resources is collaborating with JSTOR to
digitize, preserve and extend access to Indian Journal of Industrial Relations

This content downloaded from

14.139.235.210 on Tue, 19 Apr 2022 06:01:34 UTC
All use subject to https://about.jstor.org/terms
Auditing Human Resource Functions &
Competencies: An Empirical Study

Neetu Rani & Jagdeep Singla

Literature suggests that a strate-
gic performance measurement
system should be used to help
organizations to build capabili-
ties to gain competitive advan-
tage. HR audit in the Indian pri-
vate sector banks can suggest a
number of improvements which
can be incorporated. This study
attempts to analyse the impact of
HR audit on employee perfor-
mance of selected private banks
in India. The study compares the
level of overall employee perfor-
mance of banks before and after
organizing awareness campaigns
with respect to HR Audit. It was
found that there is a positive im-
pact of awareness campaigns on
performance of HR Audit. The
study provides suggestions which
can be incorporated for the im-
provement of the performance
measurement system.
Introduction
"HR audit is a process to review
implementation of your institutions, poli-
cies and procedures, ensure compliance
with employment law, eliminate liabilities,
implement best practices and educate
managers" <"http://www.slideshare.net/
manishakkunwar/hr-planning-and-audit)
It is important to ensure linkage
between HRD and corporate strat-
egy.
While HRD stands for human re-
source development HR stands for the
human resource function. The HR func-
tion is all-encompassing, and includes
HRD and more. It goes far beyond the
traditional personnel function. It is more
proactive and change-oriented and in-
cludes competencies of a nature differ-
ent from the traditional personnel func-
tion. The traditional personnel function
had been more of a maintenance func-

Neetu Rani is Assistant Professor, PDM College oftion with very little growth focus. In an
Engineering, Bahadurgarh. Email: neetutanwarearlier research, it has been found that
07@gmail.com. Jagdeep Singla is Assistant good companies use HR activities for
Professor, Institute of Management Studies & short-term goal considerations. If these
Research, MDU, Rohtak. Email:
organisations will not ensure linkage of
jagdeepsingla@gmail.com

The Indian Journal of Industrial Relations, Vol. 51, No. 1, July 2015 109

This content downloaded from

14.139.235.210 on Tue, 19 Apr 2022 06:01:34 UTC
All use subject to https://about.jstor.org/terms
 Neetu Rani & Jagdeep Singla

organizational activities to corporate strat- for centuries and it could be traced to

egy, they may move in the wrong direc- ancient Egypt, Babylon and Rome. The
tion. Hence, it is important to ensure link- auditor's role was to 'listen' to the
age between HRD and corporate strat- records and the notion of an independent
egy. Human Resource Development outsider 'looking ať is central to auditing
(HRD) is a process by which the em- (Burrowes & Persson, 2000). It is not
ployees of an organization are helped, in the function of an auditor to take the role
a continuous, planned way, to: 1) acquire of the management; the audit role is one
or sharpen capabilities required to per- of the examination and of critiquing man-
form various functions associated with agement systems and procedures
(Clardy, 2004).
their present or expected future roles, 2)
develop their general capabilities as indi-
viduals and discover and exploit their After the evaluation of human re-
source management activities the issues
potentials for their own and/or organiza-
tional development purposes, and 3) de-were addressed i.e. whether an exami-
velop an organizational culture in whichnation grounded in performance auditing
supervisor-subordinate relationships,could usefully evaluate the contribution
teamwork, and collaboration among sub- of human resource management activi-
units are strong and contribute to the pro-ties. There is a research gap surround-
ing the nexus between auditing and hu-
fessional well-being, motivation, and pride
of the employees (Rao, 1985). man resource management in relation to
human resource auditing. This leads to
All HRD assessments should start confusion for human resource practitio-
with the business goals and subjectedners:
to in topic definition, in understanding
the different types of audit, the profes-
business considerations. Any assessment
of HRD should examine the extent to
sional practices of auditing by crossing
which such linkages exist. Human discipline
re- boundaries and mixing auditing
source audit crosses the boundaries be- methodology with the evaluation of hu-
tween human resources managementman resource management. This study
highlights an evaluation method that de-
and auditing. An audit of human resource
management performance is always fu- serves further research attention.
ture orientated. It helps in identifying ar-
eas for organizational improvement. This Khan (2005), suggested a similar
study focuses on the use of HR audit toapproach that can be applied in the in-
evaluate the contribution of human re- ternational arena. Dolenko (1990) outlined
a methodology for applying auditing tech-
source management activities of selected
private sector banks in India. niques in human resource management
but advanced literature is disquieted by
Review of Literature alternative interpretations that define the
human resource auditing in different
ways (Clardy, 2004). Human resource
The word audit comes from the Latin,
auditing can be sited within and between
'audire' (to listen). Auditing had existed

110 The Indian Journal of Industrial Relations, Vol. 51, No. 1, July 2015

This content downloaded from

14.139.235.210 on Tue, 19 Apr 2022 06:01:34 UTC
All use subject to https://about.jstor.org/terms
 Auditing Human Resource Functions & Competencies

each of the fields of human resource ment is to use it as a tool for: performing
management and auditing. This researchan HR audit in order to assess perfor-
mance gaps and increase the effective-
has two parent disciplines: auditing and
human resource management. Auditing ness of the HR change agents (Ulrich,
is described as an investigative and in-
1997); predicting how a person will per-
formation processing activity, which form the job; and evaluating whether a
person fits the job profile (Ulrich & Brock
evolved in response to the need fór inde-
pendently verified stewardship reports bank, 2005; Spencer & Spencer, 1993).
(Parker, Ferris & Otley, 1989).
HRM is to be regarded as a "soft"
Human resource management
management function.
emerged from traditional personnel man-
agement in the 1980s. Traditional person-
nel management was viewed as involv- Milkovich and Boudreau (1990)
urged the managers to change their atti-
ing the performance of basic staffing
tude towards managing employees in in-
functions, and it is often conducted with-
dustrial organizations. They emphasized
out regard to other organizational activi-
ties and alignment with organizational that the organization of human resources
should be managed with the same care
objectives. Within the field of human re-
source management, a human resource logic, as its financial and raw mate-
and
rial resources. Studies suggested that
audit is a method of evaluating or assess-
HRM is to be regarded as a "soft" man-
ing activities. Human resource evalua-
agement function. Authors also examined
tion is not systemically identified in mod-
ern textbooks. However, evidences are the current theoretical and research de-
available that group the human resource velopments related to HRM, the current
auditing with other human resource evalu- state of human resource practices and
ation methods for the purposes of dis- provided techniques to develop decision-
cussion and comparison (CCH, 2007). making skills by utilizing personal com-
puters as tools for human resource deci-
An accepted definition of human re- sion-making.
source auditing has proven to be elusive
with many writers either not offering a Viswaeswara (1990) observed that
definition or offering a definition without management of Human resource with
firm grounding. A key emerging construct special and specific reference to its
is that human resource auditing involves changing pattern in the Hindustan Ship-
the application of auditing theory and prac- yard Limited, Vizag. It focused on the
tice within the area of human resource need for innovative and creative struc-
management the activities to be audited ture of the human resource management
being determined by the audit scope. system keeping in view the long term
strategies and objectives of the organi-
The purpose of developing an HR zation particularly the objectives of per-
competency model for change manage- sonnel division.

The Indian Journal of Industrial Relations, Vol. 51, No. 1, July 2015 111

This content downloaded from

14.139.235.210 on Tue, 19 Apr 2022 06:01:34 UTC
All use subject to https://about.jstor.org/terms
 Neetu Rani & Jagdeep Singla

Francis (1990) explored the inter-dis- resources development (HRD) climate

trict differences in investment, in the edu- prevailing in Indian organisations. The
cation and formation of human resources, information collected from 1905 employ-
with the help of human resources index, ees working in 42 organisations covering
the level of human resource development manufacturing, service and IT sectors in
in each district was examined. India forms the basis for the study. It was
found that the HRD climate prevailing in
Sharma (1991) studied HRD in thethe organisations in India was only mod-
sports goods industry, which is unorga-
erate. In comparison, the HRD climate
nized and skilled oriented small scale and
in manufacturing sector was better than
cottage industry. This study examined
in the service sector.
the HRD practices and the primary em-
phasis was on employment, training and Santosh K. Mohanty and K.M.
evaluation of training programs as toolsSahoo (2012) said that Human Resource
of HRD strategy. Development (HRD) climate facilitates
proper implementation of HRD systems
Narayanamurthy (1992) conducted ain an organisation. This study aimed at
study on employee welfare in the publicassessing the extent of HRD climate pre-
sector that examined the practices relat-vailing in IT industry in India. The infor-
ing to the administration of employeemation collected from 543 employees
welfare measures in select public sector
working in seventeen IT organisations
units. The expenditure incurred by the
forms the basis for this study. It is found
selected organizations in the provision of
that moderate HRD climate was prevail-
employee welfare measures and the prac-
ing in the IT organisations. In compari-
tices relating to the administration of such
measures has also been examined.
son OCTAPAC Culture is more preva-
lent than the HRD mechanism and gen-
eral HRD climate in the IT industry.
VenkatRatnam and Srivastava
(1993) provided a comprehensive frame-
Swati Kewlani's (2013) study
work of the principles and concepts re-
aimed at assessing the extent of devel-
lating to personnel management with
opmental climate prevailing in aca-
emphasis on the Indian context. They
demic institutions in central zone of In-
made an attempt to interpret human re-
dia. Data was collected from the em-
source management concepts with their
ployees
emphasis on behavioural principles of selected management insti-
and
tutes
industrial relations. Their primary using structural HRD climate
contri-
questionnaire.
bution lies in discussing the implications The data was analyzed
using statistical
of personnel policies and future scenario tools such as mean,
of human resources. standard deviation and Z-test. The re-
sults indicate that there is an average
Srimannarayana's (2008) study was HRD climate in the management insti-
tutions
aimed at assessing the extent of human leaving plenty of scope for de-
velopment and the perception of aca-

112 The Indian Journal of Industrial Relations, Vol. 51, No. 1, July 2015

This content downloaded from

14.139.235.210 on Tue, 19 Apr 2022 06:01:34 UTC
All use subject to https://about.jstor.org/terms
 Auditing Human Resource Functions & Competencies

demicians regarding the HRD climate has improved a lot. The study found that
do not differ significantly on the basis there was a general indifference on the
of gender and qualification but it dif- part of employees to their own develop-
fers significantly on the basis of age. ment which could take place through
making efforts to recognize their own
Ramanathan's (2014), research pa- strengths and weaknesses. Existing lit-
per on "HRD Climate in Commercial erature highlights the gaps which prompt
Banks" found that the business orga- the need to make a fresh attempt to un-
nizations arrange great magnitude to derstand the opportunities and chal-
human resource since human resources lenges. HR Audit in the Indian private
are the major source of spirited im- sector banks can suggest a number of
provement and have the ability to con-improvements. Hence, the present study
attempts to analyse the impact of hu-
vert all the other resources in to prod-
man resource audit on employee perfor-
uct/service. The efficiency of this hu-
man resource depends on the kind of mance of selected private banks in In-
HRD climate that prevails in the orga-dia.
nization; if it is good then the
employee's concert will be high but if Research Methodology
it is average or poor then the perfor-
mance will be low. The study of HRD In this study exploratory research
design has been used for gaining the
climate is very vital for all the organi-
zations and the banking sector is no information and familiarity with the
various aspects of HR audit policies
exception. The researcher has also
adopted by selected private banks in
tried to find out the top level manage-
ment support for the HRD climate in India. For analysing the challenges for
commercial banks on the basis of age,human resource auditors the selected
five private banks in India (HDFC
gender, designation, qualification. The
data collected from the employees ofBank, ICICI Bank, Axis Bank, Kotak
commercial banks using structured Mahindra Bank, IndusIndBank) have
HRD climate questionnaire were ana- been considered as sample units on the
basis of their Cash Adequacy Ratios.
lyzed using several statistical tools such
as percentage distribution, Chi-Square Employees, administrators and Human
test, One-Way ANOVA. Resource auditors of selected private
banks were considered as part of the
As the need for modern and com- sample. The selection of the units is
prehensive measures is eminent, many on the basis of non-probability
done
sampling technique, i.e., 'QUOTA' sam-
researchers have suggested the usage
pling. In total 500 employees and 50
of strategic performance measurement
system to help organizations build Human
ca- Resource auditors were sur-
veyed from the different branches of
pabilities to gain competitive advantage.
The existing studies conducted in Indiaselected banks located at Delhi,
observed that the overall HRD climate Haryana and Noida.

The Indian Journal of Industrial Relations, Vol. 51, No. 1, July 2

This content downloaded from

14.139.235.210 on Tue, 19 Apr 2022 06:01:34 UTC
All use subject to https://about.jstor.org/terms
 Neetu Rani & Jagdeep Singla

Analysis the variables under study. Further analy-

sis was carried out through Post hoc
In this study, a response regarding analysis. Wherever Post hoc analysis
the overall level of impact has been com- could not be applied the analysis was
pared before and after organizing HR done on the basis of mean scores.
audit awareness campaign policies by the
selected private banks. To verify and Table. 1 clearly reveals that before
analyse the impact of the HR audit, Mean creating awareness related to HR audit
variance, one way Analysis of Variance policies, the overall mean value of se-
(ANOVA), Post hoc analysis and paired lected private banks related to the over-
sample t-Test have been applied. Mean all employee performance comes out to
value of statements related to the Over- 3.44. The mean value of different banks
all employee performance (two state- are: HDFC (3.08), ICICI (4.31), AXIS
ments) were taken as dependent variable (4.21), KOTAK (3.60), and INDUSIND
and selected private banks were taken(3.63). One way ANOVA has been ap-
as independent variable. A significantplied to reveal further details of the im-
value of less than 0.05 indicated that a
pact of the HR audit in selected banks in
India (Table 2)
significant relationship existed between
Table 1 Descriptive Mean: Overall Employee Performance Before Creating Awareness Re-
lated to Human Resource Audit

Name of Bank Mean Std. Dev Std. Error Min. Max.

HDFC (n=178) 3.08 .708 .045 2 6

ICICI (n=48) 4.31 .501 .072 4 5
AXIS (n=41) 4.21 .602 .094 4 5
KOTAK (n=40) 3.60 .496 .078 3 4
INDUSIND (n=43) 3.63 .489 .075 3 4
Total

Table
Related to Human Resource Audit

Sum of Squares Df Mean Square F Sig.

Between Groups 95.270 4 23.817 58.123 .000
Within Groups 171.697 37 .410
Total

The significance value (.000) is Post hoc analysis has been used to
lower than the p= 0.05clearly indicat- identify specific category having sig-
ing that there is a significant relation- nificant relation. The multiple compari-
ship between Overall employee perfor- sons in Table 3 signify that Overall Em-
mance before Organising Awareness ployees Performance in all banks is sig-
Campaign and the selected private In- nificantly different from that in ICICI,
dian banks. AXIS, KOTAK and INDUSIND ex-

114 The Indian Journal of Industrial Relations, Vol. 51, No. 1, July

This content downloaded from

14.139.235.210 on Tue, 19 Apr 2022 06:01:34 UTC
All use subject to https://about.jstor.org/terms
 Auditing Human Resource Functions & Competencies

Table 3 Dependent Variable: Overall Employee Performance before Creating Awareness Re-
lated to Human Resource Audit

Name Name of Mean Std. Error Sig. 95% Confidence Interval

of Bank Bank (J) Difference
_(I)

Lower Bound Upper Bound

HDFC ICICI 1.23 .101 .000 1.43 1.03
AXIS 1.12 .108 .000 1.34 .91
KOTAK .52 .109 .000 .73 .30
INDUSIND .54 .106 .000 .75 .34
ICICI HDFC 1.23 .101 .000 1.03 1.43
AXIS .11 .136 .440 .16 .37
KOTAK .71 .137 .000 .44 .98
INDUSIND .68 .134 .000 .350 .95
AXIS HDFC 1.12 .108 .000 .91 1.34
ICICI .11 .136 .440 .37 .16
KOTAK .61 .1350 .000 .33 .89
INDUSIND .58 .140 .000 .30 .85
KOTAK HDFC .52 .109 .000 .30 .73
ICICI .71 .137 .000 .98 44
AXIS .61 .1350 .000 .89 .33
INDUSIND .03 .141 .843 .30 .25
INDU- HDFC .54 .106 .000 .34 .75
SIND ICICI .68 .134 .000 .95 .350
AXIS .58 .140 .000 .85 .30

The mea

cies, the overall mean value of selected

cept A
with INDUSIND private banks related to Overall employee
performance is 5.24. The mean values of
the private banks are: HDFC (5.46), ICICI
Overall Employee Performance
after HR Audit Campaign (5.13), AXIS (5.32), KOTAK (4.60), and
INDUSIND (4.59). One way ANOVA has
been used to reveal further details of the
Table 4 clearly reveals that after cre-
ating awareness related to HR audit impact
poli- of HR policies in India (Table 5).
Table 4 Descriptive Mean: Overall Employee Performance after Cheating Awareness
to Human Resource Audit

Name of Bank

HDFC (n=178) 5.46 .456 .029 5 7

ICICI (n=48) 5.13 .726 .105 4 6
AXIS (n=41) 5.32 .687 .107 5 6
KOTAK (n=40) 4.60 .744 .118 4 6
INDUSIND (n=43) 4.59 .366 .056 4 5
Total (n=350)

The Ind

This content downloaded from

14.139.235.210 on Tue, 19 Apr 2022 06:01:34 UTC
All use subject to https://about.jstor.org/terms
 Neetu Rani á Jagdeep Singla

Table 5 depicts that significance value between Overall employees performance

(.000) is lower than p= 0.05. It clearly indi- after organizing awareness campaigning
cates that there is a significant relationship and the selected private banks of India.
Table 5 ANOVA: Overall Employee Performance After Creating Awareness Related to HR
Audit Policies

Between Groups 47.937 4 11.984 40.813 .000

Within Groups 123.035 37 .294
Total

Aw
Post h
outpriv
to
cep
signifi
son HD in
KOTAK with INDUSIND.
ployee
Table 6 Dependent Variable: Overall Employee Performance after Creating Aware
lated to Human Resource Audit

Name Name of Mean Std. Error Sig. 95% Confidence Interval

of Bank Bank (J) Difference
0)

Lower Bound Upper Bound

HDFC ICICI .34 .085 .000 .17 .51
AXIS .15 .091 .107 03 .33
KOTAK .86 .092 .000 .68 1.05
INDUSIND .87 .089 .000 .70 1.05
ICICI HDFC .34 .085 .000 .51 .17
AXIS .19 .115 .096 .350 .03
KOTAK .53 .116 .000 .30 .75
INDUSIND .53 .114 .000 .31 .76
AXIS HDFC 15 .091 .107 .33 .03
ICICI .19 .115 .096 .03 .350
KOTAK .72 .120 .000 .48 .95
INDUSIND .72 .118 .000 .49 .96
KOTAK HDFC .86 .092 .000 1.05 .68
ICICI .53 .116 .000 .75 .30
AXIS .72 .120 .000 .95 .48
INDUSIND .01 .119 .953 .23 .24
INDU- HDFC .87 .089 .000 1.05 .70
SIND ICICI .53 .114 .000 .76 .31
AXIS .72 .118 .000 .96 .49

The mean

116 Th

This content downloaded from

14.139.235.210 on Tue, 19 Apr 2022 06:01:34 UTC
All use subject to https://about.jstor.org/terms
 Auditing Human Resource Functions & Competencies

It is clear that Creating Awareness samples t-Test procedure compared the

related to Human Resource Audit has means of two variables that represent
significant influence on the overall per-the same group at different times (e.g.
formance. To support the above findings before and after an event) or related
two-related-samples (paired samples) t- groups. In the present study, employ-
Test has been applied on the overall re- ees performance level has been tested
sults to confirm the findings of the ear-twice, i.e. before creating awareness
lier analysis, i.e. there was a significantrelated to HR Audit and after creating
influence of awareness campaigning on awareness related to HR Audit policies
the impact of the HR Audit. The Paired-(Tables 7 and 8).
Table 7 Paired Samples t-TEST Statistics (Overall Impact)

Mean N Standard Standard

Deviation. Error Mean

Pair 1 Overall employees performance Before 3.44 350 .794 .039

creating awareness related to HR Audit
policies
Overall employees performance After 5.24 350 .636 .03 1
creating awareness related to Human

Table

Paired SD S.E. M 95% Confidence t df Sig. (2-

Differences Interval of the tailed)
Mean

Pair 1 Overall employees 1.81 .907 .044 1.89 1.72 41.005 3503 .050
performance after
creating awareness
related to Human Resource
Audit - Overall employee
performance before creating
awareness related to HR Audit

Thecon
si
flu
Sample
nifican
HR
ables.
Fin
There
of cr
Wh
HR emA

The I

This content downloaded from

14.139.235.210 on Tue, 19 Apr 2022 06:01:34 UTC
All use subject to https://about.jstor.org/terms
 Neetu Rani & Jagdeep Singla

and after organizing awareness campaign Samples t-TEST strongly confirmed that
with respect to HR Audit policies it was there is a significant influence of orga-
revealed that there is a positive impact nizing awareness campaign related to HR
of awareness campaigning on perfor- audit policies on performance of HR au-
mance of HR Audit. It has also been dit products and policies.
observed that the employees of ICICI (by
replacing HDFC) has high mean score Recommendations
(4.31) after organizing awareness cam-
paigning regarding HR Audit policies. It HRD audit always keeps business
goals in focus. At the same time, it at-
indicates that in the case of overall per-
formance of HR policies, ICICI is better
tempts to bring in professionalism in HRD.
placed as compared to other selected
In keeping the business focus at the cen-
private banks. Study reveals that after
tre, HRD audit attempts to evaluate HRD
organizing awareness campaign related
strategy, structure, system, staff, skill and
to HR Audit policies, the overall mean
style and their appropriateness. There are
value of selected private banks has been various recommendations and suggestions
found to increase from 3.44 to 5.24. It which could be incorporated by banks to
has been observed that there is a signifi-improve their performance, some of which
cant relationship between Overall em-are as follows:
ployees' performance before Organising
Awareness Campaign programs in the• HRD audit should be undertaken by
selected private banks in India. In the organizations to make HR systems
Post hoc analysis it has been found that and processes more relevant to busi-
Overall employee performance in all ness goals. Over a period of time,
banks is significantly different from business changes could take place for
ICICI, AXIS, KOTAK and INDUSIND a variety of reasons including envi-
except AXIS with ICICI and KOTAK ronmental changes. Organizational
with INDUSIND. After Organising the restructuring, (financial, technologi-
Awareness Campaign programs it has cal, marketing, manufacturing, engi-
been found that there is a significant re- neering, etc.) Such changes should
lationship. The multiple comparison sig- be accompanied by appropriate
nified that Overall employee performancemodifications in the HR function (its
after Organising Awareness Campaign in goals, emphasis, strategies, systems
all selected private banks is significantly and processes).
different except following categories •of Organizations should go for HRD
banks: HDFC with AXIS, ICICI with audit to examine current state and
AXIS, and KOTAK with INDUSIND. make changes in the HR function to
In the present study, employees perfor-accompany with organizational
mance level has been tested twice, i.e. changes. Some measures to be
before creating awareness related to adopted by organizations are: busi-
Human Resource Audit and after. The ness process reengineering and bal-
significance value (.050) of Paired ance scorecard.

118 The Indian Journal of Industrial Relations , Vol. 51, No. 1, July 20

This content downloaded from

14.139.235.210 on Tue, 19 Apr 2022 06:01:34 UTC
All use subject to https://about.jstor.org/terms
 Auditing Human Resource Functions & Competencies

• Many organizations in India, after lib- served during the research that in
eralization, have entered in a competi- some companies, HR audit is used
tive phase. Companies felt the need as a means to improve communica-
to take the right direction in which tions. In another company HR ap-
they should move. HR audit provides praisal is used as the starting point,
a base for the decision making. but later it has been decided that ap-
praisal is linked to many HRD sub-
• Some of these companies have bor-
systems. Therefore, such organiza-
rowed many HRD practices from
tions should make a comprehensive
professionally managed companies, examination of HRD.
but without enough preparation.
Companies are not sure if they are • The experiences of this research indi-
going in the right direction or not. cate that HRD audit can give many
Thus, HRD should go for pre analy- insights into a company's affairs. It pro-
sis of HR audit to know about the vides a good degree of qualitative data.
benefits of a particular HRD prac-
• Ironically, it may seem that HRD
tice and their alignment with the fu-
audit should begin with strategic
ture direction of company.
plans, but sometimes it has propelled
• With a transforming of the world intothe top management to formulate
a global village, some companies such plans. The important aspect in
realized the importance of skill de-this regard is that individuals cannot
velopment and professionalism participate in HR audit without some
among the employees. To inculcate sharing of these plans. The audit,
professionalism, companies need totherefore, has forced the top man-
maintain HRD audit. agement to share their plans across
the organization, resulting in in-
• A few organizations, after their initial creased involvement and commit-
success and building core competen-
ment of employees. Sometimes, a
cies in certain areas, want to diversify
new system of annual planning and
and expand into new areas. Organiza-
sharing of the business plans with
tions even undertook the initial steps
management staff, enables them to
for using their existing staff in handling
plan their own activities and compe-
new projects. Organizations are not
tency development programs.
sure whether this is likely to work or
not. Organizations also wanted to know• Successful HRD companies have an
the direction in which they should excellent learning environment. Thus,
move. Therefore, organizations de- one of the major objectives of HRD
cided to undertake HRD audit. is to create a learning oriented orga-
nization.
• Some organizations undertook HR
audits more as a comprehensive re-References
view of their needs generated from
their dissatisfaction with one or two Burrowes, A & Persson, M. (2000), "The Swed-
subsystems of HRD. It has been ob- ish Management Audit: a Precedent for

The Indian Journal of Industrial Relations. Vol. 51, No. 1, July 2015 119

This content downloaded from

14.139.235.210 on Tue, 19 Apr 2022 06:01:34 UTC
All use subject to https://about.jstor.org/terms
 Neetu Rani & Jagdeep Singla

Performance and Value-for-Money Audits", Santosh K. Mohanty & K.M. Sahoo (2012), "Hu-
Managerial Auditing Journal, 15(3): 85-96 man Resource Development in IT Indus-
try", Indian Journal of Industrial Relations:
CCH (2007), Human Resource Management, 657-64
From update 298, April 2007, CCH Aus-
tralia Sydney. Sharma, J.P (1991), "HRD in Sports Goods In-
dustry', The Indian Journal of Commerce,
Clardy, A. (2004), "Towards an HRD Auditing
LIV(16)
Protocol: Assessing HRD Risk Manage-
ment Practices", Human Resource Devel-
Spencer, L. M. & Spencer, S. M. (1993), Compe-
opment Review, 3(2): 124-50 tence at Work: Models for Superior Per-
formance, New York: Wiley.
Dolenko, M. (1990), Auditing Human Resource
Management, IIA Monograph, the Institute Srimannarayana, M. (2008), "Human Resources
of Internal Auditors Research Foundation,
Development Climate in India", Indian Jour-
Florida.
nal of Industrial Relations , 44(2):248-55.
Francis, G. (2004), Introduction to SPSS for Win-
Swati Kewlani (2013), "Human Resource Devel-
dows Version 12 & 11 with Notes for
opment Climate a Perceptual Study of
Studentware, (4th ed.), Pearson Education
Australia.
Management Academicians", International
Multidisciplinary Research journal, Vol
George IT Milkovich & Jahri W. Boudreau (1990), 3(4): 107-19
Personnel/ Human Resource management:
VenkatRatnam, C.S. & Srivastava, B.K. (1993),
A Diagnostic Approach, All India Travel-
lers Booksellers, Delhi. Personnel Management and Human Re-
sources, Tata McGraw- Hill publishing
Khan, M. A. (2005), A Practitioner's Guide to company Limited. New Delhi.
Performance Auditing, Plleier Corporation,
California Viswaeswara Rao Tuttgutta(1990), Management
of Human Resource with Special and Spe-
Narayanamurthy .0. (1992), "Employee Welfare cific Reference to Its Changing Pattern in
in public sector- A study of selected units the Hindustan Shipyard Limited, Vizag.
in Visakhapatnam", dissertation , Andhra unpublished Ph.D Thesis, Andhra Univer-
University sity, Visakhapatnam Andhra Pradesh.

N. Ramanathan (2014), "HRD Climate in Com- Ulrich, D. (1997). "Measuring Human Resources:
mercial Banks", International Journal of An Overview of Practice and a Prescrip-
Organizational Behavior and Management tion of Results", Human Resource Man-
Perspectives: 984-93 agement, 36 (3): 303-20.

Parker L. D., Ferris K.R. & Otley, D.T. (1989), Ulrich, D. & Brockbank, W. (2005), The HR Value
Accounting for the Human Factor, Prentice- Proposition, Boston, MA: Harvard Busi-
Hall, Sydney ness School.

Rao T. V. (1985), "Integrated Human Resource

Development System", in Goodstein
D.Leonard and Pfeiffer J. William, Devel-
oping Human Resources, San Diego CA:
University Associates.

120 The Indian Journal of Industrial Relations , Vol 51, No. 1, July 2015

This content downloaded from

14.139.235.210 on Tue, 19 Apr 2022 06:01:34 UTC
All use subject to https://about.jstor.org/terms

View publication stats