Lecture- 13

IE Audit Methodologies
SZABIST- ISLAMABAD
By: Muhammad Ahmed Khan

How to get more out of your day?

1. What are your most productive hours of the
day?
2. Do you estimate how many hours you need
to complete your tasks each day?
3. Do you meet assignment deadlines?
4. Do you write a daily to do list?
5. Do you prevent social engagements from
interfering with your official time?
6. Do you set specific goals for each task?

Balancing your work !!

Tasks
Important

Not
important

Urgent
i IMPORTANT &
URGENT
(Immediate
Attention
Required)
iii URGENT BUT
NOT IMPORTANT
(Would be nice if
done)

Not Urgent
ii IMPORTANT BUT
NOT URGENT.
(Requires
attention, but
not yet critical)
iv NOT URGENT &
NOT IMPORTANT.
(Such activities are
time stealers)

ALWAYS REMEMBER.. Do not postpone

4/23/16

Contents

Audit methodologies
Developing a checklist
Identifying HRD IE Gaps
Diagnostic exercise- A case study
Other assessment areas for HRD audit

Developing a checklist 1/2

What policies should be audited?
Selected policy should be stated, followed by an indication of
how one would verify that the policy is being carried out, and,
ultimately, by measurement of the degree to which compliance
or lack thereof is taking place.

What practices should be audited?

Selected practice should be stated, followed by what the policy
or law requires, and, ultimately, by measurement of the degree
to which compliance or lack thereof is taking place.

What records should be reviewed?

Selected record should be stated, followed by what the record
should contain, and, ultimately, by measurement of the degree
to which compliance or lack thereof is taking place.

Developing a checklist 2/2

What trends should be tracked?
The selected trend(s) should be stated, followed by an X-andY chart defining the measurement points, and ultimately, by
analysis of the implications of historical data on the chart (e.g.
cost per hire, cost per placement, pay rates, headcount, benefit
costs, tardiness and absenteeism, turnover, training
expenditures, etc.).

What analysis will be done?

Audits lead to tremendous insights in and understanding of
how an organization functions.
However, reducing information obtained from an audit to
meaningful components can be overwhelming and should be
discouraged.
Tendency of compressing data for easy navigation during the
advanced stages could be misleading .
6

Identifying HRD IE gaps 1/3

1. Organization Mission and Purpose
i.

What is the purpose of human resources in this

organization?
ii. What are management's expectations?
iii. What are employees' expectations?
iv. What is the mission of the HR function?
v. What are the major human resources objectives?
vi. What are the principal human resources initiatives at
present?
vii. What are the critical priorities at present?

Identifying HRD IE gaps 2/3

2. Human Resources Structure
i.
ii.
iii.
iv.
v.
vi.
vii.

In what areas does HR advise?

To whom is advice given?
In what areas does HR exercise control?
Who has authority in each area?
What is the reporting relationship?
What are the accountabilities?
What is the authority level?

Identifying HRD IE gaps 3/ 3

3. Management Systems
i. What planning mechanisms are used?
ii. What performance management tools are used?
iii. What management systems are used?

HRD Audit - A diagnostic tool

Diagnostic exercise -A case study 1/2

In a large organization, mixed groups were constituted
which were taken through a series of diagnostic exercises
through questions.
QUESTIONS
What are the three good things in your performance
appraisal system?
Which one thing would you like to change in your
performance appraisal system?
Critically evaluate the job rotation in your company.
What are the strengths and weaknesses of your training
policies and practices?
Use three adjectives to describe the promotion policies as
they exist in your company
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Diagnostic exercise A cases study 2/2

The results were compiled and fed back to the group.
By the end of the day, the group knew the results of the
audit and the recommendations the consultants were
going to give to the top management.
Some of the top management team members
participating in the exercise also felt more motivated
to improve the state of affairs.
Thus, in conducting the HRD audit through participative
methods, the consultants were able to diagnose and start
the change process.

12

Other assessment areas for HRD audit.

1. Staffing (sourcing,
interviewing, hiring, job
descriptions, record
keeping)
2. New Employee Orientation
3. Compensation
4. Benefits
5. Employee Relations
6. Terminations, Layoffs
7. Legal Compliance
8. Performance Management

9. Employee Development
10. Health & Safety
11. Reporting and Recordkeeping
12. Retention and Succession
Plans
13. Corporate Practice
14. Policies and Procedures
15. Data storage and collection
16. Confidentiality
17. Human Rights
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End of the series of lectures

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