MU0013 HR AUDIT

HRM practices are instrumental in achieving departmental objectives in enhancing. 2. the dimension of a great place to work are pride and camaraderie 3. People or employee can give the competitive advantages to the company. 4. HR audit is to get the clear judgments about the overall status organization. 5. HR audit is types of functional audit. 6. The concept of HR audit has emerged from the practices of financial audit. 7. Employee evaluation audit helps more towards employee promotions. 8. Organizational development audit helps to identify critical issues of human resource. 9. The essence of ethical organizational is codes of ethics. 10. Performance management audit helps in improving organizational performance. 11. It is necessary to communicate family medical leave Act leave policy, if applicable, in writing to all employees. 12. Exit interview are an important part of an employee's separation from the company. 13. The HR scorecard metrics hierarchy consists of: Operational HR metrics that focus on efficiencies 14. One of the problems for HR is that there is an almost limitless choice of HR matrices. 15. psychometric testing is part of the recruitment or selection process 16. Aptitude and ability tests are designed to assess your logical response or thinking capabilities 17. The human resource valuation system cannot be considered to be a complete system of accounting unless it is followed by equally Competent System of Auditing 18. The concept of human resource valuation and the auditing concept was evolved which emphasizes that human resources should be treated as physical assets and should be shown in the balance sheet of the enterprise 19. As soon as employees come aboard, a company begins collecting information that must be safeguarded to protect Employee Confidentiality 20. When testing is conducted to determine the skilled needed to do the job, the requirements are straightforward 21. Critical areas of human resource management are Recruiting and Retention 22. HR audit is to get a clear judgment about the overall status of the organization 23. Organizations undertake HR audits for the reason : To instill a sense of confidence in the human resource 24. Who can make the things happen in the organization? Employees or people in the organization 25. The Reward and Benefits Audit will enable to Analyses existing arrangements in detail 26. As a partner of the employees, the____________ must Endeavour to improve _________of the staff HR Dept & meeting the needs 27. Double-Loop Feedback in traditional industrial activity, refers to Inspection and rejection 28. Abstract Reasoning Test is based on: Intellectual ability 29. The objectives of human resource valuation are: Human resource cost and values 30. The non-disclosure of human resources accounting information in financial statements distorts: Net income disclosed by the profit and loss account1

1. Good

MU0013 HR AUDIT

HR audit covers safeguarding employees ___________________ managing and supporting them, and participating in their Confidential Information & exit from the company 32. Training and Development focuses on Managers' positive feedback on learners' performance31. 33. Organizations undertake HR audits for fundamental reason: To ensure effective

utilization of human resources.34. One of the basic cost to be considered for recruitment metric are: Screening cost 35. Prescribed form of the employee's rights is explained in terms of Occupational Health

and Safety Act, 36. Compensation systems should be reviewed for: equity, competitiveness and effectiveness 37. Kaplan and Norton describe the innovation of the balanced scorecard as follows: Financial measures tell the story of past events 38. Many legal issues arise out of performance problems, the audit will review or recommend standard items such as: A performance management/performance improvement plan

Unit: 11. Human resources are a relatively modern management term, coined in the 1960. The origins of the function arose in organizations that introduced 'welfare management' practices and also in those that adopted the principles of scientific management'. 2. Personnel management is more administrative in nature. 3. Human resource planning is the term used to describe how companies Ensure that their staff comprise of Right person for doing the job. 4. It is process of acquiring and utilizing Human Resource in the organization. 5. Objectives of HRP:

6. Downsizing forces re-thinking of Employment Strategy i.e. Lifelong employment policies may not be credible after a downsizing.

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7. a) b) c) d) e) f) g) 8.

process of HRP: analyze organizational plans forecast demand for Human Resources forecasting supply of Human resource estimating manpower gaps actions to be taken for Bridging those gaps is planned. Monitoring and control recruitment process:

9.

staffing process:

10. 11.

Recruitment and staffing are crucial factors which define _________ of An organization. Success 6. On boarding is the process of helping new employees to get to know the _________ Of the organization. Working Culture

12. Employee selection is the process comprised of _________ and _________ information about an individual. Collecting, evaluating 13. Scope of human resource audit Audit of all the HR function. Audit of managerial compliance of personnel policies, procedures and legal provisions. Audit of corporate strategy regarding HR planning, staffing, Industrial Relations, remuneration and other HR activities. Audit of the HR climate on employee motivation, morale and job Satisfaction.

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14. a.

Techniques of performance appraisal: Management by Objectives: This concept was introduced by Peter Ducker in 1954

MBO PROCESS b. 360 Degree Appraisal: It is the forms of appraisal where employee get feedback from all the sources that employee come in contact with in his/her job. self appraisal superiors appraisal subordinates appraisal peers appraisal c. assessment centers: methods social/informal events, tests and exercises, assignments being given to a group of employees to assess their Competencies to take higher responsibilities in the future. d. Human Resource Accounting: 15. Human Resource depreciates its value with passage of time. F 16. Retaining highly skilled staff if not important for the organization. F 17. Downsizing programme is the simplest aspect of HRP. F 18. Measuring actual performance is the simplest step of performance appraisal process. F 19. Training is mere wastage of money in any organization. F 20. Training helps in increasing employees productivity. T 21. Human resources are equally important as Financial resources. T 22. Last step of performance appraisal process is to take decisions based on performance. T 23. Workforce: It is number of employed personnel in an organization. 24. Human Resource Planning: It is process of acquiring and utilizing Human Resource in the organization. 25. Performance Appraisal: It is the process of measuring the performance of employees and checking their progress towards the desired goals. 26. HR Audit: It is a tool which measures the effectiveness of various areas of HR. 27. Recruitment: It comprises of process of attracting, screening, and selecting qualified people for a job at an organization or firm.

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UNIT: 2 1. The HRD audit is divided into three components: Organization and Administration of Human Resource Information Management through Documentation Computerized HRIS 2. In computerized HRIS, there is needed to check the system requirements, features and capabilities. (Fill in the blank) 3. 2. Information management through documentation keeps track of documents are held in personnel files. 4. Major Human Resource Development strategies a. Communications Strategy b. Accountability and Ownership Strategy c. Quality Strategy d. Cost Reduction Strategy e. Entrepreneurship Strategy f. Culture Building Strategy g. Systematic Training Strategy h. Learning Strategy 5. HRD has five major systems and each of the systems has sub systems: a. Career system b. Work system c. Development system d. Self-renewal system e. Culture system: 6. The commonly used HRM systems are as follows: Human Resources Information System (HRIS) Personnel Action Tracking System (PATS) Financial Disclosure System (FINDIS) Modular Ethics Training Tracking System (METTS) Office of Workers Compensation Case Tracking System (OWCP) Leave Transfer System Research Position Evaluation System (RPES) Awards Tracking System OPF Tracking System Electronic Performance Management System (e-PMS) 7. The various functions in HRD are carried out through its systems and subsystem. 8. Which of the following is not a culture building sub-systems? technical system 9. 10. Role analysis and Role efficacy are sub systems of work system. HR auditing must perform two basic functions [Cantera, 1995].

a. it must be a management information system b. it must be a way of controlling and evaluating the policies 11. The results can be valued through their cost (a measurement internal to the function) [Walker, 1998]5

MU0013 HR AUDIT

12. HRD culture does not pay attention to the learning behavior in the organization. 13. There is a structure that is prescribed and is used in the organizations worldwide. 14. Which of the following is not an objective of a functional audit? (a) Diagnose (b) criticize (c) control (d) advise 15. The HR audit is not a functional audit. F 16. Aspects of HR Functions are not important while conducting HR Audit. F 17. To have elementary knowledge of compliance is important before conducting HRD Audit. T UNIT: 3 1. According to Dr. Parimalendu Bandyopadhyay, HR Audit means the systematic verification of job analysis and design, recruitment and selection, orientation and placement, training and development, performance appraisal and job evaluation, employee and executive remuneration, motivation and morale, participative management, communication, welfare and social security, safety and health, industrial relations, trade unionism, and disputes and their resolution. 2. Human Resource Audit is a systematic assessment of the strengths, limitations, and developmental needs of its existing human resources in the context of organizational performance (Flamholtz, 1987). 3. HR Audit verifiers performance appraisal system used in the organization. 4. HR Audit does not involve verification of recruitment and selection process. F 5. HR Audit is useless tool for the organizations decreases the effectiveness of HR functions of an organization. F 6. Financial audit is for financial functions while HR Audit is for HR Functions. 7. HR Audit helps to find out the reasons for low productivity & improve HRD strategies. T 8. Which of the following are not accounted for by human resource audits? (a) Skills of its employees (b) abilities of its employees (c) Limitation of its employees (d) habits of its employees 9. Main goal of HR Audit is to verify whether HR Functions are properly co-coordinating with the goal of organization. 10. HR Audit is always conducted by internal employees. F 11. Approaches to Human Resource Audit by Walker Internal perspective External perspective

12.

Common approaches to Human Resource Audit Comparative approach Outside authority Statistical Compliance approach Management by Objectives (MOB) 13. Statistical approach relies on performance measures drawn from the companys existing information system. T 14. 1 In an internal perspective approach to HR Audit there is a trend of valuing actions as a result of the activities undertaken and their cost.6

MU0013 HR AUDIT

15. 16. 17.

HR Audit has nothing to do with legal requirement of the companies. F User-friendly HR systems are the consequence of HR Audit. T Which of the following is not an immediate benefit of HR Audit? a. Create an HR business plan b. Streamline HR work processes c. It provides timely legal requirements. d. Monitor compliance with established regulations and procedures

1. 2.

UNIT: 4 An HR audit is like an annual health check, says EJ Sarma. Conducting HR Audit

4. 5.

3. Methods used in the HR Audit process are: Interviews Observation Group discussions and workshops Questionnaires Analysis of records and documents

Legal audit is necessary for compliance. Preliminary Steps

Conduct Pre-Audit Self-Assessment Collect Pre-Audit Information 6. A pre-audit information request should be forwarded to the client who compiles the necessary information for review by auditors. T 7. Inaccuracy of data and improper decoding of results can create problems in HR audit process. T7

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8.

Compliance is the most important area of HR audit. T 9. Preliminary steps can be ignored if the audit manager is short of time. F 10. HR Audit process involves no challenges and is an easy and relaxed process. F 11. Professional Development and Training is the only area of HR which does not require any audit. F 12. The goals of the audit can be of two types i.e. short or long. 13. The goal of the audit is to ensure effective utilization of human resources UN IT: 5 1. According to Socrates, the unexamined work-life is not worth living. Pfeffer (1998) identified seven practices of successful organisations on the basis of his review of various research studies. It followed properly, these dimensions, as written below, ensure profits through people. Employment Security Selective hiring of new personnel Self managed teams and decentralization of decision making as the basic principles of organizational design Comparatively high compensation contingent on organizational performance Extensive training Reduced status distinctions and barriers including dress, language, office arrangements and wage differences across levels Extensive sharing of financial and performance information throughout the organisation. 2. recruitment refers to the process of attracting, screening, and selecting qualified people for a job at an organization. 3. Various steps in the audit in recruiting involve: Applicant pool generation Employment advertising Employee referral programs Applicant screening Testing Employment interviewing techniques and processes Stress testing HR audit and recruitment 4. Results of an analysis conducted by Mary L. Connerley, Kevin D. Carlson, Ross L. Mecham on 391 applicant pools representing 18 different job families suggest that applicant pool quality can vary substantially within and across job families. 5. Grade Point Average (GPA) 6. AIDA as follows: Attention catch the attention of the target audience Interest hold the interest until the whole message is read Desire Arouse desire for the opportunity offered Action Stimulate action in the form of applications Applicant screening covers background checks. Application testing deals with tests for the entire application. Tests and preliminary tests play a vital role in interviewing process. Proficiency test seeks to measure the skills and abilities.8

MU0013 HR AUDIT

11. Achievement tests aims to measure the knowledge and proficiency the candidate already posses in his field. 12. Dexterity tests examine how quickly and efficiently the candidate can learn about the nature of his job. 13. Movement tests seek to measure the speed and accuracy of the candidate. 14. A good test should always ensure Consistency Assessment of the candidate in all aspects Suitability Standardization Establishment of standards. Phone interviews are generally conducted in two steps. The first step is with a recruiter in Human Resources. The second step is a technical interview, usually with one of the people you would be working with. Stress testing deals with the quality of the application in the environment. Staffing is a term that refers to the management of employee schedules. 18. recruitment involves the process of identifying and hiring best-qualified candidate (from within or outside of an organization) for a job vacancy Workeforce starts with analysis of the strategic position of the business. 20. Staffing is the process of a acquiring, deploying and retaining workforce of sufficient quantity and quality to create positive impacts on the organization's effectiveness. Process for an interview Interview should be effectively planned and executed properly. Getting information about his background. Formulating a question plan. Candidate should be made comfortable during the interview. Drawing the best from candidates. Concluding the interview Professional Employment Organization (PEO) "In today's labor market, new employees know they can quit and start somewhere else tomorrow," says Mel Kleiman, author of Hire Tough, Manage Easy How to Find and Hire the Best Hourly Employees Orientation should be geared toward reinforcing new employees' buying decision. 25. The process of new employee orientation strengthen the new employees relationship with an organisation. 26. The employee workshop focuses on identifying harassment, understanding the complaint procedure, and avoiding retaliation. 27. Diversity training usually includes explanation about how people have different perspectives and views. 28. Individual coaching sessions are provided to modify inappropriate behavior when termination is unwarranted. 29. Benefit administration involves the creation and management of employee benefits. 30. Higher the employee competitiveness, higher is the benefit to the organization.

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Unit: 6 1. WERS: workplaces employments relation survey 1998. 2. In a June 2004 Harvard Business Review article titled "Understanding 'People' People," Timothy Butler and James Waldroop identified four dimensions to optimize interpersonal communications. a. influence b. interpersonal facilitation c. relational creativity d. team leadership 3. Employee Opinion Survey is also known as an employee satisfaction survey. 4. A focus group is a form of qualitative research in which a group of employees are asked about their perceptions, opinions, beliefs and attitudes towards the culture and policies of the organization. Focus groups are interviews, but of 6-10 people at the same time in the same group. 5. Scheduling: Plan meetings to be one to 1-1.5 hours long. Over lunch tends to be a very good time for others to find time to attend. 6. Focus groups are usually conducted with 6-10 members who have some similar nature. 7. One should try to schedule a meeting at a convenient time and place. T 8. Counseling is known by many names like 'therapy' or 'helping. 9. To ensure zero or close to zero performance lag, you must Promote self-discipline Coach for improved performance Hold a conversation Tackle annoying employee habits and issues Issue disciplinary warning Provide the concerned employee with a performance improvement plan Manage a deadbeat employee Communicate disciplinary action 10. A job description is a list of the general tasks, or functions, and responsibilities of a position. 11. What enables your organization to identify talented employees and provide education to develop them for future higher level? (choose the right option) a) Employee turnover b) Promotions c) Succession planning d) Bonus plans 12. While terminating an employee, you should remember take off his dignity to set an example for the others. F 13. The 80-20 principle: Twenty percent of the salespeople make eighty percent of the sales and profits. 14. There are primarily two ways to offer team based incentives, viz. 1. Team based 2. Gain sharing 15. The methods of team based incentive allocation are: Equal incentive payments Differential payments based on contribution to goals Differential payment according to base pay 15. Fair Labor Standards Act (FLSA).10

MU0013 HR AUDIT

16. Compensation systems should be both externally competitive and internally equitable. 17. There are primarily two ways to offer team based incentives, viz. team based and gain sharing. T 18. The workers should be given _________ the normal salary for the time they work overtime. (a) Same as (b) Double (c) treble (d) four times 19. In a good team building system, the team leader has good people skills and is committed to individualistic approach. F 20. Team members should know how to examine team and individual errors without personal attacks. Unit: 7 1. HR Planning is the process by which management ensures that it has the right personnel, who are capable of completing those tasks that help the organization to accomplish its goals. 2. HR Audit verifies all areas of HR except training. F 3. HR Audit involves verification of HR Planning. 4. Audit of Training suggests future improvements based on past activities measurement. T 5. raining increases productivity of the employees but at the same time decreases their efficiency. F 6. HR audit includes audit of managerial compliance of the following except Personnel Policies,Operational Departments , Procedures ,Legal Provisions 7. Audit of Managerial Compliance must be performed once in life time of the company.F 8. Audit of HR Climate Employee Turnover Absenteeism Safety Records Attitude Surveys 9. Organizations should keep records of accidents in the workplace so as to avoid the same in future. 10. Unauthorized Absence costs money and reflect dissatisfaction with organisation. T 11. In order to overcome the competition, revision of corporate strategies should be frequently pursued. 12. Corporate strategies gains competitive advantage through appropriate HR policies. T

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unit:8 1.

2. Description of the staff of the company : The complete staff can be described by:

hierarchic levels years of service qualification sex nationality the number of permanent and temporary employees, interns and physically or mentally challenged employees indexes of personnel rotation and absenteeism 3. Job analysis :The various indicators of Job analysis are as follows: The number of described posts Occupants per post Degree to which the job description cards have been updated The degree of detail in the job description cards The methods used to analyze and describe the jobs. 4. The training indicators are as follows: the procedures followed frequency to which personnel training needs are analyzed the criteria followed in the training programs the evaluation criteria of the efficiency of the training programs the percentage of the HR budget dedicated to training the average number of hours of training per employee The percentage of employees that participate in training programmes by work place categories. 5. Development of professional careers the percentage of people promoted per number of employees; the percentage of vacancies covered internally and externally and the average time per employee it takes to receive a promotion. 6. While conducting HR audit, it is mandatory to audit all the functions. f

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7. Which of the following is not a training indicator? (a) the percentage of people promoted per number of employees; (b) the procedures followed (c) frequency to which personnel training needs are analyzed (d) the criteria followed in the training programs 8. Paid Time-Off [PTO] : A paid time off policy combines vacation, sick time and personal time into a single bank of days for employee paid time off. 9. Planning questions in audit process should be avoided as it is wastage of time. F 10. performance and contribution of HR should be audited regularly. 11. An outside agency can also conduct HR audit. T 12. One should use the elements of HR information system to find out whether the HR activities comply with the law and organizational policies. 13. Post Audit Steps Process-Final Meeting Report Distribution Feedback Implementing Changes 14. Which of the following is not among the options available to organizations for dealing with audit results? Distribute the report to the people concerned 15. The audit is a prescriptive instrument. Funit: 9 1. The purpose of the audit is to reveal the strengths and weaknesses in the non-profit human resources system, and any issues needing resolution. 2.

1. The HR scorecard framework was specifically designed for following reasons: It reinforces the distinction between HR doables and deliverables It helps in controlling cost control and value creation It measures leading indicators It assesses HRs contribution to strategy implementation It lets HR managers to manage their strategic responsibilities It encourages flexibility and change 2. HR scorecard should be periodically re-evaluated. F 3. The basic nature of the scorecard helps fight against measurement systems getting to standardlized. 4. Which of the following is not a reason behind the designing of the HR scorecard framework? (a) It helps in controlling cost control and value creation (b) It encourages flexibility and change (c) It measures all the indicators 13

MU0013 HR AUDIT

5.

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6. Many leading organizations use their performance management systems as a key tool for aligning INSTITUTIONAL, UNIT AND EMPLOYEE performance. 7. Performance management systems are key tools for aligning business goals. T 8. This system measures indicators divided into four categories which are as follows: Financial Customer Internal processes learning and growth 9. There is set format of HR scorecard irrespective of type of business. F 10.Which of the following is not a category measured by HR scorecard system? (a) Strategic (b) Customer 11.financial indicators, emphasize more on the KPI. 12. The balanced scorecard is a strategic planning and management system that is used widely in various organizations including government, and non-profit organizations worldwide for following main objectives: To align business activities to the vision and strategy of the organization To improve internal and external communications To monitor organization performance against strategic goals. 13.Kaplan and Norton describe the innovation of the balanced scorecard 15

MU0013 HR AUDIT 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." 14.When effectively implemented, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an organization. T 15. Which of the following is not true with respect to the description given by Kaplan and Norton about the innovation of the balanced scorecard? a) The balanced scorecard retains traditional financial measures. b) Financial measures tell the story of current events, 16. HR Scorecard: It is a tool for measuring the contribution of human resource management practices to the financial performance of an organization. 17. Balanced Scorecard: It is strategic planning and management system used to align business activities to the vision statement of an organization. 18. KPI: stands for Key Performance Indicators. They are quantifiable unit:10 1. Competency Management can be understood as a strategy and approach to work structurally on the development of employee competencies in order to increase the performance of an organization. 2. Competency Management can help you direct the changes in line with the organizations vision, mission as well as strategic objectives - whether the organization wants to exclusively enhance its performance, or completely transform its way of doing business. 3. Competency Management may also contribute to the improvement of the organizations overall performance, and can build an environment where the employees are motivated. 4. Competency framework is a method of describing the underpinning values that shape and define the culture of an organisation. 5. There are two generic frameworks that an organisation can use and the auditor can check: Management Competency Framework Generic Competency Framework 6. Competency management assists in providing management with impartial information. T 7. Which of the following is not true with respect to the HR audit framework? a) Informs prospective employees about what is expected of them b) Informs staff of the attitudes and behaviours encouraged by the organisation. c) Informs staff of what they can expect from their managers d) Supports staff at some specific levels in their development 8. generic competency framework applies if an employees job does not include supervisory or management responsibilities. 9. There are three ways in which competencies models may be developed: 1. Behavioral Indicators: Behavioral indicators describe the behaviors, thought patterns, abilities and traits that contribute to superior performance. 2. Evaluative Competency Levels: Exceptional competencies of high 16

MU0013 HR AUDIT performers are set as standards for evaluating competency levels of employees. 3. Competencies Describing Job Requirements: This approach is useful for organizations having multiple competency models 10. The approach for developing a competency framework for a particular role is as proposed below: Understand strategic business context Detail role description for position Develop competency framework Validate the competency framework 11.The assessment centre is a powerful tool in the hands of the management for selection and development. As a selection tool it can be used for management promotions, fast tracks schemes, high potential list and change of functional role. 12.Designing and conducting a potential assessment centre should follow basic principles in term of accuracy, fairness, reliability, legality, efficiency, multiple assessors, multiple tests and optimal stress to increase performance. It would involve two types of exercises, i.e., group exercises and individual exercises. 13.Group Exercises : Assigned Role Exercises Unassigned Role Exercises Team Exercises For potential assessment, the following individual exercises are conducted In-Basket Exercises: Used to assess ability to plan, organize, decide, manage and delegate; Learning skill Inventory/Psychometric Inventories: Used to assess ability to learn, leverage knowledge and indicate behavioral patterns; and Interpersonal Effectiveness Module 14.The competencies gaps can be found out by comparing the desired competency (proficiency) levels and displayed competency levels 15.Behavioral indicators describe the behaviors, thought patterns, abilities and traits that contribute to superior performance. 16.In-basket exercises are used to develop ability to plan, organize, decide, manage and delegate. F 17.Competency mapping forms an excellent tool for optimizing the human capital 18.Competency mapping involves identifying the competencies that will be needed by people working in an organization. 19. competency mapping:

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1. Which of the following is not an element of counseling ability? (a) Understanding skill (b) Empathy (c) Body language (d) Information searching 2. Success is possible in business only if proper understanding and analysis of the happenings of the business environment is made. (fill in te blanks) 3. To be successful in professional world, one has to possess the ability to foresee future changes and competitions. T 4. the competencies are a broader term referring to an individuals demonstrated 19

MU0013 HR AUDIT knowledge, skills, behaviors, experience, life view and values and constitute observable, behavioral acts that require a combination of all these attributes to execute. 5.

1. There are four elements in the performance management process against which managers are assessed. These are: Strategic Contribution: What managers need to do in terms of the achievement of targets; Role Performance: What managers need to do in terms of maintaining and continually improving their core role; Common Responsibilities and Behaviors: A measure of behavior in accordance with company values; and Competency Assessment: What managers need to do in terms of developing their underlying skills and knowledge. 2. Various human resource systems in an organization can be integrated with competencies as the focal point. 3. Competencies are demonstrated in a job success. F 4. Succession Planning: A process for identifying and developing internal personnel with the potential to fill key or critical organizational positions unit:11 1. Human Resources Audit Checklist can be a useful tool for HR audit. T 2. Which of the following is not included in the areas of HRD Audit evaluation? (a) recruiting new employees (b) safeguarding confidential information of the employees (c) providing increased leaves to the employees 3. List of various Central Labour Acts 1. Laws related to Industrial Relations A. The Trade Unions Act, 1926 The Trade Unions (Amendments) Act, 2001 B. The Industrial Employment (Standing Orders) Act, 1946 The Industrial Employment (Standing Orders) Rules, 1946 C. The Industrial Disputes Act, 1947 2. Laws related to Wages A. The Payment of Wages Act, 1936 The Payment of Wages Rules, 1937 The Payment of Wages (Amendment) Act, 2005 20

MU0013 HR AUDIT B. The Minimum Wages Act, 1948 The Minimum Wages (Central) Rules, 1950 C. The Working Journalist (Fixation of Rates of Wages) Act, 1958 Working Journalist (Conditions of Service) and Miscellaneous Provisions Rules, 1957 D. The Payment of Bonus Act, 1965 The Payment of Bonus Rules, 1975 3. Laws related to Working Hours, Conditions of Services and Employment A. The Factories Act, 1948 B. The Dock Workers (Regulation of Employment) Act, 1948 C. The Plantation Labour Act, 1951 D. The Mines Act, 1952 E. The Working Journalists and other Newspaper Employees (Conditions of Service and Misc. Provisions) Act, 1955 The Working Journalists and other Newspaper Employees (Conditions of Service and Misc. Provisions) Rules, 1957 F. The Merchant Shipping Act, 1958 G. The Motor Transport Workers Act, 1961 H. The Beedi & Cigar Workers (Conditions of Employment) Act, 1966 I. The Contract Labour (Regulation & Abolition) Act, 1970 The Contract Labour Regulation Rules J. The Sales Promotion Employees (Conditions of Service) Act, 1976 The Sales Promotion Employees (Conditions of Service) Rules, 1976 K. The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 L. The Shops and Establishments Act M. The Cinema Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981 The Cinema Workers and Cinema Theatre Workers (Regulation of Employment) Rules, 1984 The Cine Workers Welfare Fund Act, 1981. N. The Dock Workers (Safety, Health & Welfare) Act, 1986 O. The Building & Other Construction Workers (Regulation of Employment & Conditions of Service) Act, 1996 P. The Dock Workers (Regulation of Employment) (inapplicability to Major Ports) Act, 1997 4. Laws related to Equality and Empowerment of Women A. The Maternity Benefit Act, 1961 B. The Equal Remuneration Act, 1976 5. Laws related to Deprived and Disadvantaged Sections of the Society A. The Bonded Labour System (Abolition) Act, 1976 B. The Child Labour (Prohibition & Regulation) Act, 1986 C. The Children (Pledging of Labour) Act, 1933 6. Laws related to Social Security A. The Workmens Compensation Act, 1923 The Workmen's Compensation (Amendments) Act, 2000 B. The Employees State Insurance Act, 1948 C. The Employees Provident Fund & Miscellaneous Provisions Act, 1952 The Employees Provident Fund & Miscellaneous Provisions (Amendment) Act, 1996 21

MU0013 HR AUDIT D. The Payment of Gratuity Act, 1972 The Payment of Gratuity Rules E. The Unorganised Wokers' Social Security Act, 2008 The Unorganised Workers' Social Security Rules, 2008 7. Laws related to Labour Welfare A. The Mica Mines Labour Welfare Fund Act, 1946 B. The Limestone & Dolomite Mines Labour Welfare Fund Act, 1972 C. The Beedi Workers Welfare Fund Act, 1976 D. The Beedi Workers Welfare Cess Act, 1976 The Beedi Workers Welfare Cess Rules, 1977 E. The Iron Ore Mines, Manganese Ore Mines & Chrome Ore Mines Labour Welfare Fund Act, 1976 F. The Iron Ore Mines, Manganese Ore Mines & Chrome Ore Mines Labour Welfare Cess Act, 1976 G. The Cine Workers Welfare Fund Act, 1981 H. The Cine Workers Welfare Cess Act, 1981 I. The Employment of Manual Scavengers and Construction of Dry Latrines Prohibition Act, 1993 8. Laws related to Employment & Training A. The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 The Employment Exchanges (Compulsory Notification of Vacancies) Rules, 1959 B. The Apprentices Act, 1961 9. Others A. The Fatal Accidents Act, 1855 B. The War Injuries Ordinance Act, 1943 C. The Weekly Holiday Act, 1942 D. The National and Festival Holidays Act E. The War Injuries (Compensation Insurance) Act, 1943 F. The Personal Injuries (Emergency) Provisions Act, 1962 G. The Personal Injuries (Compensation Insurance) Act, 1963 H. The Coal Mines (Conservation and Development) Act, 1974 I. The Emigration Act, 1983 The Emigration Rules, 1983 J. The Labour Laws (Exemption from Furnishing Returns and Maintaining Register by Certain Establishments) Act, 1988 K. The Public Liability Insurance Act, 1991 4. Employment application may or may not be legally compliant. F 5. The EMPLOYEE HABDBOOK is an effective tool for communicating company culture and expectations from the employees towards the company. 6. Annual salary should be mentioned on the offer letter so as to avoid future legal problems. F 7. Permanent should NEVER be used to describe an employees status. 8. Which of the following is not true as regards the new employee orientation process? (choose the right option) (a) New employee orientation process should be personal. (b) Daily schedule should involve more of paperwork Companies policies are told to employees in the orientation process. T An audit can review companys job descriptions for compliance. T Government of India does not provide any laws regarding safe work environment. F 4. Employee handbook: It is manual for the employees containing companys policy , culture and expectations from the employee. 22

MU0013 HR AUDIT Affiliation: Being adopted or accepted as a member of a recognized society or association. 6. Benchmarking: The process of comparing one's business processes and performance metrics to industry bests and/or best practices from other industries. 7. Collective Bargaining: A process between employers and employees to reach an agreement regarding the rights and duties of people at work.

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UNIT: 12 1. In Pareek and Raos model of HRD department the objective of this department is to facilitate the environment of learning and change in the organizations so as to achieve organizational goal. 2. The nature of interventions undertaken by the HRD departments includes: Cultural change through new performance management systems TQM based interventions (in most cases these are undertaken also by a separate group of Professionals) Survey feedback Role clarity and role negotiation exercises Training Career planning and succession exercise Assessment centers and promotion policies Visioning and value clarification exercises Performance coaching workshops Team building interventions 3. Jomon (1997) conducted a research study to identify the factors influencing the use of audit as a change tool. He studied four organizations that have got them audited. They were studied about three years after the first audit. He tried to assess the influence of the following variables in the effective use of HRD Audit: Management styles Organizational characteristics Profile of the HRD Department Competency levels of HRD Department CEO commitment HRD Chief's commitment 4. Jomon's study indicated the following in each of the four companies 5. Managerial Profile: Majority of managers is professionally qualified, average age between 30-40, and more than eight years of work experience. 6. Support Staff Profile: Majority of the support staff is secretarial certificate holders, average age between 35-45, and above 10 years of work experience. 7. Worker Profile: Majority are skilled, with above 10 years of work experience, and average age between 35-45 years. 8. India is the first country to formally establish a totally dedicated Human Resources development Department separated from the personnel department. 9. There is a direct relationship between the CEOs commitment towards HRD and the25

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effectiveness of the HRD function. 10. The organizations with a highly competent HRD Staff derive less benefit from the audit process as compared to the others. F 11.Which of the following organisational characteristics will definitely have a relation to the utilization of the audit inputs? (choose the right option) a) Market Positioning b) Tendency of groupism among employees c) Linkage with Industries d) Productivity of the employees 12. HR Audit betters recruitment policies and more professional staff. 13. The HRD audit also examines the LINKAGES between HRD and other systems. 14. Which of the following is not a business goal? a. Internal operational efficiencies; b. Government authorities satisfaction c. Internal customer satisfaction; d. External customer satisfaction; 15. The interaction of HR practices results in explaining higher variation in the measures of objective organizational performance. T 16. Intervention: It refers to set of sequenced and planned actions or events intended to increase its effectiveness. 17. Exploratory Study: A study is undertaken when not much is known about the situation at hand or no information is available on how similar problem or research issues have been solved in the past. 18. Attitude Survey: Survey to discover the attitude of the people being surveyed to find out reactions and behavioural aspects towards a specific situational aspect. unit:13 1. The main rationale behind the human resource valuation can be understood by going through the following discussion. Guarantee to Customers/Clients Establishing Investor Confidence Planning Outgo Monitoring Performance Employee Motivation Costing Exercise Assessing Segment Efficiency 2. The human resource valuation system cannot be considered to be a complete system of accounting unless it is followed by an equally competent system of auditing. 3. Audit of human resources could help in finding out the efficiency of every segment. 4. The application and usefulness of human resource valuation depends on the future efforts and experiments to be made by practising managers, accountants and academicians. T 5. In the absence of human resource valuation, the management may not realize the negative effects of certain programmes aimed at improving profits in the short run. (Fill appropriate word in the blank) 6. Which of the following does not suggest a rationale behind human resource valuation?26

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(a) helps in assessing segment efficiency (b) helps in monitoring performance of human resource (c) helps in planning income (d) establishes investor confidence. 7. According to Lev and Schwarts, the value of human capital represented by a person of age is the present value of his remaining future earnings from his employment. The value of human capital embodied in a person who is y years old, is the present value of his/her future earnings from employment and can be calculated by using the following formula:

8. Rewards evaluation model suggests a five steps approach for assessing the value of an individual to the organisation. These steps are discussed as under: Step 1: Forecasting the period will remain in the organisation, i.e., his expected service life; Step 2: Identifying the services states, i.e., the roles that the might occupy including, of course, the time at which he will leave organisation; Step 3: Estimating the value derived by the organisation when a person occupies a particular position for a specified time period; Step 4: Estimation of the probability of occupying each possible mutually exclusive state at specified future times; and Step 5: Discounting the value at a predetermined rate to get the present value of human resources. 9. Morse (1973) suggested this approach. Under it the value of human resources is equivalent to the present value of the net benefits derived by the enterprise from the service of its employees. The following steps are involved under this approach: 1. The gross value of the services to be rendered in future by the employees in their individual and collective capacity. 2. The value of direct and indirect future payments to the employees is determined. 3. The excess of the value of future human resources over the value of future payments is ascertained. This represents the net benefit to the enterprise because of human resources 4. By applying a predetermined discount rate (usually the cost of capital) to the net benefit, the present value is determined. This amount represents the value of human resources to the enterprises.

10. Pekin Ogan model (Certainty equivalent net benefit model) Pekin Ogan Model has been suggested by Pekin Ogan (1976) is, in fact, an extension of net benefit approach of Morse. This approach presents a newconcept of determination of certainty equivalent net benefits stream for each employee in an organisation. Under this approach, the value of human resources is determined by taking into consideration the certainty with which the net benefits in future will accrue to the enterprise. The method involves the following steps: (a) each employees net benefit (as determined under the previous approach) which are a27

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function of the employees expected benefits and total costs. (b) a certainty factor which is comprised of the employees probability of continued employment and probability of survival. (c) The certainty equivalent benefits will be calculated by multiplying the certainty factor with the net benefits from all employees. This will be the value of human resources of the enterprise. 11. Under it the value of human resources is equivalent to the present value of the net benefits derived by the enterprise from the service of its employees. 12. Under reward evaluation model, step 3 is to estimate the value derived by the organisation when a person occupies a particular position for a specified time period. 13. Rewards evaluation is a three step model. F 14. Ogans model is an improvement over the other models of HR valuation. 14. Under which model, the value of human resources is determined by taking into consideration the certainty with which the net benefits in future will accrue to the enterprise? Pekin Ogan Model 15. Under the present value of future earning model, the training expenses incurred by the company on its employees are not considered. 16. Human capitals valuation techniques used in most organisations dates back to the industrial era. T 17. Only those employee competencies that are relevant to the HR issues should be valued. F 18. Careful usage of skill-centric automation technology is a proven method to increase retention by better reorganisation. T 19. Retirement Benefit: A monthly payment made to someone who is retired from work.unit:14 1. An HR audit is like an annual health check. It plays a vital role in instilling a sense of confidence in the management and the HR functions of an organisation. E J Sarma 2. In India, the prevalence of HR Audit has been quite popular since 1970s. It first promulgated by BHEL (Bharat Heavy Electrical Ltd), a leading public enterprise, during the financial year 1972-73. Later it was also adopted by other leading public and private sector organisations in the subsequent years. Some of them are Hindustan Machine Tools Ltd. (HMTL). Oil and Natural Gas Corporation Ltd.(ONGC), NTPC, Cochin Refineries Ltd. (CRL), Madras Refineries Ltd.,(MRL), Associated Cement Company Ltd.(ACC) and Infosys Technologies Ltd.(ITL). 3. In India, HR audit was first promulgated by BHEL. 4. In all of the organisations, great support was given to all HRD activities by the employees. F

5. Which of the following would an auditor never suggest as regards the employee training? (choose the right option) a) Develop a training policy in accordance with the business plans of the company, but do not tell it to every employee in the organisation. b) All employees should work closely with the line managers to determine training needs. c) Impact of training should be evaluated. 28

MU0013 HR AUDIT d) Make it mandatory for every person attending training to give a presentation and submit an action plan on how inputs from training can be implemented. 6. Senior executives should be oriented towards the significance of the HRD function 7. An abstract of the personnel policies should be given to all employees at the time of APPOINTMENT 8. Which of the following is not a part of an HR audit? (Choose the right answer from the options given below) (a) Finding the strengths and weaknesses of HRD staff (b) Auditing potential appraisal and promotions (c) Administer HRD audit questionnaire (d) Pacify trade unions 9. A job rotation policy should be tune with the departmental goals. F 10.Core Competency: A core competency is a specific factor that a business sees as being central to the way it, or its employees, works. 11.Intermittent: Stopping and starting at intervals. UNIT:15 1. an assessment requires a 360 degree feedback, and, according to Ulrich, usually employs the following five steps: Developing a model of competencies: Before embarking on an assessment of competence, it is necessary to first determine what arethe competencies that make a successful HR professional. Collect data using the model Summarized data and give feedback to the HR professionals Create action plans Continuous improvement Always all the functions of HR are covered in the audit irrespective of purpose of audit. F Auditing HR function and the HR department may be an integration of individual HR competencies. Competence for HR function is demonstrated by an extensive audit of all its ASPECTS. Which of the following is not a human resource cost? (choose the right option) a) hardware maintenance cost b) labour cost c) overtime d) training cost It is not necessary for the workforce to fit in the companys business objectives. F

2. 3. 4. 5.

6. 7.

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8. Section 1: Business and human resources strategy 9. Section 2: Human resources policies 10.Section 3: Manpower planning 11. Section 4: Recruitment and selection 12. Section 5: Employee Retention 13. Section 6: Training and Development 14. Section 7: Performance management 15. Section 8: Compensation and reward 16. Section 9: Career development and succession planning 17. Section 10: Industrial relation 18. Section 11: Human Resources Information System 19. Section 12: Retirement 20. Section 13: Employee communication 21. Section 14: Human resources cost

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