Letter to the CEO/from the recently published book: HRD Audit by T. V. Rao, avaialble from Sage Publications (http://www.sagepub.in/books/Book244195)
Dear
CEO/CHRO:
Research and experience from several countries including India have demonstrated beyond doubt that good HR practices can go a long way in increasing organizational effectiveness, operational efficiency, profits, stake holder value, customer service, quality, intellectual capital, and many more variables of significance. Though the relationship is not simple and is being investigated evidence is clear that intermediate variables like employee commitment, motivation and engagement etc. get directly affected by good HR practices.
Research and experience from several countries including India have demonstrated beyond doubt that good HR practices can go a long way in increasing organizational effectiveness, operational efficiency, profits, stake holder value, customer service, quality, intellectual capital, and many more variables of significance. Though the relationship is not simple and is being investigated evidence is clear that intermediate variables like employee commitment, motivation and engagement etc. get directly affected by good HR practices.
Working in these areas over the last two decades we have been able to
demonstrate that a systematic evaluation of HRD systems (including how well they
are structured, communicated and implemented etc.) will help streamline HR
practices and develop new ones. Our work also indicates that to make this
happen what is needed is competent HR Department with competent staff, positive
attitudes of line managers and workmen
to learn and top management who have an empowering and developmental
style to create the right culture in their organization. Research also has
shown the importance of organizational culture
and values in influencing the employee productivity and firm output.
By
now there are well tested out and established HRD principles and practices.
However, not all corporations are getting the best form this knowledge and
making effort to enhance their HR practice. HRD Audit is a means of assessing
how mature are the current HRD systems.
It also aims assessing the extent to
which they are building continuously
capabilities of HR staff, line managers, workmen and top management to
facilitate and mange good HRD that results in stake holder value, intellectual
capital and even achieving profits and
productivity.
There
is nothing to be afraid of HRD Audit. “Audit”
is a term that is being used to
create a base for renewal and enhance internal efficiency and effectiveness of
HR practices. In recent times we have come cross HR professionals themselves
being hesitant to get their HRD audited for fear of criticism. Without
assessment we don’t know where we stand
and without knowing where we stand and then undertaking development activities
improvements are unlikely. HRD audit is not a criticism of the past, or of
individuals or the HR departments. It aims at finding opportunities and gaps
for creating an enabling future and strengthens systems and capabilities of the
corporation.
CEOs and CHROs should get their HRD audited as
explained in this book (above). Such audit could be carried out by well trained
internal facilitators. Internal audit of HR once in three to five years can go
a long way in building sustainable corporations that do well in this
competitive world.
I
hope you will read at least the first chapter of this book to see how HR
practices influence organizational outcomes and impact. If convinced you will
use internal teams and train them to be internal auditors to do the audit for
your corporation.
T. V. Rao
Quotes from the Foreword to this book by Dave Ulrich
....Traditionally, “human
resources” is a function mired in administrative processes, focused on building
systems that police employees and restrain managers. Increasingly, human resources (HR) deliver value
to employees (more productive), customers (more quality products and services
with reduced costs), and investors (more financial success including share
price) through delivering talent, leadership, and capability through innovative,
integrated, and aligned HR practices.
If HR professionals are to deliver more
value, they must learn how to define their outcomes (talent, leadership, and
capability) much more clearly. They must
then have the capacity to align their HR investments to those outcomes. They then must transform their HR department
and themselves as HR professionals to deliver this value. Failing to transform HR to value adding HR,
will result in the outcomes like the ones mentioned earlier.
This HRD Audit book offers the discipline that
business leaders require to deliver on their goals and ensures that HR
professionals will know how to deliver more value. This book presents a
comprehensive approach to evaluate how well your HRD function and interventions
are contributing to business goals through talent, leadership, and
capabilities. This book presents a
variety of methodologies of evaluating HRD and its impact using observation,
questionnaires, interviews, workshops and examination of records etc.
CEOs, Line Managers
and all corporate employees and particularly all professional HR Managers will find
these ideas extremely useful tools for delivering business results and
upgrading HR function as well as the HR professionals.
The book offers specific insights and tools for how to turn business aspirations into human capital goals (talent, leadership, and capability), then how to transform the HR department, HR practices, and HR professionals to make this happen.
The book offers specific insights and tools for how to turn business aspirations into human capital goals (talent, leadership, and capability), then how to transform the HR department, HR practices, and HR professionals to make this happen.
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