The purpose of a Human Resources audit is to assess the effectiveness of the Human Resources function to ensure regulatory compliance.

To look for potentially serious problems To find areas needing improvement To document processes for use in merger, reorganization or inspection To address compliance issues

Routine check-up (uncover any conditions you may have and set up a treatment plan) Determine how you can best align HR operations with organizational goals Ensure compliance with central and state regulations

Interview key staff Review relevant documentation Help you complete a comprehensive questionnaire Compile data a prepare and customized written report Make specific recommendations to improve the efficiency and performance of your HR function

What do the written policies and procedures say? What do the HR managers say? What do the line managers say?

Hiring statistics (acceptance rate, hiring rate, hiring projections) Turnover Compensation and benefits philosophy and practice Exit interview summaries Employee complaints (discrimination, harassment, safety, other) Promotion and advancement practices and trends Human Resources budget and expenditures

The process of workers leaving and coming in business organisation give rise to the phenomenon of employee turnover.

Employee turnover is the rate of displacement of the personnel employed in an organisation due to resignation, retirement or retrenchment.

Avoidable (could prevent)

Unavoidable (could not prevent)

Try to Prevent: High-Value Employees High performance Valued intellectual capital High promotion potential High training investment High experience Difficult to find replacement

Do not Prevent: Low-Value Employees Low performance Little intellectual capital Low promotion potential Low training investment Low experience Easy to find replacement

No attempt to Prevent: Regardless of Value Retirement Dual career New career Health Child care or pregnancy Elder care Return to school Leave country Take a break

Discharge

Downsizing

Discipline Poor performance

Permanent layoff Temporary layoff Site or plant closing, relocation Redundancy due to merger or acquisition

Desirability of Leaving
Low job satisfaction Shocks to employee Personal (nonjob) reasons

+
+
Intention to Quit

Ease of Leaving
Favorable labor market conditions General, transferable KSAOs Low cost of leaving

Quit

Alternatives
Internal: New job possibilities External: Job offers

Separation rate Replacement rate Flux rate

Personal causes Unavoidable causes Avoidable causes

Change of job for betterment Premature retirement due to ill health and old age Domestic problems and family responsibility Discontentment over the job and working environment

Seasonal nature of business Shortage of raw material Change in the plant location Disability, making a worker unfit for the product Disciplinary measures

Dissatisfaction over job, remuneration, hours of work, working conditions Strained relationship with management, supervisors or fellow colleagues Lack of training facilities and promotional avenues Lack of recreational and medical facilities Low wages and allowances

Exit interviews Job analysis and evaluation Scientific system of recruitment, selection, placement and promotion Enlightened attitude of management Use of committee

Extrinsic rewards
Rewards must be

Intrinsic rewards

Assign employees to

meaningful and unique Rewards must match individual preferences Link rewards to retention behaviors Link rewards to performance

jobs that meet their needs for work characteristics Provide clear communication with employees Design fair reward allocation systems Ensure supervisors provide a positive environment

INDUSTRIAL RELATIONS
COMMONLY DENOTES THAT

employees employers relations in both organized and unorganized sectors. Basically, relations between: Management
workers trade unions

by Dr.M.Latha Natarajan

23

What

unions exist and what jobs are covered? What collective agreements are in place, when do they expire? How many grievances are there per year? Are there any outstanding grievances?

Scope of I.R.
This assignment of people not only influences labour relations but also the social, economical, political, & moral links of whole community. It includes: i) Labour relations ii) Employers-Employee relations iii) Group relations iv) Community or public relations
by Dr.M.Latha Natarajan 25

The main aspects of I.R.

1) Promotion & Development of healthy labour & Management. Responsible trade union, job security effective workers participation in management, collective bargaining, welfare work, etc. 2) Maintenance of industrial peace Prevention & settlement of industrial disputes 3) Development of industrial democracy establishment of shop councils &joint management councils , recognition of human rights, proper work environment.

by Dr.M.Latha Natarajan

26

What
What

unions exist and what jobs are covered?

collective agreements are in place, when many grievances are there per year?

do they expire?
How Are

there any outstanding grievances?