Assignment of roles to the HR team members is as much important as in any other function. The roles need to be assigned diligently to each HR team person so that access rights assigned are relevant to one’s skill set/competence and segregation of duties is not compromised.
This can be accomplished by assigning appropriate macro level rights to different individuals in hierarchy for accessing a) work flow or process, b) master data tables, c) configuration tables and d)documents and data tables relevant to HR function. Further rights needs to be judiciously assigned at granularity level for the above vis a vis following aspects to prevent unethical or fraud prone activities
a) create or make b) edit or modify c) delete d) view e) approve or authorise
Few examples of Fraud prone role assignment in HR function
- HR supervisor shortlisting & interviewing candidates for various positions and thereafter issuing appointment letters by same Person.
- HR supervisor directly authorising time & attendance sheets, providing payroll inputs to pay roll agency /team and thereafter authorising payroll credit to employees accounts
- HR supervisor designing payroll scales and thereafter finalising emoluments, perks & other terms with shortlisted candidate without consulting hierarchy
- HR supervisor creating employee masters for and there after making changes towards performance rating, emoluments etc
- HR supervisor designing employee’s skill/ competency matrix, and there after directly assigning current competency score without obtaining inputs of relevant functional boss of the appraisee.
- HR supervisor directly receiving employee resignation letter and thereafter accepting same without involving functional team supervisor.
- HR supervisor directly conducting exit interview without involving functional team and thereafter deciding relieving date
- HR supervisor designing / issuing welfare schemes /designing HR related forms /claim forms and thereafter authorising self’s claim vouchers for expenses &reimbursements.
- HR supervisor deciding authority norms / manuals and there after finalising workflows
- HR person doing emolument’s benchmarking & designing annual pay scales and there after deciding directly periodic increment rates /pay hikes or promotions for employees.
- Functional supervisor conducting performance appraisals directly and there after deciding awards amounts or & transfers, or terminations without obtaining inputs from HR or functional head.
- Functional supervisor directly authorising full & final settlement amount and there after issuing relieving letter to resigned, terminated, retirees.
- Functional Supervisor issuing show cause notice to blue collar workman and there after directly deciding disciplinary action issuing termination letter.
Therefore rights must follow maker-checker concept( two or three different persons/users making, checking and approving activities ) to prevent occurrence of any unethical practice .