human resource audit

HUMAN RESOURCE AUDIT

PRESENTED BY-MANISH KANOJIA

MBA III rd sem.

DEFINITION

Seybold and Gray: “HR Audit refers to an examination

& evaluation of policies, procedures & practices to determine the effectiveness of human resource”.

Anna M. Loh:

• An HR audit is a process to review implementation of your institutions policies and procedures, ensure compliance with employment law, eliminate liabilities, implement best practices and educate your managers

AUDIT COVERS BASICALLY THREE THINGS

• Measurement and evaluation of personnel program , policies and practices.

• Identification of gap between objectives and results .

• Determination of what should or what should be not done in future.

Objectives of HR Audit

• To evaluate the total HRM program in the light of organizational objectives of HRM.

• To review the organizational system, human resource sub system in order to find out the efficiency of the organization in attracting and retaining human resource.

Cont…..

• To seek explanation and information on such questions as ‘what happened and why did it happen’.

• To study the current manpower inventory and identify the shortfall or excess , if any.

Benefits of HR Audit

Werther & davis identified the following benefits of HR Audit:

Identification of the contribution of HR department to the achievement of organizational objective.

Improvement of the professional image of HR department.

Cont…..

Clarification of HR department duties and responsibilities.

Stimulation of HR policies and practices.

Ensuring timely compliance with legal requirements.

Cont…..

Reduction of cost through more effective procedures.

Encouragement of greater responsibility and professionalism among members of the HR department.

SCOPE OF HR AUDIT

• HR Strategies and policies.• HR functions• HR compliance• HR climate.

BEFORE WE BEGIN THE AUDIT PROCESS

1. Determine who will conduct the audit. Internal or External2. Secure senior management commitment.3. Define the parameters.4. Introduce the audit process to your

manager.

PROCESS OF HR AUDIT

Appointment of auditors.

Coverage of HR audit

Specification of standards

Collection and evaluation of information.

Preparation of audit report.

BIBLIOGRAPHY

• Human resource planning:(2006) Dipak Kumar Bhattacharyya• Human resource management :(2005) V.S.P. Rao• Human resource management:(2006) L.M. Prasad www.hraudit.com