Set- 1

Question 1: Explain the process of HR Audit in detail 1101

Answer 1:

The audit process

The HR audit process is conducted in different phases. Each phase is designed to build
upon the preceding phase so that the organization will have a very strong overview of
the health of the HR function, at the conclusion of the audit. These phases include:

Pre-Audit Information: This phase involves the acquiring and review of relevant HR
manuals, handbooks, forms, reports and other information. A pre-audit
information request is forwarded to the client who compiles the necessary
information for review by auditors.

Pre-Audit Self-Assessment: In order to maximize the time spent during subsequent

portions of the audit, a pre-audit self-assessment form, if sent to the client can be of
use. The self-administered yes/no questionnaire asks a number of questions about
current HR policies and practices.

The completion of this self-administered questionnaire allows auditors to identify

key
areas for focus during the HR audit.

On-site Review: This phase involves an on-site visit at the client’s facility interviewing
staff regarding HR policies and practices. A very in-depth HR audit checklist
is completed.

Records Review: During the on-site visit, a separate review is conducted of HR records
and postings. Employee personnel files are randomly examined as well as
compensation, employee claims, disciplinary actions; grievances and other
relevant HR related information are checked.

Audit Report: The information gathered is used to develop an HR audit report. The
audit report categorizes action needs into four separate areas. The areas that are
urgent and important (UI), not urgent needs but important (NUI), not urgent but not
important needs (NNI)), and important opportunities needs (I0). As a result of
this scheme of classification, managements can prioritize their steps.
The critical areas
The comprehensive HR audit covers all areas of HR management like
recruitment practices, training and development, compensation and benefits,
employee and union relations, health, safety and security, miscellaneous HR policies
and practices-welfare, strategic HR issues, manpower planning/budgeting.

Besides classifying needs in each of the above areas, the HR audit also cites relevant
laws, cases and research to support the recommendations.

Preparation for an audit

Auditor engagement: If external firm carrying out the audit, it is preferable to set
terms in writing defining and agreeing on scope .If using internal resource, it is better to
appoint them formally with clarity on scope and select persons who are non political or
those who are not high on hierarchy. Also, if internal persons are auditing there must
be training in auditing.

Documents, manuals, handbooks, forms and reports auditor must have access to
relevant information contained in employee files and other confidential
documents of the organization. Auditors must be given unrestricted access to
records, once they sign agreement for confidentiality.

Data gathering: Completion of a self-assessment questionnaire significantly

expedites the audit process and allows for better audit planning.

On-site access: The on-site portion of the audit is the most

critical.
Question 2: Write a detailed note on Training and Development Audit 1101

Answer 2:

. Individual and departmental Training and

Development plans in place and strategically linked to
departmental strategic objectives
. A diverse set of training and development activities
(e.g. overseas attachment, overseas training, secretariat
attachment)
. Training and Development integrated with PMS and
Training and Succession Plan ! Manpower Plan
Development . Timely induction training provided to all new staff
with management training to be provided
systematically afterwards
. Regular review of the Training and Development policies
. Evidence of improvement in work quality and efficiency
. Managers’ positive feedback on learners’ performance
. Training courses rated highly in quality and relevance

Importance of Training and Development

6 Optimum Utilization of Human Resources - Training and Development helps in
optimizing the utilization of human resource that further helps the employee to
achieve the organizational goals as well as their individual goals.

6 Development of Human Resources - Training and Development helps to provide an

opportunity and broad structure for the development of human resources’ technical
and behavioral skills in an organization. It also helps the employees in attaining
personal growth.

6 Development of skills of employees - Training and Development helps in increasing

the job knowledge and skills of employees at each level. It helps to expand the horizons
of human intellect and an overall personality of the employees.

6 Productivity - Training and Development helps in increasing the productivity of

the employees that helps the organization further to achieve its long-term goal.

6 Team spirit - Training and Development helps in inculcating the sense of team work,
team spirit, and inter-team collaborations. It helps in inculcating the zeal to learn
within the employees.

6 Organization Culture - Training and Development helps to develop and improve the
organizational health culture and effectiveness. It helps in creating the learning
culture within the organization.
6 Organization Climate - Training and Development helps building the positive
perception and feeling about the organization. The employees get these feelings
from leaders, subordinates, and peers.

6 Quality - Training and Development helps in improving upon the quality of work
and work-life.

6 Healthy work-environment - Training and Development helps in creating the

healthy working environment. It helps to build good employee, relationship so that
individual goals aligns with organizational goal.

6 Health and Safety - Training and Development helps in improving the health and
safety of the organization thus preventing obsolescence.

6 Morale - Training and Development helps in improving the morale of the work force.

6 Image - Training and Development helps in creating a better corporate image.

6 Profitability - Training and Development leads to improved profitability and

more positive attitudes towards profit orientation.

6 Training and Development aids in organizational development i.e. Organization

gets more effective decision making and problem solving. It helps in understanding
and carrying out organizational policies

6 Training and Development helps in developing leadership skills, motivation, loyalty,

better attitudes, and other aspects that successful workers and managers usually
display.

-Training and Development demonstrates a commitment to keeping employees on

the cutting edge of knowledge and practice.
Question 3: Mr. Deshmukh wants to conduct an HR Audit in his organization. He

wants to specifically audit the Employment Practices and Employee involvement.

Suggest what all aspects you may cover in the questionnaire for the audit. Prepare a

questionnaire with at least 15 statements. 1101

Answer 3:

SAMPLE QUESTIONNAIRE # 1

Example of an internal Human Resources Audit: Please amend using questions from

the comprehensive HR Audit to determine the content of your Human Resources

Audit. (Send a copy of this report to the various departments within your Company or

Companies within your Group)

Please complete the following questionnaire as accurately and thoroughly as possible,

attaching relevant documentation where necessary, and return to — — — — — — — —By— — — — — —

no later than — — — — — — — — — — — — — — — — .

Contact Details

Company Name: Registered As — — — — — — — ——

— ———————————— — — — — — — — — — — — — —

Trading As — — — — — — — — — — — — — — — ——
— ———————————————————————————— — — — — —

Contact Person: Name: — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

Title: — — — — — — — — — — — — — — — — — ———
— — — — — — — — — — — — — — — — — — — —

Contact Numbers: Tel # — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

Fax #: — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

Cell # — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

E Mail: — — — — — — — =
— — — — — — — — — ———
— — — — — — — — — — — — — — — — — — — —
Physical Address: — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

Postal Address: — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

Company Details

No1 Yes 1Does the company have a formal Organogram?:

(If yes, please attach. If no, please attach a list of all positions within the

company). Does the company have comprehensive job descriptions for all said

positions?

No (If yes, please attach).1 Yes 1

Employee Head count: Permanent Employees: — — — — — — — — — — — — — — — — — — — — —

Permanent Part-Time Employees: — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

Contract Employees: — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

Casual Staff: — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

No1 Yes 1Does the Company have a formal HR Manual?

No1 Yes 1Does the Company have a formal HR Filing System?

Does the Company have a computerized HR/Payroll

System? No1 Yes 1HR:

Brand Name: — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

Payroll: Yes/No

Brand Name: — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

What Records and Control Measures are in place?

Employment Details

(For each category, please indicate if applicable to all employees. If not, please
supply details. Further, please indicate whether a policy in regard to that specific
category is in place or not and attach same to this document).

Working Hours: Hours per day: — — — — — Days

— — —per— week: — — — — — — — — — — — — —

Working Hours Policy: Yes!No

Overtime: Hours per day: — — — — — — Days

— — —per— week:
— — — — — — — — — — — — — — — —

No1 Yes 1Overtime Policy in Place:

Annual Leave: — — — — — — — — — — — — working

— — — —days
— —leave
— — per
— —annum
—

Sick Leave: — — — — — — — — — — — — — — days

— — per
— —year!36
— — — month
— — — — — —

cycle Maternity Leave: — — — — — — — — — — — — — — — months

— — — —per— — — — — — — — — —

occasion Family Responsibility Leave: — — — — — — — — — — — — — —per

— — — — — — — — — — — —

occasion Study Leave: — — — — — — — — — — — — — — ——

— ———————per
—————— — — — — — —

examination Unpaid Leave:

— — — — — — — — — — — — — — — — — — — — — — — — —Leave
— — —Policy
— — — — — — — — — — — — — — — —

in Place No1 Yes1: Annual

Sick ! Yes ! No

Maternity ! Yes ! No

Family Responsibility ! Yes ! No

Study ! Yes ! No

Unpaid ! Yes ! No

Remuneration and Benefit Details

(Please indicate whether a policy in regard to each specific category is in place or not
and attach same to this document).
If available, please supply a copy of the

following: Letter of Employment or Contract

Pay slip

Induction Programme

Employee Handbook

Certificate of Service

Medical Aid: Name of Fund: — — — — — — — — ——

— —————————————— — — — — — — — — — — — —

Company Contribution Details:

— — — — — — — ——
— ———————————— — — — — — — — — — — — — —

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

Pension!Provident Fund Fund type:

Pension!Provident — — — — — — — — — — — — ——
— —————————————————————— — — — — — — — —

Name of Fund: — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

Company Contribution Details:

— — — — — — — ——
— ———————————— — — — — — — — — — — — — —

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

No1 Yes 1Employment Policy:

How are employees’

salaries?

Packages structured? : — — — — — — — — — — ———— — — — — — — — — — — — — — — — — — — —

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

Company Vehicle Policy: Yes ! No

Transfer and Relocation Policy: Yes !

No

Retrenchment Policy: Yes !

No
What is the Official Retirement Age of the Company? Male — — — — — — — —
Years
Female — — — — — — — — — — — — — — — — years
— — — — — — — — — — — — — — —

Early Retirement Policy: Yes ! No

Does the Company offer Educational Assistance? Yes ! No

If yes, to whom:

Employees Only

Employees and Employees Immediate children

Other (please specify) — — — — — — — — — — ———

— — — — — — — — — — — — — — — — — —

Nol Yes lDoes the Company offer any Loan Facilities:

If yes, please indicate:

To whom — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

What Category:(e.g. welfare, home) — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

Other

(Please indicate whether a policy in regard to each specific category is in place or not
and attach same to this document).

Aids & Nol Yes lLife Threatening Diseases Policy:

Nol Yes lDisciplinary and Grievance Procedures:

Harassment & Nol Yes lNon-Discrimination

Policies: Nol Yes lSmoking Policy:

What are the Company’s ratios of employees?

Company Total White Black Male Female

Senior Management
Middle Management
Supervisory
General Staff
No. of Disabled Employees:

— — — — — — — — — — —Employment
— — — — — Equity
— — — Policy:
—

Yes ! No

Information Systems

What computer software programmes do you use: — — — — — — — — — — — — — — — — — — — —

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

Do your employees have their own email addresses: Yes ! No

Do you have a Corporate Website: Yes ! No

If yes, please specify URL: http:!!www

— — — — ——
— —————— — — — — — — How
— — many
— — —employees
— — — — have access to

e-mail facilities within your

Company !department? — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

Nol Yes lDo any employees work on a contract

basis: Nol Yes lDo any employees work from home:

Restructuring

Nol Yes lis it likely that your organization or the terms and conditions of
employees may be restructured?

Are you famifiar with the requirements of?

The new Basic Conditions of Employment Act: Yes ! No

Employment Equity Act: Yes ! No

Code of Good Practice on Sexual Harassment in the Workplace: Yes ! No

Labour Relations Act 66 of 1995 (as amended): Yes ! No

Skills Development Act: Yes ! No

Code of Good Practice on the Regulation of Working Hours: Yes ! No

Code of Good Practice on Maternity Leave: Yes / No

Do you participate in any Corporate Social Investment schemes: Yes / No

If yes, please specify which organization: — — — ——

— ———— — — — — — — — — — — — — — — — — — .

Questionnaire Sampfe # 2

1. Do you comply with federal and state guidelines requiring that certain
information must be posted in view of employees and applicants? Yes / No/
Not Sure
2. How is your employee files organized? Do you comply with current Employee
Privacy regulations? Yes /No /Not Sure
3. Jobs are classified as exempt (salaried) and non-exempt (hourly)? Are you
confident that your job classification system would pass a Dept. of Labor audit
if challenged? Yes /No /Not Sure
4. Do you comply with all the Federal and State laws and requirements applicable
to your company? Yes /No /Not Sure
5. Are your salaries and wages reasonable, competitive and both externally and
internally equitable? Yes /No /Not Sure
6. Do you understand your responsibilities to regularly provide training
and/or information to your employees on legally required topics such as
Illegal
Harassment Prevention, No Discrimination, changes to benefits, changes
to company policies and procedures, etc? Yes /No Not Sure
7. Do you have difficulty attracting and/or keeping good, qualified workers? Yes
/No /Not Sure
8. Are you confident that your employees are aware of the work rules in your
organization covering items such as: attendance, absences, tardiness, theft,
intoxication, drug use, insubordination, confidentiality, no harassment, etc?
Yes
/No /Not Sure
9. Is absenteeism a problem for your organization? Yes /No /Not Sure
10. Is the quality of work or customer service in your organization as high as it could
be?

Yes/ No /Not Sure

If you answered “No” or “Not Sure” to any four or more of the Questions,
you would benefit greatly from an audit. If you answered No to any one of
Questions
1, 2, 3 or 4, you would benefit greatly from an audit.