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Human Resource Audit

What is Human Resource Audit? Explain its scope and objectives.

HR Audit
HR Audit means the systematic verification of job analysis and design, recruitment and selection, orientation and placement, training and development, performance appraisal and job evaluation, employee and executive remuneration, motivation and morale, participative management, communication, welfare and social security, safety and health, industrial relations, trade unionism, and disputes and their resolution.

HR audit is very much useful to achieve the organizational goal and also is a vital tool which helps to assess the effectiveness of HR functions of an organization.

The Human Resources (HR) Audit is a process of examining policies, procedures, documentation, systems, and practices with respect to an organizations HR functions.
The purpose of the audit is to reveal the strengths and weaknesses in the nonprofits human resources system, and any issues needing resolution. The audit works best when the focus is on analyzing and improving the HR function in the organization.

Scope of Audit:
Generally, no one can measure the attitude of human being. It covers the following HR areas: Audit of all the HR function. 1. Audit of managerial compliance of personnel policies, procedures and legal provisions. 2. Audit of corporate strategy regarding HR planning, staffing, remuneration and other HR activities. 3. Audit of the HR climate on employee motivation, morale and job satisfaction.

Benefits of HR Audit:
Benefits to the organization are: 1. It helps to find out the proper contribution of the HR department towards the organization. 2. Development of the professional image of the HR department of the organization. 3. Reduce the HR cost. 4. Motivation of the HR personnel. 5. Find out the problems and solve them smoothly. 6. Sound Performance Appraisal Systems. 7. Systematic job analysis. 8. Smooth adoption of the changing mindset.

The audit process consists of a series of questions covering the eight primary components of the HR function: Roles, head count, and HR information systems (HRIS) Recruitment Documentation Training, development, and career management Compensation and benefits Performance measurement and evaluation Termination and transition Legal issues and personnel policies The team works to collect information to answer the HR audit questions in each of these categories. The focus is on how these activities and tasks are actually performed in the organization. The first step is to collect all the pertinent information. The process of getting information, in and of itself, can be quite informative.

audit process

Group dynamics
Group dynamics is an important theory that can enable managers to adopt the right approach of interacting with others. People work in groups quite frequently and in many different areas of their life e.g. at work, school/college, sport, hobbies.

Groups can be of two types: informal groups and formal groups. Informal groups are a collection of people seeking and sharing emotional traits. Formal groups on the other hand are a set of people created to do something productive.

Informal groups have their own code of implicit ethics. They can have a powerful influence on the effectiveness of the organization's function. Although the tendency of the group members is to resist outside influences, the impact depends on the norms of that group. Norms are general standards of conduct for various social and organizational settings. Norms can be positive, negative or neutral.

Groups enforce norms to: Facilitate survival of the group Simplify role expectations Protect self-images Express key group values and enhance the group's unique identity Avoid rejection from a group

Team Building:
Team building" (or "'teambuilding'") refers to the process of establishing and developing a greater sense of collaboration and trust between team members. Interactive exercises, team assessments, and group discussions enable groups to cultivate this greater sense of teamwork.

Characteristics of Good Team Building:

High level of interdependence among team members Team leader has good people skills and is committed to team approach Each team member is willing to contribute Team develops a relaxed climate for communication Team members develop a mutual trust Team and individuals are prepared to take risks


Team is clear about goals and establishes targets Team member roles are defined Team members know how to examine team and individual errors without personal attacks Team has capacity to create new ideas Each team member knows he can influence the team agenda

Team Effectiveness:
When evaluating how well team members are working together, the following statements can be used as a guide: Team goals are developed through a group process of team interaction and Agreement in which each team member is willing to work toward achieving these goals. Participation is actively shown by all team members and roles are shared To facilitate the accomplishment of tasks and feelings of group togetherness.

Feedback is asked for by members and freely given as a way of Evaluating the team's performance and clarifying both feelings and interests of the team members. When feedback is given it is done with a desire to help the other person. Team decision making involves a process that encourages active participation By all members.

Leadership is distributed and shared among team members and Individuals willingly contribute their resources as needed. Problem solving, discussing team issues, Effectiveness are encouraged by all team members. Conflict is not suppressed. Team members are allowed to express negative Feelings and confrontation within the team which is managed and dealt with by team members. Dealing with and managing conflict is seen as a way to improve team performance.

Team member resources, talents, skills, knowledge, and experiences are Fully identified, recognized, and used whenever appropriate. Risk taking and creativity are encouraged. When mistakes are made, they are treated as a source of learning rather than reasons for punishment.


Steps in team building

A successful team building requires a number of steps, which include the following: 1-The first and foremost requirement for team building is the recruitment or selection of the participants. Since participants ensure the success of a project, a team leader looks for certain specific traits in them. They must have confidence and the ability to generate trust amongst the fellow members. A participant must possess leadership qualities and must be positively oriented at all times.


2-Next to selection of participants, team building is to have well defined team goals and the same must be communicated to the participating members. The participants in a team must be aware of the reason for their participation so as to remain motivated and to develop inter-group trust. Defining the goal in advance makes the participants feel worthy and competent, while at the same time giving the team a direction to work. Otherwise, the team members become disoriented, directionless and demotivated

3-Team building must be considered in context of the team goal. It requires multiple and balanced skill sets to achieve the goal. A right combination of theoretical and practical skill sets ensures the successful goal achievement. Individuals with technical and theoretical expertise as team members go a long way in coming up with a solution that benefits every one.


4-A team leader has a great role to play in teams overall performance. The leader must have leadership skills to command respect from his or her team. Team building is likely to suffer in absence of positive and effective personality of the team leader, who must be able to positively influence the working environment. 5--successful team building requires training the team in group dynamics, communication skills, conflict management and resolution, goal setting, listening skills and other skills to turn the members into effective participants in a team.

Emotional Quotient and Mentoring

Emotional Intelligence, or EI, describes an ability or capacity to perceive, assess, and manage the emotions of one's self, and of others. Our EQ, or Emotional Quotient, is how one measures Emotional Intelligence. Emotions have the potential to get in the way of our most important business and personal relationships. According to John Kotter of Harvard Business School: Because of the furious pace of change in business today, difficult to manage relationships sabotage more business than anything else - it is not a question of strategy that gets us into trouble; it is a question of emotions.