What is HR Audit ?

An HR Audit is like an annual health check-up, it plays a vital role in instilling a sense of confidence in the Management and the HR functions of an organisation.

HR Audit is a comprehensive evaluation of the entire HR activities :-

*HR Cost *HRD activities *Health, Env. & Safety *Legal Compliance *Quality *Compensation & Benefits

Need of HR Audit

In HR they audit the skills, styles, systems, strategies, structure is studied and analysed using a variety of methodologies like interviews, (Individual and
group, Top Management, Line Managers, HRD Staff, Workmen and others) * Questionnaires,

* Observations, * Available records, * Workshops etc.

This evaluation helps the organisation have a clear understand and better align the HR processes with business goals.

Organisations undertake HR audits for many reasons :

*To

make the HR function business-driven. Change of leadership.

*To take stock of things & to improve HRD for expanding, diversifying, & entering into a fast growth phase.
*For growth & diversification. *For promoting professionalism among employees & to switch over to professional Management.

*To find out the reasons for low productivity & improve HRD strategies.
*Dissatisfaction with a particular component.

*To become employer of choice.

METRICS
HR Measurement Systems Formulae Monthly Budgets Annual Budget reviews Cost-Benefit Analysis HR Balance-scorecard