HR AUDIT

UNIT-2

CONTENTS
          

INTRODUCTION DEFINATION HR AUDIT CYCLE OBJECTIVES SCOPE OF HR AUDIT NEED OF HR AUDIT ESSENTIAL OF A GOOD HR AUDIT BENEFITS OF HR AUDIT PROCESS OF HR AUDIT ELEMENTS OF HR AUDIT CONCLUSION

INTRODUCTION
Audit:An audit is a review and verification of completed transaction to see whether they represent a true state of affairs of the business or not .Thus, audit is an examination and verification of accounts and records. HR Audit :- HR Audit refers to an examination and evaluation of policies , procedure, and practices to determine the effectiveness and efficiency of HRM. In essence hr audit refers:1. The measurement of the effectiveness of the human resources. 2. The determination of what should or not should be done in the future as a result of such measurement.

DEFINATION
 Edwin. B. hippo:- The HR audit is a systematic survey and analysis of all operative function of personal with a summarised statement of finding and recommendation for correction of deficiency.  Dale yoder:- HR audit refers to an examination and an evaluation of HR policies , procedure and practices to determine the effectiveness of HRM.

HR AUDIT CYCLE
HRM OBJECTIVES

ORGANIZATIONAL OBJECTIVE

HR AUDIT CYCLE

HRM ACTIVITIES

HR AUDIT

HRM OUTCOMES

Human Resources Audit Components:

 Determine Scope of Audit & Develop Audit    

Questionnaire. Data CollectionResults Feedback: Action Plan: Continuous Improvement

 To review every aspects of management of HR and to      

OBJECTIVES

determine the effectiveness of each program in the organization. To seek explanation and information in the respect of failure or success of HR. To evaluate implementation of policies. To evaluate the performance of personal staff and employees. To seek priorities values and goals of management philosophy. To evaluate extent to which personnel management policies, and procedure are implemented by various department in the organization To find out any deficiency and short comings in the management of HR.

SCOPE OF HR AUDIT
The HR audit should cover the following aspects which are to be evaluated in the light of results obtained , programmes and procedures and policies formulated . The area s of HR audit include: Mission statement relating to HRM.  Objectives , goals and strategies of HRM.  Accomplishment of HRM.  Programmes of HRM.  HRM policies .  HRM philosophy, its practices and value.  Responses of employees trade union and government to the practices and the achievement.

Scope of HR Audit.
 Role of HRM in total quality management.  Role of HRM in achieving the mission , objective , goals and strategies.

NEED OF HR AUDIT
 Workers participation in management.  Performance feedback of employees.  To handle trade unions.  To handle complexity o HRM.  Higher labor cost and greater opportunities for competitive advantage.  For effective two way communication system.  For proper delegation of authority and centralization of power.

ESSENTIAL OF A GOOD HR AUDIT

A good HR audit helps organization to: Identify programmes that are most important to achieve organization objective.  To find out how well the HR dept is delivering these programmes .  Benchmark HR work to ensure continous improvement.  To promote changes and creativity.  It directs focus of the HR staff to important issues.

BENEFITS OF HR AUDIT
 Identification of the contribution of the HR dept to     

the organization . Encouragement of greater responsibility and professionalism among members of HR dept. Clarification of HR dept function. Finding critical personnel problems. Encouraging timely compliance with legal requirements . Deduction of HR cost through more effective personnel procedure.

Contd
 A thorough review of the dept information

of all the employees.  Stimulation of uniformity of the hr policies and practices.  Creation of increased acceptance of necessary changes in the hr dept.  An hr audit examines the ROI analysis ( return on investment

PROCESS OF HR AUDIT
BUSINESS OBJECTIVES

PEOPLE MANAGEMENT

EVALUATE IMPACT OF CHANGES FROM HR AUDIT

HR AUDIT

IDENTIFY & IMPLEMENT CHANGES

CONCLUSION
Thus, HR AUDIT collects and evaluates information about the state of an organization s HR practices and policies to determine the overall effectiveness of people management in the organization . The HR Audit demonstrates to what extent the HR function contributes to organizational effectiveness as a whole, as well as productivity and morale.