HR AUDIT AND EVALUATION Presented By :- Nilesh Mahananda
CONTENTS Definition Nature Of HR Audit Scope Of HR Audit Objectives HR Audit Methods HR Audit Approaches HR Audit Process Benefits Conclusion
DEFINITION The Human Resources (HR) Audit is a process of examining policies, procedures, documentation, systems, and practices with respect to an organization’s HR functions.
NATURE An HR audit is a tool for evaluating the personnel activities of an organization. It gives feedback about the HR functions to operating managers and HR specialists . It also provides feedback about how well managers are meeting their HR duties.
SCOPE Audit of all the HR function. Audit of managerial compliance of personnel Policies, Procedures and Legal provisions. Audit of corporate strategy regarding HR Planning, Staffing, IRs, Remuneration and other HR activities. Audit of the HR climate on employee motivation, morale and job satisfaction .
OBJECTIVES To analyze and improve the HR functions in the organization. To expose the strengths and weaknesses in the HR function, and any issues need resolution. To evaluate the efficiency and effectiveness of HR functions. To ensure whether the HR function is on the right path to achieve and helping company to achieve its goal or not.
HR AUDIT - Approaches Auditors may adopt any of the five approaches for the purpose of evaluation: Comparative approach Outside authority approach Statistical approach Compliance approach
In the comparative approach , the auditors identify another company as the model. The results of their organization are compared with those of the model company. In the outside authority approach , the auditors use standards set by an outside consultant as benchmark for comparison of own results .
In the statistical approach , statistical measures of performance are developed based on the company’s existing information. In the compliance approach , auditors review past actions to determine if those activities comply with legal requirements and company policies and procedures.
HR Audit Process
BENEFITS Identifies the contribution of Human Resource department to the organization Improves the professional image of the Human Resource department. Encourages greater responsibility and professionalism among member of the Human Resource department. Clarifies the HR department’s duties and responsibilities. Stimulates uniformity of HR policies and practices. Finds critical HR problems. Ensures timely compliance with legal requirements .
CONCLUSION HR audit is a comprehension evaluation of the current hr strategies, structure, style and skills in the context of the short and long term business plan of a company. Its main objective is to align the hr functions with business goals or to create a business driven hr function.