Human resource Audit for HR Audit

A Human Resource Audit is a systematic review of HR policies, procedures, and practices to ensure compliance, efficiency, and alignment with organizational goals. It assesses areas such as recruitment, training, performance management, and legal compliance, identifying strengths and areas for improvement to enhance overall HR effectiveness.

1. Human resource Audit Presented By Rajesh Mondal

2. Nature of Human Resource Audit An HR audit is a tool for evaluating the personnel activities of an organization. The audit may include one division or an entire company. 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. The audit is an overall quality control check on HR activities in a division or company and an evaluation of how these activities support the organization's strategy.

3. Benefits of Human Resource management Audit Identification of the contributions of the HR department to the organization, Improvement of the professional image of the HR department, Encouragement of greater responsibility and professionalism among members of the HR department Clarification of the HR department's duties and responsibilities Stimulation of uniformity of HR policies and practices, Finding critical personnel problems Ensuring timely compliance with legal requirements Reduction of HR costs through more effective personnel procedures Creation of increased acceptance of the necessary changes in the HR department, and A thorough review of the department's information system.

4. Process of Human resource Audit Corporate strategy Human Resource Research Managerial compliance Employee satisfaction comparison MBO Statistical compliance Evaluation Report Human Resource Functions scope Approaches Outside Authority

5. Audit of Human Resource Function It involves audit of all HR activities Determine the objective of each activity. Identify who is responsible for it performance, Review the performance, Develop an action plan to correct deviations, if any, between results and goals Follow up the action plan.

6. Audit of Managerial Compliance It involves audit of managerial compliance of personnel policies, procedures and legal provisions. How well are these complied with should be uncovered by the audit so that corrective action can be taken. Compliance with the legal provisions is particularly important as any violation makes the management guilty of an offense.

7. Audit of the Human Resource Climate The HRM climate has an impact on employee motivation, morale and job satisfaction. Employee Turnover - Employee turnover refers to the process of employees leaving an organization and requiring to be replaced. Absenteeism - Absenteeism refers to the failure on the part of employees to report to work though they are scheduled to work Attitude surveys - Attitude surveys are probably the most powerful indicators of organizational climate. Attitudes determine an employee's feeling towards the organization, supervisor, peers and activities.

8. Audit of Corporate Strategy HR professionals do not set corporate strategy, but they strongly determine its success. Corporate strategy helps the organization gain competitive advantage. By assessing the company's internal strengths and weaknesses and its external threats and opportunities, the senior management devises ways of gaining an advantage. Whether the company stresses superior marketing channels, service, innovation, low-cost production, or some other approach, HRM is affected. Understanding the strategy has strong implications for HR planning, staffing, remuneration, industrial relations, and other HR activities.

9. Auditors may adopt any of the five approaches for the purpose of evaluation Comparative approach Outside authority approach Statistical approach Compliance approach Management By Objectives (MBO) approach

10. Approach Definition Real-life Example Comparative Approach Compares the HR practices of an organization to industry standards or benchmarks to identify areas for improvement. Google conducts regular HR audits using a comparative approach, benchmarking its practices against other tech giants like Apple and Microsoft. Outside Authority Approach Involves bringing in external experts to evaluate the organization's HR practices, ensuring objectivity and impartiality. Amazon employs external HR consultants to conduct periodic audits, seeking fresh perspectives on its HR policies and procedures. Statistical Approach Utilizes statistical methods to analyze HR data, identifying trends and patterns that may indicate underlying issues or areas for improvement. Walmart utilizes statistical analysis of HR data to identify potential areas of discrimination or bias in its hiring and promotion practices. Compliance Approach Assesses the organization's adherence to legal and regulatory requirements related to HR practices. Johnson & Johnson conducts regular compliance audits to ensure its HR practices comply with labor laws, non-discrimination regulations, and data privacy laws. Management by Objectives (MBO) Approach: Evaluates HR practices based on their effectiveness in achieving organizational goals and objectives. General Electric employs an MBO approach to HR audits, assessing whether HR practices are aligned with the company's overall strategic goals and contributing to its success. APPROACHES TO HUMAN RESOURCE AUDIT

11. Discussion