MEANING A human resource audit evaluates the personnel activities used in an organization. The audit is an overall quality control check on human resource activities in a division or company and how those activities support the organization’s strategy
Benefits of A Human Resource Audit To insure the effective utilization of an organization’s human resources. Motivation of the HR personnel. Find out the problems and solve them smoothly. Provides timely legal requirement.
Sound Performance Appraisal Systems. Systematic job analysis. Smooth adoption of the changing mindset. To maintain or enhance the organization’s and the department’s reputation in the community. To find out the proper contribution of the HR department towards the organization. Development of the professional image of the HR department of the organization.
The Scope of Human Resource Audits Audit of Corporate Strategy The organization is going to gain competitive advantage. Audit of the Human Resource Function Human Resource Information System, Staffing and Development, and Organization Control and Evaluation. Audit of Managerial Compliance Human resource policies and procedures. Audit of Employee Satisfaction To learn how well employee needs are met.
Audit of the Human Resource Function 1. Human Resource Information System - Human Resource Plans : Supply and demand estimates; skill inventories; replacement charts and summaries - Job Analysis Information : Job standards, Job descriptions, Job specifications - Compensation Management : Wage, salary, and incentive levels; Fringe benefit package; Employer-provided services
2. Staffing and Development Recruiting : sources, availability, employment applications Selection : selection ratios, selection procedures, equal opportunity. Training and development : orientation program, training objectives and procedures, learning rates Career development : internal placement, career planning program, human resource development efforts
3. Organization Control and Evaluation Performance appraisals : standards and measures of performance, performance appraisal techniques, evaluation interview. Labor-Management Relations : Legal compliance, management rights, dispute resolution problems. Human Resource Controls : employee communications, discipline procedures, change and development procedures
Audit of Managerial Compliance Compliance with laws is especially important. When safety, compensation, or labor laws are violated, the government holds the company responsible. If managers ignore policies or violate employee relations laws, the audit should uncover these errors so that corrective action can be started.
Audit of Employee Satisfaction It refers to an employee’s general attitude toward his or her job. When employee needs are unmet, turnover, absenteeism, and union activity are more likely. To learn how well employee needs are met. The team collects information about wages, benefits, supervisory practices, career planning assistance, and other dimensions of job.