Human resource management audits
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  • 1. Presenters  Mudassar Hussain 3039  Ali raza 3042
  • 2. What is HRM? Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. HRM can also be performed by line manager.
  • 3. Human Resource Management Audit?  It is mechanism to review the current HR policies, practices and systems to ensure that they fulfill the rules and regulations. The audit also helps in identifying the areas of improvement in the HR function. Nowadays, the audit is done regularly in the organizations.  The HR audit covers various functions of HR like Recruitment, Compensation & Benefits, Performance evaluation, Termination Process and exit interviews etc.
  • 4. Advantages of HRM audits?  To recognize strengths  To reveal problem areas  Confirms compliance with latest regulations  Ensures effective HR policies  Builds confidence in HR function
  • 5. Types of HR audits  1.Compliance audits  2.Best practice audits  3.Strategic audits  4.Function specific audits
  • 6. 1.Compliance audit  A compliance audit is a comprehensive review of an organization's adherence to regulatory guidelines. Independent accounting, security or IT consultants evaluate the strength and thoroughness of compliance preparations. Auditors review security polices, user access controls and risk managemen procedures over the course of a compliance audit.
  • 7. 2.Best practices audits  How do our recruitment practices , hiring practices , and so on HR functions as well. . .
  • 8. 3.Strategic audits  In particular , our HRM practices helping us to achive our strategic goals etc.
  • 9. 4.Function specific audits  Focus on one or more specific HRM areas , such as compensation , T&D etc…
  • 10. Legal compliances requires auditing;  Hiring  Performance evaluation  Employee discipline  Termination  Auditing HRIS (personnel files)
  • 11. Challenges in way of auditing?  Globalization  Business Competitors Innovation  Growth of the organization  Building organizational capabilities  Managing Change like new HRM policies  Change technology  Attracting and Retaining Intellectual Capital
  • 12. The HRM auditing process  1.decide on the scope of the audits.  2.design auditing team.  3.using checklists & available tools(softwares)  4.Budgeting of auditing.  5.follow laws and regulations  6.top management support.  7.develop the auditing checklists.  8.use questionnaires.  9.provide feedback to management.  10.take actions.
  • 13. Methods of HRM audits INDIVIDUAL INTERVIEW METHOD GROUP INTERVIEW METHOD WORKSHOP METHOD QUESTIONNAIRE METHOD OBSERVATION ANALYSIS OF SECONDARY DATA ANALYSIS OF REPORTS, RECORDS, MANUALS AND OTHER PUBLISHED LITERATURE
  • 14. INDIVIDUAL INTERVIEW METHOD  Top level management and senior managers are interviewed, individually. It helps in following:   Knowing their thinking about future plans and opportunities available for the company  Knowing about their expectations from the HR audit  Getting sensitive information pertaining to working styles and culture
  • 15. GROUP INTERVIEW METHOD  Group interviews and discussions with the employees and executives of large companies for HR audit, facilitate collection of information about effectiveness of existing systems. 
  • 16. WORKSHOP METHOD  Workshop Methods also known as Large Scale Interactive Process (LSIP) is conducted in some cases of audit.
  • 17. QUESTIONNAIRE METHOD  Feed back about various dimensions of HRD, including the competency base of HRD staff, the styles of line managers, the implementation of various HRD systems, etc are obtained through a detailed questionnaire from individuals or groups for HR audit.  This method helps in benchmarking.
  • 18. OBSERVATION o The auditors should physically visit the workplace o To assess the extent to which a congenial and supportive human welfare oriented climate exists in the company. o This is essential because employees are not likely to give their best if they do not live in good surroundings o The observations can be conducted using a check list of questions.
  • 19. ANALYSIS OF SECONDARY DATA  Analysis of secondary data can give an insight into the HRD assets and liabilities of the company.  Analysis of age profiles of the employees, analysis of the training attended, analysis of the minutes of the meetings held etc., help in determining the assets and liabilities.
  • 20. ANALYSIS OF REPORTS,RECORDS, MANUALS AND OTHER PUBLISHED LITERATURE Published literature of the company including annual reports, marked hand- outs, training calendar personnel manual, and various circulars issued from time to time are also likely to help immensely in assessing the strengths and weaknesses of HRD.
  • 21. Safety audit? Safety auditing is a core safety management activity, providing a means of identifying potential problems before they have an impact on safety.
  • 22. security audit? A security audit is an essential assessment of how effectively an organization’s security policies are being implemented.
  • 23. Health audit?  is a process that has been defined as "a quality improvement process that seeks to improve workers care and outcomes through systematic review of care against explicit criteria and the implementation of change