Human Resource Management

1. HUMAN
RESOURCE
AUDIT
PRERNA
TOSHNIWAL

2.  Audit is evaluation, examination, review and verification of
completed activities, to see whether they represent a true
state of affairs of the activities in the department audited.
 HR audit verifies whether the mission, objectives, policies,
procedures, programmes have been followed, and expected
results achieved. It also makes suggestions for future
improvement as a result of the measurement of past
activities.
 It is well practiced in Western developed countries. In India
it has not been completely adopted.

3.  The questionnaire method is the most prominent method of all
the methods of HR audit. Handling, keeping
 It generally deals with objectives of the department in procuring
suitable employees training and developing them, formulating
suitable compensation plans and reward system, ensuring
effective communication, participation, evaluation of
performance, maintaining cordial relations, resolving conflicts,
grievance handling, keeping the morale high, integrating
employees in a team etc.
 It is generally advisable to get the audit done by an outsider
person or independent person who can objectively evaluate the
performance of the HR department. If it is not feasible only then
an internal auditor is selected.

4. 1) To review the performance of HR and its activities to
determine its effectiveness.
2) To locate the gaps, lapses, shortcomings in the
implementation of the policies, procedures,
practices, directives of the personnel department.
3) To take corrective steps in the future to rectify the
mistakes, shortcomings in effective performance of
the work of the human resource department.
4) To evaluate the personnel staff and employees.
5) To evaluate to what extent line managers have
implemented the directives.
6) To seek answers to ‘What happened’? ‘Why did it
happen’? Or ‘Why did it NOT happen’? Etc.

5.  Legal Compliance
 Compensation/Salary administration
 Employment /Recruiting
 Orientation
 Terminations
 Training and development
 Employee relations
 Communications
 Policies and procedures
 Maintenance /Technology

6. 1) Individual Interview
method
2) Group Interview method
3) Workshop method
4) Questionnaire method
5) Observation
6) Analysis of secondary
data
7) Analysis of reports,
records, manuals and
other published
literature

7. Personnel Policy
Human Resource Planning
Recruitment, Selection, Placement
Training & development
Performance Evaluation, Promotion
Employee relations
Communications, Suggestion
Schemes, Areas of participation
Compensation, rewards

8.  Personnel Policy-
1) Is there a written statement and well defined personnel
policy?
2) Does it meet the needs of the organisation and the
people?
3) Does everyone in the organisation understand and
operate by the policy?
4) Is there a system review and monitoring periodically of
this policy?
5) Are there enough checks on the written statements made
in the policy to take care of deviation and contingencies?

9.  Recruitment, Selection and planning-
1) Is there an appropriate, updated procedure for
recruitment and selection of employees at all levels?
2) Is the selection procedure successful? Right
instruments used?
3) Are the line and staff people sufficiently trained and
involved in the selection process?
4) Is the process cost effective?
5) Does it take care of legal requirements?

10.  Helps align HR goals
 Finds better ways for HR to contribute
 Ensures timely compliance
 Discloses how well managers are doing
 Uncovers critical problems & solutions
 Reduces human resource costs
 Provides specific, verifiable data
 Stimulates uniformity
 Reviews and improves information system
 Enhances professional image