Personnel Audit:Scope

1. Scope

2. Scope
 Audit of Corporate Strategy
 Corporate Strategy concerns how the organization is going to
gain competitive advantage.
 Audit of the Human Resource Function
 Audit touches on Human Resource Information System, Staffing
and Development, and Organization Control and Evaluation.
 Audit of Managerial Compliance
 Reviews how well managers comply with human resource
policies and procedures.
 Audit of Employee Satisfaction
 To learn how well employee needs are met.

3. 3
Audit of Corporate Strategy
• Human resource professionals do not set
corporate strategy, but they strongly determine
its success.
• By assessing the firm’s internal strengths and
weaknesses and its external opportunities and
threats, senior management devises ways of
gaining an advantage, such as :
• stresses superior marketing channels,
• low-cost production, etc.
• Understanding the strategy has strong
implications for human resource planning,
staffing, compensation, employee relations, and
other human resource activities

4. 4
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

5. 5
2. Staffing and Development
• Recruiting : sources of recruits, availability of
recruits, 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

6. 6
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,

7. 7
Audit of Employee Satisfaction
• Employee satisfaction 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
audit team gathers data from workers.
• The team collects information about wages,
benefits, supervisory practices, career planning
assistance, and other dimensions of job

8. SCOPE
• Personnel audit may be directed at the
following:
• Results: Accomplishments and problems of
current management
• Programmes: Detailed practices and
procedures of which the are composed
• Policies: Both expressed and implied
• Philosophy of management: it’s priorities in
values and goals