This document discusses personnel records, audits, and research. It defines records management as the planned control of records including decisions about retention, transfer, microfilming, and destruction. It notes that personnel records and reports provide managers with information about human resource use. It then discusses the essential characteristics of good records and reports, types of personnel records, principles of record keeping, the significance of personnel records for functions like auditing and research, what a personnel audit involves and its scope, how personnel research is conducted, and techniques used to carry out personnel research like surveys and statistical studies.

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Chapter
27
PERSONNEL
RECORDS, AUDIT
AND RESEARCH

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ANNOTATED OUTLINE
INTRODUCTION
Records management is the planned control of records. It includes
decision making regarding the retention, transfer, microfilming and
destruction of records. Personnel records and reports enable
managers to obtain requisite information regarding the use of human
resources in various departments or divisions.
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Essentials of a good record and report
Record
Report
1. Simple: Record-keeping must be simple. It should, at the 1. Conformity: Reports must conform
same time, meet the requirements of the organisation.
to organisational objectives.
2. Accurate: Records should be error-free.
They must be built around facts as far as possible.
2. Unbiased: Reports must be objective
and prepared without prejudice or bias.
3. Economical: It should not cost a fortune
to maintain records. The cost of maintaining
records must not be high.
3. Data based: Reports must be built
around facts. Theycmust not only
present facts but interpret them in a
meaningful manner.
4. Useful: Records must provide information which could
be put to use. They must facilitate managerial decision
making. To this end they must be reviewed and kept
up-to-date.
4. Clarity and Simplicity: The report must
be clearly worded so that people could
use it easily. To make it simple, some
illustrative points could also be used.
time
5. Timely: Reports must be submitted
keeping the time limits in mind. They
very purpose of preparing a report
gets defeated once it exceeds the
limit.
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Records Management
The purposes of records management may be listed thus
 To keep an orderly account of progress
 To facilitate the preparation of the statement of the true conditions
 To enable the making of comparisons
 To facilitate the detection of errors and frauds
 To meet legal requirements
 To serve other miscellaneous purposes
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Types of Personnel Records

job application and test scores

job descriptions and job specifications

interview results

employment history

medical reports

attendance records

payroll

employee ratings

training records

leave records

accident and sickness records

grievances, disputes records

contracts of employment

records to be kept under various statutes
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Fundamental principles of record
keeping
For effective records management, record keeping must
 Justification
 Verification
 Classification
 Availability of required information
 Reasonable cost
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Significance of Personnel Records
Personnel records and reports help management in obtaining the
requisite information regarding the use of human resources in
various departments or divisions.
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Significance of Personnel records
Personnel records play a significant role in performing various personnel functions
including audit and research. They are specially needed to:
i.
supply the information required by the management and trade unions to
review the effectiveness of personnel policies and practices and develop
them.
ii.
supply the information required by various agencies on the accidents,
employment position, strikes, absenteeism, turnover, etc.
iii.
provide the information about manpower inventory for manpower planning and
succession planning.
iv.
conduct research in personnel and industrial relations areas.
v.
identify training and development needs.
vi.
revise pay scales and benefits from time to time.
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Personnel/Human Resource Audit
It is a systematic evaluation of personnel policies, procedures and
practices. Basically it covers three things:
 Measurement and evaluation of personnel programmes,
policies and practices
 Identification of gap between objectives and results
 Determination of what should or should not be done in future.
Why personnel audit?
 Increasing size of the organisation and personnel in most
organisations
 Changing philosophy of management towards human resources

Increasing strength and influence of trade unions

Changing HR philosophy
 Increasing dependence of the organisation on the human
resources system and its effective functioning.
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Scope of HR audit
Personnel audit covers areas like personnel
programmes, practices and personnel results.
philosophy,
policies,
The audit process
Various personnel policies, procedures and practices can be evaluated by
posing questions like:
 What are they(policies, procedures, practices)
 How are they established , communicated and understood
 Are they consistent with other policies/
 What are the controls that exist for ensuring their effective and uniform
application
 What measures exist to modify them?
Personnel audit can be carried out either by attitudinal survey or by
interpreting data. It can be undertaken at frequent intervals. It may be done
either by internal people or by external consultants. To be effective, personnel
audit should focus attention on rectifying things rather than fault-finding.
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Personnel Research
Personnel research implies systematic investigation into any aspect
of personnel or human resource management in a systematic way.
The major objectives of personnel research include:
 Measure current conditions in human resource management
 Evaluate effects and results of current policies and practices
 Discover ways and means of strengthening the abilities and
attitudes of employees at a high level and on a continuing basis
 Provide an objective basis for revising current programmes and
activities
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Techniques to carry out personnel
research
Personnel research can be undertaken through:
 Historical studies
 Case studies
 Survey method
 Statistical studies
 Mathematical models
 Simulation methods
 Action research methods
Personnel decisions can be improved through personnel research
because better information leads to better solutions Personnel
research can offer valuable insights for managers as they attempt to
increase employee productivity and satisfaction while reducing
absenteeism and turnover.
Personnel Records, Audit And Research