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    HRM-HR Audit

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    narenmadhav
    An HR audit reviews an organization's HR policies, procedures, and practices to ensure compliance with employment laws, identify liabilities, and implement best practices. The audit evaluates functions like recruiting, training, performance management, and employee satisfaction. Conducting regular audits helps organizations identify issues, improve HR processes, and educate managers on HR responsibilities. A thorough audit examines corporate strategy, the HR department, managerial compliance, and employee needs through methods like interviews, surveys, and records analysis.

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    HRM-HR Audit

    Uploaded by

    narenmadhav
    167 views30 pages
    An HR audit reviews an organization's HR policies, procedures, and practices to ensure compliance with employment laws, identify liabilities, and implement best practices. The audit evaluates functions like recruiting, training, performance management, and employee satisfaction. Conducting regular audits helps organizations identify issues, improve HR processes, and educate managers on HR responsibilities. A thorough audit examines corporate strategy, the HR department, managerial compliance, and employee needs through methods like interviews, surveys, and records analysis.

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    An HR audit reviews an organization's HR policies, procedures, and practices to ensure compliance with employment laws, identify liabilities, and implement best practices. The audit evaluates functions like recruiting, training, performance management, and employee satisfaction. Conducting regular audits helps organizations identify issues, improve HR processes, and educate managers on HR responsibilities. A thorough audit examines corporate strategy, the HR department, managerial compliance, and employee needs through methods like interviews, surveys, and records analysis.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    167 views30 pages

    HRM-HR Audit

    Uploaded by

    narenmadhav
    An HR audit reviews an organization's HR policies, procedures, and practices to ensure compliance with employment laws, identify liabilities, and implement best practices. The audit evaluates functions like recruiting, training, performance management, and employee satisfaction. Conducting regular audits helps organizations identify issues, improve HR processes, and educate managers on HR responsibilities. A thorough audit examines corporate strategy, the HR department, managerial compliance, and employee needs through methods like interviews, surveys, and records analysis.

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    Download as PPT, PDF, TXT or read online from Scribd
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    Human Resource Audits

    What is an HR audit?
    An HR audit is a process to review
    implementation of organization’s policies and
    procedures, ensure compliance with
    employment law, eliminate liabilities,
    implement best practices and educate your
    managers.
    Human Resource Audit?
    A human resource audit evaluates the personnel
    activities used in an organization. The audit
    may include one division or entire company.
    It gives feedback about :
    1. The function of operating manager
    2. The human resource specialists.
    3. How well managers are meeting their human
    resource duties.
    In short, 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
    Personnel/Human Resource Audit
    Involves:
     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.
    Benefits of A Human Resource
    Audit
     Identifies the contribution of the personnel
    departments to the organization
     Improves professional image of the personnel
    department
     Encourages greater responsibility and
    professionalism among members of the
    personnel department
     Clarifies the personnel department’s duties
    and responsibilities
     Finds critical personnel problems
    The audit should be:
    Proactive
    Reactive
    Informative
    Developmental
    Why conduct an HR audit?
    • Ensure compliance

    • Improve HR practices
    • Train your managers
    • Prepare for potential government audit or litigation
    • Gain an understanding of department’s environment
    • Show a “good faith effort”
    • Correct errors
    The Scope of Human Resource
    Audits
     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.
    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
    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 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
    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,
    Tasks of Auditors
     Identify who is responsible for each activity.
     Determine the objectives sought by each
    activity.
     Review the policies and procedures used to
    achieve these activities.
     Prepare a report commending proper
    objectives, policies, and procedures.
     Develop an action plan to correct errors in
    each activity.
     Follow up the action plan to see if it solved
    the problems found through the audit.
    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
     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
    Before you begin the audit process…
    1. Determine who will conduct the audit.
    Internal vs. External
    2. Secure senior management commitment.
    a. Are they ready to fix what’s broken, even if it costs
    highly?
    b. Do they agree with the methodology?
    c. Will they allow access to all departments/information?
    d. Will they publicly support the process?
    Before you begin the audit process…

    3. Define the parameters.

    a. Who will be audited?


    b. What do you want to audit?
    c. What audit tools will you use?
    d. How will the process be rolled out?
    e. How will results get reported?
    f. Who will get the results?
    Before you begin the audit process…

    4. Introduce the audit process to your managers.


    Departmental Audits
    What should you be concerned about?

    Record Keeping Employee Files


    •Sick and vacation tracking •What is and isn’t in the
    •Overtime reporting
    employee file
    •Temporary worker tracking •Access to the file
    •Accessibility/safety/security of•
    Safety and security of the files
    records
    •Accuracy of records
    Audit Tools:

    • Interview

    •Questionnaire
    •Historical analysis
    •External Information
    Research approaches to audits
    1. Interviews with employees and
    managers are one source of information
    about human resource activity.
    Employees and managers comments help
    the audit team find that need
    improvement.
     Another useful source of information is

    the exit interview. Exit interview are


    conducted with departing employees to
    learn their views of the organization.
    2. Questionnaires/surveys

    Because interviews are time-consuming, costly,


    and often to only few people, many human
    resource departments use questionnaires.
    Through questionnaire surveys, a more
    comprehensive picture of employee treatment
    can be developed. Questionnaire may also lead to
    more candid answers than face-to-face
    interviews.
    - employee attitude about supervisors
    - Employee attitude about their jobs
    - Perceived effectiveness of human resource
    department
    3. Historical analysis

    Not all the issues of interest to human resource audit


    are revealed through interviews or questionnaires.
    Sometimes insight can be obtained by an analysis of
    historical records, such as:
    - Safety and health records
    - Grievances records
    - Compensation studies
    - Scrap rates
    - Turnover and absenteeism records
    - Selection records
    - Affirmative action plan records
    - Training program records
    4. External information
    Outside comparisons give the audit team a
    perspective against which their firm’s activities
    can be judged.
    Through Department of Labor, industry association,
    professional association numerous statistics and
    report are compiled.
    These organizations regularly publishes information
    about future employment opportunities, employee
    turnover rates, work force projection, area wage
    and salary survey, work force demography,
    accident rates, and other data that can serve as
    benchmark for comparing internal information.
    How do you introduce the HR audit to
    your managers?
    1. Explain the reason for it.

    a. To protect them and the institution


    b. To help them understand policies, procedures, and
    laws
    c. To gain a better understanding of their department
    d. To help them set best practice procedures
    e. To avoid costly and time consuming litigation
    The audit report
    Findings of research are used to developed a
    picture of the organization’s resource activities.
    For this information to be useful, it is compiled
    into audit report.
    The audit report is a comprehensive description
    of human resource activities that includes both
    commendations for effective practices and
    recommendations for improving practices that are
    less effective.
    Audit report often contain several sections. One
    part is for line managers, another is for manager
    of specific human resource function, and the final
    part is for the human resource manager.
    Reporting the Results
    • Compile your findings in a draft letter

    • Allow department head/manager to review


    your draft and make comments/corrections
    • Compile final version
    • Present report to senior management
    • Copy department head/manager
    Report for line managers
     How line managers handle their duties
    such as:
     Interviewing applicants
     Training employees

     Evaluating performance

     Motivating workers

     Satisfying employee needs

    The report also identifies people


    problems. Violations of policies and
    employee relations law are highlighted
    Report for the HR Specialist
     The specialists who handle employment
    training, compensation, and other activities
    also need feedback. Such feedbacks are :
    1. Unqualified workers that need for training
    2. Qualified workers that need for development
    3. What others company are doing
    4. Attitude operating managers toward
    personnel policies
    5. Workers pay dissatisfaction
    Report for HR Manager
     It is contains all the information given to both
    operating managers and staff specialists. In
    addition, HR Mangers gets feedback about :
     Attitude operating managers and employees
    about services given by HRD
     A review of HRD plans
     Human resource problems and their
    implication
     Recommendations for needed changes and
    priorities for their implementation

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