An Introduction To Human Resource Audits

By: Group C1T. Madhavi RaoVikash Rathour

Utkarsh Singh BaghelRahul Kumar

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 manager2. 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 AuditInvolves:

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.

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