Hr Audit Mod

7/30/2019 Hr Audit Mod

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PRESENTATIONON

PRESENTED BY

Ajay Singh (11EC63D02)

M K Sinha (11EC63D01)

Bhaskara Naik S (11EC63R01)


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Scope of Presentation

Introduction

- Objective & function of HR Audit

- Benefits of Audit

Scope/Area of Audit

Process of Audit

Analysis

Feedback on Audit

Conclusion


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Introduction


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To Start with Few Facts


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Human Resouce Audit

A Human Resources audit is a tool for evaluating thepersonnel activities of an industry or a company.

This audit is an overall quality control check on all human

resources activities in an industry and an evaluation of howthese activities support the strategies of industries.

An HR audit is an objective and confidential assessment of theorganizations current HR policies and practices. Assessment

results are used to create a roadmap with simple and effectivedriving directions to engage a workforce to target performancewhile addressing the complex, ever-changing landscape offederal, state and local laws and regulations related toemploying people.


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Human Resource Audit

HR audit is control mechanism for management

It is the measurement of effectiveness of HR

managements mission, objectives, strategies,

policies ,procedures, program and activities.

Determination of what should or should not be

done in future.

HR audit involves formal, systematic and in-depthanalysis, investigation and comparision.


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Objectives of HR Audit

To find out effectiveness of policies and procedures.

To chect indicators of quality of leadership,motivation,communication,effectiveness of supervision, constant developmentof employees and managers.

Verify mission, objectives of the organisation, goals of HR deptt

have achieved expected results. Evalute to the extent line managers have implemented guidelines of

HRM.

To provide required feedback for the growth of the organisation.

Competence of management in IR is challenged by unions

Review HR system in comparision to other organisations. Locate gaps,lapses , shortcomings in implementation of policies ,

procedures, practices and directives of HR deptt.

Evaluate HR staff.


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Function of HR Audit


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Benefits of A Human Resource Audit

Identifies the contribution of the personnel departments to theorganization

Improves professional image of the personnel department Encourages greater responsibility and professionalism among

members of the personnel department

Clarifies the personnel departments duties and responsibilities Finds critical personnel problems Stimulates uniformity of policies and practices Ensure timely compliance with legal requirements Reduce Human Resource cost Performs due diligence for shareholders, owners, and potential

investors Identifies opportunities to align HR initiatives with business

strategies


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Scope of HR Audit


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The Scope of HR Audits covers following

Areas

1. Audit of Corporate Strategy Corporate Strategy concernshow the organization is going to gain competitive advantage.

2. Audit of the Human Resource Function Audit touches onHuman Resource Information System, Staffing and Develop-ment, and Organization Control and Evaluation.

3. Audit of Managerial Compliance Reviews how well managerscomply with human resource policies and procedures.

4. Audit of Employee Satisfaction To learn how well employee

needs are met.

5. Audit of environment culture


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By assessing the firms internal strengths andweaknesses and its external opportunities and threats,senior management devises ways of gaining anadvantage, 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 resourceactivities.

Audit of Corporate Strategy


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(a) Human Resource Information System

-Human Resource Plans : Supply and demandestimates; 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.

Audit of the Human Resource Function


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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, careerplanning program, human resource development

efforts.

(b) Staffing and Development


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(c) Organization Control and Evaluation

Performance appraisals : standards and measures ofperformance, performance appraisal techniques,evaluation interview.

Labor-Management Relations : Legal compliance,management rights, dispute resolution problems.

Human Resource Controls : Employeecommunications, discipline procedures, change anddevelopment procedures.


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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 employeerelations laws, the audit should uncover these errors

so that corrective action can be started.


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Audit of Employee Satisfaction

Employee satisfaction refers to an employees general

attitude toward his or her job.

When employee needs are unmet, turnover,

absenteeism, and union activity are more likely. Tolearn 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.


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Audit of Enviroment Culture


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Audit process


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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.


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Interviews are time-consuming, costly, and

often to only few people, many human resourcedepartments use questionnaires. Through

questionnaire surveys, a more comprehensive

picture of employee treatment can be developed.

Questionnaire may also lead to more candidanswers than face-to-face interviews.

- employee attitude about supervisors

- Employee attitude about their jobs

- Perceived effectiveness of human resourcedepartment

- Management effectiveness

QUESTIONNAIRES/SURVEYS


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MANAGEMENT

Are HR goals in line with those of the

organization?

Are workweeks identified and defined?

Are full-time and part-time hours defined? Are shifts defined?

Is there open communication to and from the HR

department?


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HIRINGDo job descriptions exist?

Are job descriptions up to date? Are forms and acceptable documentation reviewed annually? Are job openings offered to current employees? Are applicant references checked? Are turnover rates monitored? Are selection processes used with reference to the UniformGuidelines? Are all applicants required to fill out and sign an applicationform? Are applicants asked to voluntarily identify their affirmativeaction information?

Are independent contractors accurately identified? If the organization has a qualifying federal contract, is there anaffirmative action plan? Are forms and medical information kept separately frompersonnel files?


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NEW EMPLOYEES

Are workplace policies in place? Do policies focus on your workplace? Are policies communicated? Are policies enforced?

Is there an employee handbook? Is the employee handbook specific to yourworkplace? Do employee orientations take place?

Are employees trained on policies and workrules? Are employees trained on discrimination issues?


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WAGES AND HOURS

Are compensation levels monitored and reviewed?

Is there a formal pay structure?

Is the compensation structured reviewed regularly?

Is working time documented?

Are paid time off (vacation, holidays, etc) structures

developed?

Is the compensation plan communicated to all

employees?


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EMPLOYEE RELATION

Is there a system for performance evaluation? Does the system check for effectiveness of theevaluation? Is quality and quantity of work evaluated?

Is performance tied to compensation? Are workplace policies flexible? Are disciplinary actions for violating workplacepolicies flexible?

Is there a process for employees to lodge complaints? Are there a variety of individuals to whom employeesmay lodge complaints (supervisor, HR representative)?


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WORKERS COMPENSATION Are injuries/incidents investigated?

Is follow-up remediation performed where

appropriate?

Is regular contact made with employees out on lost

time? Is contact made with medical providers?

Are insurance premiums and competitive quotes

reviewed on a periodic basis?

Is the workplace environment maintained with safetyin mind?

Are state (new and existing) requirements monitored?


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Not all the issues of interest to human resourceaudit are revealed through interviews orquestionnaires. Sometimes insight can be obtainedby 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

HISTORICAL ANALYSIS


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Outside comparisons give the audit team aperspective against which their firms activitiescan be judged.

Through Department of Labor, industry

association, professional association numerousstatistics and report are compiled.

These organizations regularly publishesinformation about future employmentopportunities, employee turnover rates, work

force projection, area wage and salary survey,work force demography, accident rates, and otherdata that can serve as benchmark for comparinginternal information.

EXTERNAL INFORMATION


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Analysis Of HR Audit


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Findings of research are used to develop a pictureof the organizations resource activities. These information's are compiled into a audit report.

The audit report is a comprehensive description ofhuman resource activities that includes bothcommendation for effective practices andrecommendations for improving practices that are less

effective. Audit report often contain several sections. Onepart is for line managers, another is formanager of

specific human resource function, and the final part isfor thehuman resource manager.


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Report for line managers:

How line managers handle their duties suchas:Interviewing applicantsTraining employees

Evaluating performanceMotivating workersSatisfying employee needsThe report also identifies people problems.Violations of policies and employeerelations law are highlighted.


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Report for the HR Specialist:

The specialists who handle employment

training, compensation, and other activitiesalso need feedback.

Such feedbacks are:

1. Unqualified workers that need for training2. Qualified workers that need for development

3. What other company are doing

4. Attitude of operating managers towardspersonnel policies.

5. Workers pay dissatisfaction


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Report for HR Manager:

It contains all the information given to bothoperating managers and staff specialists. In

addition, HR Mangers gets feedback about

Attitude of operating managers and

employees about services given by HRD.

A review of HRD plans.

Human resource problems and the

implication.Recommendations for needed changes and

priorities for their implementation.


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Conclusion


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Thank you for your time.

Documents

Hr Audit Mod