Human resource (HR) audit means the systematic verification of job analysis, job description, job design, records of recruitment and selection, orientation and placement, training and development, job evaluation, performance appraisal, motivation and moral, compensation packages, welfare and social securities as well as industrial disputes and their solutions.

An audit is a review and verification of completed transactions to see whether they represent a true state of affairs of the business or not. Thus, an audit is an examination and verification of accounts and records. Human Resource (HR) audit refers to an examination and evaluation of policies, procedures and practices to determine the effectiveness and efficiency of HRM.

An HR audit is a means by which an organization can measure where it currently stands and determine what it has to accomplish to improve its human resources function. It involves systematically reviewing all aspects of human resources, usually in a checklist fashion, ensuring that government regulations and company policies are being adhered to.

Learn about:- 1. Introduction and Meaning of HR Audit 2. Need for HR Audit 3. Scope 4. Objectives and Purpose 5. Types 6. Process 7. Activities  8. Methods 9. Role of HRD Audit in Business Improvements 10. Approaches 11. Benefits 12. Checklist 13. Report.

HR Audit: Meaning, Need, Scope, Objectives, Types, Role, Process, Methods, Approaches, Checklist, Report and Benefits


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Contents:

  1. Introduction and Meaning of HR Audit
  2. Need for HR Audit
  3. Scope of HR Audit
  4. Objectives and Purpose of HR Audit
  5. Types of HR Audit
  6. HR Audit Process
  7. Activities of HR Audit
  8. Methods of HR Audit
  9. Role of HRD Audit in Business Improvements
  10. Approaches to HR Audit
  11. Benefits from HR Audit
  12. HR Audit Checklist
  13. HR Audit Report

HR Audit – Introduction and Meaning

Every organization should look back in order to proceed ahead. The evaluation and the study of the existing objectives, policies and practices of human resources management indicate to what extent they contribute to the organizational goals.

Further, they indicate to what extent the prac­tices are in accordance with the objectives. Audit enables the manage­ment to review the HRM policies in the light of the results of the audit and the changing environmental factors affecting HRM. HRM audit pro­vides accurate and reliable information to the management at all levels.

The P4 (Policies….Programmes…Practices….People) HR concept re­quires to be audited time to time. This will lead to maintain to growth and development of the organization. If you are guiding your HR func­tion through compliance and employee relations issues, you know how challenging your work can be. So how do you know if you are on a solid foundation? With the Human Resource Audit, you can determine where you are, prioritize what you have to do and know for certain you have looked at the right issues. The Result? Your comfort level and profes­sional contribution will be confident about moving forward.

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Human resource audit means the systematic verification of job analysis, job description, job design, records of recruitment and selection, orientation and placement, training and development, job evaluation, performance appraisal, motivation and moral, compensation packages, welfare and social securities as well as industrial disputes and their solutions.

HR audit is very much useful to verify the HR practices and a vital tool which helps to assess the effectiveness of HR functions and performances of an organisation.

An audit is a review and verification of completed transactions to see whether they represent a true state of affairs of the business or not. Thus, an audit is an examination and verification of accounts and records.

Human Resource (HR) audit refers to an examination and evaluation of policies, procedures and practices to determine the effectiveness and efficiency of HRM. In essence, HR audit refers to –

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(i) The measurement of the effectiveness of the HRM’s missions, objectives, strategies, policies, procedures, programmes and activities and.

(ii) The determination of what should not be done in the future as a result of such measurement.

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:

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(a) The function of operating managers.

(b) The human resource specialists.

(c) 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 HR consultations are experienced HR professionals who a tested framework to objectively analysis the performance of the HR function and its impact on the organization’s performance. An HR audit is a tool for evaluating the personnel activi­ties of an organization.

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The audit may include one division or an entire company. It gives the feedback about the HR functions to operating managers are HR specialist. It also provides feedback about how well managers are meeting their HR duties. In short, the audit is an overall quality control check on HR activities in a division or company and an evaluation of how these activities support the organization’s strategy.


HR Audit – Number of Employees, Corrective Measures, Increasing Delegation and Decentralization and Labour Cost

The following things warrant HR audit:

1. Number of Employees:

Very big organizations employ more number of people. They have policies and practices governing human resources. It is necessary to evaluate the policies and practices periodically so that human assets in the organizations work with full job satisfaction and high morale.

2. Corrective Measures:

The feedback resulting from the HR audit would help the organization find out the strengths and weaknesses in the human assets management system. In the light of HR audit report, organization concerned can identify measures to further strengthen the HR system and take corrective or remedial actions to weed out the weakness in HRM system.

3. Increasing Delegation and Decentralization:

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Modern organizations are flatter in structure giving more power to employees. In other words, the work has been designed to be performed in teams. In the context of higher decentralisation of authority, HR audit becomes imperative to verify whether authority delegated is utilized properly.

4. Labour Cost:

Ever increasing labour cost necessitates HR audit. It may help in surfacing the areas where HR costs can be reduced and where HR wastage takes place. It may also render useful suggestions to the organization for the better utilisation of available manpower to the optimum extent.


HR Audit – Scope

The scope of human resource audit is very wide. It represents the encompassing approach. It assumes that the management of human resources involves much more than the practice of recruiting, hiring, retaining and firing employees. In other words, human resource audit is interested in all the programmes relating to employees regardless of where they originate.

In this way, the areas HR audit includes are recruitment, selection, job analysis, training, management development, promotions and transfers, labour relations, morale development, employee benefits, wage and salary administration, collective bargaining, industrial relations and communication. Further, the areas like leadership, grievances, and performance appraisal and employee mobility are also included within the scope of human resource audit.

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For integration of personnel management with HRD functions, HRD audit now encompasses all the areas like review and integration of corporate mission, goals, policies and objectives, manpower planning, career planning and development, and transfer policies, performance appraisal systems, training development functions, recruitment and selection, etc.

(i) Recruitment and selection.

(ii) Orientation and placement.

(iii) Training and development.

(iv) Employee communications.

(v) Morale and motivation.

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(vi) HR policies and procedures.

(vii) Job evaluation and design.

(viii) Industrial relations.

(ix) Grievance handling and redressal.

(x) Employee health and safety.

(xi) Legal compliance.

(xii) Employee compensation/remuneration.

(xiii) Separations (retirement, resignations, death, etc.).


HR Audit – Top 6 Objectives and Purpose

Objectives of HR Audit:

1. To review the performance of the human resource department and its relative activities in order to assess the effectiveness on the implementation of the various policies to realise the organizational goals,

2. To identify the gaps, lapses, irregularities, short-comings, in the implementation of the policies, procedures, practices, directives of the human resource Department and to suggest remedial actions.

3. To know the factors which are detrimental to the non-implementation or wrong implementation of the planned programmes and activities.

4. To suggest measures and corrective steps to rectify the mistakes, shortcomings if any, for future guidance, and advise for effective performance of the work of the human resource Department.

5. To evaluate the Personnel staff and employees with reference to the performance appraisal reports and suggest suitable recommendations for improving the efficiency of the employees.

6. To evaluate the job chart of the human resource managers, executives, administrative officers, executive officers, recruitment officers, whether they have implemented the directives and guidelines for effective management of the human resources in their respective departments.

Purpose of of HR Audit:

1. To clarify desired practices of human resource work and roles within the organization.

2. To establish a baseline for future improvement.

3. To evaluate current effectiveness.

4. To standardise practices across multiple sites within a division or company.

5. To assess current knowledge and skills required of human resource practitioners.

6. To improve performance levels of key customers within the organization.


HR Audit – Types: Internal Audit and External Audit

HR audit may be done by two ways:

Type # 1. Internal Audit:

When an audit is done by a person who is employee of the organisation then it is called internal audit. The internal person will need to be trained and can be given a set of questions which he can render to the persons for seeking answers.

Type # 2. External Audit:

When an audit may be conducted by external specialists or consultants who are not the employees of the organisation then it is called external audit. It is generally advisable to get the audit conducted by external person who can objectively evaluate the performance and support corrective actions freely.

After collecting information and answers to the questions the auditor can summarise his findings and submit a report to the management. On the basis of auditor report to the management can take necessary actions to improve the performance of HR department and its personnel.


HR Audit – 5 Main Phases: Pre-Audit Information, Pre-Audit Self-Assessment, On-Site Review, Records Review and Audit Report

The human resource audit process is conducted in different phases. Each phase is designed to build upon the preceding phase so that the organization will have a very strong overview of the health of the human resource function, at the conclusion of the audit.

These phases include:

1. Pre-Audit Information – This phase involves the acquiring and review of relevant human resource manuals, handbooks, forms, reports and other information. A pre-audit information request is forwarded to the client who compiles the necessary information for review by auditors.

2. Pre-Audit Self-Assessment – In order to maximize the time spent during subsequent portions of the audit, a pre-audit self-assessment form is sent to the client. The self-administered yes/no questionnaire asks a number of questions about current human resource policies and practices. The completion of this self-administered questionnaire allows auditors to identify key areas for focus during the human resource audit.

3. On-Site Review – This phase involves an on-site visit at the client’s facility interviewing staff regarding human resource policies and practices. A very in-depth human resource audit checklist is completed.

4. Records Review – During the on-site visit, a separate review is conducted of human resource records and postings. Employee personnel files are randomly examined as well as compensation, employee claims, disciplinary actions; grievances and other relevant human resource related information are checked.

5. Audit Report – The information gathered is used to develop an human resource audit report. The audit report categorizes action needs into three separate areas. The areas that are urgent and important (UI), not urgent needs but important (NUI), not urgent but not important needs (NIN), and important opportunities needs (ION). As a result of this scheme of classification, managements can prioritize their steps.


HR Audit – 7 Important Activities: Quantifying and Measuring HR Functions & Outcomes, Comparing Activities and Results to Standards & Goals and More…

An HR audit is a means by which an organization can measure where it currently stands and determine what it has to accomplish to improve its human resources function. It involves systematically reviewing all aspects of human resources, usually in a checklist fashion, ensuring that government regulations and company policies are being adhered to.

HR auditing activities include:

1. Quantifying and measuring HR functions and outcomes – A critical element HR audits is the determination of current and potential outcomes of the organization with respect to its HR function.

2. Comparing activities and results to standards and goals – Like financial audits, HR audits compare activities and results to external and internal standards and to expected and budgeted goals.

3. Reviewing structural, organizational, and cultural issues – The effectiveness of various employment policies, practices and procedures is determined by a number of external and internal factors. HR audits help to identify and assess these factors.

4. Assessing the employment brand – Like product branding, employment branding influences customers’ (employees’) desire and willingness to buy the product (becoming and staying an employee). HR audits help to assess the organization’s employment brand.

5. Inspecting employment posters, notices, and facilities – HR auditing activities inspect and review employment practices with respect to compliance with various state and local employment laws.

6. Inspecting employee personnel files – HR auditing activities inspect a random selection of personnel files and records.

7. Assessing HR management and employment practices – Using enhanced software and IT packages, (like the latest version of ELLA®) HR audits can review and assess various HR management and employment practices areas, including those of-

i. Recruitment, selection and hiring

ii. Application forms

iii. Reference checking and responding

iv. Immigration related issues

v. Employee handbooks and procedural manuals

vi. Positive employee relations

vii. Diversity, inclusion and workplace discrimination

viii. Affirmative Action-Pay Equity

ix. Sexual harassment

x. Drug-free workplace

xi. Job performance management

xii. Retention issues

xiii. Conflict resolution

xiv. Discipline, terminations and downsizing

xv. Leaves of absence

xvi. Wage and hour issues

xvii. Unemployment insurance

xviii. Workplace safety

xix. Ethics and governance

xx. Strategic HR decisions, procedures and processes

HR audit serves as an examination on a sample basis of practices and systems for identifying problems and ensuring that sound accounting principles are followed. Similarly, an HR audit serves as a means through which an organization can measure the health of its human resource function.


HR Audit – Top 6 Methods: Interview Method, Questionnaire Method, Observation Method, Desk Research Method, Workshop Method & Task Force Method

HR audit is a tool to measure the level of human resources development system.

The following methods are adopted:

1. Interview Method:

Top management and senior management (Line managers and employees) are interviewed by the HRD auditor. It is a structured interview designed to solicit information on the perspectives of respondents on the future growth plans and goals of the organization, organization culture, working style, career development, work flow system, leadership style, morale, motivation, vision, mission etc. In view of the time and resources constraints, HRD auditor uses sampling techniques to interview the employees.

2. Questionnaire Method:

HRD auditor designs and administers structured questionnaire to assess the various dimensions of HR development. It is usual practice to test the reliability and validity of the instrument using appropriate statistical technique by conducting a pilot study. Then he has to choose the proper sample size. The questionnaire should accommodate questions reflecting the objectives of HRD audit. It is given to the sample respondents who have to record appropriate response.

3. Observation Method:

HRD manager observes the employees in their natural environment i.e., workplace, canteen, training camps, residential colony to assess the suitability and conduciveness of environment for human resource development.

4. Desk Research Method:

HRD manager collects and uses details relating to performance appraisal report, ethical practices, achievement records, welfare measures, suggestion scheme, career development, frequency of training programmes, feedback of participant trainees, methods used to ascertain training needs, safety practices, accident prevention, incentive and compensation system, etc. He analyses the facts and figures relating to aforesaid areas and arrives at appropriate findings.

This method does not involve interviewing the respondents through a questionnaire or an interview schedule. The entire information is gleaned from the relevant records of the organization.

5. Workshop Method:

Employees are selected either through a sampling technique or through some other norms, for participation in a workshop conducted exclusively for HRD audit purpose. All the participants selected are divided into groups. Different dimensions of HRD are assigned to different groups for SWOT analysis. Then each group is required to prepare a report and make presentation on the themes assigned. The outcomes of the report of each group are deliberated deeply and suggestions are made to the organization. The whole exercise is moderated by the HRD auditor.

6. Task Force Method:

A task force comprising different experts from various domains in the organization is constituted to identify, evaluate and recommend an appropriate solution to the HRD problems identified. HRD manager can work on the accepted recommendations for further development.


HR Audit – Role of HRD Audit

HRD audit is cost-effective and can give many insights into a company’s affairs. The auditors come for one to two weeks, camp at the organization and give a report in a month’s time. They normally make a preliminary presentation at the end of their visit.

HRD audit can lead to several roles:

1. Getting the Top Management to Think in Terms of Strategic and Long-Term Business Plans:

It may sound ironical that the HRD audit should begin with such strategic plans, but in some cases it has compelled the top management to think about such plans, while some companies started thinking about them, a few others started sharing these plans with a larger number of persons.

Since the employees cannot participate in an HRD audit without some sharing of these plans, the audit has forced the top management to share their plans which has resulted in increased employee involvement. In a few cases a new system of annual planning and sharing of business plans with the management staff have been initiated to enable them plan their own activities and competency development programmes.

2. Clarifying the Role of the HRD Department and Line Managers in HRD:

In almost all cases the HRD audit has been found to draw the attention of employees at various levels to the important role of the HRD department current as well as the future. Enhanced role clarity of HRD department and HRD function and increased understanding of line managers about their HRD role have been the uniform results of HRD audit. The degree may vary from organization to organization depending on other factors.

3. Streamlining of Other Management Practices:

Most often HRD audit identifies the strengths and weaknesses in the some of the management systems existing in the organization. It also points out to the absence of systems that can enhance human productivity and utilization of the existing competency base; for example, the MIS, rules and procedures, etc., which may have an effect on the functioning of the employees.

In a few cases an HRD audit has helped the management look at some of these sub-systems and work procedures. Preparation of a manual of delegation of powers, clarification of roles and responsibilities, developing or streamlining the manuals of financial and accounting procedures and systems, strengthening the information systems, and sharing of information are some of the resultant activities in this direction.

4. Better Recruitment Policies and more Professional Staff:

An HRD audit points out to the competence base required. It sets the stage and gives direction for the competency requirements of employees at various levels and thus provides a base for recruitment policies and procedures. In some companies, it has resulted in strengthening the recruitment policies and procedures. As a result of HRD audit, new recruitment and retention strategies have been worked out.

5. Changes in the Styles of Top Management:

One of the objectives of HRD is to also create a learning organization. A learning culture can be created only if the top managers of the company exhibit an HRD style of management. Such a style requires an empowering attitude, participative style of management, and an ability to convert and use mistakes, conflicts and problems as learning opportunities.

Some of the top-level managers in India have been found to block employee motivation and learning through coercive, autocratic and even paternalistic styles of management. In such cases the HRD audit has pointed out the difficulties in developing and preparing the employees for the future. This has helped to provide subtle feedback to the top management and to initiate a change process.

6. Improvements in HRD Systems:

The HRD audit has helped most of the organizations in taking stock of the effectiveness of their HRD systems and in designing or re­designing the HRD systems. The most frequently changed or renewed systems include performance appraisal, induction training, job-rotation, career planning and promotion policies, mentoring, communication, and training.

7. More Planning and More Cost-Effective Training:

HRD audits have been found to raise questions about the returns on training. One of the aspects emphasized in the HRD audit is to calculate the investments made in training and ask questions about he returns. The process of identifying training needs and utilization of training inputs and learning for organization growth and development are assessed.

As direct investments are made in training, any cost- benefit analysis draws the attention of the top management and HRD managers to review the training function with relative ease. One organization strengthened its training function by introducing a new system of post-training follow-up and dissemination of knowledge to others through seminars and action plans. Many organizations have developed training policies and systematized their training function. Assessment of training needs has also become more scientific in these organisations.

8. Increased Focus on Human Resources and Human Competencies:

One of the results of an HRD audit is to focus on new knowledge, attitudes and skills required by the employees in the organization. Comments are made about the technical, managerial, human and conceptual competencies of the staff at various levels. This differentiation has been found to help organisations identify and focus sharply on the competency requirements and gaps.

The audit establishes a system of role clarity and fixing of accountabilities. This can take place through separate role clarity exercises or through the development of an appropriate performance appraisal system. In any case the attention of the organization gets focused on developing the competency base of the organization.

More sensitivities are developed to the missing aspects of competencies. For example, one organization has been found to neglect human relations competencies of their staff, resulting in a large number of human Problems leading to wastage of time. Some of these got streamlined and various HRD policies also got strengthened.

9. Strengthening Accountabilities through Appraisal Systems and Other Mechanisms:

An HRD audit can give significant inputs about the existing state of the accountabilities of employees. This gets assessed through performance appraisals as well as through the work culture and other cultural dimensions. A number of organisations have introduced systems of performance planning, sharing of expectations and documenting the accountabilities of staff.

10. TQM Interventions:

Quality improvements and establishing TQM systems require a high degree of employee involvement. In a number of cases the HRD audit has pointed out to the linkages between TQM and other developmental programmes and helped in strengthening the same.

Due to improvements in the training system, group work and appraisal systems, TQM programmes have also improved. In a few organisations the performance appraisals have been so changed as to integrate quality aspects and internal customer satisfaction dimensions into the appraisal system. Thus, an HRD audit leads to the strengthening of the quality systems.


HR Audit – 3 Main Approaches: Legal Approach, Benchmarking Approach and Strategic Approach

Approach # 1. Legal:

The audit of performance or conformity consists of making an inventory of the social situation of the company, considering the labor law norms and regularly verifying the company’s compliance with the applicable regulations. Concern about labor risks has created a function within HRM with the purpose of altering working conditions by identifying the risks that could stem from them and implementing necessary preventive measures.

Such preventive activity could fit perfectly into the legal approach of HR, although the effort that the company can make in this sense can go beyond the application of the existing risk prevention laws’. Hence the legal approach is primarily focused on the company’s legal compliance to various labour legislations and acts.

Approach # 2. Benchmarking:

The benchmarking approach to HR audit is primarily oriented towards continuous improvement in HR systems, policies and processes to deliver more value to the employees.

Such benchmarking can be done internally as well as externally. The internal benchmarking shall compare the HR practices of the company against its own standards, whereas in external benchmarking the same is compared with the best-in-class practices in the industry.

Approach # 3. Strategic:

In strategic approach to HR audit the relevance of the HR practices, systems and processes is seen with respect to the strategic objectives of the fir. How much do they these systems and practices contribute to furthering the business objectives of the firm? The strategically audit of HR helps assure that the HR programs are aligned with the Company’s long-term objectives.

In this way, the HR function is becoming a source of competitive advantage and is ceasing to be considered as a specialized and unrelated function that incurs high costs to the company’.


HR Audit – Benefits

The following benefits of HR audit are as follows:

1. Identifies the contribution of HR department to the organisation.

2. Improves the professional image of HR department.

3. Encourages of greater responsibility and professionalism among members of HR department.

4. Stimulates the uniformity of HR policies and practices.

5. Finds critical HR problems.

6. Ensures timely compliance with legal requirements.

7. Reduces HR costs.

8. Improves effectiveness of line managers.

The HR Audit also review some ratios which are useful to HR department as well as other departments.

These are – (i) Rate of absenteeism, (ii) Rate of accidents, (iii) Rate of turnover, (iv) Relating to costs, (v) Rate of grievance handling, (vi) Rate of punishments, (vii) Rate of employment, (viii) Rate of disputes, (ix) Rate of sickness, (x) Rate of Man days lost due to various reasons.


HR Audit – Checklist

The following checklist would facilitate auditor’s work:

1. Purpose of Audit:

i. Looking for potentially serious problems.

ii. Figuring out areas warranting improvement.

iii. Documenting processes for use in merger or re-organization.

iv. Addressing compliance issues.

2. Sources of Data:

i. Written policies and procedures.

ii. Views of HR manager.

iii. Perspectives of line managers.

3. Basics:

i. Strength of employees in HR departments.

ii. Organization chart for HR department.

iii. Size of HR budget.

4. Recruitment:

i. Sourcing of candidates.

ii. Mode of selection.

iii. Meeting legal requirements, if any, consistency of procedures followed across jobs and locations.

iv. Consistency of recruitment process.

5. Compensation and Benefits:

i. Different groups of employees.

ii. Compensation policy in existence.

iii. Job evaluation practices followed.

iv. Variable pay practices followed.

v. Criteria for deciding increment.

vi. Different benefit plans in practices.

vii. Up-to-date job descriptions.

6. Workforce Review:

i. Areas of skill shortage.

ii. Critical succession issues.

iii. Distribution of workforce age-wise and gender-wise.

iv. Process followed in manpower planning.

v. Process followed in succession planning.

7. Training and Development:

i. Periodicity of training.

ii. Management of training programme.

iii. Criteria for identifying candidates for training.

iv. Linkage of training with performance management system.

v. Training budget.

vi. Measurement of training effectiveness.

8. Industrial Relations:

i. Number of unions functioning.

ii. Number of grievances.

iii. Outstanding grievances.

9. Legal:

i. Processes of managing compliance issues.

ii. Outstanding litigations.

10. HR Technology:

i. Nature of technology installed.

ii. Process of updating the technology.

iii. Progress of technology project.

11. Strategic HR:

i. The authority to whom the senior HR is to report.

ii. Extent of interest of top management in HR issues.

Others:

i. Audit of corporate culture.

ii. Competency of audit staff.

iii. Audit of customer satisfaction with HR.

iv. Using metrics proposed by Saratoga Institute for audit.


HR Audit Report

The HR auditor, after examining various aspects of HRM, compiles these observations, analysis, findings and recommendation in the form of a report.

Jobs of the HR Auditor can be enumerated as follows:

1. To get the current facts.

2. To study the effectiveness of the present system by answering the following issues –

a. Why was the practice introduced?

b. What would be the result, if the practice is discontinued?

c. What needs were intended to be fulfilled and have those been fulfilled or not?

d. What could be the best possible alternative for fulfilling such needs?

e. What changes can improve effectiveness of the existing practice?

f. Are such intended changes economically and operationally viable?

g. Are such changes sustainable from the union’s point of view?

h. What should be the time-frame for introducing the change?

The reports may accommodate the following:

i. Table of contents

ii. Preface explaining the background of the evaluation

iii. Objectives of audit, methodology of audit programme

iv. Analysis of data and information

v. Findings

vi. Summary and conclusions

vii. Recommendations

viii. Appendix.

Structure of HR Audit Report:

1. Introduction – HR auditor has to give a brief of the organization profile, objectives, purpose of audit, methodology employed, HR practices in vogue and future plans of organizations.

2. Current scenario – This part of the report deals with staffing of HR functions, objectives, policies and programmes, strength, weakness, opportunities and challenges encountered by HR segment.

3. General observation – Auditor reviews the SWOT of the organization, future potential, competitors, various factors influencing organizational structure, culture and competence in light of facts gleaned from the organization.

4. HR system – This article covers findings and recommendations relating to HR planning, recruitment, selection, compensation, performance management, training and development, various HR efforts to heighten organizational competitiveness and employee satisfaction. The contents should be based on data collected and analysed.

5. Recommendation – Report should outline the findings and suggestions for improving HR development policies, programmes, practices and strategies of the organization.

Questions that can be Raised for Better HR Audit:

According to VSP Rao, the following questions can be asked to evaluate HR policies, procedures and practices:

i. What are the policies, procedures and practices that exist?

ii. How are they established?

iii. How are they communicated to all those concerned?

iv. How are they understood by individual employees, supervisors and managers across the level?

v. Are they consistent with the management organizational philosophy and HRM philosophy?

vi. Are they consistent with the existing trends towards HRM and research?

vii. What are the controls that exist for ensuring their effective and uniform application?

viii. What measures exist to modify them to meet organization’s requirements?