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Published by salim1321

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Published by: salim1321 on May 22, 2010
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Under the subject of 
HUMAN RESOURCE MANAGEMENT Submitted to Submitted by
What is human resource audit……………….?
A healthy HR function in an organization is as important as the physical and mental wellbeing of a human body. Typically the basic reason why organizations prefer to conductan HR audit is to get a clear judgment about the overall status of the organization andalso to find out whether certain systems put in place are yielding any results. HR auditalso helps companies to figure out any gaps or lapses and the reason for the same.Since every company plans certain systems and targets, an HR audit compares theplans to actual implementation.The concept of HR audit has emerged from the practice of yearly finance andaccounting audit, which is mandatory for every company, to be done by externalstatutory auditors.This 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 measurethe health of its human resource function.Some corporate person describes it as, human resource audit is a procedure tomeasure the degree of compliance an organization has with the existing legalobligations and labor laws. It also suggests corrective actions which may be necessary.
Why to audit human resources…………….?
Organizations undertake HR audits for many reasons:1 To ensure effective utilization of human resources.2 To review compliance with tons of laws and regulations.3 To instill a sense of confidence in the human resource department that it is well-managed and prepared to meet potential challenges and opportunities.4 To maintain or enhance the organization's reputation in a community.5. To clarify desired practices of HR work and roles within the organization (HRDepartment, Line Managers).6. To establish a baseline for future improvement.
7. To evaluate current effectiveness.8. To standardize practices across multiple sites within a division or company.9. To assess current knowledge and skills required of HR practitioners.10. To improve performance levels to key customers within the organization.An audit is a systematic process, which examines the important aspects of the functionand its management, and is a means to identify strengths, weaknesses and areaswhere rectification may be warranted. An audit is done on sampling basis. And insampling, not every instance or situation can be examined.An HR audit can be used by an organization for multiple purposes. Some of the morecommon reasons are:
To identify and address HR-related problems.
To seek out HR-related opportunities.
To conduct due diligence for mergers and acquisitions.
To support initial public offerings.How an audit is conducted is very often determined by its intended use. For instance,the type of audit used to ascertain HR practices may be significantly different from thetype of audit used to support an initial public offering. Although the areas examined maybe similar, the process used and the depth of inquiry will vary from the intendedoutcome.
The audit process……………..
The HR audit process is conducted in different phases. Each phase is designed to buildupon the preceding phase so that the organization will have a very strong overview of the health of the HR function, at the conclusion of the audit. These phases include:
Pre-Audit Information:
This phase involves the acquiring and review of relevant HRmanuals, handbooks, forms, reports and other information. A pre-audit informationrequest is forwarded to the client who compiles the necessary information for review byauditors.
Pre-Audit Self-Assessment:
In order to maximize the time spent during subsequentportions of the audit, a pre-audit self-assessment form, if sent to the client can be of use. The self-administered yes/no questionnaire asks a number of questions aboutcurrent HR policies and practices.

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