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Human Resource & Cultural Due Diligence (&HR Audit) Checklist

TABLE OF CONTENTS

1. Company Organization & Management


2. General Human Resource Programs
3. Hiring and Employment Policy
4. Labor Relations Activity
5. Compensation & Perquisite Practices
6. Overview of Benefit Programs
7. Retirement, Profit Sharing, Savings Plans
8. Group Insurance
9. Equal Employment Opportunity
10. Occupational Safety & Health
11. External Environmental Factors
12. Corporate Culture

Company Organization & Management

1. Evaluation Factors

a) Organization Structure:
i) Mission Statement
ii) Functional Reporting relationships
iii) Position responsibilities
iv) Administrative reporting relationships
v) Interface with union representatives, government agencies, etc.
vi) Regional/plant personnel functions (not reporting to corporate)

b) Scope of department responsibilities & authority:


i) Key sub functions
ii) Ad hoc tasks and responsibilities
iii) Policy-making capabilities]
iv) Bargaining unit negotiations

c) Profiles of key management:


i) Personal profiles (names, positions, education, etc.)
ii) Skills and talents
iii) Attitudes toward achievement
iv) Historical data on experience and background
v) Areas of responsibility
vi) Intention to continue after merger/acquisition
vii) Compensation history (cash, equity, and deferred arrangements)
viii) Contractual arrangements
ix) Personal, noncontractual arrangements

d) Employee payroll records


e) Payroll history

f) Physical office arrangements/sufficient space

g) Human Resource operating budget:


i) Allocations
ii) Performance to plan
iii) Historical
iv) Planning process

2. Considerations

a) Internal & external reputation of department management

b) Type and strength of management control:


i) Centralization
ii) Formality
iii) Participative decision-making
iv) Autonomy

c) Leadership qualities

d) Necessity for additional management following acquisition

e) Competency and adequacy of current management

f) Adequacy of department staff members

g) Lines of succession

h) Morale, work climate, and motivation levels

i) Level of work commitment

j) Team orientation

k) Compatibility of management styles between companies

l) Attitude of company management toward risk

m) Authority structure and degrees of responsibility at each


hierarchical
level

n) Inter and intra-departmental conflict

o) Formal vs. informal organizational structure


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ADDITIONAL TEMPLATE PREVIEWS


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Guides Tools and Templates
 Due Diligence Best Practices  Overall Checklist - Ver1
 Critical Issues In HR Due  Overall Checklist - Ver2
Diligence  Overall Checklist - Ver3
 Physical vs. Virtual Data Rooms  Overall Checklist - Ver4 (No Preview)
 MARKET, INDUSTRY, AND  Overall Checklist - Ver5
COMPANY, RESEARCH  Technology Checklist
 Getting Behind the Numbers (No  HR Checklist - Ver1
Preview)  HR Checklist - Ver2 (No Preview)
 Financial Checklist
 Services Business Checklist
 Culture Audit - Ver1
 Culture Audit - Ver2 (No Preview)
 Software Product Checklist
 Distressed Business Checklist
 Data Room Contents
 PowerPoint Presentation Templates - Big Time Saver!