HR Audit

and. 2. . It covers – 1. Identification of gaps between objectives and results. Measurement and evaluation of HR programmes. Determination of what should or should not be done in future.Audit – a control device Edwin B Flippo: The HR audit is a systematic survey and analysis of all operative functions of HR with a summarised statement of findings and recommendations for correction of deficiencies. 3. policies and practices.

allocation and utilisation of human resources in the organisation.Objectives: 1. selection. 3. training and development. To review the system of recruitment. . 2. To evaluate the extent to which the HR Management policies and procedures are implemented by the various departments in the organisation. To find out any deficiencies and shortcomings in the management of human resources.

2. Increasing strength and influence of trade unions. .Need: 1. 4. Changing philosophy of management towards HR. 3. Increasing dependence of the organisation on the HR system and its effective functioning. Increasing size of the organisation and HR in several organisations.

7. Ensures timely compliance with legal requirements.Benefits: 1. 3. Stimulates uniformity of HR policies and practices. 5. Improves the professional image of HR department. Classifies the HR departments’ duties and responsibilities. 2. . Finds critical HR problems. Reduces HR costs. 4. 6. Identifies the contributions of HR department.

etc. Planning: Forecasting & scheduling to meet organisation & needs. layoff. Level II: Level III: Programmes & Policy Procedures Time bound or network cost/benefit budget. Explicit statement to provide inclusive personnel plans for present & future. . supplies. etc.Scope : Areas and Levels Major areas Level 1: Results Personnel shortages.

Recruitment times costs. nondiscrimination etc. promotions. etc. Let cream rise. labour turnover. In-house & out house training programmes. etc. sources. training times cost. guidance in careers. recruitment.Major areas Level 1: Results Level II: Programmes & Procedures Level III: Policy Staffing & Development : Defined requirements & careers. selection. . training.

communicat ing. etc. reduce resistance to change. etc. effective threeway communication . etc.Major areas Level 1: Results Feedback. etc. reports. records. house organs. Level II: Level III: Policy Programmes & Procedures Job definitions for individuals. extent of format. departments. organisation. task forces. collaboratin g. reader interest. . Encourage flexibility. Organising: Maintaining structures for coordinating.

performance norms. wage & salary administration. ensure full satisfaction. comparative costs. interest. exit interviews. etc. . Level III: Policy Gain high personal identification. etc. effort.Major areas Level 1: Results Productivity. morale survey. Level II: Programmes & Procedures Job enlargement. Motivation & Commitment : Individual & group motivation. contribution. fringe benefits.

promotions. Level III: Policy Style adapted to changing expectations. Administrati on: Style of leadership and supervision. etc. collective bargaining. Level II: Programmes & Procedures Consultative supervision. discipline. participative involvement. unionmanagement cooperation. unionmanagement committees. etc.Major areas Level 1: Results Suggestions. . collective bargaining. negotiation. grievances. delegation.

experiments.Major areas Level 1: Results Changes. . suggestion plans. Level II: Level III: Programmes Policy & Procedures R&D approach in all areas. etc. publications. research reports. Research & innovation: Experiments & theory testing in all areas. Test old & new theory. encourage creativity in management.

Examining the variation of different periods and comparing them with similar units and industries in the same region. 2. 4. Comparing the variations of different departments during different periods. indicators. Preparing and submitting a detailed report to the top management and to the top managers at appropriate levels for information and necessary actions. Identifying indices.HR audit process: 1. Examining the variations in time-frame in comparison with a similar previous corresponding period. frequency distributions and calculating statistical correlations. 5. . Drawing trend lines. statistical ratios and gross numbers in some cases. 3. 6.

External audit: done by external specialists or consultants in HR management. increase in the number of conflicts. Crisis audit: conducted when serious crisis occurs like strikes. etc. . Regular audit: audit of almost all the HR policies and practices certain indicators like absenteeism and employees’ grievance should be audited at the end of every month/quarter depending upon the magnitude of the issues.Types of audit: Internal audit: done by employees of the HR department of the organisation. grievances.

7. methodology.summary and conclusion. Bibliography – important books and journals. Table of contents 2. Preface 3.Audit report: 1. discussions and analysis. Synopsis. A clear and in-depth analysis of the data and information. 5. 8. Statement of the objectives. scope and techniques used. . 6. 4. Appendix – supporting data and information. furnished area-wise or departmentwise. Evaluation.

expenditure.Problems in HR audit: 1. 2. etc of HR dept is compared with those of other depts and organisations. A tendency to turn the survey into a faultfinding process. The organisation cannot be taken as standard for comparison. Past ratios. . rates of turnover.

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