HR AUDIT & ROLE

ANALYSIS
Definition
The human resource audit is a process of examining
policies, procedures, documentation and practices with
respect to an organization’s functions.
The audit itself is a diagnostic tool, not a prescriptive
instrument. It will help to identify what is missing or
need to improve, but it can’t tell how to address these
issues.
It is most useful when an organization is ready to act on
the findings, and to evolve its HR function to a level
where its full potential to support the organization’s
mission and objectives can be realized.
Who should conduct the audit?
Internal audit-
In this, staff like line staff, middle & upper management
staff or those responsible for hr functions are included.
Key purpose
 To identify minor problems & errors before they
become major issues or discovered by 3rd party.
 At the time of accreditation.
ISO 9000 and ISO 1400

 To identify potential problem and try to reduce them.

External Audit-
This audit is conducted by a regulatory auditor, specially
in the companies or industries accredited to ISO.
This audit could also be done when companies are going
under merger or acquisition.
Reasons for conducting audit
 To ensure effective utilization of human resources.
 To review compliance with tons of law & regulations.
 To instil a sense of confidence in human resources
department.
 To maintain organization’s reputation in a community.
 To identify & address hr related problems.
 To seek out hr related opportunities.
 To conduct merger & acquisition
 To support initial public offerings.
Scope of audit
 Audit of human resources function.
 Audit of managerial compliance
 Audit of human resources climate.
 Audit of corporate strategy
1.Audit of various human resources functions
 Recruitment, selection, performance appraisal, pay
roll etc
 Recruitment
 Documentation
 Training, development & career management
 Compensation & benefits
 Performance management & evaluation
 Termination
 Legal issues & personal policies
 Health/welfare system
 Employee relation
 Safety
 Resourcing
2.Audit of managerial compliance
This covers audit of managerial compliance with law,
policies, procedures.
Not using misuse of power
Not neglecting policies
Audit of environment culture in the industry
The working culture in any industry has an impact on
employee motivation, job satisfaction, employee
absenteeism, safety records & employee welfare.
Audit of corporate or industrial strategy
This helps the industry to gain a competitive advantage
by analyzing the SWOT analysis of industry.
Approaches
 Comparative approach
 Outside authority approach
 Statistical approach
 Compliance approach
 Management by Objective approach(MBO)
Preparation for an audit
 Auditor engagement-
If external firm is doing audit then it is better to define
scope & terms of audit in writing.
If internal firm is auditing then non political people
should be selected, scope & terms of audit are told and
training should be provided to peoples.
Data gathering: For this the best source is self
assessment forms. Completion self assessment forms
expedites the audit process & allows for better audit
planning.

 On site access: On site access is most critical.

Audit Process
Three phases:
a) Pre audit information
b) Pre audit self assessment
c) On site review
d) Records review
e) Audit report
Critical Areas
HR audit covers all areas of hr management like
recruitment practices, training & development,
compensation & benefits, employee & human
resources, safety & security, man power planning.
Using audit findings
 Critical needs should be addressed first.
 Use HR audit as a blue print or action plan for
addressing HR needs.
 Try to address max needs from organizations internal
resources & expertise.
 Those requirement which could not be full filled
internally should be contracted out.
Conclusion
Auditor does audit & submit report to higher authorities.
This report could be clean or qualified
Clean report- Indicates appreciative of department
function.
Qualified report- Shows gap in performance & mention
remarks & remedial measures.
Thus, HR audit is very much useful to face challenges &
to increase potentiality of the department.
Role Analysis
Meaning of Role Analysis
Role analysis is a process of analyzing the role of a
manager in relation to the roles of other managers or
members of the organization who get affected by his
performance.
Definition
P. N. Singh, “Role analysis is a participatory process
which aims at defining the work content of a role in
relation to all those with whom the role occupant has
significant interaction in the performance of his jobs.”
Process of Role Analysis

Focal Role Role Set Members

Expectations
&
Contributions

Discussion

Role Consensus
Key Performance Areas Critical Attributes
Focal Role
 Identification of Key Position
 The first step is to identify focal role. The focal role
is the manager whose role is to be analyzed.
Identification of Role Set Members
 The next step is to identify the role set members.
The role set members are the various members in
the department or organization with whom the
focal role has to interact to accomplish goals.
Listing out Expectations and Contributions
 The Focal Role (Role Holder) has to write down his
expectations from and his contributions to the Role
Set Members.
 The Role Set Members also have to write down their
expectations from and contributions to the Focal
Role.
Discussion
 The focal role and role set members hold discussion.
In this discussion, they compare the two lists of
expectations and contributions.
Role Consensus
The discussion leads to role consensus which the focal
role needs to undertake. The role consensus is arrived
only after a good discussion on the expectations and
contributions are stated in the two lists.
Identification of Key Performance Areas
 The group i.e. focal role and the role set members
identifies ‘key performance areas’ in which the
focal role needs to concentrate.
Identification of Critical Attributes
 The role set members may be asked to indicate the
critical attributes in the areas of knowledge,
attitude, skills and behaviour required for the focal
role. Such critical attributes enable the focal role to
perform his role effectively.
Review of Performance
 The performance of the focal role is reviewed either
by the superior of the focal role or by the role set
members or any other appraising authority.
Necessary feedback is provided to the focal role so
that he can correct his weaknesses and consolidate
his strengths.
Uses, Applications and Advantages of Role
Analysis
 Role clarity
 Identification of main functions
 Critical Attributes
 Setting goals
 Placements
 Performance appraisal
Uses, Applications and Advantages of Role
Analysis
Training needs
Team work
Second line executives
Motivation
Career Planning
Selection
Distinguish between Job
Analysis and Role Analysis
Meaning
Job Analysis Role Analysis
It is systematic  It is participatory
collection and studying process, which aims at
information relating to defining the role content
operations and in relation to all those
responsibilities of a roles of Role Set
specific job. Members.
Who conducts?
Job Analysis Role Analysis
Job Analyst who Interaction between the
occupies advisory Focal Role and the Role
position Set Members
Frequency
Job Analysis Role Analysis
Not very frequently More frequently
Information
Job Analysis Role Analysis
Job Description Key Performance Areas
Job Specification of the Focal Role
Critical Attributes of the
Focal Role
Type of concept
Old concept New Concept
THANK YOU