HR Audit

HR Audit means the systematic verification of job analysis and design, recruitment and selection, orientation and placement, training and development, performance appraisal and job evaluation, employee and executive remuneration, motivation and morale, participative management, communication, welfare and social security, safety and health, industrial relations, trade unionism, and disputes and their resolution.
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 HR audit is very much useful to achieve the organizational goal and also is a vital tool which helps to assess the effectiveness of HR functions of an organization.

 The Human Resources (HR) Audit is a process of examining policies, procedures, documentation, systems, and practices with respect to an organizations HR functions.
The purpose of the audit is to reveal the strengths and weaknesses in the nonprofits human resources system, and any issues needing resolution. The audit works best when the focus is on analyzing and improving the HR function in the organization.
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Scope of Audit:
Generally, no one can measure the attitude of human being. It covers the following HR areas: Audit of all the HR function. 1. Audit of managerial compliance of personnel policies, procedures and legal provisions. 2. Audit of corporate strategy regarding HR planning, staffing, remuneration and other HR activities. 3. Audit of the HR climate on employee motivation, morale and job satisfaction.
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Benefits of HR Audit:
Benefits to the organization are: 1. It helps to find out the proper contribution of the HR department towards the organization. 2. Development of the professional image of the HR department of the organization. 3. Reduce the HR cost. 4. Motivation of the HR personnel. 5. Find out the problems and solve them smoothly. 6. Sound Performance Appraisal Systems. 7. Systematic job analysis. 8. Smooth adoption of the changing mindset.
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 The audit process consists of a series of questions covering the eight primary components of the HR function: Roles, head count, and HR information systems (HRIS) Recruitment Documentation Training, development, and career management Compensation and benefits Performance measurement and evaluation Termination and transition Legal issues and personnel policies The team works to collect information to answer the HR audit questions in each of these categories. The focus is on how these activities and tasks are actually performed in the organization. The first step is to collect all the pertinent information. The process of getting information, in and of itself, can be quite informative.

audit process

Approaches to HR Audit:
There are five approaches for the purpose of evaluation of HR in any organization:
Comparative approach Outside authority Statistical Compliance approach and Management By Objectives(MBO)