HR Audit

HR Audit

• 1.
  HR Audit
• 2.
  Strategic Functions Compliance Issues Aspects of HRAudit
• 3.
  What is HRAudit?  It is a Comprehensive Evaluation of Human Resource Development:  Strategies, Systems and Practices  Structures and Competencies  Styles and Culture  And their appropriateness to achieve the short and long term business goals of the organization.
• 4.
  Purpose  To assessthe effectiveness of the Human Resources function to ensure regulatory compliance  To look for potentially serious problems  To find areas needing improvement  To document processes for use in merger, reorganization or inspection  To address compliance issues
• 5.
  Benefits  Create anHR business plan  Streamline HR work processes  Monitor compliance with established regulations and procedures  Develop user-friendly HR systems  Identifies the contribution of the personnel departments to the organization  Improves professional image of the personnel department  Encourages greater responsibility and professionalism among members of the personnel department  Clarifies the personnel department’s duties and responsibilities  Finds critical personnel problems
• 6.
  To Evaluate andImprove HR Practices in:  Staffing  Compensation and Benefits  Performance Management  Employee Development  Employee Relations  Safety  Reporting and Recordkeeping
• 7.
  Reasons for HRAudit  For expanding, diversifying and entering into a fast growth phase  For promoting more professionalism and professional management  Bench-marking for improving HRD practices  Growth and diversification  Dissatisfaction with any component  Change of leadership
• 8.
  Role of HRAudit in Business Improvements  HRD audit is cost effective  It can give many insights into a company's affairs.  It could get the top management to think in terms of strategic and long term business plans.  Changes in the styles of top management  Role clarity of HRD Department and the role of line managers in HRD
• 9.
  Role of HRAudit in Business Improvements  Improvements in HRD systems  Increased focus on human resources and human competencies  Better recruitment policies and more professional staff  More planning and more cost effective training  Strengthening accountabilities through appraisal systems and other mechanisms  Streamlining of other management practices  TQM Interventions
• 10.
  Scope  Audit ofCorporate Strategy  Corporate Strategy concerns how the organization is going to gain competitive advantage.  Audit of the Human Resource Function  Audit touches on Human Resource Information System, Staffing and Development, and Organization Control and Evaluation.  Audit of Managerial Compliance  Reviews how well managers comply with human resource policies and procedures.  Audit of Employee Satisfaction  To learn how well employee needs are met.
• 11.
  Tasks of Auditors Review the policies and procedures used to achieve these activities.  Prepare a report commending proper objectives, policies, and procedures.  Develop an action plan to correct errors in each activity.  Follow up the action plan to see if it solved the problems found through the audit.  Identify who is responsible for each activity.  Determine the objectives sought by each activity.
• 12.
  Methodology  Interviews  Individualand group  Top Management  Line Managers  HRD Staff  Workmen and others  Questionnaires  Observation  Analysis of records and secondary data  Workshops  Task forces and internal teams  External Auditors have a significant role  Benchmarking of questionnaire data
• 13.
  THANK YOU!!!