Human Resource Audit

Shweta Aparajita Jakhetia

 Concept
• A critical evaluation of manpower programs is required to
identify the areas where improvements are needed and to set
things in order.
• Audit is an important aspect of managerial control.
• It involves examination and verification of accounts and
records.
• Human resource audit implies a critical examination and
evaluation of policies, programs and procedures.
• It is a periodic review to measure the effectiveness of HR
management and also to determine further steps for more
effective use of human resources
 H R Audit refers to:-
1. The measurement of the effectiveness of the HR
management’s mission, objectives policies, programs and
activities
2. The determination of what should or should not be done
in future.
• HR Audit involves a formal, systematic and in-depth
analysis , investigation and comparison.
• The primary aim of HR is to determine whether the
personnel policies and practices are consistent with the
organizational objectives.
• It also determines how effectively the personnel policies
and programs will be implemented.
 Objectives of Human Resource Audit
1. It reviews the system of acquiring , developing, allocating
and utilizing human resources in the organization.
2. To evaluate the extent to which the line managers have
implemented the policies and programs initiated by the
top management towards HR.
3. To review the HR system in comparison with other
organizations and modify them to meet the challenges of
HRM.
4. To locate the gaps, lapses, shortcomings in the
implementation of the policies, procedures, practices,
directives of the HR dept. and to know the areas where
non-implementation has hindered the planned programs
and activities.
5. To evaluate the effectiveness of various the HR policies
and practices.
6. To evaluate the HR staff.
7. To seek answers to such questions as ‘what happened?’
‘why it happened?’ or ‘why it did not happen?’ while
implementing policies, practices and directives in human
resources.
 Need for HR Audit
1. To increase the size of the organization and personnel in
several organizations.
2. To change the philosophy of management towards HR.
3. To increase the strength and influence of trade unions.
4. To change HR management philosophy and thereby
personnel policies and practices throughout the world.
5. To increase the dependence of the organization on the HR
system and its effective functioning.