HUMAN RESOURCE AUDIT

PRESENTED
BY-
MANISH
KANOJIA
 DEFINITION
 Seybold and Gray:
 “HR Audit refers to
an examination & evaluation of
policies, procedures & practices
to determine the effectiveness of
human resource”.
Anna M. Loh:
•
• An HR audit is a process to
review implementation of your
institutions policies and
procedures, ensure compliance
with employment law, eliminate
liabilities, implement best
practices and educate your
managers
 AUDIT COVERS BASICALLY THREE
THINGS

• Measurement and evaluation of

personnel program , policies
and practices.
• Identification of gap between
objectives and results .
• Determination of what should or
what should be not done in
future.
 Objectives of HR Audit

• To evaluate the total HRM

program in the light of
organizational objectives of
HRM.


• To review the organizational

system, human resource sub
system in order to find out the
efficiency of the organization in
attracting and retaining human
Cont…..
• To seek explanation and
information on such questions
as ‘what happened and why did
it happen’.


• To study the current manpower

inventory and identify the
shortfall or excess , if any.
 Benefits of HR Audit
Werther & davis identified the


following benefits of HR Audit:



Ø Identification of the contribution

of HR department to the
achievement of organizational
objective.


Ø Improvement of the professional

image of HR department.

Cont…..
Ø Clarification of HR department
duties and responsibilities.


Ø Stimulation of HR policies and

practices.


Ø Ensuring timely compliance with

legal requirements.
Cont…..
Ø Reduction of cost through more
effective procedures.


Ø Encouragement of greater
responsibility and
professionalism among
members of the HR
department.

 SCOPE OF HR AUDIT
• HR Strategies and policies.
• HR functions
• HR compliance
• HR climate.
 BEFORE WE BEGIN THE
AUDIT PROCESS
1.Determine who will conduct the
audit.
 Internal or External
2.Secure senior management
commitment.
3.Define the parameters.
4.Introduce the audit process to
your manager.
 PROCESS OF HR AUDIT
 Appointment of auditors.


 Coverage of HR audit


 Specification of standards


 Collection and evaluation of

information.


 Preparation of audit report.

 BIBLIOGRAPHY
• Human resource planning:(2006)
 Dipak Kumar
Bhattacharyya
• Human resource management :
(2005)
 V.S.P. Rao
• Human resource management:(2006)
 L.M. Prasad
 www.hraudit.com