HR AUDIT

WHAT IS HR AUDIT ?
• HR Audit is a tool for evaluating the personnel
activities of an organisation.
• A quality control check on HR activities in a
division or a company.
• HRA is Evaluation, Examination, Review and
Verification of Completed Activities to find the
true state of affair in the department.
• Helps to assess the effectiveness of HR functions.
 OBJECTIVES OF HRA
Basic purpose of HR-Audit is to find:
•  Effectiveness: To review performance of Human resource
Dept. and its activities to determine effectiveness.
• Implementation: To locate gaps, lapses, failings in
applying Polices, Procedures, Practices & HR-directives.
• Rectification: To take corrective steps to rectify mistakes.
• Evaluation: To evaluate HR Staff & employees.
• Modify: To review HR System and Modify to meet challenges
in comparison with other organizations.
• Questioning: To seek answers to ‘What happened’?  ‘Why did
it happen’?  ‘Why did it not happen’?
 BENEFITS OF HR AUDIT
• Identification of the contributions of the HR
department to the Organisation.
• Encourages greater responsibility and
professionalism among members of the HR
department.
• Clarifies HR department’s duties and
responsibilities.
• Creation of increased acceptance of the
necessary changes in the HR department.
 METHODS/APPROACHES
• Comparative approach
• Outside authority approach
• Statistical approach
• Compliance approach
• Management by objectives(MBO) approach
 CONCLUSION
• The auditors prepare and submit an audit
report which may be clean or qualified.
• The latter contains gaps in performance and
therefore contains remarks and remedial
measures.
• A clean report is appreciative of the
department’s functions.