Audit is a pivotal and indispensable tool for the efficient,effective & accountable functioning of any organisation which would in turn also lead to the ultimate goal of building a responsive and integrated economic as well as social fabric of society.
HR Audit is an important aspect of Human Resource Management and is receiving a great deal of attention in the discipline and practice. It is an overall quality control check on HR activities in a public/private organisation and an evaluation of how these activities support overall organisational strategy,thus, helping clarify organisational and management goals even further. It also helps crafting of new policies and emergence of new solutions or replacement/persistence of old policies in order to achieve efficiency and economy.
AREAS OF HR AUDIT:
1) Recruitment & Selection
2) Training & Development
3) Promotion,Transfer and Career development
4) Performance appraisal and Job Evaluation
5) Morale and Discipline
6) Salary,rewards & benefits
7) Personnel policies,procedures and programmes
8) Employer-Employee relations
DESIGNING INFORMATION SYSTEM FOR AN HR AUDIT:
The steps are:
1) Collecting data for the audit
2) Asking questions of the data collected
3) Interpreting the data
4) Stimulating remedial action
APPROACHES TO HR AUDIT:
1) Comparative approach
2) Consultant Approach
3) Statistical approach
4) Compliance approach
5) Management by objectives Approach - Refer:http://en.wikipedia.org/wiki/Management_by_objectives
COMPONENTS OF THE HR AUDIT REPORT:
1) Table of contents
2) Introduction giving statement of objectives,scope,research methodology and techniques of the audit.
3) Summary of conclusions and recommendations
4) Main report with analysis of data of each section/department concerned.
5) Summary which is general comprehensive in nature and more in comparison to the brief prepared at the beginning of the HR audit report
6) Appendix containing supporting data.
HR AUDIT CHECKLIST:
The following rating is used while auditing a particular section of a department or a whole department,etc.-
VERY GOOD(complete,current and done well) - 3 points
ADEQUATE(needs only some updating) - 2 points
WEAK(needs major improvements/changes) - 1 point
BASICALLY NONEXISTENT - 0 points
60-70 points - HR activities are complete,effective and probably meeting most legal compliance requirements.
45-59 points - HR activities are being performed adequately,but they are not as complete or effective as they should be. Also,it is likely that some potential legal risks exist.
30-44 points - Major HR problems exist,and significant attention needs to be devoted to adding and changing the HR activities in the organisation.
Below 30 points - Serious potential legal liabilities exist,and it is likely that significant HR problems are not being addressed.