By conducting an audit, the HR department demonstrates the value that all the staff in the operation bring to the

organiza- tion's financial outcomes. By conducting an HR audit, the organization is committing to a level of quality within HR and ensuring that the activities carried out within the organization are contributing positively to the bottom line. Some more specific reasons for performing an HR audit may include the following: to ensure the effective and efficient utilization of the organization's HR department in alignment with the organization's business strategy; to assist the organization in achieving its business goals; to ensure the effective and efficient utilization of the organization's people resources in alignment with the organization's business plans; to ensure compliance with regulatory requirements; to ensure that the HR function is able to meet potential challenges and is prepared to effectively manage changes, mergers, cutbacks, and organizational growth; to demonstrate the economic value of the organization's human capital and HR programs; to ensure HR is allocating its budget in the most effective and efficient way; to ensure the organization is prepared to handle a dispute resolution process when or if required; to ensure ongoing improvement for the HR department; and to monitor the effectiveness of human resources initiatives. What an HR Audit Entails The audit entails a thorough examination of the organization's values, strategic plan, organizational and operational goals, existing policies, procedures, prac- tices, documents, and systems. It identifies gaps in regulatory compliance and strategic alignment, and the risks associated with those gaps. The audit itself does not necessarily include a recommendation plan, but it will thoroughly document the status of the organization in major functional areas such as the following: the organizational strategic plan; business operational plans; workforce planning; the communication plan; organizational behaviour; recruitment sourcing and selection;

 orientation and on-boarding practices; performance management; rewards management; employee and labour relations; health and safety; learning and development; HR systems, support, and monitoring; collective agreement administration; job development; files and records maintenance; and technology use. The first step is to develop the audit plan. Preparing the Audit Plan Preparation of an audit plan includes the following steps: define audit criteria, objectives, scope, and benchmarks; define audit approaches, methodology, and technology; define area/s to be audited; define high priority concerns; define applicable procedures, manuals, data, resources, reference documents, working documents required to facilitate the audit function, and where to find them; define time duration of major audit activities; establish audit team and define their roles and responsibilities; grams, etc? establish schedule of meetings, dates, and places where the audit is to be conducted; and ciently track the outcomes of your people and prepare audit checklist. processes in relation to desired organizational outcomes? Does the technology in use effectively and effi Do the processes in place work in alignment with the strategic direction of the organization? Are the strategic initiatives incorporated into the job descriptions, performance appraisals, compensation and incentive plans, learning and development pro-

Collecting Audit Information Gathering your information can take several forms. Using several information gathering techniques is helpful. Your HR audit tools may include the following: conducting interviews; observing work activities; checking records (e.g., from the organization's Human Resources Management System); gathering and compiling electronic data; reviewing documents; sampling (e.g., conducting a sample audit of a single process file, or of a complete function); administering questionnaires; and setting up focus groups. Conducting an HR Audit: Sample Audit Questions While there are tools and resources available to simplify and streamline this process, here are a few questions to aid you in the preparation for your audit. This is not meant to be an exhaustive list of questions, but is a basic guide to get you started, covering the major HR functional areas in an organization. Strategic Alignment Are employees aware of the strategic direction of the organization? Do employees know how they contribute to the execution and achievement of the strategic plan? Business Operational Plans Are your people aware of the business and operational goals and plans within their departments? Are your people aware of how their achievements/activities impact the outcomes of other departments? Do the job descriptions, performance appraisals, compensation plans, learning and development programs, etc., support the achievement of the operational plans and goals? Are your managers and supervisors supported in

their efforts to engage their people in the activities required to achieve desired outcomes? Does the technology in use support the effective and efficient tracking of employee activities and outcomes in relation to achieving operational goals? Does this technology enable managers and supervi- sors to monitor progress towards operational goals? Organizational Behaviour Do your people know the organization's mission, vision, values, and philosophy? Do your people believe in your organizational vision, mission, values, and philosophy? Has your organization defined observable and measurable behaviours that demonstrate the vision, mission, values, and philosophy of the organization? Are the vision, mission, values, and philosophy of the organization reflected in job design, leadership, structure, training, appraisal systems, compensation, etc.?

MAIN PARAMETERS OF HR AUDIT :

SECTION II. OPERATING procedures 1. Standards of Conduct 2. Employee Conduct and Work Performance 3. Availability for Work 4. Absenteeism and Punctuality 5. Personal Appearance 6. Neatness of Work Area 7. Communications-Problem Resolution 8. Employee Relations 9. Disciplinary Guidelines 10. Use of Company Vehicles 11. Conflicts of Interest 12. Confidentiality of Company Information 13. Safety 14. Violence and Weapons Policy 15. Workplace Monitoring and Searches 16. Substance Abuse 17. Solicitations and Contributions 18. Company Property 19. Office Equipment 20. Tools and Equipment 21. Mandatory Meetings

22. Personal Telephone Calls 23. Personal Mail 24. Severe Weather 25. Suggestions SECTION III. EMPLOYMENT 1. Orientation 2. Equal Employment Opportunity 3. Harassment 4. Criminal Convictions 5. Personnel Files 6. Employment References 7. Employment of Relatives 8. Outside Employment 9. Rehiring Former Employees SECTION IV. COMPENSATION 1. Employment Classification 2. Hours of Work 3. Break Policy 4. Recording Time 5. Overtime 6. Salary And Wage Increases 7. Payroll 8. Bonus Plan 9. Performance Reviews SECTION V. BENEFITS 1. The Benefits Program 2. Benefits Eligibility 3. Insurance 4. Insurance Continuation 5. Holidays 6. Vacation 7. Bereavement Leave 8. Social Security 9. Pre-Tax Deductions 10. Military Leave 11. Medical Leave of Absence 12. Family Leave of Absence 13. Employee Discounts 14. Workers Compensation 15. Jury Duty 16. Unemployment Compensation 17. Educational Assistance

18. Travel Expenses 19. Reimbursable Expenses SECTION VI. ELECTRONIC ACCESS POLICIES (ePOLICIES) 1. General Email 2. E-mail Policies and Procedures Topics Covered: *use *Privacy of Email *Intended Recipients *Confidential Information *Passwords *Access of Another Employee's Email *Copyright and Ethics *Appropriate Language *Solicitation *Harassment *Archived Messages * Network and Internet 3. Personal Responsibility 4. Permitted Use and Term 5. Availability and Access 6. Content and Communications 7. Privacy 8. Downloaded Files 9. Confidential Information 10. Prohibited Activities / Prohibited Uses Topics Covered: -Downloading Software -Printing Or Distributing Copyrighted Materials -Unlicensed Software -Soliciting For Personal Gain -Operating A Business -Searching For Outside Employment -Offensive Or Harassing Statements -Forwarding Inappropriate Messages -Slurs And Jokes -Sexually Oriented Images Or Messages -Accessing Websites: - Pornographic - Terrorism - Espionage -Theft -Drugs -Gambling -Unethical Activities -Activities Damaging To The Company -Granting Access To Others -Impersonating Another Person

-Introducing A Virus 11. Computer Equipment 12. Compliance 13. Noncompliance Software Usage 14. Software Usage Policies and Procedures Topics Covered: -License Agreements -Reproducing Software -Unauthorized Software -Personal Software -Home Use of Company Software -Providing Software To Non-Employees SECTION VII. SEPARATION 1. General 2. Job Abandonment 3. Voluntary Resignation 4. Performance-Based Release 5. Acts of Misconduct 6. Other Forms of Separation 7. Termination Procedures