ABHAY YADAV

NEERAJ
HARSHVARDHAN SHARMA
JAY SINGH
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.
(OR)

HR Audit refers to Examination & Evaluation of Polices, Practices

& Procedures to detect Effectiveness & Efficiency of HRM and
Verify if Mission, Objectives, Polices, Procedures, Programs are
chased and expected results achieved. HR Audit also suggest
future improvements based on past activities measurement.
 Managements Feel, that Employee Participation in
Activities is:

1. Essential for Organization success.

2. It Provides Required Feedback.

3. Managing Rising Labor Costs.

4. Increasing Opportunities for Competitive Advantage

of HRM.

5. HR Audit can avoid Government intervention

6. HRP protect Employees interests

Though, to audit HR- Policies & Practices
no legal obligation exists, some Modern
Organizations chase to

1. Increase size of Organization & Personnel

2. Change Philosophy of Management towards HR

3. Increase Strength & Influence of Unions

 Special
Policies area
Programmes &
Practices
HR Philosophy
supervision
Personnel Results
leadership styles Scope of
HR Audit Research &
Innovation
delegation
Planning -
Motivation &
Forecasting
commitment

Organizing Scheduling
Staffing &
negotiation
Development
 Basic purpose of HR-Audit is to find:

1. How various units are functioning?

2. How they met policies & guidelines Pre-agreed upon?

3. To assist Rest of Organization locating gaps between

Objectives & Results.

4. Formulate Plan for corrections

1. Effectiveness: To review performance of Human resource Department and
its activities to determine effectiveness.
2. Implementation: To locate gaps, lapses, failings in applying
Polices, Procedures, Practices & HR-directives. Also to see areas of wrong/
non- implementation that hindered the planned programs & activities.
3. Rectification: To take corrective steps to
rectify mistakes, shortcomings contesting effective work performance of
HR Department.
4. Evaluation: To evaluate HR Staff & employees
5. To evaluate the extent to which Line Managers Applied
Policies Programmes & Directives initiated by
Top Management & HR Department
6. Modify: To review HR System and Modify to meet challenges
in comparison with other organizations.
7. Questioning: To seek answers to ‘What, Why ‘When
Happened while implementing Policies, Practices & Directives in
managing HRs
1. Identifies contribution of HR Department.

2. Improves HR Department’s Professional Image.

3. Fosters greater Responsibility & Professionalism amongst

HR Staff.

4. Classifies HR Department’s Responsibilities & Duties.

5. Stimulates Uniformity of Personnel Policies & Practices.

6. Identifies Critical personnel problems.

7. Ensures Timely Legal Compliance Requirements.

8. Reduces HR Costs
•

1.

2.

3.

4.

5.
Auditors Identify another Company as a MODEL.
Result of their Organization compared with those of
Model Company.

Outside Authority Approach –

Often, Auditors use standard set by Outside

Consultant as BENCHMARK for comparison of

own Results.
Auditors review Past Actions to determine if those activities comply
with legal requirements and Company Policies, & Procedures. A
Final approach is for Specialists & Operating Managers to set
objectives in their areas of responsibility.

Management By Objectives Approach –

creates Specific Goals against which performance can be
measured. Then the Audit Team Researches ACTUAL
PEERFORMANCE and COMPARES WITH THE OBJECTIVES.
 HRIS
Human Resource: (HR)
> THE KNOWLEDGE > SKILL > ABILITY

Information System: (IS)

A System, whether automated or manual that consist of Peoples
or Machines to:
 Collect Data
 Process Data
 Transmit Data
 Disseminate Data
 It is an integrated system designed to
provide information used in HR
decision making.
 System that helps
 HR managers to perform
 HR functions in a
 Systematic and more effective way
 By using Technology.
 Reduce paperwork.
 Reduce Manpower .
 Perform speedy tasks.
 Avoid duplication.
 Achieve accuracy
 Job Design and organizational
structure.
 Building organizational capabilities.
 Increasing size of workforce.
 Technological advancement.
 Computerized Information System.
 Changes in Legal Environment.
 STEPS OF SETTING UP AN HRIS

Planning

Analysis

Design

Implementation

Maintenance
 OBJECTIVES OF HRIS


•







Functions can be classified into two
categories:
1. Data Collection:
 Who should collect data?
 What kind of data should be collected?
 How the data would be
collected? After the collection,
data is segregated.

2. Data Management:
 Editing the data
 Storage of data
 Retrieval of data
 Evaluation
 Dissemination
 Recruitment &
Selection

Health, Safety Training &

& Security Development
HRIS

Compensation Performance
& Benefits Evaluation
 Personnel administration
 Salary administration
 Leave/absence recording
 Skill inventory
 Medical History
 Accident monitoring
 Performance appraisal
 Training and development
 Human resource planning
 Recruitment
 HRIS: ADVANTAGES

 Higher speed of retrieval and processing of

data.
 Ease in classifying and reclassifying data.
 Higher accuracy of information/report
generated.
 Enhance employee communications.
 Fast response to answer queries.
 Improved quality of reports.
 Better work culture.
 More transparency in the system.
 It can be expensive in terms of finance.

 It can be inconvenient.

 Computer can not substitute human being.

 Require thorough understanding.

 Failure to keep project team intact.

 Politics / hidden agendas

 System Breakdown
 E - HRM
Introduction

• When HR department uses internet and other related technologies to

support their activities the process is called E-
HRM.
• E- HRM is the complete integration of all HR systems and processes based on
common HR data and information and on interdependent tools and
processes.

• Fully developed E- HRM can provide :

1. data gathering tools,
2. analysis capabilities, decision support resources for HR professionals
to hire, pay, promote, terminate, assign, develop, appraise and reward
employees.
GOALS/OBJECTIVES

• To improve services to HR department clients ( both employees and

management)
• To improve efficiency and cost effectiveness within the HR
department
• To allow HR to become a strategic partner in achieving organizational goals

SOFTWARE USEFUL FOR E-HRM

• ERP (Enterprise Resource Planning)

• Bio-red
• SAP (System Approach & Product)
• HR Payroll System
 E- HRM WORKING AREA
• E- job design & job analysis
• E- Human Resource Planning
• E- Recruitment
• E- selection
• E- Performance management
• E- Training& development
• E- Compensation Management
• E- HR records
 TYPES OF E HRM

Operational E Relational E HRM Transformational

HRM E HRM

Concerned with Concerned with Concerned with

administrative supporting business strategic HR activities.
functions. processes. e.g. knowledge
E.g. Payroll and e.g. training, management,
employee personal recruitment, strategic orientation
data performance
management etc.
ADVANTAGES OF E HRM
• Improves record keeping
• Good for routine tasks
• Improves accuracy and reduces human bias
• Maintains secrecy of staff in evaluation/feedback giving
• Time & resources saver
• Organization system supportive
• Easy controlling approach
• Advancement of technology
• Standard provider
 DISADVANTAGES OF E HRM
• High cost of implementation and maintenance
• High cost of training and development before adopting e HRM
• Not much useful for small scale industries
• Human relations may be replaced with just technical & inorganic relations
• Reduces the need for managers to interact with staff(I.e. less face time and
increased risk of 'losing touch' with staff)
• Subject to corruption/hacking/data losses