unit 4

HR Audit Methodology and issues

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Areas needs to be considered Conducting human resource Audit

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Methods used in HR audit Interviewing Observation Group discussion and workshops Questionnaire Analysis of records and documents

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Interviews o In order to ascertain what top management thinks about the future plans and opportunities available for company o The auditors conduct Individual Interview with Top management to collect the information about the effectiveness of the human resource Click to edit Master subtitle style development system, organizational culture skills, styles etc. o Auditors conduct group interview of
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Some of the Benefits of Interview to the auditors

It aids the auditors to capture the main concerns of the primary stakeholders o It helps in getting detailed information which can be re-clarified o It helps revalidate the inputs and strengthen observation which makes the entire auditsubtitle style very dynamic Click to edit Master o It helps in gaining first hand access to and understanding of feeling and perception of the people
o
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Observation o It helps them evaluate the work place and work atmosphere o It helps them to find out to what extent friendly and healthy climate exist in the organization o During the observation auditors normally observes Physical facilities, living conditions, meetings, Click to edit Master subtitle style discussions, and other transaction celebration and other events related to organizational life and culture
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Group Discussions and workshop To evaluate various aspect of HRD and for participative diagnosis, various diagnostic workshops and group discussion can be conducted

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Questionnaire Auditors use various questionnaires to get the information about HRD system and process, styles and competencies

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Analysis of Records and Documents In order to ascertain the strength and weakness of the human resource system of the organization, The auditors scrutinize the annual report, Performance appraisal forms, training documents, employees record files, maintained by HR department.
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Preliminary steps When to conduct audit Who should conduct audit

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The preliminary steps to be considered for audit You have to decide who will conduct the audit. Hr audit can be conducted by the employees of the organization or any specialized outside agency can also conduct audit. Audit team and its members to be decided first

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` Audit subject matter selection is

another important issue. following can be considered for that vLeadership Direction vSenior level management direction vPriority rating assigned following risk analysis vAgency suggestion vSpecial request from Click to edit Master subtitle style DAS(Department of Administrative service and HRSD(Human resource
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Conduct following preliminary steps o Collect Pre-audit information

o Conduct

pre-audit self assessment

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Collect Pre-audit information Involves

Acquiring and review of Relevant
o

HR manuals books

o Hand

o Forms o Reports o And

other information needed to acquire the necessary data

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Conduct pre-audit self assessment o In order to maximize the time spent during the subsequent portion of audit, A pre-audit self assessment form, if sent to the can be of use.
o This

can be an important tool that asks a number of question about current HR policies and practices

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Goals of Audit o Organization can measure where currently it stands and determine what it has to accomplish to improve HR function
o HR

Audit also figures out gap and lapses and other reasons for the same of the audit can be of two types short term and long term
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o Goals

Goals of Audit o Short term goal can solve any recent problem in the organization and the long term goals are objectives that have greater impact on the goodwill of the organization

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Example of short term and long term goal Steel factory

o Many

employees are leaving because of the safety and health issue. Take a corrective action is short term goal improve a job satisfaction and goodwill of the company

o To

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Areas of the audit o Record keeping

o Compliance o Salary

and compensation development and and recognition

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o Benefits o Professional

training
o Performance o Recruiting o Safety

and retention

and health

Issues in HR audit o HR audit is a useful tool for the organizational improvement if the timely actions are not initiated for solving the problems found during the audit process, than whole process is rendered meaningless
o Another

important issue is that results are based on data collected by different level of employees. So accuracy of the results is based on the accuracy of the data collected.
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o Communication

of results should be done in the appropriate manner to the HR personnel. If the results are not communicated properly then the whole process proves to be meaningless.

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