Professional Documents
Culture Documents
Objectives:
1. To review the system of recruitment, selection, training and development, allocation and utilisation of human resources in the organisation. 2. To evaluate the extent to which the HR Management policies and procedures are implemented by the various departments in the organisation. 3. To find out any deficiencies and shortcomings in the management of human resources.
Need: 1. Increasing size of the organisation and HR in several organisations. 2. Changing philosophy of management towards HR.
Benefits:
Major areas
Level 1: Results
Personnel shortages, supplies, layoff, etc.
Major areas
Level 1: Results
Staffing & Development : Defined requirements & careers; sources, recruitment, selection, training, promotions.
Major areas
Level 1: Results
Feedback, reader interest, extent of format, organisation, reports, records, etc.
Major areas
Level II: Programmes & Procedures Job enlargement, wage & salary administration, morale survey, exit interviews, fringe benefits, etc.
Level III: Policy Gain high personal identification, ensure full satisfaction.
Motivation & Commitment : Individual & group motivation, interest, effort, contribution.
Major areas
Level 1: Results
Suggestions, promotions, grievances, discipline, unionmanagement cooperation.
Major areas
Level 1: Results
Changes, experiments, research reports, publications.
HR audit process: 1. Identifying indices, indicators, statistical ratios and gross numbers in some cases.
2. Examining the variations in time-frame in comparison with a similar previous corresponding period.
3. Comparing the variations of different departments during different periods. 4. Examining the variation of different periods and comparing them with similar units and industries in the same region.
Types of audit:
Internal audit: done by employees of the HR department of the organisation. External audit: done by external specialists or consultants in HR management. Crisis audit: conducted when serious crisis occurs like strikes, increase in the number of conflicts, grievances, etc. Regular audit: audit of almost all the HR policies and practices certain indicators like absenteeism and employees grievance should be audited at the end of every month/quarter depending upon the magnitude of the issues.
Audit report:
1. Table of contents 2. Preface
5. A clear and in-depth analysis of the data and information, furnished area-wise or departmentwise. 6. Evaluation, discussions and analysis.
7. Appendix supporting data and information. 8. Bibliography important books and journals.
Problems in HR audit:
1. Past ratios, rates of turnover, expenditure, etc of HR dept is compared with those of other depts and organisations. The organisation cannot be taken as standard for comparison.
2. A tendency to turn the survey into a faultfinding process.