Topics to be covered

Introduction to Human Resource Management Audit.

Objectives of HRM Audit. Benefits of HRM Audit. Scope of HRM Audit. Process of HRM Audit.

Introduction of HRM Audit

The term audit' has been derived from Latin word auditus meaning hearing. Thus audit is hearing of review resulting in a systematic evaluation. Meaning of audit in accounting term is the verification of accounting data for determining the accuracy and reliability of accounting statements and reports From accounting this concept has been used in Management audit and Social audit .

Introduction of HRM Audit.contd.

In Management audit it is divided into two Parts : (a) one is the management function audit covering planning,organizing,staffing directing, and controlling. (b) the other is a management decision audit dealing with the quality of decision in the areas of long range and company wide planning covering various functionsMarketing,production,personnel,accounting,and Finance .

Definition of Human Resource Management Audit

In the context of HRM it ay be defined as the systematic examination and evaluation of policies, procedures, and practices to determine the effectiveness of human resource management Thus HRM Audit is concerned with the evaluation of effectiveness of various HRM activities with the view to identify what should be (or should not be )done in future in the light of such an evaluation.

Objectives of HRM Audit

to evaluate the total HRM programmes in the light of the organizational objectives and programmes and the objectives of HRM; To seek explanation and information on such questions as what happened' and why did it happen; To evaluate the extent to which line managers have implemented various HR policies and programmes that have been developed and initiated; and To evaluate total performance of HR department.

Process of HRM Audit

Appointme nt of auditor Coverage of HRM Audit Specificati on of standard Collection & evaluation of informatio n Preparatio n of Report

Benefits of HRM Audit

Organizat ional objective
HRM Objective HRM activities HRM Outcome HRM Audit

feedback

Benefits of HRM Audit..contd.

Werther and Davis have identified the following benefits of HRM Audit: Identification of the contribution of the HR department to the achievement of the organizational objective; Improvement of the professional image of HR department; Encouragement of greater responsibility and professionalism among members of the HR department; Clarification of HR department duties and responsibilities; Finding critical human resource problems; Ensuring timely compliance with legal requirement.

Scope of HRM Audit

HR strategies and policies ,
HRM Functions HR compliance, and HR climate.

HR strategies and policies

Consistency with organizational objectives ,

strategies and policies; Consistency with the environment; Appropriateness in the light of organizational resources; Workability.

HRM Functions
The type of HRM functions performed;
The degree to which these function are related to HRM

objectives; and The degree to which these functions are performed effectively.

HR compliance
The extent to which line personnel adhere to various HR policies

in dealing with personnel working under them; and The extent to which there is compliance with legal requirements as provided under various legal Acts relevant for management of Human Resources.

HR climate
Degree of employee turnover;
Degree of employee absenteeism; Degree of accidents; Status of grievances and disciplinary actions; and Findings of attitude and morale surveys.

Thank you