Human Resource Management Audits

Presenters Mudassar Hussain 3039Ali raza 3042

What is HRM?Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. HRM can also be performed by line manager.

Human Resource Management Audit?It is mechanism to review the current HR

policies, practices and systems to ensure that they fulfill the rules and regulations. The audit also helps in identifying the areas of improvement in the HR function. Nowadays, the audit is done regularly in the organizations.

The HR audit covers various functions of HR like Recruitment, Compensation & Benefits, Performance evaluation, Termination Process and exit interviews etc.

Advantages of HRM audits?To recognize strengthsTo reveal problem areasConfirms compliance with latest regulationsEnsures effective HR policiesBuilds confidence in HR function

Types of HR audits1.Compliance audits2.Best practice audits3.Strategic audits4.Function specific audits

1.Compliance audit A compliance audit is a comprehensive

review of an organization's adherence to regulatory guidelines. Independent accounting, security or IT consultants evaluate the strength and thoroughness of compliance preparations. Auditors review security polices, user access controls and risk managemen procedures over the course of a compliance audit.

2.Best practices auditsHow do our recruitment practices , hiring

practices , and so on HR functions as well. . .

3.Strategic audits

In particular , our HRM practices helping us to achive our strategic goals etc.

4.Function specific auditsFocus on one or more specific HRM areas ,

such as compensation , T&D etc…

Legal compliances requires auditing;Hiring Performance evaluationEmployee disciplineTerminationAuditing HRIS (personnel files)

Challenges in way of auditing?GlobalizationBusiness Competitors Innovation Growth of the organizationBuilding organizational capabilitiesManaging Change like new HRM policiesChange technologyAttracting and Retaining Intellectual Capital

The HRM auditing process1.decide on the scope of the audits.2.design auditing team.3.using checklists & available

tools(softwares)4.Budgeting of auditing.5.follow laws and regulations6.top management support.7.develop the auditing checklists.8.use questionnaires.9.provide feedback to management.10.take actions.

Methods of HRM auditsINDIVIDUAL INTERVIEW METHOD

GROUP INTERVIEW METHOD

WORKSHOP METHOD

QUESTIONNAIRE METHOD

OBSERVATION

ANALYSIS OF SECONDARY DATA

ANALYSIS OF REPORTS, RECORDS, MANUALS AND OTHER PUBLISHED LITERATURE

INDIVIDUAL INTERVIEW METHOD

Top level management and senior managers are interviewed, individually. It helps in following:

Knowing their thinking about

future plans and opportunities available for the company

Knowing about their expectations from the HR audit

Getting sensitive information pertaining to working styles and culture

GROUP INTERVIEW METHOD

Group interviews and discussions with the employees and executives of large companies for HR audit, facilitate collection of information about effectiveness of existing systems.

WORKSHOP METHOD Workshop Methods also known as Large Scale

Interactive Process (LSIP) is conducted in some cases of audit.

QUESTIONNAIRE METHOD

Feed back about various dimensions of HRD, including the competency base of HRD staff, the styles of line managers, the implementation of various HRD systems, etc are obtained through a detailed questionnaire from individuals or groups for HR audit.

This method helps in benchmarking.

OBSERVATION o The auditors should

physically visit the workplaceo To assess the extent to which

a congenial and supportive human welfare oriented climate exists in the company.

o This is essential because employees are not likely to give their best if they do not live in good surroundings

o The observations can be conducted using a check list of questions.

ANALYSIS OF SECONDARY DATA

Analysis of secondary data can give an insight into the HRD assets and liabilities of the company.

Analysis of age profiles of the employees, analysis of the training attended, analysis of the minutes of the meetings held etc., help in determining the assets and liabilities.

ANALYSIS OF REPORTS,RECORDS, MANUALS AND OTHER PUBLISHED LITERATURE Published literature of the company

including annual reports, marked hand-outs, training calendar personnel manual, and various circulars issued from time to time are also likely to help immensely in assessing the strengths and weaknesses of HRD.

Safety audit? Safety auditing is a core safety management activity, providing a means of identifying potential problems before they have an impact on safety.

security audit? A security audit is an essential assessment of how effectively an organization’s security policies are being implemented. 

Health audit?is a process that has been defined as

"a quality improvement process that seeks to improve workers care and outcomes through systematic review of care against explicit criteria and the implementation of change