Principles of effective Human Resource Audit

Last updated on 25/10/2021 0 By indiafreenotes

The P4 (Policies, Programmes, Practices, People) HR concept re­quires to be audited time to time. This will lead to maintain to growth and development of the organization. If you are guiding your HR func­tion through compliance and employee relations issues, you know how challenging your work can be.

With the Human Resource Audit, you can determine where you are, prioritize what you have to do and know for certain you have looked at the right issues. Your comfort level and profes­sional contribution will be confident about moving forward.

Human resource audit means the systematic verification of job analysis, job description, job design, records of recruitment and selection, orientation and placement, training and development, job evaluation, performance appraisal, motivation and moral, compensation packages, welfare and social securities as well as industrial disputes and their solutions.

HR audit is very much useful to verify the HR practices and a vital tool which helps to assess the effectiveness of HR functions and performances of an organisation.

An audit is a review and verification of completed transactions to see whether they represent a true state of affairs of the business or not. Thus, an audit is an examination and verification of accounts and records.

Human Resource (HR) audit refers to an examination and evaluation of policies, procedures and practices to determine the effectiveness and efficiency of HRM. In essence, HR audit refers to:

(i) The measurement of the effectiveness of the HRM’s missions, objectives, strategies, policies, procedures, programmes and activities and.

(ii) The determination of what should not be done in the future as a result of such measurement.

Principles

(i) Define the role of the HR function in the context of the organization’s current and future business plans.

(ii) Create a system for cost-effective hiring.

(iii) Develop programmes for the orientation and training of new employees.

(iv) Develop and manage employee communication.

(v) Prepare key personnel policies and make it available to employees and also train the employees in policy adherence.

(vi) Implement and install the HR IS system.

  • Need for independence.
  • Audit activities should be budgeted properly.
  • Acknowledgment that there are many types of audits.
  • Each type of an HR audit has its own goal, scope and might use different methodology.
  • Established time frames for every phase/step of the audit.
  • Trained auditors.
  • Set standards for HR auditing.
  • Reporting template and final audit report.
  • Auditors should sign NDAs and keep information confidentiality.
  • Auditors should agree preliminary on communication strategy.