Human resources audit

Introduction A human resource audit aims at ascertaining the effectiveness of the HR department and its functions. The basic goal of an HR audit is to find out the HR interventions that will increase the firms competitive advantage. It also ensures the compliance of the HR department with the goals, plan and policies of the organization Meaning Human resources audit refers to an examination and evaluation of policies, procedures to determine the effectiveness and efficiency of the human resources management and to verify whether the mission, objectives polices, procedures, programmes have been followed, and expected results achieved. It also called personnel management audit Definitions: A human resource audit is defined as an investigative, analytical and comparative process that attempts to reflect the effectiveness of the human resource functions. - Jack J.Phillips Objectives To know the performance of human resource To revive the performance of human resources department and its activities to determine its effectiveness. To monitor the human resources To locate the gaps, lapses, shortcomings in the implementation of the policies, procedures, practices, directives of the personnel department and to know the areas where non implementation and or wrong implementation has hindered the planned programmes and activities. To take corrective steps To take corrective steps in future to rectify the mistakes, shortcomings if any , in effective performance of the work of the human resources department. To evaluate the personnel To evaluate the personnel staff and employees.

To evaluate the HR department To evaluate to what extent line managers have implemented the directives and guidelines for effective management of human resources in their respective departments. To know the activities of HR To seek answer to such question as what happened? why did it happen? or why did it not happen? in following implementing policies, practices and directives in managing human resources and to improve, qualitative performance of personnel departments. Needs HR is important one `The human resource of an organization is considered as important as, if not, even more important than, the other resources, namely, materials, machines and money. Therefore, every contemporary organization is interested in HR audit. To improve the performance of HR The feedback information available from HR audit necessary to improve the performance of the human resources of the enterprise. To control the cost of labour The rising labour cost is another reason why HR audit is necessary. It guides the organization to adopt certain measures to bring down the cost of labour. To meet the challenges HR audit helps to meet the challenges posed by the trade union. The information available from such an audit will answer certain queries raised by the union officials To face the enquiry The HR audit information available with the organization is also useful in case it has to face any enquiry in future. Reserve bank of india The Reserve Bank of India (RBI) has embarked on its biggest ever human resources (HR) audit programme to take a complete re-look at its man management practices.

The central bank, which is facing challenges on the manpower front from various directions such as retirement and skill upgradation, has hired Hewitt Associates for the exercise during its platinum jubilee year.

HR audit, regarded as a diagnostic tool rather than a prescriptive instrument, is a process which examines the organisations HR policies and procedures to reveal the strengths and weaknesses of employees and suggests solution wherever required. The initiative, first of its kind in many years for the 20,000-odd central bank employees, is aiming to seek feedback from its employees about job satisfaction and future prospects. Internally, RBI faces a huge challenge with a large number of its Grade-A officers, who were designated as assistant managers due for retirement in the next few years. The 5,553-strong Grade-A officers of the bank form the largest chunk among all categories and are responsible for core operational areas such as clearing operation and cheque processing. As on December 31, 2008, the central banks total staff strength was 20,952. In the backdrop of the global financial crisis, the central bank has decided to hire specialists in areas such as derivatives and risk management from the private sector. To start with, it plans to fill up vacancies with outside professionals. According to RBIs internal estimates, employee attrition, apart from retirement, is around 10-15 per cent. HR management dominated RBI discussions during the three-day re-treat in November. It was attended by more than 50 top officials of the central bank, including the governor and deputy governors. The global HR consultant firm, which started the process with a detailed questionnaire of over 100 questions, however, got a lethargic response from RBI staffers. The queries for feedback were divided into four chapters, ranging from employees satisfaction level regarding remuneration, housing facilities, job environment, relationship with peer groups and subordinates, job-related facilities such as office infrastructure and promotion policies.

The most critical aspect of the survey was the feedback on immediate bosses and about the top management. They wanted to know how supportive and motivating are the immediate bosses and whether the top management provides the leadership, said an RBI official. The feedback form, which was circulated electronically in November with a one-week deadline, got only 15 per cent response. The deadline, was later extended four times, but sources said only 50 per cent of the employees responded. Some central bank employees explained the poor participation to a lack of communication between the top officials and their juniors.

Conclusion The auditors always prepare and submit an audit report to authority of the organization, which may be clean or qualified. The clean report indicates the appreciative of the department's function, but the latter one represents the gaps in performance and therefore contains remarks and remedial measures. HR Audit is very much helpful to face the challenges and to increase the potentiality of the HR personnel in the organization. Reference: www.scribd.com

PSR ENGINEERING COLLEGE SIVAKASI DEPARTMENT OF MANAGEMENT STUDIES SEMINAR TOPIC

HUMAN RESOURCE AUDIT NEEDS AND OBJECTIVES Guided By:

MS. J.HEMA.M.COM.,M.PHIL

Submitted To
R.THIRUMALAI KUMAR. Asst-Prof V.M. SANGEETHA. - Asst Prof

Submitted By
M.PONSURESH I Year MBA

Submission Date: 2.3.2012