HR AUDIT

Has anyone heard of hr unhealthiness or in other words we can say a kind of disease
whose result is unsatisfied workforce but what can we do about it as we have a cure to
disease so accordingly hr audit is a cure to disease which causes unsatisfaction among
workforce.

An HR audit is like an annual health check. It plays a vital role in instilling a sense of
confidence in the management and the HR functions of an organization.

HR Audit means the systematic verification of job analysis and design, recruitment and
selection, orientation and placement, training and development, performance appraisal
and job evaluation, employee and executive remuneration, motivation and morale,
participative management, communication, welfare and social security, safety and health,
industrial relations, trade unionism, and disputes and their resolution. HR audit is very
much useful to achieve the organizational goal and also is a vital tool which helps to
assess the effectiveness of HR functions of an organization.

Scope of Audit:
Generally, no one can measure the attitude of human being and also their problems are
not confined to the HR department alone. So it is very much broad in nature. It covers the
following HR areas:

Audit of all the HR function.

Audit of managerial compliance of personnel policies, procedures and legal
provisions.
Audit of corporate strategy regarding HR planning, staffing, IRs, remuneration
and other HR activities.
Audit of the HR climate on employee motivation, morale and job satisfaction.

Organizations undertake HR audits for many reasons:

To ensure effective utilization of human resources.
To instill a sense of confidence in the human resource department that it is wellmanaged and prepared to meet potential challenges and opportunities.

To maintain or enhance the organizations reputation in a community.

Benefits of HR Audit:
It provides the various benefits to the organization. These are:

It helps to find out the proper contribution of the HR department towards the
organization.
Development of the professional image of the HR department of the organization.
Reduce the HR cost.
Motivation of the HR personnel.
Find out the problems and solve them smoothly.
Provides timely legal requirement.
Sound Performance Appraisal Systems.
Systematic job analysis.
Smooth adoption of the changing mindset.

The Audit Process:

1. Pre-Audit Information.
2. Pre-Audit Self-Assessment.
3. On-site Review.
4. Records Review.
5. Audit Report.

An HR audit is much like an annual health check. It can perform the same function for
the organisation. An audit is a means by which an organisation can measure where it
currently stands and determine what it has to accomplish to improve its HR functions. It
involves systematically reviewing all aspects of human resources, usually in a checklist
fashion, ensuring that the government regulations and company policies are being
adhered to. The key to an audit is to remember that it is a tool to discover and not to test.
There will always be room for improvement in every organisation.