Hi, all.
Please, can anyone tell me what an HR audit is exactly? What is the need for this? Is it required for every company or only for specific types of industries? I want detailed and brief information about the topic.
Yashswa
From India, Mumbai
Acknowledge(0)
Amend(0)
1Please, can anyone tell me what an HR audit is exactly? What is the need for this? Is it required for every company or only for specific types of industries? I want detailed and brief information about the topic.
Yashswa
From India, Mumbai
Acknowledge(0)Amend(0)
Hi Yashsva,
HR Audit is a comprehensive evaluation of the entire gamut of HR activities, including:
- HR Cost
- HRD activities
- Health, Environment & Safety
- Legal Compliance
- Quality
- Compensation & Benefits
HRD Audit is an evaluation of only a few activities:
- Strategies
- Structure
- Systems
- Styles
- Skills & Competencies
- Culture
This evaluation helps the organization have a clear understanding of the lacunae and better align the HR processes with business goals.
HR Audit is done for the following reasons:
- To make the HR function business-driven
- Change of leadership
- To take stock of things and to improve HRD for expanding, diversifying, and entering into a fast-growth phase
- For growth and diversification
- For promoting professionalism among employees and to switch over to professional management
- To find out the reasons for low productivity and improve HRD strategies
- Dissatisfaction with a particular component
- To become the employer of choice
HR Audit can be done in any size of the organization provided the company has reached some level of maturity and people have accepted the HR within the organization. It also helps to find out gaps/discrepancies within the HR role.
Regards,
Pooja
From India, Pune
Acknowledge(0)Amend(0)
HR Audit is a comprehensive evaluation of the entire gamut of HR activities, including:
- HR Cost
- HRD activities
- Health, Environment & Safety
- Legal Compliance
- Quality
- Compensation & Benefits
HRD Audit is an evaluation of only a few activities:
- Strategies
- Structure
- Systems
- Styles
- Skills & Competencies
- Culture
This evaluation helps the organization have a clear understanding of the lacunae and better align the HR processes with business goals.
HR Audit is done for the following reasons:
- To make the HR function business-driven
- Change of leadership
- To take stock of things and to improve HRD for expanding, diversifying, and entering into a fast-growth phase
- For growth and diversification
- For promoting professionalism among employees and to switch over to professional management
- To find out the reasons for low productivity and improve HRD strategies
- Dissatisfaction with a particular component
- To become the employer of choice
HR Audit can be done in any size of the organization provided the company has reached some level of maturity and people have accepted the HR within the organization. It also helps to find out gaps/discrepancies within the HR role.
Regards,
Pooja
From India, Pune
Acknowledge(0)Amend(0)
Hi Pooja,
Thank you for your reply and your valuable information. I still have a doubt about whether HR AUDIT is the responsibility of the HR HEAD or if some qualified professionals need to be appointed from outside. Also, whether it can be done as a regular activity of the company like all other functions such as recruitment, training, and administration.
Regards,
yashswa
From India, Mumbai
Acknowledge(0)Amend(0)
Thank you for your reply and your valuable information. I still have a doubt about whether HR AUDIT is the responsibility of the HR HEAD or if some qualified professionals need to be appointed from outside. Also, whether it can be done as a regular activity of the company like all other functions such as recruitment, training, and administration.
Regards,
yashswa
From India, Mumbai
Acknowledge(0)Amend(0)
Hi Yashsva,
Usually, an audit is conducted by a third party since they are typically impartial and unbiased. However, every activity ultimately needs to start internally. First, the company should conduct internal audits and then hire a third party for an extensive audit. It is not solely the responsibility of the HR Head. Everyone in the HR department needs to work together to ensure the HR and audit are successful.
Regards,
Pooja
From India, Pune
Acknowledge(0)Amend(0)
Usually, an audit is conducted by a third party since they are typically impartial and unbiased. However, every activity ultimately needs to start internally. First, the company should conduct internal audits and then hire a third party for an extensive audit. It is not solely the responsibility of the HR Head. Everyone in the HR department needs to work together to ensure the HR and audit are successful.
Regards,
Pooja
From India, Pune
Acknowledge(0)Amend(0)
hi yashsva
i did my internship in HR audit so i hav sum stuff..i hope it mite proove helpful to u..
HUMAN RESOURCE AUDIT
An HR “Early Warning System” that works !
Your tool to assess the present. Your blueprint for the future. Your commitment to excellence.
An audit is a means by which an organization can measure where it currently stands and determine where it has to accomplish to improve its human resource function.
The HR Audit is a process of examining policies, procedures, documentation, systems and practices with respect to an organization’s HR functions. The purpose of the audit is to reveal the strengths and weaknesses in the non profit’s human resource system, and any issues needing resolution.
The audit itself is a diagnostic tool, not a prescriptive instrument. It helps in identifying what is missing and needs to be improved, but it can’t tell what one needs to do to address those issues. It is most useful when an organization is ready to act on the findings.
ROLE OF HR AUDIT IN BUSINESS DEVELOPMENT
An HR Audit is like an annual health check, says EJ Sharma. It plays a vital role in instilling confidence in the management and the HR functions of an organization.
A healthy HR practice in an organization is as important as the physical and mental well being body.
The following are some of the favorable consequences of HR Audit that have been observed:
HR Audit helps to get a clue about the overall status of the organization and also to find out whether certain systems put in yielding any results.
It helps companies to figure out any gaps or lapses.
It compares the plans and implementations.
Improvements in HR systems.
Increased focus on human resource and human competencies.
Better recruitment policies and more professional staff.
More planning and more cost-effective training.
Streamlining of other management practices.
TQM interventions.
METHODOLOGY OF HR AUDIT:
HRM requires the use of a number of methods for HR Audit. The methodology of HR audit depends upon the level of HR Audit. The HR Audit may be conducted to understand the system and procedure or may be conducted to understand the compliance of system and procedure. The Bank of Baroda conducts HR Audit to evaluate the compliance of system and procedure.
The methodology used in HRD audit by and large has the following steps:-
Individual Interviews
Group Interviews
Workshop
Questionnaire Method
Observation
Analysis of Secondary Data
Analysis of Reports, Records, Manuals, and other Published Literature
WHY DO MOST COMPANIES WANT HR AUDIT
The concept of HR Audit has emerged from the practice of yearly finance and accounting audit, mandatory for every company, to be done by the external auditors. This audit serves as an examination on a sample basis of practices and systems for identifying and ensuring that sound accounting principles are followed. Similarly, an HR audit serves as a means by which an organization can measure the health of its human resource function.
There are various reasons why companies want to undertake HR audit, some of which have been stated below:
To make the HR function business driven.
To review compliance with tons of laws and regulations.
To instill a sense of confidence in the human resource department that it is well-managed and meets potential challenges and opportunities.
For promoting professionalism among employees and to switch over to professional management.
To help in achieving organizational maturity in terms of Human Resource Administration.
To maintain or enhance the organization’s reputation in a community.
To identify areas of innovative Human Resource practices being followed in any pocket.
LIMITATIONS OF HR AUDIT
The audit itself is rarely a failure. Most HR failures are due to failure of implementation.
Sometimes HR audit can also be used against the HRD department. It can be used to get rid of some staff in the department. Such a decision can have an adverse effect on the overall HRD of the company subsequently.
HR audit does not give evaluations of individuals but focuses on units and systems.
regards
neha
:)
Acknowledge(0)Amend(0)
i did my internship in HR audit so i hav sum stuff..i hope it mite proove helpful to u..
HUMAN RESOURCE AUDIT
An HR “Early Warning System” that works !
Your tool to assess the present. Your blueprint for the future. Your commitment to excellence.
An audit is a means by which an organization can measure where it currently stands and determine where it has to accomplish to improve its human resource function.
The HR Audit is a process of examining policies, procedures, documentation, systems and practices with respect to an organization’s HR functions. The purpose of the audit is to reveal the strengths and weaknesses in the non profit’s human resource system, and any issues needing resolution.
The audit itself is a diagnostic tool, not a prescriptive instrument. It helps in identifying what is missing and needs to be improved, but it can’t tell what one needs to do to address those issues. It is most useful when an organization is ready to act on the findings.
ROLE OF HR AUDIT IN BUSINESS DEVELOPMENT
An HR Audit is like an annual health check, says EJ Sharma. It plays a vital role in instilling confidence in the management and the HR functions of an organization.
A healthy HR practice in an organization is as important as the physical and mental well being body.
The following are some of the favorable consequences of HR Audit that have been observed:
HR Audit helps to get a clue about the overall status of the organization and also to find out whether certain systems put in yielding any results.
It helps companies to figure out any gaps or lapses.
It compares the plans and implementations.
Improvements in HR systems.
Increased focus on human resource and human competencies.
Better recruitment policies and more professional staff.
More planning and more cost-effective training.
Streamlining of other management practices.
TQM interventions.
METHODOLOGY OF HR AUDIT:
HRM requires the use of a number of methods for HR Audit. The methodology of HR audit depends upon the level of HR Audit. The HR Audit may be conducted to understand the system and procedure or may be conducted to understand the compliance of system and procedure. The Bank of Baroda conducts HR Audit to evaluate the compliance of system and procedure.
The methodology used in HRD audit by and large has the following steps:-
Individual Interviews
Group Interviews
Workshop
Questionnaire Method
Observation
Analysis of Secondary Data
Analysis of Reports, Records, Manuals, and other Published Literature
WHY DO MOST COMPANIES WANT HR AUDIT
The concept of HR Audit has emerged from the practice of yearly finance and accounting audit, mandatory for every company, to be done by the external auditors. This audit serves as an examination on a sample basis of practices and systems for identifying and ensuring that sound accounting principles are followed. Similarly, an HR audit serves as a means by which an organization can measure the health of its human resource function.
There are various reasons why companies want to undertake HR audit, some of which have been stated below:
To make the HR function business driven.
To review compliance with tons of laws and regulations.
To instill a sense of confidence in the human resource department that it is well-managed and meets potential challenges and opportunities.
For promoting professionalism among employees and to switch over to professional management.
To help in achieving organizational maturity in terms of Human Resource Administration.
To maintain or enhance the organization’s reputation in a community.
To identify areas of innovative Human Resource practices being followed in any pocket.
LIMITATIONS OF HR AUDIT
The audit itself is rarely a failure. Most HR failures are due to failure of implementation.
Sometimes HR audit can also be used against the HRD department. It can be used to get rid of some staff in the department. Such a decision can have an adverse effect on the overall HRD of the company subsequently.
HR audit does not give evaluations of individuals but focuses on units and systems.
regards
neha
:)
Acknowledge(0)Amend(0)
hii Neha ..!!!! thanx 4 ur valuable information on HR Audit. Yes it has definitely added in my knowlege towards HR Audit regards, yashswa.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Admin-HR AUDIT.zip
HR Audit questionaire (2).xls
HR Audit Questionnaire.d oc