Hr Audit Presentation Ppt u6d69

HR Audit Richard Menes

Aspects of HR Audit

Strategic Functions

Compliance Issues

What is HR Audit?

 It is a Comprehensive Evaluation of Human Resource Development:  Strategies, Systems and Practices  Structures and Competencies  Styles and Culture  And their appropriateness to achieve the short and long term business goals of the organization.

Purpose

 To assess the effectiveness of the Human Resources function to ensure regulatory compliance  To look for potentially serious problems  To find areas needing improvement

 To document processes for use in merger, reorganization or inspection  To address compliance issues

Benefits

 Create an HR business plan

 Streamline HR work processes  Monitor compliance with established regulations and procedures  Develop -friendly HR systems

 Identifies the contribution of the personnel departments to the organization  Improves professional image of the personnel department  Encourages greater responsibility and professionalism among of the personnel department  Clarifies the personnel department’s duties and responsibilities  Finds critical personnel problems

To Evaluate and Improve HR Practices in:

 Staffing

 Compensation and Benefits  Performance Management  Employee Development  Employee Relations  Safety

 Reporting and Recordkeeping

Reasons for HR Audit

 For expanding, diversifying and entering into a fast growth phase  For promoting more professionalism and professional management  Bench-marking for improving HRD practices  Growth and diversification  Dissatisfaction with any component

 Change of leadership

Role of HR Audit in Business Improvements

 HRD audit is cost effective

 It can give many insights into a company's affairs.  It could get the top management to think in of strategic and long term business plans.  Changes in the styles of top management  Role clarity of HRD Department and the role of line managers in HRD

Role of HR Audit in Business Improvements

 Improvements in HRD systems

 Increased focus on human resources and human competencies  Better recruitment policies and more professional staff

 More planning and more cost effective training  Strengthening abilities through appraisal systems and other mechanisms

 Streamlining of other management practices  TQM Interventions

Scope

 Audit of Corporate Strategy  Corporate Strategy concerns how the organization is going to gain competitive advantage.  Audit of the Human Resource Function  Audit touches on Human Resource Information System, Staffing and Development, and Organization Control and Evaluation.  Audit of Managerial Compliance  Reviews how well managers comply with human resource policies and procedures.

 Audit of Employee Satisfaction  To learn how well employee needs are met.

Tasks of Auditors

 Identify who is responsible for each activity.  Determine the objectives sought by each activity.

 Review the policies and procedures used to achieve these activities.  Prepare a report commending proper objectives, policies, and procedures.  Develop an action plan to correct errors in each activity.  Follow up the action plan to see if it solved the problems found through the audit.

Methodology

 Interviews

    

Individual and group Top Management Line Managers HRD Staff Workmen and others

 Questionnaires  Observation

 Analysis of records and secondary data  Workshops

 Task forces and internal teams  External Auditors have a significant role  Benchmarking of questionnaire data