CONCEPTS OF HR AUDIT

As we all know an annual health check-up is important to identify any kind of

hidden problem of human body. Like that HR audit is also important to identify the
problems of each department of an organisation.

A human resource audit evaluates the personnel activities used in an organization.

The audit may include one division or entire company. It gives feedback about:

 The function of operating managers: It means managing the process of

creation of goods and services. It involves planning, organizing,
coordinating, and controlling all the resources needed to produce a
company's goods and services.
 The human resource specialists: The role of a Human
Resource (HR) Specialist is to recruit, support, train, and place employees of
a company. Depending on the company's size, a human resource department
may have multiple specialists to perform specific tasks

 How well managers are meeting their human resource duties: all managers
need to plan, direct, and coordinate the administrative functions of an
organization. 

In short, the audit is an overall quality control check on human resource

activities in a division or company and how those activities support the
organization’s strategy.

HRD audit is a comprehensive evaluation of the existing HRD

• Structure: it means the structure of the organization

• Strategies: it means the long term and short term strategy

• Systems: it is the structure of the organisation of how an

organisation is set up

• Styles: it means the different kind of managerial style.

• Skills / Competencies: it is the abilities of the employees.

 • Culture: culture of the organisation..it includes values and
ethics.

And their appropriateness to achieve the short-term and long-term goals of the
organisation.

Here we need to know three important things:

business linkage: It is the process of analyzing the combination of different

source of data, like customer, employee, partner, and operation to uncover
important relationships among important variables (e.g., call handle time and
customer satisfaction)

competency score: The term competency is used to denote a way of

interpreting scores on a performance scale.

systems maturity: it is a key system performance measure which include

projected system performance or effectiveness based on component
performance capabilities.

culture: Organizational culture is a system of shared assumptions, values, and

beliefs, which governs how people behave in organizations. These
shared values have a strong influence on the people in the organization and
dictate how they dress, act, and perform their jobs.

ROLE OF HRD AUDIT IN BUSINESS IMPROVEMENTS

1. Improvements in HRD systems

 Performance Appraisal
 Induction Training
 Job Rotation
 Career Planning & Promotion Policies
 Mentoring
 Communication
2. Increased focus on human resources and human competencies: one of the
results of HR audit is to focus on knowledge, attitudes and skills required by
the employees in the organisation. The audit establishes a system of role
clarity and fixing of accountabilities. More sensitivity is developed to the
missing aspects of competencies.

3. Better recruitment policies and more professional staff: One of the results of
HR audit is to focus on knowledge, attitudes and skills required by the
employees in the organisation. The audit establishes a system of better
recruitment policies and it develops the more professional staff.
4. More planning and more cost effective training: The identification of
training needs and utilization of training of inputs and learning for
organizational growth and development, are assessed. As direct investments
are made in training, any cost benefit analysis draws the attention of the top
management and HR managers to the training function with relative ease.
5. Strengthening accountabilities through appraisal systems and other
mechanisms: HR audit gives the existing state of the accountability of
employees. This gets assessed through performance-appraisal as well as
through work culture.