HR Audit

HR AUDIT

A Project Submitted to

University of Mumbai for partial completion of the degree of

B.M.S (Bachelor of Management Studies)

Under the Faculty of Commerce

By

Miss. Neethu Suresh Pillai

Roll No: 72

Under the Guidance of

PROF :-Sairam Iyer

Vidyavardhini’s

Annasheb Vartak College of Arts,

Kedarnath Malhotra College of commerce

E.S. Andrades College of Science,

Vasai Road (W) District – Palghar-401208

 Vidyavardhini’s
Annasaheb Vartak College of Arts,
Kedarnath Malhotra College of commerce
E.S. Andrades College of Science,
Vasai(west), Dist. Palghar, Maharashtra-401202
Certificate
This is to certify that Miss. Neethu Suresh Pillai has worked and duly completed his Project Work for
the degree of Bachelor of Management Studies under the Faculty of Commerce in the subject of
Project Work and his/her project is titled, “HR Audit” under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that no part
of it has been submitted previously for any Degree or Diploma of any University.

It is his/her own work and facts reported by his/her personal findings and investigations.

PROF. Sairam Iyer

INTERNAL EXAMINER

_______________

DATE OF SUBMISSION

EXTERNAL EXAMINER

________________
 Declaration

I, the undersigned Miss.Neethu Suresh Pillai here by, declare that the work embodied in this project work
titled “Hr Audit” forms my own contribution to the research work carried out under the guidance of Prof.
Sairam Iyer is a result of my own research work and has not been previously submitted to any other
University for any other Degree/ Diploma to this or any other University.

Wherever reference has been made to previous works of others, it has been clearly indicated as such and
included in the bibliography.

I, here by further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.

Neethu Suresh Pillai

Roll No. 72

Certified by

Prof. Sairam Iyer

 Acknowledgment

To list who all have helped me is difficult because they are so numerous and the depth is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.

I take this opportunity to thank the University of Mumbai for giving me the chance to do this project.
I would like to thank my Principal, Dr. Arvind Ubale for providing the necessary facilities required
for completion of this project.

I take this opportunity to thank our Unaided Course In-Charge Prof. Srimathi Narayanan for
providing the opportunity to do this project.

I take this opportunity to thank our Coordinator Prof. Bhavana Chauhan, for her moral support and
guidance.

I would also like to express my sincere gratitude towards my project guide Prof. Sairam Iyer whose
guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and magazines
related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported me throughout my project.
 Research Methodlogy

MEANING: - Research methodology refers to the systematic approach and techniques used by
researchers to conduct research studies, collect and analyse data, and draw conclusions. It is the process
of planning, designing, and conducting research in scientific and structured manner to answer research
questions or test hypotheses. Research methodology includes various steps such as literature review,
formulating research questions, selecting a sample, collecting and analysing data, and interpreting the
results.

There are Two Types of Data Collection Methods: -

1.Primary Data Source: - Primary data refers to the first-hand data gathered by the researcher himself. It is
data that is collected through research methods such as surveys, experiments, questionnaire, interviews,
and observations. Primary data is usually collected with a specific research question or objective in mind
and can be customized to suit the needs of the researcher.

2.Secondary Data Source: - Secondary data, on the other hand, refers to information that has already
been collected by someone else. It can come from a variety of sources such as government agencies,
websites, books, academic journals, industry reports, and market research firms. The project is based on
Secondary Data
 Executive Summary

HR policies encourage people to exercise a degree of choice on how and how well they do their job. In
other words, they help induce employee discretionary behaviour which makes people work better and
improve performance. This happens because the HR policies and practices develop positive employee
attitudes or feelings of satisfaction, commitment and motivation

This study examines what factors affect employee attributions to HR practices in relationship with HR
satisfaction and organizational outcomes. As a result this study gives a better insight in how employees
individually perceive HR practices and what kind of attitude or behaviour they will display when these
practices are made distinctive . This research demonstrates how the HR practices are perceived by
employees. If employees are satisfied they are willing to display behaviour that is beyond expectations
and is neither described nor rewarded by any formal reward system .So with this reference the project
titled.
Study of HR Policies & Practices
has been conducted ,based on the primary research in IBM.
 Index
CHAPTER TABLE OF CONTENT PAGE
NO NO
1 INTRODUCTION 1-4

1.1 Definition 2

1.2 Objective 3

1.3 Primary Objective 4

2 BENEFITS AND SCOPE OF HR AUDIT 5-7

2.1 Purpose and Importances of HR audit 6

2.2 Purpose of HR audit 7

3 HR AUDIT – ROLE OF HRD AUDIT 8 - 12

3.1 Types – Internal and External Audit 10

3.2 3 main approaches 11

3.3 Role of HR teams and Agency HRD 12

4 HR AUDIT REPORT 13 - 15
4.1 Structure of HR Audit Report 14

4.2 HR Audit process 15

5 COMPLAINCE OF HR AUDIT 16 - 20

5.1 Introduction 17

5.2 Broad process of HR Audit 18

5.3 Areas of compliance HR Audit 19

5.4 List of Activities 20

6 REPORT WRITING 21 - 22

6.1 Observation 22

7 STRATEGIC HR AUDIT 23 - 30

7.1 Introduction 24

7.2 List of activity 24

7.3 Process 26

HR Audit Survey 27
*
Log Book 28
*
Reports and Conditional Formatting 29
*
Strategic HR Audit Report template 30
*
Conclusion 31
*
 1

CHAPTER 1 -- INTRODUCTION

An HR audit is a way to assess the effectiveness of your human resources

department. It can be an annual event or done on-demand when there are
problems in the department. The goal is to find ways that can improve your
team and make sure you have a healthy work culture that supports employees
at all levels. This article discusses some common areas where audits should
focus their attention in addition to their components, types, and checklist.
HR professionals, once through with this, become part of a renewed action
plan.

HR audits are reviews of documentation, HR policies, and practices through

which organizations can identify gaps in HR compliance and address them
before they become problematic or even unsafe for staff members.
The process not only evaluates how compliant companies are but also ensures
they’re giving employees all that satisfaction required while being sensitive to
cultural differences and religious beliefs leading to collective growth.
We can say that they are the agents of change to maintain healthy, successful
teams. Also, they provide an objective third-party perspective and can help
identify areas of refinement that your team may have missed on their own.
 2

1.1 - Defination Of HR Audit

HR audits are structured reviews of an organization’s

human resources policies, procedures, documentation,
systems, and practices with the objective of assessing
compliance with legal requirements and identifying
opportunities for improvement. – Society for Human
Resource Management (SHRM)
HR audit is defined as “an objective, systematic review of
an organization’s HR policies, pra0ctices, procedures, and
strategies to protect the organization, establish best
practices, and identify opportunities for improvement. –
Shawn Smith and Rebecca Mazin “The HR Answer Book”
 3

1.2 - Objective

An HR audit is an organized review of an organization’s personnel

compliance, policy implementation, systems, processes, and procedures. It is
carried out by a certified professional and typically comprises of different
phases, including research, analysis, investigation, and reporting. The
objective of HR audit is to ensure that the organization’s personnel practices,
policies, and procedures are in compliance with applicable employment laws
and regulations.

HR audits also verify that the personnel policies and procedures issued by an
organization support integrity and compliance. Internal HR audit is
conducted by the HR department and serves as a tool to identify areas of non-
compliance with company policies and external laws. An external HR audit is
conducted by an HR professional and provides the organization with an in-
depth review of the company’s policies and procedures, compares them with
legal standards, and evaluates the organization’s level of compliance.
 4

1.3 - Primary Objectives of HR Audit

The primary objectives of HR audit are to identify potential legal risks,

implementation issues, and areas that require improvement. Primary
objectives include:

•Verifying compliance with applicable laws: An internal HR audit ensures

that the personnel policies and procedures comply with the relevant laws and
regulations.

•Assessing personnel system:HR audits are designed to identify any

potential weaknesses in the personnel system as well as any discrepancies
with the organization’s internal policies.

•Risk management & liability reduction:An HR audit helps to identify

potential liabilities and risks, allowing the organization to take effective
measures to reduce the risks of being exposed to them.

•Best-practice review:An HR audit can provide the organization with an

opportunity to review and update the best-practices, policies, and procedures
to ensure the most efficient and effective personnel system.
 5

CHAPTER 2 -- The Benefits and Scope of

HR Audit

There are many benefits associated with having an in-depth

audit done periodically. Here’s a list of a few benefits:

•Understanding employee satisfaction levels and giving

employees input into the process
•Improving employee relations which then smoothens the
onboarding process and having new employees
•Identifying potential risks for your organization from both data
analytics and expert analysis
•Helping you stay compliant with the local laws and federal
employment laws by identifying all necessary documentation
requirements (e.g., wage/hour) and making sure critical tasks
like payroll processing run in a seamless way, so there is no
disruption in HR operations if something goes wrong due to
human error or system failure. Non-compliance with the laws
like FMLA or any other may result in fines and a bad
reputation.
If you think there need to fix your HR department policies, you
can hire a legal counsel in an advisory role during the audit.
 6

2.1 - Purpose & Importance of HR Audit

The purpose of HR audit is to identify non-compliance areas, assess personnel

system for accuracy and efficiency, and prevent potential liabilities. It is also an
effective strategy to assess the overall success of the organization. It can
provide organizations with valuable insights into their current personnel
processes, financial risks, and legal liabilities.

The importance of HR audits cannot be understated. An effective audit

identifies any current or potential liability, ensures there is compliance with the
legal requirements, and provides a roadmap for the organization’s personnel
operations. An HR audit also reduces the organization’s chances of facing costly
lawsuits stemming from compliance issues.
 7

2.2 - Purpose of of HR Audit

1. To clarify desired practices of human resource work and roles within the
organization.

2. To establish a baseline for future improvement.

3. To evaluate current effectiveness.

4. To standardize practices across multiple sites within a division or

company.

5. To assess current knowledge and skills required of human resource

practitioners.

6. To improve performance levels of key customers within the organization.

 8
CHAPTER 3 -- HR Audit – Role of HRD Audit
HRD audit is cost-effective and can give many insights into a company’s affairs. The auditors come
for one to two weeks, camp at the organization and give a report in a month’s time. They normally
make a preliminary presentation at the end of their visit.

HRD audit can lead to several roles:

1. Getting the Top Management to Think in Terms of Strategic and Long-Term Business
Plans:
It may sound ironical that the HRD audit should begin with such strategic plans, but in some cases it
has compelled the top management to think about such plans, while some companies started
thinking about them, a few others started sharing these plans with a larger number of persons.Since
the employees cannot participate in an HRD audit without some sharing of these plans, the audit has
forced the top management to share their plans which has resulted in increased employee
involvement.

2. Clarifying the Role of the HRD Department and Line Managers in HRD:
In almost all cases the HRD audit has been found to draw the attention of employees at various
levels to the important role of the HRD department current as well as the future. Enhanced role
clarity of HRD department and HRD function and increased understanding of line managers about
their HRD role have been the uniform results of HRD audit. The degree may vary from organization
to organization depending on other factors.

3. Streamlining of Other Management Practices:

Most often HRD audit identifies the strengths and weaknesses in the some of the management
systems existing in the organization. It also points out to the absence of systems that can enhance
human productivity and utilization of the existing competency base; for example, the MIS, rules and
procedures, etc., which may have an effect on the functioning of the employees.
Preparation of a manual of delegation of powers, clarification of roles and responsibilities,
developing or streamlining the manuals of financial and accounting procedures and systems,
strengthening the information systems, and sharing of information are some of the resultant activities
in this direction.
 9

4. Better Recruitment Policies and more Professional Staff:

An HRD audit points out to the competence base required. It sets the stage and
gives direction for the competency requirements of employees at various
levels and thus provides a base for recruitment policies and procedures. In
some companies, it has resulted in strengthening the recruitment policies and
procedures. As a result of HRD audit, new recruitment and retention strategies
have been worked out.

5. Changes in the Styles of Top Management:

One of the objectives of HRD is to also create a learning organization. A
learning culture can be created only if the top managers of the company
exhibit an HRD style of management. Such a style requires an empowering
attitude, participative style of management, and an ability to convert and use
mistakes, conflicts and problems as learning opportunities.
Some of the top-level managers in India have been found to block employee
motivation and learning through coercive, autocratic and even paternalistic
styles of management. In such cases the HRD audit has pointed out the
difficulties in developing and preparing the employees for the future. This has
helped to provide subtle feedback to the top management and to initiate a
change process.
 10

3.1 - HR Audit – Types: Internal Audit

and External Audit
HR audit may be done by two ways:

Type 1. Internal Audit:

When an audit is done by a person who is employee of the
organisation then it is called internal audit. The internal
person will need to be trained and can be given a set of
questions which he can render to the persons for seeking
answers.

Type 2. External Audit:

When an audit may be conducted by external specialists or
consultants who are not the employees of the organisation
then it is called external audit. It is generally advisable to get
the audit conducted by external person who can objectively
evaluate the performance and support corrective actions
freely.
After collecting information and answers to the questions the
auditor can summarise his findings and submit a report to the
management. On the basis of auditor report to the
management can take necessary actions to improve the
performance of HR department and its personnel.
 11
3.2 - HR Audit – 3 Main Approaches
Approach 1. Legal:
The audit of performance or conformity consists of making an inventory of the
social situation of the company, considering the labor law norms and regularly
verifying the company’s compliance with the applicable regulations. Concern
about labor risks has created a function within HRM with the purpose of altering
working conditions by identifying the risks that could stem from them and
implementing necessary preventive measures.Such preventive activity could fit
perfectly into the legal approach of HR, although the effort that the company can
make in this sense can go beyond the application of the existing risk prevention
laws’. Hence the legal approach is primarily focused on the company’s legal
compliance to various labour legislations and acts.

Approach 2. Benchmarking:
The benchmarking approach to HR audit is primarily oriented towards
continuous improvement in HR systems, policies and processes to deliver more
value to the employees.Such benchmarking can be done internally as well as
externally. The internal benchmarking shall compare the HR practices of the
company against its own standards, whereas in external benchmarking the same
is compared with the best-in-class practices in the industry.

Approach 3. Strategic:
In strategic approach to HR audit the relevance of the HR practices, systems and
processes is seen with respect to the strategic objectives of the fir. How much do
they these systems and practices contribute to furthering the business objectives
of the firm? The strategically audit of HR helps assure that the HR programs are
aligned with the Company’s long-term objectives.

3.3 - Role of HR Audit Team and Agency HRD
Sl. No. ROLE OF HR AUDIT TEAM
1 Conduct HR Audit without fear,
favor or prejudice
2 Be professional and observe
code of conduct and ethics
3 Inspect and inquire into and call for
any information arising from those
accounts and records.
4 Present HR Audit findings to
Agency
5 Prepare HR Audit report with
recommendations for submission to the
Commission.
6 Follow-up HR Audit reports to
ensure that audit recommendations are
complied with and implemented.
21
12
ROLE OF AGENCY HRD
Provide free access to all information and
records of agencies that relate to HR management
and to inspect and inquire into and call for any
information arising from those accounts and
records.
Be required to provide with such
facilities, assistance, information and access
to their respective offices as the
Commission may require for the performance of its
duties.
Keep all the necessary documents ready
for auditing.
Provide full cooperation and support to
the auditing team while conducting HR audit.
Provide feedback to the management and the
RCSC on the conduct of HR Audit.
Comply with HR audit findings and
implement its recommendations.
 CHAPTER 4 -- HR Audit Report 13

The HR auditor, after examining various aspects of HRM, compiles these

observations, analysis, findings and recommendation in the form of a report.

Jobs of the HR Auditor can be enumerated as follows:

1. To get the current facts.

2. To study the effectiveness of the present system by answering the following
issues –
a. Why was the practice introduced?
b. What would be the result, if the practice is discontinued?
c. What needs were intended to be fulfilled and have those been fulfilled or
not?
d. What could be the best possible alternative for fulfilling such needs?
e. What changes can improve effectiveness of the existing practice?
f. Are such intended changes economically and operationally viable?
g. Are such changes sustainable from the union’s point of view?
h. What should be the time-frame for introducing the change?

The reports may accommodate the following:

i. Table of contents
ii. Preface explaining the background of the evaluation
iii. Objectives of audit, methodology of audit programme
iv. Analysis of data and information
v. Findings
vi. Summary and conclusions
vii. Recommendations
viii. Appendix.
 14

4.1 - Structure of HR Audit Report:

1.Introduction – HR auditor has to give a brief of the organization

profile, objectives, purpose of audit, methodology employed, HR
practices in vogue and future plans of organizations.
2. Current scenario – This part of the report deals with staffing of
HR functions, objectives, policies and programmes, strength,
weakness, opportunities and challenges encountered by HR
segment.
3. General observation – Auditor reviews the SWOT of the
organization, future potential, competitors, various factors
influencing organizational structure, culture and competence in light
of facts gleaned from the organization.
4. HR system – This article covers findings and recommendations
relating to HR planning, recruitment, selection, compensation,
performance management, training and development, various HR
efforts to heighten organizational competitiveness and employee
satisfaction. The contents should be based on data collected and
analysed.
5. Recommendation – Report should outline the findings and
suggestions for improving HR development policies, programmes,
practices and strategies of the organization.
 15

4.2 – HR Audit Process

 16

CHAPTER 5 -- COMPLIANCE HR
AUDIT

25
 17

5.1 - Introduction

The Compliance HR Audit is conducted as required by Section 27(g) of the

Civil Service Act of Bhutan 2010 which states that “The Royal Civil Service
Commission as the central personnel agency of the Government shall conduct
periodic HR auditing across all agencies”. The main objective is to ensure
compliance and uniform application of provisions of the CSAB 2010 and
BCSR across the Civil Service; and to ensure effective and efficient utilization
of civil servants.
The Auditing exercise identifies gaps, limitations and appropriate
interventions are recommended. Good practices of the Agency if any are also
highlighted. The first HR auditing started in 2013 covering all areas of
decentralized HR actions across the Civil Service. However, in future if the
Agency is being audited for the second time, the area will be determined by
the HR Audit. Further, where there is a proper system in place and HR action
are captured in Civil Service Information System the frequency of HR
auditing will be lesser.
HR auditing shall be carried out after a minimum of two years in the
Ministries; three years in the Dzongkhags; and five years in Autonomous
agencies.
26
 18

5.2 - Broad process for Compliance HR Audit

Agency
identified as
per the five
Follow up year work plan
with the Inform Agency one
Agency on month prior to
the HR Auditing
actions taken
after six
months

Send the
final report Conduct
and HR
communicat Audit
e major
observations

Prepare draft
audit report
Submit audit and present to
report to
Commission with Agency HRC
recommendations

Receive Send draft

and review report to
Justificatio Agency for
n from the Justificatio
Agency n (one
month)

27
 19

5.3 - Areas of Compliance HR Audit

1.Regular Recruitment, Selection and Appointment (S1 and Below)

2.Contract Recruitment
3.Recruitment of General and Elementary Service Personal
4.Decentralized promotion
5.Open Competition
6.Short term training (STT)
7.Extraordinary Leave
8.Intra- Agency Transfer (Relieving date and Transfer Criteria)
9.Separation
10.Human Resource Utilization
11.Disciplinary action
12.Minutes of the Human Resource Committee Meeting

28
 20

5.4 - List of Activities

Master List of reports from RCSC

1. List of Civil Servants promoted and open competition

2. List of Civil Servants undergoing long term training
3. List of Civil Servants recruited on regular and contract
4. List of Civil Servants who availed short term training
5. List of Civil Servants on Extraordinary Leave
6. List of Civil Servants who have resigned (Voluntary Resignation, Compulsory
retirement, Early retirement scheme and Superannuation)
7. List of Civil servants separated but existing
8. List of Civil Servants imposed Administrative action
9. List of Civil Servants on secondment
10. List of existing civil servants in the Agency from CSIS
11. Position Directory (2009, Oct 2012, Dec 2012 & the latest PD)
12. BCSR 2010, BCSR 2012 and BCSR 2018
13. Approved 10th and 11th FYP staffing
14. Approved standard for GSP/ESP if any

29
 21

CHAPTER 6 -- HR Audit Report writing

Introduction
As required by Section 27 (g) of the Civil Service Act of Bhutan 2010 which states that “The Royal Civil
Service Commission as the central personnel agency of the Government shall conduct periodic HR
auditing across all agencies”. Accordingly the RCSC has audited (Agency name) from (Date till (Date).
The main objective is to ensure compliance and uniform application of provisions of the CSAB 2010,
BCSR across the Civil Service and also to ensure effective and efficient utilization of civil servants.
The Auditing exercise identifies gaps, limitations and appropriate interventions are also recommended.
but good practices of the Agency if any are highlighted Compliance auditing for a period of …..years was
carried out from May 2011, the period CSAB 2010 was enacted to day/month/year.

Areas of Auditing
Compliance HR audit was carried out for decentralized HR actions such as Staffing plans and
implementation; Human resource development and implementation; Utilization of human resources;
Recruitment, Selection and Appointment process; Mismatch in the Position title and Job assignments;
Individual Work Plan; Promotion; HR Committee Meeting minutes; Transfer; Leave; Administrative
disciplinary procedures, decisions
and implementation; Separation; Work conditions/environment; Civil Service information and records;
and Any other HR related matters.
30
Methodology
Following methods were used to do the compliance audit in Punakha Dzongkhag:
1.Evidence based approach
2.All HR action taken as per BCSR 2010 & 2012
3.Civil Service Act of Bhutan 2010
4.RCSC approval
5.Approved staffing
 22

6.1 - HR Audit Observations

Introduction
As required by Section 27 (g) of the Civil Service Act of Bhutan 2010 which states that “The Royal Civil Service
Commission as the central personnel agency of the Government shall conduct periodic HR auditing across all
agencies”. Accordingly the RCSC has audited (Agency name) from (Date till (Date). The main objective is to ensure
compliance and uniform application of provisions of the CSAB 2010, BCSR across the Civil Service and also to
ensure effective and efficient utilization of civil servants.

The Auditing exercise identifies gaps, limitations and appropriate interventions are also recommended. But good
practices of the Agency if any are
highlighted Compliance auditing for a period of ….. years was carried out from May 2011, the period CSAB 2010 was
enacted to Day/month/year

Areas of Auditing
Compliance HR audit was carried out for decentralized HR actions such as Staffing plans and implementation; Human
resource development and implementation; Utilization of human resources; Recruitment, Selection and Appointment
process; Mismatch in the Position title and Job assignments; Individual Work Plan; Promotion; HR Committee
Meeting minutes; Transfer; Leave; Administrative disciplinary procedures, decisions and implementation; Separation;
Work conditions/environment; Civil Service information and records; and Any other HR related matters.

Methodology
Following methods were used to do the compliance audit in Punakha Dzongkhag:
31
1.Evidence based approach
2.All HR action taken as per BCSR 2010 & 2012
3.Civil Service Act of Bhutan 2010
4.RCSC approval
5.Approved staffing
 23

CHAPTER 7 -- STRATEGIC HR
AUDTING

32
 24

7.1 - Introduction
Strategic HR Audit aims to strengthen HR Division/Services by being proactive and
examining cross cutting HR issues. HR interventions beyond HRO’s job description
are also made to enhance HR service delivery and ensure civil servants feel valued. In
the process, capacity of HR Officers’ are also built through in-house training and by
involving them in carrying out strategic HR Auditing.

The methodology currently used is “Design Thinking” whereby, following activities

are carried out to get an insight of the user need and to understand the strength and
weakness of the current HR systems and process.

1.Interviews
2.HR Audit Survey
3.Co-creation of recommendation
4.Recommendations and feedbacks.

In the process the capacity of HROs’ are also built since the concerned HR Officers of
the Agencies’ are fully involved in the strategic HR Auditing, from the conduct of
interviews to co-creation and presenting the recommendation to the Agency.
The recommendations made are quick wins which are very much implementable
within the HR Division and at Agency level.

33
 25

7.2 - List of activities

SR.
NO List of Activities for strategic Auditing
1 Data base of staff for HR Audit Survey
Log book analysis and HR requirement of HR Division/Section (to be circulated
2 prior to 1 month)
3 List of focal person by names for Programs and Projects (If required)
4 List of interviewee (Staff, HROs of the Agency and HRC members)
5 Presentation on interview to the interviewers
6 Conduct Interview
7 Outline the HR Internal Process by HROs
8 Outline External process by the Audit team in consultation with the HROs
9 Training of HROs and Admin. Asst. on Pivot table
10 HR Google calendar by HROs
11 HRO to present on the reform and HR internal process to Admin. Asst. and Audit
Team
12 Transcribing verbatim
13 Co-creation
14 Office Order standardization if required
15 Assessment on the staff requirement based on the log book
Prepare draft report presentation on issues and recommendations. Agency HROs
16 make
the presentation to the Agency staff (interviewee to be included)
17 HR Audit team to present the draft report to the Agency HRC and Commission.
18 Finalize the HR Audit report.

34
 26

7.3 - Process for Strategic Auditing

Assign one HR
audit team
member as
focal for
Finalize the Strategic HR
Auditing HR Audit
HR audit
Survey
report

HRD staff
Submission to
maintain
Commission
daily log
for approval
book

Outline
Send draft
external
report to
and Internal
Agency
HR process

Presentation Conduct
Agency HRC Interview

Presentation of
Transcribing
draft report to
verbatim
Agency's staff
Co-creation of
Ideas

35
 27
HR Audit Survey
Strategic Auditing: HR Audit Survey
HR Audit survey is carried out to check on the status of the five key roles of the HR
Officers. It also gives an insight to issues the Civil Servants have encountered during their
service.
List of required documents for verification
RCSC From the Agencies
√ List of Civil Servants
√ HR Audit survey questionnaire √ List of Civil Servants as per the sample
size with email

Process

1 Statistical Officer to insert the HR Audit questionnaire using the Google form
Based on the list of civil servants from the Agency, Statistical Officer to generate the
2 sample size for HR Audit Survey

3 The sample size to be shared with the Agency HROs to insert their emails as per
Annexure 2.
The HR Audit team leader to send the request for HR Audit Survey. The timeline for
4 the survey is for a period of one month.
The analysis of the survey shall be carried out by the Statistical Officer based on the
5 five key roles of HRO. The feedback from the open-ended questions should be used
along with HR findings from the interview.
36
 28

Log book

Strategic Auditing: Logbook format

Maintain logbook activity by HR Division/Section staff for a period of one
month to help the Audit team to understand the functioning of the
Division/Section and determine additional human resource requirement.
List of required documents for verification
RCSC From the Agencies
√ Logbook format.

Process
HR Audit to share the logbook with HR staff on Google docs prior to
1 one month of auditing
Logbook to be maintained for a period of one month from the day the
2 logbook is shared.
HR Audit team to carry out the workload assessment of existing staff in
3 HR Division/Section as per the logbook and observation made during
the auditing period. Accordingly make recommendation.

55
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Reports

HRM HRD

Annual
Recruitment STT
(Regular) (6mm)

Superannuation
Age (Date of
Birth)

“Excellence in Service”

Conditional Formatting

Select Select
Select
data in Highlight duplicates
cell rules
excel values

Select
Click Home Conditional
Tab formatting

“Excellence in Service”

38
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Strategic HR Audit Report template

Strategic HR Auditing: Streamline the functioning of HR Division as per the

need of …….. Staff

HR Auditing was carried out from ................. till ...................... As per Commission's
directive, in addition to compliance Audit, strategic HR Audit to streamline the
functioning of HR Division as per the need of ........... staff was carried out. The report
is divided into four parts: The first column consists of list of HR findings/issues
extracted directly from interviews and survey; Second column consists of overall
recommendations based on the issues; the third column shows the approving authority
for implementation of each recommendations made which is followed by the remarks
from the Agency on the implementation status of recommendations.
1 Streamline the functioning of HR division as per the need
of the staff
Objective:
2 Build capacity of the HR Officers
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1HR Audit Survey (Sample size …………...)

Interviewed: …….. Number of civil servants (Executive -
2 ……...; Specialist (ES)- …….;
Methodology: Professional & Management category -……..;
Supervisory & Support category - …..)
3 Co-creation of ideas with HROs and ………… (Insert
Agency Name) staff
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Conclusion

A Human Resource audit can be used as a measure to evaluate the

personnel activities of an organization. It gives feedback about the HR
functions to operating managers and HR specialists. It also provides
feedback about how well managers are meeting their HR duties. In
short, the audit is an overall quality control check on HR activities in a
division or company and an evaluation of how these activities support
the organization’s strategy. HR Audit can be performed through the
measurement of the effectiveness of the HR functions of an
organization which can be used to measure the performance that
employees are giving to the organization and also measuring the level
of satisfaction that the organization is able to provide its personnel.
HR Audit is involved with the human assets of the company that
emerges in the balance sheet by way of checking, investigating and
assessing the diversified data and values based on the approximated
figures of the human resources.