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HUMAN RESOURCE AUDITING

SUBMITTED BY:PUNEET GARG MBA-IB(1ST SEM.) 12382MAO64

FLOW OF PRESENTATION
Meaning of HR Audit Objectives of HR Audit Need for HR Audit HR Audit Process Benefits of HR Audit

Meaning of HR Audit
HR Audit and reports provide information regarding the utilization of human resources in an objective way. A critical evaluation of manpower programs might be required to find out the areas where improvements are needed and to set things in order. In place of informal impressions gathered and summarized through records and reports, a systematic and analytical search is made to find out the effectiveness of personnel management.

HR Audit covers basically 3 things:


1. Measurement and evaluation of personnel programs, policies and practices. 2. Identification of gap between objectives and results. 3. Determination of what should or what should not be done in future.

Objectives of HR Audit
To review the organizational system and subsystem. To find out the effectiveness of various personnel policies and practices. To know how various units are functioning. To review the personnel system in comparison with organizations.

Need for HR Audit


Increasing

size of the organization and personnel in several organizations. Changing philosophy of management towards human resources. Increasing strength and influence of trade unions. Changing human resources management philosophy and thereby personnel policies and practices throughout the world. Increasing dependence of the organization on the human resource system and its effective functioning.

HR Audit Process
Identifying indices, indicators, statistical ratios and gross number in some cases. Examining the variations in time frame in comparison with a similar previous corresponding period. Comparing the variations of different periods and comparing them with similar units and industries in the same region. Examining the variations of different periods and comparing them with similar units and industries in the same region. Drawing trend line, frequency distributions and calculating statistical correlations. Preparing and submitting a detailed report to the top management and to the managers at appropriate levels for information and necessary action.

Benefits of HR Audit
Identifies the contributions of the HR department. Improves the professional image of HR department. Encourages greater responsibility and professionalization among members of HR department. Classifies the HR departments duties and responsibilities. Stimulate uniformity of personnel policies and practices. Find critical personnel problems. Ensures timely compliance with legal requirement. Reduce human resource costs.

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