HUMAN

RESOURCE
AUDIT
BY :- MUKUL GARG
2308/23
BCOM PROG. (F)
 1 INTRODUCTION

AUDITING OF POLICIES
2
AND PRACTICIES
Agenda
Topics Covered 3 HR AUDIT PROCESS

DIFFICULTIES IN HR
4
AUDIT
WHAT IS HR
AUDIT?
An HR audit is an objective examination of
your business's HR policies, practices, and
procedures. .
 AUDITING OF POLICIES AND
PRACTICES?
HR audit is used to check that the policies and procedures of an
organization are properly implemented and followed by the
organization and its employees.

For this reason, the organization lay certain rules that act as a standard
for the organization. If for some reason the implementation of the rules
is not properly monitored by the organization then in such a case
organization cannot blame its employees.
 Measure the Effectiveness of Policies and
Procedures
Once the policies and procedure are successfully implemented then comes the role of
management to ensure the efficiency and effectiveness of the policies.

For any reason, if the current policies are not as per the expectation of the
management or not contributing towards the growth of the organization, then the
management can modify the policies at any time for the betterment of the
organization and its employees. But the policies must match with a previously laid
down standard.
 • IDENTIFYING INDICATORS
• EXAMINE THE VARIATIONS
• COMAPRING AND
HR AUDIT EXAMINING VARIATIONS
BETWEEN DEPARTMENTS
PROCESS • DRAWING TREND LINES
• PREPARING A DETAILED
REPORT
 Identify Indicators

The first step in HR audit is to identify the indicators. This is the

preparatory step in auditing process. Here particular issues regarding the
skills, styles, systems, strategies and structures of the organization are
discussed.

Necessary data is also collected for the audit purpose; the various indices,
statistical ratios and gross numbers are identified as per the requirement.
 Examine the Variations

This is the next step after identifying the indicators. Under this
step scrutiny of all available information pertaining to personnel
will be taken into account.

A similar previous corresponding period is taken into account,

the performance is judged on the basis of the indicators decided
and any variation between the results in the two time frames is
examined.
Comparing and Examining Variations
between Departments
After examining the deviations a comparison is made.
These deviations are compared between different
departments and between similar units in the other
industries. These deviation will help the organization to
correct the process of auditing if the need arises.
 Drawing Trend Lines
After the measurement and comparison with the other
departments the organization is able to derive a trend that
exists and would analyze and depict it in the form of trend
lines, frequency distributions and statistical correlations.
 Preparing a Detailed Report
The last step involves the finalization of report. This
final report contains the detailed information about
the audit of the organization. This report is submitted
to the top management and to the managers at suitable
levels for information . Necessary action is taken
thereafter.
 DIFFICLUTIES IN HR AUDITING

• Lack of a Clear Audit Plan: Without a well-defined scope and clear

objectives, an HR Audit can become a disorganized and inefficient process.

• Insufficient Knowledge of Legal Requirements: Keeping up with ever-changing

employment laws can be daunting. Falling short in this area can lead to non-
compliance and potential risk.
• Time Constraints: HR audits can be time-consuming, especially when juggling other
responsibilities. This can lead to rushed audits that fail to uncover important issues.

• Resistance from Staff: Audits can cause anxiety among employees due to fear of
scrutiny or change. This can result in resistance or lack of cooperation during the
audit process.

• Biased Perspective: Internal audit teams may overlook issues due to familiarity or
internal politics. This can result in a less effective audit.