human resource management audit

8/3/2019 Human Resource Management Audit

1/15


2/15

Topics to be coveredy Introduction to Human Resource Management Audit.

y Objectives of HRM Audit.

y Benefits of HRM Audit.y Scope of HRM Audit.

y Process of HRM Audit.


3/15

Introduction of HRM AuditThe term audit' has been derived from Latin word

auditus meaning hearing. Thus audit is hearing of

review resulting in a systematic evaluation.

Meaning of audit in accounting term is the verification

of accounting data for determining the accuracy and

reliability of accounting statements and reportsFrom accounting this concept has been used in

Management audit and Social audit .


4/15

Introduction of HRM

Audit.contd.In Management audit it is divided into two Parts :

(a) one is the management function audit covering

planning,organizing,staffing directing, and controlling.

(b) the other is a management decision audit dealing

with the quality of decision in the areas of long range

and company wide planning covering various functions-Marketing,production,personnel,accounting,and

Finance .


5/15

Definition of Human Resource

Management AuditIn the context of HRM it ay be defined as the

systematic examination and evaluation of

policies, procedures, and practices to determinethe effectiveness of human resource

management

Thus HRM Audit is concerned with the

evaluation of effectiveness of various HRM activities

with the view to identify what should be (or should not

be )done in future in the light of such an evaluation.


6/15

Objectives of HRM Audity to evaluate the total HRM programmes in the light of

the organizational objectives and programmes and

the objectives of HRM;y To seek explanation and information on such

questions as what happenedand why did it happen;

y To evaluate the extent to which line managers have

implemented various HR policies and programmes

that have been developed and initiated;and

y To evaluate total performance of HR department.


7/15

Process of HRM Audit

Coverage

of HRMAudit

Appointme

nt ofauditor

Specificati

on ofstandard

Collection&

evaluationof

information

Preparatio

n ofReport


8/15

Benefits of HRM Audit

HRM

Objective

Organizat

ionalobjective

HRM

activities

HRM

Outcome

HRM

Audit

feedback


9/15

Benefits of HRM Audit..contd.Werther and Davis have identified the following benefits of HRM

Audit:

yIdentification of the contribution of the HR department to theachievement of the organizational objective;

y Improvement of the professional image of HR department;

y Encouragement of greater responsibility and professionalism

among members of the HR department;y Clarification of HR department duties and responsibilities;

y Finding critical human resource problems;

y Ensuring timely compliance with legal requirement.


10/15

Scope of HRM Audity HR strategies and policies ,

y HRM Functions

y HR compliance, and

y HR climate.


11/15

HR strategies and policiesy Consistency with organizational objectives ,

strategies and policies;

y Consistency with the environment;y Appropriateness in the light of organizational resources;

y Workability.


12/15

HRM Functionsy The type of HRM functions performed;

y The degree to which these function are related to HRM

objectives; andy The degree to which these functions are performed effectively.


13/15

HR compliancey The extent to which line personnel adhere to various HR policies

in dealing with personnel working under them; and

y The extent to which there is compliance with legal requirementsas provided under various legal Acts relevant for management

of Human Resources.


14/15

HR climatey Degree of employee turnover;

y Degree of employee absenteeism;

y Degree of accidents;y Status of grievances and disciplinary actions; and

y Findings of attitude and morale surveys.


15/15

Thank you

human resource management audit

Documents