lOMoARcPSD|14917863
, lOMoARcPSD|14917863
MBA
HUMAN RESOURCE MANAGEMENT
SEM : 3
HR AUDIT
The HR Audit Process
Downloaded by Vijayalakshmi Ps ()
, lOMoARcPSD|14917863
Introduction
In the last unit you learnt about various areas of human resource audit such as audit of HR planning,
audit of HR development, audit of training and so on. In this unit, you will study the processes that are
followed for conducting HR audit. An audit procedure helps the company to assess whether the Human
Resource (HR) function at business unit (BU) level is delivering its mandate and roles. The methodology
that drives the audit is based on four key principles advocated by Dave Ulrich, a leading HR consultant
and teacher, and his associates in the USA.
HR review includes inspecting and exploring the association's current arrangements, techniques and
works on in regards to enrollment and choice, direction and situation, preparing and advancement,
work examination and configuration, work assessment, pay, confidence and inspiration, representative
wellbeing and security, social government assistance.
A human asset review is likened to an interior interaction review. Basically, it resembles giving your
human asset division a report card of how viable it is. Running a review of your HR division additionally
gets areas of rebelliousness to diminish the gamble for the business.
Their cutting-edge research and consulting work has shown that worthy HR professionals should ensure
the following:
1. There is availability of line manager friendly systems, and procedures to help the management
execute their people management role (i.e., the technical-professional and service role of HR);
2. The line management is working within the frameworks of various labour relations laws and
codes of conduct that govern the relationship between labour and management in the
workplace (the compliance role of HR);
3. In each business unit there is an overall people management (HR) strategy in place that
increases the value of employees to the business (the strategic role of human resources);
4. The various HR systems and procedures run at optimal cost (financial management role of
human resources). Please do not read optimal as lowest cost, but as the right price for the job
on hand.
For an organization to accomplish consistent development and acknowledge wanted efficiency
levels, it should adjust its exhibition measures with its general business targets. A HR review will
survey the viability of an organization's presentation measures, empowering it to change them
for expanded efficiency.
Downloaded by Vijayalakshmi Ps ()
, lOMoARcPSD|14917863
These assumptions can be translated into four major roles that HR professionals must play to make a
real contribution to the success of a business. In this unit you will go through the details of the various
steps initiated for conducting HR audit. Look at Figure 8.1 for understanding the various steps of the
audit process.
Figure 8.1: HR Audit Process
Objectives:
After studying this unit, you should be able to:
• discuss the various HR functions required for conducting audit.
• list the various steps of HR audit process.
• state the questions in respect to different functions of HR for conducting HR audit.
• tell the steps to be followed after the audit.
Downloaded by Vijayalakshmi Ps ()
, lOMoARcPSD|14917863
MBA
HUMAN RESOURCE MANAGEMENT
SEM : 3
HR AUDIT
The HR Audit Process
Downloaded by Vijayalakshmi Ps ()
, lOMoARcPSD|14917863
Introduction
In the last unit you learnt about various areas of human resource audit such as audit of HR planning,
audit of HR development, audit of training and so on. In this unit, you will study the processes that are
followed for conducting HR audit. An audit procedure helps the company to assess whether the Human
Resource (HR) function at business unit (BU) level is delivering its mandate and roles. The methodology
that drives the audit is based on four key principles advocated by Dave Ulrich, a leading HR consultant
and teacher, and his associates in the USA.
HR review includes inspecting and exploring the association's current arrangements, techniques and
works on in regards to enrollment and choice, direction and situation, preparing and advancement,
work examination and configuration, work assessment, pay, confidence and inspiration, representative
wellbeing and security, social government assistance.
A human asset review is likened to an interior interaction review. Basically, it resembles giving your
human asset division a report card of how viable it is. Running a review of your HR division additionally
gets areas of rebelliousness to diminish the gamble for the business.
Their cutting-edge research and consulting work has shown that worthy HR professionals should ensure
the following:
1. There is availability of line manager friendly systems, and procedures to help the management
execute their people management role (i.e., the technical-professional and service role of HR);
2. The line management is working within the frameworks of various labour relations laws and
codes of conduct that govern the relationship between labour and management in the
workplace (the compliance role of HR);
3. In each business unit there is an overall people management (HR) strategy in place that
increases the value of employees to the business (the strategic role of human resources);
4. The various HR systems and procedures run at optimal cost (financial management role of
human resources). Please do not read optimal as lowest cost, but as the right price for the job
on hand.
For an organization to accomplish consistent development and acknowledge wanted efficiency
levels, it should adjust its exhibition measures with its general business targets. A HR review will
survey the viability of an organization's presentation measures, empowering it to change them
for expanded efficiency.
Downloaded by Vijayalakshmi Ps ()
, lOMoARcPSD|14917863
These assumptions can be translated into four major roles that HR professionals must play to make a
real contribution to the success of a business. In this unit you will go through the details of the various
steps initiated for conducting HR audit. Look at Figure 8.1 for understanding the various steps of the
audit process.
Figure 8.1: HR Audit Process
Objectives:
After studying this unit, you should be able to:
• discuss the various HR functions required for conducting audit.
• list the various steps of HR audit process.
• state the questions in respect to different functions of HR for conducting HR audit.
• tell the steps to be followed after the audit.
Downloaded by Vijayalakshmi Ps ()
