Methods of Human Resource Audit

Faculty of Management Studies Banaras Hindu University

Tage Nobin Roll No- 48

Title

• Methods of Human Resource Audit

Objectives

1. To study the various methods & procedures of conducting the HR Audit.

2. To study the benefits of HR Audit.

Scope

• The study includes a detail descriptive analysis of HR Audit system.

• The study also focuses on the various methods of HR Audit.

What HR Audit is?

• Human Resource Audit is a systematic assessment of the strengths, limitations, and developmental needs of its existing human resources in the context of organizational performance.

Conducting HR Audit

• Preliminary steps:

There are two issues that must be considered before implementing a HR audit:-

1. When should the audit take place?

2. Who should conduct the audit?

Areas to Audit

• Most lawsuits can be traced to four distinct stages of the employment relationship:

1. Hiring

2. Employee Evaluation

3. Employee Discipline or Termination

4. Post-Employment

• Audit Team includes-

1. Either in-house or outside legal counsel

2. A representative from Human Resources

3. Any other individuals needed to represent a cross-section of staff functions.

Strategic HR Audit: Questionnaire

• Is there a clearly understood HR strategy?

• Are people seen as a strategic resource by senior management?

• Are there clearly understood strategies for each element of HRM?

• Does Human Resource Planning (HRP) take account of internal and external environmental factors?

• Does the personnel function have a strategic role in HRM?

Methods

1. Individual Interview Method

2. Group Interview Method

3. Workshop Method

4. Questionnaire Method

Individual Interview Method

Top level management and senior managers are interviewed, individually.

A. Knowing their thinking about future plans and opportunities available for the company.

B. Knowing about their expectations from the H.R Audit.

C. Getting sensitive information pertaining to working styles and culture.

• Union leaders, departmental heads, some strategic clients and informal leaders are also interviewed, individually.

• In case of small companies, manned by professionals, interviews can be extended with selected employees from different levels and functions.

Group Interview Method

• Group interviews and discussions with the employees and/or executives of large companies for H.R. Audit, facilitate collection of information about effectiveness of existing systems.

Composition of Group: 1. Ideally, the group should be of 4 to 8 persons. 2. Group should consists of same or similar level of employees from cross functional areas. 3. In case of large organisation, group interviews for each functional area can be conducted, separately.

Workshop Method

• In some cases of H.R. Audit, instead of Individual and Group Interviews, Workshop Methods i.e. Large Scale Interactive Process (LSIP) is conducted, as under:

A. 30 to 300 participants can be asked to gather in a room. B. They are divided in small groups. C. They are asked to work either around Systems, Subsystems or around different dimensions of HRD and do SWOT Analysis.

D. All the groups thereafter give presentations. E. The H.R. Auditor compiles the views of all groups, makes own observation, conclusions and prepares a report. F. The H.R. Auditor announces the audit results before submitting the report to top Management.

Questionnaire Method

• Feed back about various dimensions of HRD, including the competency base of HRD staff, the styles of line managers, the implementation of various HRD systems, etc are obtained through a detailed questionnaire from individuals or groups for H.R. Audit.

• This method helps in benchmarking.

• The process is as follows:

A. Detailed questionnaire is prepared by H.R. Auditor. B. Individuals or groups are asked to assemble in a room or hall are explained the objective and process of HR Audit. They are then given questionnaires. C. They submit the questionnaire, duly filled in, to the HR Auditor. D. The HR Auditor compiles the feedbacks, makes observations, conclusions and recommendations. E. Audit Results are informed to the Participants before the report is submitted to the top management.

Benefits

• Identifies the contribution of the personnel to the organization.

• Reduce human resource costs.

• Encourages greater responsibility and professionalism among members of the personnel department.

• Clarifies the personnel department’s duties and responsibilities.

• Finds critical personnel problems.