Hr audit project pdf

Report This Question. In an organization the HR department can perform an audit in-house. But there are various challenges that the process of HR audit poses such as 1. Department must possess the expertise 2. Time to perform the audit 3. Ability to be objective in acknowledging discrepancies in current procedures 4.

Ability to make organizational changes. Some other option to follow some stricter audit protocols and hire external legal counsel to conduct the audit. There are some organizations, which may be beneficial to have an outside consultant who has no personal stake perform the audit. The various principal points in an HR audit are - 1.

Fair Labour Standards Act Compliance 2. Disability Accommodation 3. Are they ready to fix whats broken, even if it costs highly? Do they agree with the methodology?

Before you begin the audit process 3. Define the parameters. Who will be audited? What do you want to audit? What audit tools will you use? How will the process be rolled out?

How will results get reported? Who will get the results? Auditors The following are the likely auditors who can use this system: 1. External Auditors 2. Internal Auditors 3. Internal Team of auditors consisting of HR specialists 4.

Who is an Auditor? An auditor is a person who is specially trained in HR Audits. A trained HR auditor has the following knowledge, attitude and skills: 1.

A thorough knowledge of various HR systems, their objectives, relevance, functioning and various benchmarks available. Knowledge of the principles of human development and growth. Knowledge of the role of line managers, and appreciation of roles played by top management and their styles. Knowledge of various assessment models, methods, tools and techniques. Assessment skills in terms of skills in observation, questionnaires, use of secondary data, and interviews.

A positive attitude to audit an attitude to view audit as an empowering tool and not a faultfinding tool. Communication skills in terms of presenting audit reports verbally, or in writings, etc. Identify who is responsible for each activity. Determine the objectives sought by each activity. Review the policies and procedures used to achieve these activities. Prepare a report commending proper objectives, policies, and procedures.

Develop an action plan to correct errors in each activity. Employees and managers comments help the audit team find that need improvement. Another useful source of information is the exit interview.

Exit interview are conducted with departing employees to learn their views of the organization. Contd 2.

Through questionnaire surveys, a more comprehensive picture of employee treatment can be developed. Questionnaire may also lead to more candid answers than face-to-face interviews.

Employee attitude about supervisors. Employee attitude about their jobs. Perceived effectiveness department. Contd 3. Sometimes insight can be obtained by an analysis of historical records, such as: -. Contd 4. Through Department of Labor, industry association, professional association numerous statistics and report are compiled. These organizations regularly publishes information about future employment opportunities, employee turnover rates, work force projection, area wage and salary survey, work force demography, accident rates, and other data that can serve as benchmark for comparing internal information.

Scorecard grading These four indices consist of the four pillars of HRD effectiveness. All the four dimensions are assessed using following ten point rating system. HR Audit Significance: 1. Essential for Organization success. It Provides Required Feedback. Managing Rising Labor Costs. HR Audit can avoid Government intervention 6. Change Philosophy of Management towards HR 3.

How various units are functioning? Formulate Plan for corrections 8. Objectives: 1. Effectiveness: To review performance of Human resource Department and its activities to determine effectiveness. Rectification: To take corrective steps to rectify mistakes, shortcomings contesting effective work performance of HR Department. Benefits of HR Audit: 1. Identifies contribution of HR Department. Identifies Critical personnel problems. Ensures Timely Legal Compliance Requirements. Reduces HR Costs Pitfalls of HR Audit: 1.

Full audit may be time consuming 2. May not be as objective and impartial as desired 3. Impact of certain actions may not be clear Employee Turnover 2. Absenteeism 3. Safety Records 4. Planning - Forecasting, 2. Scheduling; 3. Organizing; 5. Administration ; 7. For each activity in the HR Audit functions Auditors must: 1 determine objective of activity.

Do your HR audit processes meet all the requirements of our six-step HR audit checklist? Determine the scope: The first step of conducting an HR audit is to determine the scope of the audit. If an HR audit has never been conducted, a comprehensive review of all policies and procedures is recommended. Going forward, businesses may choose to conduct audits that focus on specific HR functions, such as payroll or record keeping. Develop a plan: The next step is to develop a plan for conducting the audit.