Read about HR audit

One of the important function of management is that of control. Audit is one of the important control devices.Thus, personnel or human resource audit refers to checking the organisation’s performance in its management of human resources. It reveals how the management is doing in gelting things done through its personnel. Personnel audit is an investigative, analytical and comparative process. It undertakes a systemetic research of the effectiveness of the personnel programme. It analyses the operative functions of personnel management and if any deficiency is discovered, steps are taken to remove it.

According to Edwin B. Flippo “The personnel audit is a systematic survey and anlysis of all operative functions of personnel with a summarised statement of findings and recommendations for correction of deficiencies.”

According to Dale Yoder Personnel audit refers to
an examination and evaluation of policies, procedures and practices to determine, the effectiveness of personnel management.”

(i)It basically covers three things:
Measurement and evaluation of personnel pro-
grammes, policies and practices.

(¡¡¡)Identification of gaps between objectives and results

(iii) Determination of what should or should not be done in future.

Objectives of Human Resource
Audit

The main objectives of human resource audit are as given below:

(i )To review the system of recruitment, selection, training, development, allocation and utilisation of hu-
man resources in the organisation.

(ii) To evaluate the extent to which the personnel management policies and procedures are implemented by the various departments in the organisation

(iii) To find out any deficiencies and shortcomings in the management of human resources.

(iv) To evaluate the manpower in the organisation.Need and Significance of Human
Resource Audit It is not an obligation on the part of the management

To conduct human resource audit, as it is in the case of financial accounts. The enlightened management uses it as a tool for managerial control of the human resource programmes and practices. In recent years, the need for human resource audit has increased due to the following reasons:

1.There has been a change in the philosophy of management. Workers participation and identification in the activities of the organisation is being regarded as a powerful influence for the success of the organisation. This changed philosophy has recognised the need for human resource audit.
As an organisation grows, continuous feedback is required to improve the performance of the personnel. This feedback is provided by the human resource audit.

3.The trade unions have become very powerful in the recent years. The employment policies are now determined by the management and trade unions. The trade unions often question and criticise the management competence. All this has made it necessary to conduct human resource audit.

4. Higher labour costs and greater opportunities for competitive advantage in the management of people is another cause which compels management to conduct human resource audit.

5.Government interference in the business is increasing nowadays, in order to protect employee interest.Human resource audit can help in avoiding such intervention.

6. Human resource management is becoming more complex because of growing proportion of technical, professional and women employees. Human resource audit is essential to tackle these problems.

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