. HR AUDITPRESENTED BY 1. SUYOG LOHAKARE (03)2. KIRTI CHOUKIKAR (20)3.

SHIVANGI SAIN (45)4. AKSHAT MANDLOI

2. Human Resource Audit is a systematicassessment of the strengths, limitations,and
developmental needs of its existinghuman resources in the context oforganizational performance
(Flamholtz,1987)
3. LAYOUT1. Objectives2. Purpose3. Types4. What does an audit entail5. Approaches6.
Auditing process7. Challenges for HR department Dave Ulrich8. Auditing methods9. Case Study10.
Conclusion
4. OBJECTIVES OF AUDIT1.The audit itself is a diagnostic tool, not a
prescriptiveinstrument2.It will helps to identify what you are missing or need toimprove, and it may
even tell you what you need to do toaddress these issues.3.It is most useful when an organization is
ready to act onthe findings, and to evolve its HR function to a level whereits full potential to support the
organizations mission andobjectives can be realized.
5. Purpose of audit1.To examine and pinpoint strength and weaknesses related to H.R.areas
and Skills and Competencies to enable an organization toachieve its long-term and short-term
goals.2.To increase the effectiveness of the design and implementation ofhuman resource policies,
planning and programs.To help human resource planners develop and update employmentand
program plans.3.To insure the effective utilization of an organizations humanresources.4.To review
compliance with a myriad of administrative regulations.5.To instill a sense of confidence in
management and the humanresources function that it is well managed and prepared to meetpotential
challenges.6.To maintain or enhance the organizations and the departmentsreputation in the
community.7.To perform a "due diligence" review for shareholders or potentialinvestors/owners.
6. compliancefunction specific TYPES Best practice Strategic
7. WHAT DOES AN HR AUDIT ENTAIL ?1.Legal compliance2.Compensation/Salary
Administration3.Employment/Recruiting4.Orientation5.Terminations6.Training and
Development7.Employee Relations8.Files/Record Maintenance/Technology9.Policies and
procedures(including employeehandbook)
8. APPROACHES: Approaches to Human Resources AuditProf. K. Aswathappa has identified
the following approaches, which are adopted for purpose of evaluation: Comparative approach
Outside authority approach Statistical approach Compliance approach Management by objectives
(MBO) approach
9. What we infer from these approaches?? The main functions of humanresources audit are
to take specific actions thatwill help minimize employee turnover orientationtraining, working
conditions, remuneration andbenefits and opportunities for advancement. Therefore, quality of
turnover is moreimportant than the quantity of people leavingand joining the industry. Human
resourcesmanagement should create a work environmentto make employee realize that it makes a
sense towork in the factory rather than staying at homeand waste their time.
10. AUDITING PROCESS: STEPS IN H.R. AUDIT STEP ONE: Briefing and Orientation STEP
TWO: Scanning material information STEP THREE: Surveying employees STEP FOUR: Conducting
interviews: STEP FIVE: Synthesizing STEP SIX: Reporting
11. CHALLENGES FOR H.R. DEPARTMENT EIGHT CHALLENGES IDENTIFIED BY DAVE
ULRICH (1997)1. Globalization The H.R department will need to create models and processesfor
achieving global activeness, effectiveness and competitiveness.2. Managing the Value Chain for
Business Competitiveness.Innovation Faster Decision MakingPrice or Value AdvantageEffective
linking with Suppliers3. Growth of the organization By increasing customer, acquisition and mergers.
12. 4. Building organizational capabilities Reviewing existing capabilities New capabilities
Aligning new capabilities with business strategies.5. Managing Change Adopting some new H.R.
Practices Learning some New Skills and Attitudes Unlearning some existing skills and Attitudes.
13. 6. Making Technology viable Finding out ways and means to make
technologysuccessful.7. Attracting and Retaining Intellectual Capital Attracting Talented People.
Retaining them. Utilizing them suitably.8. Transforming the Organisation Creating fundamental and
lasting changes.
Validate audit findings and exceptions Gather evidence and verify findings Assess the
strength and weaknesses of the management systems and procedures Develop an understanding of
the management system and procedures14. GENERAL AUDITING METHOD
15. METHODS OF HR AUDITINDIVIDUAL INTERVIEW METHODGROUP INTERVIEW
METHODWORKSHOP METHODQUESTIONNAIRE METHODOBSERVATIONANALYSIS OF
SECONDARY DATAANALYSIS OFREPORTS, RECORDS, MANUALS ANDOTHER PUBLISHED
LITERATURE
Getting sensitive information pertaining toworking styles and culture Knowing about their
expectations from the HRaudit Knowing their thinking about future plans andopportunities available
for the company16. INDIVIDUAL INTERVIEW METHOD Top level management and senior managers
are interviewed, individually. It helps in following:
17. GROUP INTERVIEW METHODGroup interviews and discussionswith the employees and
executivesof large companies for HRaudit, facilitate collection ofinformation about effectiveness
ofexisting systems.
What do you think are the ways in which line managers can performmore developmental
roles? What changes do you suggest to strengthen HRD in your company?What is weak about
them? What can be improved?What is good about your HRD subsystems, such as:
performanceappraisal , career planning, job rotation, training, qualitycircles, induction training,
recruitment policies, performancecounseling, worker development programmes, and HRD
departments?What are the areas where your HRD function can do better? What are the strengths
of your HRD function? What skills and competencies do you need to run your business, orto perform
your role, more effectively at present? What skills and competencies does the company have which
you areproud of? What do you see as the future growth opportunities and businessdirections of the
company?18. RELEVANT QUESTIONS THAT ARE ASKED IN INDIVIDUAL AND GROUP
INTERVIEWS :
19. WORKSHOP METHODWorkshop Methods also known as Large Scale Interactive
Process(LSIP) is conducted in some cases of audit.
20. QUESTIONNAIRE METHODFeed back about various dimensions of HRD, including
thecompetency base of HRD staff, the styles of linemanagers, the implementation of various HRD
systems, etcare obtained through a detailed questionnaire fromindividuals or groups for HR audit.This
method helps in benchmarking.
21. OBSERVATIONo The auditors should physically visit the workplaceo To assess the extent
to which a congenial and supportive human welfare oriented climate exists in the company.o This is
essential because employees are not likely to give their best if they do not live in good surroundingso
The observations can be conducted using a check list of questions.
Analysis of age profiles of the employees, analysis of the training attended, analysis of the
minutes of the meetings held etc., help in determining the assets and liabilities. Analysis of
secondary data can give an insight into the HRD assets and liabilities of the company.22. ANALYSIS
OF SECONDARY DATA
23. ANALYSIS OF REPORTS,RECORDS, MANUALS AND OTHER PUBLISHED
LITERATURE Published literature of the company including annual reports, marked hand-outs,
training calendar personnel manual, and various circulars issued from time to time are also likely to
help immensely in assessing the strengths and weaknesses of HRD.
24. IT SECURITY AUDITING CASE STUDY
25. Steps of An IT Audit1. Planning Phase2. Testing Phase3. Reporting Phase
26. PLANNING PHASE Entry Meeting Site Survey Define Scope Review Current Policies
Learn Controls QuestionnairesHistorical Incidents Define Objectives Past Audits Develop Audit Plan /
Checklist
27. Testing Phase1.Meet With Site Managers2.Data Collection3.Types of Data
28. REPORTING PHASELong Report After Going Through Data Intro defining
objectives/scope How data was collected Summary of problems Table format Historical data (if
available) Ratings Fixes In depth description
29. PREPARING TO BE AUDITED This Is NOT a Confrontation Make Your Self Available
Know What The Scope/Objectives AreKnow What Type of Data Will be Collected Know What Data
Shouldnt be Collected
30. CONCLUSIONAudit will give all the necessary information required about finance and
performance of the employees planning phase is very important. Employees should be available for
testing phase Reports should focus on in depth description of problems