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LESSON 32:
HUMAN RESOURCE AUDIT
We have discussed the different functions of HRM. The
functions covered are HRP, job analysis and design recruitment
and selection, orientation and placement, training and development, performance appraisal, job evaluation, employee and
executive remuneration, motivation, participative management,
communication welfare, safety and health, industrial relations,
trade unionism, and disputes and their resolution. These
activities are performed in furtherance of certain societal,
functional and personal objectives.
HRM OBJECTIVES
ORGANIZATIONAL OBJECTIVES
HRM ACTIVITIES
HR AUDITS
HRM OUTCOMES
evaluated?
Are measurable selection criteria developed and used while
filling up jobs?
Do effective training and development programmes exist?
Is there a performance evaluation system that helps assess
employees?
the organisation,
Improvement of the professional image of the HR
department,
Encouragement of greater responsibility and
responsibilities,
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procedures,
Creation of increased acceptance of the necessary changes in
the HR department and
A thorough review of the departments information system.
11.271
3 points
2 points
1 point
Basically Nonexistent
0 points
I. Legal Compliance
2. Immigration reform
7. ERISA reporting/compliance
8. Family/medical leave
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MANAGING HR ISSUES
Scope of Audit
MANAGING HR ISSUES
45-59
30-
Table 26.1
Absenteeism in select industries
Prevalence of HR Audit
Audit of Managerial Compliance
This involves audit of managerial compliance of personnel
policies, procedures and legal provisions. How well are these
complied with should be uncovered by the audit so that
corrective action can be taken. Compliance with the legal
provisions is particularly important as any violation makes the
management guilty of an offence
Audit of the Human Resource Climate
The HRM climate has an impact on employee motivation,
morale and job satisfaction. The quality of this climate can be
measured by examining employee turnover, absenteeism, safety
records and attitude surveys.
Employee Turnover Employee turnover refers to the process of
employees leaving an organization and requiring to be replaced.
High turnover involves increased costs on recruitment, selection
and training. In addition, high labour turnover may lead to
disruption of production, problems in quality control, and
difficulty in building teamwork and morale.
Certain percentage of labour turnover is unavoidable. Resignation, retirement, death and transfers do take place causing
displacement in workforce. Similarly, business expansion
necessitates hiring of people.
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11.271
Employee
Satisfaction
Outside
Authority
Stastical
Compliance
Corporate Strategy
Human
Resource
Research
Evaluation
Report
MBO
Wage surveys,
Figure 26.3 shows the HR audit process. The audit covers four
areas, and, to do so, one or more strategies are adopted. The
audit is conducted with the help of data provided by HR
research. The audit report provides feed-back to the HR
department.
Job analysis,
Notes
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MANAGING HR ISSUES