PRESENTATION ON

PRESENTED BY Ajay Singh (11EC63D02) M K Sinha (11EC63D01) Bhaskara Naik S (11EC63R01)

Scope of Presentation
Introduction - Objective & function of HR Audit - Benefits of Audit Scope/Area of Audit Process of Audit Analysis Feedback on Audit Conclusion

Introduction

To Start with Few Facts

Human Resouce Audit

A Human Resources audit is a tool for evaluating the personnel activities of an industry or a company. This audit is an overall quality control check on all human resources activities in an industry and an evaluation of how these activities support the strategies of industries. An HR audit is an objective and confidential assessment of the organizations current HR policies and practices. Assessment results are used to create a roadmap with simple and effective driving directions to engage a workforce to target performance while addressing the complex, ever-changing landscape of federal, state and local laws and regulations related to employing people.

Human Resource Audit

HR audit is control mechanism for management It is the measurement of effectiveness of HR managements mission, objectives, strategies, policies ,procedures, program and activities. Determination of what should or should not be done in future. HR audit involves formal, systematic and in-depth analysis, investigation and comparision.

Objectives of HR Audit
To find out effectiveness of policies and procedures. To chect indicators of quality of leadership,motivation ,communication,effectiveness of supervision, constant development of employees and managers. Verify mission, objectives of the organisation, goals of HR deptt have achieved expected results. Evalute to the extent line managers have implemented guidelines of HRM. To provide required feedback for the growth of the organisation. Competence of management in IR is challenged by unions Review HR system in comparision to other organisations. Locate gaps,lapses , shortcomings in implementation of policies , procedures, practices and directives of HR deptt. Evaluate HR staff.

Function of HR Audit

Benefits of A Human Resource Audit

Identifies the contribution of the personnel departments to the organization Improves professional image of the personnel department Encourages greater responsibility and professionalism among members of the personnel department Clarifies the personnel departments duties and responsibilities Finds critical personnel problems Stimulates uniformity of policies and practices Ensure timely compliance with legal requirements Reduce Human Resource cost Performs due diligence for shareholders, owners, and potential investors Identifies opportunities to align HR initiatives with business strategies

Scope of HR Audit

The Scope of HR Audits covers following Areas

1. 2. Audit of Corporate Strategy Corporate Strategy concerns how the organization is going to gain competitive advantage. Audit of the Human Resource Function Audit touches on Human Resource Information System, Staffing and Development, and Organization Control and Evaluation.

3.
4. 5.

Audit of Managerial Compliance Reviews how well managers comply with human resource policies and procedures.
Audit of Employee Satisfaction needs are met. Audit of environment culture To learn how well employee

Audit of Corporate Strategy

By assessing the firms internal strengths and weaknesses and its external opportunities and threats, senior management devises ways of gaining an advantage, such as : stresses superior marketing channels, low-cost production, etc. Understanding the strategy has strong implications for human resource planning, staffing, compensation, employee relations, and other human resource activities.

Audit of the Human Resource Function

(a) Human Resource Information System -Human Resource Plans : Supply and demand
estimates; skill inventories; replacement charts and summaries. -Job Analysis Information : Job standards, Job descriptions, Job specifications. -Compensation Management : Wage, salary, and incentive levels; Fringe benefit package; Employerprovided services.

(b) Staffing and Development

Recruiting : sources of recruits, availability of recruits, employment applications. Selection : selection ratios, selection procedures, equal opportunity. Training and development : orientation program, training objectives and procedures, learning rates. Career development : internal placement, career planning program, human resource development efforts.

(c) Organization Control and Evaluation

Performance appraisals : standards and measures of performance, performance appraisal techniques, evaluation interview. Labor-Management Relations : Legal compliance, management rights, dispute resolution problems. Human Resource Controls : Employee communications, discipline procedures, change and development procedures.

Audit of Managerial Compliance

Compliance with laws is especially important. When safety, compensation, or labor laws are violated, the government holds the company responsible. If managers ignore policies or violate employee relations laws, the audit should uncover these errors so that corrective action can be started.

Audit of Employee Satisfaction

Employee satisfaction refers to an employees general attitude toward his or her job. When employee needs are unmet, turnover, absenteeism, and union activity are more likely. To learn how well employee needs are met, the audit team gathers data from workers. The team collects information about wages, benefits, supervisory practices, career planning assistance, and other dimensions of job.

Audit of Enviroment Culture

Audit process

INTERVIEWS
With employees and managers are one source of information about human resource 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.

QUESTIONNAIRES/SURVEYS
Interviews are time-consuming, costly, and often to only few people, many human resource departments use questionnaires. 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 of human resource department Management effectiveness
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MANAGEMENT
Are HR goals in line with those of the
organization? Are workweeks identified and defined? Are full-time and part-time hours defined? Are shifts defined? Is there open communication to and from the HR department?

HIRING
Do

job descriptions exist? Are job descriptions up to date? Are forms and acceptable documentation reviewed annually? Are job openings offered to current employees? Are applicant references checked? Are turnover rates monitored? Are selection processes used with reference to the Uniform Guidelines? Are all applicants required to fill out and sign an application form? Are applicants asked to voluntarily identify their affirmative action information? Are independent contractors accurately identified? If the organization has a qualifying federal contract, is there an affirmative action plan? Are forms and medical information kept separately from personnel files?

NEW EMPLOYEES
Are workplace policies in place? Do policies focus on your workplace? Are policies communicated? Are policies enforced? Is there an employee handbook? Is the employee handbook specific to your workplace? Do employee orientations take place? Are employees trained on policies and work rules? Are employees trained on discrimination issues?

WAGES AND HOURS

Are compensation levels monitored and reviewed?

Is there a formal pay structure?

Is the compensation structured reviewed regularly? Is working time documented? Are paid time off (vacation, holidays, etc) structures developed? Is the compensation plan communicated to all employees?

EMPLOYEE RELATION
Is there a system for performance evaluation? Does the system check for effectiveness of the evaluation? Is quality and quantity of work evaluated? Is performance tied to compensation? Are workplace policies flexible? Are disciplinary actions for violating workplace policies flexible? Is there a process for employees to lodge complaints? Are there a variety of individuals to whom employees may lodge complaints (supervisor, HR representative)?

WORKERS COMPENSATION
Are injuries/incidents investigated? Is follow-up remediation performed where appropriate? Is regular contact made with employees out on lost time? Is contact made with medical providers? Are insurance premiums and competitive quotes reviewed on a periodic basis? Is the workplace environment maintained with safety in mind? Are state (new and existing) requirements monitored?

HISTORICAL ANALYSIS
Not all the issues of interest to human resource audit are revealed through interviews or questionnaires. Sometimes insight can be obtained by an analysis of historical records, such as: Safety and health records Grievances records Compensation studies Scrap rates Turnover and absenteeism records Selection records Affirmative action plan records Training program records

EXTERNAL INFORMATION
Outside comparisons give the audit team a perspective against which their firms activities can be judged. 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.

Analysis Of HR Audit

 Findings of research are used to develop a picture of the organizations resource activities. These information's are compiled into a audit report. The audit report is a comprehensive description of human resource activities that includes both commendation for effective practices and recommendations for improving practices that are less effective. Audit report often contain several sections. One part is for line managers, another is for manager of specific human resource function, and the final part is for the human resource manager.

Report for line managers:

How line managers handle their duties such as: Interviewing applicants Training employees Evaluating performance Motivating workers Satisfying employee needs The report also identifies people problems. Violations of policies and employee relations law are highlighted.

Report for the HR Specialist:

The specialists who handle employment training, compensation, and other activities also need feedback. Such feedbacks are: Unqualified workers that need for training Qualified workers that need for development What other company are doing Attitude of operating managers towards personnel policies. Workers pay dissatisfaction

1. 2. 3. 4. 5.

Report for HR Manager:

It contains all the information given to both operating managers and staff specialists. In addition, HR Mangers gets feedback about Attitude of operating managers and employees about services given by HRD. A review of HRD plans. Human resource problems and the implication. Recommendations for needed changes and priorities for their implementation.

Conclusion

Thank you for your time.