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Hr Structure
International Public Management Association for Human
Resources

Conducting an HR Audit:
How HR Can Better Measure the
Effectiveness of its Functions and
Programs?
By Judith Brown, Director of Research

International Public Management Association for Human Resources
1617 Duke Street

Alexandria, VA 22314
(703)-549-7100

http://www.ipma-hr.org

Introduction
Conducting an HR Audit---How HR Can Better Measure the Effectiveness of its
Functions and Programs
By Judith Brown, Director of Research
Redefining the role of HR
The historical role of Human Resources has changed dramatically since its inception in the early 1900s. What began as a primarily clerical function is now a strategic partner in planning and attaining organizational policies and goals. Today’s business climate puts the onus on the HR department to accept the challenge of doing more with less, while contributing value toward business objectives. Human resources also has to address the rapidly changing conditions affecting the type of employees required and their changing needs, so the function requires flexible and knowledgeable practitioners. HR strategic planning has become an integral part of doing business and it is important that human resource professionals be both professionals in the field and competent business persons.
In order to walk the talk of being a “business partner,” HR managers have to provide real evidence that they are having a strategic business impact. Management is often asking,
“How are we doing?” However, this is not always an easy question to answer. This is especially so, when it is difficult to obtain some type of objective measuring tool to determine how well a certain HR function is performing.
To legitimize the claim of being “business partners”, HR managers must clearly demonstrate how HR services can accomplish the business objectives set forth by the organization. The HR function is often overlooked for audits/measurement tools,



References: are both counterproductive and unprofitable. A U.S. Chamber of Commerce survey (March 31, 1995) cites useful benefit cost benchmarks: total benefit costs as a percentage of payroll average 41.3% nationwide.

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