Importance of Hr Audit
RESEARCH PROPOSAL
TITLE OF THE STUDY: A STUDY ON THE IMPORTANCE OF HR AUDIT TO INCREASE THE PRODUCTIVITY OF AN ORGANIZATION’S FUNCTIONS
INTRODUCTION OF THE STUDY:
The concept of HR audit has emerged from the practice of yearly finance and accounting audit, which is mandatory for every company, to be done by external statutory auditors. This audit serves as an examination on a sample basis of practices and systems for identifying problems and ensuring that sound accounting principles are followed. Similarly, an HR audit serves as a means through which an organization can measure the health of its human resource function. An audit is a systematic process, which examines the important aspects of the function and its management, and is a means to identify strengths, weaknesses and areas where rectification may be warranted. An HR audit can be used by an organization for multiple purposes. Although the areas examined may be similar, the process used and the depth of inquiry will vary from the intended outcome. The HR audit process is conducted in different phases. Each phase is designed to build upon the preceding phase so that the organization will have a very strong overview of the health of the HR function, at the conclusion of the audit, The process also involves the acquiring and review of relevant HR manuals, handbooks, forms, reports and other information. A pre-audit information request is forwarded to the client who compiles the necessary information for review by auditors. The information gathered is used to develop an HR audit report. The audit report categorizes action needs into three separate areas. The areas that are urgent and important (UI), not urgent needs but important (NUI), not urgent but not important needs (NNI)), and important opportunities needs (IO). As a result of this scheme of classification, managements can prioritize their steps. The comprehensive HR audit covers all areas of HR management like recruitment practices, training and
TITLE OF THE STUDY: A STUDY ON THE IMPORTANCE OF HR AUDIT TO INCREASE THE PRODUCTIVITY OF AN ORGANIZATION’S FUNCTIONS
INTRODUCTION OF THE STUDY:
The concept of HR audit has emerged from the practice of yearly finance and accounting audit, which is mandatory for every company, to be done by external statutory auditors. This audit serves as an examination on a sample basis of practices and systems for identifying problems and ensuring that sound accounting principles are followed. Similarly, an HR audit serves as a means through which an organization can measure the health of its human resource function. An audit is a systematic process, which examines the important aspects of the function and its management, and is a means to identify strengths, weaknesses and areas where rectification may be warranted. An HR audit can be used by an organization for multiple purposes. Although the areas examined may be similar, the process used and the depth of inquiry will vary from the intended outcome. The HR audit process is conducted in different phases. Each phase is designed to build upon the preceding phase so that the organization will have a very strong overview of the health of the HR function, at the conclusion of the audit, The process also involves the acquiring and review of relevant HR manuals, handbooks, forms, reports and other information. A pre-audit information request is forwarded to the client who compiles the necessary information for review by auditors. The information gathered is used to develop an HR audit report. The audit report categorizes action needs into three separate areas. The areas that are urgent and important (UI), not urgent needs but important (NUI), not urgent but not important needs (NNI)), and important opportunities needs (IO). As a result of this scheme of classification, managements can prioritize their steps. The comprehensive HR audit covers all areas of HR management like recruitment practices, training and