HR Audit Green Wind Solutions
HR Audit
HR audit is an overall quality control check on human resource activities in a division or company and how those activities support the organization’s strategy. A human resource audit evaluates the personnel activities used in an organization. The audit may include one division or entire company.
Purpose The
purpose of a Human Resources audit is to assess the effectiveness of the Human Resources function to ensure regulatory compliance To look for potentially serious problems (Time bombs) To find areas needing improvement To document processes for use in merger, reorganization or inspection To address compliance issues
Benefits
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 department’s duties and responsibilities Finds critical personnel problems Create an HR business plan Streamline HR work processes Monitor compliance with established regulations and procedures Develop user-friendly HR systems
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The function of operating managers. The human resource specialists. How well managers are meeting their human resource duties.
Scope 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. Audit of Managerial Compliance Reviews how well managers comply with human resource policies and procedures. Audit of Employee Satisfaction To learn how well employee needs are met.
Corporate Strategy
Human resource professionals do not set corporate strategy, but they strongly determine its success. By assessing the firm’s 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
Human Resource Function 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; Employer-provided services
Staffing & 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
Organization Control & Evaluation Performance appraisals : standards and measures of performance, performance appraisal techniques, evaluation interview.
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Labor-Management Relations : Legal compliance, management rights, dispute resolution problems. ď‚›
Human Resource Controls : employee communications, discipline procedures, change and development procedures,
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Methodology
Interview
key staff Review relevant documentation Help you complete a comprehensive questionnaire Compile data a prepare and customized written report Make specific recommendations to improve the efficiency and performance of your HR function
Regulatory Compliance Audit Personnel
files and record keeping (contain only job related information) Pay equality Job descriptions (ADA compliance) Health and safety Equal opportunities and positive action Forms (applications, internal forms, etc.) Legal reporting Policies and procedures
Task of Auditors
Identify who is responsible for each activity. Determine the objectives sought by each activity. Review the policies and procedures used to achieve these activities. Prepare a report commending proper objectives, policies, and procedures. Develop an action plan to correct errors in each activity. Follow up the action plan to see if it solved the problems found through the audit.
Audit of Employee Satisfaction Employee satisfaction refers to an employee’s 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
Report for the HR Specialist ď‚›
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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 others company are doing Attitude operating managers toward personnel policies Workers pay dissatisfaction