1. An Introduction To
Human Resource Audits
By: Group C1
T. Madhavi Rao
Vikash Rathour
Utkarsh Singh Baghel
Rahul Kumar

2. What is an HR audit?
An HR audit is a process to review implementation of
organization’s policies and procedures, ensure
compliance with employment law, eliminate liabilities,
implement best practices and educate your managers.

3. Human Resource Audit?
A human resource audit evaluates the personnel
activities used in an organization. The audit may
include one division or entire company. It gives
feedback about :
1. The function of operating manager
2. The human resource specialists.
3. How well managers are meeting their human
resource duties.
In short, the 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

4. Personnel/Human Resource Audit
Involves:
 Measurement and evaluation of personnel
programmes, policies and practices
 Identification of gap between objectives
and results
 Determination of what should or should
not be done in future.

5. 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 department’s duties
and responsibilities
 Finds critical personnel problems

6. The audit should be:
Proactive
Reactive
Informative
Developmental

7. Why conduct an HR audit?
• Ensure compliance
• Improve HR practices
• Train your managers
• Prepare for potential government audit or litigation
• Gain an understanding of department’s environment
• Show a “good faith effort”
• Correct errors

8. The Scope of Human Resource
Audits
 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.

9. Thank U