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Presentation on HR  Audit   by:  N.Chandra Sekhar  MBA .  PRABHATH INSTITUTE OF BUSINESS MANAGEMENT HUMAN  RESOURCE  AUDIT
Agenda: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],HR Audit PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR  Audit   by:  N.Chandra Sekhar  MBA .
An HR audit is a process to review implementation of your institutions policies and procedures, ensure compliance with employment law, eliminate liabilities, implement best practices and educate your managers. Definition:   (OR) HR Audit refers to Examination & Evaluation of Polices, Practices & Procedures to detect Effectiveness & Efficiency of HRM and Verify if Mission, Objectives, Polices, Procedures, Programs are chased and expected results achieved. HR Audit also suggest future improvements based on past activities measurement. PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR  Audit   by:  N.Chandra Sekhar  MBA .
HR Audit Significance:   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Managements Feel, that Employee Participation in Activities is: PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR  Audit   by:  N.Chandra Sekhar  MBA .
Need for HR Audit: ,[object Object],[object Object],[object Object],[object Object],PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR  Audit   by:  N.Chandra Sekhar  MBA .
Scope of Audit: HR Audi has vide scope, involves much more than Management. Scope of HR Audit Planning -  Forecasting  Scheduling  HR Philosophy  Motivation & commitment  Policies  Organizing  leadership styles  Personnel Results  Staffing & Development  Programmes & Practices  supervision  delegation  negotiation  Special area Research & Innovation  PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR  Audit   by:  N.Chandra Sekhar  MBA .
Use Of HR Audit: ,[object Object],[object Object],[object Object],[object Object],[object Object],PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR  Audit   by:  N.Chandra Sekhar  MBA .
Objectives:  1.   Effectiveness:  To review performance of Human resource Department and its  activities to determine effectiveness. 2.Implementation:  To locate gaps, lapses, failings in applying Polices,  Procedures, Practices & HR-directives. Also to see areas of wrong/ non-  implementation that hindered the planned programs & activities.  3.Rectification:  To take corrective steps to rectify mistakes, shortcomings  contesting effective work performance of HR Department.  4. Evaluation: To evaluate HR Staff & employees. 5.  To evaluate the extent to which Line Managers Applied Policies Programmes &  Directives initiated by Top Management & HR Department. 6.Modify:  To review HR System and Modify to meet challenges in comparison  with other organizations.  7.Questioning:  To seek answers to ‘What,  Why   ‘When Happened while  implementing Policies, Practices & Directives in managing HRs  Presentation on HR  Audit   by:  N.Chandra Sekhar  MBA .  PRABHATH INSTITUTE OF BUSINESS MANAGEMENT
Benefits of HR Audit: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR  Audit   by:  N.Chandra Sekhar  MBA .
Pitfalls of HR Audit: 1. Full audit may be time consuming 2. May not be as objective and impartial as desired 3.Impact of certain actions may not be clear PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR  Audit   by:  N.Chandra Sekhar  MBA .
Special Areas Of  HR Audit:   Audit of HR Function Audit of Managerial Compliance Audit of HR Climate 1.Employee Turnover   2.Absenteeism   3.Safety Records    4. Attitude Surveys   Audit of Corporate Strategy Audit and Human Resource Research PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR  Audit   by:  N.Chandra Sekhar  MBA .
Audit of HR Function: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Involves all activities of HR Functions, From HRP to IR PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR  Audit   by:  N.Chandra Sekhar  MBA .
For each activity in the HR Audit functions Auditors must:  1 determine objective of activity. 2 Identify who is responsible for its performance.  3 Review the performance. 4 Develop action plan to correct deviation, between Results & Goal.  5 Follow up action plan. HR Evaluation must justify existence of  department & its expenses. Department has no reason to function if fails to  contribute to Company’s bottom-line, Prune expenses to make department viable.  Auditor’s Role:  PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR  Audit   by:  N.Chandra Sekhar  MBA .
FIVE Approaches to HR Audit:  ,[object Object],[object Object],[object Object],[object Object],[object Object],Auditors may choose any of the five approaches for the purpose of Evaluation. PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR  Audit   by:  N.Chandra Sekhar  MBA .
Comparative Approach –   Auditors Identify another Company as a MODEL. Result of their  Organization compared with those of Model Company . Outside Authority Approach –  Often, Auditors use standard set by Outside Consultant as  BENCHMARK for comparison of own Results. PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR  Audit   by:  N.Chandra Sekhar  MBA .
Compliance Approach  –  Auditors review Past Actions to determine if those activities comply with legal  requirements and Company Policies, & Procedures. A Final approach is for  Specialists & Operating Managers to set objectives in their areas of responsibility. Management By Objectives Approach –   creates Specific Goals against which performance can be measured. Then the  Audit Team Researches ACTUAL PEERFORMANCE and COMPARES  WITH THE OBJECTIVES. PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR  Audit   by:  N.Chandra Sekhar  MBA .
Audit Report The Prog comes to end with preparation of Report. Report may be Clean or Qualified. It is Qualified if HR Performance contains Gaps for which remedies suggested. Report is Clean where Performance is fairly Satisfactory Naturally any audit will be done annually. Though it is preferred to conduct Human Resource Audit annually, but it is advisable to conduct audit once in three years or five years, keeping in view the fact that the realization of the Organizational goals may not be identified within a year.  PRABHATH INSTITUTE OF BUSINESS MANAGEMENT PERIOD OF AUDIT Presentation on HR  Audit   by:  N.Chandra Sekhar  MBA .
PRABHATH INSTITUTE OF BUSINESS MANAGEMENT THANK YOU… Presented by N.Chandra Sekhar  (MBA) Presentation on HR  Audit   by:  N.Chandra Sekhar  MBA .  Thanks to V.Lalitha Shiva Jyothi, U Subbachari, K.Venkateswara Reddy Special Thanks to Prof.  L.Vincent Raj Kumar ,  B.Tech,MBA,Phd

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Hr Audit

  • 1. Presentation on HR Audit by: N.Chandra Sekhar MBA . PRABHATH INSTITUTE OF BUSINESS MANAGEMENT HUMAN RESOURCE AUDIT
  • 2.
  • 3. An HR audit is a process to review implementation of your institutions policies and procedures, ensure compliance with employment law, eliminate liabilities, implement best practices and educate your managers. Definition: (OR) HR Audit refers to Examination & Evaluation of Polices, Practices & Procedures to detect Effectiveness & Efficiency of HRM and Verify if Mission, Objectives, Polices, Procedures, Programs are chased and expected results achieved. HR Audit also suggest future improvements based on past activities measurement. PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR Audit by: N.Chandra Sekhar MBA .
  • 4.
  • 5.
  • 6. Scope of Audit: HR Audi has vide scope, involves much more than Management. Scope of HR Audit Planning -  Forecasting Scheduling HR Philosophy Motivation & commitment Policies Organizing leadership styles Personnel Results Staffing & Development Programmes & Practices supervision delegation negotiation Special area Research & Innovation PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR Audit by: N.Chandra Sekhar MBA .
  • 7.
  • 8. Objectives: 1.  Effectiveness: To review performance of Human resource Department and its activities to determine effectiveness. 2.Implementation: To locate gaps, lapses, failings in applying Polices, Procedures, Practices & HR-directives. Also to see areas of wrong/ non- implementation that hindered the planned programs & activities. 3.Rectification: To take corrective steps to rectify mistakes, shortcomings contesting effective work performance of HR Department. 4. Evaluation: To evaluate HR Staff & employees. 5. To evaluate the extent to which Line Managers Applied Policies Programmes & Directives initiated by Top Management & HR Department. 6.Modify: To review HR System and Modify to meet challenges in comparison with other organizations. 7.Questioning: To seek answers to ‘What,  Why   ‘When Happened while implementing Policies, Practices & Directives in managing HRs Presentation on HR Audit by: N.Chandra Sekhar MBA . PRABHATH INSTITUTE OF BUSINESS MANAGEMENT
  • 9.
  • 10. Pitfalls of HR Audit: 1. Full audit may be time consuming 2. May not be as objective and impartial as desired 3.Impact of certain actions may not be clear PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR Audit by: N.Chandra Sekhar MBA .
  • 11. Special Areas Of HR Audit: Audit of HR Function Audit of Managerial Compliance Audit of HR Climate 1.Employee Turnover 2.Absenteeism 3.Safety Records  4. Attitude Surveys Audit of Corporate Strategy Audit and Human Resource Research PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR Audit by: N.Chandra Sekhar MBA .
  • 12.
  • 13. For each activity in the HR Audit functions Auditors must: 1 determine objective of activity. 2 Identify who is responsible for its performance. 3 Review the performance. 4 Develop action plan to correct deviation, between Results & Goal. 5 Follow up action plan. HR Evaluation must justify existence of department & its expenses. Department has no reason to function if fails to contribute to Company’s bottom-line, Prune expenses to make department viable. Auditor’s Role: PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR Audit by: N.Chandra Sekhar MBA .
  • 14.
  • 15. Comparative Approach – Auditors Identify another Company as a MODEL. Result of their Organization compared with those of Model Company . Outside Authority Approach – Often, Auditors use standard set by Outside Consultant as BENCHMARK for comparison of own Results. PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR Audit by: N.Chandra Sekhar MBA .
  • 16. Compliance Approach – Auditors review Past Actions to determine if those activities comply with legal requirements and Company Policies, & Procedures. A Final approach is for Specialists & Operating Managers to set objectives in their areas of responsibility. Management By Objectives Approach – creates Specific Goals against which performance can be measured. Then the Audit Team Researches ACTUAL PEERFORMANCE and COMPARES WITH THE OBJECTIVES. PRABHATH INSTITUTE OF BUSINESS MANAGEMENT Presentation on HR Audit by: N.Chandra Sekhar MBA .
  • 17. Audit Report The Prog comes to end with preparation of Report. Report may be Clean or Qualified. It is Qualified if HR Performance contains Gaps for which remedies suggested. Report is Clean where Performance is fairly Satisfactory Naturally any audit will be done annually. Though it is preferred to conduct Human Resource Audit annually, but it is advisable to conduct audit once in three years or five years, keeping in view the fact that the realization of the Organizational goals may not be identified within a year. PRABHATH INSTITUTE OF BUSINESS MANAGEMENT PERIOD OF AUDIT Presentation on HR Audit by: N.Chandra Sekhar MBA .
  • 18. PRABHATH INSTITUTE OF BUSINESS MANAGEMENT THANK YOU… Presented by N.Chandra Sekhar (MBA) Presentation on HR Audit by: N.Chandra Sekhar MBA . Thanks to V.Lalitha Shiva Jyothi, U Subbachari, K.Venkateswara Reddy Special Thanks to Prof. L.Vincent Raj Kumar , B.Tech,MBA,Phd