A Human Resources Audit is a comprehensive method (or means) to review current human resources policies, procedures, documentation and systems to identify needs for improvement and enhancement of the HR function as well as to assess compliance with ever-changing rules and regulations.

1. PRESENTED BY:
Rahul Kapoliya
MBA 2nd-C
PRESENTED TO:
DR. Garima Mathur

2. Definition
Scope of Audit
Benefits of HR Audit
Approaches to HR Audit
Purposes of HR Audit
Frequency of HR Audit
Objectives of HR Audit
Conclusion
HUMAN RESOURCE AUDIT

3. HR audit means the systematic verification of job analysis and design,
recruitment, orientations and placement, training and development,
performance appraisal and job evaluation, employee and executive
remuneration, motivation and morale, participative management,
communication, welfare and social security, safety and health, industrial
relations, trade unionism, and disputes and their resolution. HR Audit is very
much useful to achieve the organizational goal and also is a vital tool which
helps to assess the effectiveness of HR functions of an organization.
DEFINITION
HUMAN RESOURCE AUDIT

4. Scope of Audit
 Audit of all the HR function.
 Audit of managerial compliance of personnel policies,
procedures and legal provisions.
 Audit of corporate strategy regarding HR planning,
staffing, IRs, remunerations and other HR activities.
 Audit of the HR climate on employee motivation,
morale and job satisfaction.
HUMAN RESOURCE AUDIT

5. Benefits of HR Audit
 It helps to find out the proper contribution of the HR department towards the organization.
 Development of the professional image of the HR department of the organization.
 Reduce the HR cost.
 Motivation of the HR personnel.
 Find out the problems and solve them smoothly.
 Provides timely legal requirement.
 Sound performance appraisal systems.
 Systematic job analysis.
 Smooth adoption of the changing mindset.
HUMAN RESOURCE AUDIT

6. Approaches to HR Audit
 Comparative approach
 Outside authority
 Statistical
 Compliance approach
 Management by objectives (MBO)
HUMAN RESOURCE AUDIT

7. Purposes of HR Audit
 HR Audit is a tool which helps to assess effectiveness of HR functions of an Organization.
 Focus on Analyzing and improving.
 To reveal the Strength and Weakness.
HUMAN RESOURCE AUDIT

8. Frequency of HR Audit
 The HR Audit, if conducted continuously and Regularly, then it becomes a fairly
managed process.
 It is best to have a HR Audit once in a Year.
HUMAN RESOURCE AUDIT

9. Objectives of HR Audit
Effectiveness
Implementation
Rectification
Evaluation
Modify
HUMAN RESOURCE AUDIT

10. Conclusion:
The auditors always prepare and submit an audit report to authority of the organization, which
may be clean or qualified. The clean report indicates the appreciative of the department’s
function, but the latter one represents the gaps in performance and therefore contains
remarks and remedial measures.HR Audit is very much helpful to face the challenges and to
increase the potentiality of the HR personnel in the organization.
HUMAN RESOURCE AUDIT

11. HUMAN RESOURCE AUDIT