2. 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.
3. 3
Audit of 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
4. 4
Audit of the Human Resource
Function
1. 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
5. 5
2. Staffing and 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
6. 6
3. Organization Control and Evaluation
• Performance appraisals : standards and measures
of performance, performance appraisal
techniques, evaluation interview.
• Labor-Management Relations : Legal compliance,
management rights, dispute resolution problems.
• Human Resource Controls : employee
communications, discipline procedures, change
and development procedures,
7. 7
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
8. SCOPE
• Personnel audit may be directed at the
following:
• Results: Accomplishments and problems of
current management
• Programmes: Detailed practices and
procedures of which the are composed
• Policies: Both expressed and implied
• Philosophy of management: it’s priorities in
values and goals
