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QUANTITATIVE TECHNIQUES

IN

HUMAN RESOURCE MANAGEMENT

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HR Audit

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Meaning

An HR Audit is a process of examining

policies, procedures, documentation,

systems & practices with respect to an

organizations human resource functions.

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An HR Audit is a systematic verification of - job analysis & design - recruitment & selection

- orientation & placement - training & development - performance appraisal & job evaluation - welfare & social security - industrial relations

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Features of HR Audit

Process of Examination

A Diagnostic Tool

SWOT of Human Resource System

Systematic way of achieving Companysgoals

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Why ?...

Organisations undertake HR audits for manyreasons :

To make the HR function business-driven . Change of leadership For expanding, diversifying, & entering into a fast

growth phase.

For promoting professionalism among employees. To find out the reasons for low productivity &

improve HRD strategies.

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Changes in the styles of top management

Role clarity of HR Department and the role of linemanagers in HR

Increased focus on human resources and humancompetencies

Better recruitment policies and moreprofessional staff

More planning and more cost effective training

Strengthening accountabilities through appraisalsystems and other mechanisms

Role of HR Audit in Business Improvements

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How ?... HR Audit is studied and analysed using a

variety of methodologies like interviews, questionnaires, observations, available records, workshops etc.

This evaluation helps the organisation tohave a clear understanding of the the HRprocesses with business goals.

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Interviews

This method is quick & adequate for acomprehensive HR Audit. It can be in the form of

Interview with CEO & Top Management Interview with HRD Staff Interview with Line Managers

Interview with Workers & Representatives Group Interviews

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Observation

This method is a way to look at the thingsas they exist.

These includesPhysical Facilities Meetings & Discussions

Celebrations & other events Training Forms, reports & Manuals

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Questionnaires This method measures various aspects &

provides inputs more appropriately It includes various sections such as

Career System Work Planning Development System Self Renewal System

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Who conducts HR Audit Audit is conducted on availability of Experts

It is always useful to conduct HR audit by anexternal team

They are likely to bring newer perspectives

They are likely to suggest new benchmarks

They are not influenced by internal politics &

familiarities

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Qualification of HR Auditor

Skills in identifying developmental needs Skills in methodologies

Skills in reporting Benchmarking Skills Knowledge of business

Knowledge of HR strategies

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Preparation Needed for HR Audit

Educate all the employees Decide on appropriate timing for audit

Request the managers to co-operate Make all the records available to the

auditor

Mentally prepare all those to beinterviewed to set aside a couple of hoursfor the same.

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Frequency of HR Audit

Audit is one-time affair . It is a good to conduct audit once in two

years. It is preferably good to conduct audit once

in four to five years by an outsideagency.

Reason to conduct audit more frequentlyis to help review & evaluate HRDimplementation on a regular basis.

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Benefits

Proper contribution of HR departmenttowards the organization

Develops professional image of HRDepartment Motivates Human resource personnel

Finds out problem & solve them smoothly Sound performance appraisal systems Timely Legal Requirements

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Conclusion

HR Audit is important is important as ithighlights critical issues.

It involves involvement of all.

Effectiveness depends upon competencyof auditors.

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THANK YOU