Human Resource Management Audits

Addressing the need for renewal

Human resource management and performance continuously need to be monitored and evaluated by organisations. This is particularly true in light of the increasing need for high quality management input in today's business organi­sations. Organisations must appraise management's contribution to the achievement of the organisation's goals. Have they been able to keep performance standards? Have HRM productivity rates increased or de­creased?

The Organisational Consultants, Ltd. HRM audit objectively addresses these questions and others, such as the reasons for employee turnover, high grievance levels, absenteeism, accidents, etc.... The human resource func­tions performed by the organisation as a whole are measured, and then separately measured for both managerial and supervisory staff's perform­ances.

Objectives

The primary objective of the HRM audit is to help management evaluate the effectiveness and efficiency of personnel functions through the use of two types of audits:

  • Those which focus on general organisational concerns
  • Those which focus on more specific functional HRM areas

General

  • Top management commitment
  • Employee attitude & opinions
  • HRM programme reviews
  • Industrial relations

HRM specific

  • HR planning
  • Recruitment and selection
  • Training and management development
  • Performance appraisal and promotion
  • Compensation and benefits

Approach

The HRM audit consists of the following steps:
1. Presenting the process and benefits of conducting an HRM audit to top management
2. Agreeing on terms of reference
3. Gathering data from different levels of the organisation
4. Analysing data and preparing preliminary reports for appropriate line managers, personnel department and/or internal audit unit
5. Discussing reports with line managers and getting validation for findings
6. Exploring institutional readiness for implementing recommended corrective actions
7. Preparing and submitting final report with recommendations.

Benefits to the organization

Results from the HRM audit enable management to accomplish the following:

  • Ensure that HRM is contributing to organisational goals
  • Ensure compliance with policies, regulations and procedures
  • Improve the quality of HR staff's performance
  • Assist top management in improving HRM Systems and practices
  • Help maximise investment in HR
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