Human Resource Audit - A Tool for Measuring Manpower Functioning
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For any business, in order to operate properly, it is very much necessary to have a well run human resource department. This can be ensured by having a regular audit of human resource department. A Human Resource Audit serves as a means through which an organization can measure the health of its human resource function. It is a process of examining policies, procedures, documentation, systems, and practices with respect to an organization’s Human Resource functions. The purpose of the audit is to reveal the strengths and weaknesses in the nonprofits’ human resources system, and any issues needing resolution. The audit works best when the focus is on analyzing and improving the Human Resource function in the organization. The purpose of conducting a human resource audit is to support the overall business plan of the organization. The process has three parts: to identify and prioritize management issues relating to human resources; identify gaps between the current practices and policies with that of the business objective; and to identify any legal difference and potential exposure. Unfortunately most companies who perform an audit only focus on compliance and miss those items that could really make a difference in one’s business over the long term. The Human Resource audits should be done every twelve to eighteen months and should coincide with the organizations business planning cycle. While some will say that the audit should be done annually, but since it is such a large task pushing it to every eighteen months is fine but definitely should not go beyond two years. The other option is to establish an audit cycle to break the task into manageable sized pieces.
Why Do An Audit
1) To insure the effective utilization of an organization’s human resources.
2) To review compliance with a myriad of administrative regulations.
3) To instil a sense of confidence in management and the human resources function that it is well managed and prepared to meet potential challenges.
4) To maintain or enhance the organization’s and the department’s reputation in the community.
5) To perform a "due diligence" review for shareholders or potential investors/owners.
Human Resource audits also provide feedback as to whether Human Resource function is contributing to the achievement of organizations’ goals. Senior management needs this information in order to make strategic decisions to improve productivity. This feedback can be used to take corrective actions and make decisions on improvement plan.
1 comments:
Nice... Sounds handy
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