Litreture Review on Hr Audit

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In a study conducted by T.V.Rao (1999), is reported that HR audit is a great deal of work as been in India regarding the use of HR as an organisation development intervention and is a unique feature of Indian organizations. HR audit has following result. The audit in several organization resulted in established several original system and process, such as potential and performance appraisal, career planning, training, monitoring. Formulation of clear cut polices including promotion policy communication policy reward and reorganization policy, etc. Helps in development trust, collaboration and teamwork. Human orientation gets injected into business process with opportunities for growth and development provided to all employees in team of their work leading to higher level of role efficacy. Nevado [1998] considers that the audit should also analyze if the personnel policies are in alignment with the general objectives and the global strategy of the company. It must also translate the HR strategy into plans and programs. Thus appears a new element of the audit of HR, the strategic audit. Dolan, Schuler, and Valle [1999, p. 390] define it as “the evaluation of the adaptation of the HR policies and practices in their support of the company’s general strategy.”

Brown [2000] considers that the measurements used to evaluate the company’s personnel reflect neither its value nor its performance. This is why he proposes an alternate procedure that consists of creating a human capital index based on four elements that must be carefully studied considering their relative importance to the company: the number of years in the business or field, the level in the company (by job grade or organizational chart level), the number and variety of positions or assignments held, and the performance rating, which is subjective. It is the result of an evaluation of an employee’s performance, which should include an evaluation by a superior and another of...
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