Q.1 Discuss the approaches to HR Audit.
Ans.- There are five common approach for the purpose of evaluation of HR in any organization:- Comparative approach:-In this approach, another division or company that has better practice or better or result is chosen as the model. The audit team audits and compares the audited firm’s results with best practices of the model organization. The approach is commonly used to compare the results of specific activities or programs. The approach is often used with turnover, absence, salary data and staffing levels . It helps dectect areas where improvement is needed. It also makes sense to compare where a procedure is being used for the fist time. Outside authority:- In this approach, standards set by a consultant or taken from published research serve as the benchmark for the audit team. The consultant or research findings may help diagnose the cause of problems. Statistical:- This approach relies on performance measures drawn from the company’s existing information system. From exiting records, the audit team generates statistical standards against which activities and programs are evaluated. With the mathematical standards as a base, the team may uncover errors while they are still minor. Often this approach is supplemented with comparative data from external sources such as other firm, or industry association survey. The information is usually expressed in ratios or formulas that are easy to compute and use. Compliance approach:-This approach reviews past practices, to determine if action taken followed legal requirements and company policies and procedures. The audit team here often examines a sample of employment, compensation, displine and employee appraisal forms. The purpose of the review is to ensure that the filed offices and the operating managers have complied with internal rules and legal regulations, such as minimum wages and equal employment opportunity laws. By sampling elements of the human resource information system, the audit team look for deviations from laws and company policies and procedures. The team can then determine the degree of compliance achieved. Management by objectives (MBO):- In this ‘management by objectives’ approach, managers and specialists set objectives in their area of responsibility. Then they create specific goals against which this performance and compares it with the previously set objectives. They can then evaluate the tends in this area.
Q.2 What are the goals of HR Audit.
Ans.- An audit is a means by which an organization can measure where it currently stands and determine what it has to accomplish to improve its human resources function. HR audit also helps companies to figure out any gaps or lapses and the reason for the same. The goals of the audit can be of two types i.e. short-term or long-term. Short-term goal can solve any recent problems in the organization and long-term goals are the the objectives that have greater impact on the goodwill of the organization. For understanding the of long-term audit goals trough example:- suppose in a steel plant, many worker are leaving because of safety issues. So the senior HR manger decides to verify the safety and health issues in factory. So in this case short-term goal is to solve the problem and try to retain the workers. Long-term goal is increas3e the job-satisfaction among worker and increase the goodwill of the company as a better employer. The main of the HR Audit is to ensure that proper controls, policies and procedure are in place for each of HR functions, and that records, disclosures, and other information are consistent with plan documents and in compliance with applicable laws and regulation. The other important gals can be as follows:- 1.To ensure effective utilization of human resources.
2.To review compliance with tons of laws and regulations.
3. To motivate human resource department that it is well-managed and prepared to meet potential challenges and opportunities....
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