Prune redundancies by HR Dept audit
The corporate jungle law says - people first, hence the function of the HR department is gaining importance and recognition for its inimitable contribution. HR has grown in stature and complexity. The implications of its policies are now considered fundamental to solving the ‘people problem’. People give the company its competitive advantage, and need to be taken care of and here steps in HR. So it has become crucial that the HR function moves in tandem with th
e organisation’s policies truly recruiting and developing the best talent, and most importantly taking deliberate care to ensure that every employee is happy.
But how is one ever to know that this is actually happening? How does one assess the HR functions and know that all is well? HR audit is the answer. It ensures that the HR department is functioning as it should, is effective and growing with times.
Importance
This audit ascertains the effectiveness of the HR department’s role and discerns its efficiency. It establishes and checks whether all duties and responsibilities of the HRD are met. If carried out systematically; the audit analyses the objective of each function and ascertains whether the goals and targets are being met and the methods adopted are contemporary without redundancy.
It also ensures that the HR department functions in tandem with the corporate goals and in accordance with the laws, regulations and polices of the industry and government.
Most importantly this audit, clarifies every department’s role and helps maintain uniformity in HRM across the company and across decentralised units or firms that have operations in other countries.
What does it actually entail?
The audit entails the following functions:
A strategic function - It ensures that the HR department is in tandem with the organisation’s overall strategic goals and is not functioning in an independent or ad hoc manner.
The human resource function- Every department of the HRM system is checked to ensure that it is working as expected meeting its goals, using appropriate methodology such that it is resulting in employee satisfaction. The scope of the audit covers all functions, which include recruitment, training and development, compensation and benefits, employee and union relations, health and safety measures, legal issues and government policy, performance appraisals and management, transit and termination. The audit is a systematic review of every task and its result.
Managerial compliance- The work of the HR department extends beyond its immediate tasks, for employees work in different departments and it is the HR department’s responsibility to keep them satisfied. Hence one has to assess whether the manager’s people policy is in accordance with the HR department.
Audit Tools
The audit can be carried out either by an external auditor, HR specialist or by an internal group or committee.
Some specific tools commonly used are:
A review: A review maps out the entire process of recruiting, lays down objectives for that function and through detailed analysis and reports, determines whether they are being met. The analysis pays attention to the modus operandi an
d flaws if any. A review is done of the information thus gathered.
Interviews and surveys: Interviews are a more personal way to ascertain whether an employee is satisfied with a particular HR process, be it performance management or an increment. They are also particularly useful in ascertaining a ma
nager’s human resource efficacy, for example a sub-ordinate can be interviewed to determine a manager’s team building skills. Surveys too help in gathering information about a particular process such as training.
Historical analysis: Benchmarking is a useful tool in the HR audit process. It helps the audit team perform a comparative survey with other firms. By wage or increment comparisons one can discern whether one’s practices are redun
dant or contemporary. This assures that the employees aren’t attracted to a competitor’s policies as yours are equally attractive. Historical analysis helps compare the company’s current HR practices with its past success.
MBO: Management by Objective (MBO) directs the audit team to analyse whether the goals or objectives laid down per function have been met, the problems being encountered and how they can be dealt with.Finally the auditors gather their
data, surveys, analysis and the like, conduct an MBO or discern the flaws and put forth the corrections and way forward by benchmarking. The heads of each department, or the managers concerned are handed their reports, with problems, implications, strengths and corrections. Major policy changes are sought and looked into.
This audit gives the HR department a professional image, not one deemed a lax department. Periodical audit helps the department prune all its redundant practices and structure it to perfection to perform with excellence.
UZMA HYDER
faqs@cnkonline.com
Printer friendly
page
Send this article to Friends by
E-Mail
Opportunities
