An audit is a review and verification of completed transactions to see whether they represent a true state of affairs of the business or not. Thus an HR audit refers to the measurement of the effectiveness of HR management's mission, objectives, strategies, policies, procedures, programmes and activities.
Objectives of Human Resource Audit The objectives of HR audit are:
1. To review the whole system of management programmes in which a management develops, allocates and supervises HR in an organization with a view to determine the effectiveness of these programmes.
2. To evaluate the extent to which line managers have implemented the policies and programmes initiated by top management and the HR department.
3. To evaluate the effectiveness of various HR policies and practices.
4. To evaluate HR staff.
5. To seek answers to such questions as "what happened?". "Why it happened?" or "Why it did not happen?", While implementing policies, practices and directives in managing human resources
Need for HR Audit
Though there is no legal obligation to audit HR policies and practices, some of the modern organizations do pursue it for the following reasons:
1. To increase the size of the organization and personnel in several organizations.
2. To change the philosophy of management towards HR.
3. To increase the strength and influence of trade unions.
4. To change HR management philosophy and thereby personnel policies and practices throughout the world.
5. To increase the dependence of the organization on the HR system and its effective functioning.
Benefits of HR Audit
1. It reduces human resource costs.
2. It ensures timely compliance with legal requirements.
3. It identifies critical personnel problems.
4. It identifies the contributions of the HR department.
5. It improves the professional image of HR department.
6. It classifies the HR department's duties and responsibilities.
HR PLANNING
According to Geisler, "HR planning is the process by which a firm ensures that it has the right number of people and the right kind of people at the right places at the right time doing work for which they are economically most useful".
According to Wendell French, "HR planning is the process of assessing the organization's human resources needs in the light of organizational goals and making plans to ensure that a competent, stable work force is employed."
Objectives of HR Planning
HR planning is required to meet the following objectives:
1. Forecast Personnel Requirements:
HR planning is essential to determine the future manpower needs in an organization. In the absence of such plan, it would be difficult to have the services of right kind of people at the right time.
2. Cope with Changes: HR planning is required to cope with changes in market conditions technology, products and government regulations in an effective way. These changes may often require the services of people with the requisite technical knowledge and training
3. Use existing Manpower Productively: By keeping an inventory of existing personnel in an enterprise by skill, level, training educational qualifications, work experience, it will be possible to utilise the existing resources more usefully in relation to the job requirements.
4. Promote Employees in a Systematic Manner: HR planning provides useful information on the basis of which management decides on the promotion of eligible personnel in the organization, In the absence of an HR plan, it may be difficult to ensure regular promotions to competent people on a justificable basis.
Importance of HR Planning
HR planning is a highly important and useful activity. If used properly, it offers a number of benefits:
1. Reservoir of Talent:
The organization can have a reservoir of talent at any point of time.People with requisite skills are readily available to carry out the assigned tasks.
2. Prepare People for Future: People can be trained, motivated and developed in advance and this helps in meeting future needs for high quality employees quite easily. Human resource shortage can also be met comfortably through proper HR planning.
3. Expand or Contract:
If the organization wants to expand its scale of operations, it can go ahead easily, Advance planning ensures a continuous apply of people with requisite skills who can't handle challenging job easily.
4. Cut Cost:
Planning facilitates the preparation of an appropriate HR budget for each department or division. This in turn, helps in controlling manpower supply. The physical facilities such as canteen, quarters, school, medical help etc. can also be planned in advance.
5. Succession Planning:
HR planning as pointed or preparing people for future challenge. The stars can be picked up and kept ready for further promotions whenever arise. All MNC companies for example have this policy of having a net list of promising candidates prepared. in advance example MLL, Proctor and Gamble etc. When the time comes, such people switch hats quickly and replace their bosses without any problem.
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