'Audit' means an examination of records or financial accounts to check their accuracy. Simply put, 'an official examination of records'. HR Audit means, examination of current human resource policies, procedures & systems of any organisation.
- Human Resource valuation system cannot be considered to be complete system till it is followed by a system of HR auditing.
- HR Audit recognises strengths and identifies needs for human resource function.
- HR Audit analyses how effective an organisation is at maximising human capital's contribution.
- HR Audit involves systematic reviews of all aspects of HR Functions like Wage & Salary Administration, Recruitment Training, Termination, Job Description, Performance Appraisal, Payroll, Employee Relations, Legal Compliance & Communications.
- HR Audit helps to evaluate whether specific practice areas are adequate, legal & effective or needs any improvement?
- HR Audit can be conducted at the departmental or at organisational level.
- HR Audit gradually conveys a sense of confidence in management and in HR Function that is well managed and prepared to meet any potential challenges.
- HR Audit helps in improving the efficiency of human resources in the changing business scenario.
- The object of HR Audit is to seek answers to What happened? Why did it happen? Why did it not happen? while implementing Policies, Practices & Directives in managing Human Resources.