HR Audit - NMIMS

 

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HR Audit

Dec 2020

1. ‘Aspire North’ is a talent management company that has assigned you the task to conduct their HR audit. In this context, you need to explain to your team of new joiners, what HR audit is all about. With the help of your team, what types of HR audit do you think should be conducted for your Organization? Conclude by stating the objectives of conducting these audits.

 

Answer: HR Audit

The human resource audit closely examines the people side of the organisation. It involves a comprehensive review of HR-related policies, procedures and practices. It provides an opportunity to do a systematic review of activities that might otherwise be viewed as unrelated and it identifies areas that require further attention or improvement. The audit is a learning experience for everyone in the organisation. It can educate managers and employees on what human

 

2. Cosmos Pvt Ltd, a web development company, is planning to conduct its HR audit next month. John Swift, the audit head is looking after this task. As his team member, what essential steps will you suggest that the HR auditor should follow in order to complete this work successfully? Explain in the context of this case.

 

Answer: In any organisation, the most important input is the human element. The success or failure of a company depends a lot on the persons who work in the organisation. It is a matter of common knowledge that capital issues of even new undertakings with little or no track records, are oversubscribed if they are floated by competent persons. It has been observed that investors in the capital market place higher value on human ability than other factors, like net worth, yield, price earnings ratio, which in any case are not very high for new companies.

 

Benefits of HR audit

To find out how the HR audit

 

 

3. Penny is the CEO of Mars Pvt Ltd. She believes that only the Corporate level HR audit is sufficient for the organization. However, the VP-Operations argues that Functional level HR audit is more important for an organization. As an HR Audit expert, you have been asked to resolve this issue. In the context of the above case,

a. Explain the importance of corporate level Audit by highlighting what areas should be covered under it.

b. Convince Penny for conducting Functional level HR audit as well by highlighting what areas should be covered under it.

 

Answer: a) Importance of Corporate level HR audit

Almost all major initiatives undertaken at the corporate level are implemented organisation-wide. All employees in the organisation understand clearly high priority, which is accorded to various initiatives. The priority may be decided as per the importance of the process and its contribution to the competitive advantage of the company. Employees need to be aware of the benefits derived by undertaking a strategic direction. These are enumerated as follows:

●      Organisational capabilities align to support achievements of strategy.

●      Resources can be allocated to different business processes in order of priority.

 

HR audit at the corporate level means that the central node or the head office is examined for its practices. This is owing to the

 

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