Comprehensive Verification of HR System: Human Resource Audit (HRA)

Change is fact and a way of life, applicable to both – animate & inanimate subjects including Human Resource Management. Increased importance of human contribution to organizations competitive advantage in the knowledge driven economy transformed / changed HR function from the role of service provider to strategic business partner. In order to be effective in transformed role, regular assessment of HR function is essential for sustaining organizations growth in today‟s dynamic environment via Human Resource Audit. Evaluation of HR programs, policies & practices, identifying gap between objectives and results and determining what should or what should not be done in future is achieved by Human Resource Audit. It clarifies desired HR practices, establishes baseline for future improvement and evaluates current effectiveness of HR system. Human Resource Audit covers three parameters namely – the HR Policies and Practices, the HR Professionals and the HR Department. To achieve the objective of HR Audit, Comparative, Outside Authority, Statistical, Compliance or MBO approach may be adopted. The process involves – defining audit statements, assessing current practices, establishing goals and plan of action to be taken to achieve the established goals. The degree of detail and definition of performance is within the control of the audit developer. HRA enriches itself through better definition development and higher levels of performance expectations with the time and have far reaching impact on the employee‟s morale and performance as it is closely related through productivity, people and processes. It moves HR Professionals into an active state of defining their direction, making sense of their choices and contributing to the organization in a more definitive way.