Impact of Human Resource Audit on Competency Management in Private Sector with special reference to Nasik District

It is necessary for the top management to establish the terms and scope of the audit clearly before the external firm to make the audit successful. This includes defining the exact purpose of audit, viz. examining compliance with legal requirements and organization’s policies, identifying problem areas to avoid crisis situation with appropriate planning, analyzing ways to better serve the needs of relevant parties – employees, partners or society, measuring the work processes, seeking HR related opportunities available within the organization, dealing with situation of merger and acquisitions, etc. As far as Human Resource Audit is concerned, following of them are taken into consideration viz, documentation, job descriptions, personnel policies, legal policies, recruitment and selection, training and development, compensation and employee benefit system, career management, employee relations, performance measurement and evaluation process, termination, key performance indicators, and HR Information Systems (HRIS) etc whereas in case of Competency Management; Technical skills, Conceptual Skills, Interpersonal skills, communication skills, Decision making ability etc were taken under the consideration. The main benefit of the HR audit is that it takes the HR to the next level – aligned with the company goals, strategy and business results. Finally, HR Audit having very positive impact on the on Competency Management.