HR AUDIT

Auditing is described as a diagnostic tool to know the present position of the work done and to find out the discrepancies between the actual work done and the desired work. HR Audit means the systematic evaluation of recruitment and selection, placement, training and development, employee remuneration, motivation, job analysis, social security and welfare schemes, communication, disputes and their solutions. 
The need for HR Audit is based upon the business environment which is dynamic. Human resource department needs to be responsive towards the changes taking place which will ultimately have an impact on the working of the organization. HR audit is useful to achieve the organizational goals and to assess the effectiveness of HR functions.
Auditing of HR policies and procedures means assessing the HR practices followed in the organization. This includes evaluating the existing resources, the efficiency of the training programs, structure of compensation, procedures used in recruitment etc. HR audit includes a basic review of HR manuals, reports etc. which involves detailed scanning of HR records, performance assessment.

BENEFITS OF HR AUDIT
HR audit is a tool for corporate governance. HR audit helps in identifying the improvement areas. HR audit helps to find out the critical personnel issues and their solutions. It helps in accepting the changes in the business environment. It helps to clarify the HR duties and responsibilities. HR audit improves the professional image of the HR department. It helps to ensure timely compliance with legal requirements. It can analyze the failures and frees the organization for the non- performance by bringing a new way to get the work done.

SCOPE OF HR AUDIT
HR audit covers the human resource function audit, managerial compliance audit, HR- corporate strategy audit and HR climate audit, employee turnover, absenteeism accidents related surveys. It is necessary for the top level managers to establish the scope of the audit before the external firm to make the audit successful.

In conclusion, it can be said that HR audit contributes towards the best possible use of internal resources and increasing the effectiveness of human capital in the organization.

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