Post on 24-Oct-2014
PERSONNEL RESEARCH AND
AUDIT
Personnel research is the task of searching for and analyzing facts relating to the end that personnel problems may be solved or principles and laws governing their solution derived.
Personnel research implies systematic investigation into any aspect of personnel or human resource management in a systematic way.
Formulation of a problem Selection of hypothesis Designs of experiment Description of sampling Collection of data Analysis and interpretation of
data Report writing
HR research is purposive, means seeks to answer only specific questions
It is objective in nature It is systematic It identified methods & techniques for the
solution of problem with minimum cost HR research is repeatable. Can be used
by different researchers at the same time It is planned & designed investigation &
analysis It supplements the knowledge & extends
the frontiers of understanding.
To measure & evaluate present conditions To predict future conditions, events & behavioral
patterns To appraise proposed policies, programmes &
activities To evaluate the effects & results of current policies,
programmes, practices and activities To provide an objective basis for a revision of current
policies, programmes, practices and activities To evaluate & review the linkage & knitting b/w
organizational strategies & HRM strategies To discover means and ways of strengthening the
abilities & attitudes of employees.
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Techniques to carry out personnel research
Personnel research can be undertaken through:
Historical studies
Case studies
Survey method
Statistical studies
Mathematical models
Simulation methods
Action research methods
Personnel Records, Audit And Research
Personnel decisions can be improved through personnel research because better information leads to better solutions Personnel research can offer valuable insights for managers as they attempt to increase employee productivity and satisfaction while reducing absenteeism and turnover.
To build upon existing knowledge Evaluation of proposed programmes,
practices & activities Evaluation of current & new policies
& practices Anticipation of personnel problems
Increase employees satisfaction
Enhance employees productivity
Reducing absentism Decreasing turnover
A human resource audit evaluates the personnel activities used in an organization. The audit may include one division or entire company. It gives feedback about :
1. The function of operating managers. 2. The human resource specialists.3. How well managers are meeting their human
resource duties. In short, the audit is an overall quality control
check on human resource activities in a division or company and how those activities support the organization’s strategy
HRM Objectives
HRM Activities
HRM OutcomesHRM Audits
Organizationalobjectives
HR Functions
Managerial Compliance
Employee satisfaction
Corporate Strategy
Scope Approaches
Comparison
Outside Authority
Statistical
Compliance
MBO
HR Research
Evaluation Report
Process of HR Audits
Special Areas Of HR Audit:
Audit of HR Function
Audit of Managerial Compliance
Audit of HR Climate
1.Employee Turnover
2.Absenteeism
3.Safety Records
4. Attitude Surveys
Audit of Corporate Strategy
Audit and Human Resource Research
Need for HR Audit:
Though, to audit HR- Policies & Practices no legal obligation exists, some Modern Organizations chase to:
1. Increase size of Organization & Personnel
2. Change Philosophy of Management towards HR
3. Increase Strength & Influence of Unions
HR Audit Significance:
1. Essential for Organization success.
2. It Provides Required Feedback.
3. Managing Rising Labor Costs.
4. Increasing Opportunities for Competitive Advantage of HRM.
5. HR Audit can avoid Government intervention
6. HRP protect Employees interests by identifying their problems.
Scope of Audit:HR Audit has wide scope, involves much more than Management.
Scope of HR Audit
Planning - Forecasting
Scheduling
HR Philosophy
Motivation & commitment
Policies
Organizing
leadership styles
Personnel Results
Staffing & Development
Programmes & Practices
supervision
delegation
negotiation
Special area
Research & Innovation
Use Of HR Audit:
Basic purpose of HR-Audit is to find:
1. How various units are functioning?
2. How they met policies & guidelines Pre-agreed upon?
3. To assist Rest of Organization locating gaps between Objectives & Results.
4. Formulate Plan for corrections
Benefits of HR Audit:
1. Identifies contribution of HR Departments to the organization
2. Improves HR Department’s Professional Image.
3. Encourages greater Responsibility & Professionalism amongst members of the personnel department.
4. Classifies HR Department’s Responsibilities & Duties.
5. Stimulates Uniformity of Personnel Policies & Practices.
6. Identifies Critical personnel problems.
7. Ensures Timely Legal Compliance Requirements.
8. Reduces HR Costs
Pitfalls of HR Audit:
1. Full audit may be time consuming
2. May not be as objective and impartial as desired
3. Impact of certain actions may not be clear
Audit of HR Function:
Major Areas:
1. Planning - Forecasting,
2. Scheduling;
3. Staffing & Development,
4. Organizing;
5. Motivation & commitment ;
6. Administration ;
7. Research & Innovation.
• Involves all activities of HR Functions
For each activity in the HR Audit functions Auditors must:
1 determine objective of activity.
2 Identify who is responsible for its performance.
3 Review the performance.
4 Develop action plan to correct deviation, between Results & Goal.
5 Follow up action plan. HR Evaluation must justify existence of department & its expenses. Department has no reason to function if fails to contribute to Company’s bottom-line, Prune expenses to make department viable.
Auditor’s Role:
FIVE Approaches to HR Audit:
1.Comparative Approach.
2.Outside Authority Approach.
3.Compliance Approach.
4.MBO Approach
Auditors may choose any of the five approaches for the purpose of Evaluation.
Comparative Approach –
Auditors Identify another Company as a MODEL. Result of their
Organization compared with those of Model Company.
Outside Authority Approach –
Often, Auditors use standard set by Outside Consultant as
BENCHMARK for comparison of own Results.
Compliance Approach –
Auditors review Past Actions to determine if those activities comply with legal
requirements and Company Policies, & Procedures. A Final approach is for
Specialists & Operating Managers to set objectives in their areas of responsibility.
Management By Objectives Approach –
creates Specific Goals against which performance can be measured. Then the
Audit Team Researches ACTUAL PEERFORMANCE and COMPARES
WITH THE OBJECTIVES.
Audit Report
Audit comes to end with preparation of Report. Report may be Clean or Qualified. It is Qualified if HR Performance contains Gaps for which remedies suggested. Report is Clean where Performance is fairly Satisfactory
Naturally any audit will be done annually. Though it is preferred to conduct Human Resource Audit annually, but it is advisable to conduct audit once in three years or five years, keeping in view the fact that the realization of the Organizational goals may not be identified within a year.
PERIOD OF AUDIT
Findings of research are used to developed a picture of the organization’s resource activities. For this information to be useful, it is compiled into audit report.
The audit report is a comprehensive description of human resource activities that includes both commendations for effective practices and recommendations for improving practices that are less effective.
Audit report often contain several sections. One part is for line managers, another is for manager of specific human resource function, and the final part is for the human resource manager.
Table of contents Preface giving a brief statement of
the objectives Summary of report for top
executives Proper report General summary to all the person
concerned Appendix.