Scope

Scope

Audit of Corporate Strategy Corporate Strategy concerns how the organization is going to

gain competitive advantage.

Audit of the Human Resource Function Audit touches on Human Resource Information System, Staffing

and Development, and Organization Control and Evaluation.

Audit of Managerial Compliance Reviews how well managers comply with human resource

policies and procedures.

Audit of Employee Satisfaction To learn how well employee needs are met.

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Audit of Corporate Strategy• Human resource professionals do not set corporate

strategy, but they strongly determine its success. • By assessing the firm’s internal strengths and

weaknesses and its external opportunities and threats, senior management devises ways of gaining an advantage, such as :

• stresses superior marketing channels, • low-cost production, etc. • Understanding the strategy has strong implications

for human resource planning, staffing, compensation, employee relations, and other human resource activities

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Audit of the Human Resource Function

1. Human Resource Information System- Human Resource Plans : Supply and demand

estimates; skill inventories; replacement charts and summaries

- Job Analysis Information : Job standards, Job descriptions, Job specifications

- Compensation Management : Wage, salary, and incentive levels; Fringe benefit package;

Employer-provided services

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2. Staffing and Development

• Recruiting : sources of recruits, availability of recruits, employment applications

• Selection : selection ratios, selection procedures, equal opportunity.

• Training and development : orientation program, training objectives and procedures, learning rates

• Career development : internal placement, career planning program, human resource development

efforts

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3. Organization Control and Evaluation

• Performance appraisals : standards and measures of performance, performance appraisal

techniques, evaluation interview.

• Labor-Management Relations : Legal compliance, management rights, dispute resolution problems.

• Human Resource Controls : employee communications, discipline procedures, change

and development procedures,

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Audit of Employee Satisfaction• Employee satisfaction refers to an employee’s

general attitude toward his or her job. • When employee needs are unmet, turnover,

absenteeism, and union activity are more likely. To learn how well employee needs are met, the audit

team gathers data from workers. • The team collects information about wages, benefits, supervisory practices, career planning

assistance, and other dimensions of job

SCOPE

• Personnel audit may be directed at the following:

• Results: Accomplishments and problems of current management

• Programmes: Detailed practices and procedures of which the are composed

• Policies: Both expressed and implied• Philosophy of management: it’s priorities in

values and goals