HRD Audit

Concept, meaning and definition

- It examines and evaluates policies, procedures and practices to determine the effectiveness of HRD function in an organization.
- Human resource audits are potentially powerful tools in promoting wiser, more equitable use of human resources and more accurate human resource planning.
- To realize these goals, however, "users must be made aware of what information is contained in the inven¬tory, how to gain access to it, and how to interpret it" (Cascio, 1987, p. 223). Furthermore, current inventories must be maintained.


Objectives of HRD Audit

- To determine the effectiveness of management programmes.
- To analyze the factors involved in HRD and develop a statement of findings with recommendations for correcting deviation.
- To study the extent to which line managers have complied with HRD policies.
- To study the current manpower inventory and identify shortfall of excess.

Scope of HRD Audit
- The actual state.
- The congruence between the desired and the actual state.
- The alignment with the overall organizational strategy and goals.
- The compliance with the rules and regulations.
- Auditing HR practices, auditing HR professionals, auditing HR functions or department.


Importance of HRD Audit
- It helps to identify the changing training needs and development of new training modules for effective utilization of manpower due to technological changes.
- To keep pace with environmental changes.

Methods and techniques of HR Audit

- Attitudinal Survey.
- Data Interpretation.


Advantages of HR Audit

- To ensure effective utilization of HR.
- To comply with administrative regulations.
- To inculcates sense of confidence in management.
- To perform a due diligence review for various stakeholders.