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.