...Project Title: HR Audit INDEX SR NO. | TOPIC | PAGE NO. | 1 | Acknowledgement | 3 | 2 | Executive Summary | 4 | 3 | Introduction to HR Audit | 6 | 4 | Qualitative & Quantitative Indicators for HR Audit | 8 | 5 | Types of Audit | 13 | 6 | HR Audit Process | 17 | 7 | Human Resource Management v/s Performance | 21 | 8 | Approaches to Human Resources Audit | 25 | 9 | HR Audit Tools | 30 | 10 | Checklist for HR Audit | 33 | 11 | Audit Report | 35 | 12 | Audit of HR Results | 36 | 13 | HR Audit in India | 37 | 14 | Conclusion | 40 | 15 | Bibliography | 49 | s ACKNOWLEDGEMENT “For any successful work, it owes its thanks to many” Presentation of this project gives us the feeling of fulfillment. It has taken an exhaustive effort in preparing this project. It took several hours, several days, and several meetings amongst us to make this project work up to its expectations. The faculty members of our college have provided us with great source of inspiration and have provided great help in pursuing this project. Many individuals have contributed in preparation of his project. We take this opportunity to thank few people without whom this project would not have been possible. We would like to thank our faculties for their kind support. Our sincere thanks go to our project guide Prof.Anjali Saida, who helped us through many aspects and whose friendly guidance on many issues helped us for the betterment of our project. Without her support...
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...What is HR audit? A healthy HR function in an organization is as important as the physical and mental well being of a human body. Typically the basic reason why organizations prefer to conduct an HR audit is to get a clear judgment about the overall status of the organization and also to find out whether certain systems put in place are yielding any results. HR audit also helps companies to figure out any gaps or lapses and the reason for the same. Since every company plans certain systems and targets, an HR audit compares the plans to actual implementation. The concept of HR audit has emerged from the practice of yearly finance and accounting audit, which is mandatory for every company, to be done by external statutory auditors. This audit serves as an examination on a sample basis of practices and systems for identifying problems and ensuring that sound accounting principles are followed. Similarly, an HR audit serves as a means through which an organization can measure the health of its human resource function. Organizations undertake HR audits for many reasons: 1 To ensure effective utilization of human resources. 2 To review compliance with tons of laws and regulations. 3 To instill a sense of confidence in the human resource department that it is well-managed and prepared to meet potential challenges and opportunities. 4 To maintain or enhance the organization's reputation in a community. An audit is a systematic process, which examines the important aspects of the function...
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...Human Resources Audit in Industries HR Audit is a comprehensive evaluation of the entire gamut of HR activities:- • HR Cost • HRD activities • Health, Environment & Safety • Legal Compliance • Quality • Compensation & Benefits Areas of Human Resources Audit The human resources audit must evaluate the personnel functions, the use of procedures by the managers and the impact of these activities on the employees. A human resources audit covers the following areas as identified by Robert L .Mathis and John H. Jackson:- 1. Audit of various functions of human resources 2. Audit of managerial compliance 3. Audit of environment culture in the industry 4. Audit of corporate or industrial strategy 1. Audit of various functions of human resources This covers all human resources activities including: • Determination of objectives of each activity and identification of responsibility of performance, Review of performance, developing an action plan to correct deviations between results and goals and follow-up of action plan. • It also combines all the Functional areas of Human resources process carried out in the manufacturing process. 2. Audit of managerial compliance Legal Provisions is most important as any violation makes the management guilty of an offense. This covers Audit of managerial compliance of personnel policies, procedures and legal and welfare provisions. 3. Audit of Environment Culture in the industry The working culture in any industry...
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...HR Audit “The things that get measured gets managed” www.humanikaconsulting.com Agenda 1. Introduction 14. General Auditing Method 2. Challenges For H.R. 15. Methods Of Hr Audit Department Eight Challenges 16. Research Approaches To Audits 3. Meaning & Purpose Of Hr 17. Hrm Auditing Process Audit 4. Purposes Of Hrm Auditing 5. Objectives Of Hr Audit 6. Benefits Of HR Audit 7. Frequency Of HR Audit 8. The Principles Of Effective Hrm Auditing 9. Types Of HR Audits 10. The Scope Of Human Resource Audits 11. Hrm Audit Measures 12. HR Standards 13. Task Auditor INTRODUCTION • “How does a firm know if its human resource practices have an impact on business results? • “..most professional service firms and organizations complete an extensive audit of their financial statements on an annual basis, but the programmes involving “people”, such as recruiting, training or pay-for-performance are seldom given the same scrutiny.” • “..the starting point for enterprises wishing to manage their human capital successfully and seeking a labour competitive advantage is activities of the HR department.” CHALLENGES FOR H.R. DEPARTMENT EIGHT CHALLENGES IDENTIFIED BY DAVE ULRICH (1997) Globalization The H.R department will need to create models and processes for achieving global activeness, effectiveness and competitiveness. Managing the Value Chain for Business Competitiveness Innovation Faster Decision Making Price or Value Advantage Effective linking with Suppliers ...
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...An HR audit is like an annual health check, says EJ Sarma. It plays a vital role in instilling a sense of confidence in the management and the HR functions of an organisation A healthy HR function in an organisation is as important as the physical and mental well being of a human body. Typically the basic reason why organisations prefer to conduct an HR audit is to get a clear judgement about the overall status of the organisation and also to find out whether certain systems put in place are yielding any results. HR audit also helps companies to figure out any gaps or lapses and the reason for the same. Since every company plans certain systems and targets, an HR audit compares the plans to actual implementation. The concept of HR audit has emerged from the practice of yearly finance and accounting audit, which is mandatory for every company, to be done by external statutory auditors. This audit serves as an examination on a sample basis of practices and systems for identifying problems and ensuring that sound accounting principles are followed. Similarly, an HR audit serves as a means through which an organisation can measure the health of its human resource function. Organisations undertake HR audits for many reasons: 1 To ensure effective utilisation of human resources. 2 To review compliance with tons of laws and regulations. 3 To instill a sense of confidence in the human resource department that it is well-managed and prepared to meet potential challenges and opportunities...
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...short summary of the contents of the document.] “ACCESS THE ASSESSOR ” Checcking up on your hr department, every once in a while, can prove to be very useful. Tanaya thomas reveals the significance of an hr audit “ACCESS THE ASSESSOR ” Checcking up on your hr department, every once in a while, can prove to be very useful. Tanaya thomas reveals the significance of an hr audit C heccking up on your HR department, every once in a while, can prove to be very useful. Tanaya thomas reveals the significance of an HR audit . Just like the human body , an annual check up of the organization can help ensure proper functioning and mitigate problems. Of Course, one of the organization’s vital organ (read: its HR department) cannot be ignored. Hence, auditing HR is as essential as auditing the finance of auditing department. An HR audit serves as a means through which an organization can measure the health of its human resource function . “An HR Audit can help clarify the roll of the HR department; stream line and improve management practices and HR system; advance recruitment policies; understand the leadership style at the top; reduce HO cost; implement cost effective training; increase focus on human competencies; strengthen accountability through sound performance appraisal systems and other initiatives,” points out Bhaskar Bhandary , director - HR, Acer India. Hence, a through audit can help the organization up employee...
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...Program/initiative as listed in YPPB 2013 Strategic Plan (file YPPB 2013 Plan v1.0.ppt – slide 8-10). The relevant department must complete the items below for each program/initiative. Program/Initiative | Corporate Social Responsibility | Department | Corporate Services | Brief Description | To reach out to more to the public and extend assistance and at the same time introduce branding Yayasan further | Target Launch Date | Jan 13/Mar13/Dec13 | Duration | 1 Day Per Event | | Program Objective | Objective must be measurable (target achievement) and can be basis for KPIs 1. To expend CSR initiative for YPPB every quarter | Target Participants / Group | Target No. of Pax | 20-30 (YPPB Staff & Volunteers) | 1. For the Hereafter – Aid to Surau/Musolla/Madrasah outside KL 2. Clean & Go – Community service at nursing home/pet shelter 3. Childrens Day 4. Buka Sekolah Drive – Orphanage/Children Single Mother Group/Children from Underprivileged background | Activities | Duration | List of activities to be carried out during the program/initiative in chronological order including decision required 1. For the Hereafter – Upgrade of amenities (carpets/curtains/abulation area etc) 2. Clean & Go – Gotong-royong/mural painting/recreational area 3. Childrens Day 4. Buka Sekolah Drive – School registration fee and equipment to 100 Primary and Secondary School kids. | 1 Day1-2 Days1 Day1 Day | Potential Partner / Vendor | Scope of...
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...SKILLS AUDITS “A key piece of information an organisation needs to improve is to know what skills and knowledge the organisation requires and what skills and knowledge the organisation currently has’ (www.cognology.biz/sawhatis.htm). 1. Introduction What is a Skills Audit? A skills audit is essentially a process for measuring and recording the skills of an individual or group. The main purpose for conducting a skills audit in an organisation is to identify the skills and knowledge that the organisation requires, as well as the skills and knowledge that the organisation currently has. Skills audits are also usually done to determine training needs so an organisation can improve its skills and knowledge. However skills audits are also completed for other reasons such as restructuring and deployment. A skills audit gathers more information than simply your current qualifications level. It firstly identifies the skills matrices for the organisation and then delves into what the current competencies are of each individual against this predefined set of skills required to fulfill a specific role. The outcome of the skills audit process is a skills gap analysis. This information will enable the organisation to improve by providing the appropriate training and development to individuals to cater for the identified skill gaps. The skills audit process will also provide information which can be used for purposes such as internal employee selection and to ensure...
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...Responsibilities Full HR Spectrum Management as below: Payroll Management * Manage the accurate and timely completion of payroll processes. * Prepare monthly salaries cost reports by cost centre for the respective accounts departments and to provide ad hoc payroll reports requested by business units. * Liaison with external auditors on payroll audit. * System test and co-ordinate with IT provider on any payroll related HR system changes, upgrade, enhancement or problem logs. * Administer staff monthly claims and deductions. Staffing And Recruitment * Deliver high quality candidates by sourcing, screening, interviewing and assessing applicants that match the qualifications, skills and the experience specified. * Conduct Orientation Day for newly join employee * Update and maintain staff movement data and organizational charts. * Arrange corporate mobile phone, petrol card and/or email setup Attendance & Leave Management * Administer staff attendance and leave application * Compensation And Benefits * Administer staff benefits to ensure that it is according to the approved HR Policies and Procedures Employee And Labour Relations * Maintain good interpersonal relationship among employee. Labour Laws * General correspondence with statutory bodies. Ensure compliance with all statutory requirements, its deadline and to keep abreast of current legislation. Trainings And Developments * Organise...
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...Controlling System Within Unilever Commerce Essay Unilever has an immovable control experience, which is agreed and frequently reviewed by the Boards. This incorporates risk management, internal control procedures and operations control which are planned to provide rational, but not complete, security that assets are refreshed, the risks facing the business are being addressed and all information required to be released is reported to the Group's senior management, including where appropriate the Group Chief Executive and Chief Financial Officer, within the required timeframe. INTERNAL CONTROL AND PROCEDURES: Unilever control framework is supported through a code of Business Principles which set values of efficiency. It needs that senior manager's in each department controls the value of internal control because they are a key to huge risk factors. The Boards have individually all the responsibility for establishing procedure to check the effectiveness of internal control and reviewing and revaluating them their effectiveness. There is a day- to- day review of effectiveness of internal control system and Unilever monitor its risks with ongoing basis. OPERATIONS CONTROLS: Operations Controls is the control in which you make sure that operations activities are carried out as they were planned. Operations Controls include following controls: Financial Control Budget Control Inventory Control Maintenance Control Cost Control FINANCIAL CONTROL: Managers at Unilever put...
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...accounting firm Susan Regas, 25 year old senior accountant in the same firm Giles and Regas been dating for four months They well know firm policy does not permit different ranks to date Most of the staff seem to know about their relationship Regas was assigned to audit CAA industry under Giles supervision Giles and Regas spending personal time during workday Ruth Revilo warns Regas not to jeopardize Regas future by dating Giles Gile and Regas goes to farewell dinner to put relationship aside until CAA audit ends Mark Sax, CAA controller saw Giles and Regas at dinner Mark brings up his concern to Herb Morris, the managing partner Mar questions the audit efficiency and billing Morris promises to get back to Mark after investigation 2. Ethical Issue Giles and Regas relationship lead to conflict of interest and damaging the reputation of the firm. 3.Stakeholders and Obligation CAA Management and Mark Sax. They are the stakeholders expect auditors to carryout their service with due professional care within a constrained time period. Giles and Regas here spends their personal time during workday. They also have the potential to cover up for each other if one or both of them screw up on audit because they were not focusing on their performance. Saduga & Micha and Herb Horris and all firm employee. Giles and Regas behavior represents their firm. Therefore, their action directly relates to firms credibility and reputation which affects everyone in the firm...
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...sales manager at Good Health Inc. (GHI). The firm distributes pharmaceutical products and medical/dental equipment to pharmacies in France. An audit by the outsourced internal audit firm Alan & Blanche revealed fraudulent activity in Cook’s sales department. Cook took advantage of the internal control weaknesses present in GHI operations and was able to make a personal gain to the tune of $200,000. Cook’s main fraud was a result of keeping pharmacies in the dark in regards to the rules associated with bonuses and promotional products from hitting targets. This way Cook could favor the pharmacy of his choice, and in return would accept kickbacks from favoring particular pharmacies. Also due to pushing high sales, without netting in sales returns, he was not only able to receive higher commissions based on inflated sales, but also create a name for himself that he could use to ignore many rules, specifically HR policies. Control Weaknesses There were many kinds of control weaknesses in the “Unearthing Pharma Fraud” Case; the first, limited controls related to the control environment. With no processes set to interview employees who left the division or the company, in order to review employee performance or management performance. No controls were set to prevent management override, as Cook hired clerks, on company payroll without HR knowledge. Another lack of control was found on the process level control side. The process for issuing promotional and bonus products...
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...companies of the like certainly decreased. Of course, the chief officers/executives were responsible for the fraudulent financial reporting and therefore, confidence crisis. Kenneth Lay, Jeffrey Skilling, and Andrew Fastow intentionally participated in financial reporting tactics that violated GAAP and general ethical standards. This caused such a crisis because investors, clients, and the general people expected a lot of ethical success from Enron and Andersen because they appeared to be doing good, legitimate day to day business and spoke very highly of themselves and their practices. 2) List three types of consulting services that audit firms are now prohibited from providing to clients that are public companies. For each item, indicate the specific threats, if any, that the provision of the given service could pose for an audit firm's independence. (Hint: See SOX) The Sarbanes-Oxley Act banned the provision of consulting services...
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...and compliance programs, and it offers recommendations on how audit committees can strengthen them. Government investigations, bankruptcy receiver reports, and numerous books provide a rich source of information about the major corporate disasters of the first decade of the twenty-first century. Although the financial implosions, starting with Enron and ending with Lehman Brothers, have significant differences, one common corporate governance theme can be seen: The board, and, in particular, the independent directors, did not have the information required to properly perform their oversight duties, even though such information was known to various members of management. In almost all the cases, the directors claimed they were misinformed or “duped” by the CEO or CFO.1 In this respect, these disasters were partly the result of corporate governance failure and, in particular, a failure to establish a robust whistleblower system as an internal control. Those 1 Frederick Lipman, Whistleblowers: Incentives, Disincentives and Protection Strategies, (Hoboken: John Wiley & Sons, Inc. 2012), pp. 82-83. failures also offer evidence that the independent directors of companies that suffer shareholder debacles tend to lose their business reputation and their other directorships.2 The audit committee members and other independent directors of these companies relied heavily on the fact that the company was receiving clean audit...
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...(usually quarterly) regarding the evaluation of the effectiveness of the company’s internal control over financial reporting (Pricewaterhouse Coopers, LLC, 2010). Companies contemplating on going public should discuss their section 404 plan and timeline in their marketing documents (Pricewaterhouse Coopers, LLC, 2010). Sections 302 and 906 of SOX also requires that the CEO and the CFO to certify that the financial statements are accurate, comply with requirements and information are fairly presented (Pricewaterhouse Coopers, LLC, 2010). 2. Audit committee: An audit committee is required by SOX even if it’s just composed of one member (Pricewaterhouse Coopers, LLC, 2010). 3. Board of directors: SOX requires that majority of the board of directors are from outside the company and at least one member should have financial background (Pricewaterhouse Coopers, LLC, 2010). 4. Auditor relationship: Performance of non-audit services of an external auditor is prohibited by SOX (Pricewaterhouse Coopers, LLC, 2010). 5. Code of ethics: SOX requires code of ethics for senior financial officers (Pricewaterhouse Coopers, LLC, 2010). 6. Loans to company executives: Extending a personal loan to or for any...
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