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Major Areas Covered by a Human Resource Functions Audit

topics that affect the department’s performance. For each {tern in the figure, the audit team should

  • Identify who is responsible for each activity
  • Determine the objectives sought by each activity
  • Reuieu: the policies and procedures used to,,,bieve those objectives
  • Sample the records in the HR information system to learn if policies and procedures are being followed correctly
  • Prepare a report commending proper objectives, policies, and procedures
  • Develop an action plan to correct errors in objectives, policies, and procedures
  • Follow up on the action plan to see if it solved the problems found through

Obviously, audits are time-consuming. As a result, small firms use ad hoc arrangements that often limit the evaluation to selected areas. Very large organizations have audit-teams similar to those used to conduct financial audits. These teams are especially useful when the department 15 decentralized into regional or field offices, as is the case at the State Farm Insurance Companies. Through the use of audits, the organization maintains consistency in its practices even though there are several offices in different locations. And the mere existence of a corporate audit team encourages compliance and self-audits by the regional offices between visits.”

Cliff Swain, a regional HR manager, realized that his chances for promotion to corporate headquarters depended on how well his region’S r I fices performed. The corporate audit team reviewed his region’S per’ mance every June. In preparation for the audit, he had each HR offl (; I the southwestregion conduct a self-audit in April. Then, in early tv’,  the administrators from the four branches met in Phoenix to review th results. Errors uncovered through the audit were corrected if possible. When the corporate audit team completed its rev.ew in June, it always gave Cliff’s region high marks for compliance with company policies 20a employment laws.

Posted on September 7, 2014 in The Human Resource Management Model

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