Sample Question - HR Audit

QUESTION
I am working as a Human Resource Manager with a Telecom company in India. We need to begin HR Audit for our circles of operation. Since the concept is new to me I would like to understand the methodology and the relevant text/literature on the subject matter. If a few links are available please suggest the same.
ANSWER
We have pulled together a number of resources to assist you in understanding HR Audits. Before referencing those attachments, we wanted to provide you with some of the basics to be sure you had a clear understanding of an HR Audit.
What is an HR Audit?
An audit is a means by which an organization can measure where it currently stands and determine what it has to accomplish to improve its human resources function. It involves systematically reviewing all aspects of human resources, usually in a checklist fashion, ensuring that government regulations and company policies are being adhered to. The key to an audit is to remember it is a learning or discovery tool, not a test. There will always be room for improvement in every organization.
Why Do An Audit

1) To insure the effective utilization of an organization’s human resources.

2) To review compliance with a myriad of administrative regulations.

3) To instill a sense of confidence in management and the human resources function that it is well managed and prepared to meet potential challenges.

4) To maintain or enhance the organization’s and the department’s reputation in the community.

5) To perform a "due diligence" review for shareholders or potential investors/owners.

What does a full HR Audit entail":

1) Legal compliance

2) Compensation/Salary Administration

3) Employment/Recruiting

4) Orientation

5) Terminations

6) Training and Development

7) Employee Relations

8) Communications

9) Files/Record Maintenance/Technology

10) Policies and procedures (including employee handbook)

11) Communications

 A MERC Human Resources (HR) Audit collects and evaluates information about the state of an organisation's HR practices and policies to determine the overall effectiveness of people management in the organisation. The HR Audit demonstrates to what extent the HR function contributes to organisational effectiveness as a whole, as well as productivity and morale.
The HR Audit helps by:

• providing feedback on the value of the contribution of the HR function to the organisation's strategic business objectives
• assessing the quality of HR practices, policies and delivery
• reporting on extent of statutory HR compliance and remedial action required
• assessing HR and line management relationships and ways these can be improved
• setting guidelines for establishing HR performance standards and
• identifying areas for change and improvement with specific recommendations

MERC HR consultants are experienced HR professionals who objectively analyse the performance of the HR function and its impact on the organisation's performance.
HR Audit

1. Organizations Business Objectives
2. People Management
1. determine people management priorities
2. develop HR strategies and
3. day-to-day HR operations
3. Identify and implement change(s)
4. Evaluate impact of changes from HR audit

Elements of our HR Audit

The HR Audit focuses on the following elements of People Management:

• Organizational Data
• Strategic HRM overview
• Staff Communication and Change Management
• HRM Operational Delivery
• Staff Performance and Morale and
• HR Performance Measures