Human Resource Audit Performed Exclusively by:
1.0 Organizational Design
1.1 Evaluate the organizational business goals,
direction and strategy.
a. Are the goals well defined and measurable?
b. Are they compatible or conflicting?
c. How successful is the organization at achieving its goals?
d. What are the performance standards? Are they qualitative
and/or quantitative?
e. Who determines whether the goals are attained?
1.2 Review Mission and/or Philosophy Statement
a. Is the statement clear and understandable?
b. How is it communicated?
c. What is the management philosophy?
d. Is it consistent with the identified business goals?
e. Are there any "sacred cows" that should be avoided?
1.3 Assess the organizational structure and review the
infrastructure
a. Is there an organizational chart?
b. Are there formal reporting relationships, including the number
of levels in the hierarchy and the span of control?
c. How are employees grouped together to form departments? By
function? By product ? Geographically?
d. What is the level of communication, cooperation and
integration between departments?
e. Does the structure support the current business environment?
1.4 Assess the organizational stage of development
a. Does the organizational design support its size, growth and
technology?
b. What type of controls are in effect?
2.0 External Environment and Influences
2.1 Evaluate the external influences on the organization
a. Industry:
What are the competitors within the same business?
What other industries do they compare with?
Are there target companies they want to compare with? Why?
b. Human Resources:
Is there an abundant supply of trained, qualified personnel
available?
What types of personnel do they recruit? What is the
availability?
Financial Resources: What is the availability of money?
Are interest rates favorable?
Market: What types of customers are serviced? What is the
level of customer satisfaction? How are the following measured -
reliability; responsiveness; and the level of assurance.
Technology:
Economic Conditions: What is the general economic health
of the country or region where the organization operates? Assess the
unemployment rates, consumer purchasing power, interest rates, and
inflation.
Government: What are the regulatory, legal and political
systems that surround the organization and determine the amount of freedom
it has to pursue its goals?
Sociocultural: What are the demographic characteristics
(composition of the work force) and the value systems which effect the
organization?
International: Do events and opportunities originating in
other parts of the world effect the organization? (E.G.: exchange rates,
language, religion, customs, government regulations, etc.)
2.2 Evaluate the level of environmental uncertainty
a. Does it operate within a simple or complex environment;
within a dynamic or static environment; stable or unstable?
2.3 Determine the level of responsiveness to uncertainty
a. Evaluate the level of resource dependency
b. How much control can be exerted over environmental resources?
3.0 Human Resource Planning
3.1 Provide an overview of how the business plans (e.g.;
major changes in sales, production; and/or technology) are used to
anticipate future human resource requirements.
a. Estimate the future HR requirements based on business
plans. Create an inventory of the type of employees needed to
effectively meet the goals?
b. How will needs and availabilities be reconciled?
c. Is there a formal process to deal with the anticipated gaps
between the current skills and future requirements?
d. Will a restructuring or reorganization be required? Will there
be a training process to enhance skill requirements?
3.2 Determine how Affirmative Action planning is
integrated with the overall HR planning.
a. Are utilization analyses conducted to determine whether,
and to what extent, women and minority groups are underrepresented in
various job categories.
b. Where underutilization is discovered, are goals and timetables
set to amend the problem?
c. What type of formal or informal programs exist to address and
improve the utilization of qualified employees.
3.3 Determine the effectiveness of the current system of
gathering, processing and reporting data and employee information.
a. Is there a comprehensive HRIS system?
b. Are discreet pieces of information captured about employees
and their jobs.
5.3 Assess the
recruitment methods
a. How effective are the methods being utilized?
What criteria is being used to assess recruitment:
pre-entry; during entry and post-entry?
5.4 Review the
activities and process through which individuals are selected
a. What is the screening process?
b. What are the methods of conveying job and organizational
information?
c. What are the techniques for obtaining job-related
information about the applicant?
d. What selection criteria are being utilized?
e. What are the methods for using information in selection and
placement decisions?
f. How are candidates matched to the job?
g. Are individuals being fairly and legally placed in a
nondiscriminatory manner?
h. What are the retention rates?
5.5 Are affirmative action goals (and other legal
obligations regarding the makeup of the workforce) being met?
6.0 Salary Administration
6.1 Review the
Salary Administration Program
a. What is the pay philosophy?
Pay-for-Performance?
Seniority?
Pay-for-Knowledge?
b. Is it consistent with the overall goals of the company?
6.2 Review
compensation methods and administration.
a. Are they are administered within legal regulations?
b. What job evaluation process is used? How often are jobs
re-evaluated?
c. How are compensation rates determined? Market driven?
d. Is there internal equity among jobs? Are there salary levels
and rates?
e. Is there external equity?
6.3 Evaluate how employees are rewarded over the short
and long term.
a. Are the reward systems linked to and consistent with
organizational goals?
6.4 Review the
promotion and/or advancement procedures
a. Are rewards distributed based on clearly set job-related
criteria?
b. How are incentives used?
c. Are the appropriate behaviors being rewarded?
6 .5 Assess employee satisfaction and the organizational
climate.
a. What are the employee perceptions of the pay program?
b. What is the retention rate?
c. Absenteeism rate?
d. Productivity levels?
6.6 Review employee
services and perquisites.
a. Are they typical of those offered at similar or competitive
organizations?
7.0 Performance Appraisal & Evaluation
7.1 Review the
method of measuring and evaluating performance:
a. What are the means of gathering performance data?
b. Who determines the minimum acceptable performance standards?
c. How valid are the methods used?
d. How is appraisal information used to make personnel decisions?
7.2 Review current job descriptions
a. Do they contain a comprehensive statement of duties and
skills?
b. Are they current and up-to-date?
c. Are employees aware of their job responsibilities?
7.3 Evaluate the job
evaluation procedure
a. How often and by whom are they performed?
b. Are the minimum acceptable standards of performance clearly
identified.
c. How are performance deficiencies handled?
d. Is training provided?
e. What type of appraisals are conducted? 360; Peer group?
8.0 Training & Development
8.1 Evaluate the
training and development program.
a. What are the goals of the program?
b. Are they consistent with the overall organizational goals?
c. What is the primary purpose of the program? To improve
performance levels and/or prepare employees for new jobs
d. How are the instructional objectives set?
e. How are instructional approaches and techniques set?
On-the-job; off-the-job?
8.2 Review the selection criteria for training pool.
a. Is succession planning utilized?
b. Is a formal needs analysis conducted?
c. How are training needs diagnosed?
8.3 Assess
the Training Program
a. Who develops the training program?b. How are instructional
objectives set?
c. How is the programs effectiveness determined?
d. Are special training programs provided for women and
minorities under affirmative action plans?
8.4 Evaluate the
overall employee development effort
a. Analyze the efficiency index.
b. Can changes in profitability, sales, turnover be attributed to
the program?
c. What is the level or quality of the products and/or services
provided?
d. How productive is the organization compared to its
competitors?
9.0 General Organizational Considerations
9.1 Evaluate the consistency of the policies
a. Are the policies consistent with one another other?
b. Do they support and fit with the goals of the organization?
PLEASE NOTE:
THE ABOVE PROCESS IS INTENDED FOR AUDITING PURPOSES
ONLY. CSI’s INTENT IS TO REVIEW ALL PROGRAMS IN AN EFFORT TO
IMPROVE ORGANIZATIONAL EFFECTIVENESS AND REDUCE THE EXPOSURE TO UNWANTED
LAWSUITS. FINAL POLICY AMENDMENT SHOULD BE REVIEWED AND APPROVED BY
LEGAL COUNSEL.
