What Does the Existing Research Say About Effective Human Resource (hr) Audit?
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Question: What does the existing research say about effective Human Resource (HR) audit?
When analyzing a company that is based on financial capability and customer service, most people tend to forget the business practice and legal compliance. As organizations move toward the 21st century, it has become imperative for organizations to understand the effectiveness of HR audits. The audits are organized and unbiased tool to measure the companys policies. To keep HR audit effective, they should be done on regular basis and be done by a 3rd party to receive an unbiased results. Many businesses are confused on what business practices the effective HR audit should be done on and how often it needs to be done. Effective HR audits are done in private sector and public sector. Effective HR audit consists of “diagnosing, analyzing, evaluating, and advising within the boundaries of each functional area of the company” (Olalla & Castillo, 2002). As the paper moves forward, it shows that researchers want effective audits to be conducted but sometimes effective and compliance is a different way of looking at audits. Effective audit can bring results which can be above the regulations and legal policies but they are not always done by all organizations because of resource constraints. Compliance audits are those which go along the lines of meeting the industry standards and meeting the government regulations (Hargis & Bradley, 2011). The size of the organization divides both industry standards and government regulations. Large businesses usually go for the effective audits which can be above the compliance audits while the small businesses strive for effective and compliance audit but most small businesses do not go for above the compliance audit (Ulrich, Brockbank, & Yeung, 1989).
Effective HR audits work in many different areas of the company from Management, Hiring and Employment, Employee Relations, Safety and Security, Workers Compensation, Employee Separation, to Recordkeeping and other documentations. The audit helps the company to understand the companys compliance with the labor laws. Effective HR auditing is a basic tool for better management of a company. Its aim is not only the control and quantifying of the results, but also the adoption of a wider perspective that will aid in defining future lines of action in the company (Olalla & Castillo, 2002). It is necessary to evaluate the results generated by the processes in place and implementation of personnel policies. Effective HR audit discovers if the companys policies are fair, legal and do not create a biased towards any particular group of people in the company. To keep current employees satisfied, an audit can discover the employee performance and the need for promotions for current employees who perform their