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Auditing is a process of systematical evaluation of the present activities, documentation, policies, and procedures followed in the HR system.

This process helps in identifying the demand for change and growth in HR functions. It also provides guidance for keeping up consistency with regularly changing guidelines. Thus, HR audit helps in identifying the gap between “present HR functions and the possibly best upcoming HR functions” in an organization.


The process of HR auditing includes following steps:

  • Pre-audit Information: Firstly the company policies, HR manuals, employee handbooks, reports, etc. are collected and reviewed.
  • On-site Review: The next step is to on-site review with the help of questionnaires, surveys, informal discussions, interviews or any combination of these methods to obtain the important information about the company and its members.
  • Record Review: After on-site review the, responses of employees, present HR Records, employee details (absenteeism, punctuality, salary packages, work performance, etc) are recorded.
  • Audit Report: On the basis of the last step, the final audit report is aggregated with the suitable conclusion, outline, and proposals, featuring the qualities and shortcomings of the HR work alongside the important advancements as required.

Quantitative, as well as qualitative details, are required to be collected in the first three steps. The strategy for the collection of data depends on the size of the intended interest group, accessibility of time and kind of information to be gathered.

The HR audit leads to effective use of internal resources and the highest effectiveness of human resources in the organization. In the meantime, it is also valuable in streamlining the HR procedures and activities with the organization best practices and guidelines.

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