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MU0013 Q.1 Discuss the conceptualizing of HR Audit.

Answer: As the term audit has evolved, It is becoming increasingly specific, until the term functional audit has emerged. The objective of a functional audit is to diagnose, analyze, control, and advise within the boundaries of each functional area of the company.
The HR audit is also a functional audit which emphasise on the well being of HR functions in the organisation. Thus, as a first approach, one could say that HR auditing consists of diagnosing, analyzing, evaluating, and assessing future lines of action within the framework of HRM.

HR auditing is one of the basic tools for the management of a company. It not only
attempts to control and quantifying of results, but also the adoption of a wider perspective
that will aid in defining future lines of action in the HRM field.
HR auditing must perform two basic functions [Cantera, 1995].
· it must be a management information system whose feedback provides
information about the situation in order to facilitate the development of managing
processes or the development of HR.
· it must be a way of controlling and evaluating the policies that are being applied,
as well as the established processes.
In the above sections, you have already realizedss that in order to secure the operative
efficiency and user or client satisfaction, an appraisal of the results of the HR function is
necessary. The results can be valued through their cost (a measurement internal to the
function) [Walker, 1998]. This would lead the company to consider some basic points:
· There are adequate HR policies being developed in the organisation or not.
· There are the desired results being obtained from HR policies being followed.
· The extent to which HR policies add value to company
The main objective of this work is to offer a few guidelines for the appraisal of the HR
function, which is in itself the basis for the auditing process. The purpose is to set
conceptual limits for its content and to present the different approaches with which the
HR audit can be presented.


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