A Theoretical Outline of Human Resource Audit

Abstract

The Human resource audit is a systematic and scientific analysis of strengths, limitations and developmental needs of existing human resources in a broad perspective of improvising institutional performance. The study of Human resource audit is evolved from the practice of annual finance and auditing which is necessary for every institution. The human resource audit like other audits is a formal discipline designed to analyze, observe the methods, policies, documentation, processes and practices with regard to the organizations Human resource management. In 1960’s Human Resource audit evolved as an important tool for assessing the human resource management. In other way human resource audit is one of the ways to analyze the health or worth of human resource functioning of an institution or organization.  In our country full human resource audit is not in practice. Till now four of hundred companies are only having proper human resources for Human resource audit. Even people working in human resource department don’t have the basic knowledge of human resource audit, because human resource audit is not a statutory obligation. Here in this article we will have a overall glance of human resource audit like background of the Human resource audit and how it is distinct from financial audit, nature and scope of human resource audit, its goals, objectives, approaches and strategies involved in human resource audit, types of human resource audits, tools used for human resource audit, challenges, benefits and limitations of human resource audit.