Hr Audit

HR Audit

Human Resource is the most important aspect of business, especially for small business owners who have limited staff and are required to use a varied set of skills. According to Snell and others (1996), modernization has brought with it the use sophisticated machinery and other technology to business. But the most eminent part of making the most out of these is the right use of it, and this depends on employees with the right set of skills and attitude. Human resource audit plays an important role in reviewing the various aspects of human resource and if they are working for the best interest of the business and society.

In comparison to big businesses who have well differentiated departments for various functions, small Business owners are the ones who need employees with a wide variety of skills For carrying out an effective HR audit a competent audit professional should have a various set of traits. First of all he/she should have a sound knowledge of the laws prevailing in the Human Resource Management. An ideal Audit professional should be unbiased and open, expressing their opinions and views backed with professional proofing material. It is important to keep in account the difference in auditing big businesses and small businesses. Small businesses usually have overlapping authority, unlike big businesses where there is a clear differentiation of authority. For instance, an employee who carries out the transaction might be the one who records it. This is one of the most important factors that, small businesses need audits especially in Human Resources. Employees in small businesses should have a good working relationship with their employers and there should be transparency in the working environment in order to avoid frauds. Reviews should be made in the hiring and orientation method which are the most essential part of Human Resource Management. A good hiring procedure should be able to get the right candidate with the right set of skills and...