Personal audit is a tool for the development of companies in the human resources management area. The exact diagnosis, personal view on the weak and strong companies’ units imply to develop and implement specific changes

Stuss, Magdalena M.

Needs for the process of personal audit process is targeted directed primarily to the position of strategic human resources management. Interested in audit are mainly CEO, mangers and board of directors. Audit is concerned as personnel function, which participate in the implementation of personnel policy in organizations.  The result of the audit is not only information about the  tasks carried out in the area of human resources management but also areas that require system solutions; diagnoses also people’s knowledge in personnel policy area. It is recommended to conduct a personal audit in the organizations, which do not have sections responsible for the human resources - personnel function is implemented as a distributed one or in organizations that there is a need of reorganization

Stuss, Magdalena

Biblioteka Nauki - repozytorium artykuÅÃ³w

Personal audit as a modern human resources management tool

Jagiellonian Univeristy Repository

dr Magdalena M. Stuss   PERSONAL AUDIT AS A MODERN HUMAN RESOURCES MANAGEMENT TOOL   Introduction Needs for the process of personal audit process is targeted directed primarily to the position of strategic human resources management. Interested in audit are mainly CEO, mangers and board of directors. Audit is concerned as personnel function, which participate in the implementation of personnel policy in organizations.  The result of the audit is not only information about the  tasks carried out in the area of human resources management but also areas that require system solutions; diagnoses also people’s knowledge in personnel policy area. It is recommended to conduct a personal audit in the organizations, which do not have sections responsible for the human resources - personnel function is implemented as a distributed one or in organizations that there is a need of reorganization.   1. The definition of a personal audit There are many different views on the best way to human resources management promulgated by practitioners and theorists. In spite of the differences, but they agree on the need to control HRM. Even well established personal strategy, precise planning, efficient sourcing of competent employees and their continuous development and a strong motivation to do a better job has little chance of success, if you run out of effective control. Control in organization is a regulatory mechanism, which combines the results of implementation activities, i.e. personal function, activities related to personnel selection, development and motivating your affiliate, leaving employees with human resources planning. Is therefore an important factor in the whole system of human resources management1. In the literature there are a few terms used in the area of human resources management auditing. We use the concept of a personal audit, audit functions, human resources audit, personnel or HR audit practice. It does not distinguish between these companies understand carrying out audits to choose the definition corresponding to their offer. Detailed distinction both theoretical and practical concepts are in Table 1.  Table 1. Analysis of the concepts  definition according to the scientific literature Human Resorce Management Glossary Personal audit process in which an external or internal person in the organization shall review and assess the people working on the different positions to determine the range of compliance between actual human resource capacity indicators and specific criteria requirements. This process is aimed at the diagnosis of professional qualifications of workers in terms of desirable from the point of view of the organization of the qualifying standards. The scope of the audit personnel should be, first and foremost, a diagnosis of the strengths and weaknesses of employees surveyed in different areas of management (e.g., planning, making decisions, determine the effectiveness of behavior in work-related situations). During the audit of different research methods and techniques, these include, among others: interviews, observations of the working environment, tests for psychological testing of employees or employee teams properties, decision games, analysis of the organizational structures, the analysis of workflow diagrams and information. J. Marciniak The personnel function audit consists of an examination of the fundamental issues related to the conduct of labour affairs throughout the enterprise Personal audit assumes strategic approach to personal                                                           1 Zarzadzanie kadrami pod red T. Listwana, Wydawnictwo Beck, Warszawa 2002,  p.232. functions, based on the utility and operational character. A. Pocztowski Personal audit  is an independent compliance examination of the methodical and human resources state and human resource management system with relevant, previously adopted standards. It is aimed at improving the strategies, processes and methods of human resources management. A.B. Adeyemo, O. Oriola Personnel audit is the systematic, independent review and appraisal of all departmental (personnel) operations, to determine the efficiency, effectiveness and economy of the departmental (personnel) management practices and controls. Personnel Audit entails verification and validation of the compliance of appointment, promotion, payment, background and job performance records.  J. Brown Auditing involves the regular and systematic examination of organizational practices and accomplishments opposite organizational objectives, company policies, legal requirements, and/or professional standards. The purpose of HR Audit is to conduct a more in depth analysis of HR function to identify areas of strength and weakness and where improvements may be needed. definitions according to companies performing personal audits Halibut. Training group Human resources audit is the revision of the Organization held the potential of human capital. Human resources audit is the verification  the form depends on the purpose and the complexity of the information. Determine the objectives of the group are also subjected to the study (these may be individual employees, individual sections or even the entire organization). HR Standard.pl Personnel audit, therefore, is a diagnostic tool used to analyze the status of the personnel in the company. In the centre of its activities are the employees – or human resources in your organization and how to manage them by employers. The main purpose of a personal audit is to prepare the data regarding the need, scope and scale of the changes in employment. In addition, the regular carrying out of the audit in a quite significant manner improves the way one can work in HR Department in the company. In Persona  Audit of the human resources which we have as the goal to check in terms how effective personnel policy is carried out in the company and the personal tools (descriptions, bonus system, reviews, listings, etc.)and the effectiveness with which they are used. Always audit carried out in relation to the strategic objectives and the needs of the Organization at any given time. KPMG HR Audit is the  verification process of  the policies, procedures, documentation, systems and practices with respect to the organization’s HR functions. The purpose of the HR audit is to show strengths and weakness in the HR system and any issues required resolution. HR audit works the best if is focused on analyzing and improving HR function in the organization. Laurdan Associates, Inc. HR auditing process is or should be an independent, objective, and systematic evaluation that provides assurance that: 1) compliance and management requirements are met; 2) business and talent management objectives are achieved; 3) human resource management risks are fully identified, assessed, and managed; and 4) human capital adds value to the organization.  Source: own development on the basis Słownik zarzadzania kadrami pod red. T. Listwan, Wydawnictwo Beck Warszawa 2005, p.11; J. Marciniak, Audyt  funkcji personalnej w przedsiębiorstwie, Oficyna Wydawnicza, Kraków 2005, p.13-14;   A. Pocztowski, 2003, p.449; Adeyemo A.B., Oriola O.,  Personnel Audit Using a Forensic Mining Technique,  IJCSI International Journal of Computer Science Issues, Vol. 7, Issue 6, 2010 November, p.222;  J. Brown, Conducting an HR Audit: How HR Can Better Measure the Effectiveness of its Functions and Programs?, p.2; http://hrstandard.pl/ (28.02.2013); www. halibut.pl (28.02.2013); www.inresona.pl (28.02.2013); KPMG; Laurdan Associates, Inc. 2008.   2. Models of human resources audit  In theory and in practice  you can highlight multiple models of the audit personnel in the human resources management. The choice of appropriate solutions should be determined by the characteristics of the organization and its environment in which such a procedure is to be implemented. J. Brown proposes audit consisting of three phases (Figure 1). The first oneis a general audit  that features the personal background of the whole organization in the human aspect. This category of inquiry is designed to help identify gaps in the effectiveness of the human resources function as an organizational unit of the entire enterprise. The dimensions and elements in this category are general and can be applied to other functional areas (e.g., marketing, finance, service, manufacturing, etc.).  The other concerns the functional efficiency. This category of inquiry aims to identify gaps in the effectiveness of the human resources function as a specialized staff resource. The dimensions and elements are more specific. The third one is the service quality audit. This category of inquiry aims to identify gaps between customer demands and the human resources function's response to these demands.2 It is a comprehensive approach for personnel audit to use its results within the entire organization.  Figure 1. Personnel audit ORGANIZATIONAL EFFECTIVENESS Organization Mission and Purpose Human Resources Structure Management Systems Human Resources Leadership Methods and Standards of Performance Employee Behavior and Well-Being Management Depth Policies and Procedures FUNCTIONAL EFFECTIVENESS Employee Selection and Placement Employee Compensation Courtesy Competence Reliability Responsiveness SERVICE QUALITY Credibility Accessibility Communication Understanding Customer Needs ‘Packaging’ Services Provided   Source: own development on the basis J. Brown, Conducting… op.cit.,  p.12-47.  The second model is the HR Audit ModelTM (Figure 2) which indicates the main areas of the audit - the shot is contextual3 and can be                                                           2 J. Brown, Conducting… op cit., p.12-47. 3 S.Rajendran, M. Chandrasekaran, THE EVOLUTION… op. cit, p. 4-5 created individually in each case. Its versatility allows to apply model both in the area of business and in the public sector. The authors have developed a model based more on training audits than real solved.  Figure 2. HR Audit ModelTM    ACTIVITIEStasks and actions that create or implementemployment policies, practices, procedures, and programsBEHAVIORSActions that demonstrate acommitment to andimplementation of policiesand proceduresRISKSCurrent or future eventsthat have the potential tocause a loss or perilOUTCOMESQualitative and quantitativeresults of the HRmanagement andemployment practicesINTERNAL CONTROLSProcesses, tests, andassessments to ensurecompliance Source: S.Rajendran, M. Chandrasekaran, THE EVOLUTION OF HR AUDITS, Cauvery Research Journal, Jul. 2010 – Jan. 2011, Volume 4, Issue 1 & 2, p.1-5.  Another model presents J. Marciniak (Figure 3), dividing the whole action into two major phases4:  audit of the human resources administration,   audit staffing procedures. This approach indicates a need for a dual perspective of audit model in HR function and by inquerying the entire organization in the field of HRM.                                                           4 J. Marciniak, Audyt  … op cit., p. 56-59, p. 98-105  Figure 3. Polish model of personnel function audit  Audit of the human resources administration Procedures and regulationsPersonnel documentation Relations with legal institutionsLegal complianceHealth and safety at workErgonomics and working conditions Working time Collective legal relationsAudit of staffing proceduresPlanning for personnel and recruitmentAnalysis of personnel statusAssessment of the workRecruitment and acquisition of personnelAdaptation of the development and training Compensation Non-financial motivationThe mobility of personnelPersonnel restrictionsSocial fund share  Source: own development on the basis J. Marciniak, Audyt  … op cit.,p.56-59, 98-105.  The value of the model is that it helps organizations5:  assess current HR management and employment practices;   identify and diagnosis systemic problems;  evaluate and predict the impact of corrective measures;   develop a plan of action;  determine the ROI of such actions.   3. Areas for personnel audit Personnel audit in practice  mainly depends on the testing subject area.  Some tests are conducted normally, for example, regulations or HR documentation, other depend on the decision whether the personnel audit is expected to be in terms of procedures and standards, or in the field of                                                           5 S.Rajendran, M. Chandrasekaran, THE EVOLUTION… op. cit, p.1-5. motivation, competence, career paths -  “the soft aspects” of HRM. The table 3 contains the main content of selected audits carried out by various audit firms. Each  audit plan was commented in terms of use and benchmark.  Table 3. Personnel audit area.  Auditor Audit area Comment The Employers’ Choice Inc. - Workplace Productivity and Climate - Policies and Procedures - Workforce Planning - Recruitment and Selection - Employee Orientation - Training and Development - Compensation and Benefits - Performance Management - Health and Safety - Termination Practices - Union Practices - Human Resources Information Systems - Privacy the audit was covered both formal aspects of management, strategic and operational area-related to HRM CompetiveEdgeHR - Personnel Files - Performance Evaluations - Independent Contractors - Other Records (Employee Benefit Plans, I-9’s6,  Payroll or other records, IRS info) - Occupational Safety and Health  - Employee Polygraph Protection the audit was carried out mainly in the field of compliance, procedures and other regulations concerning employees in your organization KPMG - Manpower Planning - Recruitment and Selection - Documentation Maintenance and - Legal Compliance - Severance and Termination - Compensation and Benefits related - function - Performance Management - Training and Development - Communication and Coordination the audit was conducted mainly on the basis of the HRM functions, supplemented by audit staff and documentation                                                           6 I-9 is verification employee’s procedure and legal authorization employment in the USA   - Work Environment – Safety & Health - Disciplinary Procedure HR Audit: 101 - Compliance & Recordkeeping - Hiring & Onboarding Practices - Policies & Procedures - Performance Management & Termination selected areas of general audits were individually built for the needs of a specific company Sensible Human Resources Consulting LLC - Roles, head count, and HR information systems (HRIS)  - Recruitment  - Documentation  - Training, development, and career management  - Compensation and benefits  - Performance measurement and evaluation  - Termination and transition  - Legal issues and personnel policies  general audit in terms of both management topics as well as formal in HRM  Source: own development on the basis CompetiveEdgeHR; The Employers’ Choice 2009; KPMG; HR Audit: 101,2010; Sensible Human Resources Consulting LLC  Making a selection within the audit subject can be directed to the answer to the question-what may be the results of the audit. This type suggests J. Marciniak. The result of the personnel audit might be as the following7:  reduce costs related to the human resources management,   better HR department organization,   raising the level of line managers professionalism and HR cooperation management enterprise,  develop new or enhance existing employee management regulations (organizational rules, labour and remuneration),  the introduction of the latest IT solutions and designs for the administration and human resources management,   to improve the quality of the personal employees’ files and other employment-related documents,                                                           7 J. Marciniak, Audyt  … op. cit., p.13.  adaptation of existing designs to suit staffing documents company   analysis of working time systems and their settlement,  streamlining efforts to increase work discipline,  improvement in company policies and procedures (for example, hiring and recruitment, adaptation and training of staff, circulation of documents)  practical use personal strategy assumptions.   Conclusion Personal audit is a tool for the development of companies in the human resources management area. The exact diagnosis, personal view on the weak and strong companies’ units imply to develop and implement specific changes. Among the general effects of the personnel audit, you can specify:  reducing risk, complying with the law,   auditing for HR best practices,   benchmarking the organization (benchmarking of the quality and efficiency of HR processes),  as compared with industry best practices using HR Key performance indicators  information: o to carry out the activities was launched by our personnel policy area, o to make decisions regarding the management of personnel management area in a long-term perspective.  identification of HRM strengths and weaknesses including a proposal for improvement measures,  the introduction of new or upgrading existing staffing procedures,  review, based on the client´s requirements, compliance with the legal regulations relating to employer – employee relations ,  the modernisation of human resources administration,   improving cooperation within the framework of the HR Department ,   improving the conduct of formal documentation for the personnel functions (personal files, contracts, formal prints),  raising employee satisfaction with working,  evaluation change management tools.   Bibligraphy  [1] Abrams S.,  HR Audit: 101, Nonprofit HR Solutions White Paper, 2010, May  [2] Adeyemo A.B., Oriola O.,  Personnel Audit Using a Forensic Mining Technique,  IJCSI International Journal of Computer Science Issues, Vol. 7, Issue 6, 2010 November  [3] Brown J., Conducting an HR Audit: How HR Can Better Measure the Effectiveness of its Functions and Programs?, International Public Management Association for Human Resources, http://www.ipma-hr.org/ (15.02.2012) [4] CompetiveEdgeHR, www. competiveedgehr.com (15.02.2012) [5] http://hrstandard.pl/  (28.02.2013) [6] KPMG, www.lk.kpmg.com (25.02.2013) [7] Laurdan Associates, Inc., (2008), http://www.laurdan.com (15.02.2012) [8] Marciniak J., Audyt  funkcji personalnej w przedsiębiorstwie, Oficyna Wydawnicza, Kraków 2005 [9] Rajendran S., Chandrasekaran M., THE EVOLUTION OF HR AUDITS, Cauvery Research Journal, Jul. 2010 – Jan. 2011, Volume 4, Issue 1 & 2 [10] SAMPLE HR AUDIT CHECKLIST , Sensible Human Resources Consulting LLC, http://www.coloradononprofits.org/wp-content/uploads/SAMPLEHRAuditChecklist.pdf (16.02.2012) [11] Słownik zarzadzania kadrami pod red. T. Listwan, Wydawnictwo Beck Warszawa 2005 [12] The Employers’ Choice,  Human Resource Soluction  Systems&Training The Employers’ Choice Inc. 2009 March [13] www. halibut.pl (28.02.2013) [14] www.inresona.pl (28.02.2013) [15] Zarzadzanie kadrami pod red T. Listwana, Wydawnictwo Beck, Warszawa 2002,    Summary Personal audit is a tool for the development of companies in the human resources management area. The exact diagnosis, personal view on the weak and strong companies’ units imply to develop and implement specific changes.  

Personal audit as a modern human resources management tool

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Biblioteka Nauki - repozytorium artykuÅÃ³w

Jagiellonian Univeristy Repository

Personal audit as a modern human resources management tool

Abstract

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Biblioteka Nauki - repozytorium artykuÅÃ³w

Jagiellonian Univeristy Repository

Biblioteka Nauki - repozytorium artykuÅÃ³w