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MU0013—HR Audit


Master of Business Administration- MBA Semester 1

MU0013—HR Audit-4 Credits

(Book ID: B1735)

Assignment (60 Marks)

Note: Answer all questions (with 300 to 400 words each) must be written within 6-8 pages. Each Question carries 10 marks 6 X 10=60

Q1. Define Human Resource (HR) Audit. What is the need for HR Audit? What are the various approaches to HR Audit?

Answer. It is mechanism to review the current HR policies, practices and systems to ensure that they fulfill the rules and regulations. The audit also helps in identifying the areas of improvement in the HR function. Nowadays, the audit is done regularly in the organizations.

The HR audit covers various functions of HR like Recruitment, Compensation & Benefits, Performance evaluation, Termination Process and exit interviews etc.


Q2. Write a brief note on staffing. How does an employee orientation program help employees? What are the characteristics of good employee orientation programs?

Answer. According to Harold Koontz, staffing is defined as follows:

“Staffing means filling and keeping filled, positions in the organization structure.” Or “Staffing is the function by which managers build an organization through the recruitment, selection, and development of individuals as capable employees”

Staffing Process

  • Recruitment: It is identifying and attracting capable applicants for employment. it ends with the submission of applications by the aspirants.
  • Selection: It is choosing the fit candidates from the applications received in the process of recruitment.

Q3. What is HR Scorecard? Explain the reason for implementing HR Scorecard.

Answer. HR scorecard measures the HR function’s effectiveness and efficiency in producing employee behaviors needed to achieve the company’s strategic goals. In order to achieve that you would need to:

  • Know what the company’s strategy is
  • Understand the causal links between HR activities, employee behaviors, organizational outcomes, and the organization’s performance
  • And have metrics to measure all the activities and results involved.


Q4. Define competency management. Explain the two frameworks of competency management.

Answer. Competency management is an old, widely used practice that consists of all of a company’s formal, organized approaches to ensuring that it has the human talents needed to meet its business goals. Once the skills are defined, each employee (or subcontractor) is described based on these standardized definitions. These skill and personnel descriptions are then used to forecast needs, determine training goals, and measure progress toward those


Q5. Write a brief note on workplace policies and practices.

Answer. “Many of our employees work in safety-sensitive positions. As a part of the hiring process, we require applicants to provide medical documentation, as well as undergo background checks, physical testing and drug tests. Are we asking for too much?”

“Our employee handbook and workplace policies were drafted several years ago. With our evolving business and the recent changes in legislation, we’re concerned that we may no longer be in compliance.”


Q6. What are the areas to be concentrated on for HR Audit? Prepare a questionnaire for conducting an audit for manpower planning.

Answer. Areas that should be audited include, but are not limited to:

  • Legal compliance (EEO, AA, ADA, FMLA, IRCA, etc.)
  • Record-keeping (personnel files, I-9s, applications, etc.)
  • Compensation/pay equity
  • Employee relations
  • Performance appraisal systems
  • Policies and procedures/employee handbook
  • Terminations
  • Health, safety and security (OSHA compliance, Drug-Free Workplace, AIDS in the workplace, etc.)

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