Universally known as the HR Audit, there has been a conscious paradigm shift of terminology as the term “Audit” brings forth images of the yearly finance and accounting audit, which bred fear in those so “Audited”. Hence, the HR Audit has evolved to be called, a more pleasant – “HR Systems Review”. It sometimes goes by the name of the Personnel Function Review or even the Continuous Inventive Program.
The concept of the HR Systems Review did emerged from the practice of yearly finance and accounting audit, which served as an examination of practices and systems for identifying problems and ensuring that sound accounting principles were followed. An audit is defined as a systematic process, which examines the important aspects of the function and its management, and is a means to identify strengths, weaknesses and areas where rectification may be warranted.
It is from there that the HR Systems Review evolved as it serves as a means through which an organization can measure the health of its Human Resource function.
The basic reason why organizations conduct an HR Systems Review is to get a clear judgment about the overall status of the organization and also to find out whether certain systems put in place are yielding any results. HR Systems Review also helps companies to figure out any gaps or lapses and the reason for the same. Since every company plans certain systems and targets, an HR Systems Review compares the plans to actual implementation.
The HR Systems Review process is there to confirm whether the plans and policies of the organization have been implemented by the right processes and procedures, and that the information in the documented records shows that the system is working correctly, and further, that the gaps and variances are noted and future plans are improvised.
HR Systems Review starts with an understanding of the future business plans and corporate strategies, while always keeping business goals in focus. In keeping the business focus at the center, HR Systems Review attempts to evaluate HR strategies, structures, systems, staff, skills, style and shared values as well as their appropriateness in the organization.
Insights
