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HRM Audit
The HRMA (Human Resource Management Audit) uses this framework to try to answer such questions as these:

1. Are the mission and strategy of the human resource organization designed to match the business strategy of the organization?

2. Does the design of the human resource organization enhance its ability to accomplish its strategy?

3. Are the kinds of people who run the human resource function good choices for the ongoing tasks?

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The primary sources of data are:

1. Interviews with Senior Management.Focus on strategy and a definition of the current state of the organization and the desired future state.

2. Interviews and Questionnaires with Line Management.Focus on their interactions with the HR function, their human resource problems, and the role they envision for the HR organization.

3. In-Depth Questionnaires from the Human Resource Staff. Diagnose the jobs, activities, conflicts, and internal strengths and weaknesses of the function.

4. Archival Information and Documents. Describe job histories, past evaluations, formal structures, and general background on the organization as a whole and the HR function in particular.

An HRMA is a major organizational intervention. It raises expectations that something will be done in response to its findings. Therefore, careful consideration should be given to the organization's responsiveness to change. In particular, the following issues should be addressed.

1. Focus of Audit. What unit is to be analyzed? In large corporations, the focus of the audit can be the total corporate personnel/human resource management function, or it can be the divisional or subsidiary level. Whatever the focus, the audit's boundaries must be specified from the start.

2. Resources. What resources are available for conducting the audit? Staff time as well as money are key resources that must be available. In addition, line management's involvement should be given particular consideration. Pressures for change could well result from an HRMA. If the audit is likely to uncover areas requiring major policy changes but senior line management is not ready or willing to address these issues, it might be appropriate to delay or abort the audit. Line management's commitment, understanding, and involvement with the HRMA is essential if it is to be of real value to the organization.

3. Diagnostic Plan. The audit should begin with the development of a diagnostic work plan that specifically takes into account the data to be collected, the methods to be used in data collection, the individuals who will do the data collection, and the individuals responsible for analyzing the data.

4. Managing the HRMA. There are alternative methods for managing, overseeing, and carrying out an HRMA. The basic methods are (1) having an external consultant manage it, (2) having internal staff and an external consultant manage it jointly, and (3) having line management join internal staff and an external consultant in managing it.

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Sample Questions

The list below presents some of the specific questions that might be asked of interviewers to diagnose the degree of integration of the human resource systems in the HR cycle around a dominant value of performance.

1. How effective is the selection process in ensuring that people are placed in appropriate positions? Explain.
2. How effective is the appraisal process in accurately assessing performance? Explain.
3. How effective are rewards (financial and nonfinancial) in driving performance? Explain.
4. How effective are the training, development, and career planning activities in driving performance? Explain.
5. How effective is the appraisal process in differentiating performance levels for justifying reward allocation decisions? Explain.
6. How effective is the appraisal process in identifying developmental needs of individuals to guide training, development, and career planning? Explain.
7. How effective are the training, development, and career planning activities in preparing people for selection and placement into new positions in the organization? Explain.
8. Overall, how effectively are the five components integrated and mutually supportive? Explain.

Source of Reference :
Charles J. Fombrun, Noel M. Tichy, and Mary Anne Devanna, Strategic Human Resource Management , Willey Publishing. You can obtain this fine book here