Human Resource Audit - Assignment Example

This way management can know which specific areas are of concern and which ones are causing productivity to go down. In some cases, productivity may be at par even though some of the human resources are underperforming. In such a scenario, the best step would be to apply the HR audit, as it is the best tool to identify such hitches in an organization.

Besides helping to make decisions at crucial times the HR audit can also be a very comprehensive source of data on an organization, which is essential in carrying out research work on the organization’s human resources. The first step before carrying out an audit; is best to first come up with the problem area which the results of the audit need to address. The success of the audit in finding the cause of problems or level of performance in some areas is very high. It is for this reason that the HR audit is a reliable source of data that can be linked to the audit to solve the problem.

A lot of thought must be considered when choosing who to conduct the audit and the major argument should revolve around the objective of the audit. An in-house staff could be good because of their familiarity with the staff, and again this could be a disadvantage depending on the cause of the audit. Third-party staff is another best solution but sometime could be expensive and unnecessary. The main reason for the audit is to evaluate the organization’s HR and its performance; therefore the results from the audit s what determine the next step of action.

According to an article by ABC NEWS Business Unit, one of the five highest-paid CEOs but worst among the five worst performers is the CEO of Nabors Industries (Gomstyn, 2009). The article states that the CEO is handsomely paid despite his poor performance delivery to the shareholders. This offers a good situation where there is a need for an HR audit. Its objective is to find out the root cause of the company’s poor performance and if there is enough reason to retain the CEO. The weakness of the audit in this situation is since it is investigating the CEO, he can have enough access to manipulate the findings. The advantage is the shareholders will have informative results to which they can make the right decision. Read More