"The review of personnel policies is related with the review of the functions of Human Resource Department". Explain.

CS Executive · Company Accounts & Auditing Practices · PYQS · June 2019
"The review of personnel policies is related with the review of the functions of Human Resource Department". Explain.

Answer & Explanation:

In review of personal polices, several functions of human resources department are reviewed. This review is more than just looking at personnel files to make sure they're complete and consistent with applicable laws and legislation pertaining to employment practices. In personal policies review it is ascertained whether human resources function is supporting the company philosophy, mission and values. Review of Employee Relations: The employee relations area of human resources is typically responsible for addressing employee concerns, designing and analyzing employee opinion surveys, assisting HR leadership with monitoring the performance management system, and representing the company in matters involving claims pertaining to unemployment compensation and unfair employment practices. An review of these functions includes reviewing the level of employee satisfaction. Employee satisfaction can be measured by turnover rate; number of employee complaints filed and resolved, the status of action plans from recent employee opinion surveys, and the effectiveness of performance management system. Review of Safety and Risk Management: The goal of HR department's safety and risk management program is to create and maintain a safe work environment. Auditing safety and risk management function goes beyond merely assessing adherence to company occupational health safety policy, however it includes assessing employee participation in maintaining a safe work environment, measuring the effectiveness of safety training to reduce the number of workplace injuries, and providing training related to workplace violence, actions of disgruntled employees and civil unrest. Review of Compensation and Benefits: Reviewing compensation and benefits begins with an analysis of compensation practices- review the employee survey to get sure that organisation's pay practices are appropriate for each job group, as competitive as possible for geographic area and the industry, and, importantly, the pay practices must be fair. Reviewing compensation plans takes time to complete; based on the size of the workforce. This part of your person policy review may be more effectively outsourced than conducting the analyses in-house. Recruitment and Selection: Organization's recruitment and selection process shapes part of company's reputation. Reviewing human resources employment function involves a review of the way applicants are received. An review should reveal how knowledgeable the engaged employment specialists are concerning organizational structure, positions within each department, and fair employment practices in recruiting and hiring candidates. HR Departmental Practices: In addition to auditing specific areas of human resources department, review of HR function in its totality and in relationship to other departments is also required. An ineffective HR programs can undermine an organization's ability to achieve its mission by stunting its competitiveness in the labor market, increasing unjustified financial costs, and putting the organization at risk for lawsuits or regulatory inquiries due to non-compliance or misconduct.

Topics: Internal Audit

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic