Approaches to Human Resource Audit

Approaches to Human Resources Audit

The following approaches are adopted for purpose of evaluation:
  1. Comparative approach
  2. Outside authority approach
  3. Statistical approach
  4. Compliance approach
  5. Management by objectives (MBO) approach

Comparative approach
In this, the auditors identify Competitor Company as the model. The results of their organization are compared with that Company/ industry.

Outside authority approach
In this, the auditors use standards set by an outside consultant as benchmark for comparison of own results.

Statistical approach
In this, Statistical measures are performance is developed considering the company’s existing information.

Compliance approach
In this, auditors review past actions to calculate whether those activities comply with legal requirements and industry policies and procedures.

Management by objectives (MBO) approach

This approach creates specific goals, against which performance can be measured, to arrive at final decision about organization’s actual performance with the set objectives.