Monitoring and evaluation of human resources management can be ongoing (operational) and regular (periodic, systematic).
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What is monitoring and evaluation of human resources management?
The current (operational) monitoring of human resources management is part of the functions of the leaders at the respective level that they perform in this area.
In the performance of their work tasks and duties, they daily establish positive and negative facts from human resources management.
These facts are a source of information for evaluating the practice and for making certain decisions within the competence of the respective manager for its improvement following the strategy and policy of the enterprise or organization.
The heads of the respective levels of management of the enterprise or organization, depending on the extent to which the management functions of the people in the labor process are assigned, may assign the current monitoring of the current system to the specialists engaged in the implementation of relevant specific activities. Reference: “Creating a human resources management system“, https://pgov.org/creating-a-human-resources-management-system/
To this end, the work tasks and responsibilities of the respective positions regarding the current monitoring of human resources management must be regulated in their job descriptions. Nevertheless, the assessment of the facts in this area is a function of the respective manager.
Regular (periodic) monitoring and evaluation of human resource management aim to identify those components whose absence or condition threatens the efficiency and competitiveness of the enterprise, and to identify ways to make more efficient use of its assets and resources. It can be done:
By the specialized body for internal control in the enterprise (if there is such a body and if it has the necessary specialists);
By specialized external organizations or persons for monitoring and evaluation of human resources management.
Regular (periodic) monitoring and evaluation of human resource management is referred to as audit.
The audit of human resources management is a regular process of collecting, systematizing, and evaluating facts and evidence of its condition, which:
Considers the audited entity as a system;
Uses a specific methodology, different in different companies and organizations; Reference: “Methods for designing the human resources management system“, https://www.businesspad.org/methods-for-designing-the-human-resources-management-system/
It covers mainly the activities that contribute to the success of the enterprise or organization or create difficulties for it;
Provides its opinion to the management of the enterprise or organization;
Evaluates the implementation of the recommendations.
Human resource management auditing is a process that:
It is carried out according to a pre-developed plan, program, and procedures depending on the objectives set before it and the specifics of the audited entity; Reference: “Development of human resources management projects“, https://www.policymatters.net/development-of-human-resources-management-projects/
It is based on the assessment of facts and does not allow subjective decisions;
Certifies every statement about the state of human resources management;
Uses previously accepted criteria, prescriptions, norms, and rules for each activity;
It ends with a final report of the auditor.
The main purpose of the audit of human resources management is to answer the question of whether it functions legally and appropriately, as well as to make recommendations for eliminating the discrepancies. Reference: “Analysis of human resources management (HRM) system“, https://www.mu7club.com/analysis-of-human-resources-management-hrm-system/
Establishing the legality of human resources management comes down to assessing the extent to which it complies with the laws, government regulations, and public contracts concluded by the employer, which give rise to obligations to him in this area.
Determining the appropriateness of human resource management aims to determine whether the action, program, or facility has been managed economically, efficiently, and/or effectively. Reference: “Objectives of Human Resources Management (HRM)“, https://www.powerhp.net/objectives-of-human-resources-management-hrm/
Cost-effectiveness means the minimization of the cost of resources used for a given activity, taking into account the achievement of the relevant quality or the relevant objective;
Efficiency is understood as the connection between the data on the production of goods, services, and other results of the enterprise’s activity and the resources spent for this purpose;
Efficiency is understood as the degree of achievement of the set goals and the mutual connection between the expected and the actual impact of the respective activity. Reference: “Development of the Human Resources Management (HRM) concept“, https://customer-service-us.com/development-of-the-human-resources-management-hrm-concept/
The information required for the audit can be gathered through:
Verification of documents or assets;
Monitoring of processes or procedures;
Conducting surveys or requesting relevant confirmations;
Calculation of indicators;
Evaluation of information related to the issue, system, or component of the system, etc.
The human resources management audit is not a financial audit and can be:
Depending on the employment relationship in which the contracting authority and the auditee find themselves:
Independent audit – when the contracting authority of the audit and its contractor are not in an employment relationship;
Dependent audit – when the contracting authority of the audit and its contractor are in an employment relationship. Reference: “Design of a human resources management system”, https://www.islandjournal.net/design-of-a-human-resources-management-system/
Depending on the user of the audit information:
External audit – when the users of the information are external to the enterprise persons or organizations;
Internal audit – when users of information are the management of the enterprise or organization.
Depending on the scope of the audit:
Full audit – when it covers the management of human resources in the enterprise or organization;
Incomplete audit – when it covers individual components of human resource management.
Depending on the reasons for the audit:
Mandatory audit – when its performance results from an imperative provision of a law or a normative act of the government;
Voluntary audit – when it is carried out at the initiative of the management of the enterprise or organization.
An audit of human resource management is usually undertaken when:
Preparations for changes in the strategy and policy of the enterprise or organization for human resources management are being prepared;
There is evidence of a negative impact of human resource management on the efficiency of the enterprise or organization;
There is a need to synchronize the activity of human resources management in the subsidiaries of transnational companies;
This is a regular activity for assessing the legality and expediency of the work on human resources management.
The main principles of the human resources management audit are independence, competence, professional ethics, confidentiality, and objectivity.
The independence of the audit requires that it be the result only of the facts established as a result of the audit procedures. External pressure on the auditor is unacceptable.
The competence of the audit requires mastery of the matter and the methodology for performing the audit of human resources management, and the ability to make full use of them.
Professional ethics requires the moral nature of the relationship between the auditor and the audit client.
Confidentiality requires the confidentiality of information that became known during the audit.
Objectivity requires the auditor to be impartial in the examination of the object, and his conclusion to be based solely on facts in its implementation.
As a criterion in the audit of the human resources management system can be used:
The strategic and operational goals of human resources management in the enterprise or organization;
Management decisions relating to human resource management;
The planned, expected economy, efficiency, and effectiveness of the implementation of management decisions related to human resource management;
The rating of human resources management in leading Bulgarian and foreign companies with proven efficiency of their activities;
Laws and regulations of the government regulating the matter in the field of human resources management;
Public contracts concluded by the employer, from which arise obligations for him in the field of human resources management;
Recommendations in the specialized literature for improving the human resources management system;
Satisfaction of employees with work, etc.