Here is your paragraph on personnel audit!

The term “audit” is derived from the Latin word audits meaning a “hearing”. Thus an audit is a hearing of review resulting in a systematic evaluation.

The meaning of audit in terms of accounting is well-known.


Today in management it is also used in terms of Managerial Audit, Marketing Audit and Personnel Audit. Thus the personnel function can be audited resulting in a critical review and evaluation of the manpower management programme including the employer-employee industrial relations situation. ,

Although there are no legal requirements necessitating a personnel audit enlightened managements have voluntarily accepted its usefulness. They use it as a tool for managerial control of the personnel programmes and practices there is an increasing trend of evaluating this function.

The industrial Relations atmospheres in an organization can materially affect the productivity of the whole organization. In the earlier days there was opposition to this industrial relations audit but in recent year it is increasingly being accepted as a device for improving the industrial relations situation. In fact, there is a gradual change in managerial philosophy even towards accepting employee participation to a certain extent besides, the social climate is changing.

There is increasing intervention from the government to control manpower management by industries with a view to protect the employees’ interests and provide therewith better working conditions, wages, etc. Another group which has made its influence felt on manpower management policies is made up of the trade unions whose role and strength are ever-increasing. These are some of the factors which have encouraged the trend towards a personnel audit or a periodical review of the effectiveness of the management of the human resource.


As an organization grows, the need for such an audit increases. A continuous feedback is necessary to improve, for example, organizational structures dictated by growth. Thus the time has come when good organizations would encourage a personnel audit in every function of personnel management.