Importance of Personnel Audit for an Organization!

A personnel audit can be conducted in every aspect of management of the human resources. For example, in terms of planning manpower requirements, an audit can be made of the effectiveness of past forecasting and scheduling to ascertain how far the needs were identified in time.

If such an audit indicates that the forecasting was inaccurate, management can start thinking on how to improve the forecasting techniques and variables for more accurate results in the future.


Again, over a period of time, descriptions are likely to get out-of- date. Revised thinking might be indicated with regard to the sources of recruitment so far used. Searching for applicants within the organisation is often overlooked although it constitutes a major motivational weapon in the hands of management.

In the area of organizing the manpower resource, on analysis should be made of the extent to which the personnel department was actually of assistance to line management. An evaluation may indicate reorganisation or even training for the personnel department’s needs.

An evaluation can also be made of the effectiveness with which interviews and psychological tests, if any, were conducted so that improvements can be incorporated in these areas.

In the area of staffing, an evaluation can be made of the effectiveness with which new employees were actually selected and placed. These training programmes, can also be assessed in terms of the results generated by such programmes. This involves analysis of employees at all levels and not only at the worker level.


Motivating the personnel is perhaps the most important aspect of manpower management. An evaluation may indicate whether the employees do feel that the organisation is a good one to work for and that they have a bright career within it provided they are willing to put fourth their best efforts. An analysis comparing the wages paid within the organisation with wages paid in similar companies outside can also provide indicators on the correct wages policy for that organisation.

In addition, facilities such as lighting, ventilation, sanitation, recreation, maintenance of canteens, etc. must be evaluated in terms of their effectiveness. All these have their influence on the commitment of the individuals and groups within the organisation to organisational objectives. Communication is another aspect where failures are very common.

Finally, in the area of controlling manpower resources, it is necessary to identify the marginal employees for elimination, where possible. The appraisal system can also be analysed in terms of how far it helps appraise the performance of an employee as an aid to transfers and promotions. The safety requirements in an organisational can also be evaluated to determine room for improvement.

Thus there are many areas in which a personnel audit can be conducted to improve the personnel management function. A good organisation would prepare its own checklist for this purpose.