According to GRAY R.D, “the primary purpose of personnel audit is to know how the various units are functioning and how they have been able to meet the policies and guidelines which were agreed upon; and to assist the rest of the organization by identifying the gap between objectives and results for the end-product of an evaluation should be to formulate plans for corrections or adjustments”.
The objectives of HR audit are:
1. To review the whole system of management programmes in which a management develop, allocates and supervises HR in an organization with a view to determine the effectiveness of these programmes.
2. To evaluate the extent to which line managers have implemented the policies and programmes initiated by top management and the HR department.
3. To review the HR system in comparison with other organizations and modify them to meet the challenges of human resource management.
4. To locate the gaps, lapses, shortcomings in the implementation of the policies, procedures, practices, directives of the HR department and to know the areas where non implementation and/or wrong implementation has hindered the planned programmes and activities.
5. To evaluate the effectiveness of various HR policies and practices
6. To evaluate the HR staff
7. To seek answers to such questions as “what happened?” “why it happened?” or “why it did not happen?” while implementing policies, practices and directives in managing human resources.