Human Resources Department

Control Objectives for the Human Resources Department

(a) To ensure that adequate and suitably experienced staff are recruited and
provided in order that the organisation's business objectives are achieved;
(b) To ensure that policies which support the recruitment, retention, training
and development, performance appraisal, remuneration, welfare, disciplining and
employment termination of the personnel are developed, implemented and
monitored;
(c) To ensure that all the prevailing employment and employee legislation and
regulations are fully complied with;
(d) To ensure that the organisation's remuneration and benefits remain
competitive and relative to the industry standards;
(e) To ensure that staff are adequately trained to perform their duties and that
their skills and abilities are developed and maintained in accordance with the
current and future business operational requirements;
(f) To foster positive labour relations at all levels and to avoid disruptive
disputes;
(g) To ensure that personnel turnover and absenteeism are monitored,
maintained at acceptable levels, and problems are promptly reacted to;
(h) To ensure that staff recruitment is suitably authorised in accordance with
the operational demands of the business and cost effectively conducted;
(i) To ensure that staff performance is monitored and the necessary remedial
action is taken;
(j) To ensure that adequate personnel records are maintained and protected
from unauthorised access; and
(k) To provide information and a cost-effective and professional service to
management on all human resource matters.

Risk and Control Issues for the Human Resources Department

1 Key Issues

1.1 How can management be certain that there will be adequate and
suitably skilled staff available now and in the future, to ensure the
achievement of their business objectives?
1.2 Have documented policies been established for staff recruitment,
training, remuneration, performance appraisal, and disciplinary matters?
1.3 What measures are in place to prevent the engagement of staff on
terms outwith the prevailing policies, terms and conditions?
1.4 What measures ensure that all staff recruitment is authorised and
that only suitably skilled persons are employed?
1.5 How is ongoing compliance with all the prevailing employment
regulations and laws confirmed, and would failure to comply be promptly
detected?
1.6 What measures ensure that salaries, benefits and all other terms and
conditions remain competitive and realistic in relation to the sector and
national norms?
1.7 How does management ensure that skill requirements are identified
and staff are adequately trained and developed to meet the demands of the
business?
1.8 What measures ensure that good labour relations are maintained
and costly disputes are avoided?
1.9 Are management made aware of absenteeism and staff turnover
levels, and what action is taken in the event of increased or unacceptable
levels?
1.10 How can management be sure that staff are performing at the
appropriate level and proficiency, and what action is taken to identify and
correct any shortfalls?
1.11 Is there a documented disciplinary and grievance procedure in place,
and does it conform to the necessary regulations?
1.12 What measures are in place to ensure that Human Resource staff
maintain an accurate and up-to-date awareness of all the relevant
regulations and professional practices (and are line management also kept
informed)?
1.13 How does management ensure that all staff are made aware of their
responsibilities and entitlements under the prevailing personnel policies?
1.14 How can management ensure that the personnel records are up-to-
date, accurate and adequately protected from unauthorised use and access?

2 Detailed Issues

2.1 How are the current and future staffing levels and skills geared to the
needs of the strategic plans for the organisation?
2.2 How is over-staffing avoided?
2.3 What actions ensure that there are always adequate numbers of suitably
experienced and trained staff available to meet the organisation's needs?
2.4 What measures prevent the build up of inappropriately skilled or
inadequately qualified staff?
2.5 How does the organisation avoid the high costs associated with staff
redundancies?
2.6 How are the various documented personnel policies and standards
maintained up-to-date and relevant?
2.7 Have standard pay/salary scales been established, and what prevents the
engagement and set up of an employee on non-standard rates and conditions?
2.8 Are the official salary scales accurately maintained and only amended
when authorised?
2.9 Who is responsible for determining remuneration and benefits packages
and how is management authorisation evidenced?
2.10 What measures ensure that salary reviews are suitably authorised,
accurately calculated and correctly applied to the payroll?
2.11 Are all new positions independently evaluated in respect of grade,
applicable salary, special conditions, etc., and how is this process evidenced?
2.12 What measures prevent the establishment of either an unauthorised or
non-graded position?
2.13 Have management agreed and defined the required staffing establishment
levels, and are these used to verify all recruitment activity?
2.14 Are all positions supported by an authorised and up-to-date job
description or specification?
2.15 Is recruitment driven, in every case, by the requirements of an authorised
job description?
2.16 How are high recruitment costs avoided (for example unreasonable
recruitment consultancy commissions)?
2.17 Are recruitment activities suitably targeted?
2.18 Are temporary or short-term staffing requirements accurately identified
and authorised?
2.19 Are candidates for temporary positions suitably assessed?
2.20 How can management be certain that unsuitable staff, those with a
previous poor employment/attendance record or unconfirmed qualifications will
not be engaged?
2.21 How can management be assured that training resources are appropriately
targeted in accordance with need?
2.22 How can management be certain that the available training resources are
appropriate, up-to-date and effective?
2.23 How can management be sure that individuals' training needs are being
accurately identified and effectively addressed?
2.24 How are staff and management kept aware of current employment
regulations and their relevant responsibilities?
2.25 Have adequate sources of employment and human resource information
been established for the use of staff and management?
2.26 If management failed to comply with relevant employment legislation,
would the transgression be capable of prompt detection?
2.27 Have adequate channels of communication been established to enable the
prompt identification and reporting of potential staffing problems?
2.28 Is management provided with accurate, reliable and regular information
on such matters as staffing levels, days lost due to sickness, absenteeism, etc., and
are they obliged to take corrective action when necessary?
2.29 Are staff kept sufficiently aware of changes and developments which
affect them?
2.30 What measures ensure that staff who perform below the required standard
are accurately identified?
2.31 Have suitable and lawful mechanisms been provided to enable staff to
bring their concerns and grievances to the attention of management as the basis
for a fair and full review?
2.32 Have management provided the necessary facilities to sympathetically and
effectively deal with employee problems and personal matters, taking into account
any relevant local regulations?
2.33 What processes ensure that all staff leavers are correctly dealt with (i.e.
paid all their entitlements; removed from the payroll; company property
recovered; other benefits discontinued; etc)?
2.34 What mechanisms ensure that staff dismissed for disciplinary reasons are
correctly and lawfully treated?
2.35 What prevents either the unauthorised access to or use of personnel data,
and would violations be detected and reacted to?
2.36 Does the personnel data maintained by the organisation conform to the
requirements of any relevant legislation?
2.37 How can management be assured that the current practices conform to
the relevant equal opportunities and anti-discrimination regulations?
2.38 How is the accuracy of data input from other systems confirmed?
2.39 How is the accuracy of personnel data output to other systems
confirmed?