AMSH700 Strategic Human Resources Audit Report for XL-IT Company, 2019

This report provides a strategic human resources audit of XL-IT, an ICT company, focusing on addressing challenges like low motivation and high attrition rates. It emphasizes the importance of strategic HR planning, including motivation, encouragement, and audit processes to improve workplace culture and market position. The audit assesses various HR parameters such as strategic management, wages, cost-benefit analysis, risk assessment, training, and employee satisfaction. Key findings include resource overexploitation, improper knowledge management, wage discrepancies, and high absenteeism. Recommendations involve revising budgets, strategic planning for knowledge management, and improving wage distribution and health & safety practices. The report also suggests external audits for unbiased evaluations, focusing on recruitment, selection, and training programs to enhance organizational effectiveness and reduce turnover rates. The report concludes by highlighting the need for strategic planning in training, rewards, and revised recruitment policies to align with legislative requirements and contemporary business trends.

Running head: STRATEGIC HUMAN RESOURCES
STRATEGIC HUMAN RESOURCES
Name of the Student
Name of the University
Author Note

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Task 1
a) Completion of the task has enhanced my learning about the human resource management
issues, which the organization is facing. These are- low motivational rates, high rates of the
attrition among others.
According to my opinions, the organization should aim at the proper strategic
formulation for the development of the human resources within the organization. This should
aim at the provision of motivation and encouragement to extract the required labor from the
staffs.
I feel that one of the striking issues in this context is the lack of audit processes in the
human resources, which aggravates the complexities in terms of achieving positive results. I am
really concerned that negligent approach towards strategic planning would act as a threat in
terms of maintaining the integrity of the workplace culture. This would, in turn, add vulnerability
in the market position. Herein lays the importance of audit, which would help in systematizing
the operations.
B) In the Human resource management, the personnel need to take care of the requirements
posed by the staffs (Ibrahim & Zulkafli, 2016). Within this, the important parameters, which
needs special attention are as follows:
 Strategic management
 Wage
 Cost benefit analysis
 Risk assessment
 Assets and Liabilities

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 Training and development
 Employee satisfaction
c) I have learnt that audits are necessary in terms of evaluating the feasibility of the strategies
planned. The following is the sample, which has been reported:
Areas Results
Capital budget Overexploitation of the resources
Management information systems Improper strategic planning
Staff payroll Discrepancies in the wages
Health and Safety High rates of absenteeism
Table 2: Audit for XL-IT
(Source: created by the author)
d) Audit benefit identification
I have learned that the benefits, which can be achieved through the audit are:
 Revision of the budgets
 Strategic planning for knowledge management
 Revising the Wage Distribution policies and practices
 Revising the Health and Safety Practices
Key risks:
 Overexploitation of the resources
 Improper use of the knowledge management systems
 Errors in the wage distribution

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 High rates of absenteeism (Milliman & Clair, 2017)
 Low rates of motivation
 Communication gaps
Task 2
A) I have gained an insight into the fact that audits are crucial for organizations like XL-IT
in terms of upgrading the standards and quality of the operations. For conducting audits, the
personnel needs to attach conscious approach towards the following parameters:
 Strategic management
 Wage
 Cost benefit analysis
 Risk assessment
 Assets and Liabilities
 Training and development
 Employee satisfaction
I have gained knowledge regarding the fact that the audits need to be done by the external
agencies. This is in terms of ensuring whether the operations are conducted according to the
requirements. Consideration of the evidences and observing the approaches of the staffs are the
two most crucial means by which the audits can be conducted. In this case, audit is at the
planning stage.
B) I felt that at the preparation stage, planning and development are crucial for the organization.
Once the plans are constructed, execution of the tasks becomes easier. In this, Nehme, (2017) is

4STRATEGIC HUMAN RESOURCES
of the view that monitoring and control are important for averting any mistakes. Analysis of the
job roles is done while preparing the reports, which I think is apt for deducing conclusions
regarding the future courses of action. In this, the issues discovered were high turnover rates,
compelling the organization to encounter vulnerability in terms of securing the market position.
For this report, at least 1 month is needed, as there are many things to cover- data collection,
statistics, meetings, discussions and others. Herein lays the correlation of socialization in case of
the staffs, which diversifies the decision making skills and judgmental capabilities. This stage is
assistance for evaluating the effectiveness of the prepared strategies and the additional steps
needed for reaching to the benchmark level of target performance.
Task 3
a) The audit team needs to examine the recruitment and selection procedures of the organization.
In this, I think the most relevant question here is the strategies used for hiring the staffs. One of
the other crucial question is the motivational methods for luring the staffs. In this, I can also
make mention of the training programs, which is directly related to the improvement of the
organizational effectiveness.
B) According to me, training programs would suffice the need of enhancing the preconceived
skills, expertise and knowledge of the staffs. Motivating them would help in extracting the
required labor. Strategic approach in this direction is crucial for achieving the results according
to the requirements (Thite & Bhatta, 2018).
c) I think the external agencies can be hired for conducting the audits. In this, involving the
statutory bodies of law would be effective in terms of aligning the activities according to the
latest versions of the legislations. Maintaining frequency in the audits and accounts program

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would help in upgrading the standards and quality of the operations. Training the staffs about the
judicious use of the technologies would be apt in maintaining the pace with the contemporary
brands. Strategic planning is needed towards organizing the training sessions. Segmenting them
into lectures would help the staffs in gaining a better understanding of the concepts and the latest
business trends. Introducing lucrative rewards and recognition would be crucial in terms of
reducing the turnover rates, absenteeism and others. Revising the selection and recruitment
policies would be beneficial in terms of hiring the rightful candidates.

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