CHAPTER 1

INTRODUCTION
(A STUDY ON “COMPLIANCE OF HR
AUDIT” OF SHOPPERS STOP)
 1.1 INTRODUCTION
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The word “audit” is derived from the Latin verb “audir e”, which means to
listen. Listening implies an attempt to know the state of affairs as they
exist and as they are expected or promised to exist. Consequently, it is a
diagnostic tool to gauge not only the current status of things but also the
gaps between the current status and the desired status in the area that is
being audited.

Like any audit, Human resources is also a systematic formal process,

which is designed to examine the strategies , policies procedures,
documentation, structure, systems and practices with respect the
organizations human resource management. It systematically asses the
strengths, limitations, and development needs of the existing human
resources from broad point of view and helps in enhancing organizational
performance.

HR audit answers different questions that pop out in the organization

which are as follows

 Are all potential sources of recruitment are evaluated and identified

according to the requirements.
 Is the remuneration program designed to motivate the people
 Is the documentation of the candidates that joined the organization
are up to date
 Does HRM practice respond to individual employee needs

It will help the organization to identify what are missing and what
have to be improved, but the audit does not provide solutions to address
these problems. It is most useful when an organization is ready to act on
the findings, and to evolve its HR functions to a level where its full
potential to support the organization’s mission and objective can be
realized.
 1.2 NEED AND IMPORTANCE OF THE STUDY

NEED FOR HR AUDIT

 To get the practical knowledge of how the organization is following the audit
criteria.
 To update the audit criteria according to the changing needs of external
environment by the top management.
 It is important to understand the auditing process to gather appropriate
information from the lower level management.
 To work parallel with the external auditor during auditing and if there are any
changes they are immediately discussed with the top management.

1.3 OBJECTIVES OF THE STUDY

 To understand the auditing process of Shoppers Stop.

 To Relate employee satisfaction level to auditing result
 To conduct weekly activities for the employees for Shoppers Stop.
 On boarding of the new joiners’
 Regularizing the bio metric of employees.

1.4 SCOPE OF THE STUDY

The study was focused on compliance of HR Audit. This study covers the Audit
process and the documents that are needed to be collected .The areas include the
appropriate documentation and conducting HR activities from time to time. There are
specific steps used to implement the audit process, by assessing the available or
required documents from the employees of the organization. The study is to observe
the degree of HR Audit effectiveness towards the organization. It will also show the
deviations if any, towards this affect that will be experienced in research.
 Hr audit must cover the activities of the department and extend beyond because
employees’ problems are not confined to the HR department alone. So it is very
much broad in nature. It covers the following HR areas:

a) Audit of all the HR function.

b) Audit of managerial activities to check the compliance of personnel policies,
procedures and legal provisions.
c) Audit of company strategy regarding HR planning, staffing, IRs,
remuneration and other HR activities.
d) Audit of the HR climate on employee motivation, morale and job satisfaction.

a) AUDIT OF HR FUNCTION
This involves audit of all HR activities.
For each activity, auditor must
(i) Determine the objective of each activity,
(ii) Identify who is responsible for its performance,
(iii) Review the performance,
(iv) Develop an action plan to correct deviation, if any
(v) Follow up the action plan.

1.5 RESEARCH METHODOLOGY

MEANING OF RESEARCH
Research in common parlance refers to a search of knowledge. It is an art of scientific
investigation. According to Redman & Mary defines research as a systematic effort to
gain Knowledge.

RESEARCH METHODOLOGY
Research methodology is way to systematically solve the research problem. It is a
Plan of action for a research project and explains in detail how data are collected and
analyzed. The main methodology adopted for this project is survey method. Where data
was collected using a structured questionnaire. Questionnaire was administered among
the sample of 5 respondents.

RESEARCH DESIGN:

“A research design is the arrangement of conditions for collection and analysis data in
a manner that aims to combine relevance to the researcher purpose with economy in
procedure”.

It constitutes the blueprint for the collection, measurement and analysis of data. As
such the design includes an outline of what the researcher will do form writing the
hypothesis and its operational implication to the final analysis of data.
More explicitly, the design decisions happen to be in respect of;
What is the study about?
Where the data can be found?
What will be the sample design?
How will the data be analyzed?
In what style will the report be prepared?
What techniques of data collection will be used?

SOURCES OF DATA
1. PRIMARY DATA
Primary data was collected through Likerts method ( Survey Questionnaire) from a small
sample of 5 respondents which was distributed by using Google forms.
 The questionnaire was designed to measure the effectiveness of HR Audit.

2. SECONDARY DATA
Secondary data was collected from internet, Books, journals, articles, magazines and
other records of the organization. This data was collected by some other representatives
to serve the purpose of their study.
  The secondary data is collected from the records of the organization which is
kept as a reference of the study.

SAMPLING PLAN

A sampling plan is a definite design for obtaining a sample from the sampling frame.
It refers to the technique or the procedure the researcher would adopt in selecting some
sampling units from which inferences about the population is drawn. Sampling design is
determined before any data are collected.

SAMPLING METHOD
The sample method that is used in this study is Simple Random Sampling. A sample size
of 30 respondents was drawn on random and convenience basis. The respondents include
the employees of Shoppers Stop both brand Staff and SSL staff.

TOOLS FOR ANALYSING THE DATA

Data collected from the sample respondents was analyzed with the help of statistical tests
such as Chi- Square test.

FIELD WORK

The field work relating to this study was carried for a period of 45 days
 1.6 LIMITATIONS OF THE STUDY

This study suffers from the following limitations:

 This study was only conducted in the GVK-One branch which does not cover the
whole organization. There is always a margin of error as whole population is not
studied.
 The analysis of this study is based on the employees responses of the sample
respondents, in some cases, were influenced by their bias
 Employees were not willing to submit documents, as they had already submitted
those to their previous HR.
 The payroll of the employees cannot be disclosed due to limitations on sharing the
information.

1.7 ORGANIZATION OF THE STUDY

The project has been undertaken to study compliance of HR Audit at Shoppers Stop,
Hyderabad. The study consists of five chapters that are

 The First Chapter provides Introduction which includes Need and Importance,
Objectives, Research Methodology, Scope, limitation and organization of the
study.
 The Second Chapter consists of company profile of the Shoppers Stop that’s
includes its vision, mission etc.
 The Third Chapter consists of Literature review including the basic concepts of
Compliance of HR Audit.
 The Fourth Chapter analyses the Employee satisfaction of Shoppers Stop
 The Fifth Chapter summarizes the findings and offers suggestion in the light of
findings.