Human resource audit system for evaluating employees performance

In the present competitive business environment, most of the organisation are to economize their operation with maximal effort. A way how to eliminate excessive expenses is making internal processes more efficient. The management has to recognize the important role of Human Resource Department in order to successfully manoeuvre organizations towards profitability. It is necessary for the management to invest considerable time and amount, to learn the changing scenario of the HR department and update itself with the transformation in HR and be aware of the HR issues cropping up. It is the fact that the most expensive even the most productive factor is labour force. Hence the aspect of human resource management gains significance Against this background, different aspects of human resource audit framework and their evaluation for human resource effectiveness like potential source of competitive advantagehave been discussed in this paper.