dc.description.abstract | Human resource audit is a key tool to the analysis of the key strengths of a firm, its
weaknesses, its opportunities and threats in relation to its human resource capital. It is
therefore very important that firms undertake human resource audit as a strategy to
document its SWOTs (Strengths, Weaknesses, opportunities and Threats) as well as a
strategy towards creating a competitive edge in the firm. Indeed, human resource audit is
necessary in the development and identification of skills gaps and strengths which is
critical to the attainment of organization goals and acquisition of a competitive edge. The
research objective of the study was to determine the effect of human resource audit on
performance of commercial banks in Kenya. The study used descriptive survey design
because data was collected from several organizations. In addition, comparative data
analysis was used. The target population for the study included all the commercial banks
that are registered by Central Bank and operational in Kenya as at 31st December 2014.
Primary data was used and the same was collected using a semi-structured questionnaire.
Raw data collected from the field was cleaned for further analysis. Data was then
subjected to SPSS for analysis and interpretations using descriptive statistics. Findings
were presented in form of tables, pie charts and frequencies. Pearson‟s correlation was
used to establish the relationship between HR audit Practices and performance of
Commercial Banks. The results show that the banks human resource audit entails the
examination of policies, procedures, documentation, systems and practices with respect
to its human resource function. The management of the banks are committed to fostering
co-operative relations with the unions representing the employees and the union leaders
in order to achieve the banks objectives. Finally, human resource audit influenced various
performance indicators in the banks including the employee, shareholders as well as the
organization in general. Inter-correlation analysis carried out to test the relationship
between HR audit practices and performance of Commercial Banks showed a significant
relationship (r=0.697, n=79, p<.05) between them. The relationship between the variable
is significant with strong relationship. Based on the findings, this study recommended
that; Management should focus on analyzing and improving the human resource function
in the organization. The human resource audit itself is a diagnostic tool, not a perspective
instrument. Therefore the management should act on the finding and evolve its function
to a level where it‟s full potential to support the organization‟s mission and objectives can
be realized. Human resource audit should be applied on a sample basis of practices and
systems for identifying problems and ensuring that sound accounting principles are
followed. | en_US |