Abstract
Human Resource audit (HR) is an essential tool in analysing the effectiveness, compliance, and strategic alignment of HR functions in organizations. The practice of conducting HR audits tends to differ between industries and geographic locations, due to various organizational, regulatory, and socio-economic factors. Understanding regional variations in HR audit practices becomes crucial, particularly for Small and Medium Enterprises (SMEs) operating under diverse institutional environments. The study employs a quantitative approach in comparing HR audit practices between two different districts in terms of their industrial diversity i.e. Ludhiana and Fatehgarh Sahib. A descriptive -comparative research design was adopted and structured surveys were administered to 200 HR professionals and organizational owners across diverse industries. The survey captured data related to HR audit frequency, comprehensiveness, followup mechanisms, resource allocation, and perceived effectiveness of HR functions. The results were then analysed using statistical tools like descriptive statistics, ANOVA and frequency distribution for identifying significant differences between audit practices in distinct districts. The findings show significant differences in the methodologies used in HR audits, resource use, and alignment with district goals. In addition, there are common challenges, such as weak audit frameworks and uneven follow-up processes after an audit. The study contributes to the existing HR audit literature by highlighting the influence of regional and industrial diversity on HR audit outcomes. These findings provide the basis for region-specific best practices and strategies to improve audit effectiveness in order to promote sustainable HR practices across industries.
Keywords: Compliance, Effectiveness of HR Functions, HR Audit, HR Practices, Industrial Diversity, Strategic Alignment