Impact of HR Audit on Organizational Effectiveness; An Empirical Study of Automobile Industry of Pakistan

Abstract:

The purpose of the study is to find out the impact of HR audit on organizational effectiveness. HR audit is measured on the basis of three HR activities such as Recruitment & Selection, HR Procedures and Training & Development performed in the organization. Organizational effectiveness is measured on the basis of outcomes. The data is collected through structured 5 points likert scale questionnaire adopted from the different studies. Total 120 respondents were participated in this research by using convenient sampling. Hypotheses were tested on the basis of regression results. Results show the positive and significant impact of HR audit on organizational effectiveness. HR Audit has the highest impact while HR Procedures has lowest impact on Organizational Effectiveness. Training & Development and Recruitment & Selection have average impact on organizational effectiveness. But all the HR activities have positive significant impact on organizational effectiveness. This research is mainly focused on the organizational effectiveness and HR audit relationship in automobile sector which is not been conducted before in any other study in Pakistan. My research is restricted to the close ended questionnaire and quantitative statistical techniques. In the future research mix method of qualitative and quantitative could be used with more HR activities like performance management and compensation systems to generalize the results.