An Empirical Study on the Role of Human Resource Auditing in Enhancing Employee Engagement and Organisational Productivity in Selected Organisations of Nagpur

Abstract

This paper addresses the importance of Human Resource Auditing with the improvement of employee engagement and organisational productivity in the chosen organisations of Nagpur. With the current awareness that human capital is a strategic asset, the research question in the study is whether practices of structured HR audit can lead to any quantifiable kind of improvement in performance. A cross-sectional research design of a quantitative nature was embraced. A total of 150 participants (comprising of employees and HR managers, manufacturing, service, and education sector) were surveyed as primary data collection. HR audit practices, HR and employee engagement were measured using standardised tools, whereas organisational productivity was measured using both the subjective and objective measures bearing an output per employee, rate of absenteeism and turnover ratio. Correlation and multiple regression tools were used in a statistical analysis to identify that there is a strong positive correlation between HR auditing, employee engagement, and productivity. The regression model also predicted organisational productivity with a significant level of 59 per cent (R2 = 0.59) which reflects the amount of the variance it could explain. The organisations with systematic HR audits indicated an increase in the level of engagement and efficiency in operations. The results have indicated that HR auditing is a strategic performance-enhancing process and not a compliance process. The research has provided the region-specific empirical data and provided managerial suggestions on how to provide HR systems to achieve the sustainability of organisational development.