Based on the current case, it is highly recommended that the management should focus on analyzing and improving the human resource function of the company. As such, the human resource audit itself should be considered as a diagnostic tool; hence the management should ensure that its services are evolved to provide that its full potential supports the objective and the mission of the organization. After performing an HR audit for the organization, there are several areas of concern that should be addressed by the organization to limit the liability and enhance employee relations ( Li, Mangena, & Pike, 2012) . First, the employer should be able to correct all the forms for all employees on the payroll, which should include full time and part-time employees. Specific errors may occur, especially when employees fail to sign the forms. Also, errors may occur when proper forms of documentation are not provided. Therefore, when errors are found in the forms, they should be corrected to avoid fines or penalties.
The employer should also develop and review employee handbook. In essence, the employee handbook offers information about the company’s policies, procedures, as well as benefits. Also, the employee handbook is crucial since it outlines management and HR best practices and offers all team members with an opportunity to understand company expectations. Next, it is vital to develop and update employee job descriptions for each position within the company ( Arruñada, 2013) . As such, the employee and the manager should prepare and retain a copy of the job description, which should be filed in the personnel's file. As such, job descriptions should reflect the taka assigned to all employees, which will enable them to understand their job duties. The employer and managers should design the hiring process and provide training for employees. A structured hiring process will enable the organization to select the best talent and most qualified applicants for all available positions. Also, it is necessary to develop and revise the performance evaluation process for the organization and all employees. Further, it is essential to ensure that all employees receive feedback on the performance evaluation process.
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References
Arruñada, B. (2013). The economics of audit quality: Private incentives and the regulation of audit and non-audit services . Springer Science & Business Media. Retrieved from https://books.google.co.ke/books?hl=en&lr=&id=wpmyBwAAQBAJ&oi=fnd&pg=PA19&dq=human+capital+audit+quality&ots=OV129VsRXw&sig=2vBlgAOmwUdbcCCYwl3V8qT4V_k&redir_esc=y#v=onepage&q=human%20capital%20audit%20quality&f=false
Li, J., Mangena, M., & Pike, R. (2012). The effect of audit committee characteristics on intellectual capital disclosure. The British Accounting Review , 44 (2), 98-110. Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S0890838912000194.
