From Human Resources Auditing to Governance Excellence: Case Study of Agricultural Equipment Manufacturing Company –Sidi Bel Abbès-Algeria

Abstract

This research paper explores the level at which Human Resources Auditing (HRA) can be used as a means of governance excellence in an Algerian manufacturing company. A case study design was used to collect data using a structured HR audit checklist conducted on a sample of 50 employees working in managerial, supervisory and operational roles. The descriptive statistics and one-sample t-tests were used to evaluate the level of HRA practise implementation in five HR functions including recruitment, training and development, performance evaluation, health and safety, and compensation and benefits. The findings suggest that HRA practises are applied at statistically significant and moderate levels in all functions and that they are more applied to recruitment and performance evaluation and less effective in training evaluation, preventive health and safety actions, and compensation transparency. Comprehensively, the results indicate that the functioning of Human Resources Auditing is rather compliance-based control mechanism that partially aligns with the principles of governance excellence, which needs to be more strategically integrated to increase its influence on governance.