Should HR department report to independent Audit Comittee?

Ya. It's so important factor.

Thanks for the referral Mr. Vikas Bhatnagar. You are right. The role of HR dept is to select the right candidate for the right job in the organization. Like other depts in an organization, HR is an another dept. Hence the head of HR dept can report to Executive Director or Managing Director or Chairman as the case may be and they are all heads of operations. HR Dept role is very vital since the employees have to contribute for the growth of the companies. Sometimes, the powerful & influential head of business recommends the candidates which may be referred through HR dept. There should be a system in place for the successful of any organization. A small flaw in a sub system will affect the big system as a whole.    

It's good suggestion. Overall final decision is depend on managment. It depend on the managment of that particullar organisation. How they respond their auditors? Auditor can suggest to managment but they can't take any managment decision.

Business functions always dominates over support functions. ALL support functions are (unfortunately) led to a secondary role. This includes not only HR but also IS, MS Quality etc.

Problem however will be that all goals of all departments will have to align to the company business goals. The business goals are set by the CEO. Having an independent reporting to an autonomous Audit Board will make it difficult. The Audit Board can monitor the functions and targets vrs achievements. This, in the case of HR is non-tangible as against Sales, Production etc. and may require deeper appreciation that the CEO with an eye on targets may not appreciate.

But who does the Audit Committee report to if not the CEO? An audit board can only provide a second level of buffer between the service provider and the CEO, but the final word is not with the Audit Board.

CEOs ned to have a beyyer appreciation of the extent of support that is given by service groups.

Vikas interesting issue for debating.

I agree with you, it would be better it they report to audit committee. Because this will improve the quality and integrity of the Company’s accounting and reporting practices. There are many big companies who provide a confidential, anonymous method for you to contract the Audit Committee with concerns regarding accounting, controls or auditing matters. So I think HR department should go for this.

:)