(Evidence from Banking Sector in Karachi-Pakistan)

The objective of the study is to evaluate the role of HR audit in organization effectiveness; this paper also investigates the influence of human resource practices in the audit process. Human Resources Audit, measures of human resource outputs and effectiveness under the given circumstances and the degree of utilization of human resource outputs. The research focuses on the role of HR audit in organization effectiveness and how well HR managers adopt the HR functions align with the HR strategy, the research is qualitative in nature and 4 in depth interview are conducted with the HR Managers who currently deals the HR functions under the umbrella of HR current practices with compliance and legal requirements, the case study method is selected with “Template analysis’, The respondents reveal that focus on improving the HR functions and implementations with the alignment of compliance and legal review leads to the strong human resource audit system in banking industry, having the attractive compensation packages can also be a part of retaining the employees in organizations which shows the good implementation of HR practices in organizations, and besides the compensation packages others factors like; training and development, recruitment and selection, performance management system, career development, succession planning, employee retention also have an important aspects towards organization effectiveness. The current study aims to evaluate the role of HR audit on HR functions with the given circumstances and the degree of utilizations of human resource outputs,