Human Resource Audit in the Public Service

Theory, Practice and the Emerging Experience of Mongolia

Abstract

This article examines the theoretical foundations, global evolution and emerging practice of human resource auditing, with particular attention to its relevance for Mongolia’s public sector reforms. Drawing on classical and contemporary human resource management theories—including behavioural science, human capital theory, strategic HRM, the resource-based view, institutional theory and systems theory—the study conceptualises the human resource audit as an evidence-based evaluative mechanism that supports organisational learning, strengthens accountability, and aligns human resource systems with strategic objectives. The analysis demonstrates how twenty-first century developments such as digitalisation, HR analytics, New Public Governance and international performance audit standards have expanded the scope and methodological sophistication of HR auditing in both private and public sectors. The Mongolian case is situated within this broader theoretical landscape. As a post-socialist state engaged in democratisation and market transition, Mongolia continues to grapple with fragmented institutional capacity, politicised appointments, uneven performance management and limited professional development systems. The Civil Service Law (2017), together with subsequent audit procedures and manuals, has introduced a formal basis for human resource auditing, signalling a shift from traditional personnel administration toward rules-based, meritocratic and evidence-driven public sector management. Early pilot audits conducted by ministries and local administrations illustrate both the opportunities and challenges of institutionalising HR auditing, revealing the need for improved documentation systems, stronger HR analytics, enhanced auditor capacity and more consistent organisational compliance. The study argues that human resource auditing holds significant potential to advance Mongolia’s state capability by reinforcing meritocracy, enhancing transparency, reducing patronage, and supporting the strategic goals outlined in Vision 2050. As Mongolia deepens its public administration reforms, HR auditing can serve as an important governance tool for fostering an ethical, professional and performance-oriented civil service. The article contributes to the emerging comparative literature on HR auditing in transitional and developing contexts and highlights the need for further empirical research to refine methodologies and sustain long-term institutionalisation.