Chapter HUMAN RESOURCE ACCOUNTING AND INFORMATION SYSTEM EXCEL BOOKS 28-1 28
ANNOTATED OUTLINE 28-2 INTRODUCTION  Human resource account is accounting for people as an organisational resource. It inv...
28-3 Advantages   Human Resource Accounting And Information System <ul><li>Throws light on the strengths and weaknesses of...
28-4 <ul><li>Not easy to value human resources in an organisation </li></ul><ul><li>Full of measurement problems </li></ul...
28-5 Approaches To Human Resource Accounting  <ul><li>Monetary measures </li></ul><ul><ul><li>Historical cost method </li>...
28-6 Approaches to analyse and control manpower  <ul><li>Some of the widely used approaches to analyse and control manpowe...
28-7 <ul><li>The human resource information system is a method by which an organisation collects analyses and reports info...
28-8 Benefits of HRIS  <ul><li>HRIS can process, store and retrieve enormous quantities of data in an economical way. </li...
28-9 Important uses of a Human Resource Information System   Human Resource Accounting And Information System Labour relat...
28-10 Setting up Human Resource Information System   <ul><li>HRIS can be set up through a four step process </li></ul><ul>...
28-11 <ul><li>Computerised HRIS </li></ul><ul><li>A computerised HRIS is designed to monitor, control and influence moveme...
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HUMAN RESOURCE MANAGEMENT
V S P RAO
EXCEL BOOKS

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  1. 1. Chapter HUMAN RESOURCE ACCOUNTING AND INFORMATION SYSTEM EXCEL BOOKS 28-1 28
  2. 2. ANNOTATED OUTLINE 28-2 INTRODUCTION Human resource account is accounting for people as an organisational resource. It involves measuring the costs incurred by organisations to recruit, select, hire, train and develop human assets. It also involves measuring the economic value of people to the organisation. Human Resource Accounting And Information System
  3. 3. 28-3 Advantages Human Resource Accounting And Information System <ul><li>Throws light on the strengths and weaknesses of the existing workforce in an organisation. This, in turn, helps management in recruitment planning. </li></ul><ul><li>Offers valuable feedback to managers regarding the effectiveness of HR policies and practices. </li></ul><ul><li>Helps potential investors judge a company better on the strength of the human assets utilised therein </li></ul><ul><li>Helps management in taking proper decisions regarding the use of human assets in an organisation. </li></ul>
  4. 4. 28-4 <ul><li>Not easy to value human resources in an organisation </li></ul><ul><li>Full of measurement problems </li></ul><ul><li>Employee and unions do not like the idea </li></ul><ul><li>Empirical evidence does not support the idea </li></ul>Human Resource Accounting And Information System Limitations
  5. 5. 28-5 Approaches To Human Resource Accounting <ul><li>Monetary measures </li></ul><ul><ul><li>Historical cost method </li></ul></ul><ul><ul><li>Replacement cost method </li></ul></ul><ul><ul><li>Opportunity cost method </li></ul></ul><ul><ul><li>Economic value method </li></ul></ul><ul><ul><li>Asset multiplier method </li></ul></ul><ul><ul><li>Discounted present value of future earnings method </li></ul></ul><ul><li>Non-monetary measures </li></ul><ul><ul><li>Expected realisable value method </li></ul></ul><ul><ul><li>Discounted net present value of future earnings </li></ul></ul>Human Resource Accounting And Information System
  6. 6. 28-6 Approaches to analyse and control manpower <ul><li>Some of the widely used approaches to analyse and control manpower costs may be listed thus; </li></ul><ul><li>Management by objectives </li></ul><ul><li>Ratio analysis </li></ul><ul><li>Cost of recruitment </li></ul><ul><ul><li>Recruitment cycle time </li></ul></ul><ul><ul><li>Cost of turnover </li></ul></ul><ul><ul><li>Cost of training </li></ul></ul><ul><li>Personnel productivity </li></ul><ul><li>Personnel reports, budgets and audit </li></ul>Human Resource Accounting And Information System
  7. 7. 28-7 <ul><li>The human resource information system is a method by which an organisation collects analyses and reports information about people and jobs. HRIS is designed, basically, to meet the following objectives: </li></ul><ul><li>Offer adequate, comprehensive and on going information system about people and jobs </li></ul><ul><li>Supply up-to-date information at a reasonable cost </li></ul><ul><li>Offer data security and personnel privacy. </li></ul>Human Resource Information System Human Resource Accounting And Information System
  8. 8. 28-8 Benefits of HRIS <ul><li>HRIS can process, store and retrieve enormous quantities of data in an economical way. </li></ul><ul><li>The records can be updated quickly. </li></ul><ul><li>There is improved accuracy. </li></ul><ul><li>HRIS can greatly reduce fragmentation and duplication of data. </li></ul><ul><li>Information can be readily manipulated, merged and disaggregated in response to special and complex demands and presented promptly. </li></ul>Human Resource Accounting And Information System
  9. 9. 28-9 Important uses of a Human Resource Information System Human Resource Accounting And Information System Labour relations   Union negotiation rewards   Attitude   Eeit interview analysis   Employee work history HR planning and analysis   Organisation charts   Staffing needs   Skills inventories   Turnover analysis   Absenteeism analysis   Job posting   Internal job matching   Job description tracking   Workforce utiliz   Availability analysis HR Development   Employee training profits   Trainings needs assessment   Succession planning   Career interests and experience Staffing   Recruiting Sources   Application tracking   Job offer refused analysis Compensation and Benefits   Pay structures   Wa r e/salary administration   Benefit plans and usage analysis   Vacation usage   Implementing legal stip ulations Health, Safety and   Safety train in g   Accident rewards   Employee health record   Compliance with various acts Per   Employee competency data   Matching a c tual performanc e with standards HRIS Labour relations   Union negotiation rewards   Attitude survey results   Eeit interview analysis   Employee work history HR planning and analysis   Organisation charts   Staffing needs   Skills inventories   Turnover analysis   Absenteeism analysis   Job posting   Internal job matching   Job description tracking   Workforce utilization   Availability analysis HR Development   Employee training profits   Trainings needs assessment   Succession planning   Career interests and experience Staffing   Recruiting Sources   Application tracking   Job offer refused analysis Compensation and Benefits   Pay structures   Wa r e/salary administration   Benefit plans and usage analysis   Vacation usage   Implementing legal stip ulations Health, Safety and Security   Safety train in g   Accident rewards   Employee health record   Compliance with various acts Performance Appraisal   Employee competency data   Matching a c tual performanc e with standards HRIS
  10. 10. 28-10 Setting up Human Resource Information System <ul><li>HRIS can be set up through a four step process </li></ul><ul><li>Identifying the needs of a firm </li></ul><ul><li>Organising the flow of information </li></ul><ul><li>Implementing the plan </li></ul><ul><li>Evaluating the whole exercise to find gaps and to rectify them </li></ul>Human Resource Accounting And Information System
  11. 11. 28-11 <ul><li>Computerised HRIS </li></ul><ul><li>A computerised HRIS is designed to monitor, control and influence movement of people from the time they join the organisation till the time they decide to leave the organisation. </li></ul><ul><li>Recruitment information </li></ul><ul><li>Personnel administration information </li></ul><ul><li>Manpower planning information </li></ul><ul><li>Training information </li></ul><ul><li>Health information </li></ul><ul><li>Appraisal information </li></ul><ul><li>Payroll information </li></ul><ul><li>Personnel research information </li></ul>Human Resource Accounting And Information System Human Resource Information System

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