Case study on human resources accounting and human

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Case study on human resources accounting and human

  1. 1. Case study on human resourcesaccounting and human resources audit BY MANISHA VAGHELA vaghela_manisha13@yahoo.co m BY: vaghela manisha 1
  2. 2.  Accounting is commonly known as language of business. The concept of HRA was not new in India. HRA was pioneered by public sector companies like Bharat Heavy Electronics Ltd. (BHEL) and Steel Authority of India Ltd. vaghela_manisha13@yahoo. BY: vaghela manisha com 2
  3. 3. “ Human Resource Accounting (HRA) means to measure the cost and value of the people (i.e. of employees and managers) in the organization. It measures the cost incurred to recruit, hire, train and develop employees and managers.” vaghela_manisha13@yahoo. BY: vaghela manisha com 3
  4. 4.  HR audit is very useful to achieve the organizational goals and also is a vital tool which helps to assess the effectiveness of HR functions of an organization. Human Resource Audit is an addition to the various tools and concepts used for effective management of human resources. It has a vital role to perform – particularly in the service industry where the human resources are a part and parcel of the product or service that is being consumed. vaghela_manisha13@yahoo. BY: vaghela manisha com 4
  5. 5. “The Human resource audit is a systematic survey of all the activities of a personnel programme and the manner in which this activities are undertaken.” vaghela_manisha13@yahoo. BY: vaghela manisha com 5
  6. 6. Case study of HR Audit on family run business vaghela_manisha13@yahoo. BY: vaghela manisha com 6
  7. 7. Background A family run business successful in its field for many years had always relied on good will from its staff. There are many employees working in their family business. They are manufacturing food products.Challenges1. As they employed more people the usual problems arose. What could they do about poor timekeepers?2. what should they be paying when people are off ill? vaghela_manisha13@yahoo. BY: vaghela manisha com 7
  8. 8. Solution: They contacted Vital HR to carry out an HR Audit to identify how they could improve their employment documents and how to define working rules.1) To solve the problem of poor time keepers HR department announce that the employees who are not coming in a time , company will charge penalty on them. vaghela_manisha13@yahoo. BY: vaghela manisha com 8
  9. 9. 2) After analysis of HR audit the result is declared that all employees became aware of what was expected of them, everyone was treated consistently with regard to eligibility for holidays, sick pay etc . If employees are remain irregular beyond the certain policy of company then their salary will be cut off per day. vaghela_manisha13@yahoo. BY: vaghela manisha com 9
  10. 10. case study on hr audit of bank’s employees vaghela_manisha13@yahoo. BY: vaghela manisha com 10
  11. 11. Background of Bank The Grahmin vikas bank in Baroda, there are many employees working in that bank. This bank follows many rules and regulations like providing training to employee, weekly performance appraisal of employee, give orientation training to them etc. vaghela_manisha13@yahoo. BY: vaghela manisha com 11
  12. 12. Challenge Because of change in technology there are many difficulty arise about1. How to understand bank’s transaction by new computer technology?2. How to work with computers and how to operate computer? vaghela_manisha13@yahoo. BY: vaghela manisha com 12
  13. 13. Solution1. Company will provide job to that people who can work on computer easily and basic knowledge of computer.2. With the help of HR audit bank sector decide to give training to all the employees. Company will give orientation training, basic knowledge of computer like MS-office, Tally software, data entry system and any other software relating to banking transaction. vaghela_manisha13@yahoo. BY: vaghela manisha com 13
  14. 14. Case study of B.M.S. department in S.N.D.T college on HR accounting vaghela_manisha13@yahoo. BY: vaghela manisha com 14
  15. 15. Background Smt.N.C.Gandhi and B.V.Gandhi mahila Arts and Commerce college. This college situated in Bhavnagar which is affiliated to S.N.D.T.bombay university. There are many departments in this college and one of that is B.M.S. department. There are approximately 100 students in this department. Mrs. Shilpa Bhatt is the head of the department and Mr. Milan Umaraliya is coordinator in this department. vaghela_manisha13@yahoo. BY: vaghela manisha com 15
  16. 16. Challenge During the December month in B.M.S. department the head of department Mrs.Shilpa Bhatt held industrial visit for all students in pipavav shipyard. At that time she gave responsibility to collect fees to one of the girl of S.Y B.M.S. Due to some carelessness of that girl , she was not maintaining proper records of fees. vaghela_manisha13@yahoo. BY: vaghela manisha com 16
  17. 17. Solution After summarized this case Mrs. Shilpa Bhatt give advice to keep proper record of fees and also suggest to take signature of all students and also record date and time at the time of receiving fees. From that time she also started to maintain records in her personal computer or file. vaghela_manisha13@yahoo. BY: vaghela manisha com 17
  18. 18. Case study on human resources audit vaghela_manisha13@yahoo. BY: vaghela manisha com 18
  19. 19. Background Sushan private limited was established by Sushan group in 1992. it is producing mainly healthcare products and earning very good profit every year. It has five departments of production, finance, marketing, personnel and stores. These departments are working in good co- ordination. Total manpower of SPPL is nearly 800 employees working at different levels. Industrial relations in this company were very good during last eight years. vaghela_manisha13@yahoo. BY: vaghela manisha com 19
  20. 20. Challenges : In 2001, one executive (Personnel and Administration) resigned from his job from personnel department. He was responsible for salary administration and employees attendance. For one year management did not fill up the vacancy and the functions of the vacant job were looked after by welfare officer who was overloaded with the work and was not in a position to give proper attention to this job of salary administration and employee attendance. vaghela_manisha13@yahoo. BY: vaghela manisha com 20
  21. 21. Due to this, the employees could not be paid salaryin time and sometimes wrong payments were alsomade. vaghela_manisha13@yahoo. BY: vaghela manisha com 21
  22. 22. Solution Company decide to make HR audit and then making some process HR department declare that company will hire a new officer for personnel department . By employing the new officer company will give satisfaction to employee subject to providing them salary. vaghela_manisha13@yahoo. BY: vaghela manisha com 22
  23. 23. Case study on Improper record kepping of human resource accounting vaghela_manisha13@yahoo. BY: vaghela manisha com 23
  24. 24. Challenge Company faces problem of improper record keeping. One technician in production department Mr. Satish who was regular in attending his duty was paid his salary for 10 days less in December 2001, where as another technician in the same department, Mr. Rajesh who used to be absent almost 15 days in a month was paid every month full salary. Mr. Sathish reported regarding salary deduction to his production manager and in turn production manager enquired from welfare officer. vaghela_manisha13@yahoo. BY: vaghela manisha com 24
  25. 25.  It was reported by welfare officer that Mr. Satish was absent for 10 days in the month and Mr. Rajesh attended on all days of month. But as per departmental attendance record Mr. Satish attended duty on all days of the month and Mr. Rajesh was absent for 15 days. These two things were entirely different and this attracted the attention of top management. vaghela_manisha13@yahoo. BY: vaghela manisha com 25
  26. 26. An inquiry was conducted and it was disclosed by Mr.Rajesh that employees used to sign the muster next day,because the register was not checked regularly.General manager of the plant discussed the issue withmanaging director to deal with the situation. vaghela_manisha13@yahoo. BY: vaghela manisha com 26
  27. 27. Solution After evaluation of problem HR department decide to purchase new attendance machine by which company can solve the problem of not to keep daily attendance book. With the help of this machine ,company can also avoid mistakes of wrong posting of attendance in register. vaghela_manisha13@yahoo. BY: vaghela manisha com 27
  28. 28. Question1. What is Human resource audit?2. What is Human resource accounting?3. Why company has to do HR audit and HR accounting?4. Who solve the problem of HR audit and HR accounting?5. if you are manager in HR department ,How can you solve the problems relating to HR audit and HR accounting? vaghela_manisha13@yahoo. BY: vaghela manisha com 28
  29. 29. vaghela_manisha13@yahoo.BY: vaghela manisha com 29

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