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Accounting
What is HRA?
Human Resource Accounting is the process
of identifying Investments made by the
organization in the Human Resource
Assets.
Objectives of HRA
To provide cost value information for making proper and effective
management decisions about acquiring, allocating, developing and
maintaining human resources in order to achieve cost effective
organizational objectives.
To monitor effectively the use of human resources by the
management.
To have an analysis of the human assets i.e. whether such assets
are conserved, depleted or appreciated.
To aid in the development of management principles. and proper
decision making for the future by classifying financial
consequences of various practices.
It helps the organization in decision making in the following areas:
Direct Recruitment vs. promotion, transfer vs. retention, retrenchment
vs. retention, impact on budgetary controls of human relations and
organizational behavior, decision on reallocation of plants, closing down
existing units and developing overseas subsidiaries etc
Advantages of HRA
It checks the corporate plan of the organization. The corporate plan
aiming for expansion, diversification, changes in technological
growth etc. has to be worked out with the availability of human
resources for such placements or key positions. If such manpower is
not likely to be available, HR accounting suggests modification of
the entire corporate plan.
It offsets uncertainty and change, as it enables the organization to
have the right person for the right job at the right time and place.
It provides scope for advancement and development of employees
by effective training and development.
It helps individual employee to aspire for promotion and better
benefits.
What is Audit?
The general definition of an audit is an
evaluation of a person, organization,
system, process, enterprise, project or
product.
The term most commonly refers to
audits in accounting, but similar
concepts
also
exist
in
project
management, quality management,
water management
HRD Audit
HRD Audit
is a comprehensive evaluation
of the existing HRD
Structure,
Strategies,
Systems,
Styles,
Skills / Competencies
Culture
What ?
HRD Audit is like an
annual health check-up, it
plays a vital role in instilling a
sense of confidence in the
Management and the HR
functions of an organization
Structure,
Strategies,
Systems,
Styles,
Skills / Competencies
Culture
HR
Audit
is
a
comprehensive evaluation
of the entire gamut of HR
activities
HR Cost
HRD activities
Health, Env. & Safety
Legal Compliance
Quality
Compensation &
Benefits
ABC
HRD
Systems
Maturity
HRD
Competen
ce Score
HRD
Culture
Grade
Business
Linkage
Grade
Overall
HRD
Maturity
rating
B*
B*
B*C B*B
Assumption
Competent and motivated
employees are needed to provide
quality products and services at
competitive rates and ways that
enhance customer satisfaction
Challenges in HRD
Audit
Build and improve quality consciousness
Strive to recruit and retain competent , creative
employees
Align biz processes with technology infrastructure