OTHER BUSINESS PROCESSES CHAPTER 8

HUMAN RESOURCE BUSINESS PROCESS The Primary Objective of the human resource process is to provide the human labor and expertise that an organization needs to function efficiently and effectively. The more important responsibilities of the human resource needs, here people to fill those needs, train the people to function effectively in their assigned jobs, evaluate employee performance, pay employees for work performed, and handle employee terminations and retirements.

Traditional Manual Payroll Process The personnel Division hires the employee, authorizes a rate of pay, and collect information about marital status and number of dependent for payroll deduction purpose. Cost accounting use the job time tickets to post labor cost to job order cost sheets The payroll division verifies pay rates and calculates deduction for such items as Social security taxes (FICA), federal and state income taxes, as well as net pay. This process has several key data flows and control points. Key data flows include the job time tickets, time cards, payroll register, pay voucher, and checks to the imprest payroll account and to individual employees.

From Timekeeping Attendance time cards Prepare batch Total Key to disk and edit Time data Run 1 Sort by employee number

EXHIBIT 8-2 Traditional Automated Sales/Collection Process Flowchart-Shipping

Information Needs in The Human Resource Business Process Some of the key business events associated with the entire human resource process including headcount approva, hiring, training, assigning, compensating, evaluating and terminating. Approved headcount is a key tool for controlling labor costs.

EXHIBIT 8-3 REAL Model of The Human Resource Business Headcount List Propose Human Resource Panning Committee Hiring Officer Cash Payroll Employees Review/APPROVE Hire Train Assign Pay Terminate/Retire Trainers Supervisor

Sample Process Relationship EXHIBIT 8-4 Sample Process Relationship Other Financing alternatives Sales/Collection Process Acquisition/Payment process Conversion Business Human resource Cash Labor Materials Goods and services

Money market accounts that bear interest Certificates of deposit (CDs) Organization can invest excess cash from operations in a variety of option including : Short and long-term investments in financial instruments of other companies Money market accounts that bear interest Certificates of deposit (CDs) Treasury notes

EXHIBIT 8-5 Sample Equity Company Financing REAL Model Debt Financial Instruments Approve New Loans Cash Assets Financial Finance Employee Financing Institution Accounting Personnel Borrow Money Sell Stock Receive Invest Excess Funds Principal & Interest Payments Disburse Executive Committee (1,1) (0,*)

Sample Conversion Process Data Flows EXHIBIT 8-6 Sample Conversion Process Data Flows Conversion process Inputs Raw Materials Equipments Labor Acquire Inputs through : Acquisition/Payment process Human Resources Process Products Services Sell Outputs Through - Sales Collection Process Outputs

Flow of Resources – Manufacturing Process EXHIBIT 8-7 Flow of Resources – Manufacturing Process Acquired Used Labor Costs Equipment and Other Raw Materials Allocated Amount Materials overhead Units completed sold Work in Process Finished Goods

Nicol’s Bottling Conversion Process REAL Model EXHIBIT 8-8 Nicol’s Bottling Conversion Process REAL Model (without Relationship semantics) Raw Material Inventory Head Glass Compound Work in Process Finishers Finished Goods Equipment Furnace Operators (1,1) (0,*) (1,*) Packagers Package Bottle Pour Glass Into Molds Finish and Label Pourers

EXHIBIT 8-9 Generic Overview of an Entire Business Financial Instruments Investment activities Human Resource Goods/services Resources Customers Employees Property, Plant & Equipment Cash Vendor Acquire Financing Hire & use employee service Convert/Build Products Sell Goods Services Receive Purchase Disburse Inventors & Creditors

Forest & Kappa, CPAs: Sales/Collection Process Model EXHIBIT 8-10 Forest & Kappa, CPAs: Sales/Collection Process Model Product & Services Product-Sell Engagement Collect Cash Client Sell Engagement (1,1) (1,*) (0,*) Employee Play

Forest & Kappa, CPAs: Conversion Process Model EXHIBIT 8-11 Forest & Kappa, CPAs: Conversion Process Model Phases & Task Phases-Develop Work Plan Billing Rate Perform Audit Perform Audit- Auditor Employee Develop (1,1) (1,*) Supplies & Equipment-Audit supplies & Equipment (0,*)