1. HUMAN RESOURCE ACCOUNTING AND INFORMATION SYSTEM
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EXCEL BOOKS
HUMAN RESOURCE ACCOUNTING AND INFORMATION SYSTEM

2. ANNOTATED OUTLINE INTRODUCTION
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ANNOTATED OUTLINE
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

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Advantages
Throws light on the strengths and weaknesses of the existing workforce in an organisation. This, in turn, helps management in recruitment planning.
Offers valuable feedback to managers regarding the effectiveness of HR policies and practices.
Helps potential investors judge a company better on the strength of the human assets utilised therein
Helps management in taking proper decisions regarding the use of human assets in an organisation.
Human Resource Accounting And Information System

4. Limitations Not easy to value human resources in an organisation
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Limitations
Not easy to value human resources in an organisation
Full of measurement problems
Employee and unions do not like the idea
Empirical evidence does not support the idea
Human Resource Accounting And Information System

5. Approaches To Human Resource Accounting
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Approaches To Human Resource Accounting
Monetary measures
Historical cost method
Replacement cost method
Opportunity cost method
Economic value method
Asset multiplier method
Discounted present value of future earnings method
Non-monetary measures
Expected realisable value method
Discounted net present value of future earnings
Human Resource Accounting And Information System

6. Approaches to analyse and control manpower
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Approaches to analyse and control manpower
Some of the widely used approaches to analyse and control manpower costs may be listed thus;
Management by objectives
Ratio analysis
Cost of recruitment
Recruitment cycle time
Cost of turnover
Cost of training
Personnel productivity
Personnel reports, budgets and audit
Human Resource Accounting And Information System

7. Human Resource Information System
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Human Resource Information System
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:
Offer adequate, comprehensive and on going information system about people and jobs
Supply up-to-date information at a reasonable cost
Offer data security and personnel privacy.
Human Resource Accounting And Information System

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Benefits of HRIS
HRIS can process, store and retrieve enormous quantities of data in an economical way.
The records can be updated quickly.
There is improved accuracy.
HRIS can greatly reduce fragmentation and duplication of data.
Information can be readily manipulated, merged and disaggregated in response to special and complex demands and presented promptly.
Human Resource Accounting And Information System

9. Important uses of a Human Resource Information System
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Important uses of a Human Resource 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
Human Resource Accounting And Information System

10. Setting up Human Resource Information System
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Setting up Human Resource Information System
HRIS can be set up through a four step process
Identifying the needs of a firm
Organising the flow of information
Implementing the plan
Evaluating the whole exercise to find gaps and to rectify them
Human Resource Accounting And Information System

11. Human Resource Information System
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Human Resource Information System
Computerised HRIS
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.
Recruitment information
Personnel administration information
Manpower planning information
Training information
Health information
Appraisal information
Payroll information
Personnel research information
Human Resource Accounting And Information System