In today's business environment, the ability of enterprises to achieve its goals depends on the efficiency of their human resources in performing their work. If enterprises desire to achieve creativity, innovation, develop its products, work faster, get efficient use of information technology; there is no way in front of these enterprises unless to be aware of its Human Resources (Haddad, 2014).
Actually, human resource is regarded as a key source of competitive advantage and a value creator to the organizations. Human resources are the key players in the production process as all the processes of the organization are operated by them. They are the source of creativity and innovation, they design the product, supervise manufacture, control
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The inclusion of appropriate human resource data in published financial statements would make such statements more meaningful in predicting future performance which is the main concern of investors in making rational investment decisions (Bullen et al., 2010). Accordingly, researchers believe that the information concerning human resources is relevant, has a relative importance, and useful for a wide range of decisions taken by both internal and external users (Okpala and Chidi, …show more content…
Accordingly, all of these pressures have led to the emergence of Human Resources Accounting, which is based on considering human resources as an asset to be measured and disclosed within the financial reports.
3. The emergence of human resource accounting:
Human Resource Accounting is a new branch of accounting. Although, the concept of human resource accounting was established primarily for the service sector; however it has started to gain so much relevance in all sectors and a good weight is given to these reports when making any company analysis as it helps to reflect the true and fair view of the companies’ financial position (Abu Bakar, 2011, Enofe et al., 2013, Rahaman et al., 2013).
3.1. Definition of Human Resource Accounting (HRA):
The concept of HRA can be better understood through important definitions given below (El- Bardawil, 2012, Maheshwari et al., 2009,Abubakar,
Organizations’ other resources can be hired, retained and discarded at any time but human resources needs special treatment. It needs to be carefully hired, deserve an extra effort to retain it and requires training & development to upgrade and improve its capabilities. Other resources depreciate with the passage of time but when the human resource gains more and more experience, it becomes more beneficial for the organizations. These characteristics have brought human resources to be the central element for the success of an organization. (Mohammed, Bhatti, Jariko, and Zehri, 2013, pg. 129, para. 2)
The human resources department within a business looks after the labour side of the organisation. This sector is what used to be known as the personnel department, and deals with all aspects of the structure, recruitment, appraisal, selection and training of the workforce. The human resource department is also responsible for looking after the general welfare of the employees, implementing health and safety legislations at work and dealing with disputes, appraisals, complaints and grievance procedures that may arise. Human resource management is the management of labour within a business and involves a few factors in which help keep the human resources department well organized and maximize on efficiency. These are: Organizational strategy-
The Human Resources department is dedicated to hire and build an excellent team with a great teamwork and leadership. As one of the most important strategies of the business is the innovation of their products, it is needed people who can add value to the company through its diversity, innovation and entrepreneurial spirit, in a competitive and fun environment.
Terms of reference: This report is being produced to fulfil the criteria required for Unit four of the Advance Vocational Certificate of Education (AVCE) course in Business Studies. It will give a comprehensive overview of the way's in which the human resources function(s)', within businesses are organised and managed and how they operate, and an analytical insight into the human resource management team, of the business that I' am focusing on, which is HSBC Group Plc. The report will specifically focus on the possible conflicts of interest between employees or individuals, the way's which human resources planning procedures take place, the recruitment and selection process, training and development programmes and performance management at HSBC Group Plc, in view of the current economic climate for retailing/banking. An Introduction to the Report: In this assignment, I have been asked to structure an analytical approach, about human resources and its effects, on one business, and to file all of my information in one simple, but sophisticatedly structured report.
The function of Human Resources in corporations usually includes the use of metrics and analytics through collection of data on the employees’ efficiency. HR metrics are used to quantify the cost and the impact of employee programs and HR processes and measure the success or failure of HR initiatives (Missildine, 2013). The company is able to track trends and changes with the data collected as it provides for measurement function that helps with HR planning. HR metrics measure the value of the time and money spent on HR activities in the company and together with HR metrics is the HR analytics which is the process of combining data mining with business analytics techniques to analyze human resources data (Missildine, 2013) and provide an organization with considerations for the effective management of employees and quickly and efficiently reach organizational goals. The main issue lies on whether the managers know what to measure and how measurement must be conducted.
2. “HR pursues efficiency in lieu of value.” The departments waste a lot of time reporting efficiency measures such as the percentage of workers with superior training or the degree of worker satisfaction because it is easier to measure than the impact of those activities on the organization’s bottom line. Human Resource departments argues that these activities and metrics are important to know, but those metrics don’t sustain in a vacuum. Most program and/or activity that the HR division endorsements and implementation must bring significant value to the companies and help it achieve soaring performance. Just as the metric ‘Return on Investment’ explicates the impact of investments on an individual’s or an organization’s bottom line, so must the mangers of this department develop a similar metric to understand the financial impact their activities have on the success of an organization.
Human resource is the most valuable resource in any one given organization. Organizations that invest in the training and development of their workforce are bound to make huge progress and achieve competitive advantage over their competitors. Such organizations are able to embrace and exploit new technologies in their operations. Motorola Company is a casing company that has invested in training and development of its human resource.
However you define the activities of management, and whatever the organisational processes are, an essential part of the process of management is that proper attention be given to the Human Resource function. The human element provides a major part in the overall success of the organisation. Therefore there must be an effective human resource function. In the past, most organisations viewed Human Resource Management (HRM) as an element function, that is an activity that is supportive of the task functions and does not normally have any accountability for the performance of a specific end task. Because of the emphasis on analysis and precision there is a tendency for strategists to concentrate on economic data and ignore the way in which human elements and values can influence the implementation of a strategy. 'Economic analysis of strategy fails to recognise the complex role which people play in the evolution of strategy - strategy is also a product of what people want an organisation to do or what they feel the organisation should be like.?(1).
Iveta, G. (Mar. 2012). Human Resources Key Performance Indicators. Journal of Competitiveness. Vol. 4, Issue 1. Retrieved from http://www.cjournal.cz/files/89.pdf
It represents the Strategic human resource management (SHRM) core function like “work analysis, Job design and job analysis” defines its importance in strategies implementation in any organization. This assignment will also discuss the aspect of Human Resource department that why they are giving more edge to other functions like Recruitment and selection, Performance appraisal and Occupational health and safety. This report will also presents the today’s critical business challenges and the with coming new responsibilities for HR and why they have started to give more weightage to Job analysis and design in order to get the better output and efficiency of the organization. Moreover, Human capital is a vital factor for any department in any organization. “Hiring smart” is becoming a fashion trend for companies for their effectiveness, productivity and employee motivation as the more investment will be done in employees by the firms. It continues with the recommendations on the need of analysis and design of work and how to make employees motivated in the company.
The Importance of the Human Resource Function Human resources are the backbone of any business. It deals with the most important resource in the business – people. For any business to achieve its objectives they must plan their resources and one of their key resource is people. They need to get the right people and develop. them well in order to meet the organisation’s aims successfully.
Human resource is the most valuable and unique asset of an organization. The successful management of an organization’s human resource is an exciting, dynamic and challenging task , especially at a time when the world has become a global village and economies are in a state of flux. The lack of talented resource and the growing expectation of the modern day employee has further increased the difficulty of the human resource function.
The human resource management stands for the management of an entity’s workforce and all that relates to the workforce. The significance of human resource management includes recruitment, orientation, and the ability to retain employees. The human resource management with other managers utilizes these practices in order to produce a solution that relates to challenges. A competitive advantage refers to the business ability to gain the advantages of its economic activities that, it recognizes the organization’s ability to survive and overcome competition in the marketplace. This paper will discuss the concept of competitive advantage in human resource.
Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)
Accounting is a very important term to our modern society. It is the career for men and women who at the start have their eyes set on top positions in industry, management, government, and general business. Accounting is a basic need of every businessman, from the operator of a filling station to the government of the United States. It's so important to our society. None of the business organization can operate without is. They are there-somewhere-in every business. In small business, people use pen, ink and skill keep the records. In large business, modern accounting machines are used to operate. Men and women are directing these machines in the accounting process. Wise businessmen enter business must have some accounting knowledge.