The Challenges And Principles Of Human Resource Accounting

Human resource is an appellation used in referring to the workforce of an organization or company. Human resource management is involved in the act of putting together employees in an organized manner to assure the objectives of the organization are achieved in a competent and experienced manner. Human resources are the most important services of any organization since they are the catalysts of non-human resources and the medium for developing competitive advantages and sounds of creativity. No organization can exist without a human resources department (Walsh, 2009). A company without an HR department would be reducing its operations and could collapse within a short amount of time.

Human resource departments today have a more distinct, calculated position within organizations, and human resource strategy influences the bottom line. “One of the challenges for HR leaders is convincing executive leadership teams that human capital is one of the most important resources in which the company can invest” (Mayhew, 2014, p.). Subsequently, “this return on investment is an essential part of the argument for including HR as part of an overall business strategy” (Mayhew, 2014, p.). Human resource departments utilize the information given to them from company executives and leaders, coupled with their respective expertise on all things personnel, and they plan and implement staffing concerns for the betterment of the organization. From preparing job analysis, to comparing inventory and forecasting, it is the responsibility of human resources to consider the objectives of an organization and fulfill those goals while operating the specific planning relative to HR.

In the modern and changing global business environment, human resources management (HRM) has been linked to the heart of business success and high performance of organizations (Haslinda, 2007). High demand for innovation, customer satisfaction and increased sales volume in the search and internet industry and finance industry has forced organizations such as Google Inc and Absa to incorporate human resources practices in their business strategy. Various human resources practices has been adopted at Google Inc Company and ABSA Group Limited, which include recruitment and selection, training and development, compensation, just to mention a few (Google Inc, 2012 ;Best employers, 2011). Despite sporadic arguments over the

Human resources and the services they provide can be seen as the crucial link between staff and the achieving the business goals and objectives.

The primary function of human resources management is to increase the effectiveness and the contribution of employees, which are in alignment with the organizations goals and objectives. With in human resources management, there are many components or pieces of the puzzle that allow human resources management to exist. Such pieces of the puzzle include, equal employment opportunity, affirmative action, human resources planning, recruitment, selection, development, compensation, benefits, safety, health and benefits. Each of which will be discussed. In human resource management,

Cascio, W. (2013). Managing Human Resources: productivity, quality of work life, profits (ninth edition). New York, NY: McGraw – Hill Companies, Inc.

In today’s world, it is vital for each and every organisation to collect and keep personnel data of the organisation. Human resource function is such a vital role in any organisation as it is responsible for collecting accurate data and how that data should be managed. Human resource function also covers the legal implications of storing data and will enable managers to record data and information and to interpret, analyse and present information clearly and accurately in an appropriate format in support for decision making.

Human resource management is one of the vital parts of any organization. Employees are the critical components for the success of business units, they make important decisions, and they are to blame for the failures of firms. Employees are intangible assets for most organizations, and they are the primary source of making value-added decisions. Eyvazi et al. (2013) selected 1859 employees to participate in the study based on the four

How well a business manages its assets and resources predicates its overall success. Companies that spend financial resources foolishly are apt to find themselves in bankruptcy. Companies that work capital equipment resources beyond the machine’s capabilities or for other than intended purposes are apt to experience downtime and/or lose the equipment to failure. The same premise holds true for a company’s human assets. However, unlike other company assets, which depreciate over time, human assets appreciate over time when managed properly. The article, Importance of Human Resource Investment for Organizations and Economy: A critical Analysis, explains the importance of managing human assets as follows:

Auditing human resources processes reveals whether or not an organization is working in as economical a way as attainable. Human resources employee’s qualifications and experience are usually a part of an audit to assess the strength and capabilities of the department. The

The economic environment in nowadays dynamic, it is fairly important for organisations and managers to recognise the curtail of Human Resource Management. It is clear that Human Resource Management (HRM) has become one of the most recommend management strategy in the modern business (Leopold and Harris, 2009). Human Resource Management is a technique process of managing people in the workplace to enable and enhance organization performance (Leopold and Harris, 2009). This theory involved the responsible to attracting, selecting, training and managing people which make employees become more valuable to the organisations. It invests effect in learning and development at work. Also to communicate with all employees at each level to reward successful employee relations (Wilton, 2011). Human Resource Management plays a very important role in the operation strategy and management concerns in work organisations of all kinds (Leopold and Harris, 2009). In aim to justify this statement by evaluate the benefit and importance of Human Resource Management in contemporary work organisations. This essay will focus on analysis the advantages of use Human Resource Management in business also underline by explain more detail about the different HRM strategy brings benefits and give competitive advantages impact to the organisation success. Then summarise by a general conclusion on the importance of HRM in contemporary work organisations.

Human Resources constitute as one of the most imperative components of any organization, be it small scale business or a large conglomerate. Some of the key functions of the Human

Do you remember when you first decided to start a small business. The vision was clear and the excitement drove us from imagination to plan to reality. But, before we knew it, we went from happily wading in the waters of our areas of expertise into the deep and sometimes turbulent waves of the unknown; Human Resources. Human Resource functions include: Payroll, Employment Tax, Recruitment, Hiring, Employee Relations, Termination, Regulatory Compliance and Training to name a few. Each of these functions demanded specific skill sets and experience. They also began to expend valuable time and resources.

Maria L. Bullen Clayton State University Kel-Ann Eyler Wesleyan College Abstract Human Resource Accounting (HRA) involves accounting for expenditures related to human resources as assets as opposed to traditional accounting which treats these costs as expenses that reduce profit. Interest and contributions to growth in HRA have been evident in a number of countries. The strong growth of international financial reporting standards (IFRS) is an indication that the environment for international financial accounting is one that potentially encourages the consideration of alternative

Nowadays, Human Resource Management is an important field which we have to take into consideration if we are a large company, because now we move to a more knowledge based and interactive global economy.