The human concept of labor has been recognized widely in the industrial world. The employer, though not bound, provides several benefits and services to the employees, working in the organization to maintain and promote the employees’ favorable attitude towards the work and work environment, because maintenance of favorable attitude towards the work and work environment, because maintenance of favorable attitude is an essential part of motivation and high morale. Such benefits and services, being a part of wage and salary administration, include all expenditure incurred to benefit employees over and above regular wages and direct monetary incentives related to output and are generally referred to as fringe benefits.… Read the rest
Human Resource Management
Human Resource Management (HRM) is branch of management that deals with people at work, it is concerned with the human dimensions of management of the organization. As organization consists of people, therefore acquiring them, developing their skills, providing them motivation in order to attain higher goal and ensuring that the level of commitment is maintained are the important activities.
Human Resource Cost Reduction
Cost reduction is defined as the achievement of real and permanent reduction in the unit cost of goods manufactured or services rendered without impairing their suitability for use intended. Cost reduction must be real and increase productivity. It must be permanent and should not impair the suitability of products or services for the intended use.
The scope of cost reduction is wide and it could be applied to wherever cost is incurred. In many organizations the cost of human resources is very high. The top management should find ways by which the cost of human resources is reasonably reduced. Any abnormal reduction of cost in this regard may lead to unfavorable organizational climate.… Read the rest
Human Resource Cost Analysis
Human resource cost analysis is the study of behavior of cost in relation to one or more HR criteria. Controlling manpower costs has now become important for organizations, particularly when we are required to look within for cost savings to sustain organizational growth and profitability. To enforce control on HR costs, it is essential to develop a check-list at the outset. This requires grouping of activities under different cost heads and then Identifying the individual cost elements under each head. By developing an HR costs spreadsheet, we can understand the magnitude of HR costs in an organization. Element-wise cost trend over the years facilitates regular monitoring and operational control.… Read the rest
Cost Based Approaches to Human Resource Accounting
Human Resource Accounting is an attempt to identify and report investments made in the human resources of an organisation that are not presently accounted for under conventional accounting practice. Basically, it is an information system that tells the management what changes overtime are occurring to the human resources of the business, and of the cost and value of the human factor to the organisation. The system may serve both the internal and external users, providing management (internal users) with relevant data on which to base recruiting, training and other development decisions and supplying investors, lenders and other external users of financial statement with information concerning the investment in and utilization of human resources in the organization.… Read the rest
Models of Organizational Behaviour
The effect of an effective organizational behavior system is to produce motivation. Such motivation builds two way relationships. It means that management and employees are jointly benefited without manipulation of one party by the other. Each type of employee is in need of a particular climate. In order to build up a sound climate, executives must understand their people in the organization. The significant factor is that what motivates job performance in general and in building an overall climate conducive to motivation. The individual differences suggest that there can’t be any all purpose organizational climate. The following are the five models of organizational behaviour based on which the organizational climate ought to be fixed.… Read the rest
Human Resource Audit
Human Resource Audit or HR audit is a systematic survey and analysis of different HRD functions with a summarized statement of findings and recommendations for correction of deficiencies. It examines and evaluates policies, procedures and practices to determine the effectiveness of HRD function in an organization. HRD audit ensures that sound and cost-effective policies are implemented.
Human resource audit refers to the checking of the performance of the enterprise in its management of human resources. Human resource audit reveals how the management is doing in getting things done through the efforts of its people. It undertakes a systematic research of the effectiveness of the human resource programmes.… Read the rest