BBM(2014-2017)Sec “A”

Group 11

Most precious

asset of an

Organization

is its employees.

• HRA is accounting for people as an organizational resource. It involves

measuring the costs incurred by organizations to recruit, select, hire, train,

and develop human assets. It also involves measuring the economic value of

people to the organization.

• Art of valuing, recording and presenting systematically the worth of

human resources in the books of account of an organization.

• The need for human asset valuation arose as a result of growing concern for human relations management in the industry.

• Consider people as its asset.

• Attract and retain qualified people.

• Profile the organization in financial terms.

• To have an analysis of the human asset.

• To aid in the development of management principles, and proper decision making for the future.

• Furnishes cost/value information for making management decisions about acquiring,

allocating, developing, and maintaining human resources in order to attain cost

effectiveness.

• Helps the management in the employment, locating and utilization of human resources.

• Helps in deciding the transfers, promotion, training and retrenchment of human

resources.

• Assists in evaluating the expenditure incurred for imparting further education and training

in employees in terms of the benefits derived by the firm

• Management tool designed to assist senior management in understanding the long

term cost and benefit implications of their HR decisions.

• Helps in identifying the causes of high labor turnover at various levels and taking

preventive measures to contain it.

• Helps in identifying improper or under-utilization of physical assets or human resource

or both.

• Provides valuable information for persons interested in making long term investment in

the firm.

• No specific procedure for finding cost and value of human resources of an organization

• Form and manner of including HRA value in the financial statement is not clear

• Employee with a comparatively low value may feel discouraged

• Tax laws do not recognize human beings as assets

Historical Cost

Replacement Cost

Opportunity Cost

Standard Cost

The Lev and Schwartz Model (Present value of future earnings method)

The Eric Flamholtz Model (Reward Valuation method)

Morse Model (Net Benefit Model)

Likert Model

The Flamholtz Model

Ogan Model (Certainty Equivalent Net Benefit Model)

HRIS – Human Resource Information System

Why it is needed?

Application And Its Utilities

HRIS – Development

Skills for Practitioners

Implementation

Advantages and Disadvantages

The Human Resource Information System (HRIS) is a software or online

solution for the data entry, data tracking, and data information needs of

the Human Resources, payroll, management, and accounting functions

within a business.

It merges HRM as a discipline and in particular its basic HR activities and

processes with the information technology.

Storing information and data of each and every individual employee.

Supplying data and submitting returns to government and statutory

organizations.

Provides a basis for planning , decision making , controlling and other

human resource functions.

Meeting daily transactional requirements such as recording employee

presence , grant leaves.

Complete Business Solution

Build you own Integrated System

Multiple System and Data Hub Approach (MS & DH)

Consulting Skills

Facilitation Skills

Self management

Communication Skills

Computer Skills

Personal administration - It will encompass information about each

employee , such as name , address , personal details etc.

Salary administration - Salary review procedure is an important function

of HRM , a good HRIS will actually provide all the important data related

to salary payments.

Skill inventory - It is also used to store record of acquired skills and

monitor the skill database both employee and organization level.

Career planning - System provides succession plans to identify which

employee have been en-marked for which position.

Conceive

and PlanAnalyse Design

Test Implement - Maintain

Advantages

Higher retrieval of data and processing of data.

Reduction in duplication of efforts leading to reduced cost.

Better work culture.

Improved quality of reports.

Disadvantages

It can be expensive in terms of

finance and manpower.

Thorough understanding of what constitutes quality information for the user.

Apple Computer System allows employees to enroll in benefits programs

directly from their personal computers. Line managers can process

traditional employee transactions such as pay increases, and they can use

learning modules that instruct them in skill improvement programs such

as conducting legal performance analysis.

HRIS in use :