HRIS,HR Accounting,HR Audit

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    SOUMYA S

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    Introduction Human Resources is an organizational function

    that deals with issues such as recruitment andselection, training, appraisal, compensation and

    performance management of the employee.

    A system, whether automated or manual, thatcomprises people, machines, and/or methods

    organized to collect, process, transmit, anddisseminate data that represent user information.

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    The Evolution of the HRIS First, paper files were located in the Personnel department.

    Then, punched card and magnetic media files were locatedin IS.

    Government legislation in the 1960s and 70s eventuallycalled management's attention to the importance of HRdata.

    In the late 1970's the concept of an HRIS was born.

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    HRIS - Introduction Human Resource Information System (HRIS) is a

    systematic way of storing data and information for eachindividual employee to aid planning, decision making, and

    submitting of returns and reports to the external agencies. It merges HRM as a discipline and in particular its basic HR

    activities and processes with the information technologyfield.

    It can be used to maintain details such as employeeprofiles, absence reports, salary admin. and various kindsof reports.

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    HRIS TrackPersonal Records

    Recruitment &Selection

    EmploymentEquity

    SalaryAdministration

    Trng. & Dev. Compensation

    EmployeeRelations

    BenefitsHR Planning

    PensionAdministration

    MedicalRecords

    Health & Safety Job

    People

    Positions

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    The Human Resources Function Facilitates the Flow of the Personnel

    ResourcesRecruiting

    Potentialemployees

    Hiring

    Employees

    Educationand

    Training BenefitAdministrationTermination

    Retiredemployees

    Data Management

    The Firm

    Human Resource Information SystemEvaluation

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    Objectives Of HRISEffective Planning and Policy Formulation HRIS provides support for future planning and also

    for

    policy formulations, both at micro and macro levels.

    Monitoring And Evaluation :

    HRIS facilitates monitoring of human resources demand and supply imbalances and evaluation of the

    policy n development and utilization of humanresource.

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    Contd.Providing Inputs to Strategic Decisions:

    HRIS provides required inputs to enterprise

    wide strategic decisions, like redundancy, rightsizing.

    Also HRIS helps to automate employee relatedinformation, cost minimization and faster response to

    employee related services.

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    HRIS-Stages Of DevelopmentNature and types of HRIS depend on the level and easeof use.

    Primary Level- The organization is interested inautomating processing of routine information. Itsfocus is on data, storage, processing and informationflows at operational level of organization. In HRIS it is

    called Electronic Data Processing (EDP) whichfacilitates data and files storage.

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    Contd..Second Level- The focus is shifted from EDP

    level to management information systems (MIS)

    level with more inquiry and report generationflexibility. This is intended for middle level

    managers to control operation, matching budget

    or projection.

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    Contd..Third Level- The enterprise wide decision support

    systems is one such HRIS type that facilitates decisionsat higher level in the organization. At this stage HRISis more interactive and capable of developing decision

    models on many strategic issues.

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    A model of a Human Resource information systemAccountinginformation

    systemHRs

    researchsubsystem

    HRsintelligencesubsystem

    Inputsubsystems

    Data Information

    HRISDatabase

    Internalsources

    Environmental sources

    Work forceplanningsubsystem

    Work force

    managementsubsystem

    Benefits

    subsystemEnvironment

    alreportingsubsystem

    Compensation

    subsystem

    Recruitingsubsystem

    Outputsubsystems

    Users

    Human Resource Information System

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    What is human resource accounting?

    To record, report and analysis human resource related

    figures through accounting system

    The result can be use for decision making purpose

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    Approaches to HRA The American accounting association committee

    has defined HRA is the Process of identifying andmeasuring data about human resources andcommunicating this information to interestedparties to facilitate effective management with inthe organization

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    Importance of HRA It helps in decision making in he following matters

    Employment , locating and utilization of humanresources

    Transfers, promotions, training and retrenchment ofhuman resources

    Planning of physical assets vis--vis human resources

    Identifying the causes for high turnover at variouslevels and taking preventive measures to contain it

    Locating the real cause of low return on investment

    It helps individuals employees in improving theirperformance and bargaining power

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    The aspects of HRAValuation of human resource

    Recording the valuation in the books of accounts

    Presenting the information ion the financialstatements of communication

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    Assumption underlying HRA People are valuable organizational resources

    capable of providing present and future services to

    the organization and such future services haveeconomic value to the organization and can bemeasured

    The information relating to the human resource

    would facilitate various management decisions onacquisition ,compensation, training anddevelopment

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    HR Audit HR Audit means the systematic verification of job

    analysis and design, recruitment and selection,orientation and placement, training and development,performance appraisal and job evaluation, employeeand executive remuneration, motivation and morale,participative management, communication, welfareand social security, safety and health, industrial

    relations, trade unionism, and disputes and theirresolution.

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    HR audit is very much useful to achieve theorganizational goal and also is a vital tool which helps

    to assess the effectiveness of HR functions of anorganization.

    The Human Resources (HR) Audit is a process ofexamining policies, procedures, documentation,systems, and practices with respect to anorganizations HR functions.

    The purpose of the audit is to reveal the strengths andweaknesses in the nonprofits human resourcessystem, and any issues needing resolution.

    The audit works best when the focus is on analyzingand improving the HR function in the organization.

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    Scope of Audit Generally, no one can measure the attitude of human

    being. It covers the following HR areas:

    Audit of all the HR function.

    1. Audit of managerial compliance of personnel policies,procedures and legal provisions.

    2. Audit of corporate strategy regarding HR planning,staffing, remuneration and other HR activities.

    3. Audit of the HR climate on employee motivation, moraleand job satisfaction.

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    Benefits of HR AuditBenefits to the organization are:1. It helps to find out the proper contribution of the HR

    department towards the organization.

    2. Development of the professional image of the HRdepartment of the organization.

    3. Reduce the HR cost.

    4. Motivation of the HR personnel.

    5. Find out the problems and solve them smoothly.6. Sound Performance Appraisal Systems.

    7. Systematic job analysis.

    8. Smooth adoption of the changing mindset.

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    Audit process The audit process consists of a series of questionscovering the eight primary components of the HRfunction:

    Roles, head count, and HR information systems(HRIS)

    Recruitment Documentation Training, development, and career management

    Compensation and benefits Performance measurement and evaluation Termination and transition Legal issues and personnel policies

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