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ASSIGNMENT
Course Code : MS -23
Course Title : Human Resource Planning
Assignment Code : MS-23/SEM -1/2011
Coverage : All Blocks
----------------------------------------------------------------------------------------------------------------------------------------------------------
Q1. Explain the concept and process of human resource planning. Describe the forecasting techniques which are
being used
in your organisation or any organisation you are familiar with. Briefly describe the organisation you are referring to.
Ans. In simple terms, Human resource planning is manpower planning. It is the process which includes forecasting,
developing, implementing and controlling by which a firm ensures that it has the right number of people and the
right
kind of people at the right places, at the right time doing work for which they are economically most useful.
In the words of stainer, “ HR planning is the strategy for the acquisition , utilisation, improvement and preservations
of
an enterprise’s human resources”.
Manpower planning could be seen as a series of activities, consisting of the following.
(i) Forecasting future manpower requirement
(ii) Inventorying present manpower resources and analysing the degree to which there resources are employed
optimally.
(iii) Anticipating manpower problems by projecting present resources into the future and determine their
adequacy
both quantitatively and qualitatively.
(iv) Planning the necessary programme of recruitment, selection, training, development, deployment, utilisation,
transfer, promotion, compensation and motivation. So that future manpower requirement will be met.
Objectives of HR Planning
(i) To ensure optimum utilisation of human resources currently employed
(ii) To assess or forecast future skill requirements.
(iii) To provide control measures to ensure that necessary resources are available as and when required.
(iv) To determine optimum level of training.
(v) To provide a basis for management Development Programmes.
Manpower planning is required at different levels depending on the purpose at those levels. It may be at the
national
level covering programmes of economic development, educational facilities etc.
Sector wise manpower planning includes agriculture sector, industrial sector, and service sector. There are industry
wise
manpower planning for specific industries such as textiles, chemical engineering and plantation. Also there may be
manpower needs of a particular enterprise.
(a) Types of HR Planning
Planning may be formal planning or informal planning. Formal is the product of recognised planning
programmes. They are documentary and become matters of record. In contrast, informal planning takes place
without special planning sessions. It may exist only in the minds of managers, or they may emerge as
suggestions, ideas and possibilities advanced in oral discussions.
Long term planning, which is described as strategic planning. These may need considerable change in
organisation structure, technology and the policies.
In contrast, short term planning are more likely to be concerned with specific projects and programmes. In
contingency
planning, potential hazards are identified and advance strategies are developed.
(b) Process of Human Resource Planning
The process of human resource planning involves the following steps.
(i) Deciding the objectives of Human resource Planning.
(ii) Estimating future organisational structure and manpower requirement
(iii) Manpower Audit
(iv) Job Analysis
(v) Developing of human resource plan
 Objectives may be short term or long term. The main objective is one of matching or filtering
employee abilities to enterprise requirements with an emphasis on future instead of present
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arrangements.
 The management also estimates the number and type of employees required in the future. Many
environmental factors affect this estimation; such as business growth, forecasts, expansion,
management philosophy, government policy, and labour market assessment.
 For manpower audit step “Skills inventory is done. In this step, the present supply of man power is
determined.
 The next step pf job analyse involves data collection. Various approaches are used for this purpose
such as;
1. Questionnaire’s
2. Written Narratives
3. Observations
4. Interviews.
Interview and observation method of collecting job information holds the greatest promise of completeness,
accuracy
and better utilisation of time. Questionnaires and written narratives can be used in providing back ground
information
for the interviews.
Job analysis involves job description and job specification. Information derived by the process of job analysis can be
utilised for various functions. Such as Training, performance, appraisal, counselling, organisational development,
career
development and labour relations etc. The final step of HR planning is development and implementation of human
resources plan.
FORECASTING TECHNIQUES: ASHOK LEYLAND CHENNAI
Demand forecasting is the process of estimating the quantity and quality of people required to meet future needs
of the
organisation. The basis of the forecast must not be the annual budget and long term corporate plan, translated into
activity levels for each function and department.
Ashok Leyland is a manufacturing company catering for the needs of not only Indian market but also neighbouring
countries like Srilanka and Bangladesh. In this company sales budget is translated into a production plan giving the
number and type of products to be produced in each period. From this information, the number of hours to be
worked by
each skilled category to make the quota for each period, is computed. Once the hours are available, determining
the
quality and quantity of personnel is a logical step.
Company considers several factors-both external as well as internal for demand forecasting. Among the external
factors
are competition, both foreign and domestic, economic, climate, laws and regulatory bodies, change in technologies
and
social factors. Internal factors include budget constraints, production levels, new products and services,
organisational
structure and employee separations.
Various techniques at the disposal for the forecasting of manpower are as follows:
Managerial Judgements
Ratio- trend Analysis
Regression Analysis
Work study Technique
Delphi technique
Flow models
Organisation generally follows more than one technique. In managerial Judgement technique, the managers sit
together,
discuss and arrive at a figure which would be the future demand for labour. They apply both “Bottom –up and top
down
approach. In the Bottom-up approach line managers submit their departmental proposals to top managers and they
arrive at the company forecast. In the top-down approach top managers prepare company and departmental
forecasts
and these forecasts are reviewed with department heads and agreed upon. Neither of there approaches is
accurate. A
combination of two could yield positive results.
In the Ashok Leyland company departmental managers prepare forecasts for their respective departments.
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Simultaneously top HR manager prepare company forecasts. A committee comprising departmental managers and
HR
managers reviews the two forecasts arrive at a unanimity, which is then presented to top managers for their
approval.
The company also uses the work study technique, regression analysis technique and Delphi Technique for
manpower
forecasting.
Regression Analysis forecast is based on relationship between sales and workforce size.
Thus company uses combinations of forecasting techniques effectively and successfully.
Q2. Explain objectives and various methods applied for conducting job evaluation in an organizational situation.
Describe
with an example from the organisation you are working in or familiar with. Briefly describe the organisation you are
referring to.
Ans. JOB EVALUATION
Job evaluation is the process of analyzing and assessing the various jobs systematically to ascertain their relative
worth
in an organization. Jobs are evaluated on the basis of their content and are placed in the order of their importance.
In
this way, a job hierarchy is established in the organization. The purpose of job evaluation is fixation of satisfactory

wage differentials among various jobs. Interestingly job holders are not ranked in job evaluation programme, but
“jobs” are
only ranked. Job holders are rated through performance appraised.
Scope of JOB EVALUATION
Application of job evaluation is universal, in other words, principles of job evaluation are relevant to all jobs and in
all
organizations. However, in practice, the technique of job evaluation is followed in a few companies and that too for
hourly rated jobs. In contrary to this performance appraisal is done regularly for all jobs by all firms. In
organizations
where job evaluation is not followed, wage and salary differentials are established, not on the basis of systematic
job
ranking, but on such factors as demand for and supply of labour, ability to pay, industrial parity, collective
bargaining
and the like.
Objectives
The Job evaluation process starts with defining objectives of evaluations and ends with establishing wage and
salary
differentials. The main objective of job evaluation is to establish satisfactory wage and salary differentials. Job
analysis
should precede the actual programme of evaluation. Job analysis provides job related data which would be useful in
drafting job description and job specification.
Job evaluation is done by a committee which consists of heads of various departments, representatives of
employee
unions and specialists drawn from the National Productivity Council. An HR Specialist will be normally the chairman
of the committee. Responsibility for the overall coordination of the job evaluation programme should be in the
hands of
senior executive who can then report its progress to the board, and advise it on ensuring wage and salary
development.
Job evaluation should not be conducted in haste. Any rushing through will lead to appeals against the grading of
jobs.
Eight jobs in a day can be the ideal pace. After this the quality of evaluation tends to drop and more time has to be
spent
later in checking and assessing the validity of the grading. The final review of all the grades allocated to check that
no in
consistencies have occurred, should be done meticulously and enough time should be allowed for reevaluation, if
necessary.
The heart of job evaluation is the determination of the criteria for evaluation. Most job evaluations use
responsibility,
skill, effort and working.
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Conditions as major criteria, other criteria are difficulty, time span of discretion, size of subordinate staff and
degree of
creativity needed. Thus it can be said that JOB evaluation criteria vary across various jobs.

METHODS OF JOB EVALUATION


Job evaluation methods are of two categories.
(a) Non analytic methods
(b) Analytic Methods

In Non –Analytic methods there is no use of detailed job factors. Each job is treated as a whole in determining its
relative ranking.
Ranking method: it is the simplest the most inexpensive and the most expedient method of evaluation. The job is
not
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broken into elements or factors. Worth of each job is assessed on the basis of its title or contents. Each job is
compared
with others and its place is determined.
The method is not free from draw backs. It is hard to measure whole job and method is subjective.
JOB GRADING METHOD: This method is based on job as a whole. It does not call for a detailed or quantitative
analysis of job factors. Difference between grading and ranking method of job evaluation is that, in the ranking
method
there is no yard stick for evolution where as in grade or classification method; there are grades or job classification
yardstick for evaluation.
The essential requirement of the job-grading method is to frame descriptions to cover discernible differences in
degree of skill, responsibility and other job characteristics job grades are arranged in the order of their importance.
The
lowest grade may cover jobs requiring greater physical work under chooser supervision, but carrying little
responsibility.
Each succeeding grade reflects a higher level of skill and responsibility with less and less supervision.
This method is very simple and inexpensive. This method yields satisfactory results organization where number of
jobs
is smaller. The disadvantages of these methods are:
1. Job grade descriptions are vague and are not qualified.
2. Difficulty in convincing employees about the inclusion of a job in a particular grade because of
vagueness in grade descriptions
3. More job classification schedules need to be prepared because the same schedule cannot be used for
all types of jobs.
ANALYTIC METHODS
POINT – RANKING METHOD: The system starts with the selection of job factors, construction of degrees for each
factor and assignment of point to each degree. Different factors are selected for different factors are selected for
different
jobs, with accompanying differences in degrees and points.
Advantages of this method are:
1. Procedure is systematic and can easily be explained to employees.
2. Simple to understand and easy to administer
3. Job are whole is not considered factors are considered.
FACTOR – COMPARISON METHOD
Under this method, one begins with the selection of factors, usually five of them.
→ Mental requirements
→ physical exertion
→ Skill requirement
→ Responsibility
→Jo conditions
These factors are considered to be constant for all the jobs. All the jobs are compared first by the factors mental
requirement, then the skill factors, physical requirement responsibility and job conditions are ranked. The total
point’s
values are assigned to each factor. The worth of a job is their obtained by adding together all the point values.
This method is complicated and expensive but jobs of unlike nature. E.g. manual, clerical and supervision may be
evaluated with same set of factors.

EXAMPLES:
Though job evaluation important aspect of management which helps in setting the wages and salary standards,
stills in
practice very few companies as following the job evaluation process. As per one survey, out of several plants
located in
and around Bangalore, only NGEF and the KEC have had their job evaluation conducted. In both, only hourly rated
were covered under the scheme.
Companies where job evaluation is not followed, wage and salary differentials are established on factors like
demand
and supply of lab our, ability to pay industrial priority collective bargaining and the like.
Q3. What are the prevalent recruitment practices and techniques adopted by the corporate sector. What are the
probable errors which can be committed in recent process. Briefly explain with the example from the
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organisation you are working for or known to you. Briefly describe the organisation you are referring to.
Ans. RECRUITMENT PRACTICES AND TECHNIQUES
Recruitment is the process of searching for and obtaining applications so as to pool of job seekers from whom
the right people for the right jabs may be selected. The purpose of recruitment is to build a pool of applicants.
Recruitment represents the firs contact a company makes with potential employees. Recruitment done well will
result in
better selections.
The philosophy of attracting as many applicants as possible for given jobs guided recruitment activities in the
past. These days the emphasis is on matching the needs of the firm to the needs of the applicants. This would
minimize
employee turnover and enhance satisfaction. Realistic job preview and job compatibility help achieve this.
SOURCES OF RECRUITMENT
The sources of recruitment are broadly divided into internal sources and external sources. Internal sources are
within the organization. External sources are the sources outside organizational pursuits.
a) Internal sources include
i) Present Permanent Employees
ii) Present Temporary / Casual Employees
iii) Retrenched or retired employees
iv) Dependents of deceased, disabled, retired and present employees.
b) External sources include
i) Campus Recruitment
ii) Private Employment Agencies or consultants
iii) Public Employment Exchange
iv) Professional Associations
v) Data Banks
vi) Casual Applicants
vii) Similar organizations
viii) Trade Unions.

Another way to look at the sources of recruitment is given on below:


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MODERN TECHNIQUES OF RECRUITMENT


1. Walk-ins, Write-ins and Talk-ins
The busy organizations and rapid changing companies do not find time to perform various functions of recruitment.
There they advise the potential candidates to attend an interview directly and without prior application, a specified
date,
time and at specified place. The suitable candidate from among the interviewers will be selected for appointment
after
screening the candidates through tests and interviews. Write-ins and talk-ins are also popular nowadays. In the
former
candidates are asked to send written applications from for further processing.
2. Head – Hunting .
The companies request the professional organizations to search for the best candidates particularly for the senior
executive positions. Head Hunters are also called search consultants.
3. Body shopping
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Professional organizations and the high-tech training institutes develop the pool of human resources for the
possible
employment. The prospective employees contact these organizations to recruit the candidates. These professional
and
training institutes are called body shoppers. The body shopping is mostly used for the computer professionals.
4. Business Alliances:
Business alliances are like acquisitions, merger and take over. They help in getting human resources. In addition to
this companies do also have alliance in sharing their human resources on ad-hoc basis.
5. Tele-Recruiting
The technological revolution in telecommunication helped the organizations to use internet as a source of
recruitment.
Organisations advertise the job vacancies through the World Wide Web (WWW) internet. The job seekers send their
applications through email or internet. Alternatively, job seekers place their CVs in the World Wide Web / internet,
which can be drawn by the prospective employers depend their requirements.
6. Employment Exchange
Employment Exchange has been set up all over the country in difference to the provisions of the Employment
Exchange (compulsory notification of vacancies) Act 1959. The Act applies to all industrial establishment having 25
workers or more. The act requires the industrial establishment to notify the vacancies before they are filled. The
major
functions of the Employment Exchanges are to increase the pool of possible applicants and to do preliminary
screening.
Thus Employment exchange act are important link between the candidates and prospective employees.
7 Campuses Recruitment
Colleges, universities, research laboratories, sports field and institutes are fertile ground for recruiters, particularly
the
institutes. The IIM’s and IIT’s are on the top of the list of avenues for recruiters
POSSIBLE ERRORS IN RECRUITMENT PROCESS TECHNIQUES
Various organizations use various techniques for recruitment of their human resources. As far as internal
recruitment is
concerned, apart from its advantages of cost effectiveness best selection as the management know the employees
skill
already and also motivation of the employees will be greater. On the other side it has many disadvantages too.
Firstly the
process perpetuates the old concept of doing things-there is lack of new talents which may hinder creativity.
Secondly
politics probably has the greater impact on internal recruiting and selection then does external recruiting.
Campus recruitment though highly popular but is an expensive process. Majority of those selected will have
the firms within the first five years of their employment. As far as walk in interviews are concerned, chaos and
confusion
is often so much that, more the candidates, the people who manage the show are often seen gasping for breath.
They
don’t know how many candidates are to be interviewed and how many positions are to be filled up. In the process
genuine candidates loose out, and convincing too!
In one of the intention for the post of a finance manger one person who had the required credentials for the job
was aghast to find out that the person who was interviewing was civil engineer. The management felt that handling
finance was like mixing cement with sand.
Recruitment in SBI
State Bank of India is premier public sector Bank in India. Many associated banks are under its jurisdiction and are
likely to be merged with SBI shortly. Bank notifies the vacancies in newspaper and “Employment News” and Rojgar
samachr” for its human resources. The conditions of eligibility are clearly defined in simple language. For clerical
grade
exam is conducted in two phases. Written test is objective type and candidates who qualify the written test which
have
negative marking also, are called for interview process. The process is comprehensive and all well laid out. With the
call
letter for exams a sample question papers is also sent in order to make the candidates aware of the questions.
On the other hand a firm shanmugan enterprise in Chennai which is dealing in packaging and courier service
through out India employs the process of recruitment as walk in interview. They believe that it is the common and
least
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expensive techniques but there is no screening so there is always chaos in the recruitment. So the process and
many
candidates throng the company premises. The result that recruiters often select wrong candidates where as a
genuine
candidates lose out convincingly, the management of the company is hiring consultants to make their recruitment
process more purpose and effective.
Q4 Explain the concepts and significance of Human Resource Information System in management of an
organisation.
Describe with an organizational example as to how the information is managed at the macro and micro level of an
organisation to enhance its effectiveness. Briefly describe the organisation you are referring to.
Ans.. HUMAN RESOURCE INFORMATION SYSTEM
Human resources information (HRLS) is a systematic procedure for collecting, storing, maintaining, retrieving and
validating data needed by an organization about its human resources.
The HRIS is usually part of the organization larger management information system (MIS). The HRIS need not be
complex or computer based. But computerization has its own advantages of providing more accurate and timely
data for
decision making.
The area HRIS are many. Some of them include, training management, risk management, turnover analysis,
succession
planning, flexible benefits administration etc.
It also covers in its scope, the compliance with government an legal requirements, attendance reporting and
analysis,
HRP, accident reporting and prevention, strategy planning, financial planning and other related areas.
STEPS IN IMPLEMENTING HRIS
AS with any major change proper planning is an absolute necessity for successful implementation of an HRIS. The
steps
outlined below describe the specific procedures involved is successfully developing and implementing an HRIS.
Steps I Inception of ideas
The idea for having an HRIS must originate some where. The originator of preliminary report showing the need for
an
HRIS and what is can do for the organization.

Step II Feasibility study:


Feasibility study evaluates the present system and details of the benefits of the HRS. it evaluates the costs and
benefits of
the HRS.
Step III selecting a project team:
After feasibility study and allocation of resources, a project team is selected the project teams consists of HR
representative and representative from both management information system payroll. As the project progresses,
additional clerical people from HR department are to be added
Step IV defining the requirement
A statement of requirement specifies in detail exactly what the HRIS will do. A large part of the statement of
requirements normally deals with the details of the reports that will be produces. Other specific requirements
include
written description of how users collect and prepare data, approval obtaining, complete forms, retrieve data and
perform
other non-technical tasks associated with HRIS use. The key here is to make sure that the mission of the HRIS truly
matches the management needs for an HRIS
Step V Vendor Analysis:
This step determination what hardware and software are available that with best meet the organizations needs for
the
lowest price. The results of the analysis with determine whether to purchase an off the shelf package or develop
the
system internally.
Step VI package contract negotiation
After a vendor has been selected the contract must be negotiated. The contract stipulates the vendor’s
responsibility with
regard to software installation service, maintenance, training and documentation.
Step VII training:
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Training usually begins as soon as possible after the contract has been signed. First the members of the project
team are trained to use the HRIS. Towards the end of the implementation, the representation will train managers
from
other departments in how to submit information to the HRs and how to request information from it.
Step VIII: Tailoring the system
This system involves making changes to the system to best fit for the needs of the organization. A general rule
of thumb is not to modify the vendors’ package, because modifications frequently cause problems. An alternative
approach is to develop programs that augment the vendors program rather than altering it.
Step IX: Collecting the data.
Prior to start up of the system data must be collected and entered into the system.
Step X: Testing the system.
Once the system has been tailored to the organizations needs and the data entered, a period of testing follows.
The purpose of the testing phase is to verify the output of the HRIS and to make sure it is doing what it is supposed
to
do. All reports should be critically analyzed for accuracy.
Step XI: Starting UP
Start up begins when all the current actions are put into the system and reports are produced. Even though the
system has been tested, some additional errors often surface during startup.
Step XII: Running in Parrallel:
Even after the new HRIS has been tested, it is desirable to run tee new system in parallel with the old system
for a period of time. This allows for the comparisons of output of both the systems and examinations of any
inaccuracies.
Step XIII: Maintenance
It normally takes several weeks or even months for the HR people to feel comfortable with the new system.
During this stabilizing period, any remaining errors and adjustments should be handled.
Step XIV: Evaluation
After the HRIS has been in place for a reasonable length of time, the system should be evaluated. Is the HRIS
right for the organization and is it being properly used?
Following the above steps when implementing an HRIS will not guarantee success, but it will increase the
probability.
Thus we can say that HRIS is not just useful in human resource planning. Its uses extended to the whole
gamut of HRM.
Significance of HRIS can be summerised under the following heads:

1. HR Planning and analysis


This include preparing organizational chart, staffing projections, skill inventories, turnover analysis,
absenteeism analysis, internal job matching and job description tracking etc.
2. Equal Employment
This includes affirmative action plan, application tracking, work force utilization and availability analysis.
3. Staffing .
The area under this are recruiting process, applicant tracking, Job offers and refusal analysis etc.
4. HR Development .
It includes Employee training profiles training needs assessments, succession planning and career interests and
experience.
5. Compensation and Benefits
These include, pay structure, wage / salary costing, flexible Benefit administration, vacation usage Benefits
usage analysis.
6. Health, safety and security
It includes safely training, accidents records, material data records.
7. Employee and Labor relations
This includes union negotiation costing, auditing, auditing records, attitude survey results Exit interview
analysis. Employee work history.
Q5 Explain the concept and approaches of Human Resource Accounting for effective management at the
organizational
level. Describe human resource accounting system of any organisation you are familiar with. Highlight the
advantages
of HRA system. Briefly describe the organisation you are referring to.
Ans. HUMAN RESOURCES ACCOUNTING CONCEPT AND APPROACHES
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IN general sense, human resources mean the energies, skill and knowledge of people which are or which potentially
can
or should be applied to productive activities. More specifically, human resources comprise the value of the
productive
capacity of the firm’s human organization. In other words, human resources refer to the aggregate of employees
attributes including knowledge, skill, experience etc. which are presently and potentially available to an
organization for
the achievement of its goals.
Human resources accounting is the process of identifying and measuring dates about human resources and
communicate
this information to interested parties. It is the process of developing financial assessment for the people within
organization and society and the monitoring of these assessments. HR accounting deals with investment in people
and
with economic results of those investments.
Thus, it’s essentially involves (a) Measurement and valuation of human resources and (b) communicating the
relevant
information to management and external users.
According to Stephen Knauf HRA is the measurement and quantification of human organizational inputs, such as
recruiting training experience and commitment. It is the measurement of the cost and value of people for the
organization.
Human resources may also be defined as the measurement and reporting of the cost and value of people as
organizational resources. It involves accounting for investment in people and their replacement costs, as well as
accounting for the economic values of people to an organization.
It has been recognized that human resources are more important that financial assets and HR assets make much
difference in ultimate results.
According to American Accounting Association, “Human Resource Accounting is the process of identifying and
measuring data about human resources and communicating this information to interested parties”.
Thus HR accounting is primarily involved in measuring the various aspects related to human assets. Its basic
purpose is
to facilitate the effective management of human resources by providing information acquire, develop, retain, utilize
and
evaluate human resources. The more specific objectives of human resources accounting are as follows:
(1) To provide cost-value data for managerial decisions regarding acquiring, developing, allocating and
maintaining human resources so as to attain cost effective organizational objectives.

(2) To provide information to monitor the effectiveness of human resources utilization.


(3) To provide information for determining the status of human asset whether it is conserved properly, it is
appreciating or depleting.
(4) To assist in the development of effective human resource management practices by classifying the financial
consequences of there practices.
APPROACHES OF VALUATION OF HUMAN ASSETS.
There are a number of methods suggested for the valuation of human assets. Many of these methods are based on
the
valuation of physical and financial assets while other take into account human consideration.
Historical Cost Approach :- Historical approach is based on actual cost incurred on human resources. Such a cost
may
be of two types;- acquisition cost and learning cost. Acquisition cost is the expense incurred on recruitment,
selection and placement while calculating the cost of recruitment and selection, entire cost is taken into
consideration
including those who are not selected.
Learning cost involves expenses incurred on training and development. This method is very simple in its application
but
it does not reflect the true value of human assets.
Replacement Cost Approach:- This approach takes in consideration notional cost that may be required to
acquire a new employee to replace the present one. In calculating this various types of expenses are taken into
account.
Replacement cost is generally much higher than historical cost. Replacement cost is much better indicator of
human
value though it may present certain operational problems.
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Standard Cost Approach:- For using standard cost employees of an organization are categorized into different
groups
based on their hierarchical positions. Then standard cost is fixed for each category employees and their value is
calculated. This method is simple but does not take into account differences in employees put in the same group.
PRESENT VALUE OF FUTURE EARNINGS
In this method the future earnings of various groups of employees are estimated up to the age of their retirement
and are
discounted at a pre determined rate to obtain the present value of such earnings as in the case of financial assets.
However this method does not give correct value of human assets as it does not measure their contributions to
achieving
organizational effectiveness.
EFFECTED REALISABLE VALUE
Methods disclosed above provide information for record purpose only but do not reflect true value of human assets.
But
this method is based on assumption that there is no direct relationship between cost incurred on an individual and
his
value to the organization at a particular point of time. An individual’s value to the organisation at a particular time
can
be defined as the present worth of the set of future services that is expected to provide during the period he
remains
in the organization.
EXAMPLE
HRA concept is relatively new and is applied invariably in different organizations. In Indian Air Force a good
number of civilians are employed at different positions starting from directors at Air Head quarters to helpers and
orderlies at base units. Various approaches are combined to determine the value of civilian human resources. Their
working hours on daily basis are recorded and their contribution, the achievement of goals is also determined.
There
data help in providing data to devise suitable promotion policy and congenial work environment and job
satisfaction of
people. The management attempts of all levels to develop suitable organizational climate and culture. HRA is not
only
helpful to management but also to the employees as it provides them with there value and in turn motivates them.
With
effective Human Resources Accounting of Civilian employees in the IAF, they have become the back bone of
organization and not less than the uniformed personals.

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