Human Resource Accounting

CHRP 21 Human Resource Accounting

Introduction

The course unit covers introduction to HR accounting; HR contribution to business; and developing results-based approach.

General Objective

To equip the learners with the requisite knowledge and skills that will enable them to measure HR contributions to the organization

Learning outcomes

1. Demonstrate ability to ascertain HR contribution to the organization
2. Apply and integrate performance measurement and control principles

Need Results Based Approach

• Importance trends related to HR contribution
• Importance of the trends, challenges, paradigm shifts
• Payoffs of measuring HR contribution

Measuring HR Contribution

• HR reputation
• HR accounting
• HR auditing
• HR cost monitoring
• Competitive bench marking
• HR effectiveness index
• HR management by objective
• HR profit centre

Developing Results Based Approach

• Purposes of measurement and evaluation
• HR evaluation myths
• Obstacles to measuring contribution
• Levels of evaluation
• Attitude of the HR team
• Sharing responsibility for HR measurement and evaluation
• Results based model for program implementation

Management Influence on HR Results

• Partnership relationship,
• Top management commitment
• Management support and reinforcement
• Management involvement
• Focusing on results with managers
• Improving relationships with managers
• Role responsibilities
• Risk and rewards

Method Used in Measuring HR Contribution

• Data collection techniques
  • Surveys
  • Tests
  • Interviews
  • Focus groups
  • Organizational observations

Evaluation Design and Implementation

• Evaluation design issues
• Common evaluation designs
• Participant feedback
• Feedback from others
• Participant follow-up
• Action planning
• Performance contracting

Measuring HR Contribution

• Measurement issues
• HR contribution model
• HR performance measures
• Organizational effectiveness measures
• Developing HR effectiveness index

Measuring Specific HR Functions

• Recruitment and selection
• HRD
• Compensation
• Fair employee labor relations
• Health and safety
• HRI Systems

Using Benchmarking to Measure HR Effectiveness

• Strategic evaluation tool
• Phases of the benchmarking process
• Participating in existing, benchmarking projects
• Marking the process

Analysis and Presentation of HR Metrics

• HR costs
• Analysis techniques
• Isolating effects of HR program
• Converting data to monetary units
• Additional methods for evaluating investments

Reporting HR Programs Results

• Process of communicating results
• Communicating with target audiences’
• Communicating with top management
• Developing evaluation report
• Management meetings