HUMAN RESOURCE ACCOUNTING AND ITS EFFECT ON ORGANIZATIONAL GROWTH

 

HUMAN RESOURCE ACCOUNTING AND ITS EFFECT ON ORGANIZATIONAL GROWTH

Human Resource Accounting plays a major part in the development and growth of any organization.  It primarily identifies the aspects of the progress in the company.  This department determines the direction of the organization whether to move backward or to move forward in any industry.  The development of human resource accounting originated from the growing needs of the importance of human assets in the management organization.  It functions as the department that monitors the people who are involved in the organizational resources.  In addition, it is doing the monitoring of  the development, progress in assets and revenues of the company.  Another function of human resource accounting is to be involved in the improvement of company’s concepts and models in determining the cost and value of the employees in the company. The third function of this department is doing research and trial in the application of all the dimensions in the organization.  Human resource accounting is accountable for the deep studies on how to contribute more marketing plans and strategies that would help in the advancement of the organization and the people. The fourth function of HR Accounting is to apply the concepts and experiments into actual implementation in the company.  And, the last function is to apply new and innovative ideas and concepts as well as human resource accounting technologies into different management problems and situations. 

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Furthermore, human resource accounting also does the cost accounting for many corporations, investors, factories, natural resources, human resources and equipment and supplies for the entire organization.  However, as the time passes by, the development of different industries and the steady growth of various financial institutions further alter the traditional function of the managerial accounting. Together with these changes, came out the development of the behavioral accounting that has a more significant role in the growth and progress in any industry.  This aspect goes hand in hand with the human resource accounting as they both deal with the behavior of the people in the organization as well as looking over the entire effectiveness of the accounting methods, techniques and system in the organizational growth. The concept of behavioral accounting has become one of those aspects that the human resource management has been given focus. 

According to the study,   the objective and goal of management accounting is to measure and reveal the data from the past, present and the perception of the organization’s socio-economic status.  In this way, the methods and the decision makings from all levels of socioeconomic actions will be improved, measured and monitored.  However, in some small entity businesses, management accounting is not really given that much significance unlike in the big companies.  Putting together the management accounting and human resource management is really a great help in any organization because it is greatly responsible in the understanding and analyzing the organization’s revenues, human resources, as well as it involves the most important asset of any organization and that is the people who joint together to work for the betterment of the business.  On the other hand, the tools management is being used by the accountants in a regular basis to be able to understand the modern trends and production growth effectively.  At the same time human resources also used people to help in managing sales performance and productivity as well as income generation of the company. 

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Though, many people are confused of the relationship of the human resource and the management accounting.  As a matte of fact, they work together; the management accountants are concerned with the sales performance of the sales people in the organization.  And, one of its objectives is to direct the possible sales opportunities of the sales people as well as to increase the earnings of the company.  Of course, if the company earns more, the sales people will naturally benefit from it through big income and commissions.  Evidently, the entire organization and the whole staff will significantly benefit from the increase of revenues of every business.  Normally, management accounting theories and applications has been predominantly established to direct the cost related issues in the organization such as unit cost, supply cost budget allocations for projects, and many other accounting duties that are very essential in the effective operation of any industry.  The utmost responsibility of the management accounting is to determine the product profitability.  Therefore, it is safe to say that without the human resource management any business will be crippled, they will not run as effective as it does when it has people around that would take charge the workload in a regular basis.

(http://www.articlesbase.com/human-resources-articles/challenges-faced-by-human-resource-managers-in-the-era-of-gloablization-995167.html)

References:

(http://maaw.info/ArticleSummaries/ArtSumFla)

(http://findarticles.com/p/articles/mi_qa3682/is_199401/ai_n8716049/)

(http://www.articlesbase.com/human-resources-articles/challenges-faced-by-human-resource-managers-in-the-era-of-gloablization-995167.html)

 

 

 

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