copy of audit of personnel budgeting

7/29/2019 Copy of Audit of Personnel Budgeting

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Audit of Personnel Budgeting

Presented By,

Anubha Singla


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Overview

About the Company

Findings

Recommendations HRD Score Card

Questionnaire


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About S.I .M .S.

S.I.M.S. was found on sept 2004.

It is affiliated to Mumbai University.

It is in affiliation with NCRD. Its goal is to impart excellence in

education.


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Personnel Budgeting

Human resource budgeting as an approach was originallydefined as the process of identifying, measuring and

communicating information about human resources inorder to facilitate effective management within an

organisation. It is an extension of the accounting principles

of matching costs and revenues and of organising data tocommunicate relevant information in financial terms.

Our main asset is ourpeople!

. While most organizations can readily give detailed

information about their tangible assets like plant and

machinery, land and buildings, transport and office

equipment, there is no formal record of investment in

employees.


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INTROD.

Human Resource Accounting (HRA) is basically an

information system that tells management what changes

are occurring over time to the human resources of the

business. HRA also involves accounting for investment in

people and their replacement costs, and also the economic

value of people in an organisation.

save a lot of trouble in the future.

BHEL, Infosys and Reliance

Once organisations realise the actual benefit and take it asa growth process, it will only help them in increasing their

shareholders value. When a company is able to assess an

individuals worth, it helps in increasing its own worth,


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Importance of personel budgeting

helps in examining expenditure on personnel,

re-appraisal of expenditure on services and

training.

a key factor in case of mergers and takeoverdecisions, where the human asset value becomes

a relevant factor.

creating, is goodwill for a company. The

company can project itself in having


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Deterrents of personnel budgeting

Companies lack systems to measure performance despite the

fact that measurement is absolutely essential.

Theprimary reason is a lack of understandingmore than a lackof desire/will.

the need for extensive research that it entails. Many

companies do not want to go into the intricacies of

finding the value of their human resources.

dynamism of this industry


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Accounting for Employees

The employer (the master) in offering the job contract accountsfor:

facilities; tools, fixtures and fittings and accessories atwork essential for the welfare of employees. These form

overheads. necessary for specific training.

pensions and contributions to social security payments

costs of the infrastructure for initiating and maintainingcontracts of employment and co-coordinating the employerspolicies and practices in respect of delivering its obligations to

those that it employs. costs of severance (retirement, redundancy and dismissal)


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Methodology

Questionnaire

Interview with Mr.Sheersagar
http://localhost/var/www/apps/conversion/tmp/scratch_2/Industrial_Relations_Audit_Q.dochttp://localhost/var/www/apps/conversion/tmp/scratch_2/Industrial_Relations_Audit_Q.doc


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Findings

Proper strategy planning is not there,no short term & longterm plans

.Institute undergoing losses.

Manpower planning & budgeting done according toAICTE,M.U.,Mahrashtra govt.s set norms.

No special H.R. Mechanisms or systems.

Promotion, appreciation are the only motivating factors.

Salary & the expected performance are the main deciding factors while budgeting.


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Recommendations

Proper planning should be there.

Emphasis should be there on H.R. activities.

Separate H.R.dept. should be set up.

Faculty be encouraged more by introducing some

incentive schemes etc.


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Score card

Name ofOrganization

S.I.M.S.

Planning C 45%

Motivation B 60%

HRD Climate U

Business linkage

grade

U

Total grade CBUU


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THANKYOU


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Performance

Ratios/Indicators for HRM FTEs - Full time equivalent staff (formulae may

aggregate PT, short-term and long-term contract staff).

Headcount (H) e.g. total FTEs at month end

Revenues (R) - total operating income (total sales)

Expenses (E) - operating expenditure excl. tax,interest and extraordinary items

Profit - R less E (far too simple, what is the trueprofit? Who decides what the profit is?)

Cash-like rewards (C) - emoluments: salaries, wages,overtime, bonuses, commissions including NIcontributions.

Benefits (B) - other rewards which may or may not betaxed as "benefit in kind" - cars, pensions, company

loans etc


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copy of audit of personnel budgeting

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