SOME HR TERMINOLOGIES!

Human Resource Accounting is the techniques of treating expenditure on the development of employees as capital investment. Accountants are frequently dismissive of this, arguing that it is impossible to put a monetary value on human assets that would be generally accepted.

Human Resource Development is the process of encouraging employees to acquire new skills and knowledge through various training programmes, courses and learning packages. For the organisation, the aim is to build competency amongst its employees, which will contribute to achieving the overall business objectives. For the individual, development provides opportunities that might be beneficial in four ways:

• It makes the employee more valuable to the organisation and thereby improves job security.

• It enhances career opportunities within the organisation.

• It increases an individual’s employability outside the organisation because of his or her broader skill/competency base.

• If it broadens the scope and responsibility of work, it can raise the intrinsic reward employees derive from their jobs. If Human resource development is to be successful, it requires commitment from senior management in terms of allocating enough resources.Critic argue that human resources development frequently requires a long-term focus, whereas many organisations have short term objectives and consequently, are reluctant to commit resources to human resources development initiatives.

Human Resource Sub-Processes is the term used to describe the process by which employees pass through the organisation. It encapsulates several processes: inflow (recruitment and selection), through flow (promotion and lateral career moves), and outflow (resignation, retirement, dismissal and redundancy). Monitoring human resources flow is vital to ensure accurate human resources planning since it allows date to be collected that can help to predict ant shortfall or oversupply of labour.

Human Resource planning sometimes called manpower planning; is the process of analysing an organisation’s needs for employees and evaluating how this can be met from the internal and external labour markets. It should be an ongoing process of monitoring that helps identify the needs to attracts, allocate, develop and retain human resources to meet the wider business objectives of the organisation. It encourages to planning ahead. Good quality human resource planning will involve analysing data on existing employees (demographics, competences, training etc) in order to assess the overall balance of existing resources and to predict possible future issues such ad skill shortages, promotion opportunities and retirement patterns.