Types of Electronic HRM

Electronic Human Resource Management can be defined as planning, implementation and applications of information technology for both networking and supporting of HR activities. They access the operation typically through internet or other technology channels.

E-HRM are of 3 types

• Operational E-HRM

It is about administrative functions like payroll and employee personal data. All the employee data are stored in database and regularly updated. At the operational level, traditional HRM can be converted in to a new form called E-HRM

• Relational E-HRM

It is all about supporting business process it is done by mean of selection, training, recruitment, performance and management career development of the employees etc.. Instead of physical training online work shops are conducted. Performance indicators are used to understand the career development of the employees.

• Transformational E-HRM

It is about strategic HR exercises such as knowledge management, strategic reorientation. An organisation may decide to pursue E-HRM policies from any of these types to meet their HR goals. So in the case of HR departments, it is very important to keepadetailed information about Human Resources. All these are kept with the help of information technology.

More specifically, E–HRM is a system that allowsmanagement and employees access to human resource related information and services through an organization’s intranet or web portal.

Characteristics or Features of Personnel Management

The procurement, allocation, utilisation, conservation and development of Human Resource are inevitablr and continuous activities of modern industries. Due to the technological development, size of organisation is expanding. Vast changes are seen in group behaviour of personnel in an enterprise. PM is necessary in an organisation. It helps every employees to grow themself.

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The following are the characteristics of PPersonnel Management.

1• Part of General Management

It is an extension of general management function . Managerial functions include planning, organising, staffing, co-ordinating, decision making and controlling.staffing functions comes under the development of personnel management.

2• Concerned with people

It is a traditional function/ how to manage people in an organisation. It is concerned with hiring of employees. So they can contribute maximum to the organisation. It helps in maintaining a good employee employer relationship

3• Concerned with personnel policies

It is concerned with formulating of policies. it includes policies on recruitment selection,training and development performance.

4• Assistance to top Management

It assist the function of personnel managers. The function of personnel management department is pervasive in nature. It serves in production, marketing, finance etc. It act as an assistance to all other departments

5• Creation of cordial environment

It is the function of personnel management to create a cordial environment where employees can contribute their maximum to the organisation in achieving organisational goal. Continuously providing adequate facilities and by offering both monetary and non-monetary benefits.

6• Continuous function

Personnel management is Continuous in nature.It is also dynamic in nature. Functions like recruitment, training, selection, development, performance evaluation etc.. all these functions are on going process. Therefore PM require constant alerts and awareness in dealing with such transactions.

7• Ensures employee satisfaction

PM concerned with welfare and satisfaction of employees. A satisfied work force is an added advantage to any organisation. Therefore it is concerned with ensuring physical, individual, economical, social satisfaction of employees at all levels. Especially at top level.

RECOGNITION OF THE ELEMENTS OF FINANCIAL STATEMENTS

An Item which satisfies the definition of an element should be recognised only if
• it is probable that any future economic benefit associated with the item will flow to or from the entity; and
• the item has a cost or value that can be measured with reliability.

Recognition of Assets

An item will be recognized as an asset in the Balance sheet when it is probable that the future economic benefit will flow to the entity and the asset has a cost or value that can be measured
reliably.

Recognition of Liabilities

A liability is recognised in the balance sheet when it is probable that an outflow of resources embodying economic benefits will result from the settlement of a present obligation and the amount at which the settlement will take place can be measured reliably.

Recognition of Income

Income is recognised in the statement of profit and loss when an increase in future economic benefits related to an increase in an asset or a decrease of a liability has arisen that can be measured reliably.

Recognition of Expenses

Expenses are recognized in the statement of profit and loss when a decrease in future economic benefits related to a decrease in an asset or an increase of a liability has arisen that can be measured reliably.

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Objectives / Importance of Human Resource Management

The following are the major goals or importance of Human Resource Management or personnel Management

1• Attainment of organisational goal

HRM has an important role in achieving organisational goal. Organisational goals are achieved through efficient HR practices like recruitment, selection, placement, employee compensation etc.

2• Effective use of man power

HRM aims at effective use of Man power their skills ability and talents , primary objective of HRM is to find right people at right job so there is no wastage of inefficiency.

3• Attract and retain best talents

It is also an objective of an organisation to attract and retain the best talents. Employees may leave in an organisation if they are not satisfied with working environment, career development, opportunities and so on.. HRM can help organisation to identify and retain best talents through efficient HR policy.

4• Job satisfaction

HR departments aims at maintaining a satisfied work force. It promotes employee motivation, better job satisfaction, quality of working life through employee friendly HR policies. The organisation or HR department should frame friendly HR policies for employee motivation.

5• Motivation of employees

Employees are trained and motivated under HRM to produce best results out of them. Only commited employees can achieve the organisational objectives efficiently. Their efforts or commitments leads to the success of organisation .

6• Building employee loyalties

It is necessary to build up employee loyalty for better labour productivity and efficiency. Employee loyalty can build through fair remuneration policy, promotions and career development .

7• Promotion of team work

Employees can produce better results, when they work as a team spirit. It reduces employee grievances and conflicts.

8• Communication of HR policies

The HR policies are communicated through all employees of organisation thus the employees are aware of the policy of management such as recruitment,training, promotions, remuneration, placement, transfer,discipline etc. communication avoids confusion and disputes and promotes better employee relationships.

9• Ethical labour policy

HRM follows ethical labour policies in an organisation. It ensures better working conditions, provide health and safety measures, fare remuneration, collective decision making, employee participation.

10• Managing change

HRM brings changes in an organisation. Employees may resist changes but changes are necessary for an organisation. HR policies can better manage changes in an organisation by educating employees regarding changes

Evolution of the concept of HRM

Before emerging Human Resource Management as a modern concept for managing people in an organisation, it passed through different stages

1• Commodity Concept

Workers are considered as commodity or product. Least importance is given to the welfare of workers

2• Factor of Production Concept

Workers are considered as the factor of production. All the factors were given equal consideration. No special importance is given to Labour

3• Welfare Concept

Each and every management or organisation identify or realise their responsibilities to provide better working condition and amenities to the workers. Satisfaction is very important

4• Industrial Relation Concept

Each and every employee have their own personal motives and aspirations they want opportunities for career advancement and they should get recognition for their performance

5• Personnel Management Concept

It is considered as a systematic approach to managing people in an organisation,It is a major system which consists of several sub system like man power planning, recruitment, training, procurement, industrial relation , training and development of employees. All these come under the Concept of personnel management.

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Related party transaction as per AS 24

A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged.

Examples:

• purchases or sales of goods (finished or unfinished);
• purchases or sales of property and other assets;
• rendering or receiving of services;
• leases;
• transfers of research and development;
• transfers under licence agreements;
• transfers under finance arrangements (including loans and equity contributions in cash or in kind);
• provision of guarantees or collateral;
• commitments to do something if a particular event occurs or does not occur in the future, including executory contracts1 (recognised and unrecognised);
• settlement of liabilities on behalf of the entity or by the entity on behalf of that related party; and
• management contracts including for deputation of employees.

Who are not related parties as per AS 24

The Ind AS 24: related party disclosure standard clarifies that certain relationships are not related party relationships. These are as follows:

(a) Two entities are not related parties simply because they have a director or other member of key management personnel in common or because a member of key management personnel of one entity has significant influence

(b) Two venturers are not related parties simply because they share joint control over a joint venture.

(c) (i) providers of finance, (ii) trade unions, (iii) public utilities, and (iv) departments and agencies of a government that does not control, jointly control or significantly influence the reporting entity, are not related parties simply by virtue of their normal dealings with an entity (even though they may affect the freedom of action of an entity or participate in its decision- making process).

(d) a customer, supplier, franchisor, distributor or general agent with whom an entity transacts a significant volume of business, simply by virtue of the resulting economic dependence.

Elements of financial statements

Broadly, a statement of financial position or balance sheet comprises three elements viz. Asset, Liability and Equity and a statement of income comprises of two elements namely Income and Expenses.

ASSETS – “An asset is a resource controlled by the entity as a result of past events and from  which future economic benefits are expected to flow to the entity”

LIABILITY – A liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits

EQUITY- Equity is the residual interest in the assets of the entity after deducting all its liabilities.

INCOME – Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.

EXPENSES – Expenses are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants.

Qualitative aspects of financial statements

          Understandability: An essential quality of the information provided in financial statements is that it is readily understandable by users who are assumed to have a reasonable knowledge of basic operations of the business.

          Relevance: The information that is being reflected in the financial statements must be relevant to the decision- making needs of users.

          Reliability: . Information should be relevant and reliable as it is expected to have an error free and unbiased impact on the presentation of the financial statements.

             Materiality: Information is material if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements.

             Neutrality: The information contained in the financial statements should be free from any bias i.e. neutral and there should not be any kind of influence which makes the information undesirable or undisclosed.

             Prudence: Often certain estimates are being required to be made by the preparer of the financial statements which may or may not be 100% correct. However, one should use its prudence which is without any biasness and best possible action to reach to the conclusion in such cases.

             Completeness: The financial statements should be prepared to ensure that it covers all the transactions that has be done during the period and control must be establish to ensure its completeness of transactions without having any left out entries/ transactions which purposely/ by error are recorded in next period or not recorded at all.

Comparability: Users must be able to compare the financial statements of an entity through time in order to identify trends in its financial position and performance.