1. Case study on human resources
accounting and human resources audit
BY
MANISHA VAGHELA
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2.  Accounting is commonly known as language of business.
 The concept of HRA was not new in India. HRA was
pioneered by public sector companies like Bharat Heavy
Electronics Ltd. (BHEL) and Steel Authority of India Ltd.
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3. “ Human Resource Accounting (HRA) means to measure
the cost and value of the people (i.e. of employees
and managers) in the organization. It measures the
cost incurred to recruit, hire, train and develop
employees and managers.” vaghela_manisha13@yahoo.
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4.  HR audit is very useful to achieve the organizational
goals and also is a vital tool which helps to assess the
effectiveness of HR functions of an organization.
 Human Resource Audit is an addition to the various tools
and concepts used for effective management of human
resources. It has a vital role to perform – particularly in the
service industry where the human resources are a part and
parcel of the product or service that is being consumed.
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5. “The Human resource audit is a systematic survey of all the
activities of a personnel programme and the manner in
which this activities are undertaken.”
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6. Case study of HR Audit on family run
business
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7. Background
 A family run business successful in its field for many years
had always relied on good will from its staff. There are
many employees working in their family business. They are
manufacturing food products.
Challenges
1. As they employed more people the usual problems arose.
What could they do about poor timekeepers?
2. what should they be paying when people are off ill?
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8. Solution:
 They contacted Vital HR to carry out an HR Audit to identify
how they could improve their employment documents and
how to define working rules.
1) To solve the problem of poor time keepers HR
department announce that the employees who are not
coming in a time , company will charge penalty on them.
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9. 2) After analysis of HR audit the result is declared that all
employees became aware of what was expected of
them, everyone was treated consistently with regard
to eligibility for holidays, sick pay etc . If employees
are remain irregular beyond the certain policy of
company then their salary will be cut off per day.
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10. case study on hr audit of bank’s
employees
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11. Background of Bank
The Grahmin vikas bank in Baroda,
there are many employees working in that bank. This
bank follows many rules and regulations like providing
training to employee, weekly performance appraisal of
employee, give orientation training to them etc.
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12. Challenge
Because of change in technology
there are many difficulty arise about
1. How to understand bank’s transaction by new
computer technology?
2. How to work with computers and how to operate
computer?
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13. Solution
1. Company will provide job to that people who can work
on computer easily and basic knowledge of computer.
2. With the help of HR audit bank sector decide to give
training to all the employees. Company will give
orientation training, basic knowledge of computer like
MS-office, Tally software, data entry system and any
other software relating to banking transaction.
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14. Case study of B.M.S. department in S.N.D.T
college on HR accounting
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15. Background
Smt.N.C.Gandhi and B.V.Gandhi mahila
Arts and Commerce college. This college situated in
Bhavnagar which is affiliated to S.N.D.T.bombay university.
There are many departments in this college and one of that
is B.M.S. department. There are approximately 100
students in this department. Mrs. Shilpa Bhatt is the head
of the department and Mr. Milan Umaraliya is coordinator
in this department.
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16. Challenge
During the December month in B.M.S.
department the head of department Mrs.Shilpa Bhatt
held industrial visit for all students in pipavav shipyard.
At that time she gave responsibility to collect fees to
one of the girl of S.Y B.M.S. Due to some carelessness of
that girl , she was not maintaining proper records of
fees.
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17. Solution
After summarized this case Mrs. Shilpa
Bhatt give advice to keep proper record of fees and also
suggest to take signature of all students and also record
date and time at the time of receiving fees. From that
time she also started to maintain records in her personal
computer or file.
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18. Case study on human resources audit
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19. Background
Sushan private limited was established by
Sushan group in 1992. it is producing mainly healthcare
products and earning very good profit every year. It has five
departments of production, finance, marketing, personnel
and stores. These departments are working in good co-
ordination. Total manpower of SPPL is nearly 800
employees working at different levels. Industrial relations
in this company were very good during last eight years.
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20. Challenges :
In 2001, one executive (Personnel and
Administration) resigned from his job from personnel
department. He was responsible for salary administration
and employees attendance. For one year management did
not fill up the vacancy and the functions of the vacant job
were looked after by welfare officer who was overloaded
with the work and was not in a position to give proper
attention to this job of salary administration and employee
attendance. vaghela_manisha13@yahoo.
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21. Due to this, the employees could not be paid salary
in time and sometimes wrong payments were also
made.
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22. Solution
Company decide to make HR audit
and then making some process HR department
declare that company will hire a new officer for
personnel department . By employing the new officer
company will give satisfaction to employee subject to
providing them salary.
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23. Case study on Improper record kepping
of human resource accounting
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24. Challenge
Company faces problem of improper
record keeping. One technician in production department
Mr. Satish who was regular in attending his duty was paid
his salary for 10 days less in December 2001, where as
another technician in the same department, Mr. Rajesh
who used to be absent almost 15 days in a month was paid
every month full salary. Mr. Sathish reported regarding
salary deduction to his production manager and in turn
production manager enquired from welfare officer. vaghela_manisha13@yahoo.
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25.  It was reported by welfare officer that Mr. Satish was
absent for 10 days in the month and Mr. Rajesh attended
on all days of month. But as per departmental attendance
record Mr. Satish attended duty on all days of the month
and Mr. Rajesh was absent for 15 days. These two things
were entirely different and this attracted the attention of
top management.
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26. An inquiry was conducted and it was disclosed by Mr.
Rajesh that employees used to sign the muster next day,
because the register was not checked regularly.
General manager of the plant discussed the issue with
managing director to deal with the situation.
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27. Solution
After evaluation of problem HR department
decide to purchase new attendance machine by which
company can solve the problem of not to keep daily
attendance book. With the help of this machine
,company can also avoid mistakes of wrong posting of
attendance in register.
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28. Question
1. What is Human resource audit?
2. What is Human resource accounting?
3. Why company has to do HR audit and HR accounting?
4. Who solve the problem of HR audit and HR accounting?
5. if you are manager in HR department ,How can you solve
the problems relating to HR audit and HR accounting?
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