There is much debate as to whether the human resources of an organization can be considered as an asset and treated accordingly in the accounting system. There are two schools of thought. One says that human resource is an asset and the other does not agree with this. Now let us see what is an asset? Asset is anything which is owned by the entity to derive service in future and should have legally enforceable claim. As such there is no guarantee of deriving benefits from the existing
Human resources in future and has no sales value like other assets. Therefore, legally, human resource is not an asset claims one school of thought. Besides, company law also does not consider it as an asset. But the other school is of the opinion that the "human
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Thus, investment refers to expenditure on new plant and machinery, capital equipment, physical construction of new buildings together with any change in the stock of goods produced. There are two basic determinants of investment.
(i) The expected rate of profit which the business hopes to realize from investment, and
(ii) The rate of interest.
The level of investment is guided by the level of expected profits. Firms will invest, only if it is profitable. Further an important cost associated with investment is the cost of borrowing capital, which is the rate of interest. Of these two, the expected rate of profit is more influential than the rate of interest.
Cost of Hunan Resources
As human resource is considered as an asset, any expenditure incurred in the acquisition and accumulation of human resource will be treated as an investment. Cost of human resources represents sacrifice that will have to be incurred today to acquire and develop people in future. The cost of human resource otherwise called Historical cost of human resources is the investment in
Human resources which has both Revenue (expense) and Capital (asset) components. This cost may be classified as
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It includes the expenses incurred on recruitment, selection; entire cost is taken into consideration including those who are not selected.
a) Recruitment cost: It is the cost incurred to identify sources of human resources both from within and outside the organization. For example, cost of recruiting materials, administrative expenses, advertising costs, agency fees, recruiter’s salary and travel and outstation costs.
b) Selection cost: It depends on several factors such as the type of personnel being recruited and the method of recruitment. The cost of selection depends on the position for which a person is being selected. The higher the position, the greater is the selection cost. It includes cost of application blanks, administrative cost of processing applications, conducting tests, interview, medical examination and the Salaries, materials and consulting fees of the selectors.
c) Placement cost: In deciding upon the placement, the individual's ability, attitude, interest, temperament and aspirations are taken into consideration with reference to the job requirements. The cost of placement can be collected for the purpose of human resource
These costs can be both personnel and non-personnel and both direct and
This is the measurement of the levels of investor confidence which influences the value of a firm in the
The company that I have chosen to asses is Loblaw Companies Ltd. I have assessed their financial statement as at June 20th, 2015 and June 14th, 2014, and decided to proceed for future investment in this company with my $10 000. The reasons that I have decided to invest in this company is because, first, they are closing down 52 retail locations that are unprofitable. This will allow them to be less in debts and repay their loans faster. Second, their revenue income has increased since the second quarter of 2014 by $228 million; from $10,307 to $10,535.
There was not enough information to calculate capital expenditures that associated with the implement of new
There are many types of investment such as bonds, stocks, investment funds, annuities etc. The sole aim of an investment is for your asset or financial input to grow into more therefore gaining you profit and the higher the risk the higher the reward generally is. Application to Movie In The Big Short Scoin Capital used growth investment strategies.
1.7.1 intellectual capital Since 1990, intellectual capital has been an interesting topic for researches and practitioners in European countries and Asia as well. Literature provides a number of definitions for intellectual capital; for example, IC is “a stock of focused, organized information that the organization can use for some productive purpose” (Edvinsson & Sullivan 1996, p. 357). Intellectual capital “focuses on organizing the knowledge resources in order to make knowledge manageable and is about actions and activities linked with knowledge, which are not easy to represent” (Mouritsen et al. 2001a: EmidiaVagnoni Chiara Oppi , 2015, p. 335).According
Once an applicant gained access to this organization they stay over there for a reasonable amount of time, saving companies loads of money that would have been spent on training new employees in the case that an old employee left the organization. Limitations Expensive The recruitment imposes extra cost to the company in the sense that it requires an extra cost for vacancy announcement, arrangement for employment office, etc. Loads of money is spent into hiring a new employee and training him upto a standard that is required for the organization.
IMPORTANCE OF EXTERNAL FACTORS AFFECTING BUSINESS Business of the organization is affected by many factors. There are some internal and external factors influencing the business. There are many internal and external factors affecting the business environment. Internal factors are related to the SWOT analysis whereas the PESTLE analysis is used to measure the external factors affecting the business. These factors includes • Political • Economical • Sociological • Technological • Legal • Environmental Political JLR has a choice to start a setup in the china; the political situation of china is quite stable, which is a good sign for a business.
The Economic factors are determinants of an economy’s performance that directly impacts a company. These factors include inflation rates, interest rates, exchange rates and economic growth. These affect how businesses operate and make decisions. The economic climate in the country is of major concern to every company as it has impacts on the business and consumer spending. For example, the exchange rates can affect the costs of the supply and price of imported goods and exporting goods in an economy.
Economic factor Economic factor examines the outside economic issues that can play a role in a company’s success. Economic factor has a significant influence on how company does business and how profitable they are. Items to consider include interest rate, exchange rate, economic growth, inflation, monetary policy, unemployment, income distribution, infrastructure costs and availability, consumer expenditure, foreign direct investment (Jeff, 2008). Economic factor impacts directly Starbucks performance through the income distribution in Vietnam market. The
THEORETICAL BACKGROUND OF THE STUDY: 3.1 RECRUITMENT & SELECTION Recruitment and selection is one of the most important management functions. The whole process represents a significant investment in both financial and other resources. Recruitment and selection are two of the most important functions of personnel management. Recruitment procedure selection and helps in selecting a right candidate.
Organisation also have to make a decision as to whether it is better to recruit internally or externally, and both come with advantages and disadvantages. There are also legal consideration to take into account when associated with recruitment and selection process which is imperative that an organisation sticks to (Aylott, 2014) Recruitment and selection bests practices The first few steps in recruitment should be fairly straightforward. It is important for the organisations HR department to know how many position within the company are free, and what necessary skills and abilities are needed
Human Resource is what keeps the company running and could be looked at as the backbone, due to the nature of hiring and supplying employees with skills necessary to run the company. This is to include any policies, regulations, and plans that have been constructed as well.
The research noted that recruitment procedures that provide a large pool of qualified applicants, paired with a
Human resource is a broader concept when compared to the human capital which has a narrow view. John R. Commons coined the term ‘human resource’ in his book “The Distribution of Wealth but did not further build upon it” during 1893. The term was extensively used during early 90s as the workers were seen as a kind of asset or capital. From the perspective of an organization, workers or the employees are seen as the capital to the company, and their values can be enhanced through further learning and development and is termed as human resource development. Human resources play an important role in the development and success of any organization.