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1.       Labour and HR

Human Resources are one of the key and Priority Component of organization, All the resources that contribute towards the growth of organization can be optimized only if the people who use these resources make their decisions based on

1.       Does HR Department Employs Learning Curve Methodology for Performance Evaluation of Each person in Organization?

2.       Does HR Department have Clear Hiring Process for Each Position in Organization

3.       Does HR have Job Description for Each Post in Company

4.       Does HR have Load Calculation Done for Each Personnel

5.       Dose HR have Made Man Power Planning done for each Job and Overall Function

6.       Does HR have calculated Manpower Cost and Benefit Analysis of each Person based on overall profitability of company

7.       Does HR have calculated Cost to Company to each employee and its Productivity

8.       Does Skill Set Gap is Identified and Training Provision is made for same?

9.       Does HR Have incorporated Cultural Development Plan for Maintaining appropriate work culture?

10.   Does Formal Appraisal Program is done periodically and Employees are informed for improvement areas?

11.   Does HR provide Employment Records and Updating facility to all employees

12.   Does HR make efforts to match Inflation Cost Matching with Employee Cost and informs management its potential effects to BOD to revise Profitability Planning Targets

13.   Does HR help BOD to device Labour Relation Development?

14.   Are Statutory Contribution Plans like PPF are availed to Employees?

15.   Does Company have Post Retirement Benefit Plan defined for all employees?

16.   Does Accounts have made provisions and Investments to create reserves for Gratuity and Annuity payments regularly?

17.   Does Employee Benefits are linked with performance measurement and Organizational Development?

18.   Does Medical Facility is Provided to all Employees?

19.   What are the employee welfare Efforts are taken by Company?

20.   Are Key employees are offered ESOPs and Any other Non-Tangible Benefits?

21.   Does COMPANY HAS CO-ORDIAL AND COHESIVE RELATIONSHIP with Management?

22.   Does Management invokes state of confidence, self-initiative and value development in Employees.

The role of Cost Accountant in same is to prepare a seamless Business Process that allows Functional Head and BOD to ensure all aspects of this Function are dealt with Global Best Practices, Often SME Complain we do not earn enough return to cope up with Global Standards, But I would like to bring attention to fact Discussed in  Branding, Branding does not require a huge expenses on Non-Core Activities to attain visibility but to understand needs of company and developing structure around same within constraints of company at same time invest more and more in people to attain that position as most satisfying employer which does not get counted in money or benefits. But also provisions are to be made that other life goals of individuals are rightly achieved step by step. And simple solution to that is making Employees as Partners in Business Process and Variation of pay based on Aggregate Productivity.

ABC³M also stresses on

·         On-Job Development of People

·         Incremental pay based on Value Creation by incremental responsibility sharing

·         More importantly balancing work load leading to Higher Attrition Ratio and

·         Flourishing work environment

And role of Cost Accountant is to Providing Cost Matrix to all Functional Heads based on Prospective needs mapping and allocation of Costs across all functions for same.

Often HR Heads tend to ignore fact that apart from Employee Dispute Resolution there main job is to keep track of Movement of People and Managing their personal preference in line with need of organization. SME who have been in business for very little time often face dilemma on this front there first challenge is to attract talent and then train them into workforce and after that retaining them to recover cost born on them and more importantly not increasing risk of attrition and poaching of talent by competitors.

The Legal system often does not offers any help in this regard and in general mind set of SME Owners is not perfect while dealing with employees as dialogue is not developed in order to maintain discipline and that leads to unorderly behaviour and socio economic anxieties linked with groupism and escapism and lack of self-initiative.

ABC³M requires HR Head to make initiatives in this manner by step by step approach, as often initial enthusiasm is lost over over-expectations of people and work load concentration. Often Function Heads are not able to cope up with balancing self-interests and affiliation to particular person or group. This Can be addressed by Aggregate Productivity linked Incentive Plan and Though Leadership Initiatives by BOD and Support from Executives to individual to create scope for development and replacement of process hindering personnel and initiating quality recruitment process by Personality Traits Identification, Skill Mapping and Planned Growth Matrix with Responsibility and Efficiency Development Program.

ABC³M also requires Accountants to become uniform collaborators in this process by helping Functional Heads in Mapping Business Process for needs and Allowability of lenient Appraisal for work load management allowing MIS to reflect actual productivity of each individual and provide Aggregate Capacity Utilization Plan to establish maximum use of each Persons abilities within bounds of there personal capacity and preferences. This Subject can not be covered in just write up because of its nature itself it not only involves cost constraints but a competition between uneven competitors for Talented Individuals and thus making this ground for larger considerations that a explanation and request BOD to employ experts in field rather than depending upon just Costing People.