HUMAN RESOURCE ACCOUNTING : HRM 622

1. XYZ Company Ltd is a private sector firm which has experienced a lot of changes in the
last 5 years. The company has not been performing well in the market and the Board
members have decided to change some of its top leaders. The Managing director and the
HR manager have been requested to exit the organization and two new other senior
managers hired from a rival company. The new MD who has been hired has promised to
bring transformational changes to the organization starting with the HR department. He
believed working very closely with the new HR manager would positively impact on the
transformation.. To turn around the company, the HR Director has also come up with some
innovative ideas on how to address employee’s needs in order to improve the performance
of the organization. His starting point is to carry out a human resource audit, a move that
has been well accepted by the other senior leadership team.

Required:
a) Analyze five benefits of carrying out HR Audit in XYZ Company. (10 marks)
b) Justify the need for carrying human resource accounting at XYZ Company.(10 marks)
c) Discuss four metrics that the new managing director can use to evaluate the
effectiveness of the HR department. (8 Marks)

2 a) Discuss four types of costs likely to be incurred by an organization. (8 Marks)

b) Company X has requested you to prepare a report on HR Accounting. Highlight five

areas of HR accounting that you will include in your report. (10 Marks)

3 a) You have been invited to make a presentation to a board meeting at ABC Company on
ways in which ABC Sacco can make use HR Audit to evaluate its human resource
department. Explain five HR Audit approaches that your will include in your presentation.
(10 Marks)
b) HR Compliance cannot be underestimated. Discuss four indicators that can be used to
reflect HR Compliance. (8 Marks)

4 a) Examine the challenges that might be encountered while implementing HR accounting

in an organization. (8 Marks)
b) Organizations are increasingly utilizing performance contracting in managing human
resource. Discuss five benefits that may accrue to an organization that uses performance
contracting. (10 marks)

5 a) Discuss five trends in the HR management space pushing for implementation of HR

accounting (10 Marks)
b) ABZ Company Ltd plans to adopt the Cost Based Approach as one of the methods for
evaluating its human asset. Discuss four methods they can make use of in this
approach. (8 Marks)
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6 a) You have been hired as a HR Manager in a manufacturing firm. Discuss five ways in
which you can improve the employees’ quality of life in the organization. (10 Marks)

b) Discuss four different methods that can be used for measuring HR internal efficiencies.
(8 Marks)

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