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HUMAN RESOURCE MANAGEMENT, OBJECTIVE AND SCOPEOF HRM

  Human resource management is concerned with the "people" dimension in the management. Human resource management means the management of people within an organization . Since,every organization is made up of people, acquiring their services, developing their skills, motivating them to higher level of performance and  ensuring that they continue to maintain their commitment to the organization are essential to achieve organizational objectives. Those organization that are able to acquire ,develop ,stimulate and keep outstanding workers will be both effective and efficient.  Those organizations that are ineffective or inefficient risk the hazards of stagnating or going out of business. Human resource does creates organization and makes them survive and prosper.  If human resources are neglected or mismanaged, the organization is unlikely to do well. "Human resource management is the field of management which has to do with planning organizing and controlling the func...
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WHAT IS ACCOUNTING

 ACCOUNTING 


Every  business man wants to know about their financial position at the end of year.  Suppose a businessman starts a business of production of woolen clothes. He invested 20 lakh rupees on that business . He take a loan of 5 lakh rupees from a bank . He purchased material for their business. Keep manager, worker for smooth running of their business. After manufacturing, do promotion of their product. 



All these thing are recorded in a book that is called accounting. By keeping a complete and systematic record of every business dealing,the business man can know how much is the amount of sales, how  much is the amount of purchase. What are his total expenses and what is the amount of profit earned or loss incurred during a year.

Properly maintained  accounts  gives the following  information quickly and businessman can take decisions on behalf of this. Properly maintained accounts gives the answer  of a number of questions, such as

What is the cost of production?

Is such cost reasonable or not ?

What should be the selling price based on the cost of production?

Thus business owners can take important decisions with the help of the information provided by accounting data.


DEFINITION OF ACCOUNTING 

" Accounting is the art of recording, classifying, and summarizing  in a significant manner and in terms of money and events,which are,in part atleast, of a financial character,and interpreting the results thereof. "

AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 


FUNCTIONS OF ACCOUNTING 

1. Identification of  Transactions 

Accounting deals with transactions which are of financial character. In other words ,the transaction which cannot measured and expressed in term of money cannot be recorded in accounting. 

2. Recording of transactions 

After identification of transaction, these are recorded in a book called  "journal". But in a big business where the number of transactions is quite large,the journal is subdivided into various subsidiaries books. Such as 

CASH BOOK

PURCHASE BOOK

SALES BOOK

PURCHASE RETURN BOOK etc.


3. Classification  of transactions 

After recording in journal,the transactions are classified in separate accounts. The book in which various accounts are opened is called "Ledger ". For example all transactions related to sales ,are recorded in sale accounts.

Transactions related to purchase, are recorded in purchase accounts.


4. Summarizing 

It is the art  of presenting the classified data in a manner which is understandable and useful to management and other users of such data. After balancing Ledger accounts ,prepare Trial balances  with the help of such balances.

After that final accounts are prepared which includes - 

Trading and Profit &Loss Accounts 

Balance Sheets 


5. Interpretation of  the results 


After preparing all these accounts, result are interpreted by all the parties who are interested in financial statements . For example creditors are interested in accounting information, because they supplies goods and services on credit. Before granting credit, creditors wants to be satisfied about the creditworthiness of business enterprise. Accounting information helps them in assessing the financial capabilities of the business enterprise. 



6. Communicating 


Many parties are interested in accounting information such as creditors, lenders, employees, government  researchers, public etc. They analyze financial information as per their individual requirements. 



Thank you 




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