UGC NET/JRF EXAM, JULY-2022 Labour and Social Welfare

A balanced scorecard is a performance metric used to identify, improve, and control a business's various functions and resulting outcomes. The concept of BSCs was first introduced in 1992 by David Norton and Robert Kaplan, who took previous metric performance measures and adapted them to include non-financial information.

BSCs wer originally developed for-profit companies but were later adapted for use by non-profits and government agencies. The balanced scorecard involves measuring four main aspects of a business: Learning and growth, business processes, customers, and finance.

BSCs allow companies to pool information in a single report, to provide information into service and quality in addition to financial performance, and to help improve efficiencies.

Mentoring is the Employee training system under which a senior or more experienced person (the mentor) is assigned to act as an advisor, counselor, or guide to a junior or trainee. The mentor is responsible for providing support to, and feedback on, the person in his or her charge. Mentoring is the process of sharing your knowledge and experience with an employee.

Mentoring can be informal or formal:

Informal mentoring takes place spontaneously between senior and more junior employees.

Formal mentoring occurs through a program with an established structure.

not: 

Management typically involves at least some employee mentoring. In acting as a mentor for an employee who reports to you, think of yourself as an advocate for that employee-not for any particular behaviour, but for the person-for their personal growth and career. Discipline can then become a matter of helping an employee out of a difficult situation.

In formal mentoring programs, the mentor is typically not the employee's manager, nor even in the employee's chain of command.

There is one more aspect of mentoring, i.e., Reverse Mentoring. Reverse mentoring is when a more junior employee mentors someone more senior than them.

The idea is that the junior employee can share their expertise (commonly, technology and digital media topics) with the senior colleague, who may be less familiar with these areas. Hence, statement (C) and (D) are incorrect.

The Quality Circle refers to the group of individuals who meet on a regular basis to discuss the work-related problems. Generally, the quality circles are small group gatherings, led by the supervisor or the manager who presents the solutions to the management. Quality Circles can be formed within Formal organisation, Self-empowered group, and Informal organisation.

The purpose behind the formation of a quality circle is to motivate employees to share the problems affecting their work area and help in improving the performance of the organization as a whole. Generally, the quality circles focus on issues such as occupational health and safety, improvement in the working environment and manufacturing processes, etc.

Methods / Models of Human Resource Accounting: There are different methods that contribute the human resource accounting system. These methods can be classified into the following categories:

(A) Monetary Models: The models which incorporate the monetary aspects are called monetary models.

1. Cost Based Models:

There are many cost-based models which are given here under.

(i) Replacement Cost: This is a measure of cost to replace a firm's existing human resources. Human resources are to be valued on the assumption that a new similar organisation has to be created from scratch and the cost to the firm is calculated if the existing resources were required to be replaced with other persons of equivalent talents and experience.

(ii) Historical Cost Approach: It is on the basis of actual cost incurred on human resources. Such a cost may be of two types, Acquisition Cost and Learning Cost.

(iii) Current Purchasing Power Method: The capitalised historical cost of investment in human resources is converted into current purchasing power of money with the help of price index numbers if the index double then the value of Human Resource also doubles. The converted value becomes the value of human resources for amortisation in rest of the years.

(iv) Opportunity Cost Method: This method of measuring the value of human resources is based on the economist's concept of opportunity cost. The opportunity cost of an employee in one department is calculated on the basis of offer made by another department for the employees working in this department in the same organisation.

(v) Standard Cost Method: Standard cost of recruitment, placing, training and developing per grade of employee are calculated and made up to date every year. The standard cost so arrived at for all human resources are treated as the value of human resources for accounting purpose.

2. Value Based Models:

The various value-based models are described as follows:

(i) Robbinsons Human Asset Multiplier Method: It advocates the use of a multiplier, which when applied to the earnings of individual provide a current valuation last reported corpany earning into market capitalisation. After deducting the amount of net assets from the capitalised value the balance is assumed to represent the value of human resources.

(ii) Jaggi and Lau's Human Valuation Method: The problem of predicting the expected tenure or promotion changes of individual employees was the catalyst for Bikki Jaggi and Hon Shiang Lau in suggesting the valuation of human resources on the group basis. By group they meant homogeneous group of employees who may not necessarily be working in the same department. It became easier to ascertain the percentage of people in a particular group likely either to leave the firm during each of the forthcoming periods or be promoted to higher levels.

(iii) Lev and Schwariz Present Value of Future Earnings Model: The model divides the whole labour force into certain homogeneous group. such as unskilled, semi-skilled, skilled etc. The total present value of different group represents the capitalized future earnings of the firm as a whole.

(iv) Hermansons Unpurchased Goodwill Method: The unpurchased Goodwill method that a business will earn a normal rate of return on resources. If a business show returns i.e., different from the normal rate it may fairly presumed that some resources must be exist that have not been taken into account in preparing the balance sheet. These unrecorded resources are assumed to represent human assets.

(v) Morse's Net Benefit Method: Morse has developed this method. He states that the value of human resources is equal to the present value of gross value of services to be rendered in future by human being both in an individual capacity as well as collective capacity minus the present value of future payment both direct and indirect to human beings.

(vi) Friedman and Lev's Human Resource Valuation Model: The human resource value as per this model is the difference between actual wages paid and the average market wages assumed that may be taken to reflect organisation personal policies because otherwise it will be reasonably expected that their employees would move from the employment to another to eliminate the difference.

(vii) Daves Modified Present Value Model: This model reflects the effect of live factors which often affect the contribution of employees to the organisation and thereby the calculated value of human resources.

(viii) Ogan's Certainty Equivalent Net Benefits Method: As per this model the value of human resource is equal to the present worth of certainty equivalent net benefit of all employees. The net benefit means the difference between expected benefit and total costs.

(ix) Chakraborty's Human Resource Valuation Model: The model advocates the valuation of human resources on aggregate basis instead of individual.

(x) Flamholtz Model (Reward Valuation Method): According to this model the ultimate measure of an individual's value to an organisation is his expected realizable value.

(xi) Economic Valuation Method: Under this method future earning that can be generated by the employees in his service is calculated. This cost is subtracted from the present cost incurred on them on various functions such as recruitment etc. The reason obtained by performing this calculation is the economic cost of the employees.