HRP, Recruitment and Selection (MBH6011)
Submitted By : Khyati
Submitted To : Ms. Ratnamanjary Das
1. Success of any organisation depends upon its quality of human resource. It is accentuated
that; human element is the most important input in any organisation, but Indian companies
focus on ‘Return on Investment’ (ROI), with very few concrete steps being taken to track
‘Return on Knowledge’. The investments directed to raise knowledge; skills and aptitudes of
the work force of the organization are the investments in human resource
Analyze the Human Resource Accounting of any one of the following organisations throwing
a) Method of human resource valuation implemented
b) Value added by the employees
c) Effect of Human Resource accounting on revenue generation
Human Resource Accounting
• Human Resource Accounting is
the process of assigning,
budgeting, and reporting the
cost of human resources
incurred in an organization,
including wages and salaries and
• Human Resource Accounting is
the activity of knowing the cost
invested for employees towards
their recruitment, training them,
payment of salaries & other
benefits paid and in return
knowing their contribution to
organisation towards it's
Infosys Limited is an Indian
technology company that
provides business consulting,
information technology and
outsourcing services. The
company was founded in
Pune and is headquartered in
a) Method of human resource valuation
The data is collected from annual reports, additional reports, website of Infosys Ltd. for the
year 2000 to2019. The human resource value analysis is divided into two parts as from 1995
to 2011 the company adopted Lev and Schwartz Model. In 2011-12 company developed new
model to calculate human resource value in partnership with GIST Advisory, the model was
called Infosys GIST-HCX Model.
I. Human Resource Valuation of Infosys Ltd. from 2000 to 2011 (Rs. In Crores):
Infosys have used the Lev & Schwartz model (the present value of future earnings of
by Baruch Lev and Aba Schwartz to compute the value of human resources. The future
earnings of employees
are discounted at cost of capital /inflation rate/bank rate.
II. Human Resource Valuation of Infosys Ltd. from 2012 to 2019 (Rs. In Crores)
In 2011-12 Infosys Ltd. developed new model named as Infosys GIST-HCX Model. This
model is based on present value calculation of the increase in future earnings of
employees during their employment at Infosys Ltd.
• The correlation coefficient of “0.974” signifies that there is a higher correlation
between“human resource value” and the “value added” by the employees of
• It can be concluded that the total value added component of the company
depends a lotupon the human resource value of the technically skilled staff of
the Infosys. So Infosysmust remain focused upon maintaining, developing,
retaining and increasing their valueof technically skilled software professional.
c) Effect of Human Resource accounting on
• It depicts that the value of HR, revenue and
Value added are increasing over the years and
that it is the increase in Human resource value
which is making the revenue and the value
added component to grow.
• Analysis and DiscussionThe data was collected
using the information available on the annual
report of Infosys.To identify is there any
correlation between the Human Resource
Value of the Infosysand Revenue by taking a
significance level of 1% and using two tailed
Z-test. It wasobserved that Correlation can be
applied to estimate the degree of closeness
between thetwo variables i.e. Human Resource
Value of Infosys & Revenue
• The correlation coefficient of “0.975”
clearly shows that there is a very high
correlationbetween the “Human Resource
Value of the Infosys” and “Revenue” in the
• This signifies that Human Resource Value
has a bearing on the revenue and hence
the growthof the company depends on its
presence and value of Human resource
working in theorganization. It necessarily
means that if more is the value of human
resource, greater will be the revenue of
the company.It was also observed that by
taking a significance level of 10%, and
using two-tailed Z-test .
2. BPO is a very common concept in India where one company
outsources its business processes to another company which
helps it operate the business successfully. To operate better,
one business outsources its business to another company.
Employees work in shifts to match diverse timelines and
1. What are the HR Policies applicable at BPO and how are they
different from other companies?
2. How are these HR policies implemented?
3. Job Satisfaction among BPO employees.
4. Attrition Rate and factors causing it.
Business process outsourcing (BPO) is a
business practice in which an
organization contracts with an external
service provider to perform an essential
business function or task.
Many organizations consider processes
that are performed the same or similarly
from company to company, such as
payroll and accounting, good candidates
1. What are the HR policies applicable at BPO ?
• Leave Policy: 10 holidays (incl of statutory & festival)For confirmed
employees 21 leaves in a year to be taken on pro rata basis (@ 1.75 leaves
per month, so at the end of 2 months you can take 3 leaves)
• Attendance Policy: Late comings are major issues in certain cases. There
are some specific checks & balances in place Employees may be late by
maximum 15 minutes in case an employee arrives late once or twice in a
month without prior notice to the team leader or team manager, a verbal
warning is to be given.If ever an employee is late a third time in a month,
a half day leave is to be deducted. If the employee is still on probation, a
half day salary will be deducted.For every consecutive day of lateness in
the same month, a half day salary is to be deducted.
• Appraisal: Employees should have joined the org by Sept 30th to be eligible
for appraisal the following March. agents are rated on the basis of their
annual scorecard figs. HR has to ensure the data is normalized (that it fits
into a bell curve). The % of increment an agent gets is dependent on the
profitability of the process he is in. It is not uniform across processes.
• Training Policy: Training dept is separate from the HR dept. Hr personnel are
not involved in delivering the training, but act as facilitators.There are
different types of training: Induction/ softskill/ product / selling skills /
buddy up /mock calls. After the training there are tests to check the training
effectiveness. If the agent fails then he/she has to undergo the refresher
training If still there is no improvement then appropriate action is taken.
2. How are these HR policies implemented?
• The five steps needed to develop and
implement a new employer policy are
outlined below :-
• Step 1: Identify the Need for a Policy.
• Step 2: Determine Policy Content.
• Step 3: Obtain Stakeholder Support.
• Step 4: Communicate with Employees.
• Step 5: Update and Revise the Policy.
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