Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Investment in human assets and the effect of the human behavior to the auditing process - Essay Example

Comments (0) Cite this document
On the balance sheet of a company in the assets section, we normally see representations of plants, machineries, and miscellaneous assets kept for running every day chores. We might come across Goodwill especially if the statements are consolidated. Creditors might specially want to focus on liquidity ratios of a company by analyzing their Receivables section and if the Inventory is drastically rising and whether there are being enough sales to reduce inventory levels…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.9% of users find it useful
Investment in human assets and the effect of the human behavior to the auditing process
Read TextPreview

Extract of sample "Investment in human assets and the effect of the human behavior to the auditing process"

Download file to see previous pages Human capital is the stock of skills and knowledge possessed by individuals that eventually helps to perform labor, generating economic value ("Human Capital," par.1). Labor not only refers to the physical work done in the production phase (which is replaceable), but also encompasses all work done by an employee in course of his job for the entity. Ultimately, it is the ingenuity and hard work of the people that profits the business. Rating people as real investment is a very viable argument since they are using their skills to work for prosperity of the entity. It makes sense to invest more in training and development of the human assets in an organization, to conduct workshops and to offer them motivational incentives as in the long run, the money spent on them is expected to give a return easily in access of the incurred expense.
However, putting a financial value to human assets is just not that easy. Financial managers can recognize handy investments; decisions to switch to new procedures, acquiring new equipment or strategic mergers can be evaluated using financial and non-financial models. Human resource investments, one of the most vital assets of a company are difficult to value though. This is because unlike machines and projects, one can't reliably predict the future events and behavior of a person and neither can it reliably calculate the benefit that a person could bring to the company. Moreover, it is also difficult to attribute an accurate proportion of revenue to a particular employee to measure how a company's investment on that employee is paying off. As a result, training and development allocations are often neglected in the budgeting process and are likely to be the first costs that are to be cut when faced with a budget crunch (Clarke, par.2).
Many officers and managers see costs incurred on humans in the form of payroll, added benefits, training and development simply as an unavoidable expense that must be controlled. This approach is contrary to the idea that people are the actual perpetrators of a company's growth and profitability. They miss the link between their employee's deeds and the customer's perception of the entity. Even while this happens, organizations have realized the need for employee training and the need for continuing professional development. Investing in people also has other factors, some of them which do not relate to budgeting. In the recent years, there have been many scandals of fraud and negligence from service providers, especially when you talk about Medical Care and the issue of compliance with laws and regulations. In these areas, it is absolutely necessary to make sure the employees understand their responsibilities and know to whom they, and the organization as a whole is accountable. This is more important for organizations involved in HealthCare to view their staff as investments because heavy expenditure must be incurred to make sure the staff is compliant with standards and hygiene and competency standards as their actions would directly affect people that place reliance on the organization. Investment in this regard could save organizations millions of ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Investment in human assets and the effect of the human behavior to the Essay”, n.d.)
Retrieved from
(Investment in Human Assets and the Effect of the Human Behavior to the Essay)
“Investment in Human Assets and the Effect of the Human Behavior to the Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Investment in human assets and the effect of the human behavior to the auditing process

The Evolution of Human Resource Management

The employee was sent to HR for a final briefing where he mentioned that he had been requesting a change in the shift for the last few weeks he has to attend to his ailing father. His superior continuously ignored the request. The employee was skill and aptitude tested and reassigned to a different project.
This is a small incident where an HR professional can play a vital role. An organization is also constantly looking for such solutions from its Human Resource Department. It is this expertise and skill, which a budding professional from any institute should be equipped.
Such valuable certification programs initiated by the Human Resource Department surely help build a successful organization. The Human resource depart...
6 Pages(1500 words)Term Paper

Problems of Human Activities

...Biology Order No. 245354 No. of pages: 6 Premium 6530 Rapid Decline in Population: The decline in population brings about a wide range ofproblems which causes great apprehension among the people of that country. One of the primary concerns is that there won’t be enough number of people in the workforce who will be able to support the elderly and aged people. Even though smaller populations are advantageous to the environment they should be maintained at such levels so that the fertility rate does not come down. . A declining population also causes problems in society as it is always accompanied by an ageing population. The effect of baby-busters is being felt by the Americans. They are an important consumer group but they are also...
7 Pages(1750 words)Term Paper

Future Digital Design Process

As we shape up the interface between the designer and the virtual environment we are naturally going to produce a greater and far better outcome.
It will enable the end-user to be more creative and experimental and explore possibilities that were previously tedious or impossible. The design possibilities of virtuality will enhance the outlook of environments.
Now we can also term it according to the duration it can last. For any new thing, the duration is 10-30 years. If it lasts for 10 it would be popular as a tool another 10 and it would very well be a theory and if it survives all 30 years it will soon be defined as a revolution.
It was the end of the 20th century and the beginning of the 21st century that saw th...
21 Pages(5250 words)Assignment

A Six Stage Model of the Innovation Process

This paper will focus on the relationship and impact and innovation will have on politics. The backbone of the paper will be the strong opinion of Professor Langdon Winner who teaches at the Department of Science and Technology Studies. He has said that “technical things have political qualities” and this paper will base its study on this. “Langdon Winner is a political theorist who focuses on social and political issues that surround modern technological change.” (Brief Biography). When undertaking a serious study of the topic, so many theories and assumptions also begin to emerge that are related to the topic. They include concepts like SCOT, Actor-Network Theory, determinism, closure, and other related f...
9 Pages(2250 words)Case Study

The Effect of Democracy on Chinese Development

Any country first needs to go through economic liberalization and political liberalization before finally settling into a stable democratic situation. Democracy should not at any one point be viewed as if it were socialism, but should be seen as a means of promoting economic development through accountability and protection of individual lawful rights and interests...accountability in the sense that the respective leaders are able to fight corruption, enhance social harmony, strengthen public trust and more importantly empower government institutions that are directly in touch with the people (Liu, 2008, p.1-2). Owing to the Chinese well informed and affluent society on top of having a very dynamic economy, the political change wh...
7 Pages(1750 words)Coursework

Marks and Spencer Organizational Development Process

Procurement of resources is made globally from over 2000 suppliers. More than 75000 employees are on the rolls of the company. In the retail clothing sector of the UK market, the company has a growing market share. Online business strategy is also adopted by them. (About us, 2009).

Through customer-focused production and marketing techniques, the company is aiming to attain a world-class position in the retail market field. Along with offering of highest quality products, customer servicing is also ensured by them for attaining loyal customer base. “Our brand values – quality, value, service, innovation and trust – are more important than ever. Our commitment to these values sets us apart from our comp...
7 Pages(1750 words)Case Study

Strategic Pay and Organizational Behavior

Both, Performance-related pay (PRP), as well as  Payment by Results (PBR), are based on the notion that if a worker can vary output by increasing his efforts, the hope of increased pay will lead him to perform his best. Both methods can be applied to an individual as well as a group level. Below is a critical comparison of the two:
Defined in simplest of terms, payment by results can be defined as the scheme of paying incentives in which, the bonus or the variable portion of the payment will be dependent on measurable values of outputs, within studied time limits.

Advantages: The primary advantage of this scheme is the inducement and motivation of workers for higher efficiency and great output. It is better th...
6 Pages(1500 words)Assignment

Project Planning Human Capital

Project planning involves a lot of factors and areas that we need to address for the effective management and handling of the project. The aim of this report is to provide a deep insight into some of the main areas that we need to address for the project of Adams's family farmhouse renovation. These issues are project team communication, project risk management, and deadline handling. Effective communication in a project provides a huge advantage regarding the better working and handling of the project. I have selected a very significant project regarding the preservation of the old and historical places. Here we require effective communication to provide better interaction among the designer, developers, and history preservation...
8 Pages(2000 words)Coursework

Effect of Corporations Moving Jobs Overseas on the Economy

The issue comes into focus, whenever there are political, economic debates or talks about H1B visa limits. The economic slowdown has further led to the intensification of these debates. But, despite apprehensions from different quarters, neither the companies nor the government has said a final word on the trend. Increasing levels of competition amongst the corporate houses have been one of the key highlights of the globalization era. Be it the retail sector, the banking, the automobile, the IT-enabled services, the white goods space, etc. the companies have always been on the lookout for reaching out to more number of customers while doing everything possible to please the existing lot. Leveraging the economies of scale has prove...
8 Pages(2000 words)Coursework

Universal Declaration of Human Rights

An assessment regarding the binding nature of the provisions of the UDHR was made in this work. The UDHR was instrumental in the development of international law, specifically the International Covenant on Civil and Political Rights (ICCPR) and the International Covenant on Economic, Social and Cultural Rights (ICESCR). Furthermore, the role of ICCPR and ICESCR, which derive from the UDHR were examined. This was done by referring to case law and the opinions of various authors. It also analyzed UN Charter provisions, such as the preamble, Article 1(3), 2, 13(1), 51, 55, 56, 62(2) and 68.3

This work arrived at conclusions, by establishing the binding nature of the UDHR on the member states. The UDHR was rendered binding...
8 Pages(2000 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Investment in human assets and the effect of the human behavior to the auditing process for FREE!

Contact Us