Quality of Work Life HR Accounting HRIS

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Quality of Work LifeHR Accounting HRIS
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Quality of Work Life

• Quality of Work Life (QWL)
• was first introduced in 1972 during an
  international labour relations conference (Hian
  and Einstein, 1990).
• QWL is defined as the favourable conditions and
  environments of a workplace that support and
  promote employee satisfaction by providing them
  with rewards, job security, and growth
  opportunities (Udai Pareek and T. Venkateshwara
  Rao).

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Quality of Work Life

• Important work on QWL has been done by Dr. D.R.
  Saklani in the Indian context.
• In his study he surveyed 192 managers and 102 non
  managers in both private and public sector
  industries and
• Identified 13 QWL components on the basis of
  employees perception about the significance of
  each component.

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Components of QWL
QWL COMPONENTS RANK ORDER
Opportunity for continued growth 1 Most Important
Opportunity to use and develop human capacity 2 Most Important
Adequate and fair compensation 3 Most Important
Reward and penalty system 4 Most Important
Fringe benefits and welfare measures 5 Most Important
Participation in decision making 6 Very Important
Job security 7 Very Important
Image of organization 8 Important
Work and total life space 9 Important
Work load and job stress 10 Important
Equity, justice and grievance handling 11 Important
Human relations and social aspect of work life 12 Important
Physical work environment 13 Moderate Important
D.R. Saklani Quality of Work Life in the Indian
Context An Empirical Investigation
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QWL and Organizational Efficiency

• It encourages workers to participate with
  management in making decisions.
• It results in increasing organizational
  effectiveness, and improving worker satisfaction,
  commitment and performance (Nadler and Lawler,
  1983).
• QWL leads to
• improved employee satisfaction and fulfillment,
• increased mutual trust,
• improved employee-supervisor relationships,
• reduced stress and improved health,
• reduced counterproductive attitudes and
  behaviours,
• increased job security,
• reduced grievances,
• better utilization of human resources,
• deeper sense of worker responsibility,
• reduced labour-management conflict,
• increased productivity,
• a strengthened position of companies in
  competitive markets.
• (Steers and Porter, 1983).

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Human Resource Accounting

• Human Resource Accounting (HRA) is
• the process of identifying and measuring data
  about human resources and communicating this
  information to interested parties (The American
  Accounting Associations Committee , 1973).
• the measurement and reporting of the cost and
  value of people in organizational resources
  (Flamholtz, 1971).

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Human Resource Accounting

• HRA, thus,
• not only involves measurement of all the
  costs/investments associated with the
  recruitment, placement, training and development
  of employees, but also
• the quantification of the economic value of the
  people in an organisation.
• HRA is
• a management tool which is designed to assist
  senior management in understanding the long term
  cost and benefit implications of their HR
  decisions so that better business decisions can
  be taken.

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Purposes served by HRA

• It furnishes cost/value information for making
  management decisions about acquiring, allocating,
  developing, and maintaining human resources in
  order to attain cost-effectiveness
• It allows management personnel to monitor
  effectively the use of human resources
• It provides a sound and effective basis of human
  asset control, that is, whether the asset is
  appreciated, depleted or conserved
• It helps in the development of management
  principles by classifying the financial
  consequences of various practices Likert (1971).

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Measurements in HRA

• The cost approach which
• involves methods based on the costs incurred by
  the company, with regard to an employee.
• The economic value approach which
• includes methods based on the economic value of
  the human resources and their contribution to the
  companys gains.