Quality of Work Life
HR Accounting
HRIS
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).
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.
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
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).
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 Association’s Committee , 1973).
– the measurement and reporting of the cost and
value of people in organizational resources
(Flamholtz, 1971).
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.
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 costeffectiveness;
• 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).
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
company’s gains.