OTHER BUSINESS PROCESSES

The Primary Objective of the human resource process is to provide the human labor and expertise that an organization needs to function efficiently and effectively.

The more important responsibilities of the human resource needs, here people to fill those needs, train the people to function effectively in their assigned jobs, evaluate employee performance, pay employees for work performed, and handle employee terminations and retirements.

The personnel Division hires the employee, authorizes a rate of pay, and collect information about marital status and number of dependent for payroll deduction purpose.

Cost accounting use the job time tickets to post labor cost to job order cost sheets

The payroll division verifies pay rates and calculates deduction for such items as Social security taxes (FICA), federal and state income taxes, as well as net pay.

This process has several key data flows and control points. Key data flows include the job time tickets, time cards, payroll register, pay voucher, and checks to the imprest payroll account and to individual employees.

From Timekeeping

Attendance time cards

Attendance time cards

Prepare batch Total

Key to disk and edit

Time data

Run 1Sort by employee

number

Time data

EXHIBIT 8-2 Traditional Automated

Sales/Collection Process Flowchart-Shipping

Some of the key business events associated with the entire human resource process including headcount approva, hiring, training, assigning, compensating, evaluating and terminating.

Approved headcount is a key tool for controlling labor costs.

Headcount List

ProposeHeadcount

Human Resource

PanningCommittee

Hiring Officer

Cash PayrollEmployees

Review/APPROVE Headcount

Hire Employees

Train Employees

Assign Employees

Pay Employees

Terminate/RetireEmployees

Trainers

Supervisor

EXHIBIT 8-3 REAL Model of The Human Resource Business

Other Financing

alternatives Sales/Collection Process

Acquisition/Paymentprocess

Conversion Businessprocess

Financing Business process

Human resource process

Cash

Cash

Cash

Cash

Labor

Labor

Labor

Materials

Goods andservices

EXHIBIT 8-4Sample Process Relationship

Short and long-term investments in financial instruments of other companies

Money market accounts that bear interest Certificates of deposit (CDs) Treasury notes

EXHIBIT 8-5 Sample Equity Company Financing REAL Model

Debt Financial Instruments

Approve New Loans

Cash

Assets Financial Instruments

Finance Employee

Financing Institution

AccountingPersonnel

Borrow Money

SellStock

Receive Cash

Invest Excess Funds

Approve Principal &

InterestPayments

Disburse Cash

ExecutiveCommittee

(1,1)

(1,1) (1,1)

(1,1)(1,1)

(1,1)(1,1)(1,1)

(1,1)

(1,1)

(1,1)

(1,1)

(1,1)(1,1)

(1,1)

(0,*)

(1,1)

(1,1)

(1,1)

(1,1)

(1,1)

(1,1)

(1,1)

(0,*)

(0,*)(0,*)

(0,*)

(0,*)

(0,*)

(0,*)

(0,*)

(0,*)

(0,*)

(0,*)

(0,*)

(0,*)

(0,*)

Conversion process

Inputs

-Raw Materials-Equipments-Labor

Acquire Inputs through :

-Acquisition/Payment process-Human Resources Process

-Products-Services

Sell Outputs Through

- Sales Collection Process

Outputs

EXHIBIT 8-6Sample Conversion Process Data Flows

Acquired Used

Labor

Costs

Equipment and Other

Raw Materials

AllocatedAmount

MaterialsLabor overhead

Units completed

Units completed

Units sold

Work in Process Finished Goods

EXHIBIT 8-7Flow of Resources – Manufacturing Process

Raw Material Inventory

Head GlassCompound

Work in Process

Inventory

Finishers

Finished Goods Inventory

Equipment

Furnace Operators

(1,1)

(1,1)

(1,1)

(1,1)(0,*)

(1,*)(1,*)

(1,*)

(0,*)

(1,1)

(0,*)

(1,*)(1,1)

(1,*)

Packagers PackageBottle

(1,1)

(0,*)

(0,*)

Pour Glass Into Molds

Finish and Label

Pourers

(1,*)

(1,*)

(1,*)

(1,*)

(1,*)

(1,*)

(1,*)

(0,*)

(0,*)

(0,*)

(0,*)

(0,*)

(1,1)

EXHIBIT 8-8Nicol’s Bottling Conversion Process REAL Model

(without Relationship semantics)

Financial Instruments

Investment activities

Human Resource

Goods/servicesResources

Customers

Employees

Property, Plant & Equipment

Cash

Vendor

Acquire Financing

Hire & use employee service

Convert/Build Products

Sell Goods Services

ReceiveCash

PurchaseResources

DisburseCash

Inventors & Creditors

EXHIBIT 8-9 Generic Overview of an Entire Business

Product & Services

Product-Sell

Engagement

CollectCash

Client Cash

Sell Engagement(1,1)

(1,1) (1,1)

(1,1)(1,*)

(0,*)

(1,1)

(1,1)

(1,1)

(1,*)

(0,*)

Employee Play

Employee

(1,1)

(0,*)

(1,1)

(0,*)

(0,*)

(0,*)

EXHIBIT 8-10Forest & Kappa, CPAs: Sales/Collection Process Model

EXHIBIT 8-11Forest & Kappa, CPAs: Conversion Process Model

Phases & Task

Phases-Develop

Work Plan

Billing Rate

PerformAudit

Perform Audit-Auditor

Employee

Develop Work Plan

(1,1)

(1,1)

(1,1)

(1,1)(1,*)

(1,1)(1,*) (1,*)(1,*)

(1,1)

(1,1) (1,1)

(1,*)

(1,*)

(1,1) (1,*)

Supplies &Equipment-Audit

supplies &Equipment

(1,1)

(1,1)

(1,1)

(0,*)

(1,*)(1,*)