A Study Of Cost Effective Of Business Redundancy

It seems inevitable that a business should layoff its excess workforce when it is in facing with adverse economic environment. The focus of the question is how to evaluate the cost effective of its excess human resources, which shows a negative result and leads to a conclusion of redundancy.Doubtlessly, Human Resources Accounting, which provides a method to calculate and analyse the cost and benefit of human resources, could help to improve the usage and structure of the human resources of a business. Besides that, Human Resource Auditing, which is generated from the concept of analysis of job specification, could be used to improve the distribution of human resources too.However, evert human resources accounting provides an objective and rational analytical method for decision making, in practice, a successful redundancy consists of a careful planning, a step-by-step implementation, and a unique follow-up after the event.Beside the cost effective, it is wonder that a business should be responsible more for its community and the management and training of its human resources. In management of the business, especially the management of human resources, the employee should be allowed to participate in a greater extent. Most important is that, the employer of the business should understand redundancy is not the only solution to improve the cost effective. Under a reasonable management condition, no matter how worse the environment is, the employer and the employee can both win.With the help of various analysis and human resources accounting, the target of this thesis is to study the cost effective of a business redundancy at the approach of management accounting.