Project: HRM and Management Accounting in Business Context

This project provides a detailed analysis of Human Resource Management (HRM) and Management Accounting. Part A focuses on HRM, including a summary of HRM practices, the recruitment process within organizations, and a specific application to Sainsbury's. It examines the importance of HRM in hiring, training, and motivating employees, as well as the key steps in a recruitment process. The Sainsbury's case study highlights their recruitment strategies, including the use of online applications and interviews. Part B shifts to Management Accounting, discussing its significance in making strategic decisions and managing financial information. The project covers the importance of management accounting, various management accounting systems such as inventory and cost accounting, the differences between financial and management accounting, and the main purposes of management accounting, including planning, monitoring, directing, and analysis. The project provides a comprehensive overview of both areas and offers recommendations to improve processes.

Project

Table of Contents
PART A...........................................................................................................................................3
Summary......................................................................................................................................3
Human Resource Management (HRM).......................................................................................3
Recruitment Process of Organizations.........................................................................................3
Application of recruitment process in context of Sainsbury's.....................................................4
Conclusion...................................................................................................................................5
Recommendation.........................................................................................................................5
PART B............................................................................................................................................5
Topic: Management Accounting......................................................................................................5
Summary......................................................................................................................................5
Importance of Management Accounting.....................................................................................5
Management Accounting Systems...............................................................................................6
Difference between financial or management accounting...........................................................7
Purpose of management accounting............................................................................................8
Conclusion...................................................................................................................................8
.........................................................................................................................................................8
REFERENCES ...............................................................................................................................9

PART A
Summary
This report summarised the human resource management practices and process which is
beneficial for the organization to manage their human resources. Managers motivate their
employees that maximise their overall productivity as well as performance. This report also
discuss the recruitment process of Sainsbury's which they follow at the time of hiring new
candidate for the company. In the end, there will be a short conclusion as well as
recommendations to improve the recruitment process of the company.
Human Resource Management (HRM)
It is the process of hiring, selecting, provide conduction programs, training &
development, compensation, rewards etc. These activities should be included in the HRM
process and managers have to perform it and ensure that it will result positively (Armstrong and
Taylor, 2020). Along with this, HRM include the motivational factors as well which helps the
employees to perform well and achieve their personal as well as professional goals. HRM is very
essential for every organizations which helps the managers to perform their activities
accordingly and maximise the productivity as well as profitability. In context of Sainsbury's,
HRM help the managers to hire suitable candidates as per the requirement of job profile and
further provide necessary training which improve their skills and competencies.
Recruitment Process of Organizations
Recruitment or hiring candidates for the vacant position in the organizations is very
important because here management attract potential resources such as candidates to meet
business goals & objectives. With the help of recruitment, business able to find the suitable
person for the vacant profit. Along with this, HR department ensure that candidate must have
those skills & capabilities which required to perform their job task or achieve the business goals
& objectives. In the recruitment process, initially management need to identify the job vacancy
and analyse the role & responsibility which any individual should perform. In addition, they need
to review the applications, screening, short-listing and finally select the suitable candidate for the
job profile (Cascio, 2015). In order to increase the efficiency of recruitment, managers should
follow the below mention five practices which make sure that company hire suitable candidate
without any interruptions. These practices ensure that business hire the best person who have all

the required skills to complete their task or maximise the overall production and profitability.
Recruitment process includes the hiring planning, development of strategy, searching, screening
and evaluate or control the process.
Application of recruitment process in context of Sainsbury's
In context of Sainsbury's company, they adopt recruitment process which the managers to
hire best candidate who meet the job responsibility & role and ensure to maximise the overall
performance in terms of profitability. Sainsbury's provide the high standard of customer services
and they value their staff through providing various benefits such wages are more than industry
standards, flexible working hours, rewards etc. Sainsbury's strictly follow the no CV policy it
means if any person come in the store with their CV for the vacancy. So they does not consider
that person and they recommend that to apply on the company's website which is the only mode
of hire suitable candidates. Company offer various post such as store support centre, pharmacies,
convenience stores, logistic depot, store person etc. So individual need to apply on company's
website and further actions will be taken by the HR department of the company.
Candidate need to apply for the job seeker's account and follow the instruction to apply.
Interview process of Sainsbury's divided into two part where candidates have to give written test
which include around 25 multiple objective questions and it focuses on effective customer
services (John and Taylor, 2016). Selected candidates from the test need to proceed further and
ready for the face to face interview with company's HR. Interviewer ask many general as well as
specific questions which helps the HR to understand the behaviour or attitude of individual.
Final selected applicants have to attend two days paid induction which is usually done in
the store where candidate apply for the work. In the Sainsbury's company, there are 12 weeks
probationary period and in between company can let the candidate free to go. But, if candidate
stay in the company than they get all the benefits which other employees get and increment in
the salary was very good. Through following these process, any individual can become the part
of Sainsbury's but they need to ensure that, test is the major factor which help the person to
getting job in the largest supermarket store. HR department of Sainsbury's follow these process
and hire suitable candidates which contributed to maximise the overall revenue. So HR manager
of the company also provide them necessary training to enhance their existing skills and further
motive to improve their overall performance as well as productivity.

Conclusion
From the above discussion it has been concluded that human resources management
(HRM) is essential for the organization to manage their human resources. HR managers also
ensure to hire those candidates who have required skills or make them able to perform role &
responsibility of the vacant position. Organization should recruit people on the basis of job
description and provide necessary training & development program to improve their efficiency
as well as effectiveness.
Recommendation
From the above observation, it has been recommended that Sainsbury's should adopt
these recommendations which helps in improving their recruitment process or make them able to
select suitable candidate for the job role. Some of the recommendation mentioned below to
improve overall performance.
 Job description design in a way that is visible as well as accessible so people get the
opportunity to apply.
 HR need to make corporate culture visible and share information proactivity (Mondy and
Martocchio, 2016).
 Maintain fast communication with the candidates which positively impact that is
beneficial for the company.
PART B
Topic: Management Accounting
Summary
Main purpose of this report is to understand the use of management accounting and how
it provide various benefits to the managers to make strategic decisions. Effective implementation
of the management accounting will maximise the production as well as employees performance.
This accounting help the managers to collect all the data and use in the future to make policies
and strategies.
Importance of Management Accounting
It is very essential for the company to manage their financial information and provide
various benefits. Some of them mentioned below:

Forecasting future: With the help of management accounting managers able to make
various decisions which helps in improving operational efficiency as well as effectiveness.
Make or Buy decisions: On the basis of available financial information managers able to
make their decisions on the basis of product cost (Chenhall and Moers, 2015). It helps in making
operational and strategic decisions which maximise the production as well as profitability.
Evaluation of performance: With the help of management accounting, business able to
evaluate the overall performance of the company as well as employees. It further helps in
analysing that business having growth or not.
Above mention importance of management accounting help the organization to improve
their overall performance and make sure to build strategy thorough after identifying weak areas
which required improvement.
Management Accounting Systems
In order to evaluate the performance as well as improve the productivity, company follow
the various accounting systems which mentioned below:
Inventory management system: It is the software which is used mostly used by the
manufacturing company in order to keep track their stock level. By using technology, manager
able to analysis the requirement of inventory and make sure that it will match the production
requirement as well. With the help of this system, managers able to prevent the situation of
shortage as well as over ordering of goods. It is essentially required for the company to maintain
production level as well as cost of the company.
Cost accounting system: It is also called product costing because here company identify
their product cost which further impact the .profitability of the company. Higher the product cost
will reduce the profit margin so managers should evaluate all the activities and try to minimise
the cost through eliminating non value activities which occur the cost (Kaplan and Atkinson,
2015). Along with this, they need to minimise the cost and try to control or monitor for the entire
production period. It further helps the managers to make their decisions according which
maximise the sales as well as revenue of the company.
Above mention management accounting system help the organization to track their
inventory level as well as minimise their each product cost. These kind of activities will help the
management to minimise their overall manufacturing cost through managing their resources.

Difference between financial or management accounting
Basis Management Accounting Financial Accounting
Meaning It help the managers to take
effective decision regarding
business operations which helps in
maximising productivity as well as
profitability.
It is the classification of financial
transaction and further analyse,
record and maintain the
information so others can
understand.
Applications With the help of management
accounting, top management people
can take effective steps or build
strategies in order to achieve the
business goals & objectives.
Financial accounting prepare for
the purpose of representing actual
or accurate position of the
company in terms of wealth.
Scope Scope is border in comparison to
financial accounting because
managers can make decision
regarding every aspect of the
company with the help of available
information.
It has pervasive scope but not as
management accounting have.
Because they just perform their
duty through maintaining
accounting records for the
evaluation of results.
Measurement This accounting measured in
qualitative as well as quantitative
term.
It is measured only in qualitative
terms because it include the
financial transaction only.
Dependence It is depended on the financial
accounting because without
financial information management
unable to make any decisions or
strategies.
Financial accounting not
dependent upon management
accounting (Maas, Schaltegger
and Crutzen, 2016).
Statutory
requirement
There is no statutory requirement
because it is prepare for the internal
purpose.
It is legally mandatory to prepare
financial accounts for the
stakeholder analysis.

Purpose of management accounting
There are various purpose to done management accounting and some of them mentioned
below:
Planning: It is the fundamental purpose of management accounting to done planning
with the help of available financial information. Managers of the company use this accounting to
make strategies which maximise the production as well as profitability of the company.
Monitoring: Another propose is to monitor the overall operational activities of the
company and ensure that employees will perform their task effectively which helps in achieving
organizational goals & objectives.
Directing: It includes the directions or guidelines which provided by the managers to the
employees (Otley, 2016). So they can perform their task in well manner or maximise the output
in terms of generating more revenue for the company.
Analysing & Reporting: It is the key purpose of management accounting is to analyse or
report the overall performance of the company. It further help the managers to identify the
problems and make sure to resolve with effective strategy.
Conclusion
On the above discussion it has been concluded that management accounting is essentially
for the organization to manage their operational activities. It further help the managers to make
their future decisions accordingly and try to implement accounting system and other techniques
which maximise the operational efficiency as well. In order to build strategy for the company,
managers need to use financial information which provided with the help of financial accounting
which is collected by the accountant and represent in order to understand by the stakeholders so
they can evaluate the entire performance.

REFERENCES
Books & Journals
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Cascio, W. F., 2015. Costing human resources. Wiley Encyclopedia of Management, pp.1-1.
Chenhall, R. H. and Moers, F., 2015. The role of innovation in the evolution of management
accounting and its integration into management control. Accounting, organizations and
society. 47. pp.1-13.
John, R. and Taylor, B., 2016. Human resource management.
Kaplan, R. S. and Atkinson, A. A., 2015. Advanced management accounting. PHI Learning.
Maas, K., Schaltegger, S. and Crutzen, N., 2016. Integrating corporate sustainability assessment,
management accounting, control, and reporting. Journal of Cleaner Production. 136.
pp.237-248.
Mondy, R. and Martocchio, J. J., 2016. Human resource management. Pearson.
Otley, D., 2016. The contingency theory of management accounting and control: 1980–
2014. Management accounting research. 31. pp.45-62.