IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v13y2023i2p21582440231177228.html
   My bibliography  Save this article

Implementing ABC as Cost Management Model for the Human Resources Department: Evidence From a Romanian Entity

Author

Listed:
  • Nicoleta Valentina Florea
  • Constantin Aurelian Ionescu
  • Marinela Daniela Manea
  • Dan Ioan Topor
  • Sorinel Capusneanu
  • Dan Marius Coman
  • Sorina Geanina Stanescu
  • Mihaela Denisa Coman

Abstract

The study proposes a cost management model for recruitment, selection, employment, and integration (RSEI), for the human resources (HR) department in order to identify the possibilities of cost optimization. The proposed model consisted of applying the activity-based costing (ABC) method, as a novelty in the HR field, by developing an algorithm for calculating the cost per employee. To observe the evolution of the analyzed RSEI process costs, the Pareto Chart and the Markov chain model were used. To verify the viability of the model, it was applied within an industrial company. The research results indicated that: in the recruitment process, the most consuming resource is the use of recruitment agencies (89.50% of the recruitment cost); in the selection process, the protocol consumes 66.80%; in the employment and payment processes, salaries consume 52.20%, and insurance taxes 34.80%; in the integration processes, the most consuming resources are tutors with overtime pay (63.30%). After identifying and quantifying the high costs, a plan of measures is drawn up to minimize costs. The study contributes to the RSEI cost literature and has practical implications for human resources practices and organizational performance. The analysis is limited to a few processes of HR, but these are the most consuming resources and the most important in recruitment. The model could be implemented as a future direction for other improvements of the HR processes (performance evaluation, dysfunctional social analysis, motivation, reward and compensation), career management analysis, or other company’s processes.

Suggested Citation

  • Nicoleta Valentina Florea & Constantin Aurelian Ionescu & Marinela Daniela Manea & Dan Ioan Topor & Sorinel Capusneanu & Dan Marius Coman & Sorina Geanina Stanescu & Mihaela Denisa Coman, 2023. "Implementing ABC as Cost Management Model for the Human Resources Department: Evidence From a Romanian Entity," SAGE Open, , vol. 13(2), pages 21582440231, May.
    • Handle: RePEc:sae:sagope:v:13:y:2023:i:2:p:21582440231177228
    DOI: 10.1177/21582440231177228
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440231177228
    Download Restriction: no
    File URL: https://libkey.io/10.1177/21582440231177228?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Matthew Collin & David N. Weil, 2020. "The Effect of Increasing Human Capital Investment on Economic Growth and Poverty: A Simulation Exercise," Journal of Human Capital, University of Chicago Press, vol. 14(1), pages 43-83.
    2. Wen-Hsien Tsai & Shu-Hui Lan & Cheng-Tsu Huang, 2019. "Activity-Based Standard Costing Product-Mix Decision in the Future Digital Era: Green Recycling Steel-Scrap Material for Steel Industry," Sustainability, MDPI, vol. 11(3), pages 1-30, February.
    3. Milota Vetráková & Miloš Hitka & Marek Potkány & Silvia Lorincová & Lukáš Smerek, 2018. "Corporate Sustainability in the Process of Employee Recruitment through Social Networks in Conditions of Slovak Small and Medium Enterprises," Sustainability, MDPI, vol. 10(5), pages 1-17, May.
    4. Konrad Turek & Kène Henkens, 2020. "How Skill Requirements Affect the Likelihood of Recruitment of Older Workers in Poland: The Indirect Role of Age Stereotypes," Work, Employment & Society, British Sociological Association, vol. 34(4), pages 550-570, August.
    5. Brandão, Catarina & Silva, Rita & dos Santos, Joana Vieira, 2019. "Online recruitment in Portugal: Theories and candidate profiles," Journal of Business Research, Elsevier, vol. 94(C), pages 273-279.
    6. John Burgess & Julia Connell, 2020. "New technology and work: Exploring the challenges," The Economic and Labour Relations Review, , vol. 31(3), pages 310-323, September.
    7. Gosselin, Maurice, 1997. "The effect of strategy and organizational structure on the adoption and implementation of activity-based costing," Accounting, Organizations and Society, Elsevier, vol. 22(2), pages 105-122, February.
    8. Tsai, Wen-Hsien, 1996. "A technical note on using work sampling to estimate the effort on activities under activity-based costing," International Journal of Production Economics, Elsevier, vol. 43(1), pages 11-16, May.
    9. Carnevale, Joel B. & Hatak, Isabella, 2020. "Employee adjustment and well-being in the era of COVID-19: Implications for human resource management," Journal of Business Research, Elsevier, vol. 116(C), pages 183-187.
    10. Black, J. Stewart & van Esch, Patrick, 2020. "AI-enabled recruiting: What is it and how should a manager use it?," Business Horizons, Elsevier, vol. 63(2), pages 215-226.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Evdokia I. Tsifora & Prodromos D. Chatzoglou, 2016. "Exploring the effects of firm and product characteristics on cost system’s features," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 93-116.
    2. Wen-Hsien Tsai & Shu-Hui Lan & Hsiu-Li Lee, 2020. "Applying ERP and MES to Implement the IFRS 8 Operating Segments: A Steel Group’s Activity-Based Standard Costing Production Decision Model," Sustainability, MDPI, vol. 12(10), pages 1-33, May.
    3. Ni, Dan & Jiwen Song, Lynda & Zheng, Xiaoming & Zhu, Jinlong & Zhang, Mengyi & Xu, Lingxiao, 2022. "Extending a helping hand: How receiving gratitude makes a difference in employee performance during a crisis," Journal of Business Research, Elsevier, vol. 149(C), pages 967-982.
    4. Ali Zackery & Joseph Amankwah-Amoah & Zahra Heidari Darani & Shiva Ghasemi, 2022. "COVID-19 Research in Business and Management: A Review and Future Research Agenda," Sustainability, MDPI, vol. 14(16), pages 1-32, August.
    5. Robertson, Jeandri & Ferreira, Caitlin & Botha, Elsamari & Oosthuizen, Kim, 2024. "Game changers: A generative AI prompt protocol to enhance human-AI knowledge co-construction," Business Horizons, Elsevier, vol. 67(5), pages 499-510.
    6. Touhami Abdelkhalek & Dorothée Boccanfuso, 2022. "Human Capital Index (HCI) – from uncertainty to robustness of comparisons," Applied Economics, Taylor & Francis Journals, vol. 54(28), pages 3246-3260, June.
    7. Isabel Marques & Zélia Serrasqueiro & Fernanda Nogueira, 2021. "Managers’ Competences in Private Hospitals for Investment Decisions during the COVID-19 Pandemic," Sustainability, MDPI, vol. 13(4), pages 1-14, February.
    8. Olivier de La Villarmois & Yves Levant, 2007. "Le Time-Driven ABC:la simplification de l’évaluation des coûts par le recours aux équivalents–un essai de positionnement," Revue Finance Contrôle Stratégie, revues.org, vol. 10(1), pages 149-182, March.
    9. Yasser Razak Hussain & Pranab Mukhopadhyay, 2023. "How Much do Education, Experience, and Social Networks Impact Earnings in India? A Panel Data Analysis Disaggregated by Class, Gender, Caste and Religion," SAGE Open, , vol. 13(4), pages 21582440231, December.
    10. Tsai, Wen-Hsien & Hsu, Jui-Ling, 2008. "Corporate social responsibility programs choice and costs assessment in the airline industry—A hybrid model," Journal of Air Transport Management, Elsevier, vol. 14(4), pages 188-196.
    11. Simon Alcouffe & Pierre Mévellec, 2012. "Analyse de la littérature sur l'ABC et proposition d'une taxinomie," Post-Print hal-00936600, HAL.
    12. Clinton Free, 2007. "Supply†Chain Accounting Practices in the UK Retail Sector: Enabling or Coercing Collaboration?," Contemporary Accounting Research, John Wiley & Sons, vol. 24(3), pages 897-933, September.
    13. Margherita, Alessandro & Elia, Gianluca & Klein, Mark, 2021. "Managing the COVID-19 emergency: A coordination framework to enhance response practices and actions," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    14. Leonel Prieto & Md Farid Talukder, 2023. "Resilient Agility: A Necessary Condition for Employee and Organizational Sustainability," Sustainability, MDPI, vol. 15(2), pages 1-24, January.
    15. Marouane Khallouk & Marc Robert & Sophie Mignon & Philippe Giuliani, 2016. "Management innovation in nonprofit organizations: an explorative study of the antecedents," Post-Print hal-02123059, HAL.
    16. Taha Ahmadzadeh & Hossien Etemadi & Ahmed Pifeh, 2011. "Exploration of Factors Influencing on Choice the Activity-Based Costing System in Iranian Organizations," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 2(1), pages 61-70, February.
    17. Turgut Karakose & Ibrahim Kocabas & Ramazan Yirci & Stamatios Papadakis & Tuncay Yavuz Ozdemir & Murat Demirkol, 2022. "The Development and Evolution of Digital Leadership: A Bibliometric Mapping Approach-Based Study," Sustainability, MDPI, vol. 14(23), pages 1-26, December.
    18. Hanen Moalla, 2006. "La diffusion de la méthode ABC en Tunisie," Post-Print halshs-00548107, HAL.
    19. Rodney Coyte & Martin Messner & Shan Zhou, 2022. "The revival of zero‐based budgeting: drivers and consequences of firm‐level adoptions," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(3), pages 3147-3188, September.
    20. Gong, Baiyun & Sims, Randi L., 2023. "Psychological contract breach during the pandemic: How an abrupt transition to a work from home schedule impacted the employment relationship," Journal of Business Research, Elsevier, vol. 154(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:sagope:v:13:y:2023:i:2:p:21582440231177228. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.