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Question

Your reply must make a recommendation to the discussion below with a peer reviewed journal article written between (2017-2021) that provides additional information on the topic. In your response, you should give a summary of the article in your own words and discuss why it is relevant to their forum topic. It must be different than articles they reference in their forum.

Discussion Below:
Accounting Discussion Question

Introduction to HR/Talent Management in Management Accounting

Human Resources (HR) departments seemly have operated in silos throughout many organizations, for several years, and honestly probably still do. Management Accounting is a convergence opportunity for HR to be considered a variable expense not just a cost center for an organization (Subramony et al., 2021). Research indicates organizations are spending money in HR for workforce development, recruiting, and training, among many other things, but they are now expecting a return on their investment from investing in human capital (Dorr et al., 2021; Subramony et al., 2021). This paper will look at these aspects along with countries/organizations that utilize accounting standards for consistency, to see if it makes a difference in human capital productivity (Banker, 2021; Zhang et al., 2020).

Current Trends and Research

Most compelling, was research based on the concept of consistent accounting standards and the positive impact on productivity with regards to labor. Banker (2021) learned that of the 79 countries that use the International Financial Reporting Standards (IFRS) there was a significant increase in labor productivity and voluntary compliance even up to 5 years upon completion of the study. Along the same line Zhang et al., (2020) conducted similar research using accounting comparability. They discovered when companies utilized standards for reporting, stakeholders have a much broader and accurate picture of labor productivity and self-interest hiring by management. Numerous firms are still using internal private reporting of labor practices and standards, which truly makes it a challenge to know if they are using “best practices” in their firm (Zhang et al., 2020). In the discussion of best practices and accounting standards, Dorr and Feuerhelm (2021) looked at accounting firms hiring practices for the silver tsunami (retirement) of the baby boomer generation. Firms need to be ready to replenish their human capital and ensure the new hires are prepared to step into the company’s culture and obtain knowledge required to work successfully, as each firm clearly has its own identity. Transition is also crucial to firms as they prepare to “backfill” positions left by retirees (Dorr & Feuerhelm, 2021). An area many public accounting firms and investment banks may want to be careful of is gender stereotyping (Fanning, 2021). In the narrative of hiring, and retirement of baby boomers, group interviews may not be the best way to obtain diverse employees. Fanning (2021) found that when group interviews were conducted with male recruiters, male candidates who self-promoted and injected themselves into social conversations, were looked at positively, while females who did the same were negatively viewed. One on one interviews, with the same recruiters, females fared equal to their male counterparts (Fanning, 2021). This research gives us an interesting lead into talent management, not only with regards to retirement but also during the COVID-19 pandemic. Aguinis and Burgi-Tian (2021) gives a strong argument for performance management as current employees are experiencing stress and burnout as well as not knowing how they are performing as many companies have simply stopped any employee evaluation process. It was an easy opportunity for employers and HR departments as they were merely doing an appraisal, yearly, and not truly taking part in performance management on an ongoing basis, which directly affects company communication and maintenance as well as employee development and documentation (Aguinis & Burgi-Tian, 2021). Subramony et al., (2021) ties this research together stressing the validity of human capital (employees) and their productivity to the direct and indirect bottom line of an organization. HR departments are being, more heavily invested in for workforce development, recruiting, and hiring. No longer should they be considered just a “cost” to a company, but a variable expense and be held accountable for positive labor production (Subramony et al., 2021).

Future Opportunities and Research

In addition to the research above, it is important for further specific research to be gathered. Group interview techniques from Fanning (2021) would suggest looking at all female recruiters rather than male or looking at an equal mix of male and female to see if group interview results would be any different for males and female candidates. Dorr and Feuerhelm (2021) also refer to the idea of recruiting with reference to filling retirement positions, and ensuring the company is prepared for those vacancies, but also suggests the same research be sought in industries such as legal and medical, who are largely experiencing similar trends. An opportunity to include more firm level research with standard accounting comparables and data gathering from other financial institutions and management as it relates to productivity would be beneficial (Banker, 2021; Zhang et al., 2020). Aside from firm level research, Aguinis and Burgi-Tian (2021) directs better performance management systems for organizations, which helps measure productivity and behavior as well as retain top performers. Subramony et al., (2020) broadly includes future thought to encompass other economies so there is an international comparison of what HR investment and productivity looks like in relation to management accounting.

References

Aguinis, H., & Burgi-Tian, J. (2021). Talent management challenges during COVID-19 and beyond: Performance management to the rescue. BRQ Business Research Quarterly, 24(3), 233–240. https://doi.org/10.1177/23409444211009528

Banker, R. (2021). Do accounting standards matter for productivity? Production and Operations Management, 30(1), 68–84. https://doi.org/10.1111/poms.13257

Dorr, B.M., & Feuerhelm, S.L. (2021). Addressing the silver tsunami in the accounting industry. Journal of Work-Applied Management, 13(1), 142-153. http://dx.doi.org/10.1108/JWAM-11-2020-0049

Fanning, K. (2021). Group recruiting events and gender stereotypes in employee selection. Contemporary Accounting Research: A Journal of the Canadian Academic Accounting Association = Recherche Comptable Contemporaine: La Revue de l’Association Canadienne Des Professeurs de Comptabilité.

https://doi.org/10.1111/1911-3846.12710

Subramony, M., Guthrie, J.P., & Dooney, J. (2021) Investing in HR? Human resource function investments and labor productivity in US organizations. The International Journal of Human Resource Management, 32(2), 307-330. DOI: 10.1080/09585192.2020.1783343

Zhang, Z., Ntim, C.G., Zhang, Q., & Elmagrhi, M.H. (2020). Does accounting comparability affect corporate employment decision-making? The British Accounting Review, 52(6), 100937. https://doi.org/10.1016/j.bar.2020.100937