HRA: CONCEPT :
HRA: CONCEPT “the process of identifying and measuring data about human resources and communicating this information to interested parties”.
“Human Resource Accounting is basically an information system that tells management what changes are occurring over time to the human resources of the business. HRA also involves accounting for investment in people and their replacement costs, and also the economic value of people in an organization,”
HISTORICAL DEVELOPMENT OF HRA :
HISTORICAL DEVELOPMENT OF HRA
NEED FOR HRA :
NEED FOR HRA HRA systems can be put to use for taking a variety of managerial decisions
Organizations can actually find out how much they can earn from an individual
HRA reflects the extent to which organization contributes to society’s human capital by investing in its development.
It provides a sound and effective basis of human asset control
Helps to know whether the asset is appreciated, depleted or conserved
MEASUREMENTS IN HRA :
MEASUREMENTS IN HRA
COST APPROACH IN HRA :
COST APPROACH IN HRA
ECONOMIC VALUE APPROACH :
ECONOMIC VALUE APPROACH
NON MONETARY MEASURES :
NON MONETARY MEASURES Skills or capability inventory
Assessment of potential
Attitude measurements
DETERRANTS TO HRA :
DETERRANTS TO HRA Lack of an industry standard
The need for extensive research
Not an economically viable option for small and medium companies
Difficult to predict as to what is going to be your future requirements
Slide 11:
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