HUMAN RESOURCE ACCOUNTING : HUMAN RESOURCE ACCOUNTING PRESENTED BY:
ROLL NO:12 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: THANK YOU