This slide describes all accounting aspects related to Accounting Human Resource its cost, advantages,methods etc..

1. HUMAN RESOURCE MANAGEMENT
BY: Abhishek Kyal
UNIVERSAL BUSINESS SCHOOL
PGCM-1401

2. The American Accounting Association’s Committee
on
Human Resource Accounting (1973)
has defined Human Resource Accounting as
“the process of identifying and measuring data about human resources
and communicating this information to interested parties”
“You can have the best strategy and the best building in the world, but if
you don’t have the hearts and minds of the people who work with you,
none of it comes to life.”
– Renee West, Luxor and Excalibur Hotel
1. 2. 3. 4. 5. 6. 7. 8. 9.OBJECTIVES OF HRA

3. 1. 2. 3. 4. 5. 6. 7. 8. 9.OBJECTIVES OF HRA
To review the performance of the Human Resource Department .
To identify the gaps, irregularities, in the implementation of the Policies.
To know the factors which are detrimental to the non-implementation or wrong implementation.
To suggest measures and corrective steps to rectify the mistakes.
To evaluate the Personnel staff and employees with reference to the Performance Appraisal.
To evaluate the job chart of the Human Resource Managers, Executives, Administrative Officers.

4. 1. 2. 3. 4. 5. 6. 7. 8. 9.ADVANTAGES OF HRM
HRA Provide useful information about the Human Capital in Organisation .
Requires thorough review of Human Resource department’s information
system.
It highlight the strength and weakness of employees.
HRA helps to evaluate the effectiveness of HR policies and Practice.
HRA enables management to various types of Human Resource cost.
Ensures timely compliance with legal requirements.

5. Trade union
Measurement
problem
Differentiate cost
& value
No empirical
evidence
1. 2. 3. 4. 5. 6. 7. 8. 9.LIMITATION

6. Human
Resource
Valuation
Monetary
Method
Historical Cost
Replacement
Cost
Opportunity
Cost
Asset
Multiplier
Cost
Non-
Monetary
Method
Expected
Realisable
Value
Discounted
NPV Of Future
Earning
1. 2. 3. 4. 5. 6. 7. 8. 9.APPROACHES TO HRV

7. Cost of Human
Resources
Recruitment
Cost
Selection Cost Orientation Cost
Training &
Development
Cost
1. 2. 3. 4. 5. 6. 7. 8. 9.COSTS OF HUMAN RESOURCES

8. •
𝑐𝑜𝑠𝑡 𝑜𝑓 𝑟𝑒𝑐𝑟𝑢𝑖𝑡𝑚𝑒𝑛𝑡
𝑁𝑜.𝑜𝑓 𝑟𝑒𝑐𝑟𝑢𝑖𝑡𝑒𝑟𝑠 ℎ𝑖𝑒𝑟𝑒𝑑/𝑅𝑒𝑡𝑎𝑖𝑛𝑒𝑑
Cost of
Recruitment
• Time taken from commencement to
completion of recruitment process
Recruitment
Cycle Time
Cost of
Turnover
Cost of
Training
•
𝑁𝑜.𝑜𝑓 𝑠𝑒𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛
𝐴𝑣𝑔.𝑛𝑜.𝑜𝑓 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠
X 100
•
𝑇𝑟𝑎𝑖𝑛𝑖𝑛𝑔 𝐶𝑜𝑠𝑡
𝑁𝑜.𝑜𝑓 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠
1. 2. 3. 4. 5. 6. 7. 8. 9.RATIO ANALYSIS

9. HUMAM RESOURCE MANAGEMENT
- S.CHAND
 AMERICAN ASSOCIATION OF ACCOUNTANTS
 K.N. RANDERIA, NATIONAL INSTITUTE OF PERSONAL
MANAGEMENT
 THE HUMAN ORGANISATION
- RENSIS LIKERT
 http://www.whatishumanresource.com/objectives-
and-benefits-of-Human-Resource-auditing
1. 2. 3. 4. 5. 6. 7. 8. 9.BILBIOGRAPHY & WEBLIOGRAPHY

10. 1. 2. 3. 4. 5. 6. 7. 8. 9. THANK YOU