Human resource accounting ppt

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Human resource accounting ppt

  1. 1. Few Questions??? What is the value of human resource in the country today?? What is the true position of the human resource in the country or any industry??
  2. 2. UNITED STATES INDIA AUSTRALIA GERMANY CHINA CANADA PORTUGAL GREECE ITALY
  3. 3. Human Resource Accounting  Definition by M.N.Baker: It is an accounting profession to quantify cost and Value of employee employing in the organization.  It is the process of identifying Investments made by the organization in the Human Resource Assets.  Human Resource Accounting is the process of assigning, budgeting, and reporting the cost of human resources incurred in an organization, including wages and salaries and training expenses.
  4. 4. CONCEPT INVESTMENT IN HUMAN RESOURCES Expenditure incurred on creating, increasing and updating human resources VALUE OF HUMAN RESOURCES YIELD GENERATED IN FORM OF HIGHER PRODUCTIVITY AND HIGHER INCOME/PROFIT IN THe ORGANIZATION
  5. 5. THEORY OF HUMAN RESOURCE ACCOUNTING BASIC PREMISES • Valuable resource • Management OBJECTIVES • Decision making • Efficiency SIGNIFANCE • Designing Training Module • Manpower Planning • Motivation and Reward of employees
  6. 6. Types of Cost
  7. 7. RECAP • Human resource accounting is an attempt to identify and report investment made in resources of the organization that are not presently accounted for under conventional accounting practice "(woodruff). • Prof. Sidney Davidson defines human resource accounting as a “term used to describe a variety of proposals that seek to report and emphasize the importance of human resourcesKnowledgeable, trained and loyal employees-in a company's earnings process and total assets‟.
  8. 8. Approach HR COST ACCOUNTING HR VALUE ACCOUNTING • INTRODUCTION COST, TRAINING AND DEVEOPMENT COST, OPPORTUNITY COST, PROMOTIONAL COST, ETC. • VALUE OF INVESTMENTS MADE BY THE ORGANIZATION. • DIFFERENCE IN PRESENT AND FUTURE EARNINGS OF THE FIRM. • BASED ON USE OF MODELS LIKE LEV AND SHWARTZ, ETC.
  9. 9. FEW EXAMPLE – Cost Part
  10. 10. Value Part Based on Lev and Schwartz model Calculates future value of employees taking into consideration their current earnings and age factor in mind
  11. 11. QUESTION COMES OF CHECK?? HR AUDIT
  12. 12. AT LAST THE PROCESS,
  13. 13. ESSENCE
  14. 14. EXAMPLE
  15. 15. QUOTE’S Employees are the most valuable resources of comparison in the services (software, Banking, Management Consultancy, etc) sectors. Like all other resources the company the employees possess value because of providing future services”

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