2. CONTENTS
1. What is human resource accounting?
2. Definition by American accounting association
3. Objective of Human resource accounting
4. Benefits of human resource accounting
3. WHAT IS HUMAN RESOURCE
ACCOUNTING?
deals with the measurements of costs associated with:
Recruiting
Selecting
Hiring
Training
Placing
Developing
measuring the current economic value of the organisation
Employees of the organisation
4. DEFINITION BY AMERICAN ACCOUNTING
ASSOCIATION
HRA is a process of identifying & measuring data about human resources
& communicating this information to the interested parties.
5. OBJECTIVE OF HUMAN RESOURCE
ACCOUNTING
To facilitate the effective and efficient management of human resources
(as it would provide information needed to acquire, develop, allocate,
conserve, utilise, evaluate & reward human resouces).
Provide feedback to managers of their own performances.
6. BENEFITS OF HUMAN RESOURCE
ACCOUNTING
Helps in making meaningful choices between various types of
investments in human resources and other assets, particularly,
Direct recruitment vs. promotion
Transfer vs. retention.
Retrenchment or relieving vs. retention
Utility of cost reduction programme in view of the possible impact on
human relations.
7. Impact of budgetary control on human relations and organisational
behaviour.
New dimension added to capital budgeting process which includes human
resource investment costs.
Consideration for an adequate return on investment in human assets and
also a more useful interpretation of return on capital employed.
Decision on relocating factories, developing overseas subsidiaries, closing
down or streamlining existing units.
