Human resource accounting and audit

1. Human
Resource
Accounting
and
Audit

2. ‘’ HRD Audit is a comprehensive evaluation of human resource development
encompassing Strategies, systems, practices, structures, competencies, styles
and culture and their Appropriateness to achieve the short and long term business
goals of the organisation.’’ -DR. T.V. Rao
Human Resource
Development Audit

3. Methodology
of HRD Audit
1.Interview
Method 2.Questionnaire
Method
4.Workshop
Method
3.Observation
Method
5.Task Forces
Method

4. Importance
of
HRD Audit
1.Forecasting strategic Business Plans
2.Clarity of Role of HRD Function
3.Organisational Competency analysis
4.Changes in the system of Top management
5.ROI Analysis
6.Strengthening Performance improvement Mechanisms

5. Human Resource
Accounting
‘’Human Resource Accounting can be defined as the process of identifying, qualifying,
Accounting and Forecasting the value of human resource in order to facilitate effective
human resource management.’’ -John Bratton and Jeffrey Gold

6. Need of HRA
Importance of HRA
-Measuring Problems deriving from the valuation of B/s.
-Security versus Flexibility in employment.
-Improved Human resource management.
-Redistribution of Social Responsibilities.
-Inadequacy of Traditional B/s.
To Support Human Resource Development.
To Increase employee Participation in HRD Policy.
To Standardize measurement of HR Worth.

7. Methods based on Economic Value of Human Resource
On the Basis of
Cost
On the Basis of
Value
Historical Cost
Replacement Cost
Competitive Bidding
Standard Cost
Jaggi and Lau
Economic Value

8. HRA information disclosed by some of the companies
Name of the
organization
HRA introduced in the year Model
BHEL 1973-74 Lev & Schwartz model
SAIL 1983 – 84 Lev & Schwartz model with Some refinements
as suggested by Eric.G. Flamholtz& Jaggi and
Lev
MMTC 1982 – 83 Lev & Schwartz model
ONGC 1981-82 Lev & Schwartz model
NTPC 1984-85 Lev & Schwartz model
INFOSYS 1995-96 Lev & Schwartz model
2006-07 Lev & Schwartz model

9. Bibliography
http://thecommercepedia.blogspot.in/2012/05/case-study-on-human-resource-accounting.html
http://www.staffoutsourcing.com/outsourcing-services/hr-outsourcing-accounting/
https://www.google.co.in/search?q=examples+of+human+resource+accounting&bih=624&biw=
1366&espv=2&source=lnms&sa=X&ei=pJ-SVKLqLo2zuASBgoGYCQ&ved=0CAUQ_AUoAA&dpr=1
Human Resource Development Book- Tapomoy Deb

10. Surbhi Jindal
PGDM1-1416