The presentation covers human resource accounting (HRA) and behaviorally anchored rating scales (BARS), defining HRA as the process of measuring and communicating the value of human resources in an organization. It outlines the objectives, methods, and importance of HRA, including improving management decisions and productivity, while also addressing its disadvantages. BARS is introduced as a performance rating tool focused on employee behavior to aid in salary and promotion analyses.

1. PRESENTATION
ON
HR ACCOUNTING &
BARS
PRESENTED BY
SANDIP A. KURIL
PRESENTED TO
RTM-Nagpur University
( MBA )
Subject : Human Resources Management

2. INTRODUCTION
HUMAN RESOURCE ACCOUNTING
HR-ACOUNTING & BARS

3. DEFINITON OF HR-ACCOUNTING
American Accounting Association (1980) has
defined human resource accounting as follows:
“Human resource accounting is the process of
identifying and measuring data about human
resources and communicating this information to
interested parties”
According to Flameouts,
“Human resources accounting is the
measurement of costs and value of the people for
the organization”
HR-ACOUNTING & BARS

4. OBJECTIVES
OF HR- ACCOUNTING….(1)
HR-ACOUNTING & BARS
3) Consider people as its asset
1) Provides cost value information
2) Improve management by
analyzing investment in HR

5. OBJECTIVES
OF HR- ACCOUNTING….(2)
4) Attract and retain qualified people
5) Enable management of the organization to
effectively monitor the use of human
resources.
6) To aid in the development of management
principles and proper decision making for
the future.
HR-ACOUNTING & BARS

6. METHODS OF HR-ACCOUNTING
1. Historical Cost
Method.
2. Replacement Cost
Method.
3. Opportunity Cost
Method.
4. Return On Efforts Employed Method.
5. Reward Valuation Method.
HR-ACOUNTING & BARS

7. NEED & IMPORTANCE
HR-ACCOUNTING
 Managerial Decision Making
 Enhances Quality of
Management
 Helps the Efficient Allocation
of Resources
 Increases Human asset
Productivity
 Improves Morale, Cooperation,
Job Satisfaction
 Human Asset Control
HR-ACOUNTING & BARS

8. DISADVANTEGES OF HR-
ACCOUNTING
1. No availability of standard
2. Opposition of trade union
3. Expenditure on HRA
4. Variety of method create
confusion
5. Uncertainty about continuance
of employees
6. Lack of perfect knowledge about
future earning of HR
HR-ACOUNTING & BARS

9. INTRODUCTION OF BARS
( Behaviorally Anchored Rating Scale )
Meaning of BARS :
Behaviorally Anchored Rating scales (BARS) are
scales used to rate performance for employees.
It was developed by ‘Smith’ and ‘Kendall’ to
provide a better methods of
rating employees. It differs
from “ standard ” rating scales in
one central respect, in that it
focuses on employee performance
HR-ACOUNTING & BARS

10. INTRODUCTION OF BARS
( Behaviorally Anchored Rating Scale )
7. Strong
6. Excellent
5. Above Average
4. Average
3. Below Average
2. Poor
1. Unacceptable
BARS Rating Scale
7. Point - 500
6. Point- 400
5. Point- 300
4. Point- 200
3. Point- 100
2. Point- 000
1. Point-(-100 )
Employees
Scoring
Performance
HR-ACOUNTING & BARS

11. IMPORTANT OF BARS
( Behaviorally Anchored Rating Scale )
Important
of BARS
Analysis
Performance of
Working
Understanding
Positions of
Behaviors
Employee
Individuals
Behavior Display
Benefit of
Employee and
Organization
Help to analysis
Salary,
Incentive and
Promotion
HR-ACOUNTING & BARS

12. HR-ACOUNTING & BARS