This document discusses human resource accounting and human resource auditing. It defines human resource accounting as identifying, measuring, and reporting the costs of recruiting, hiring, training, and developing employees, as well as their current economic value to an organization. The objectives of human resource accounting are to determine the return on investment of human resources and ensure proper utilization of human resources. A human resource audit periodically reviews performance and effectiveness of human resource management to identify steps to improve utilization of human resources.

1. “ HUMAN RESOURCE
ACCOUNTING’’
M.B.A 2nd
Sem
Priyansha saxena

2. MEANING OF HUMAN
RESOURCE ACCOUNTING
Human resources accounting may be
defined as the measurement and
reporting of the costs incurred in
recruit , hire ,train & develop
employees and their present
economic value to the organisation.

4. DEFINITION OF HUMAN
RESOURCE ACCOUNTING
‘’ According to the American Accounting
Association ‘’
HRA is the process of identifying
measuring data about resources and
communicating this information to
interested parties

5. OBJECTIVE OF HUMAN
RESOURCE ACCOUNTING
To provide a determination of return
and investment of the human
resources.
It helps to know whether human
resources have been properly utilised
or not.

6. It provides the quantitative information on
human resources to helps managers &
investors in making decision.
it facilitate the effective & efficient
management of human resource by
providing information required to
develop, utilise, evaluate & rewards
human resource.

7. HUMAN RESOURCE COSTS
Costs incurred on locating , selecting
& training employees are the capital
component of investment in human
resources. In human resource
accounting system the costs of
human resources may be classified
as follows :-

8. CONT………
Recruitment costs
Selection costs
Hiring and Placement costs

9. CONT……..
Orientation costs
Training costs
Development costs

10. HUMAN RESOURCE AUDIT

11. HUMAN RESOURCE AUDIT
Every organisation required to
check out the performance of the
employees time to time.
it is periodic review to
measure the effectiveness of human
resources management and to
determine the steps required for
more effective use of human
resources.

12. CONT……
Human resource audit involves a
formal, systematic and in depth
analysis, investigation & comparison.
The primary aim of human
resources audit is to determine
whether the human resource policies
& practices are consistent with
organizational objective.

13. CONT…….
Human resource audit should not
be confused with the measurement of
employee moral. Moral surveys are
only one part of human resource
audit.

14. OBJECTIVE OF HUMAN
RESOURCE AUDIT
To developing, allocating & utilising
human resources in the organization.
To identify shortcomings in the
management of human resources.
To evaluate the human resource
staff.

15. THANK YOU