Human Resource Accounting- Tool for measuring Human resource value

The past few decades have witnessed a global conversion from manufacturing toservice based economies. The fundamental difference between the two lies in the verynature of their assets. In the former, the physical assets bid plant, machinery, materialetc. are of utmost importance. In contrast, in the latter, knowledge and attitudes of theemployees assume greater significance. For instance, in the put on character of an IT firm, thevalue of its physical assets is negligible when compared with the value of theknowledge and skills of its personnel. Similarly, in hospitals, schoolman institutions,consulting firms etc., the thorough deserving of the organisation depends mainly on the skillsof its employees and the go they render. Hence, the supremacy of theseorganizations is contingent on the quality of their mankind imaging- its knowledge,skills, competence, need and ground of the organisational culture. Inknowledge ?driven economies therefore, it is imperative that the gra ciouss be recognisedas an integral disjoin of the total worthy of an organisation. However, in parliamentary procedure to estimateand declare oneself the worth of the pitying capital, it is necessary that some method ofquantifying the worth of the knowledge, motivation, skills, and function of thehuman element as well as that of the organisational processes, like recruitment,selection, learn etc., which are used to build and support these human aspects, isdeveloped. homophile resource accounting (HRA) denotes just this process ofquantification/ step of the mankind Resource. 2 4Intellectual CapitalAccounting 18.2 WHAT IS HRA?

The American Accounting Asso! ciation?s commissioning on Human Resource Accounting(1973) has defined Human Resource Accounting as ?the process of identifying andmeasuring data rough human resources and communicating this information tointerested parties?. HRA, thus, not only involves touchstone of each the costs/investments associated with the recruitment, placement, training and development ofemployees, but excessively the quantification of the stinting value of the people in anorganisation. Flamholtz (1971) too has offered a equal definition for HRA. They define... If you want to get a adequate essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay