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The document is a presentation on human resource accounting submitted by Manoj Chahal. It defines human resource accounting as identifying and measuring data about human resources and communicating this information. It discusses how HRA shows the investment in people and how their value changes over time. The objectives of HRA are to provide cost information about acquiring, developing, and maintaining human resources to meet organizational goals. Some advantages are that it can identify strengths and weaknesses in the workforce and provide feedback on HR policies. Limitations include the difficulty of valuing human assets and potential resistance from employees. There are monetary and non-monetary approaches to measuring human resources.

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Manoj Chahal
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17 views

of HRA

The document is a presentation on human resource accounting submitted by Manoj Chahal. It defines human resource accounting as identifying and measuring data about human resources and communicating this information. It discusses how HRA shows the investment in people and how their value changes over time. The objectives of HRA are to provide cost information about acquiring, developing, and maintaining human resources to meet organizational goals. Some advantages are that it can identify strengths and weaknesses in the workforce and provide feedback on HR policies. Limitations include the difficulty of valuing human assets and potential resistance from employees. There are monetary and non-monetary approaches to measuring human resources.

Uploaded by

Manoj Chahal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Presentation

On

Submitted to: Mrs. Rohini Batra


5/4/2012 Manoj

Prepared by:

Manoj Chahal MBA/10/07

Human Resource Accounting


HRA, shows the investment the organization makes in its people and how the value of these people change over time. It involves measuring the costs incurred by organization to recruit, select, hire, train and develop human assets. It involves measuring the economic value of people within the organization.
5/4/2012 Manoj

Human Resource Accounting


Definition: According to American Association of Accountants(AAA),``HRA is a process of identifying and measuring data about human resources and communicating this information to interested parties.

5/4/2012

Manoj

Objectives: 1. Provide cost value information about acquiring, developing ,allocating and maintaining human resources as to meet organizational goals. 2. Enable management to effectively monitor use of human resources. 3. Find weather human assets are appreciating and depreciating over a period of time.
5/4/2012 Manoj

Advantages: It throws light on the strengths and weakness of the existing workforce in an organization. This in turn, weather to hire people or not. It provides valuable feedback to managers regarding the effectiveness of HR policies and practices. E.g. a high training cost may provide for a change in policy. It helps potential investors to judge a company better on the strength of human assets utilized therein.
5/4/2012 Manoj

Cont

Helps management in taking appropriate decisions about HR in the organization. Helps management in knowing the actual monetary value of the employees.
5/4/2012 Manoj

Limitations: It is not easy to value human assets in the organization HRA is full of measurement problems Employees and unions may not like the idea There is no Imperical evidence to support the idea
5/4/2012 Manoj

Approaches to HRA There are two types of approaches: 1. Monetary measures 2. Non-monetary measures

5/4/2012

Manoj

Monetary measures: 1. Historical cost method(Rensis Likert) 2. Replacement cost method 3. Opportunity cost method(Hekmian & Jones) 4. Economic value method 5. Assets multiplier method 6. Discounted present value of future earnings method Non-monetary measures: Skills, creativity, productivity etc.
5/4/2012 Manoj

5/4/2012

Manoj

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