Human Resource Accounting- Tool for measuring Human resource value

The past few decades feature witnessed a global transition from manufacturing toservice based economies. The fundamental discrimination between the two lies in the verynature of their assets. In the former, the physical assets standardized plant, machinery, materialetc. are of utmost importance. In contrast, in the latter, knowledge and attitudes of theemployees pick out greater significance. For instance, in the fictive character of an IT firm, thevalue of its physical assets is minimum when compared with the value of theknowledge and skills of its personnel. Similarly, in hospitals, pedantic institutions,consulting firms etc., the thorough deserving of the face depends mainly on the skillsof its employees and the work they render. Hence, the supremacy of theseorganizations is contingent on the quality of their mankind imaging- its knowledge,skills, competence, pauperism and ground of the organisational culture. Inknowledge ?driven economies therefore, it is arrogant that the graciouss be recognisedas an integral disjoin of the total outlay of an organisation. However, in parliamentary procedure to estimateand mould the worth of the homosexual capital, it is indispensable that some method ofquantifying the worth of the knowledge, motivation, skills, and function of thehuman element as well as that of the organisational processes, give care recruitment,selection, learn etc., which are utilise to build and support these human aspects, isdeveloped. homophile resource report (HRA) denotes just this process ofquantification/ metre of the gracious Resource. 2 4Intellectual CapitalAccounting 18.2 WHAT IS HRA?

The American Accounting Association?s commissioning on world Resource Accounting(1973) has defined Human Resource Accounting as ?the process of identifying andmeasuring data close human resources and communicating this selective information tointerested parties?. HRA, thus, not only involves amount of each the costs/investments associated with the recruitment, placement, fosterage and development ofemployees, but withal the quantification of the stinting value of the stack in anorganisation. Flamholtz (1971) too has offered a equal definition for HRA. They define... If you loss to get a lavish essay, order it on our website: Ordercustompaper.com

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