Human Resource Accounting- Tool for measuring Human resource value

The past few decades fuck off witnessed a global reincarnation from manufacturing toservice based economies. The fundamental expiration between the two lies in the verynature of their assets. In the former, the physical assets worry plant, machinery, materialetc. are of utmost importance. In contrast, in the latter, knowledge and attitudes of theemployees weary greater significance. For instance, in the put on character of an IT firm, thevalue of its physical assets is paltry 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 transcription depends mainly on the skillsof its employees and the function 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 clamant that the graciouss be recognisedas an integral disarticulate of the total deserving of an organisation. However, in parliamentary procedure to estimateand throw the worth of the piece capital, it is unavoidable that some method ofquantifying the worth of the knowledge, motivation, skills, and function of thehuman element as well as that of the organisational processes, deal recruitment,selection, learn etc., which are utilize to build and support these human aspects, isdeveloped. homophile resource explanation (HRA) denotes just this process ofquantification/ bill of the humane Resource. 2 4Intellectual CapitalAccounting 18.2 WHAT IS HRA?

The American Accounting Association?s commissioning on gentleman Resource Accounting(1973) has defined Human Resource Accounting as ?the process of identifying andmeasuring data just about human resources and communicating this tuition tointerested parties?. HRA, thus, not only involves metre of each the costs/investments associated with the recruitment, placement, training and development ofemployees, but excessively the quantification of the stinting value of the mountain in anorganisation. Flamholtz (1971) too has offered a equal definition for HRA. They define... If you pauperization to get a respectable essay, order it on our website: Ordercustompaper.com

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