Human Resource Accounting Methods And Practices In India - Conceptual Framework

Abstract

Human resource accounting (HRA) has very high significance not only for the management, but also for analyst and even for employees. It helps management in better utilization, planning management of human resources in the organization while for analyst, Even today, when a good deal of work has been done in this field, it is very much unfortunate that there is not only set pattern or generally accepted method either for valuation of human resource or for their recording in books of accounts or for the disclosure of information by means of different statements. Human resource is one of the most important back office operations of any organization or business. The skills, creativity and ability of human beings cannot be replaced by machines. No machine can ever come up with a unique advertising idea without the human input. Thus companies must learn to recognize and appreciate the value of their employees. This paper highlights the significance of Human resource valuation and methods to measures human assets value. This paper also describes true costs of planning and recruitment and depicts the limitations of human resource accounting.