Date post: | 07-Nov-2014 |
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Business |
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Few Questions???What is the value of human resource in the country today??
What is the true position of the human resource in the country or any industry??
UNITED STATES
AUSTRALIA
CHINA
PORTUGAL
ITALYGREECE
CANADA
GERMANY
INDIA
Human Resource Accounting Definition by M.N.Baker: It is an accounting profession
to quantify cost and Value of employee employing in the organization.
It is the process of identifying Investments made by the organization in the Human Resource Assets.
Human Resource Accounting is the process of assigning, budgeting, and reporting the cost of human resources incurred in an organization, including wages and salaries and training expenses.
CONCEPT
INVESTMENT
IN HUMA
N RESOUR
CES
VALUE OF
HUMAN
RESOURCES
Expenditure incurred on creating, increasing and updating human
resources
YIELD GENERATED IN FORM OF HIGHER PRODUCTIVITY AND HIGHER INCOME/PROFIT IN THe ORGANIZATION
BASIC PREMISES
• Valuable resource
• Management
OBJECTIVES
• Decision making
• Efficiency
SIGNIFANCE
• Designing Training Module
• Manpower Planning
• Motivation and Reward of employees
THEORY OF HUMAN RESOURCE ACCOUNTING
Types of Cost
RECAP• Human resource accounting is an attempt to identify
and report investment made in resources of the organization that are not presently accounted for under conventional accounting practice "(woodruff).
• Prof. Sidney Davidson defines human resource accounting as a “term used to describe a variety of proposals that seek to report and emphasize the importance of human resources-Knowledgeable, trained and loyal employees-in a company's earnings process and total assets‟.
Approach• INTRODUCTION COST, TRAINING AND
DEVEOPMENT COST, OPPORTUNITY COST, PROMOTIONAL COST, ETC.
• VALUE OF INVESTMENTS MADE BY THE ORGANIZATION.
HR COST ACCOUNTING
• DIFFERENCE IN PRESENT AND FUTURE EARNINGS OF THE FIRM.
• BASED ON USE OF MODELS LIKE LEV AND SHWARTZ, ETC.HR VALUE
ACCOUNTING
FEW EXAMPLE – Cost Part
Value Part
Based on Lev and Schwartz model
Calculates future value of employees taking into consideration their current earnings
and age factor in mind
QUESTION COMES OF CHECK??
HR AUDIT
AT LAST THE PROCESS,
ESSENCE
EXAMPLE
QUOTE’S
Employees are the most valuable resources of comparison in the services (software, Banking, Management Consultancy, etc) sectors. Like all other resources the company the employees possess value because of providing future services”
THANK YOU