Human resource accounting ppt

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