“ HUMAN RESOURCE ACCOUNTING’’

M.B.A 2nd Sem

Priyansha saxena

MEANING OF HUMAN RESOURCE ACCOUNTING

Human resources accounting may be defined as the measurement and reporting of the costs incurred in recruit , hire ,train & develop employees and their present economic value to the organisation.

DEFINITION OF HUMAN RESOURCE ACCOUNTING

‘’ According to the American Accounting Association ‘’

HRA is the process of identifying measuring data about resources and communicating this information to interested parties

OBJECTIVE OF HUMAN RESOURCE ACCOUNTING

To provide a determination of return and investment of the human resources.

It helps to know whether human resources have been properly utilised or not.

It provides the quantitative information on human resources to helps managers & investors in making decision. it facilitate the effective & efficient management of human resource by providing information required to develop, utilise, evaluate & rewards human resource.

HUMAN RESOURCE COSTS

Costs incurred on locating , selecting & training employees are the capital component of investment in human resources. In human resource accounting system the costs of human resources may be classified as follows :-

CONT………

Recruitment costs

Selection costs

Hiring and Placement costs

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Orientation costs

Training costs

Development costs

HUMAN RESOURCE AUDIT

HUMAN RESOURCE AUDIT

Every organisation required to check out the performance of the employees time to time.

it is periodic review to measure the effectiveness of human resources management and to determine the steps required for more effective use of human resources.

CONT……

Human resource audit involves a formal, systematic and in depth analysis, investigation & comparison.

The primary aim of human resources audit is to determine whether the human resource policies & practices are consistent with organizational objective.

CONT…….

Human resource audit should not be confused with the measurement of employee moral. Moral surveys are only one part of human resource audit.

OBJECTIVE OF HUMAN RESOURCE AUDIT

To developing, allocating & utilising human resources in the organization.

To identify shortcomings in the management of human resources.

To evaluate the human resource staff.

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