Hr Accounting Case Study

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Session 1 HR Accounting: Introduction and Overview In our first session we discussed about the layout of our course and a brief about all the components of the evaluation. The first session also included Overview of HR Accounting from a historical perspective and the related future implications. Accounting is an art of recording, classifying, summarizing and interpretation of result. And Human Resource basic function is to provide right man for right job. Human Resource Accounting is the process of identifying and measuring data related to human resource for the development and enhancement of economic values of the interested parties associated with corresponding organization. It is a powerful managerial tool for internal human resource management…show more content…
But in HRA these two are taken as benefit accounts which results in fiscal advantages. The development of HRA has passed through 5 stages: • Stage 1: Derivation of basic HRA concepts(1960-1966) • Stage 2: Basic academic research developing measurement models(1967-1970) • Stage 3: Rapid growth of interest in HRA(1971-1977) • Stage 4: Declining interest in HRA(1978-1980) • Stage 5: Renewed international interest in HRA theory and practice(1981-present) We should also consider the fact that the technology can be adapted and extended to the measure of various types of intellectual property, overall firm valuation and better decision making in buy-sell merge transaction. There are two types of values: Intellectual and Intangible. Intellectual values are further divided into: Human capital, Social Capital and Environment Capital. Challenges of HRA…show more content…
So if value of people increases, so does the performance capacity of the organization and finally its value to clients and other stakeholders • Alignment of human capital policies towards the organization’s shared vision We discussed about the Human Capital Self Assessment Framework which have the below steps: • Strategic Planning: Frame the organization’s mission, vision for the future, core values, goas and objectives, and strategies • Organizational Alignment: Integrate human capital strategies with the agencies core business practices • Leadership: Foster a committed leadership team and have a proper succession planning to maintain the pipeline • Talent: Acquire, Develop and retain skilled employees for meeting the organization’s goal • Performance Culture: Empower and motivate employees while ensuring accountability and fairness in the workshop Human Capital Management is an approach to employee staffing that perceives people as assets(human capital) whose current value can be measured and its future value can be enhanced through investments and providing specific

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