Human Resource Accounting (HRA) plays an important role in picking up the overall value of an organization, unfortunately, a majority of the Indian organizations are neglecting this issue. If HRA is also considered as one of the individual valuation elements which deserve more importance and consideration, the value of the organization will be more than what is depicted by the traditional financial statement. What needed is measurement of abilities of all employees in a company, at every level, to produce value from their knowledge and capability. “Human Resource Accounting (HRA) is basically an information system that tells management what changes are occurring overtime to the human resources of the business. Keeping the discussion in mind explain different ways of computing HRA and benefits of HRA.

Human Resource Accounting (HRA) plays an important role in picking up the overall value of an organization, unfortunately, a majority of the Indian organizations are neglecting this issue. If HRA is also considered as one of the individual valuation elements which deserve more importance and consideration, the value of the organization will be more than what is depicted by the traditional financial statement. What needed is measurement of abilities of all employees in a company, at every level, to produce value from their knowledge and capability. “Human Resource Accounting (HRA) is basically an information system that tells management what changes are occurring overtime to the human resources of the business. Keeping the discussion in mind explain different ways of computing HRA and benefits of HRA.

Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter19: Managing Quality And Performance

Section: Chapter Questions

Problem 1EE

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