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Paper: Human Resource Management Lesson: Human Resource Accounting
Author: Ms. Shachi Yadav, Assistant Professor, Ramjas College, Delhi University Reviewer: Prof. Anand Prakash
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Lesson: Human Resource Accounting and HRD Audit
Table of Contents
1: Learning Outcomes 2: Introduction
3: Emergence of the Concept of Human Resource Accounting 4: Methods of Human Resource Accounting
4.1 Methods, Based on Costs 4.2 Methods, Based on Value
5: HRD Audit 6: Areas of HRD Audit
7: Methods of HRD Audit Summary
Glossary
Exercises References
1. Learning Outcomes:
After you have read the lesson, you should be able to:
comprehend the theoretical framework, behind the concept of Human Resource
Accounting;
appreciate the concept of human assets in organizations;
comprehend the development of thought, concerning Human Resource Accounting;
analyse the methods of Human Resource Accounting;
examine the theoretical understanding, behind the concept of HRD Audit;
examine the scope of Human Resource Development audit in an organization;
analyse the methods of Human Resource Development audit;
appreciate the concept of Human Resource Development Score Card.
2. Introduction:
“The most valuable of all capital is that invested in human beings.”
(Alfred Marshall, Principles of Economics)
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The above statement accentuates the fact that human beings have played a key role in
the process of development of civilization.
There are unquestionable abilities in human beings. We, as human beings, are the
contributors to the growth and development of our organizations. Our conscious
endeavours make a difference in the way of organizations‟ working. Organization‟s
success or failure is largely dependent upon the effective and efficient performance of
employees. Human resources, of an organisation, become more valuable in light of the
fact that no other tangible or intangible asset can replace human resources, and these
resources develop and influence the other tangible and non-tangible assets.
Unlike non-living assets, human resources can take their decisions on their own, and
their performance is not predictable. These idiosyncrasies of human resources make
human asset management a challenging job for the organizations.
A generally satisfactory concept is that good management calls for good measurement.
Accounting helps to generate an effective measurement and reporting system for
decision making. It makes sense to measure human assets in order to improve
managerial decision making in organizational contexts.
With the evidence, suggesting the increased share of knowledge based organizations and
services in Gross Domestic Product, it has become important to harness human
resources for organizational value creation.
The importance of developing a process to identify and measure the data, concerning
human resources and its communication to stakeholders, has been emphasized by
committee on Human Resource Accounting of the American Accounting Association.
Value Addition :1 Discussion Forum
Test of Ethics Discuss the ethical relevance and acceptability of valuation of Human assets in the
organization. Develop arguments for and against inclusion of Human assets in the
accounting statement.
3. Emergence of Human Resource Accounting:
Are people measureable assets?
Sprouse and Moonitz have observed that assets represent future economic benefits they
are capable of rendering to the organization, rights to which have been acquired by the
organization as an outcome of some current or past transaction.
Since people are not legally owned by the organizations, the treatment of human
resources, as assets, has been criticized by some authors.
This view may be countered on several grounds. The concern for human valuation is
primarily with the performance of human services, not with humans per se. Now, the
question arises whether employee services qualify as assets. Let‟s give some
consideration to the economic viewpoint, as suggested by American Accounting
Association‟s definition, which says that accounting is primarily concerned with events
and objects that have economic significance and this does not necessarily involve legal
ownership.
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It follows from the above discussion that to be considered as an asset a resource must
have service potential for the future.
The argument can be forwarded on the grounds that the service potential of the
employees is not assured for the future. But that there is no assurance of future benefit
from human resources is equally true of other resources. In the world of uncertainty,
one can never be sure of future benefit from any asset, including physical asset like
machinery , accounts receivable etc. on the basis of the above argument, it can be said
that human resources are as much assets as any other resource.
As noted by Brummet and Flamholtz, measurement of the value of human resources can
assist the management, in recognizing and defining problems, related to people at work.
If the accounting system is made to include the value of firm‟s human resource and its
changes over time, the adjusted figure would give a more realistic measurement of
managerial effectiveness.
Human Resource Accounting can be understood as a tool that can be used to generate
and report quantitative information, about the contribution of human resource, for the
promotion of organizational productivity.
The underlying premises, supporting the concept of Human Resource accounting, are:
a) Human resources are valuable resources of an organization.
b) The ways these resources are managed greatly determine their effectiveness and
efficiency.
c) Information on investment and value of human resources is useful for decision making in
the organization.
“Human Resource Accounting is the process of identifying and measuring data about
human resources and communicating this information to the interested parties.”
- American Accounting Association, 1973
“Human Resource Accounting is the process of developing financial assessments for
people within organization and society and the monitoring of these assessments through
time. It deals with investments in people and with economic results of those
investments.” -R Lee Brummet, Eric G. Flamholtz and William C. Pyle.
“Human Resource Accounting can be defined as the process of identifying, qualifying,
accounting and forecasting the value of human resource in order to facilitate effective
human resource management.” - John Bratton and Jeffery Gold, 20039
Interactive 1
Value Addition :2 Activity
Analysing the Annual Reports of Selected Companies
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Document the corporate reporting practices of select Indian companies, both in private
and public sector, concerning Human Resource Accounting. Gauge the recent trend and
commonly accepted human resource accounting practice in India.
4. Methods of Human Resource Accounting:
We have already discussed that the concept of human value is derived from the concept
of general economic value of all resources. Information, generated from valuation and
accounting of human resources, is a key ingredient of managerial decision making. Over
and above this major objective of internal management, the relevant human resource
data is expected to be useful to other stakeholders, e.g., investors, creditors, financers
and government agencies. Approaches to the methods of measuring the value of human
resources have been developed by a number of authors, keeping the nature and use of
such data in mind.
Figure 1: Methods of Human Resource Accounting
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Methods to account for human resources can be classified into the following categories:
4.1 Methods, Based on Cost:
Figure 2: Methods Based on Cost
Cost may be defined in terms of a sacrifice made, something forgone to acquire a
service, an anticipated benefit or a thing. Benefits or returns from the cost can be
deferred and extended over a period of time. Ever since, the idea of human resources,
as an asset, considering valuation, recognized by the accounting community, is based
on cost to arrive at the value of human resources. On the basis of cost, the following
methods are used for human resource valuation:
Original Cost Method/Historical Cost Method:
The original cost method was developed by Brummet, Pyle and Flamholtz to measure a
firm‟s investment in human resources. Brummet et al., suggested the use of
conventional accounting procedure to determine the value of human assets, based on
the acquisition costs, including the costs of recruitment, development and familiarization.
It is similar to the concept of original cost for other assets.
Under this method, the cost of acquisition, i.e., selection, training are capitalized and
written off over the expected useful tenure of human resources. If the human asset
leaves the organization before the expected period of service, the whole amount, not
written off, is charged against the income of current year.
On a positive note, if the period of service exceeds the expected period, the amortization
of costs is rescheduled accordingly.
Value Addition: 3 Did You Know?
HR Accounting at R G Barry Corporation The original cost model was first developed by William C. Pyle, R. Lee Brummet and Eric
G. Flamholtz in association with the university of Michigan, was implemented in R G
Barry corporation, a leisure footwear manufacturing organization, in 1968, which was
discontinued later.
Source: http://www.rgbarry.com/rgbarry-history/
Replacement Cost Method:
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Replacement cost method was proposed by Eric G. Flamholtz in 1973. Replacement cost
model, as a valuation tool, is used both as an alternative and as a supplement to the
historical cost method. This valuation method involves measurement of the cost, to
replace a firm‟s existing human resources. It can be calculated by mapping the cost to
the firm, to recruit, hire, train and develop human resources, as to replace the existing
employees in terms of proficiency and familiarity with the organization.
Replacement costs can be personal or positional. Personal replacement costs refers to
the cost of replacing an individual with a substitute who is able to render the services,
equivalent to the replaced individual, i.e., same services in the same position. Whereas
positional replacement cost reflects the cost of replacing the set of services, expected to
be provided by an employee, in the present and future positions.
Opportunity Cost Method:
Hekimian & Jones preferred the use of opportunity cost method to arrive at a human
resource valuation. This involves a competitive bidding process, initiated by different
divisions of the organization, for scarce employees.
The bid is based on perceived value of the employee. This model takes care of valuation
of only the scarce employees. The successful bid price becomes part of the investment
base.
Standard Cost Method:
Standard cost method is suggested by David Watson. This method takes the standard
annual costs of recruitment, hiring, training and developing the employees, (per grade),
into account, in an organization. The total standard cost, so arrived for all employees, is
the value of human resources.
Interactive 2
4.2 Methods, Based on Value:
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Figure 3: Methods Based on Value
Value of resources can be understood in terms of its utility and is known as „use value‟.
Value concept can also be interpreted in terms of purchasing power of the resource.
Value is then termed as exchange value.
As it is evident that the value of human resource can be interpreted in the former sense
of „use value‟, i.e., in terms of the future value of the services, rendered by the
employees. The following models use the value approach to determine the human
valuation and are discussed as under:
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Hermanson’s Unpurchased Goodwill Method:
Under this method, it is assumed that the business will earn a normal rate of return on
resources. If a business shows to have any different rate of return than normal returns,
it is assumed that it is an account of human resources.
So, as per Hermanson, the value of human resources is the excess actual profit over the
profit on total physical assets, owned by the organizations, at a normal rate of return.
Hermanson’s Net Adjusted Present Value Method:
This method considers the present value of future wages and salaries, payable to the
employees, and assumes that a relationship exists between a person‟s salary and his
value to the enterprise. This present value of future wage payments needs to be
adjusted with the efficiency factor.
The following steps will be considered, while calculating the value of human resources:
Figure 4: Steps in Hermanson’s Net Adjusted Present Value Method
Interactive 3
Lev and Schwartz‟s present value of future earnings Model
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The model, by Brauch Lev and Schwartz, is advancement over Hermanson‟s adjusted
discount future wages model. The model is recognized as a general economic valuation
model.
“The value of human capital, embodied in a person of age T, is the present value of his
remaining future earnings from employment”. (Eric Flamholtz, 1974)
The model involves:
Figure 5: Lev and Schwartz’s Present Value Model
This model works on the basic assumption that the value of human resource is equal to
the present value of remuneration, payable to him during his service tenure.
𝑣𝑟= 𝐼 𝑡
1+𝑅 𝑡−𝑟𝑇𝑡−𝑇
𝑣𝑟=value of an individual
T= Present age
I (t) = the individuals annual earnings up to the retirement
t= retirement age
R= Discount Rate
Flamholtz’s Stochastic Rewards Valuation Model:
The model, developed by Eric G. Flamholtz, in 1971, considers the possibility of each
employee, working in different positions at different levels. The movement of employees,
from one role to another, within the organization, is stochastic process that is linked to
rewards.
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Under this approach, the human resource value is considered equal to the total of
present value of future rewards, adjusted with the probability of mobility and separation
of each employee. The present value may be determined on the basis of expected
services in each service level or state that the employee may occupy during the service
tenure with the organization.
Jaggi and Lau Method:
Bikki Jaggi and Hon Shian Lau have attempted to improve upon the Flamholtz model, by
introducing the group concept.
In this mode, the employee movement patterns are expressed in terms of probabilities
for group of employees, as suggested by the historical data. This method takes the
duration of employment as well as promotion paths into account.
Value Addition : 4 Case Situation
Designing a HR Accounting System You are recently appointed as a consultant to an ITES organization, as part of your job,
you are required to design a human resource accounting system. Develop:
The objectives of designing a HR accounting system
A note on the method(s) you would use
Recommendations for effective HR accounting. Interactive 4
5. HRD Audit Concept: It is realized that in an increasingly competitive world, the competency of employees and
Human Resource Development (HRD) systems have become more strategic than ever.
While physical assets and other such variables give limited advantage, the human
resources are believed to provide unlimited competitive advantage.
HRD is seen as impacting shareholders value, by influencing a whole gamut of variables,
including customer loyalty, quality improvements, revenues, cost and many others.
In last two decades, HRD has become an inevitable part of organizational growth and
change. A large number of organizations have set up HRD departments, introduced new
systems, and even made structural changes to incorporate HRD function and link it with
the other organizational systems.
Unfortunately, the buzz around HRD, though able to channelize substantial investments,
was not able to realize the full potential and grasp HRD in true spirit.
The concept of HRD audit stems from these lacunae and seems promising, as it enables
checking against some accepted and standardised principles of HRD.
Value Addition: 5 Did You Know?
HRD Audit
Dr. T.V Rao, formerly the professor at IIMA, has extensive work in the field of HRD. He
is the founder president of the National HRD Network. He has authored various books
and articles in the area of HRD.
Source: Visit the link http://www.tvrls.com/video_gallery.php to know more about the
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book 100 manager‟s in action by T.V.Rao
HRD Audit: Despite the potential of contributing for building world class organizations, HRD, in
several organizations, evokes criticism and cynicism. In most organizations, HRD seems
to be a stand-alone activity and there are no apparent linkages between the impact of
HRD interventions and organizational performance. The reason, as it seems, is little
attention to the evaluation of the HRD systems.
Audit is important to the renewal. The aim of audit is to check, evaluate and review. It is
one of the important management control devices.
HRD audit can be understood as a comprehensive process for evaluation of HRD
strategies, structure and systems, styles and skills, in the context of future business
plans and corporate level strategies of the firm.
HRD audit attempts to map the competency requirements of the employees in order to
achieve the long and short term plans of the organization.
“HRD Audit is a comprehensive evaluation of human resource development,
encompassing strategies, systems, practices, structure, competencies, styles and
culture, and their appropriateness to achieve the short and long term business goals of
the organization.”
(Dr. T.V.Rao)
HRD audit is business focussed and evaluates HR strategy structure and systems, and
their relevance, vis a vis, the requirements of the organization.
HRD Audit starts, in an organization, with the following objectives:
To understand future business plans and corporate strategies, and to align HRD with the
overall goals of business.
To aim at building HR function to be more business driven.
To assist the top management to set up corporate strategies.
To support the growth and expansion plans of the business.
To prepare the organization for leadership change.
To investigate the reasons behind low productivity, employee turnover, and improve the
strategies.
HRD audit calls for a comprehensive evaluation of the various components of HRD,
against a set of accepted principles and conceptual framework as well as the current
business environment.
Value Addition : 6 Discussion Forum
Mind Set of a CEO “It is futile to conduct the HRD audit in my organization; nobody would like to spare
time for this unproductive activity. But, Do I have any choice? The overseas clients are
asking for a report on HRD audit? OK, I have instructed VP Human Resources to keep
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ready the papers and made up files. I am fairly confident of my knowledge of the HR
department. It‟s a waste of time and effort to collect information again.”
Mr. XYZ CEO of a manufacturing company holds this view.
Discuss with your peer:
Is the attitude of CEO, regarding HRD audit, Justifiable?
6. Areas of HRD Audit:
HRD audit, as a system, has its own objectives, elements and a process. The foremost
objective of the HRD system is to build the proficiency of employees, teams and the
whole organization, using a variety of instruments.
HRD audit assesses the overall HRD systems and sub systems for their clarity of
objectives, comprehension by the users, structure and implementation, and congruence
with the overall organizational goals.
HRD audit can be conducted in the following areas:
HRD Competencies:
An assessment in this area aims at the evaluation of the competency level of HRD
department as a whole. This covers the mapping competencies of the managers, top
management, union representatives, and the HRD staff.
HRD audit examines the adequacies and inadequacies of the HRD department, and helps
to strengthen the effectiveness of HR.
HRD Structure:
HRD structure deals with elements, like, task structure, tools and equipments,
infrastructural facilities, role relationships, and organizational processes.
HRD audit attempts at evaluating the relevance and efficiency of the structure, in terms
of its contribution to the overall business strategy.
It also highlights the areas, like, competency, current status, flexibility, cost
effectiveness, other strengths and weaknesses.
HRD Styles:
Congruence of HRD styles, with the style of top management, would largely define the
effectiveness of HRD systems. HRD audit may give insights on the effective use of
appropriate styles that are required to run the system or subsystems.
HRD Culture and Values:
HRD audit, in this area, is again a check of congruence of HRD culture and values, with
the culture, desired and values upheld, by the top management. HRD audit seeks to
build uniformity in culture and values of top management, and HRD philosophy, in order
to facilitate the realization of overall organizational goals.
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HRD Impact:
HRD audit aims at measuring the impact of HRD interventions on organizational
outcomes, e.g., profits, cost reduction, and process variables- talent management,
intellectual capital formation, and so on.
The HRD audit aims to quantify the variables that are involved for the purpose of
measurement.
The evaluation is done for all the areas, concerning HRD strategies and systems, HRD
competencies, HRD values and culture, and HRD impact.
The evaluation can be done with the help of an HRD scorecard which is an assessment of
HRD competency level of the organization. For the purpose of an audit, the auditor
assigns ratings to all the areas, contributing to the overall effectiveness, viz., HRD
competencies, HRD structure, HRD culture and values, HRD impact. A comprehensive
score is calculated and an overall HRD maturity grading is provided.
A Sample HRD Scorecard:
Sample HRD Score Card
Name of the organization ABC
HRD System
and Strategies
HRD
Competencies
HRD
Culture and Values
HRD
Impact
Overall
HRD maturity
Grading
A* B B* A A
Value Addition: 7 Activity
Develop an HRD Scorecard Develop an HRD scorecard for the HR function of a chosen organization. Do you think it
is an appropriate procedure to gauge the overall HRD maturity?
7. Methods of HRD Audit:
A wide variety of methods are used in the process of conducting HR audit so as to assess
the strengths and weaknesses of overall HRD system. The following methods can be
adopted to validate HRD audit, individually or as a combination:
Interviews:
Interviews, with the top management, are conducted individually, to get an insight of
the future plans and opportunities available for the company. These interviews can be
scheduled hierarchically from the top management to the line managers, in order to get
a broader picture of the organization.
It pays to structure the interview, in order to obtain relevant information and insight.
Interviews also serve as a platform to obtain first-hand information, regarding the views,
concerns and perceptions of the employees.
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Group Discussions and Workshops:
To obtain information about various aspects of HRD, a large scale interactive process
may be utilized. This is particularly useful when there are apprehensions in the
employees to talk about an issue. If structured well, the relevant information can be
obtained in less time and effort.
Observation:
Auditors visit the workplace, plant, canteens and other welfare amenities, to observe the
employees in their natural environment. Observations can be made, regarding the
supporting environment, with the help of a checklist.
Analysis of Records and Documents:
The analysis of records and documents can give the auditors an insight into the current
state of affairs of the organization. A scrutiny of performance appraisal form, training
reports, employee record files and annual report would help to judge the strength and
weakness of HRD.
Questionnaires:
Valid instruments can be constructed or pre validated questionnaires can be used to get
information, regarding the various aspects of HRD. The gathered data can be used to
benchmark the systems and processes.
Value Addition : 8 Project
Quick HR Audit Checklist Conduct an audit of the HR function, in an organization, to understand the role that HR
plays in that company. Record your findings.
Source: http://www.insureatbyron.com/apga_docs/Sample_HR_Audit_Checklist.pdf
Summary:
Human resources are the key factors that provide competitive advantage to the
organization.
Keeping in mind the growing importance of the human resources, it has become
important to develop a process to measure and record data, concerning human
resources.
The information, about costs and benefits of human resources, is useful for decision
making purposes, in an organization; it also proves to be useful to other stakeholders.
Human Resource Accounting is a tool that is used to generate and record quantitative
information about the contribution of human resource in enhancing organizational overall
performance.
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Human resources are considered to be an asset as they have service potential for the
future.
On the basis of use and nature, various methods have been developed by the theorists,
to measure and record the human resources in financial statements.
Original cost, replacement cost, opportunity cost and standard cost are some of the
methods that are based on costs, which include, cost incurred by an organization to
recruit, hire, train and develop human resources.
Hermanson‟s unpurchased goodwill method, Hermanson‟s net adjusted present value
method, Lev and Schwartz‟s present value of future earnings method, Flamholtz‟s
Stochastic rewards valuation method, and Jaggi and Lau method are some of the
methods based on the economic value of human resources.
Cost is sacrifice made, or something forgone, to acquire an anticipated benefit.
Value of human resources can be understood as the future value of services, rendered
by them.
With the growing importance of human resource in the organization, HRD has become an
inevitable part of large number of organizations.
HRD audit is a comprehensive process and it helps to evaluate various areas of HRD,
against the long and short term goals of the organization.
HRD audit helps at making the HR function more business driven.
HRD audit also supports leadership change, growth, and expansion plan.
HRD competencies, HRD Structure, HRD styles, HRD culture and values, and HRD impact
can be evaluated under the HRD audit of an organization.
HRD scorecard is an assessment of HRD maturity level of an organization.
A wide variety of methods, e.g., interviews, group discussions and workshops,
observation, analysis of organization‟s records and documents, and questionnaires can
be used to get information, regarding various aspects of HRD.
Glossary: Knowledge Based Organizations: An organizational set up that values collection,
dissemination and utilization of new knowledge with a view to innovate and develop
what is known.
Human Capital: The concept that human performance and the results achieved can be
considered as return on investment and can be assessed in terms of cost and benefit.
Competitive advantage: is an advantage over competitors gained by implementing a
value giving strategy not in use by the competitors or an efficient execution of the same
strategy as competitors.
Benchmarking: a form of auditing that helps organizations to map their practices
against those in excellent organizations with a view of improvements in their processes.
Competencies: it is basically underlying characteristics of a person which result in
effective performance within an organizational context.
Validity: A statistical measure of the extent to which a selection or assessment
technique actually measures which it is supposed to measure.
Exercises:
A. Objective Type Questions:
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1. Do as Directed:
a) Match the HR Accounting Methods with the Theorists:
A. Replacement Cost Model 1.Hermanson
B. Opportunity Cost method 2.Lev and Schwartz
C. Un purchased Goodwill Method 3.Eric G. Flamholtz
D. Present Value of Future Earnings Model 4.David Watson
E. Standard Cost Method 5. Hekimian and Jones
b) Choose the Right Answer:
Which of the following methodologies is not a part of HR audit?
A. Questionnaires
B. Videoconferences
C. Group interviews
D. Workshops
c) Fill in the Blanks:
1. A --------------- is the systematic assessment of an organization‟s service excellence.
2. Original cost method is also known as----------------.
d) Give One Word Answer:
1. The world is increasingly acknowledging these as the key factors providing competitive
advantage to the organization. 2. Under this HR accounting method the cost of acquisition i.e., selection, training are
capitalized and written off over the expected useful tenure of human resources.
3. Give the name of the valuation method which involves measurement of the cost to
replace a firm‟s existing human resources.
4. This method of Human Resource Accounting involves a competitive bidding process
initiated by different divisions of the organization for scarce employees.
5. This method of Human Resource Accounting takes into account the standard costs of
recruitment, hiring, training and developing employees per grade in an organization
annually.
6. This method of Human Resource Accounting considers the present value of future wages
and salaries payable to the employees and assumes that a relationship exists between a
person‟s salary and his value to the enterprise. 7. This model works on the basic assumption that the value of human resource is equal to
the present value of remuneration payable to him during his service tenure. 8. Under this approach of Human Resource Accounting, the human resource value is
considered equal to the total of present value of future rewards adjusted with the
probability of mobility and separation of each employee.
9. It can be understood as a comprehensive process for evaluation of HRD strategies,
structure and systems, styles and skills in the context of future business plans and
corporate level strategies of the firm.
10. The concept that human performance and the results achieved can be considered as
return on investment and can be assessed in terms of cost and benefit.
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B. Short Answer Type Questions:
1. What do you mean by Human Resource Accounting?
2. Define Cost.
3. Define Value.
4. How does Human Resource accounting aid managerial Decision making? Explain.
5. Evaluate the original cost method of Human resource accounting critically.
6. What is HRD Audit?
7. What are the benefits of HRD audit?
8. What is HRD Scorecard?
9. Explain the methods of HRD audit briefly.
C. Long Answer Type Questions:
1. What do you mean by Human Resource Accounting? Discuss the arguments, for and
against, considering human resource as assets.
2. What are the objectives of HR accounting? Explain the various methods of HR
accounting.
3. Define and explain the concept of HRD audit. Why is HRD audit important?
4. What is HRD scorecard? Prepare a sample HRD scorecard.
5. Discuss the methodology of HRD audit in detail.
Answers to Objective Type Questions:
Correct answer 1a A.3
B.5
C.1
D.2
E.4
Correct answer 1b B. Video Conferences
c) 1. Human Resource Audit; 2. Historical Cost Method.
d) 1. Human Resources; 2. Cost; 3.Replacement Cost Method;
4. Opportunity Cost Method; 5. Standard Cost Method; 6.Hermanson‟s
Net Adjusted Present Value Method; 7. Lev and Schwartz‟s Present Value of Future
Earnings Model; 8. Flamholtz‟s Stochastic Rewards Valuation Model;
9. HRD Audit; 10. Human Capital.
References:
A. Work Cited:
Brummet R. Lee., Flamholtz, E., and Pyle, William C., Human Resource
Measurement- A Challenge for Accountants, The Accounting Review, American
Accounting Association, U.S.A., April 1968, PP. 217-24
AAA, “Report of the Committee on Human Resource Accounting”, The Accounting
Review, Supplement to Vol. XLVIII(1973), pp.169
R.T.Sprouse and M. Moonitz, A Tentative Set of Board Accounting Principles for
Business Enterprises, Accounting Research Study No. 3, AICPA , New York, !962
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American Accounting Association, A Statement of Basic Accounting Theory, Evanston,
IIlinois, 1966.
Jyothi, P. & Venkatesh, D.N. (2013). Human Resource Management. New Delhi:
Oxford University Press.
Flamholtz, E. (1971), “A Model for human resource valuation: a stochastic process
with service rewards”. The Accounting Review, April. Pp. 253-257.
Jaggi, B., and Lau, S. (1974), “Toward a model for human resource valuation”. The
Accounting Review, April, pp. 321-9
Lev, B. and Schwartz, A. (1971), “On the use of the economic concept of human
capital in financial statements”. The Accounting Review, January, pp. 103-12.
B. Web Links:
Visit the link
http://www.insureatbyron.com/apga_docs/Sample_HR_Audit_Checklist.pdf to obtain
a sample HRD audit questionnaire.
Visit the link http://www.rgbarry.com/rgbarry-history/ to get information about R G
Barry Corporation
C. Video Links:
Visit the link http://www.tvrls.com/video_gallery.php to know more about the book
100 Manager‟s in action by T.V.Rao
Visit the link http://www.youtube.com/watch?v=4iofrDAoQ2w to know five most
important things to measure in HR by Jac Fitz Enz.
Visit the link to http://www.youtube.com/watch?v=H7eDABbJm00 to know more
about ROI for Human Capital - A Business Asset
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