Human Resource Accounting and Audit

‘’ HRD Audit is a comprehensive evaluation of human resource development encompassing Strategies, systems, practices, structures, competencies, styles and culture and their Appropriateness to achieve the short and long term business goals of the organisation.’’ -DR. T.V. Rao

Human Resource Development Audit

Methodology of HRD Audit

1.Interview Method 2.Questionnaire

Method

4.Workshop Method

3.ObservationMethod

5.Task Forces Method

Importance of

HRD Audit1.Forecasting strategic Business Plans

2.Clarity of Role of HRD Function

3.Organisational Competency analysis

4.Changes in the system of Top management

5.ROI Analysis

6.Strengthening Performance improvement Mechanisms

Human Resource Accounting

‘’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 Jeffrey Gold

Need of HRA

Importance of HRA

-Measuring Problems deriving from the valuation of B/s.-Security versus Flexibility in employment.-Improved Human resource management.-Redistribution of Social Responsibilities.-Inadequacy of Traditional B/s.

To Support Human Resource Development.To Increase employee Participation in HRD Policy.To Standardize measurement of HR Worth.

Methods based on Economic Value of Human Resource

On the Basis of Cost

On the Basis of Value

Historical Cost

Replacement Cost Competitive Bidding Standard Cost

Jaggi and Lau

Economic Value

HRA information disclosed by some of the companies

Name of the organization

HRA introduced in the year Model

BHEL 1973-74 Lev & Schwartz model

SAIL 1983 – 84 Lev & Schwartz model with Some refinements as suggested by Eric.G. Flamholtz& Jaggi and Lev

MMTC 1982 – 83 Lev & Schwartz model

ONGC 1981-82 Lev & Schwartz model

NTPC 1984-85 Lev & Schwartz model

INFOSYS 1995-96 Lev & Schwartz model

2006-07 Lev & Schwartz model

Bibliography

http://thecommercepedia.blogspot.in/2012/05/case-study-on-human-resource-accounting.html http://www.staffoutsourcing.com/outsourcing-services/hr-outsourcing-accounting/ https://www.google.co.in/search?q=examples+of+human+resource+accounting&bih=624&biw= 1366&espv=2&source=lnms&sa=X&ei=pJ-SVKLqLo2zuASBgoGYCQ&ved=0CAUQ_AUoAA&dpr=1

Human Resource Development Book- Tapomoy Deb

Surbhi JindalPGDM1-1416