OBJECTIVE OF HUMAN RESOURCE ACCOUNTING

 

OBJECTIVE OF HUMAN RESOURCE ACCOUNTING


MEANING OF HUMAN RESOURCE ACCOUNTING


Human Resource Accounting is the measurement and reporting of the costs incurred to recruit, hire, train and develop employees and their present value to the organization. HRA'S basic purpose is to facilitate the effective and efficient management of human resources, keeping the cost factor in view.


OBJECTIVE OF HUMAN RESOURCE ACCOUNTING


 According to Prof. Rensis Likert, one of the earliest proponents of Human Resource Accounting, the main objectives of human resource accounting are-


 1. To bring the cost factor of acquiring, developing, allocating and maintaining the human resources, to the notice of top management.


2. To enable the management to effectively monitor the efficient utilization of human resources.


3. To assist in the development of effective management practices by properly assessing the financial consequences of various practices.


4. To provide a determinant of asset control i.e. whether human assets are conserved, depleted or appreciated.



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