A

SUMMER INTERNSHIP PROJECT REPORT

ON

"HUMAN RESOURCES ACCOUNTING

–STATUS, ISSUES & FUTURE"

SUBMITTED TO:

INSTITUTE CODE: - 705

C.K. SHAH VIJAPURWALA INTITUTE OF MANAGEMENT

UNDER THE GUIDANCE OF:

MS. Dhara Joshi

Assistant professor

PARTIAL REQUIRMENT OF THE AWARD FOR THE

DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Offered By

Gujarat Technological University

AHMEDABAD

SUBMITTED BY:

JINAL SHAH 207050592061

Oct 2021
1
 DICLERATION

I hereby declare that the report for summer internship project entitled "HUMMAN
RESOURCES ACCOUNTING – STATUS, ISSUES & FUTURE is a result of my
own work & my indebtedness to other work publications, references, if any have been
duly acknowledged. if I am found guilty of copying , from any other report or published
information and showing as my original work or extending plagiarism limit, I
understand that I shall be liable and punishable by the university which may include
falling me in examination or any other punishment that university may deem fit.

Enrollment no. Name Signature

Place: …. Date: …….

2
 Certificate of Examiner

This is to certify that project work embodied in this report entitled “A Study of Human
Resources Accounting Status, Issues and Future” was carried out by JINAL SHAH
(207050592061) of C K Shah Vijapurwala Istitute of Management (705).

The report is approved / Not approved.

Comments of External Examiner:

This report is for the partial fulfilment of the requirement of the award degree of Master
of Business Administration offered by Gujarat Technological University.

(Examiner’s sign)

Name of Examiner:

Institute Name:

Institute Code:

Date:

Place:

3
Plagiarism Report

4
INSTITUTE CERTIFICATE:

5
 PREFACE:

Practical project bridges between theoretical knowledge and practical knowledge. In

other words, experience is the best kind of learning that one can do remember for a
lifetime.

The important purpose of the practical knowledge and awareness about the industrial
environment and Business practices as a student complementing the theoretical study
of administration & Management in particular areas. In enhance the skill, abilities and
capacity of the student to perform specialized work in the industrial filed the
environment.

Fortunately, we got golden opportunity, Thanks for both support from institution.

6
 Acknowledgement:

We would like to express our sincere thanks to our partners and good to give us such
strength to study.

teachers of CKSVIM who stood with us for support, encouragement, and guidance with
helped us to understand the scenario in better way and helped to fulfill our objective
successful.

We would like to thank out all the respective faculties to give us good opportunity to
enhance our practical knowledge.

We would also like to thank all my friends who helped us in finding necessary
information and providers their guidance and support to us.

We were also fortunate throughout our project who support guided us every time.

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 TABLE OF CONTENT

SR NO. CONTENT PAGE

NO.
1. Introduction (part 1):

11
1.1 Definition
12
1.2 Historical Cost Approach
13
1.3 Opportunity Cost Approach
14
1.4 Basic premises
15
1.5 Needs
17
1.6 Assumptions
18
1.7 Objectives
18
1.8 Advantages
20
1.9 Limitation
21
1.10 Approaches
23
1.11 Swot Analysis
25
1.12 Present value of future Earning

2. Literature Review (part 2): 26

3 Methodology (part 3):

8
 39

2.1 Methods of HRA 41

2.2 Measurement in HRA 42

2.3 Position of HRA in India

4. Result & discussion: 45

5. Finding, Suggestion & Conclusion: 54

6. Bibliography: 57

7. References: 59

9
INTRODUCTION:

(Part-1)

10
HUMAN RESIURCE ACCOUNTING Success of company undertakings, in today’s
aggressive enterprise world, in large part relies upon the first-class of human

resources. It is accentuated that the Human detail is the maximum vital enter in any
company enterprise. The investments directed to elevate knowledge; talents and
aptitudes of the paintings pressure of the enterprise are the investments in human useful
resource. In this context, it's far profitable to observe and human useful resource
accounting practices in company region worldwide.

Human aid accounting (HRA) is of topical foundation and is suffering for acceptance.
It is truly stated that, Human assets accounting is an accounting size gadget, and a huge
frame of literature has been posted in the final decade putting for the numerous tactics
for size. At the equal time the idea and underlying concepts of accounting size have
obtained beneficial interest from academicians and a big frame of literature has been
developed. Under traditional accounting gadget, human assets aren't diagnosed as
bodily or economic assets.

Back in mid of 1980’s, behavioral scientists criticized the traditional accounting gadget
for its failure to price the human assets of the organization. In this converting attitude
the accountants have been additionally referred to as upon to play them position via
way of means of assigning financial price to the human assets deployed withinside the
organization. Furthermore, the sturdy boom of worldwide economic reporting standards
(IFRS) is any other indication that the surroundings for economic accounting reporting
is one which probably encourages the attention of opportunity size and reporting
standards.

Human Resource Accounting entails the measurement of value incurred with the aid of
using the company for all the personnel function. Hence the project is the way to degree
the financial cost of the humans to the company and various value primarily based
totally measures to be taken for human assets. The most important additives of Human
Resources Accounting have been funding associated with personnel and the cost
generated with the aid of using them. Investment in human capital blanketed all charges
incurred in growing and upgrading the personnel’ talent units and understanding of
human assets. The output that a company generated from human assets become seemed
because the cost of its human assets.

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Human Resources accounting is used to degree the overall performance of all of the
humans withinside the company, and while this becomes made to be had to the
stakeholders withinside the shape of a report, it helped them to take important funding
decisions. All the fashions pressured that human capital become taken into
consideration and funding for destiny earnings, and now no longer expenditure.

1.1 Definition:

“HRA is a process of identifying and measuring facts approximately human assets and
speaking this record to fascinated parties.” In easy term, is an extension of the
accounting ideas of matching charges and sales and of organizing facts to speak
applicable records in economic terms.

“HRA is the dimension and quantification of human organizational inputs including

recruiting enjoy and commitment.”

“HRA is a try to discover and document investments made in human assets of a business
enterprise which are currently now longer accounted for in traditional accounting
practice. Basically, it’s miles an in records machines that tells the control what
modifications over the years are happening to the human assets of the business.”

“HRA useful resource accounting is the time period implemented with the aid of using
the accountancy career to amount the price and cost of personnel to their using
organization.

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1.2 Historical Cost Approach:

The value of recruitment, selection, improvement, are all capitalized and amortized
over the employee’s beneficial life. This amortization may be dealt with in in
accordance with the circumstances.

Benefits: Easy to company conforms with the matching ideas together with the
treatment of diverse steady assets.

Shortcomings: Estimating useful lifestyles time might be difficult; people’s prices are
generally with time however this method gives a declining picture, this method does
now no longer appropriately grade the prices, however as a substitute weak spot it.

The historic cos of human re belongings can be just like the ee-book value of the
possibility assets. When a worker is recruited through a firm, he's hired with the
apparent expectation that the returns from him will approach exceed the price
concerned in selecting, growing and schooling withinside the same way because of the
information the charge of everyday assets is multiplied through making addition to
them. Such extra charged incurred in schooling and growing is likewise capitalized and
are amortized over the closing time life. The unexpired charge is funding in human
assets. This approach is easy to identified and easy to portray out. It meets the
conventional accounting idea of matching price with revenue.

• It takes into consideration part of the personnel acquisition price and

consequently ignores the mixture cost in their capability services.

• It is hard to estimate the range of years over which the capitalized

expenditure is to be amortized.

• It is hard to decide the charge of amortization. Should it’s increasing.

Consistent or reducing one?

13
1.3 Opportunity Cost Approach:

Is primarily based totally on monetary idea which overcomes the deficiency in

alternative value app. Measured thru a aggressive bidding procedure in the entity.

Steps:

1. The entity is split in to funding facilities.

2. The funding centers managers bid for scare personnel they want in the entity.

3. The most bid rate can also additionally be acquired through the capitalization of the
extra income generated through employee.

This approach can artwork for numerous the human beings at shop floor and middle
order management. Moreover, the authors of this approach withinside the route of more
non-obligatory allocation of personnel and a quantitative base for planning. Comparing
and developing human belongings of the firm. But this approach suffers from the
following limitations:

• It has specifically excluded from its preview the employees scare or now now
not being ‘bid’ with the resource of the usage of the opportunity departments. This is
possibly to result in reducing the morale and productivity or the employees who aren’t
blanketed with the resource of the usage of the competitive process.

• The standard valuation of human asset on the competitive bid charged may be
misleading or inaccurate. It may be due to the reason that a person may be an expert for
one department and now not so for the alternative department. He may be precious
character for the department in which he’s running and subsequently command a
immoderate fee but may have a lower fee withinside the bid thru the alternative
department.

14
1.4 Basic Premises:

• Value: People are treasured assets of an organization.

• Usefulness: Usefulness of manpower is decided via way of means of the

manner its miles managed.

• Information: Information on funding and fee of human aid is

beneficially for selection making.

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1.5 Needs:

(1) Non-Availability of information in conventional Accounting:

The want for 70 HRA is felt due to non-availability of data in appreciate of human
sources to the company in traditional accounting. This makes the activity of achieving
longer term goals of the company tough for the managers. People are essential property
for the company who assist in making bodily and economic sources operationally
effective.

(2) No Record of Human Assets:

The bodily sources have recorded fee of property however there's no report to be had
of human property of the business enterprise like human capital which represent crucial
thing as productiveness and profitability of corporations rely upon their contribution.
Accounting does now no longer deal with human capital withinside the identical way
as non-human capital. With the forget about of fee of human capital in accounting
practice, evaluation of the entire fee of the organization isn't possible. That is why want
for human sources accounting is essential.

(3) No Balance Sheet of Human Resources:

The want for HRA is, vital to put together stability sheet of fee of human belongings
with capital belongings in order that the actual really well worth of the corporation get
contemplated withinside the stability sheet of the corporation after which the legitimate
evaluation among the 2 companies may be without difficulty made. This will replicate
real overall performance of the corporation so one can support investor’s hobby
withinside the corporate.

(4) Expenses on Training and Development:

The gift accounting device treats fees incurred on education and improvement of the
personnel and the perimeter advantages provided to them as contemporary price and
written towards contemporary revenue. Blind eye is grew to become off towards the
truth that those fees are the funding made via way of means of the organization on
human capital the advantages of which end result over a time period prolonged past one
year.

16
It is a fashionable feeling amongst managers to reduce down costs on human
improvement ignoring the truth that powerful motivation and excessive morale ensuing
thru those costs can advantage the company immensely in longer term in phrases of
excessive performance, excessive productivity, excessive profitability and excessive
quality. It is for this truth there stand up a want for human assets accounting.

(5) Reflation In Financial statement:

Today’s want is that the fee of human sources has to be said withinside the monetary
statements i.e., stability sheet and income and loss account of the organization. It is crucial to
recognize the control selection on human capital that is feasible thru the mirrored image of
them withinside the monetary statements of the organization.

In the accounting exercise that is accompanied these days the prices incurred on human
sources are charged towards sales of the accounting duration wherein they may be
incurred. But the reality is the blessings of human sources may be prolonged to
numerous accounting intervals now no longer simply one. Accountancy can't justify
this due to uncertainty of tenure of employees. The want of human aid accounting arises
due to the above facts.

17
1.6 Assumption:

Human belongings provide benefits to a company in a fashion just like the way financial
and physically belongings provide benefits.

The blessing associated with every and human belongings have price to the company
because of the data the ones blessing contribute in some Manners to the
accomplishment of the organizational goals.

The acquisition of human property generally consists of a financial fee and the blessing
associated with such property can in my choice be expected to make contributions to
the financial effectiveness. It follows, therefore, that the ones benefits are essentially
financial in nature and are issue to size in financial terms.

Since the standard accounting definition of an belongings consist of the right to get
keep of monetary economic advantages withinside the future, human property is
effectively classified as accounting property.

It is theoretically feasible to understand and diploma human resource charge and

blessing inner an organization.

Information with understand to human useful resource price and benefits wants to be
useful withinside the way of planning, controlling, evaluating and predicting
organizational performance.

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1.7 Objectives:

Provide price cost facts approximately acquisition, development, allocation and

protection of human sources which will reap organizational desires in an powerful
manner.

Enable control of the agency to correctly reveal the usage of human resources.

Ascertain whether human property is conserved, liked, or depreciated for the duration
of a given length of time.

Assist in the development of effective management practices by classifying the

financial consequences of various practices followed by the organization.

1.8 Advantages:

1) Information for manpower making plants:

HRA provides useful information on the price and cost of human resources as
well as strengths and weaknesses. All of this information aids the managers in
formulating plans and making the best human resource decisions. As a result, it
provides useful information for workforce planning and decision making.

2) Information for making employees guidelines:

HRA gives beneficial records for making appropriate employees guidelines

approximately promotion, favorable, running environment, actively pleasure of
employees, etc.

3) Utilization of human resource:

HRA allows the employers to make the high-quality usage of human resources.

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4) Proper placements:

HRA allows the employer to vicinity the proper guy withinside the proper
publish relying on these skills and abilities.

5) Increases morale and motivation:

HRA suggest that the enterprise cares approximately the personnel and their
welfare. This will increase their moral and it motivation them to paintings
difficult and acquire the targets of the enterprise.

6) Attracts first-rate human resources:

Only reputed companies’ behavior HRA. So, equipped and successful humans
need to enroll in those companies. Therefore, it draws the first-rate personnel
and bosses to the enterprise.

7) Designing education and improvement programs:

HRA allows the enterprise to design (make) a appropriate education and

improvement software for its employees and managers.

8) Valuable facts to investors:

HRA affords precious facts to provide and destiny investors. They can use these
facts to choose the fine corporation for making an investment their money.

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1.9 Limitations:

There isn’t proper simple and specific method or tips for finding charge and charge of
human asset of an organization. The shape which is probably being accompanied have
positive drawbacks.

The period of existence of human beneficial aid is uncertain and finally valuing them
below Neath uncertainty in future seems to be unrealistic.

There is a worry that HRA can also additionally dehumanize and control employees.

As human belongings aren’t capable of being owned, retained and utilized, now no
longer just like the physical property, there can be problem for the manage to cope with
them as property withinside the stern sense.

There aren’t specific and smooth lessen recommendations for ‘cost’ and ‘value’ of
human belongings of an organization. The present valuation shape has many
limitations. In spite of all its significance and necessity, tax felony hints do now not
recognize human beings as belongings.

There isn’t universally established approach of human asset valuation.

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1.10 Approaches

Monetary
measure
Economic
Value
Non-monetary
Approaches
measure
Cost

Cost Approach In HRA

•The historic price of human assets is the sacrifice that became made
Historical cost
Approach
to gather and advanced the assets.

•The ancient fee of human sources is the sacrifice that became made to
Opportunity gather and advanced the sources.
cost

•The price that might should be incurred if gift personnel are to be

Replacement replaced.
cost

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 Economic Value Approach

• cost of a person is the prevailing well worth of the carrier that he's
Net value in probably to render pinnacle the company in future.
future earning

• marketplace for exertions is evolved and the cost of the personnel is

decided with the aid of using the managers in opposition to every
Repetitive different for human studies already to be had in the organization.
bidding model the best bidder 'wins' the best resources.

• this method helps in determining what an employee's future

AND value to contribution is worth today.
organization

23
1.11 Swot Analysis:

S W

O T
SWOT (Strength, Weaknesses, Opportunities, and threats) evaluation is a framework
used to assess a company’s aggressive feature and to advanced strategic planning.
SWOT evaluation assesses inner and out of door factors, further to cutting-edge and
destiny potential.

A SWOT evaluation is designed to facilitate a realistic, fact-based, data-pushed study

the energy and weaknesses of a company, initiatives, or inner its industry. The wants to
maintain the evaluation correct with the assets of the useful resource or use of avoiding
off preconceived mind or grey region and as an alternative that specialize in real-
existence contexts.

Companies need to use it as a manual and now no longer always as a prescription

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1. Strengths:

Strengths defined what a enterprise organization excels at and what separates

it from the competition: a examine brand, reliable customer base, a examine
balance sheets, technology, and so on. For example, a hedge fund may
additionally have superior proprietary shopping for and promoting technique
that returns market-beating effects. It must then decide a manner to apply
those effects to attract new investor.

2. Weaknesses:

Weaknesses forestall an enterprise from acting at its most useful level. They are
regions in which the enterprise desire to enhance to stay competitive: a
susceptible brand, higher-than-common turnover, excessive degree of debt, an
insufficient deliver chain, or loss of capital.

3. Opportunities:

Opportunities talk to favorable outside elements that might provide a

corporation an aggressive advantage. For example, if a rustic cut traffics, a
vehicle producer can export its vehicle into a brand-new marketplace, growing
income and marketplace share.

4. Threats:

Threats talk to elements which have the capability to damage an organization.

For example, a drought is a danger to a wheat generating company, as it can
damage or lessen the crop yield. Other not unusual place threats encompass such
things as growing fees for materials, growing competition, tight exertions
supply. And so on.

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1.12 Present value of future earning:

Lev and Schwartz (1971) proposed a financial valuation of personnel primarily

based totally on the existing price of destiny profits, adjusted for the chance of
personnel death/ se parathion/ retirement.

This technique enables in figuring out what an employee’s destiny contribution is

really

According to this model, the price of human capital embodied in someone who is
‘y’ years antique, is the existing price of his/her destiny profits from employment
and may be calculated with the aid of using the use of the subsequent formula:

E(Vy) = ∑ Py (t+1) ∑I(T) / (I+R) t-y

T=YY

Where E(Vy) = expected value of a ‘Y’ year old person’s human capital

T = the person’s retirement age py

(t) = probability of the person leaving the organization

I(t) = expected earning of the person in period I

r = discount rate

"ONE ASSET IS AMITTED & ITS WORTH

I WANT TO KNOW,

THAT ASSET IS THE VALUE OF MEN

WHO RUN THE SHOW”

26
Literature Review:

(Part-2)

27
Osemeke monday, 2017, The consciousness of their paper is on Human Resource
Accounting which has now no longer been nicely included into the economic
announcement of diverse companies and being appeared as belongings. The principal
cause of this observe is to study the troubles concerned in valuing human
resources/human beings operating in companies, which has been appeared because the
maximum treasured belongings in commercial enterprise companies, the blessing of
attaching value and the demanding situations and boundaries of enforcing the Human
Resource accounting disclosures of such value within side the firm’s announcement of
economic position. In the pursuit of the focal point of this observe the paper adopts
exploratory and content material evaluation techniques of secondary data. The paper
exhibits that the exponent of human sources valuation fashions in maximum instances
have now no longer handled the mode of recording and disclosure of the accounting
data regarding human sources within side the book of account or economic statement
of the organization.

In maximum cases, the human aid accounting facts is given within side the shape of
supplementary facts connected to the economic statement. This is of exceptional
situation to accounting experts and practitioners. The paper concludes that significant
studies carried out is because of the growing significance of human capital within side
the economic system to broaden the ideas and strategies of valuing human aid that has
been identified as human assets accounting (HRA), and that there may be a exceptional
want for evolving a machine of accounting for human aid this is suited to expert
accountants, managers and different selection makers-investors, creditors and other
stakeholders.

Sirous korahi Moghadam, Erisa kamali, Davood Kalantarian,2017, Hunan

Resources Accounting (HRA) may be called a compilation from domain names of
accounting and Human Resources (HR) and consists of software of accounting
principles and techniques in the scope of Human Resources Accounting qualifying the
cost of the sources has triggered the merchandising of Human Resource Management
performance and advent of centers for assessment of personnel policy. Important human
assets selections inclusive of employment, recruitment, education, earnings and
benefits. Performance and different instances frequently in darkness without life of

28
essential statistics approximately the fees and pastimes are made. One of the most
important goals of Human resources Accounting (HRA), is the utility growth of
legitimate and confidence worth strategies for Human assets cost within side the
organization.

The goal of this studies is Appropriate model selecting of Human Resource Accounting
(HRA) in Po yuan sazeh company. The statistical society of this studies is 450 people
who encompass all managers and deputies and employees whom for sampling (Cochran
formula) some of 212 people have been selected. This study is an carried out look at
who’s from of approach is descriptive survey. Research consequences are indicator that
concerning the records of responders several the three fashions of Human Resources
Accounting (HRA) (Cost rate version, alternative cost version and Flame Holtz version)
has received the best average. i.e., Within side the responder’s factor of view, they have
got model with the situation of pouyan sazeh company greater than the alternative
fashions. Flame Holtz version has been located within side the closing rank, i.e., it the
closing last model with the poyushan sazwh company status.

Afolabi samiat Oluwatoyin 2014 The fee of human belongings has effect in all crucial
commercial enterprise choices and the way it's far used at once influences the capacity
of the organizational belongings to recognize their fee. This paper evaluation the
concept and studies in human assets accounting, evaluation of human assets accounting.
The paper additionally seeks to talk about the recording and disclosure in economic
statement, targets of human assets accounting and the want of human assets accounting
within side the organization. The look at additionally famous impediment in opposition
to human assets accounting and situation that ought to be gift earlier than adopting to
human assets accounting in the organization.

It turned into encouraged different matters that in place of maintaining unto imperfect
convention, accounting is anticipated to extrude to satisfy the perfections delivered with
the aid of using the brand-new ideas-human useful resources accounting and valuation
due to the fact maximum businesses, control selections aren't primarily based totally on
traditional accounting regulations or posted statutory reports, however on tailor made
control accounting data systems. It is right here that the accounting for human sources
ought to be.

29
Mo Ri Gen Ba the Er. 2009, Human sources accounting is a brand-new critical
department filled of accounting. It is an final results of market place economy. This
paper first elaborates the necessity, then places ahead. The belief of sitting up human
sources accounting in China such as the principles, the setup of web website hosting
accounting and the document of human sources accounting. At last, this paper elaborate
the utility of human sources accounting in Chinese business enterprise control and the
writer places ahead his options within sites the elements of workers turn overs, wages,
the character of human sources department and its position as well.

David G Bowers, Alan S Davenport, 1978 This file discusses theoretical troubles
and methodological worries referring to the implementation of a Current value
Approach to Human Resources Accounting. The subjects offered encompass reliability,
validity of predictors and criterion, limits on variance to be had for prediction,
transformation of data, non-greenback metrics, unit of evaluation and subsetting of
organizational members, consistency of predictor-criterion relationships throughout
time and function, multicollinearity quantity of predictors variables, and styles of
change. Suggestion for answers to implementation issues are given, as are tips for extra
regions of research into theoretical and utilization issues.

Thomas Arkin 2016, The international transaction from production to provider

primarily based totally economies and later to understanding primarily based totally
economies implies a extra awareness on worker assets due to worldwide ability
shortage, and extra complicated inner organization expertise that is probably misplaced
need to an worker go away the company. Acknowledged through economists because
the maximum crucial useful resources as it controls and directs the alternative assets,
human beings inside an employer without delay influence the fulfillment or failure of
that employers. As an end result of its significance, a unique hobby in Human
Resources Accounting has advanced where in many fashions and strategies were
proposed for valuing human resources more broadly.

30
Despite strong studies there says a lot of debate as to whether human useful resources
have to be blanked or excluded within side the monetary announcement. Historically,
accounting has now no longer diagnosed human sources as an asset within side the
announcement of monetary position, due to a dearth of ideal metrics relevant to human
beings below employment, and additionally because of a loss of appropriate fashions
used in attributing a fee to a human useful resource. Clearly, a understanding hole of
this nature increases questions for accounting practices where in human capital is the
famous. Human useful resources accounting has the capacity to offer an opportunity
answer useful to control decision-making specifically concerning the adequacy of
human sources while considered inside s monetary fitness framework.

To date however, there exists a want to in addition set up a reputable platform for human
useful resources accounting, specifically thru the fulfillment of study qualitative studies
results. As such this text analyses in addition the opportunity of consisting of human
sources within side the definition of assets, defines kinds of expenditure required in
monetary statements and proposes the kind of disclosure vital for a presentation of
human useful resources assets. Specifically, this text additionally proposes a valuation
version that overcomes the restrictions of preceding models and consists of calculation
appreciate for inclusion within side the assertion of monetary position. An introduced
final result of this text is a greater described idea of Human Resources Accounting as a
subset of popular accounting visible inside international financial Reporting Standards
(IFRS) and relevant to the 2015 monetary reporting IAS 38.

Fariborz Avazzadehfat, H raiashekar 2011, Skillful and specialized human assets are
of essential significance for an organization much like its bodily houses and investment.
Managers of the corporation spend several cash for education and teaching their
employees and personnel which will boom the performance of the organization below
their control, however human assets accounting device which ought to be used for
human assets data processing have now no longer been used nearly with the aid of using
any organization in Iran. This paper explores firstly whether funding choices are
stricken by human useful resources accounting data disclosed within side the economic
statements or now longer? Secondly it explores as to what elements can intervene on
this effect. Thirdly it examines which assessment approach of human useful resources

31
is the maximum suitable approach steal with Iranian corporation in phrases of
qualitative traits of accounting data?

The effects suggest that human aid accounting (HRA) records disclosure in economic
statements is applicable and influence at the ideal funding decisions. Furthermore,
different effects kingdom that the handiest and suitable comparing technique of human
aid steady with contemporary fame of Iranian organizations and establishment is the
authentic value technique (Historical value).

Nour elhouda HADDAD,Today, businesses understand thoroughly that the number

one aspect which offers them a sustainable aggressive gain are their workers. However,
its economic reporting continually without any statistics regarding human sources
within side the project, which brought about the growth of studies and discussion
approximately what has been termed “human sources accounting.” the purpose of this
looks at is to shed mild at the accounting of human sources. Thus, we discovered that
the traits of the belongings practice closely on human sources, and its inclusion within
side the accounting disclosures depends on the informational size of economic reports.
But this aid is characterized with the aid of using the problem of measuring and
supplying dependable facts approximately it, that is a main impediment to making use
of the human sources accounting, which calls for greater in-depth research on this area.

Particia A Pecorella, David G Bowers, analyses preparatory to construction of a

suitable record for producing a machine of destiny overall performance Trena indicator.
Are described, such a machine falls into the classes of a present-day cost approach to
human sources accounting. It calls for that there be a significant body of statistics
which: (1) make use of the painting’s institution or unit, not the individual, because the
evaluation units, (2) incorporate standards, measures of the human corporation and
dollar, convertible overall performance measured. boothite excessive inner consistency;
and (3) show an excessive frequency oc4 statistically sizable relationship of human
corporation rot overall performance measure.

Rot overall performance measures. This report presents analyses whose characteristic
is to construct a fact file-with those characteristics. Internal consistency reliability of

32
north human organization (survey) facts and overall performance (overpack variable
price and absenteeism rate) are proven to be high, and a sample of human, organization
to overall performance deficient effects which is eminently usable, it constructs four
which to take the following steps: multiple regression, ilia lag and significance
estimation, and price attribution.

WAVNG Min-Hua 2007, Accounting is facing a deeply revaluation that modification

from corporality to humanism, and the human sources accounting emerges because the
instances required. First, the item argues that it's miles vital to locate our local human
sources accounting. Then it makes a few arguments for the human sources accounting
conforming and qualifying, and research into the accounting and the reporting of human
sources accounting. At final the item describes human sources accounting appearing in
our civil business enterprise management.

Vineet Chouhan, Nader Nageshbandi 2015, Human Resources (HR) is maximum

crucial, very vital and touchy issue used as an enter for production. This issue changed
into left out in advance for accounting functions because of the provision of extra and
unorganized manpower and comparatively low cost. But after liberalization of Indian
economy (in 1991) the significance of human sources had been recognized. Although
a bit hobby has been proven with the aid of using expert accountancy bodies, like ICAI,
ICSI and ICMAI on Human Resources accounting (HRA) in Indian the significance is
now given on HRA with disclosing Human Resources Value of their posted annual
reports.

Similarly, the alternative personal agencies also are disclosing the HR values of their
monetary statement. This paper seeks to give short description of concept of HRA,
examine the disclosure in five most important agencies in India. The observe
additionally analyses the distinction among the HRV, and to set up the connection
among profitability and HRV with different predictor value like Net Worth, sales and
EPS. By the usage of ANOVA, Tukey put up Hoc test and more than one regression it
turned in to locate the HRV and sales are the Predictor of profitability in decided on
agencies in India.

33
Yahya Mohammed AI-asri, Human assets are of very crucial for any a company.
Without Human assets not anything it'll be accomplished each company want to human
being, and groups spend quite a few cash for schooling and education attracting their
personnel and employee’s which will growth the performance of the company.
Therefore, personnel are the maximum crucial property of an company or an company
and its fulfillment or failure relies upon on their qualifications and performance. Human
useful resources accounting is a right of way a part of the social accounting and targets
to offer statistics at the assessment of one of the maximum crucial additives of the
company, specifically human capital. Human useful resource accounting is a right way
a part of the social accounting and targets to offers statistics at the assessment of one of
the maximum crucial additives of the company, specifically human capital. Human
useful resources for this reason calls for the essential interest which will reap company
targets a company. This paper investigates the significance of software of human useful
resources accounting in an company and blessing of its software.

DINESH K GUPTA, SUBHASH KUMAR 1986, The technological know-how of

accounting is within side the technique of evaluation. New dimensions are being
introduced to the horizon of accounting, that allows you to justify its twin function of
attention directing and hassle solving. One such measurement is Human Resources
Accounting (HRA) which evaluates the significance of human being in an organization
and for that reason results in development within side the manner they're managed. The
idea of HRA has remained a topic of warm dialogue for pretty an awesome time, while
all of a surprising the idea began out waning from the insurance of journals. The concept
(HRA) which evaluates the significance of human beings in an business enterprise and
therefore results in development within side the manner they may be managed. The idea
now appears to had been wound hobby on this vicinity the idea maintains to maintain
its importance and guarantees wealthy ability dividends.

34
Akinwunmi Aboidun jeil, Ayooluwa Eunic Oloth, Sunday Olusola Omojola 2014,
In contemporary technology of technological change, human sources are an increasing
number of critical components of a company's general wealth and have to additionally
be recorded as an assets in monetary statements beneath Neath the pinnacle of constant
assets. There are foremost motives for popularity of human capital as an asset, first
human sources are a treasured useful resources for a corporation to preserve a long-
time period aggressive advantage; so long as personnel render offering for company,
destiny monetary advantages float in the direction of company from the funding made
on human sources, Secondly, the price of human sources is primarily based totally at
the knowledge, competencies and abilities advanced within side the company thru
funding. The aim of the study is therefore to understand the need for and importance of
human resources in the context of optimal financial information and also to provide
suggestion for the development of such accounting practices in our corporate
environment. Previously completed literature in the field of payroll accounting. The
results of our study show that majority option among accounting academics in the
reviewed articles supports the belief that human capital should be included on the
balance sheet.

These evaluations get up from the perception that capitalizing human assets within side
the ascertain of economic role will allow buyers to make well timed and green financial
decisions. This could cause optimality and possibilities to expose the authentic price of
a company's assets.

ZHU Zheng-hui 2006, Paying interest to human assets ought to be provided in

accounting reviews in new economic system times. Scarcity of human assets
determines that proprietors of human assets have residual claims on human assets
determines that proprietors of human assets have residual claims on human assets. With
the accounting precept Human assets accounts calculates cost or value of attain
improvement and demission, set debts and display accounting information.

Ari Santi Dwi Irawati 2021, The concept of Human Resource (HR) size and reporting
has evolved over the past 4 centuries. The monetary principle and idea of Human

35
Resource Accounting (HRA) were debated with the aid of using accountants. HR is a
company's maximum critical assets, however, there aren't any formal policies to
recognize, degree and document it in monetary reports. This observe used literature
within side the shape of secondary statistics including documents, magazine articles.
Descriptive and content material evaluation procedure had been used to acquire and
clear out HRA information, the researchers checked out the contribution and
controversy of the idea, the application, the improvement of HRA, and the techniques
for every stage.

The valuation strategies had been categorized in line with the size type, after which the
energy and weaknesses of every technique had been analyzed Basically, the life of HRA
reporting will growth the best of monetary facts for decision-makers. It suggests
company duty to outside parties. Lev and Schwartz's version changed into a Human
Assets Valuation technique that has been normally implemented in India. However, in
a few industries, one-of-a-kind international location put in force HRA differently, as
an example the soccer enterprise in England, the artist control enterprise in South
Korea, the monetary enterprise in Sweden and the running enterprise in Indonesia, HRA
is carried effective on disclosures in a sustainability report.

M Dierkes, R Coppock 2017, This bankruptcy specializes in human assets device in

tracking manpower usage in a enterprise environment. The preliminary cognizance of
human useful resources accounting has been to be device investments in human
competencies and broaden suitable accounting procedures. Human assets accounting is
one in all a developing variety of strategies that could help within side the popularity
and practical usage of human assets in contemporary organizations. It within side the
organization's self- hobby to do so.

The bankruptcy discusses 3 techniques which have been taken into consideration in
treating managerial organizational assets: Outlay charges, alternative charges and
monetary value. Accidents and ailments detract from the general performance of the
agency through getting rid pf or impairing personnel and through inflicting direct
charges in phrases of rehabilitation and clinical expenses. Employing business

36
more and more except the duty for the training in their personnel, each in phrases of
formal training and extra precise education and updating.

37
METHODOLOGY:

38
HUMAN RESOURCE ACCOUNTING (HRA) is the system of finding out and
reporting investments made inside facts the traditional accounting practice. It’s far an
extension of styling accounting principles. measuring the value of the human
belongings can enables businesses in successfully documenting their belongings ducted
words, human resource accounting is a system of measuring the price incurred through
the agency to recruit, select, train and expand human assets.

The human beneficial aid gadget has become installation to fulfill a number of dreams
inside facet the organization. These include:

To offer price costs data fir making proper and effectively manage preference about
acquiring, allocating, developing, and maintaining human property an amazing manner
to collect price effective organizational goal.

To show efficiently using human property with the useful resources the use of the
manipulate.

To have an assessment of the Human Asset, Le. whether or not or now no longer such
property is conserved. depleted, or appreciated.

To sources inside aspect the development of manipulate well known and proper desire
making for the future, via way of means classifying the economic effects of diver’s
practices.

The reason of the prevailing studies is to do the comparative examine of the chosen
corporation in India to discover the reputation of HRA reporting practices of India
groups. In the prevailing examine, the purposive sampling approaches has been used
for the choice of the groups. Two groups from public quarter and from non-public
quarter are decided on for the reason of examine. The choice of the above corporation
is influenced with aid of using their favorable reaction and consultant nature of the
chosen groups in respective industries in addition to the Indian economy. These groups
are currently valuing their human assets and displaying their fee of their annual reviews.
Most of the secondary statistics wished is accrued from the posted annual review of the
chosen groups.

39
He annual reviews of the decided to organizations have been scanned for the duration
starting from 2006-07 to 2010-11 to discover the HRA gadget of those corporation. To
rank the corporation on the premise of the records disclosed through those organizations
of their annual reviews sure variables have been furnished to chose corporations.
Disclosure of those variables associated with the human assets will assist the primarily
based totally on those variables.

The following companies are selected for the purpose of this study.

● Cement Corporation of India (CCI)

● Hindustan Petroleum Corporation Limited (HPCL)

● Infosys Technologies Limited.

● Rolt India Limited.

2.1 Methods of HRA:

Approaches to human beneficial assets accounting had been first developed in 1691.
The subsequent method became evolved from 1691 to 1960, and the 0.33 segment
became post 1960.

There are the strategic of HRA. Beneath Neath the rate technique, more over called the
"human useful resource price accounting method" or imaginative and prescient there is
an acquisition rate model and an alternative rate imaginative and prescient, beneath
Neath the price technique, there is present price of future earning technique, a lessen
future income model and a competitive bidding model.

Considering the specialist and cons of several models, Chennai-based completely CA

Lakshminarayanan Ramanujam has worked out a clean to use and smoot to adopt,
unique model titled Give GET, for the Human Resources Valuation and Accounting, at
the same time as accounting for PECE.

40
Expense model:

According to Mirvis and Mac (1976), this model specialization in attaching dollar
estimates to the conduct outcomes produced with the useful resource of the use of
running in an organization. Criteria which encompass absenteeism, turnover, and
system common overall performance are measured the use of traditional organizational
tool, after are anticipated for each criterion. for example, in costing exertion turnover,
dollar figures are related to separation fees, opportunity fees, and training fees.

Models of HRA:

This version prescribes the human useful resources accounting method for classes of
employees:

• Employees who're at strategic, key selection making position inclusive

of MD, CEO

• Employees who execute the selection taken through Top Executives

(Vice President, Directors)

• Model arrives fee of human assets because the sum of below noted 3
parts:

1. Real capital price part

2. Present fee of destiny salary/ wages payments

3. Performance evaluation part

41
2.2 Measurement in HRA:

Cost based approaches

• Historical cost:

This approach was developed by William c. pile, that is primarily based totally
at the idea that there is sure value incurred by the organization with reference to
human resources. Cost is a sacrifice factor incurred to reap a few predicted
advantages or services.

• Replacement cost:

This approach was first opined with the aid of using Rensis Likert and was
developed by Eric G. Flamholth. Human sources are to be fee of the idea that a
brand-new comparable company needs to be constructed from reduce to the
organization if the present sources had been required to get replaced with
different individual of equal capabilities and experience.

• Opportunity cost:

This technique evaluation the opportunity incomes supply from the efficient
potential of human resources by putting some alternative use. Opportunity value
is the fee of an asset (HR) when there may be an opportunity use of it. The angel
adjustment of possibilities value are declined for the one person that aren't
scarce.

• Standard cost

This method is primarily based totally on the road and body of worker in
addition to practical courting of personnel in an organization the personnel of
an organization are classes and divided in special agencies with hierarchical
range of positions, widespread fees is constant for every classis employee’s
and their profitable position can be calculated. Due to several the record role
of personnel attributable to their fame and role, it does now longer take any
distinction of them placed withinside the equal group.

42
 Monetary value-based approaches

• The Lev and Schwartz model (present value of future earning Method)

• The Eric Flamholtz model (Reward Valuation Method)

• Morse model (Net benefit Model)

Non- monetary value-based approaches

• The Flamholtz Model

• Ogan Model (Certainty Equivalent Net Benefit Model)

• Likert Model

2.2 Position of HRA in India:

Though Human Resources Accounting have turn out to be brought manner decrease
returned inner factor the 1980s, if commenced gaining reputation in India after it have
turn out to be found and popularized with the assets of use of NLC. Even alevin aleven
though the state of affairs prevails, however a developing fashion closer to the
dimensions and reporting of human property in particular in public location is essential
withinside the closure of the past few years. BHEL, current employer of India, ONGC,
engineers India Ltd., National Thermal Corporation, Minerals and metals Trending
Corporation, Madras Refineries, oil India Ltd. Associated Cement Companies, SPIC,
metallurgical and engineering professional India Ltd., Cochin Refineries Ltd., etc. are
some of the groups which have started disclosing some valuable facts regarding human
asset in their financial statements. It is vain to mention proper right here that, the
importance of human asset in agency corporation as green belongings have become
with the resource of the utilization and large ignored.

43
 ▪ Social Accounting; -

social accounting can be described as identity and recording of enterprise sports and
social duties.

1. social duties idea is one of the critical ideas of management.

2. it's miles the obligation of company to be a little social to finishing their social
duties.

3. social accounting may be very critical device to measure the overall performance of
any organization in a view of social duties.

4. Agency must make the social duties earnings announcement and stability sheet. But
it isn't always obligatory to make those announcements.

5 France, UK, and USA are the top international locations in which social duty
statements are made with one-of-a-kind economic statements. In India social
accounting isn't so well-known but some India commercial enterprise are specialization
duty and moreover started out to make social report for calculating to standard charge
and benefits for acting social duty.

Objectives of social Accounting:

Main goal of social accounting is to assist society with the aid of using supplying
distinct centers with the aid of using employer and to document them. We can write
them in following points.

A) Effective utilization of natural resources:

Main targets of creating social accounting is to decide whether or not organization is

well make use of their herbal assets or not.

44
B) Help to Employees:

Company can assist personnel through offering the ability of schooling to youngsters
of personnel, offering delivery freed from fee and additionally offering true running
surroundings conditions.

C) Help to society:

Because companies’ factories unfold the pollutant in herbal society which may be very
dangerous for society. So, company can assist to society through planting the trees.
Setting up new parks close to manufacturing unit area, and additionally commencing
new hospitals.

D) Help to customers.

In social accounting this a part of blessings given with the aid of using enterprise to
society, if enterprise offers items to clients at decrease price and with excessive quality.

E) Help to investors:

Company can assist to traders via way of means of imparting obvious accounting
records to traders. Because of many targets are associated with safeguarding of herbal
sources so this accounting is likewise referred to as social and environmental
Accounting, Corporate, Social Reporting, Corporate Social Responsibility Reporting,
Non-financial Reporting, Sustainability Accounting.

45
Results and Discussion:

46
1) Human Resource Accounting systems of cement Corporation of
India: -

Cement company of India Limited turn out to be covered as an organization completely

owned with the useful resource of the usage of Government of India on 18th Jan 1965.
it has become installation with the Goal to gain a pioneering and primary function inside
aspect the exploration of cement grand limestone reserve and to turn out to be a
dominant leader inside aspect the producing of cement inside aspect the country. CCI
branded human reasserts as 'Mother Resources' via which exclusive scarce reasserts
VIZ., machines, material, coins are organized, coordinated, directed, and controlled.
CCI made a attempt to fee. Its human reasserts with the useful resource of the usage of
going for walks out the prevailing fee of anticipated future income thinking about the
prevailing pay scale and vending regulations being followed. The computation has been
based totally definitely on the hints and thoughts enunciated inside aspect the financial
models advanced with the useful resource of the usage of Lev & Schwartz, Eric Flam
Holtz and Jaggy and Lau with suitable modifications.

2) Human Resources Accounting System of HPCL: -

Hindustan Petroleum Corporation Limited, a fortune 500 employers are, one of the
number one blanketed oil refining and marketing and marketing employers in India. It
is a Mega Public Sector Understanding (PSU) with nirvana status. HPCL uses Lev &
Schwartz model for the reason of computation of charge of human resources. The
business enterprise considers all direct and indirect benefits given to employees as a
basis for valuation of Human Resources.

47
3)Human Resource Accounting System of Infosys: -

Infosys is a first-rate statistics technology agency that modified into blanketed in 1981
as an Infosys Consultants Private confined. In 1992, the agency modified into converted
right into a public confined agency. In the three hundred and sixty-five days a 1995-96,
it has emerged as the number one software program software agency to price its human
reasserts in India Lev and Schwartz model has been used for the reason of valuation of
human reasserts of the organization. It considers all direct and indirect blessings earned
every in India and distant places for the valuation reason. The incremental earnings
based totally mostly on age and organization are taken into consideration. Balance sheet
with intangibles is also disclosed thru the agency in its reports.

4)Human Resource Accounting system of Rolta India: -

It is a multinational software program software development and services employers,

installation in 1939. The economic approach model i.e., Lev & Schwartz model is the
feature of calculation of human reasserts of the company. The company considers all
direct and indirect blessings earned through manner of approach of employees as a basis
for calculation. Average increment is based totally completely on the increment paid
sooner or later of closing three years. Retirement age is taken as in keeping with
employers’ policy. Based on the ones assumption human assets value have become
calculated considering amazing savings for amazing years to attain the winning value
of future earnings.

5)Comparative study of HRA system of selected companies: -

In table, an try has been made to reveal the diverse issue taken into consideration for
valuation with the aid of using those corporations for 2010-11. from the table it's miles
smooth that everybody the companies are using Lev and Schwartz model for valuation
except Cement Corporation of India limited, CCI used the Lev & Schwartz, flam Holtz,
jade Lau model with appropriate adjustment as suitable for the agency to triumph over
the constraint of Lev & Schwartz model in India, the companies used Lev and Schwartz
model for valuation of human reassets alevin aleven though this model has its
employees limitations, bargain expenses used by the corporations to value human
reassets is to be absorb to attention for the reason of assessment of recognition of human
reassets of diverse companies. CCI did now no longer expose the bargaining similarly

48
to conventional for good buy expenses. All the corporations Disclosed the determinants
of earnings except CCI .in desk human resource value and kind of employees of
various, all decided on groups are disclosed during five years.

49
 Table: - various aspects considered for valuation.

Organization CCI HPCL Infosys Rolt

Year of 1979-80 1981-82 1995-96 2002

introducing
HRA

Title used of “Our Human Human Human

HRA Employees-Our Resources Resource Resource
Information Greatest Accounting Valuation Valuation
Assets”

Model used for Lev & Schwartz Lev and Lev and Lev and
Valuation (1971), schwartz (1971) schwartz (1971) schwartz (1971)
Flamholtaz(197
4), jaggi &
Lau(1974), with
appropriate
modifications

Discount rate Not Reported 8.25% 11.21% 9.68%

per annum

Criteria for Not Reported Not Reported Cost of Capital Weight average
discount rate cost of capita

Average age 53 year 46 year 27 years Not Reported

Determinants of Not Reported Direct & Direct & Direct &

earnings Indirect benefits Indirect benefits Indirect
as cost to earned in India benefits earned
company basis & abroad in India &
abroad

SOURCES: - Annual Reports Of Companies

50
Table: - Employees and value of human resources of selected companies for
2006-2007 to 2010-2011

51
The above desk shows the power of personnel of the CCI, HPCL, Infosys and Rolt. The
values of the human sources additionally disclosed within side the desk for unique
years. The fee of human sources is growing while variety of personnel is reducing each
12 months from 2006-07 onward in case of CCI. The fee of personnel is growing
because of growth in advantages spooled to personnel. HPCL annual files for the 12
months did now no longer reveal the fee of human sources i.e., why the column for that
12 month is left blank. The fee of human sources improved 2.22 instances, 1.45
instances, 2.35 instances and 2.72 instances for CCI, HPCL, Infosys and Rolt
respectively at some point of the length of look at I.e., 2006-07 to 2010-11 (a length of
5 years) The human useful resources accounting statistics within side the annual
reviews of those businesses shape best a part of the supplementary information.

It lacks authenticity, as it's miles unaudited. Moreover, now now not all companies
expose all the variables that have been considered for valuation of human resources.
None of the companies reporting human useful resource accounting statistics emerge
as imparting HRA statistics as a detail of the income announcement and for the
stableness sheet. Only CCI and Infosys disclosed human useful resource rate in “social
Balance Sheet”. The rate of human useful resource established on the asset thing under
Neath they head “human belongings” and the same amount have become established
beneath they head “contribution toward human belongings” on the felony obligation
side of Balance sheet. Its manner that their net rate is Zero. However, maximum of
those companies has valued their human belongings, but it has now not been mentioned
as to how they may be treating such expenditure absolutely to the income and loss, it
really is in competition to the accounting principles.

6) Ranking of the selected companies: -

An index of human resource accounting records disclosure is organized, and the rating
were assigned based totally on several variables disclosed with the resource of the usage
of the one’s awesome companies in their annual review. The index Consist of those
devices which can be considered essential from the elements of view of the clients of
the HRA facts and advantageous variable had been diagnosed after scanning the once-
a-yr. critiques for the length 2007-08 to 2010-eleven i.e., five years. The non-
availability of these devices (inside aspect the once-a-year critiques) may also render
the comparative assessment very difficult. The following 15 variables were covered

52
inside aspect the index. In table, score was assigned to the ones corporations based
mostly on facts disclosed for five years. One rating is given for one three hundred- and
sixty-five-days facts and fashionable five score for one variable for a company. As
endorse scores of Infosys is maximum i.e.,15. it critiques all the variables therefore it
has been ranked on first position. Least facts are disclosed via Rolt India therefore it
stands on 4th rank. HPCL have been given second and CCI 1/three rank. All the selected
groups file one variable i.e., Approach used for the motive of valuation. The score of
one-of-a-type variable show the maximum importance gained via any variable via all
the chosen companies.

Table: - Sources of the selected companies based on information disclosed

S/N Organization CCI HPCL INFOSYS ROLTA TOTAL

variables

1 No of 5 5 5 0 15
Employees

2 Category of 5 5 5 0 15
employees

3 Age wise 4 5 0 14
distribution
5

4 Average age 5 4 5 0 14
of employees

5 Model use of 5 4 5 5 19
valuation

6 Discount rate 0 4 5 5 14

7 Criteria for 0 4 5 5 14
discount rate

53
 8 Determinants 0 4 5 5 14
of earnings

9 Category wise 5 4 5 0 14
disclosure of
HR value

10 Value added 5 5 5 0 15

11 Profit/human 0 4 5 0 9
resources

12 Value added/ 0 0 5 0 5
human
resources

13 HR'S/ total 0 4 5 0 9
resources

14 Employees 0 4 5 0 9
cost/HR'S

15 Balance with 5 0 5 0 10
HR'S

16 Total 40 55 75 20 N=190
resources

17 Mean 8 11 15 4
resources

18 ranks 3 2 1 4

SOURCES: - Annual reports companies for the year 2006-08 to 2010-11

For the purpose of ranking of the Organizations mean scores are calculated. The
following formula was applied to calculate mean scores.

Mean Scores = Total sources/ Total no. of years i.e., 5

54
Finding Conclusion & Suggestion: -

55
The adventure of this studies has been difficult however similarly pleasant for the
researcher. This inquiry has helped the researcher to advantage information now no
longer best related to the HR challenges, however, additionally to construct views
associated with unique elements of control of how no linger for income groups and the
function performed with the aid of using different actors such as government,
investment agencies, company, and network members. Mentioned below is a quick
précis of the previous chapters of this document observed with the aid of using findings
and suggestions.

Explains the rationale for the study and explains the theoretical concepts related to
Human Resource Management 'Development’ and relationship between HRM and
Development. it also includes discussion about similarities in values and principles in
social work practice and HR along with the significance of Development Sectors
Organizations. There is a list of board research question which have been literature.
Literature review is presented in following thematic categories: HR demanding
situation and wishes of DSOs in well-known India and abroad; Specific regions of HR
inclusive of Talent acquisition, Marketing and communiqué for recruitment,
performance management, Employees Motivation & rewards, Subjective well-being,
Gender associated HR components of improvement Zone groups and HR components
of precise classes of employees: professional social people and subject people.

Explain Research Methodology used for the study. Researcher has used combined
approach technique for deriving advantages of each quantitative and qualitative
methodologies. Researcher decided on 14 Development Sector Organization running in
kind of recognition regions inclusive of Health care, Education, Agricultural and
Livelihood, Disable Welfare, Training and Skill improvement and so on. Responses
from 42 applicants were analyzed and supplied in Data evaluation and interpretation.
The identical bankruptcy consists of unique case research of eleven DSOs describing
their HR challenges, strengths, weaknesses, and good practices. Researcher has made
efforts to fulfil all studies targets as stated in the technique whilst gathering secondary
and number one information and decoding it. Mentioned under are essential findings
primarily based totally at the look at observed via way of means of suggestions

56
HR Challenges Faced by DSOs along With Recommended Strategies:

Based at the statistics analysis, diverse HR demanding situation of DSOs have emerged
which have based defined in seven classes as cited below. Along with the demanding
situations associated with every category, researcher has additionally endorsed a few
techniques which might assist DSOs to manage up with those demanding situations.

• Challenges related to attractive and acquiring talent

• Challenges related to Training & Employee Performance

• Challenges related to employee motivation and retention

• Challenges related to Work culture

• Challenges related to Leadership

• Challenges related to Organizational growth

• Challenges related to Funding and support system

Lateral strategies:

These techniques are extensive in nature. They could be useful in managing many of
the above referred to HR demanding situation and additionally in strengthening HR
function. it includes:

• Assessment of HR function

• Outsourcing HR

• Use of latest Technology

57
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Optimizing the effectiveness of financial reporting through human resource accounting
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Ari santi Dwil Irawati 2021 The measurement of Human Resources Accounting: The
Applications and Challenges in Facing the industrial Revolution 4.0 Review of
international Geographical Education Online 11 (4), 430-445, 2021.

Dawid G Bowers, Alan S Davenport Future Performance trend indicators: A Current

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SOCIAL RESEARCH, 1978.

Dinesh K Gupta, Subhash kumar 1986 Human Resources Accounting-some Possible

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Fariborz Avazzadehfath, H Raiashekar Decision-making based on human resources

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monitoring manpower utilization in a business environment. Measurement of human
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Osemeke Monday 2017, Human resources accounting: Isssues, Benefits and challenges
international journal of economics, Finance, and management sciences 5 (3), 129-138,
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Sirous Korahi Moghadam, Erisa Kamali, Davood kalantarian 2017, Appropriate Model
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Thomas Arkan 2016, Human Resources accounting: A suggested model for

measurement and valuation Finanse,s Rynki Finansowe, Ubezpieczenia, 179-193,
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59
 References:

Introduction: -

https://core.ac.uk/download/pdf/234629722.pdf

SWOAT: -

https://www.investopedia.com/terms/s/swot.asp

Literature review: -

https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&q=human+resources+acco
unting+status%2C+issues%2C+and+future&btnG=#d=gs_qabs&u=%23p%3Dalweso
zGwzYJ

Methodology: -

https://www.slideshare.net/Haseena07/human-resource-accounting-68801317

https://www.whatishumanresource.com/methods-of-Human-Resource-accounting

Bibliography: -

https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&q=human+resources+acco
unting+status%2C+issues%2C+and+future&btnG=#d=gs_qabs&u=%23p%3Dalweso
zGwzYJ

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