Introduction to HR Mearsurement

Submitted to: Prof. Deepali Soni

Submitted by: Vinam Gosar(MBA-3)
Contents
Meaning
Definition
Development of Concept
Importance
Meaning
HRM means to measure cost and the value of the
people in the organization. It measures the cost
incurred to recruit , hire, train and develop employees
and managers.

HRM can be considered as such an accounting system

which recognizes the human resources as an asset and
records it in the books of account after measuring its
value .
Definition
“Human Resource Accounting is the measurement and
quantification of the organizational inputs such as
recruiting, training experience and commitment.”
-
Stephen Knauf

“HRA is the process of identifying and measuring data

about human resources and communicating this
information to interested parties.”

- American Accounting Association

Development of the Concept
The traditional accounting practices simply ignored the
value of human factors in the organization and
preferred to treat it as an expense and expendable
factors.

This fundamentally lopsided attitude towards human

resources goes against the interest of the employees
decisively.
Importance
Experts identified that Human Resource Accounting produces
a variety of benefits for management, employees, and
stockholders, which are listed below:
1. Information for manpower planning
2. Information for making personnel policies
3. Utilization of human resources
4. Proper placements
5. Increases morale and motivation
6. Attracts best human resources
7. Designing training and development programs
8. Valuable information to investors
Thank You