Govind Prasad
HOWEVER the
research in the area of qualification of human resources after 1962 has, now
made it possible to assess the current value of a firm’s human organization and
of its customer’s goodwill. Professor Flamholtz defines hra as a accounting for
people as a organizational resources. It involves measuring the cost incurred
by the business firm and other organization to recruits, selection, hire,
train, and develops human assist. Prof. Rensislikert one of the leading proponents
of hra observes”HRA refers to activity devoted to attaching dollars estimates
to the valu of a farms human originations and its costumer goodwill.”
Introduction: - As back as in 1962 W.A. Paton observed” in
Busnice interprises a well organized and legal personal may be a much important
‘assets’ than a stock”. Its term is concert with the personal management, human
resourse management, human resourses accounting.
It is concerned with all categories
of personnel from top to the bottom of the organization. The broad
classification of personnel industrial enterprises may be as follows-- ……Blue colours workers related to working on
machinery, loading, unloading, ……Managerial and non managerial personnel. ……. Professionals
such as c.a., c.s., i.c.w.a., lawyers etc and non professionals’ personnel.
Objectives:-
·
To
explain the concept of HRA.
·
To
point out difficulties in the physical valuation of HRA.
·
Utilization
of resources.
·
Proper
placement.
·
Increases
morale and motivation of the employees.
·
Designing
training and development programmers.
·
Valuable
information to investors.
Limitations:-
·
There
are no specific and clear cut guideline for cast and value of human resource of
an organization.
·
However
there are no standard for HRA.
·
There
is no suitable or certified method & model for computation of HRA cost and
value.
·
HRA
may lead to the dehumanization in the organization.
·
The
Nature of HR expert.
·
Globalization.
·
Fast
Changing in technology & innovations.
·
Limitation
of time and resources.
Research
Methodology:
The present study being blend of conceptual as well as
applied aspects of HRA makes use of both the primary as well as secondary data
and information. Necessary staticsally devices are also utilized for the
analysis and interpretation of the data. The primary data are to be collected
by company surveys administering questionnaires, conducting interviews of the
managerial / non-managerial personnel the secondary data are collected by the
review of research articles, standard literature on the subject and other
published sources.
The company’s annual reports, news letters will also be
resorted for the purposes of obtaining various information. Necessary staticsally
devices are also utilized for the analysis and interpretation of the data.
Methods and Models of HRA:-
A.
Present
value method
B.
Stochastic
process with service reward method.
C.
Morse's
model
D.
Jaggi
Lave model of HR Valuation.
E.
Scott
Myers and Vincent flowers model.
F.
Pekin
organ's model of HR valuation.
G.
ABA
Lev a Schwartz's compensation model.
H.
Fried
Man and Lev's Economic model
I.
Meyers
and flowers model
J.
Historical
cost approach
K.
Replacement
cost approach.
L.
Opportunity
cost approach.
Hypothesis:-
Hypothesis is usually considered as the principal instrument
in research. Its main function is to suggest new experiments and observations.
In fact, many experiments are carried out with the deliberate object of testing
hypothesis. Decision-makers often face situations wherein they are interested
in testing hypotheses on the basis of available information and then take
decisions on the basis of such testing. In social science, where direct
knowledge of population parameters is rare, hypothesis testing is the often
used strategy for deciding whether a sample data offer such support for a
hypothesis that generalization can be made. Thus, hypothesis testing enables us
to make probability statements about population parameters.
The researcher had an assumption in his mind that Reliance
Industries gives due importance to the human resource management. It was found
during study that personnel policies including recruitment, selection,
promotion and training and development programmers of RIL are human-oriented.
It gave a sense of satisfaction to the researcher.
Operative Sugestions:-
ü
Firstly,
proper initiation should be taken by the central government and the
professional and the professional bodies like– CA, CS, CWA, CFA, AIMA and many
others in India in respect of formulation of specific accounting standards and
suitable valuation models on the measurement and reporting of value of human
resources.
ü
Secondly,
there should be disclosure of valuation of human recourses.
Though,
it is not an easy to analyses the suitable item of HRA information
Thirdly
there should be discloser of employee costs :(a) information of the salary with
break-ups, (b) employee coats for different reasons (c) Manpower, development
costs (d) grade wise distribution of employed costs and (e) production hours
lost .
ü
Fourthly
there should be discloser of productivity / performance ratios i.e., production
per employees in item of quantities and out put values per employees, value
added per employee, every age per employee and investment per employee.
ü
Fifthly,
all manpower development programmers like – training and transactional analysis
should be highlighted.
ü
Seventhly,
information regarding regular communication with employee should also be
disclosed
ü
Lastly,
since there is no specific discloser pattern of HR value Reliance can adopted the
following format which seems to be suitable for meeting the requirement is
presented.
It is hoped that the present
study would motivate further researches in this mammoth area. The recherchés
would be amply awarded If due consideration is given to his finding and
subsequent suggestions.
Conclusion:-
The human resources are assuming increasing significance in
modern organization. There cost and values you have an important role for
growth & development a firm and take decision make policies. HRA is essential
for any business institution todays business age. The present study will be an
important study both from academic and professional point of views as if
examines very significant modern aspect of HRM. The results obtained from the
study can be applied to the other organization interested in the development of
HR and adoption of HRA practices the researcher hopes at present study will be
a unique study and gets welcome response from academician, management
researchers, proffesionals and practicing manager in corporate world. It is hoped that it will motivate further
studies in this field.
Bibliography:-
1. Athas; Behavicum is organization
prentice hall New York, 2008.
2. American Accounting Association–A
statement of Basic accounting theory NewYork, 2009.
3.
Becker Gorys, Human Capital Columbia University Press New York, 2007.
4. Caplan Edrelin H, Management Accounting behavioural
science, Pb Addision Wesley 2007
5.
Gordon, Devis, Management informaton system. McGraw-Hill New York 2007
6.
Giles, W.J. and D.F. Robinson, Human Asserts Accounting London, 2006.
7. Hopwood, Anthony, Accounting & Human
Behaviour prentice, Hall of India, Delhi-2007.
8. Malik, R.K., Human resource Accounting&dicision
making prentice, hall of India, Delhi 1999
9. Annual
Report, RIL from 2006 to 2013.
10. Magazine, RIL Half Yearly
11. Business India, Magazine
12. Business World, Magazine
13. Business Today, Magazine.
14. Economics Time, Daily.
15. Indian Journal of Commerce, IGNOU.
16. Paradigm, IMT Ghaziabad.
Govind
Prasad
Research
Scholer, Department. Of Commerce,
C.C.S.
University Meerut, U.P. India.
