A Study on HR Accounting Practices in Selected Companies

Since the beginning of globalization of business and services, human elements are becoming more important input for the success of any corporate enterprise. It helps the management to frame the effective policies of human resources. HRA provides quantitative information about the value of human asset, which will help them to channelize the available skills, talents, knowledge and experience of their employees more efficiently. Therefore, HRA has very high significance not only for the management, but also for analyst. It is now followed by most of the medium and large scale companies in India as there is awareness of the benefits in terms of revenue, productivity, flexibility in skill development.

When the human resources were quantified, it gave the investors and other client’s true insights into the organization and its future potential. Proper valuation of human resources helps organizations to eliminate the negative effects of redundant labor. An attempt has been made in this paper to evaluate the HRA practices of Infosys Technologies Limited (ITL) and BHEL along with its usefulness in HR decisions. Some suggestions have also been provided to improve the HRA practices, which will ultimately contribute to ensure the bright future of HRA in India.