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A Comparative Study on the Impact of Human Resource Accounting Practices on Employee Effectiveness with Reference to Selected Indian Public Sector Companies


Affiliations
1 Prof and Head, MLA First Grade College for Women, Bangalore, India
2 Associate Prof., MLA First Grade College for Women, Bangalore, India
3 Prof., MLA First Grade College for Women, Bangalore, India
 

Human resource is the most vital input on which the success or failure of the organization very much depends upon. The literature survey reveals that majority of the research studies are based on the use of various methods and models of human resource accounting and it relates to the human resource development from the HR perspective only. There are very little studies to find the financial implications of human resource accounting. To fill this research gap, the present study is undertaken, where an effort is made to analyze the financial implications on productivity, effectiveness, return on investment and wealth creation due to investment in human capital resources. The study covers about 40 companies spread over India, and categorized into financial and non-financial companies. This study shows the relationship between human capital investment or employee cost with its returns. The outcome of the study can be a valuable input for future decision making by other stakeholders or prospective investors of the company and also for the management of the company to take strategic decisions. The study may induce other companies to introduce human resource accounting in their financial statements to analyze the worth of their employees to the organization.

Keywords

Human Capital, Human Capital Investment, Human Resource Accounting, Employee Cost, Human Capital value addition, Human Capital return on Investment.
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  • A Comparative Study on the Impact of Human Resource Accounting Practices on Employee Effectiveness with Reference to Selected Indian Public Sector Companies

Abstract Views: 185  |  PDF Views: 95

Authors

Rekha H. G.
Prof and Head, MLA First Grade College for Women, Bangalore, India
Bhavani H.
Associate Prof., MLA First Grade College for Women, Bangalore, India
Nagalakshmi K.
Prof., MLA First Grade College for Women, Bangalore, India

Abstract


Human resource is the most vital input on which the success or failure of the organization very much depends upon. The literature survey reveals that majority of the research studies are based on the use of various methods and models of human resource accounting and it relates to the human resource development from the HR perspective only. There are very little studies to find the financial implications of human resource accounting. To fill this research gap, the present study is undertaken, where an effort is made to analyze the financial implications on productivity, effectiveness, return on investment and wealth creation due to investment in human capital resources. The study covers about 40 companies spread over India, and categorized into financial and non-financial companies. This study shows the relationship between human capital investment or employee cost with its returns. The outcome of the study can be a valuable input for future decision making by other stakeholders or prospective investors of the company and also for the management of the company to take strategic decisions. The study may induce other companies to introduce human resource accounting in their financial statements to analyze the worth of their employees to the organization.

Keywords


Human Capital, Human Capital Investment, Human Resource Accounting, Employee Cost, Human Capital value addition, Human Capital return on Investment.

References