HUMAN RESOURCE ACCOUNTING IN EDUCATIONAL INSTITUTIONS
This paper is an attempt to capture the Human Resources Accounting essentials of B-Schools. It is immensely difficult to account the resources institutions in which profit and productivity depend heavily on intangible assets. We generally stand perplexed to measure the worth of any intangible resource. This attempt becomes much more complex in the case of knowledge carriers and intellectuals. Intellectual capital has become to be an accounting component since a decade and more now. It is an attempt to quantify the investment in the intellectual and knowledge resources and evaluate their future value, thereby giving a fair understanding of the total worth of an organization. Unlike other tangible resources, the individual worth of intellectual assets is anticipated to either not depreciate or in the worst cases fall at a rate lower than the tangible assets. The objective is quantifying and accounting for Human Assets in an academic institution. The most popular technique used in investment decision making, i.e.; Net Present Value (NPV) is applied here. Human resources in such institutions involve teaching professionals and others that are engaged in admissions, placement, course design and others. The Survey method is applied to facilitate identification of the factors to be considered.
““Human resources are the greatest assets of any company. You can raise tariffs or prevent MNCs from entering, but one can't stop the employees from leaving if they are dissatisfied.” – Narayana Murthy, Founder of Infosys Technologies. This quotation signifies the extent to which leading corporations value their human resources. They treat them as the most powerful assets and find good reason to work towards their satisfaction. The best companies in the world are those that realize the worth of their employees and continue to invest in them towards their growth and development. This is a conscious effort towards building a continuous resource that shall fuel the growth of the company from within. In recent years Academic Institutions have become the major source of any country’s workforce which in turn defines the economic potential. Behind this workforce lies the effectiveness of the academic institutions that generate them. These academic institutions have been doing a commendable job in times immemorial. Of late competition has also reached academic institutions as it has the corporations. Academic institutions have also begun to have mechanisms to evaluate their profitability and decide methods for their sustenance. This makes it imperative that the capacities of the schools and colleges are evaluated appropriately. The most obvious evaluation is through financial statements. Though the financial statements are essentially designed to capture the inflows and outflows of organizations and identify the profitability, recent developments have included human capital under the social capital head. The human assets for an academic institution are scattered between the teaching and non teaching employees. This accounts for the intangible assets of the institution. Apart from this infrastructure and facilities account for the tangible assets. Tangible assets have common methods of evaluation and accounting like historical cost method where the original price of assets is reduced every year by charging depreciation. The most questionable part of evaluation is among the Intangible assets. This attempt focuses on identifying the crucial asset of academic institution and accounting for it. As common knowledge goes the most crucial asset for an academic institution is its intellectual capacity. This has also been concurred by our survey and analysis which included the various factors that could affect student satisfaction. We have considered student satisfaction as the core to the analysis because this factor defines the success of any academic institution. Our...
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