OVERVIEW OF HUMAN RESOURCE ACCOUNTING AND THE POSSIBILITY OF IMPLEMENTATION IN PT X
Adyarina Kusuma Prihandika
Faculty of Economics
To ensure growth and development of any organisation, the efficiency of people must be augmented in the right perspective. Without human resources, the other resources cannot be operationally effective. The efficient and effective utilization of inanimate resources depends largely on the quality, caliber, skills, perception, and character of the people, that is human resources working on it. Human resource accounting is the measurement of cost and value of people to the organization. It involves measuring costs incurred by the organization to recruit, select, hire, train and develop employees and judge their economic value to the organization. Regardless of the explanations above, there are still limitations attached to the implementation of effective human resource accounting, such as no specific procedure or guidelines for finding cost and value of human resources, dehumanizing issue, the heterogenity of human resources itself and many others. (MBA –H4020) Human resource accounting that expresses the value of human assets will provide cognitive effects on human resources accounting information. Measuring and revealing human resources will need a theoretical framework to determine the type and determining factor for a company. That will help ensure the funds will be managed as effectively as possible to benefit the company in the implementation of human resource accounting. (Hitten:2008)
2. Problem Formulation
Based on the information above, the problems investigated in this research are: 1. Why is human resource accounting considerable for the growth and development of PT X? 2. How much is the possibility of human resource accounting to be implemented in PT X?
3. Research Contribution
It is hoped that this research will contribute in: 1. Providing an overview of human resource accounting in general. 2. Giving more insight into the effect of human resource accounting in growth and development of PT X and corporations similar to PT X. 3. Determining the possibility of implementation of human resources accounting in PT X and corporations similar to PT X. 4. Providing a point of view for further research in the matter of human resource accounting implementation. CHAPTER 2
1. Literature Review
1. Human Resource Accounting
Jan-Erik Grojer played a pivotal role in continuing a focus on the necessity of identifying how it might be possible to account for people. Together, with his colleague and fellow contributor to this collection, Ulf Johanson, Jan-Erik advocated the development of human reasource costing and accounting, a contribution that provides the critical link between human resource accounting, the principal approach to accounting for people in the 1970s, and intellectual capital, the development that has galvanised renewed interest in this topic as well as identifying why people should be taken into account. (Roslender:2009) The American Accounting Society Community on Human Resource Accounting defines it as follows: “Human Resource Accounting is the process of identifying and measuring data about human resources and communicating this information to interested parties.” In simple terms, it is an extension of the accounting principles of matching costs and revenues and of organizing data to communicate relevant information in financial terms. Mr. Woodruff Jr. Vice President of R.G. Batty Corporation defines it as follows: “Human Resource Accounting is an attempt to identify and report investments made in human resources of an organisation that are presently not...
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