Human Resource Accounting
Human Resource Accounting as a Measurement Tool: Asian Perspective
M. Rizwan Arshad. Lecturer Department of Management Sciences
The Islamia University of Bahawalpur.
PhD Research Proposal of
Mr Rizwan Arshad
Human Resource Accounting as a Measurement Tool: An Asian Perspective
Attempts to account the Human Resource are not new it was Rensis Likert (1963), who initiated research into HR accounting in the 60’s. He stressed the importance of long term planning of Human Resource qualitative variables that results in greater benefits in the long run. The resource theory considered that the competitive position of an organization depends on its specific asset, which is the HR. This explains why some firms are more productive and successful than others under almost similar conditions and similar industry. It is the HR that makes all the difference. Following a less fruitful research period (Grojer and Johanson, 1998: 495) one could have expected interest in the area to wane but on the contrary, it has experienced something of a revival. When anyone wants to know the history of HR accounting, most reviewers such as Grojer and Johanson (1998) agreed that during the first half of the 1970s it was one of the most researched subject within accounting, consuming a vast amount of academic Endeavour.
Human Resource is not just the number of pairs of hands engaged in any organization. HR is above the simple number game. HR may be though of as the total knowledge, skills, creative abilities, talents and aptitudes of an organization’s work force. It is the sum total of inherent abilities, acquired knowledge and skills of the employees.
Why HR accounting is considered as important and who is the focus of this research? HR accounting is a term that has both a narrow and more generic focus in the literature with respect to the understanding of the value of people in the contemporary workplace and
References: Armstrong, P. (1989). Limits and possibilities for HRM in an age of management accounting’ in New perspectives on Human Resource Management. J. Storey (ed). London: Routledge. Dasgupta.N Flamholtz, E.G. and Main, E.D. (1999). `Current issues, recent advancements and future directions in human resource accounting’ Lester, T. (1996). `Measuring human capital’. Human Resources, 24, 54 . Mayo, A Mirvis, P.H. and Macy, B.A. (1976). `Human resource accounting: a measurement perspective’ Pfeffer, J. (1997). `Pitfalls on the road to measurement: the dangerous liaison of human resources with the ideas of accounting and finance’ Prabhakara Rao D, "Human Resources Accounting" Inter-India. Publications New Delhi. 1986 Sveiby, K.E Turner, G. (1996). `Human resource accounting wisdom?’ Journal of Human Resource Costing and Accounting, 1, 63-73.