Chapter 2

Review of Literature
and Research
Methodology
Chapter 2 Review of Literature

CHAPTER - II

SECTION A- REVIEW OF LITERATURE

The aim of the present literature survey is to experience the problems faced by the

HRA concept, available researches on HRA and impact of HRA on various

stakeholders. Experience includes empirical findings as well as theoretical elaboration.

The literature is derived from various sources such as:

a) Databases like ProQuest, EBSCO, etc.

b) Reference libraries like NIBM, Gokhale, TISS

c) Books

The search resulted into more than 1000 references. Out of these, 150 are referred

to in the present study.

Three perspectives will appear in the literature. It is interesting to know that each

perspective gave rise to second perspective discussed. First, there is a description of

the problems faced by HRA concept, then an analysis of the actual use of the concept

and, finally, a holistic picture of its utility. The parts of Literature Review are:

1) Human Resource Accounting – the Hard Facts

2) Impact of HRA on HR decisions

3) Impact of HRA at Organizational Level including Hospitals

Despite the considerable quantity of articles and books covered, it is no guarantee

that all the relevant literature is covered in the present review. There are several

reasons why this might have occurred. First, relevant references might not have been

in the databases; second, authors might have used inadequate keywords; third, we

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might have missed relevant literature as a result of using inadequate keywords; and we

might have excluded relevant literature because of a poor interpretation of the abstract.

DESCRIPTION OF THE CONCEPT

Human Resource Accounting is similar to the preparation of accounting statement.

As financial accounting reflects the cost of assets such as land, building, machinery,

etc; similarly HRA tries to place a value of human resources on human resource

balance sheet. In this balance sheet, human resources are reported as assets instead of

expenses. Thus, HRA shows the investments made by the organization on their human

assets and how this value changes over time.

Human resource accounting is the upcoming term in the field of Management. It

stems from the transition of our economy from a manufacturing orientation to a

service orientation. As human beings become the key element in service organizations,

failure to measure their value and account for their cost will lessen organizational

effectiveness. According to P.J. Taylor, the most important topic for research should

be the clarification of the concepts and measures used by HRA. Its usefulness cannot

be effectively demonstrated, particularly to those understandably skeptical managers

and accountants outside the academic world, until its methodology and measures are

less controversial (Glautier, 1976, p-13).

2.1 HUMAN RESOURCE ACCOUNTING THE HARD FACTS

HRA as a concept has encountered many problems. These problems lead to the

slow acceptance of HRA. Providing solutions to these would lead to growth of HRA

in India. Let us analyze the problems in detail:

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2.1.1 GENERAL PROBLEMS

HRA is not being implemented in majority of the organisations because of

following problems:

[Link] Awareness of HRA concept

The level of awareness and acceptance of HRA is still low as many companies

take little initiative to make the information available to the shareholders despite

having the data (Abubakar, n.d.). The findings show slightly more than half of the

respondents were aware of the concept, even though based on the background

information of the respondents they held managerial positions and had a minimum

undergraduate degree qualification (MiinHuui Lee, 2008).

Reference to previous research shows that the problems associated with the

concept of recording human resource value are non-acceptance, unawareness of the

concept (Rhode, Lawler and Sundem, 2001).

A study by MiinHuui Lee (2012) revealed that one of the reasons why the slow

development of the concept of human resource disclosure was, according to the

respondents, the unawareness of the concept.

[Link] Is Human Resource an Asset?

The first question that arises is whether Human Resource is considered as an asset.

Many research papers discussed and revealed the contradictory opinion of the

mentioned fact.

Liao argues that though human resources are valuable to the firm, they do not fit

the definition of an asset because the proprietary and entity conceit of accounting

insist that the firm have specific rights to the future benefit of things and to dispose of

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the assets. (Liao, 1974) Presently, firms have no exclusive rights to human assets and

no assurance of future control and benefits.

The accounting definition of an asset is important to be understood of human

resource accounting and perhaps will explain the reason for accountants not giving

attention to HRA and why most of the research has been undertaken by sociologists

and human resource specialists.

The IASB Framework (2008) defines an asset in the following manner:

“An asset is a resource controlled by the enterprise as a result of past events and

from which future economic benefits are expected to flow to the enterprise.”

Otter (2008, p.5) argued that since the employee is free to leave the entity, the

control criterion is not met, thus future benefits are not assured, and therefore the

employee fails the asset test. A countervailing argument is that whilst future benefits

are not assured they are nevertheless probable, since employees and employers enter

into a business relationship with the intention of it being for some considerable time

into the future and in most instances this is the case.

Considering chartered accountants' point of view, value of things should be

recognized, valued, and placed on a firm's balance sheet as an asset. Valuing human

beings, however, creates a tremendous dilemma because they do not conform to the

traditional definition of ‘asset’. The classical definition that ‘something owned by a

firm’ cannot be applied to human beings. Otter (2008, p.3) had similar view and said

that since employees are not owned by the company and that the balance sheet

purports to reflect what a company owns, it would be wrong to include employees as

an asset, even if it were possible to place a value on the human asset. Supporting to the

view R. Narayan (2010, p.240) said that the ownership of human resources is

practically impossible; therefore, it cannot be considered at par with other assets.

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This is true even in professional sports. A firm may own a player's contract but not

the player. When defined in terms of characteristics, assets should have utility,

scarcity, and exchangeability. Arthur Andersen & Co. applied this definition to human

resources and concluded that human beings lack exchangeability and thus are not

assets.

“Soft” assets are not recognized in financial statements. Another argument by John

Stuart Mill (Schultz 1961), is that people should not be considered as assets, because

assets exist for the service of people and to treat people as assets is demeaning them.

As an answer to all these problems there are supporters of the concept who

contradicted the above arguments more logically:

If we consider a broader, more philosophical point of view, humans can be

classified as assets. The word "asset" can have many different meanings. Human

Beings fall into a large and complex category of assets known as intangibles. Included

among such assets are patents, copyrights, trademarks, and a variety of intangible

assets commonly listed under the term "goodwill," such as a favorable business name

or location, or a group of knowledgeable or skilled employees? While important to the

success and value of a firm, many of these intangible assets do not appear on a firm's

balance sheet because there is usually no objective cost basis at which to value them.

In addition, tax laws discourage the allocation of costs to goodwill because goodwill,

unlike equipment and other tangible assets, cannot be depreciated (Edmonds and

Rogow, 1986, p.42). According to Flamholtz said traditional financial statements are

less illuminating with respect to the assets that create wealth than they were in the past.

Intangible assets such as brand names, intellectual capital, patents, copyrights and

expenditures for research and development now generate an increasing amount of

wealth for firms.

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The first requirement presents a constraint that is surely not met by human

resources, since these resources are neither owned nor acquired. Indeed, it has been

legally, as well as morally, improper to own other human beings for some time. On the

other hand, it may be argued that human resources are quasi-assets since they are in a

sense possessed or controlled by the firm (Rhode, Lawler and Sundem, 1976, p.16). Or

if assets should be subject to control by the firm, that control need not be absolute. For

instance, goodwill is currently considered an asset, but it is subject to many forces

outside the firm.(Edmonds and Rogow, 1986, p.43)

Hermason argues that there is a precedent found in accounting practices which

indicates that it is logical to consider human resources as an asset. The issue, defined

by Hermason, is not the legal rights involved but rather a firm's "Operational right to

receive benefits" (Ebersberger, 1981). Thus, assets are something that possess utility

or value. They are acquired not for their own sake, but for what they can contribute to

a firm's cash flow. This definition avoids controversies over ownership, control, and

exchangeability. (Edmonds and Rogow, 1986, p.43)

According to Wright (1960, p.52) regarding man as a capital asset may cause

managers to be more selective in making investments in human resources

Assets represent expected future economic benefits, rights to which have been

acquired by the enterprise as a result of some current or past transaction. The assets

must have been acquired through a transaction and it should have future economic

benefits.

The magnitude of the people component of the entity is such that it is essential for

it to be recorded and properly understood through conceptualizing it as an asset and

including it in the financial statements. The definition per generally accepted

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accounting practice might therefore be made more flexible to accommodate the

argument advanced earlier or a revised definition could be compiled (Otter, 2008, p.5).

Accountants have, however, found ways to recognize the human asset in special

circumstances, such as accounting for the registrations of professional soccer players

(Szymanski & Kuypers: 1999:197), accounting for patents, copyrights and other

intangible assets, within the framework of generally accepted accounting practice (Jim

Otter, 2008, p.6). The crux of the problem lies in searching for and applying

accounting like formulae to people. (Raju, Kumar, Sangeeta, 2004, p.183)

[Link] HR Costs

Narayan (2010, p.239) defined HR Cost Accounting (HRCA) as the measurement

and reporting of the costs incurred to acquire and develop people as organizational

resources. It deals with accounting for investments made by an organization to the

acquisition and development of human resource as well as the replacement cost of the

people presently employed.

HR Value Accounting (HRVA) is the concept based on the view that difference in

present and future earnings of two similar firms is due to the difference in their human

capital or assets. The economic value of the firm can be determined by obtaining the

present value of future earnings.

There are many costs involved in Human Resource Investment Subsystem such as

Acquisition Cost, Training Cost, and Welfare Cost and so on. The costs of these

activities cannot be correctly ascertained. For example, if training costs are considered,

the costs involved in execution of training such as training staff salary, circulation

material, plant and equipment, off-site expenses etc. but the costs like training

intervention development costs, cost of lost productivity, time and opportunity cost

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etc. cannot be measured in monetary terms. This may distort or misrepresent an

employee’s value to a great extent, which may lead to mistakes in Decision making.

According to Edmonds and Rogow (1986), the Human resource valuation data was

found to be useful for managers, analysts, investors, and appraisers, accountants have

spent much of their efforts on how they can be measured. The accuracy of such

measurements has been overly debated to the detriment of financial statement users

who need human resource information to make informed investment and business

decisions. If accuracy were the main issue, a strong case could be made for deleting

from financial statements depreciation and inventory valuations, which are based on

arbitrary historical cost assumptions. Some contemporary accounting literature

suggests that efforts to measure the exact value of human assets is not only

unnecessary but also impossible. According to them, the issue is not whether the costs

are measured perfectly or allocated exactly but whether human resources receive the

value they deserve. This objective can only be accomplished if human resources are

recorded and integrated with information about other assets.

[Link] Acceptance in Accounting Standards

Chartered accountants are very reluctant towards the accepting human beings as

asset because of many reasons as discussed earlier in 3.1.1 above.

The traditional accounting procedures practiced from a long time is acceptable

norms. Hence, whenever a new accounting system is developed, it is opposed against

the strengths of the traditional system, which is considered to be comparatively

objective and free from any bias. Similarly, in the case of HR accounting also, it is

argued that it lacks symmetry with traditional resource as it cannot be included within

the traditional definition of an asset (Narayan, 2010, p. 239).

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The concept of Human Resource Accounting is not recognized by tax authorities

and therefore, it has only academic utility. If the accounting standards board makes it

mandatory to disclose the values of Human Capital or Human Assets, then only the

Director of Indirect Tax Authorities will take into concern of HR Accounting.

(Narayan, 2010, p. 240)

2.1.2 PROBLEMS FACED BEFORE IMPLEMENTATION

Problems encountered by the management before HRA implementation:

[Link] Requirement of Expertise

For understanding and implementation of human resource accounting, expertise

and knowledge is required. Not many people know about human resource accounting

and hence there is a crunch of people who can implement it. Additionally, for any

person to know the concept, he need to be expert in accounting to understand the

calculations and implement the formulae, HR expert to understand HR processes and

costs involved, statistical expert to analyze results and strategic expert to use the

results in tactical decision making. It is indeed difficult for a person to be connoisseur

in all these fields.

[Link] Which model to use?

There are two approaches to human resource accounting.

a. Under the cost approach, also called human resource cost accounting method or

model, there are ‘acquisition cost model’ and ‘replacement cost model’.

b. Under the value approach, there are ‘present value of future earnings method’,

‘discounted future wage model’, and ‘competitive bidding model’.

The measurement of Human Resources is subjective as different firms will use

different methods for this purpose. Till date there is no model for valuation of Human

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Assets, which is widely acceptable and used worldwide (R. Narayan, 2010, p.240).

Managers are not sure about, out of available models, which model to use for their

organization to gain better results. There is little agreement concerning the procedure

in accounting for human assets. There are proponents and critics of the various

approaches like cost and value approaches. This factor has become responsible for the

slow development of the concept of human resource accounting.

[Link] Costs involved in implementing human resource accounting

A human resource accounting system is likely to be expensive; human resource

accounting can be justified only if its benefits exceed its costs. There is no proper

procedure or guidelines for finding costs and value of human resources of an

organization. It is not economical for small business units as it involves heavy costs if

the firms desire to install the HR accounting package in their organization (Narayan,

2010, p.240).

[Link] How is depreciation or appreciation calculated?

(Narayan, 2010, p.240) Another issue which has not been settled so far is about the

rate at which the prospective stream of contribution is to be discounted or

compounded to calculate its present and future value to the organization. A number of

applications are available in this process. Organizational needs constant change as

today's valuable employee may be valueless tomorrow.

One major difficulty with human resource accounting calculation is how the

depreciation can be calculated? Physically and mentally, individuals may grow and

deteriorate at different rates.(Rhode, Lawler and Sundem, 1976, p.18) The historical

cost approach to develop measures of human resource accounting uses an amortization

rate, which provides the figure of amortization to be charged to the profit and loss

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account every year. But it is very difficult to develop norms in this regard. Some grow

more capable as a result of their work experience whereas others may not. Given the

difficulty of predicting such changes, it is even more difficult to develop means of

writing off an individual’s value. So far, precise measures for amortization of human

assets have not been developed. Edmonds and Rogow (1986, p.44), said that although

the model reveals the interrelationship between many variables, it is not complete. For

instance, it offers no solution to questions about what discount rate should be used to

derive present value. In addition, the model treats an individual's value as an

independent or marginal phenomenon. The validity of this approach depends upon

several variables, including the nature of the organization and the interdependence of

organizational goals and roles.

Whereas Narayan (2010, p.240) says human resources is an appreciating asset

since manpower improves with time, with due regard to their ageing constraint, but for

physical asset its increasing value at the time of its installation, starts immediately

depreciating.

[Link] Basis of Calculation

Human resource accounting uses salary data as a measure of values; clearly some

people are paid more than they are worth and others less. Secondly, it measures only

the value of individual employees and does not place a value on their ability to work as

a team, morale, or commitment to the organization (Rhode, Lawler and Sundem, 1976,

p.19). A firm merely capitalizes the salary it pays its employee and assumes that what

employee is doing will be of some future benefit to the firm and that one can

determine the appropriate rates of capitalization. In many instances, they are

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completely erroneous presumptions, since there is absolutely no correlation between

the salary paid and actual value of employee to the corporation.

Should individual value be reported for each employee or should value be

calculated for groups of employees? Information from individual values is potentially

more useful than that derived from group values. (Rhode, Lawler and Sundem, 1976,

p.17) Although it is difficult to isolate an individual's contribution to a group task or

goal, when making personnel decisions, information from individual values is

potentially more useful than that derived from group values.

Narayan (2010, p.240) says in the recent past, it has been observed that the value

based measures of HRA are finding more acceptances with Flamholtz approach being

progressively used. However, this approach depends heavily on the measurement of an

individual’s or a group’s contribution of valuation. But, measurement of contribution,

especially at the managerial levels, is quite a difficult task. As a result, this factor

proves to be a hindrance in the development of the concept of HRA.

2.1.3 POST IMPLEMENTATION PROBLEMS

Problems faced by management after implementation of HRA:

[Link] Gimmicks of HR

According to Rhode, Iii, Lawler and Sundem (1976) managers may use human

resource accounting as a means of manipulating the employee. He or she may decrease

the human resource value of an employee as a form of punishment or control.

Managers may also transfer people at the end of the fiscal year to make the department

balance sheet look better.

According to Rhode, Lawler and Sundem (1976, p.21) Human resource accounting

may also affect control systems. Managers are frequently evaluated by the profits

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ascribed to investments under their control. Usually these profits are reported as rates

of return, and these rates may be increased either by increasing profits or by reducing

investments. Where investments are relatively fixed, e g, machinery and equipment,

manipulation of the amount of the investment may be difficult. However, human

assets are relatively mobile. Unless control systems are changed, the manager may be

motivated to fire or transfer his high value human resources just before the end of the

accounting period and so improve the apparent rate of return, a costly manipulation

over the long run.

Contrary to this opinion Wright (1970, p.53) says that normally while dealing with

an ineffective employee, manager has four alternatives

1) Relegate the man to less sensitive position.

2) Terminate him

3) Continue to accept substandard performance

4) Reorient and redevelop the man to integrate his abilities with the position.

If management considers the employee first as a valuable asset and second as an

asset necessitating an operating expense and it has employees that are not yielding an

acceptable return in the form of contribution to productivity. The first three

alternatives would fail to maximize the return on investment. The forth solution

becomes the optimum solution of the problem. Lawler's survey of the literature on

control systems concludes that ignoring human resource values sometimes leads a

manager to decisions which in effect liquidate an organization's human resources. For

example, training may be suspended and people mistreated to increase short-term

profits because profits are measured and human resource values are not (Rhode,

Lawler and Sundem, 1976, p.14)

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[Link] Beware the Programmed Society

According to Ebersberger (1981, pg.40), the greatest social threat of human

resource accounting is the potential it has for creating a programmed society. People

will be permanently stamped with a human resource value. One would be able to

predict from that initial value the entire rest of one's "value" for life! This graded,

structured society will leave little to individuality and creativity!

Other social effects like placing a human resource value on an employee may have

a demoralizing effect on large segments of the worker population. If one's human

resource value is not in congruence with one's self-image or not equal to one's peers,

the effect on the employee's self-image could be devastating. Also, depreciation in

human resource value will harm self-image.

One possible solution to this problem would be to keep managers from knowing

the human resource values assigned to particular subordinates, but managers might

then object to evaluation based on unknown criteria. A more reasonable solution

would require educating managers to look at human resource information differently

than they look at physical asset data.

From the Literature and Expert opinion, it is evident that the main and unanswered

problem of HRA is lack of knowledge about its utility to the organization. Also, no

concrete idea about its impact on employees is given. Hence, the further literature

talks about the same.

2.2 HUMAN RESOURCE ACCOUNTING AS A MANAGEMENT DECISION

TOOL

An executive's job is to allocate and administer scarce resources to achieve a

goal—that is, maximize owner wealth. But if investments in assets are distorted,

decisions of managers, investors, and appraisers may not be the optimum ones.

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Recognition of this has stimulated interest in the valuation of intangible assets,

especially human assets (Edmonds and Rogow, 1986, p.42). The question that remains

is whether provision of human resource accounting data can improve the decisions.

Unfortunately the human resource accounting literature has not provided an answer.

The much needed empirical evidence is yet to be found to support the hypothesis that

human resource accounting as a tool of management facilitates better and effective

management of human Resources.

2.2.1 INVESTMENT DECISIONS

A few initial studies in HRA attempted to test the effect of HRA information on

decision makers. HRA proponents such as Flamholtz (1985), Sackman et al. (1989),

Elliot (1991), Wallman (1996), and Lev (1997) imply that the presence of human

resource information on financial statements will influence analysts’ performance

assessments of companies and will therefore potentially affect their judgments

(Stovall, 2001, pg.41). Few other studies examined whether the presence of human

resource information made a difference in investment decisions. Elias (1972) used

survey methodology to investigate differences among investment decisions of various

accounting users based on the presence or absence of HRA information. The results of

his study indicated that human resource data would make a difference in the

investment decision. The study was reported with the limitation that the relationship

between HRA information and the adopted decisions was not strong. Hendricks (1967)

performed an experiment in which he used MBA students as subjects in a repeated

measures design to analyze financial statements given the presence or absence of

human resource data. His results suggested that HRA data had an effect on decision

outcomes in the experiment. Perera A. (2012) conducted a study in commercial banks

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of Sri Lanka. Findings of this study revealed that measuring and reporting human

resources information influence corporate investor’s for the acquisition and disposal of

shares. But, in the case of influence of non-financial human resources information to

the corporate investor’s for similar decisions did not imitate same finding.

Avazzadehfath F. and Raiashekar H. (2011) explored whether investment decisions

were affected by HRA information and factors which interfered this effect. 68 Iranian

companies were studied wherein results indicated that HRA information is relevant

and effect on optimal investment decision. Historical method or Original Cost Method

was suggested as best method for HR valuation.

2.2.2 HR DECISIONS

Even though lot of researches has been conducted on HRA, but it is disappointing

to state that not many research talk about impact of HRA on HR decisions. The

literature contains testimonials from corporate officers that the data helped improve

decision making, but these reports are difficult to evaluate. It is extremely unfortunate

that systematic research was not undertaken, since this might help answer the

questions raised about HRA's value (Rhode, Lawler and Sundem, 1976, p.22).

Reference to previous research shows that the problems associated with the

concept of recording human resource value are non-acceptance, unawareness of the

concept and the absence of demonstrations substantiating its usefulness (Rhode,

Lawler and Sundem, 2001).

A study by MiinHuui Lee (2012) revealed that one of the reasons why the slow

development of the concept of human resource disclosure was, according to the

respondents, the unawareness of the concept.

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The findings show that 55.3% of the respondents heard about the concept. 80.9%

of the respondents indicated that human resource value should be accounted for as

asset in the balance sheet. This finding support the literature discussed that in the era

of knowledge-based economy, human resource disclosure, knowledge accounting,

measurement of intellectual capital are important tools for management.

Knowledge about employee value is of utmost importance not only to investors but

also for other roles in the organisation. Edmonds and Rogow (1986, p.44) say Human

resource valuation is of concern to people in many professions: the plant manager with

high employee turnover, the financial analyst making investment recommendations,

the investor deciding between alternative investment opportunities, and the business

appraiser. There are no simple or exact solutions on how to appropriately report and

use human resource valuations.

[Link] Human Resource Planning

Craft J.A. and Birnberg H.G (1976) suggested that HRA can assist the human

resource manager in developing measures for cost of hiring new employee which may

prove beneficial in choosing best alternatives in selection process.

Sen D., Jain S., Jat S. and Saha R. (2008) investigated to find impact of HRA on

internal personnel management decision-making in relation to recruitment and

employee turnover control in 14 Bangladesh Banks. A pretest and posttest research

was conducted on 96 personnel executive through questionnaire without and with

HRA information. They were asked if HRA information has impacted their decision.

Using Q-test, researcher proved that use of HRA information is useful in internal

decision making related to Human Resources.

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Cherian and Farouq (2013), from their research concluded that the HRA

implementation helps to improve managerial decisions like layoffs, better performance

evaluation measures of the firm.

Flamholtz, E. G. 1976, designed a laboratory experiment to determine whether

human resource value numbers influence a selected human resource management

decision related to job allocation. The results indicate that nonmonetary human

resource value numbers may influence decisions. However, it could not be established

that monetary human resource value numbers make a difference in decisions. The

results also indicate that human resource value measures may influence the decision-

maker's mindset and criterion used in decision-making. HRA could aid managers

through providing information on the cost of specific personnel behaviors, such as

training and turnover, and also through encouraging better assessment and

development of people (Rhode, Lawler and Sundem, 1976, p.14).

Brummet, Flamholtz and Pyle (1968) identified few challenges faced by managers.

One of those is management needs more information on the costs of personnel

turnover. Currently, the losses through employee attrition cannot be assessed. Adding

to this, Rhode, Lawler and Sundem (1976, p.20) said one factor that presently

mitigates against turnover is that employees' values are not known outside their

immediate work group. This lack of information makes it difficult for an organization

to know who to recruit from competitors and may also make it difficult for the

employee who wants to leave to establish his or her value on the outside.

[Link] Performance Management System:

In many HRM books, HRA has been portrayed as one of the best methods of

Performance Appraisal. Performance appraisal focuses on long-term results and has a

long-term focus (Krishnan and Singh, 2004, p-5). Wright (1970, p.52) says that

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promotions are currently based, in large measure on attrition, and the ability of men

with high earning potential to perform is often thwarted by low employee turnover. In

turn, the enterprise fails to realize a payoff from its investment.

Management needs information about the categories of its human resource

investments. Standard costs and replacement costs can be established for the use in

recruitment, hiring, orientation, training and integrating new employees to a sufficient

level of interaction with fellow workers. These costs would provide management with

guidelines to estimate the replacement cost for persons in various positions so that

manpower acquisition could be planned.

Flamholtz et al. (2003) used HRA value as a measurement tool and found that

employees' participation in a Management Development Program increased the value

of the individuals towards the organisation. Researchers portrayed HRA as an

alternative accounting system to measure the cost and value of employees for

management decisions. Though investments in training and development are sound,

certain individuals do not show any evidence of increased value. It seems reasonable

that if, after fair deliberation, it was found that efforts to further develop an employee

were in vain, resources should be diverted to employees whose performance and

potential could be enhanced.

Puett and Roman (1976) concluded that HRA information can be used in guazing

Potential worth of individuals.

HRA can be useful in the evaluation process by developing reliable methods of

measuring the value of people of an organization (Sharma, 2012, pg 29).

[Link] Training and Development

Brummet, Flamholtz, and Pyle (1968) say that management needs to be able to

estimate the value of training and development programs. Most successful enterprises

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invest heavily in training and development programs for employees throughout the

organization, without even an estimate of expected payoffs or return on investments.

Craft J.A. and Birnberg H.G (1976) suggested the use of HRA in Training decisions.

HRA can assist the human resource manager in developing measures for cost of

training new employee which may prove beneficial in choosing best alternatives

training programs. Researchers concluded that human resource accounting will obtain

greatest acceptance as an aid in personnel management operations analysis (e.g.,

turnover cost analysis, training cost analysis, costing out selection procedures, and the

like) and in evaluating managerial performance, especially in service-oriented

industries.

Puett and Roman (1976) concluded form their research that 61% respondents say

that HRA information is useful in training related decisions.

[Link] Compensation Management System

Rhode, Lawler and Sundem (1976, p.20) questioned, should individual employees

be allowed to earn their imputed values? Doing this possibly might lead to greatly

increased dissatisfaction with pay unless pay rates and human resource values were

directly proportional to each other. On the other hand, HRA might be a blessing to

salary administrators, if it would provide them with the kind of information they have

long needed to place salary administration on an objective footing. Knowledge of

individual human resource values could also affect employee bargaining power, both

within and outside the company. Further, they (p.16) said that under marginal

productivity theory human resources are paid a wage equal to their marginal

productivity. As more human resources are added to a fixed amount of physical

capital, the marginal (and average) productivity of the human resources falls.

Therefore, the average product (value in dollars) of the human resources is higher than

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the marginal product (cost in wages). In equilibrium and under perfect markets, and

assuming that the only relevant exchange is employees' time and effort for monetary

remuneration, the difference between average and marginal productivity for human

resources represents the appropriate return to the physical capital employed. Under

such idealized conditions the gross value of a firm's human resources is equal to the

wages it must pay to retain them. As a result, according to marginal productivity

theory, net human resource value in equilibrium should be zero.

Rakholia and Makwana (2102, p.115) said that human resource evaluation permits

rewards to be administered in relation to a person’s value to an organization. Puett and

Roman (1976) concluded that HRA information can be used in salary reviews.

Committee on accounting for Human Resource in the Accounting Review gave the

matrix which portrays the behavioral impact in terms of cognitive and decision

behaviour. Decision behaviour shows the areas in which HRA has been hypothesized

to have an impact, such as selection, transfer, promotion and performance evaluation.

Figure 2.1: Matrix showing Behavioural Impact of HRA

Source: Committee of Accounting for Human Resource, p.121

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2.2.3 EMPLOYEE MOTIVATION

Motivation plays a key role in employee job performance. Thus, employee

motivation has long been a central research topic for researchers and practitioners. As

a result, an abundance of theories and approaches were developed in order to explain

the nature of employee motivation both in the private and the public sector. However,

most of these studies focus on the materialistic gain based motivation level of

employees such as compensation, rewards, etc. However, literature falls short of

motivating factors that are based on employee feelings which is called perceived

equity. It includes Fairness in the financial and non-financial rewards, Adequate pay,

Adequate recognition, Freedom at work, Feedback from colleagues, Perceived equity

with their peers, Equitable environments, Organizational justice, Performance is linked

to rewards (Julie, M. H., Arthur V. H., 2001). The problem is that with the effects of

the latest IT revolution and rise in income levels of the employees, management need

to practical ways that can help motivate employees to be productive and get “more for

less”.

According to the research conducted by A. Ali and M. Akram (2012), the result

showed a positive impact of financial rewards on employee’s motivation and

satisfaction. Financial rewards leads to employee’s motivation. Ali R. and Shakil

(2009) proved that there is a statistically significant relationship between reward and

recognition respectively, and motivation and satisfaction. Prasetya A. and Kato M.

(2011) also analyzed that there are significant influences from both financial and

nonfinancial compensations to the employee performance.

Khan F. (2013), said on an average 85% of the employees in an organization are

motivated by performance appraisal. The predictions of the model are consistent with

various empirical findings. These comprise (i) the observation that managers tend to

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give positive appraisals, (ii) the finding that on average positive appraisals motivate

more than negative appraisals, and (iii) the observation that the effects of appraisals

depend on the employee's perception of the manager's ability to assess performance

accurately. Although many factors contribute to productivity, job performance is

viewed to be the most influential one (Mitchell, 1982, p.82). As it is clear that work

motivation does not determine employee’s level of performance, but it does influence

his/her effort toward performing the task (Ahlstrom, Bruton, 2009, p.198). The role of

motivation in performance can be summarized in the following formula:

Performance = Ability x Understanding of the task x Motivation x Environment

Accordingly, in order to perform well employees need first to have the knowledge

and skills that are required for the job. Then, they must understand what they are

required to do and have the motivation to expand effort to do so. And last, employees

need to work in an environment that allows them to carry out the task, e.g. by

allocating sufficient resources (Mitchell, 1982, p.83). The multiplication sign in the

equation emphasizes the importance of motivation – if motivation is equal to zero,

even the most talented employee will not deliver. Similarly, an energized and highly

motivated employee can reach good performance despite having some knowledge gaps

(Landy, Conte, 2010, p.365). A good example for the latter situation is a new worker

or trainee, who joins the organization fully motivated to work, yet lacks skills and

experience. The motivation to learn and develop will quickly outweigh the weaknesses

(R. Yair, 2011).

Effects of HRA on Employee’s mindset

Employees and unions may not like the idea, because HRA may lead to division

among the ranks of employees. A group of employees may be valued lower than their

real worth owing to reasons beyond the control of management. The employees may

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resist the idea of being treated like second class citizens, despite their contribution over

a period of time (Narayan, 2010, p.241). The notion of viewing people as resources

and attempting to measure their value may be offensive to some people. It may seem

to run counter to an increasingly humanistic orientation in management theory

(Flamholtz, n.d.). Whereas Wright (1970, p.53) says that measuring human resource

value is not dehumanising them. Instead, it can restore the personality of each man in

complex organization and lead the way to more humanistic treatment of employee.

When managers are informed on financial facts, and thereby enabled to act as

“economic men,” the results are often consistent with sound human relations.

(Narayan, 2010, p.240) It is possible that apprehension regarding the effect of

HRA on human behavior may have forced the organization to be reluctant to use this

system. HR accounting may lead to alienation as the people might feel that they have

been reduced to as industrial input commodity. Adding to this, Rhode, Lawler and

Sundem (1976, p.20) said that publicizing human resource data could also have a

disastrous impact on the attitudes of employees whose resource values are declining.

These employees may leave the organization or suffer loss of self-esteem.

2.3.4 ORGANISATIONAL STRATEGY

Roos, Fernsrtom and Pike (2004) has linked human resource management (HRM)

and business performance. The paper studies the change of the HR function into HRM

taking on its current strategic role. Lawler (2009) said that Corporate Boards need

metrics that accurately report on the condition of the organization’s human capital.

They also need analytics that show how the management metrics drive corporate

performance. Flamholtz, Bullen and Hua, (2002, p.948) said if management has gone

through the process of measuring and has HRA information available, it is likely that

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important management decisions such as those involving job cuts and layoffs will be

made differently.

Ogan (1988) reported the results of a field experiment designed to assess the

impact of HRA information on layoff decisions made by managers. The findings of

this study indicates that HRA information does make a difference in personnel layoff

decisions and enables managers to increase their level of confidence regarding

decisions of this sort.

Singh (2003) gives a broader approach to looking at SHRM by integrating various

functions and establishing the linkage of these functions with the business plan. It is

important not only to identify HR competencies in concurrence with the business

needs and develop selection and development practices to secure those competencies,

but also to evolve and implement a performance evaluation plan that links the

performance of the employees to the strategic goals. It is essential to have

strategically-linked compensation system to improve firm performance and to retain

employees with required competencies.

According to Lawler (1984), once the strategic plan is developed it is necessary to

design reward systems that will attract the right kind of people, motivate them to

perform optimally, and create a supportive climate and structure. In strategic scenario,

the compensation offers more variety in terms of benefits like stock options and

bonuses (Krishnan and Singh, 2004). A later study (Yeung and Ulrich 1990) found

that the manner of alignment between HR and business strategy had an impact on

organisational performance.

Brummet R.L., Flamholtz E.G. and Pyle W.C. stated that non existence of cost,

current condition or value of orgnisation’s manpower assets have long term

consequences on process of acquiring, developing, allocating and utilizing human

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assets which affects the ultimate objective of long term profit maximization. Non-

availability of human asset information makes acquisition and development decisions

of human resources difficult to justify in terms of a cost-value calculus. Similarly,

return on investment on human resource investments is difficult due to unavailability

of data. Availability of human resource accounting information will enable managers

to make decisions differently and human assets will be managed more effectively.

This is a testable hypothesis rather than an arbitrary assumption.

2.3.5 HR’s CONTRIBUTION IN PROFITS

Theeke and Mitchell stated that human resource managers are at an inherent

disadvantage as they have difficulty showing a tangible result of their expenditures.

By creating a framework for reporting human resource liabilities, more accurate

valuation of the firm can be done to help human resource managers compete for

resources, and provide data about how human resource practices affect firm value. In

the end, what matters is the effect human resource managers have on firm value. For

example, by increasing employee loyalty and reducing attrition, the benefits of

training programs remain within the firm. Similarly, better manager training may

result in reduced negligent hiring and employee harassment. A human resource

liability paradigm helps us to quantify financial effects of human resource practices

and contribute to a better understanding of the practices’ value.

HRA is also assumed to be a management tool for effective decision making.

Thus, quick and correct decisions save lot of time and money.

Schuler and Jackson (1987 cited in Krishnan and Singh, 2004) discussed the kind

of HRM system needed to align the human resources to three kinds of competitive

strategies, namely innovation, quality enhancement and cost reduction strategy.

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Managers need estimates of their firm’s ratios of investment in human resources to

total assets as an indicator of profit making potential. A positive correlation exists

between investments in the acquisition, orientation, training, retraining, and retention

of human resources, and the future profitability of corporations. The idea suggests

that, atleast in enterprises in which the human resources are critical factor of

production; high profits can be ultimately expected from a high human asset

investment ratio. (Brummet, Flamholtz, and Pyle, 1968)

Thus, there are many ways in which HRA helps in saving costs and influences

employee to be productive thereby increasing the profitability of the organization.

2.3 RESEARCH GAP

As discussed, in the first part of literature review, one main problem is non-

acceptance of Human Resources as Assets. However, a lot of literature is available

that discussed about the parameters of their acceptance and non-acceptance. Thus,

from the discussion it is inferred that ‘asset’ needs to be redefined so as to include

human resource in it and quantify human resource.

Other problems also have realistic and simple solutions.

· The minor costs involved in HR processes can be approximately ascertained while

calculating human resource value.

· HR Accounting is required to be made mandatory by Indian and International

accounting standards.

· Companies can train internal staff or outsource HRA to ensure that expert

requirements are met.

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· ROI of human resource accounting is intangible but has lot of potential to stop

wastage of money. Group performance is needed to be considered to determine a

performance of an individual.

· Appreciation or depreciation of employees can be ascertained based on the

employee’s performance. Performance of an employee will be a better base for

calculation of value of human resources instead of salary.

· Involving unbiased experts in using human resource value would help to avoid the

HR gimmicks.

· HRA value of employees need not be disclosed, to avoid programmed society.

· However, unawareness of the concept is a concern. HRA definitely has a utility in

making various decisions but it needs to be systematically proved.

Lack of awareness

Very few IT Companies have successfully adopted and consistently declared the

value of its human resources to the stakeholders. Despite the importance attached to

human capital in the IT Industry HRA is still at an infancy stage in India. From the

literature, it is evident that the awareness level about the HRA is less among the Indian

companies. Lack of awareness is one of the main reasons for the slow growth of this

concept.

Lack of knowledge about the utility of the HRA information in HR decisions

Andrew Mayo (2004) comments that the desire to be more professional in the area

of measurement is a growing interest for today’s HR function. The universal desire of

the HR function for stronger business partnership is a stimulus to be more “business-

like” - and that requires a more numeric approach to HR management. Hence, a few

companies have implemented HRA. But taking a look at the practical aspects in Indian

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scenario, an analysis of big companies like BHEL, SAIL, ACC, etc, revealed that the

HRA is implemented and displayed on balance sheet just to improve their image in

society and pose cosmetic transparency in their working to win awards of give a feel

good factor to employees. There were no traces of use of HRA information on any of

the organizational decisions. Supporting the fact Narayan (2010, p.241) said there is

no empirical evidence to support the idea that HRA is an effective tool to measure the

economic value of people to their organization. There is very little data to support the

contention that it facilitates better and effective management of human resource. The

most apparent reason for the non acceptance of HRA is an absence of demonstrated

usefulness. (Rhode, Lawler and Sundem, 1976, p.13)

No study has been attempted in the Indian IT context to understand the reasons for

adoption of such valuation practices by these few Companies. Few research paper talk

about the said fact but are more of theoretical and from researcher’s perspective.

From the literature, it is evident that one of the major reasons for non-implementation

of HRA is the lack of knowledge about the utility of the said information. It is

obvious for the organization to not invest in something which has no utility or its use

is not known or confirmed. As it is assumed that HRA value and HR practices are

correlated, a link can be created between the two. Researcher needs to find out

whether they are positively correlated or negatively correlated.

Organizational Profitability

For a long time now, HR function has been considered as a staff function as it

never was a part of strategic decisions nor it could show its contribution to

profitability. No traces of it were found in literature. HR managers have long been

waiting for a method that would evaluate the performance of HR function and prove

its role in organizational performance and thereby profitability. The answer to this is

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HRA. HRA do not directly impact the profitability of the organization, but an indirect

relation can be shown between the two. With the knowledge that they are being

valued, employees are motivated to contribute higher towards the organization. They

become more productive and loyal thereby reducing attrition rate which in turn

reduces recruitment, training and other related costs. However, there is dirt of

researches which talks about the said fact.

Impact of HRA on Employee Motivation

As discussed lot of researches talk about the impact of HRA on investor’s

decision, few papers have shown impact on manager’s decision. However, no research

is available that would show the impact of the HRA implementation on the most

important stakeholder of the company i.e. employee. Literature talks about the change

in mind set of employees either positive or negative, but it is more of opinion based.

This research is an attempt to bridge this gap in literature, especially in the view of

comparative analysis of Government and Private Hospitals in Rajasthan.

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SECTION B- RESEARCH METHODOLOGY

2.4 SCOPE OF THE STUDY

In India healthcare is delivered by both the public and the private sectors. The

public healthcare system consists of healthcare facilities run by Central and State

Governments which provide services free of cost or at a subsidized rate to the low

income group in rural and urban areas. With the Indian economy enjoying a steady

growth, the industry is heading towards growth phase. In India, 80% of the healthcare

expenditure is borne by the patients and that borne by the state is 12%. The

expenditure covered by insurance claims is 8%.

Entrepreneurs and technocrats in the private sector see immense opportunity for

ROI in this sector. There is enough evidence to justify a higher inclination to pay for

medical services out of one’s own savings or through organizational perquisites. The

era of charity, either by a social organization, or by the government, that existed in the

pre independence days is no more relevant and prevalent. Strides made are

commendable in the area of medical science and research. Unfortunately, Government

hospital administration is lagging far behind when compared to the corporate hospitals.

Human Resource is one of the five essential resources available to any organisation

including hospitals. It is also considered as the most significant and valuable asset

which a company possesses and on which its profitability depends, yet the accountants

have not given adequate attention to develop criteria to value Human Resources

(Assets) and to show them in the Balance Sheet. If the accounting is to provide

meaningful information about the state of affairs of a company, it must develop

standards to measure the value of Human Resources both for financial reporting and

also as an aid to managerial decision-making.

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Thus the present research study is entitled to comparatively investigate the Human

resource accounting practices in selected Government and Private Hospitals of

Rajasthan .

2.5 OBJECTIVES OF THE STUDY

The overall objective of the study is to comparatively assess the role and

effectiveness of human resource accounting practices in Government and private

hospitals in Rajasthan State. The specific objectives of the study are:

1. To comparatively investigate into the different Human Resource Accounting models

in Selected Government and private hospitals, particularly focusing on the problems,

limitations and effectiveness of these practices.

2. To identify the reasons for the high rate of employee turnover in the private

hospitals in Rajasthan.

3. To examine whether factors influencing human resource accounting differ with

cadre of hospitals under different managements .

4. To examine how human resource accounting practices can be improved and a

favorable work culture can be introduced specially in private hospitals.

5. To draw some conclusions and make recommendations for the effective human

resource accounting practices in selected Government and Private hospitals in

Rajasthan.

2.6 HYPOTHESES

A supposition; a proposition or principle which is supposed or taken for granted, in

order to draw a conclusion or inference for proof of the point in question; something

not proved, but assumed for the purpose of argument, or to account for a fact or an

occurrence; as, the hypothesis that head winds detain an overdue steamer. A

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hypothesis being a mere supposition, there are no other limits to hypotheses than those

of the human imagination.

The following hypothesis has been formulated for current research study:

Null Hypothesis: Ho: There is no significant difference between human resource

accounting practices following by selected Government and Private Hospitals.

Alternate Hypothesis: H1: There is a significant difference between human resource

accounting practices following by selected Government and Private Hospitals.

VARIABLES FOR HYPOTHESIS TESTING

1. Impact of Human resource accounting model in overall profit of Hospital.

2. Role of Human resource accounting practices in employee turnover specifically

Doctors.

3. Impact of Human resource accounting policy in satisfaction of patients with respect to

treatment undergone at hospitals.

2.7 RESEARCH DESIGN

RESEARCH DESIGN - Exploratory and descriptive

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SAMPLE DESIGN:

Table 2.1

The study is restricted to following Private and Government Hospitals of Rajasthan viz.,

[Link] Government Hospitals Private Hospitals

1 SMS Hospital , Jaipur EHCC Hospital, Jaipur

2 J K Loan Hospital, Fortis Hospital, Jaipur

3 Janana Hospital, Saket Hospital, Jaipur

4 Kanwantia Hospital , Santokba Durlabhji Memorable

5 Jaipuria Hospital Manipal ( Sony) Hospital, Jaipur

PERIOD OF STUDY

The present study covers a period of 5 years from 2012-13 to 2017-18 in selected

Government and private hospitals of Rajasthan. This 5 year period is chosen in order to have a

fairly long, cyclically well-balanced period, for which reasonably homogenous reliable and up-

to-date human resource accounting data is available.

SOURCES OF DATA

The study is based on the primary as well as secondary data.

PRIMARY DATA

In this research study Primary data was collected through survey interviews and

questionnaires from the respondents ( employees of Selected Government and Private

hospitals) for the better understanding of role and importance of Human resource accounting

in selected hospitals. There were few factors which could not be observed through the

responses of questionnaires hence interviews were taken. Also the survey interview and

questionnaires were designed with both close ended and open ended questions.

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The study employed both qualitative as well as quantitative methodology that is both

numerical and non numerical data and information was used.

Sampling Instrument: A structured closed - end Questionnaire was used.

Sample Size : 200 employees including Doctors of selected hospitals under study

SECONDARY DATA

The data relating to the selected sample Government and Private have been collected from

the Annual reports database for the study period. Human resource accounting of private

hospitals calculates this and incorporate in their annual repots while Government hospitals are

subsidized sector, thus we have used other relevant information to analyze the factors in our

study. Other relevant information is also obtained from Hospital Association Reports, Journals

and Publications, Annual Survey of Healthcare Industry, Papers, Magazines etc. Various

relevant websites have also been used for collection of secondary data and have been

comprehensively searched.

DATA ANALYSIS

In order to achieve the objectives of the study, the present study evaluates the

data drawn from the set resources in different ways. The data obtained have been

duly edited, classified and analyzed as per the requirements of the study. Statistical

measures like Mean, Standard Deviation, Co-efficient of Variation, ANOVA,

Compound Annual Growth rate, indices, Correlation and Regression have been

applied.

TOOLS OF ANALYSIS

In this section it is intended to briefly outline the various statistical and

economic techniques employed in the study.

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HUMAN RESOURCE ACCOUNTING MODELS

A. Lev and Schwartz Model

For this they propose that the value of human capital in current study is determined as

follows:

1. All employees are classified into specific groups according to their age and skills;

2. The average annual compensation is determined for different age groups;

3. The calculation of total compensation that each group mntioned in point 2. will be

up to retirement age;

4. The total remuneration will be calculated at a rate discounted cost of capital. The

value arrived at will be the value of the asset / human capital;

According to this model, the formula to calculate the expected value of human capital

of an employee is as follows:

Where,

= The human capital value of a person with τ years old;

The person's annual earnings up to retirement. These values are plotted through the

profiles of income;

r= Discount rate specific to the person;

t=Retirement age;

= Conditional probability of an elderly person τ to die in year t.

B. Morse Model

The method involves the following steps:

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1. Determine the gross value of services to be provided by employees in the future,

based on their individual and collective capabilities.

2. Determine the value of future payments (direct and indirect) for employees.

3. Determine the excess of the future value of human resources (as in 1.). On the value

of future payments (as in 2.). This represents the net benefit to the organization's

account of human resources.

4. The present value of net benefit is determined by applying a discount rate pre-

determined (usually the cost of capital). This amount represents the value of human

resources for the organization. In a context of certainty, this may be expressed as

follows:

where:

A = value of human assets to a formal organization;

N = number of individuals currently employed by the organization;

y = current time;

T = highest time at which an individual currently employed leaces the organization;

net value of the services rendered by individual i at time t to the organization,

gross value of services rendered by individual i at time t to the organization;

all direct and indirect compensation given individual i at time t by the organization;

X (t) =value of the services of all individuals currently employed working together in

excess of the value of their individual services at time t;

r = time value of money.

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(A) MEAN

It gives a single value to describe the whole data. It has been obtained by

adding the values of all observations and dividing it by the number of observations.

Formula for Mean

(B) STANDARD DEVIATION: Standard Deviation measures the absolute dispersion

or variability from the mean values. The standard deviation values have been

calculated by using the following formula:

(c ) CO-EFFICIENT OF VARIATION (CV)

It is used in problems which require comparing the variability of two or more

than two series. Series, for which the co-efficient of variation is greater, is said to be

high variation or less consistent. On the other hand, the series for which co-efficient

variation is less, is said to be least variation or more consistent. In the analysis of

financial data, less co-efficient of variation in this ratio is taken to relatively better

control of management on that ratio. It is determined as follows.

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(d) Analysis of Variance (ANOVA)

“F” Test is one of the most important tools for conducting statistical analysis. It is

used in various fields like economics, education, sociology, biology, psychology,

business and industry. It has been developed specially to test the hypothesis whether

the means of several samples have significant differences or not. The analysis of

variance furnishes a technique for testing simultaneously the significance of

differences among several means. From this technique one is able to determine

whether the samples have the same mean as the population from which they have been

drawn. According to Levin, “Analysis of variance is the test for the significance of the

difference between more than two sample means using analysis of variance. One will

be able to make inferences about whether the samples are drawn from population

having the same mean.”

Levin describes the following three steps in analysis of variance:

1. Determine one estimate of the population variance from the variance among the

sample means.

2. Determine a second estimate of the population variance from the variance within the

samples.

3. Compare these two estimates. If they are approximately equal in value, accept the

null hypothesis.

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SCOPE OF THE STUDY

q FUNCTIONAL SCOPE

Functional scope of this study is to comparatively analyze the role and importance

of Human resource accounting in Private and Government Hospitals of Rajasthan.

q GEOGRAPHICAL SCOPE

In this study researcher selected 5 Government Hospitals ( Which are subsidized

by State Government ) and 5 Private Hospital of Jaipur, Rajasthan, which are

following Human resource Accounting Practices. So, whole Rajasthan is geographical

criteria for this research study

RELEVANCE OF STUDY

Ø To help other researchers in their study.

Ø To help public & private sector hospitals companies to function effectively in view of

human resource accounting for the betterment of the hospitals and society at large.

Ø To giving suggestions to the government for taking decisions for the effective

implementation of the human resource accounting practices in Government sector too.

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REFERENCES

· Brummet, R.L., Flamholtz, E. and Pyle, W.C. (1968b). Human Resource Measurement

– A Challenge for Accountants. The Accounting Review, April, 43, pp. 218,222

· Committee on Accounting for Human Resources, n.d. The Accounting Review, nd,

p.121 Edmonds, C.P. and Rogow, R. (1986). Should Human Resources Be Reflected

on the

· Balance Sheet? Magazine for Financial Executives, January, 2(1), p.42, 43,44

· Narayan, R. (2010). Human Resource Accounting: A New Paradigm in the Era of

Globalization. Asian Journal of Management Research, p. 239, 240, 241

· Otter J.,n.d. Putting The People Component Of The Business Entity On The Balance

Sheet, s.n., p.3,5,6

· Puett J. and Roman D., 1976. Human Resource Valuation. Academy of Management

Journal, December 1, 19(4), pp. 660

· Rhode J.G., Lawler E. E., And Sundem G. L., 1976. Human Resource Accounting: A

Critical Assessment. Industrial Relations: A Journal of Economy and Society,

February, 15(1), pp. 13, 14,16,17,18,19,20,21,22

· Wright R., 1970. Managing Men as Capital Assets. Management Review, April,

p.52,53

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