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Objectives • • • • Discuss the concept of human resource accounting. Describe the advantages of human resource accounting List the methods of human resource accounting State true costs of planning and recruitment
Structure 1.0 2.0 3.0 Introduction Definition of Human Resource Accounting Need, Significance, Objectives for HRA 3.1 3.2 3.3 4.0 5.0 Need for HRA Significance of HRA Objectives of HRA
Advantages of HRA Methods of HRA 5.1 5.2 Cost Approach Economic Value Approach 5.2.1 Monetary Methods 5.2.2 Non-Monetary Methods
6.0 7.0 8.0
Limitations/Objections to HRA Controlling Manpower Costs True Costs of Planning and Recruitment 8.1 True Costs of Recruitment 1
2.0 10.8.0 13. In services like retailing.0 12.0 11. hiring. consulting firms etc. some methods of measuring the worth or value of human resource and related processes viz.0 True Costs of HR operations True Costs of HR operations per employee Summary Glossary Terminal Questions Answers to Self Assessments Answer to Terminal Questions Case Study 1. In service based economies. human resource accounting is “the process of identifying and measuring data about human resources and communicating this information to interested parties”. Thus Human Resource is a vital component of the company assets and is called – ‘Human Capital’. This is also true for other industries as all businesses need people. We have seen a global shift from manufacturing to service based economies in the past few decades. To arrive at a tangible worth or value of Human Capital. So apart from calculating the costs and investments in processes like recruitment. These methods or processes of measuring or quantifying human resource are termed as Human Resource Accounting.. academic institutions. 2 . hiring. have been developed.2 8. competencies of the employees are more significant. training etc.3 9. HRA also quantifies the value of employees in an organization.0 14. The American Accounting Association’s committee (1973).0 Definition of Human Resource Accounting (HRA) According to. the effectiveness of the organization relies on the skills of its employees and the services they render. Therefore the prosperity of the business is directly proportional to the quality and management of Human Resource. According to Flamholtz (1971) HRA is defined as “the measurement and reporting of the cost and value of people in organizational resources”.0 Introduction In this unit we shall discuss measuring the potential value of human resource or its contribution to the organization. placement and training.
The Institute of Chartered Accountants of India has not defined any standard or measurement to report HRA. There are a few organizations like BHEL and SAIL which understand the importance of HRA and emphasize on furnishing related information in their annual reports. it was imperative to measure value of people in the organization. These methods or processes form Human Resource Accounting. Human Resource Accounting helps the management take well informed decisions for the betterment of the organization. It also adds value to critical HR processes – Hiring. HRA provides vital information to the management and assists in effective human resource management. management takes decisions on various business aspects.2 Significance of HRA In any organization. Training. Developing.Featuring HRA related information is not a statutory requirement as per the Companies Act (1956). For instance an organization hiked the sales incentives to spruce up sales for a particular month. 3.3 Objectives of HRA The objectives of Human Resource Accounting are: • • • To provide cost/value information of Human Resource and associated processes to the management and assist decision making Enable effective management and monitoring of resources To report progress or retardation of human assets 3 . In order to identify whether or not they are moving in this direction. Objectives for HRA Need for HRA The need for Human Resource accounting comes from a simple belief that anything that needs to be improved needs to be measured first. This does not make HRA a superficial analysis. In absence of HRA there could be decisions which are seemingly profitable in the short term but may have adverse effects in the long run. In order to measure this a few methods were developed and employed.0 3. These decisions have both long term and short term implications. Once organizations realized the value of Human Resource and its contribution to the effectiveness of the business. Rewarding etc. 3. they felt the need of sustaining and increasing this value. The desired targets were achieved for that month.1 Need. Retaining. Significance. in the next few months the performance deteriorated drastically as the organization could not offer the same hiked incentives due to pressures on the bottom line. 3. However.
company B is more certain to be more successful as it has closed the technical gaps and also concentrated on valuing the human resource. the benefits of HRA are: • The adoption of the system of HRA discloses the value of human resources. Such information would give a long term perspective of the business performance which would be more reliable than the Return on Capital Employed under the conventional system of accounting. HRA can also be deployed to gain a competitive edge over other organizations.• Form the base for developing management principles by reporting financial outcomes of decisions taken Self Assessment Questions (a) (b) HRA is mainly used to calculate cost of Human Resource – True or False HRA identifies direct and indirect value attached to human resource – True or False 4. It also highlights reducible and unnecessary costs. However. It helps investors and stakeholder to make investment decisions.e. This helps in proper interpretation of Return on Capital Employed. In the long term.0 Advantages of HRA Apart from reporting the value of HR and HR processes. whereas the returns on investment (ROI) of training. For instance the cost of training and development will feature under ‘expenditures’ in the balance sheet. Thus it does not provide a complete picture to the investor. it will add a lot of value to performance and depict a true picture of the potential. Currently company A is doing better than company B as it has a product advantage. This enables it to stay ahead of others as it is more preventive to any loss or inefficiency on account of human resource HRA highlights the organization’s efforts towards development of its employees and measures the performance of Human Resource Development Function. It gives the promoters and investors a measure of efforts being made to enhance the organizational capability and a sense futuristic approach. HRA also implies whether the processes are genuinely necessary and are adding value. let us consider company A and company B competing each other in the market. employees) improves managerial decision-making specially institutions like direct 4 • . For instance. So if the organization is able to include such information in the annual/quarterly report. HRA not only helps internal decision making but also influences external decisions. The maintenance of detailed record relating to internal human resources(i. In conclusion. Also company B has instituted HRA in the organization. will not feature in the balance sheet. company B has revamped its research to close this product advantage gap.
0 Methods of HRA The two most common methods of HRA are: • • Cost Approach Economic Value Approach Cost Approach is based on the cost incurred by the organization on account of an employee. creating in their mind a sense of belonging towards the organization and would act as a great incentive. loyalty and initiative of the employees. the use of HRA will definitely improve the quality of management. and proper understanding of the evil effects of avoidable labor unrest / disputes on the quality of internal human resources. giving rise to increased productivity. Economic Value approach is based on economic value of the employees and their contribution. Self Assessment Questions (c) Prosperity of a business is directly proportional to the quality and ______________of Human Resource. layoffs and dayto-day maltreatment by supervisors and other superiors in the administrative hierarchy. Thus. The system of HRA would no doubt.• • recruitment versus promotions. This approach looks at the employees as assets and possible benefits due to these assets. because. The adoption of the system of HRA serves social purposes by identification of human resources as a valuable asset which will help prevention of misuse and under use due to thoughtless or rather reckless transfers. efficient allocation of resources in the economy . utility of cost reduction programs in view of its possible impact on human relations and impact of budgetary control on human relations and organizational behavior. 5 . would boost the morale. the fact that a monetary value is attached to human resources and that human talents devotion and skill considered as valuable assets and allotted a place in the financial statements of the organization. Human Resource Accounting is “the process of identifying and ______________data about human resources and communicating this information to interested parties” HR is the only function which is involved in HRA – True/False HRA helps control future costs – True/False (d) (e) (f) 5.efficiency in the use of human resources. demotions. pave the way for increasing productivity of human resources. transfer versus retention retrenchment or relieving versus retention.
and Replacement Cost. placement. etc. training. Also. It considers separation cost of existing employees and hiring. etc of the group. of a new group to replace an existing group to obtain services equivalent to those rendered by the existing group. Direct cost is the expense made on hiring. These costs can be further divided into direct and indirect cost. the fact that you cannot replicate people is also ignored. training. Current expense is the amount incurred to derive benefits in the current financial year.1 Cost Approach Cost is the expense to acquire a resource to obtain service and benefits thereof. This becomes the value of the group to the organization. This method has a limited application as it is very subjective. Certain other ways to classify cost are – Historical Cost. the value of the group will depend on the members comprising the group. Asset portion is the amount incurred on expected benefits in future. placement. (c) Methods for Valuation of Expense Centre Groups Flamholtz proposes 3 methods for valuation of expense centre groups here: i) Capitalization of Compensation This method involves capitalizing a person’s compensation to determine his value to the organization. 6 . This expense has two portions – current expense and asset portions. training. cost of new employees. Similarly. (a) (b) Historical cost is defined as the expense made on hiring. ii) Replacement Cost Valuation Replacement cost is defined as the cost that will have to be incurred on hiring. Opportunity cost method looks at what would have been the returns if the cost incurred on HR was invested somewhere else. development. Opportunity Cost. This method can be used to estimate the cost of building an effective group. etc. developing. in the past. This method is not ideal in the long run as it has subjective estimates. iii) Original Cost Valuation This method is similar to the replacement cost valuation except for it determines the value by considering the actual cost that was incurred for hiring. It also considers the salaries and other payouts. Replacement cost method is deployed to calculate the cost if existing employees were to be replaced by new ones.5. etc. training and placement of new employees while indirect cost is the time spent by the supervisors and trainers on these activities. training. For example: All the employees in the HR department may be earning 70 Lakhs annually. Even in this method the factors like group dynamics and teamwork are ignored. This method is not an ideal method as it ignores all non-monetary factors and determinants. Differentiating clearly between both is not easy.
Employees are free to switch over from one organization to the other. However there is a presumption that the employee will move from on role/state to another. This approach is also known as Human Resource Value Accounting (HRVA).2 Economic Value Approach The economic value of Human Resource is the financial benefits they offer through their services at present and those expected in future. The first is Expected Conditional Value which is the productivity.1 Monetary Methods i) Flamholtz’s Model of Individual Value According to Flamholtz the value of an individual is the worth of services offered by the individual in his current role/profile and the role/profile he may hold in future on account of a transfer or a promotion. There are monetary and non-monetary methods of calculating this value. So greater the job satisfaction. This approach can be considered for an individual. This depends upon the motivation and energy levels of the employee as well as organizational factors like environment. in a specified period of time. ‘Exit’ is also considered to be a state in this model. This value is difficult to derive as it has two dimensions. a group or the organization. transferability and promote-ability of the employee.2. so it is important to determine the probability of their turnover. There are some prerequisites to this model: • • • A clear differentiating structure of roles/states/positions an employee would move/progress during this career with the organization The value of these positions to the organization An employees’ expected tenure with the organization 7 . opportunities and need of the organization. higher is the expected realizable value. Flamholtz’s Stochastic Rewards Valuation Model The movement or progression of employees through different organizational roles/levels is termed as a Stochastic Process. This model assumes that employees generate value during the stochastic process. Second dimension is Expected Realizable Value which is derived from expected conditional value and the probability that the employee will be associated with the organization till his retirement or till the time he is productive. Job satisfaction is inversely proportional to employee turnover and therefore it is directly proportional to expected realizable value. The individual and organizational factors discussed above lead to job satisfaction. 5.5.
g.71 Total Value (USD million) 1.11 13.841 3.12 Category Executives Supervisors Workmen No of Employees 6.445 Per Capita (USD’000) 17. (1994 . The following steps are involved under this Model:(a) (b) (c) The gross value of the services to be rendered in future by the employees in their individual and collective capacity The value of direct and indirect future payments to the employees is determined The excess of the value of future human resources (as per “a” above) over the value of the future payments (as per “c” above) is ascertained.215 455 1. 1: NTPC’s HR value as per the annual report (1994-95) iii) Morse Model The value of human resource is equivalent to the present value of the net benefits derived by the enterprise from the services of its employees.705 Fig.76 15.95) as per the annual report.010 12. Discount factor (r) = 0.• Probability of movement from one role to another at specified durations ii) The Lev and Schwartz Model The Lev and Schwartz model is commonly used by Indian companies and is based on calculating the value by considering an employee’s current and future earnings. It assumes that an employee would stay for ‘t’ years with the company and ‘Ev’ is the value he can earn based on his current and future earnings. This represents the net benefit to the enterprise because of human resources. NTPC’s HR Value. It also considers a discount factor ‘r’ to adjust the difference between the value of current and future earnings. 8 . Ev = Ev = value an individual can earn based on current and future earnings I(t) = the individual’s annual earnings up to ‘t’ years or retirement age t r = assumption that an employee would stay for ‘t’ years = discount factor ‘r’ to adjust the difference between the value of current and future earnings E.
This 25% additional or exceptional earning indicates the value of human assets which are not listed in the balance sheet. Ramesh works as a Recruitment Manager. Mr. His services are currently worth USD100. Ramesh will provide services worth USD994. Flamholtz. but their existence in the company leads to creation of this exceptional earning. Let us assume that Mr. He is responsible for hiring 50-100 middle management and senior management employees. Human assets are not shown in the balance sheet. then that is the Economic Value of the HR group.000. These human assets are not owned by the company. This can be further extended to measure the value of a group. For example: the economic value of the HR department in the organization can also be calculated using the above mentioned approach. Example: A telecom company earns 25% more profit than its competitors.000 per annum (Note*).iv) Hekimian and Jones Competitive Bidding Model In this method managers bid for existing human resources and determine the value of the employee. v) Brummet. and Pyle’s Economic Value Model This method is based on the principle that the current worth of the services an employee can provide in future is equal to the resource’s value. The highest ‘bid’ is the value of that resource. This is the un-purchased good will model. Year FYI Services Worth (USD’000) 100 120 144 173 208 249 994 Increment 0 1 2 3 4 5 2010 – 2011 2011 – 2012 2012 – 2013 2013 – 2014 2014 – 2015 2015 – 2016 Total (Year 1 – 5) 20% 0ver previous year 20% 0ver previous year 20% 0ver previous year 20% 0ver previous year 20% 0ver previous year Therefore in the next 5 years. and his contribution in terms of services increases at 20% per annum. This model was 9 . Ramesh. If let say the current worth of the services that HR can offer in the future is USD100. vi) Hermanson’s Un-purchased Goodwill Model Hermanson proposes that exceptional earnings indicate the value of human assets. Ramesh continues to work in the same role for the next 5 years. Example: Mr. it’s only the value of his services. This model is based on the managers’ valuation of the employees. HR departments’ economic value is equal to the current worth of the future services the HR department can offer.000. Note* Please note this is not the salary of Mr. That is a telecom company earned USD8 8 billion profit and it competitors earned USD 6 billion profit.
If the processes. capabilities of an organization and involve group processes (Independent Variable).2 2. Psychometric tests. i) The Likert and Bowers Model This model developed in 1960s proposes use of casual.2 Non-Monetary Methods Non-Monetary methods rely on predicting the value of skills. 360 degrees Feedback etc. Examples: Managerial behavior. Now determining the value of the group becomes relatively easy. leadership are excellent and the organization culture is of meritocracy (intervening variables) then the second part of the battle is won.200 1. employee satisfaction. Examples: Organizational culture.6 0.8 End Results Variable Score 0. processes. capabilities attitudes of the employees in terms of rankings.800 3. • Casual variables are the ones which can be managed and controlled by the organization (Independent Variable).6 0. These automatically build the confidence that the organization will perform well on key performance metrics. 2 (Value starts at USD600.8 Intervening Variable Score 0. ratings or indices.4 Valuation of the Company (USD’000) 600 1.3 0.000) Scenario Casual Variable Score 0.intended to be deployed for published balance sheets. then the last and final part of the battle is won.2.3 0. A Hypothetical Example is provided for your reference in Fig.4 0. leadership. but it is also used now to forecast future performances. total productivity. If the dependent variables such as end-results of sales. environment. Intervening variables reflect the competencies. 2: Hypothetical valuation of the company based on the variables 10 . customer service are comparable with the best in the industry. organization structure. They are based on simple skills and capability inventory. 5.8 1. intervening and end-result variables to determine the value of a group to the organization.9 1. Examples: Sales. These methods can be a substitute to the monetary methods and also have predictive value. then the first part of the battle is won. cost • • Scenario: If the organization structure and the attitude of the middle management (casual variables) are superlative or comparable to the best.600 1 2 4 5 Fig. End-result variables reflect the achievements of the organization.9 1. Performance Evaluation. the efficiency and productivity of the organization (Dependent Variable).
_________________ methods rely on predicting the value of skills and capabilities of the employees in terms of rankings. 6. This will be the value of human resources of the Self Assessment Questions g. Economic Value approach is based on economic value of the employees and their _________________. Organ Model says. i. Certain other ways to classify cost are – Historical Cost. The economic value of Human Resource is the _________ benefits they offer through their services at present and those expected in future. The net benefits from all employees multiplied by their certainty factor will give certaintyequivalent net benefits. In____________________________ Model managers bid for existing human resources and determine the value of the employee. Casual Variables include managerial behavior and _______________. l. Organ Model requires the following to be determined: • • Net benefit from each employee.ii) Ogan Model Pekin Ogan (1976) has given “Net benefit model”. and _______________ Cost. while determining the value of human resources. • • • Most models are predictive Most models and evaluations are based on assumptions Value determined are not accurate 11 .0 Limitation / Objections to HRA Though the application of Human Resource Accounting in the HR sector has shown a positive trend. It is an extension of “net benefit approach” as suggested by Morse Model. ratings or indices. k. the certainty with which the net benefits in future will accrue should also be taken into account. j. Certainty factor at which the benefits will be available. Opportunity Cost. Opportunity cost method looks at what would have been the returns if the cost incurred on HR was ________ somewhere else. m. h. there are objections to HRA and it needs further work. n. According to Flamholtz the value of an individual is the ___________ of services offered by the individual in his current role/profile and the role/profile he may hold in future on account of a transfer or a promotion.
• • • • • • • Values or methods of determination are often subjective Conversion of non-monetary factors into commercial value is difficult In some methods. Some tips on controlling manpower costs are: • • • • • • • • Freeze hiring in certain months of the year Criteria for approval of manpower to be made stringent Encourage filling in positions from within Develop employee competencies by training and any other interventions Improve efficiency and effectiveness of work of employees so as to not hire additional employees Retain top performing employees definitely Ensure performance appraisals are fair Ensure review of performance is done monthly and areas of improvement are highlighted. HRA links these costs directly to the output in terms of earnings. compensation. important factors like human behavior are ignored Difficult to replicate the models over a period of time One cannot predict employee tenure in the organization External factors like market conditions and related factors are ignored Sometimes application of HRA is complex 7. no unfair expectations in terms of performance rating should be allowed to set in Encourage automation of business processes Encourage simplification of complex processes (eliminate non value adding process steps or processes) Follow industry best practices 12 • • • . All these costs contribute to costs of manpower. development. The management can compare the expenses made on HR related process and the benefit they derived from these expenses. orientation. Any alterations required in the cost structure or the processes can be determined. It also measures the return on investment by Human Resource Development. HRA assists in forecasting costs of manpower and associated activities for future business plans. hiring. It may also highlights unnecessary cost and reduce cost. Overall HRA can be an important tool in controlling manpower cost. training. HRA suggests what portion of the total spend should be allocated to HR and its development. placement. replacement etc. HRA gives the management a perspective to evaluate their past HR decisions and strategy.0 Controlling Manpower Costs Quite a few methods of Human Resource Accounting determine the monetary value of HR by considering cost of recruitment. This helps them conclude if the expenses were worth making and reasonable.
Sell the scrap and earn money. Deploy full HR portal. No personal telephone calls Proper utilization of RAW materials Recycle of waste RAW materials 13 .• • • • • Pay overtime to employees or incentivize them instead of hiring temporary staff or additional employees. Some tips on Cost Reduction Methods:• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Free Transportation Revise Telephone Policy Revise Travel Policy Revise Hotel Policy Introduce Video Conferencing instead of travel to the meetings Cut on Bonus / Incentives Provide VPN facility to work from home. they need online. No night stays. Restrict usage of Electricity like in bathrooms. training such as recruitment portals. e-learning etc. Reception etc Stop giving concession on Food and Snacks Reduce stationery purchase Both sides usage of white paper Switch off lights when not in use. Hire management trainees Encourage management trainees to work for experience on a stipend rather than a full salary. Restrict the supply of Tea / Coffee Restriction on Telephone call duration Reduce the inventories No overtime Reduction in Telephone / Mobile Phone calls Use Pool Cars in place of individual travel Re-negotiate Collective Agreement Petrol allowance can be reduced Remove the consultants / stop retainer charges Stop News Papers / Magazines Stop Training programmes Stop Get togethers Minimizing the Security Guards Restrict the travel plans for one day. for employees to get all support. Use low cost solutions for hiring.
0 True Costs of Planning and Recruitment All organizations have specific HR strategies which are aligned to their goals. registration fees for recruitment portals.2 True Costs of HR operations How do we calculate what is the HR Operation Cost for the Company? HR Operation Cost = Sum of Direct costs of HR + Sum of Indirect costs of HR Direct HR costs include salary. statutory processes. To employ these strategies HR needs to form various processes. software/hardware purchase. designing advertisements. Indirect cost would be the cost of time of supervisors and managers. etc. Direct cost will be the actual amount spent on recruitment whereas indirect cost will be the cost of time of supervisors. stationeries etc. For example: compensation study of comparable organizations in the industry may be undertaken to decide the salary levels or increments to be offered. advertisements. campus. internal job postings and salaries of recruitment executives spending full time on recruitment. seat/space cost occupied by HR employees. compensation. programs and systems. This is called planning.8. referrals. Direct cost would be cost of advertising. job portals. These sources could be consultants. This study may be outsourced and there is a cost for this study and it is part of the planning activities. development. managers on this activity. performance management. managers in HR spend on this activity. training. separation. This may also attract future human resources. internal job posting etc. Direct cost will be the actual amount spent on planning whereas indirect cost will be the cost of the time that supervisors.1 True Costs of Recruitment Once the organization establishes the number of employees it needs to hire in various functions. creating internal advertisements for encouraging referrals. Indirect HR costs include cost of payroll processing department called inter department cost. True Cost of Planning = Direct Cost of Planning + Indirect Cost of Planning This involves planning all HR activities like recruitment. training. True Cost of Recruitment = Direct Cost of Recruitment + Indirect Cost of Recruitment 8. The cost involved in all activities of recruiting human resources is called cost of recruitment. bonus. licenses. 8. 14 . Hence this cost is the direct planning cost. hiring. it looks at different sources to get right candidates.
q.3 True Costs of HR operations per employee How to calculate operation cost per employee? Direct costs of HR + Sum of Indirect costs of HR HR Operation Cost = Total No of employees in the organisation Self Assessment Questions o. This is called Planning. 10. where resources for making this available are inadequate. Direct HR costs include ______________. HRA and its benefits is hugely dependant on availability of complete.0 Summary In past few years there is considerable work and focus in the sphere of Human Resource Accounting. timely and relevant information. HRA assists in _______________ costs of manpower and associated activities for future business plans. There are efforts being made to quantify the worth of human capital. programs and systems.8. HR needs to form various processes. p. managers in HR spend on this activity. intellectual capital and relationship capita. stationeries etc. software/hardware purchase. Organizations. training. bonus. To employ these strategies. compensation etc. licenses. All organizations have specific HR strategies which are aligned to their goals. accurate. It involves Planning of all HR activities like recruitment. training and development. 9. There are different methods being employed to derive this value.0 Glossary 15 . hiring. Direct cost will be the actual amount spent on planning whereas indirect cost will be the cost of the ____________ that supervisors.
Replacement h. Non-Monetary m. Measuring e.11. 5.0 a. Contribution n. False c. Organization Structure o. 12. 2. Explain Likert and Bower Model of measurement of group value. Management d. Terminal Questions What is HRA and what is its significance? How would you differentiate between monetary and non-monetary value/worth of human resources? What are the advantages of HRA in modern day business? Describe the methods of controlling manpower costs. Hekimian and Jones Competitive Bidding l. 4. 6. True Answers to Self Assessment Questions b. True f. 3. Forecasting 16 . Financial j. True g. List 2-3 objections to HRA.0 1. Worth k. Invested i.
Lakshman did not want to disturb the existing set-up as it was doing well.2. How would you assess the human worth of Mr.0 5. This required 5 supervisors and 15 workmen. Refer section 2 & 3 2. the new set up was still not earning profits and the old set up remained where it was. Time q. than what it was when Mr. He wanted to extend the operations by adding another expertise in the same domain. Mr. The new manpower was trained as per the business needs.0 Answers to Terminal Questions 1. He decided to hire new supervisors and workmen. They ensured that the new manpower recruited came up to speed in double quick time.1 & 5. Case Study Questions 1.2 14. Lakshman’s plan to perfection. Salary 13. Lakshman despite training. Soon the business was thrice as big. Refer section 5. In a few months.0 4. He soon looked at new opportunities and modernized the business to capitalize on the new avenues. The business employed 15 supervisors and 50 workmen who worked with this organization for a long time and felt they were a part of it. Refer section 5. Lakshman took over his family business from his father. Lakshman took over.0 6. Lakshman’s old set up? 2. Refer section 4. What according to you are the reasons for the current crisis? 17 . This took away a major portion of his productive time and restricted his ambitious plans.2. Refer section 6. His tenured staff supported him all the way. The new set up required a lot of inputs and monitoring from Mr.2 3. Mr. Especially the supervisors drove Mr. Lakshman was an ambitious young man and desired to grow the business.2. Refer section 7.p.0 Case Study – Lakshman’s Dilemma Mr.
New Delhi: New Age International Publishers Aggarwala. Human Resource Accounting.com and www. Mr. (2009). what are they? Hint: 1. Details of these books are available at www. Personnel and Human Resource Management. (1997). not leveraging his internal expertise and promoting talent and making leaders out of them. India: Deep and Deep. S.C. REFERENCES Books • • • • • • Gupta.3.com. New Delhi: Anmol Publications. (1997).sveiby.com/topics/management-budgeting/aligning-hrbudget/ (Retrieved 21 May 2010) 18 . Training and Development.K. D. Do you think Mr. Human Resource Accounting. Lakshman was not strategic in his approach.com/articles/intangible_assets. 2. Malik. (2010).. P. Human Resource Accounting And Decision Making. E-References • • http://www. He was more of a manager than a leader. B. New Delhi: Anmol Publications.P. and Pyle’s Economic Value Model. He did not leverage his internal expertise.hr.V. R.html (Retrieved 21 May 2010) http://hr-management.toolbox.B. Selection.sapnaonline. Yes. RECOMMENDED READING • Gupta. Lakshman made a few incorrect HR choices while setting up the new business? If yes. (2010). Flamholtz’s Model of Individual Value and Brummet. R. (2008) Manpower: Planning. Human Resource Management. Human Resource Development. Flamholtz. New Delhi: Sultan Chand and Sons Mahapatro.K.infibeam. Mumbai: Himalaya Publishing House Tripathi.K. New Delhi: Anmol Publications Rao. 3. R.
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