Title: Human resource accounting policies and practices: a case study of Bharat Heavy Electricals Limited, Bhopal, India

Authors: Ramakanta Patra, S.K. Khatik

Addresses: Maulana Azad National Institute of Technology, (formerly Regional Engineering College), Bhopal, 462007, India. Department of Commerce, Barkatullah Unversity, Bhopal, 462026, India

Abstract: Human resources play the most important part in the development of an enterprise. Human resource accounting (HRA) helps to measure the value of employees, which helps management, take the vital decisions related to human resources in order to increase production. It requires the measurement of the performances of an organisation and the optimum use of the resources under its direct and indirect control. HRA has been analysed for a profit making heavy engineering public sector company, Bharat Heavy Electricals Limited (BHEL), Bhopal, India. The economic value model of Lev & Schwartz has been used for this study of BHEL to evaluate the HRA. The obtained results are verified by using the T-test. We have examined the correlation between the total human resources and the personnel expenses for their fitness and their impact on production of BHEL. The HRA valuation is important for decision making in order to achieve the organisational objectives and to improve the output.

Keywords: human resource accounting (HRA); value-added employee; capitalisation of human resource value; Lev & Schwartz economic model.

DOI: 10.1504/IJHRDM.2003.003407

International Journal of Human Resources Development and Management, 2003 Vol.3 No.4, pp.285 - 296

Published online: 06 Sep 2003 *

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