Overview of Human Resource Accounting Implementation
OVERVIEW OF HUMAN RESOURCE ACCOUNTING AND THE POSSIBILITY OF IMPLEMENTATION IN PT X
[pic]
by:
Adyarina Kusuma Prihandika
040913153
Faculty of Economics
UNIVERSITAS AIRLANGGA
SURABAYA
2011
CHAPTER I
INTRODUCTION
1. Background To ensure growth and development of any organisation, the efficiency of people must be augmented in the right perspective. Without human resources, the other resources cannot be operationally effective. The efficient and effective utilization of inanimate resources depends largely on the quality, caliber, skills, perception, and character of the people, that is human resources working on it. Human resource accounting is the measurement of cost and value of people to the organization. It involves measuring costs incurred by the organization to recruit, select, hire, train and develop employees and judge their economic value to the organization. Regardless of the explanations above, there are still limitations attached to the implementation of effective human resource accounting, such as no specific procedure or guidelines for finding cost and value of human resources, dehumanizing issue, the heterogenity of human resources itself and many others. (MBA –H4020) Human resource accounting that expresses the value of human assets will provide cognitive effects on human resources accounting information. Measuring and revealing human resources will need a theoretical framework to determine the type and determining factor for a company. That will help ensure the funds will be managed as effectively as possible to benefit the company in the implementation of human resource accounting. (Hitten:2008)
2. Problem Formulation Based on the information above, the problems investigated in this research are: 1. Why is human resource accounting considerable for the growth and development of PT X? 2. How much is the possibility of human resource accounting to be implemented in PT X?
3. Research
[pic]
by:
Adyarina Kusuma Prihandika
040913153
Faculty of Economics
UNIVERSITAS AIRLANGGA
SURABAYA
2011
CHAPTER I
INTRODUCTION
1. Background To ensure growth and development of any organisation, the efficiency of people must be augmented in the right perspective. Without human resources, the other resources cannot be operationally effective. The efficient and effective utilization of inanimate resources depends largely on the quality, caliber, skills, perception, and character of the people, that is human resources working on it. Human resource accounting is the measurement of cost and value of people to the organization. It involves measuring costs incurred by the organization to recruit, select, hire, train and develop employees and judge their economic value to the organization. Regardless of the explanations above, there are still limitations attached to the implementation of effective human resource accounting, such as no specific procedure or guidelines for finding cost and value of human resources, dehumanizing issue, the heterogenity of human resources itself and many others. (MBA –H4020) Human resource accounting that expresses the value of human assets will provide cognitive effects on human resources accounting information. Measuring and revealing human resources will need a theoretical framework to determine the type and determining factor for a company. That will help ensure the funds will be managed as effectively as possible to benefit the company in the implementation of human resource accounting. (Hitten:2008)
2. Problem Formulation Based on the information above, the problems investigated in this research are: 1. Why is human resource accounting considerable for the growth and development of PT X? 2. How much is the possibility of human resource accounting to be implemented in PT X?
3. Research
References: Abeysekera, Indra. 2007. Intellectual Capital Accounting: Practices in a Developing Country. Routledge. Bullen, Maria L & Kel-Ann Eyler. (2010) Human Resource Accounting and International Developments: Implications for Measurement of Human Capital. Chaudhry, Naveed Iqbal and Muhammad Azam Roomi. (2010) Accounting for the Development of Human Capital in Manufacturing Organizations: A Study of the Pakistani Textile Sector. Flamholtz, E.G. (1974b) Human Resource Accounting: A Review of Theory and Research. Hitten, Akhmad. (2008) Analisis Tentang Penerapan Human Resources Accounting. Likert R. (1971) Human Organizational Measurements: Key to Financial Success. MBA-H4020. Human Resource Accounting. Moleong. 2005. Metodologi Kualitatif. Revised Edition. Bandung: PT Remaja Rosdakarya. Roslender, Robin. (2009) So Tell Me Again ... Just Why You Would Want to Account for People?