Why have the many proposals for adoption by organizations of Human Resource Accounting (HRA) gone largely
unheeded? The following article reviews the case for HRA and the methods by which it has been suggested HRA
could be implemented, and also focusses attention on some sensitive issues which are exposed by the HRA debate. The
relationship between the value of work and the remuneration for work must be squarely addressed in any application
of HRA . That seems to ensure that HRA will be a managerial and industrial relations "hot potato", to be embraced by
organizations only with extreme caution.
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References
1.
Figler, H.P. , Accounting for Human Assets, Management Accounting, November, 1975, p,23.
2.
Hekimian, J.S., and Jones, C.H., Put People on Your Balance Sheet, Harvard Business Review, No.45, 1967,p.106.
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Gilbert, M.H. , The Asset Value of the Human Organization, Management Accounting, July, 1970, p.25.
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Likert, R., The Human Organization: Its Management and Value, McGraw-Hill , New York, 1967, p.103.
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Brummet, R.L. , Flamholtz, E.G. and Pyle, W.C., Human Resource Measurement — Challenge for Accountants, The Accounting Review, April, 1968, p.222.
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Adapted from Alexander, M.O., Investments in People, Canadian Chartered Accountant, July, 1971, p.41.
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Woodruff, R.L., What Price People?. The Personnel Administration, January-February 1969, p.20.
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Flamholtz, E. , Human Resource Accounting, Dickenson Publishing Co. Inc., 1974, pp.3-9.
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Alexander, M.O. , op.cit, PP.40-43.
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Flamholtz, E. , op.cit, p.36.
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Hekimian, J.S. and Jones, C.H., op.cit, p.108.
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Gilbert, M. H., op.cit., p.26.
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Ibid.
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Lev, B., and Schwartz, A., On the Use of the Economic Concept of Human Capital in Financial Statements , The Accounting Review, January, 1971, pp,103-112.
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Hermanson, R.H., quoted in Flamholtz , E.op.cit., p.174.
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Flamholtz, E., op.cit., p.115.
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Ibid., p.125.
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Likert, R. , and Bowers, D.G., Improving the Accuracy of P/L Reports by Estimating the Change in Dollar Value of the Human Organization, Michigan Business Review, March, 1973, pp.15-24.
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Becker, G.S. , Investment in Human Capital: A Theoretical AnalysisThe Journal of Political Economy, Supplement, October, 1962, pp.9-49.
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Ibid.
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Francis, J., Human Resource Accounting: New Wine in Old Skins? A paper presented during the Accounting Association of Australia and New Zealand Convention, August, 1973, at the Gordon Institute of Technology,Victoria, p.18.
