Human Resource Accounting in Selected Public Sector Companies in India

Abstract

Employees of an organization form the core and heart of the business. It would not be wrong to say that the utilization of all the resources that a company employs majorly depends on its “Human Resources”. Hence, similar to the accounting treatment given to all the financial and physical resources of a company, the valuation and communication of human resources should also be a part of the financial statements of a company, marking the way for the concept of “Human Resource Accounting”. This study has made an attempt to analyze and examine the HRA practices followed by the public sector undertakings in India. The study has selected three PSUs namely- IOC, NTPC and SAIL and calculated five HRA metrics for these companies using their annual reports. The study also discusses HR related initiatives, various training and development programmes and HR policies of the selected PSUs.