Human Resource Accounting Based On Flamholtz Model

During the past decade, numerous articles have appeared in the literature discussing human resource value accounting. Flamholtz [1971, 1972A, 1972B], Lev and Schwartz [1971, 1972] and Morse [1973] are some of the more noteworthy contributors to the field. The first purpose of this paper is to present the human resource value models suggested by the author. The second purpose is to propose a human resource value model which builds upon and expands the conceptual frameworks suggested in these studies.

HRA also provides the HR professionals and management with information for managing the human resources efficiently and effectively. Such information is essential for performing the critical HR functions of acquiring, developing, allocating, conserving, utilizing, evaluating and rewarding in a proper way. These functions are the key transformational processes that convert human resources from ‘raw’ inputs (in the form of individuals, groups and the total human organization) to outputs in the form of goods and services. HRA indicates whether these processes are adding value or enhancing unnecessary costs