Human Resource Accounting


Human Resource Accounting Essay, Research Paper

Although human resource accounting is a relatively new field, its development has passed through certain stages. The first stage of development from 1960 to 1966 was marked by interest in the HRA and HRA concepts. The initial motivating factors for the HRA came from economic theory on human capital, leadership determining skills and a concern to develop humans as good sources of capital for companies. This leading to an increase in popularity and production from all those involved in human resource accounting.

One of the most significant events that seemed to renew interest in the HRA was the descion by the U.S offices of the Naval Research to sponsor a research project dealing with the application of HRA to naval human resource management issues. In dealing with these issues n a day to day basis, HRA was ablebe used to increase the productivity of the project as well as to use human output as a productive source. As a result, HRA is beneficial and and high demand.

This sudden surge in popularity of the HRA came at a time when companies were relying less

on industrial equipment and more on human production. In the past, companies based more of their production output on plants and plant production. Howver, that has all changed in recent years and more responsibility is being placed on HRA and the people reinforcing it.2

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