HR accounting as a measurement tool

In tracing the history of human resource accounting, most reviewers would agree that the topic is now experiencing something of a revival. This research set out to explore why HR accounting is regarded as important, to whom it is important and its links with organisational and HR strategies. We used a survey-questionnaire approach to gather data. A scale was developed measuring the extent to which respondents thought each item reflected their organisation's view on the importance of measuring of human resources. Component analysis revealed two reasons why measuring human resources is perceived as being important. The first illustrates the view that ‘measurement reflects the strategic and competitive importance of human resources’, while the second suggests that,‘to earn credibility, HRM must be expressed in financial terms’. Further analysis highlighted the importance of senior management and financial managers' support for measuring human resources and drew attention to what may appear to be a ‘hard view' of HRM held by HR managers in relation to why they consider this important.

[1]  Chris Dawson.  Human Resource Accounting , 1994 .

[2]  J. Boudreau.  Strategic Human Resource Management Measures: Key Linkages and the PeopleVantage Model , 1998 .

[3]  G. Turner.  Human Resource Accounting — Whim or Wisdom? , 1996 .

[4]  Ulf Johanson.  WHY THE CONCEPT OF HUMAN RESOURCE COSTING AND ACCOUNTING DOES NOT WORK: A LESSON FROM SEVEN SWEDISH CASES. , 1999 .

[5]  R. Roslender,et al.  Accounting for the worth of employees: A new look at an old problem , 1992 .

[6]  Ulf Johanson,et al.  Current development in human resource costing and accounting: Reality present, researchers absent? , 1998 .

[7]  Mark A. Huselid.  The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance , 1995 .

[8]  R. Roslender.  Accounting for the Worth of Employees: Is the Discipline Finally Ready to Respond to the Challenge? , 1997 .

[9]  W. Cascio.  The Future World of Work: Implications for Human Resource Costing and Accounting , 1998 .

[10]  Jeffrey Pfeffer,et al.  Pitfalls on the road to measurement: The dangerous liaison of human resources with the ideas of accounting and finance , 1997 .

[11]  Stephen Wood,et al.  Human resource management and performance , 1999 .

[12]  N. Bontis,et al.  THE KNOWLEDGE TOOLBOX: A Review of the Tools Available To Measure and Manage Intangible Resources , 1999 .

[13]  Eric Flamholtz,et al.  Current Issues, Recent Advancements, and Future Directions in Human Resource Accounting , 1999 .

[14]  Philip H. Mirvis,et al.  Human Resource Accounting: A Measurement Perspective , 1976 .

[15]  C. Dziuban,et al.  When is a correlation matrix appropriate for factor analysis? Some decision rules. , 1974 .

[16]  J. Roos,et al.  Measuring your company's intellectual performance , 1997 .