The Role of Human Resource Accounting for Gaining Competitive Advantage

Human resource accounting is the accounting methods, systems, and techniques, which coupled with special knowledge and ability, assist personnel management in the valuation of personnel in their knowledge, ability and motivation in the same organization as well as from organization to organization. The Human Resource Audit is an organized official process, which is designed to investigate the strategies, policies, procedures, documentation, structure, systems and practices with respect to the organizations human resource management. Human resource accounting and auditing helps management in identifying, measuring data and to audit human resource capital. Human resource accounting frames policies, procedures and various steps that is required for an organization. It is the measurement of the cost and value of human being to organization. It involves measuring costs incurred by private firms and public sectors to recruit, select, hire, train and develop employees and judge their economic value to the organization. Human resource audit is also a systematic formal process. Human resources are the people in an organization, so a human resources audit is a look at those people and the processes that put them in place to make sure the system is working efficiently. Human resource accounting and auditing are not legally binding in nature. The present paper focuses on the role and importance of Human resource accounting towards business competitiveness. The paper will also highlight the need, , benefits and challenges of Human resource accounting . Supriya. Gk "The Role of Human Resource Accounting for Gaining Competitive Advantage" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-2 , February 2019, URL: https://www.ijtsrd.com/papers/ijtsrd21555.pdf