Abstracts

ASIAN JOURNAL OF MANAGEMENT RESEARCH

Special Issue No-1, 2011

International Conference on People Management: Issues & Challenges

ABSTRACTS

Creating more effective HR managers through Emotional Intelligence skills training
Author(s)- Anathbandhu Patra

ABSTRACT

Emotional Intelligence (EI), unlike Intelligent Quotient (IQ), is important for managerial success and competencies. Emotional Intelligence means the ability to monitor one’s own and other’s emotions to discriminate among them and to use the information to guide one’s thinking and actions.  It involves self-awareness (ability to understand one’s own emotions), self-management (ability to keep negative emotions and impulses under control), and self-motivation (the drive to achieve despite setbacks, developing skills to attain target and taking initiative to act on opportunities). It helps to: (a) enhance communicating skills, (b) adjust with others, (c) build team, and (d) manage conflict. Not only do most of us spend the largest portion of our day at work but our identity, self esteem and well being are strongly affected by our work experiences. It has been reinforced by many management thinkers of the world that social and personal competencies are vital for self awareness, optimism, and empathy which can enhance satisfaction and productivity at workplace. The workplace is the ideal setting for the promotion of these competencies which are ultimate combination of Emotional Intelligence. It is evident that there is direct relationship between these skills and productivity of employees. Corporate world have begun to recognize the importance of this direct relationship and emphasis is led to increase the employees’ emotional intelligence. In the workplace, this ability can greatly enhance interpersonal communication and people skills. So, it is important to understand what emotional intelligence is, how it can best be used at workplace to increase productivity and satisfaction and how this strength of individual can turn around his life. Hence, it is necessary to create more effective HR Managers through Emotional Intelligence Skills Training.

Read full text

A study to assess emotional intelligence and performance of Managers in
Co-operative and Gramya Banks in Orissa

Author(s)- Chandra Mohan Patnaik.B

ABSTRACT

This paper investigates the relationship between emotional intelligence and work performance of executives. The present emotional intelligence, emotional quotient has been used as the measure.  The sample for the study was executives of middle and top level management from executives working in the Co-operative bank and Gramya Banks in Odisha. For the purpose of confidentiality the name of units has not been disclosed. The Odisha was selected for the study from the point of view of accessibility of the researcher to collect the data and able to finish the research with in a stipulated period. It is felt that the Odisha’s organizational entities are considered as organizations with in organizations.. The data on performance of these executives were collected from Banks. The objective is to study perception of employees of co-operative banks and Gramya banks to EI. In support of research 216 questionnaires distributed to the employees of the bank under study, of which 169 responded. To measure perception level of participants with regard to EI various variables identified and assigned perception score to different options. Final score for each variable are calculated by multiplying the number of response by the weight of the corresponding response.    The conclusion from this is that the performance appraisal process of banks itself needs evaluation. The perception level of the employees of Co-operative bank and Gramya banks are under study seems to be matured one. High EQ is necessary for better performance in the banking sector. But, high EQ cannot be the only requirement for good performance on the job. Hence, the findings to that extent are reasonable .This will definitely reflect in dealing with the customers in day to day life. However, it differs from person to person from attitude point of view depending upon the background and environment from where the individual born and brought up. This is all because of “unpredictable human element with in human”

Read full text

Employer branding: A new strategic dimension of Indian corporations
Author(s)- Suman Kumar Dawn, Suparna Biswas

ABSTRACT

Employer branding is defined as a targeted long-term strategy to manage awareness and perceptions of employees, potential employees and related stakeholders with regards to a particular firm (Sullivian, 2004). This includes direct and indirect experiences of dealing with the firm. Like actual product branding, organizations have started to invest employer branding as employees are the internal customers of the firm. The employer brand builds an image confirming the organization as a good place to work. Today, an effective employer brand is essential for competitive advantage. With the liberalization of the Indian economy in 1991 and subsequent economic reforms, Indian companies are becoming internationally strategic to utilize the employer brand to attract and retain talent which leads to expand and growth of the business. This paper gives some concept on employer branding and also to examine how Indian organizations with a positive corporate reputation can attract and retain employees. It also focusses to explain the importance, applicability, outcome and creating an effective employer branding strategy of Indian companies.

Read full text

Exploring work values in Rabindrasangeet
Author(s)- Debdulal Dutta Roy, Esa Bandopadhyay

ABSTRACT

With the increasing complexity and industrialization of society work for many people has become more and more simply a means towards the end of earning a living. However, we are in danger of over-generalizing this trend and pushing it to its logical conclusion, expecting that working serves only a means function. Work value contingent upon tangible rewards induces dissonance in the Quality of working life in the organization. It  is embedded dimension within the cultural fabric of society. One can understand the culture by analysis of performing arts like songs, music, drama, scriptures and drawing. Rabindranath Tagore composed several songs (Rabindrasangeet) filled with several stress reducing postulates (Dutta Roy, 2010). Aim of this study is to explore work values in the Rabindrasangeet. Some songs of Rabindranath Tagore were selected where in the word ‘ Karma’ or ‘Kaaj’ is depicted as they reflect the meaning of work. Script analysis revealed 15 path and 13 goal oriented work values. Finally some postulates were framed to frame new theory of work values.: The study has several implications in analysis of performing art for development of theories in management. Second, the extracted values will give new direction of research in shaping quality of life of people at work.

Read full text

Future of HR management in Indian scenario: Issues & Challenges
Author(s)- Saleena Khan, Bhawna Chahar

ABSTRACT

In the contemporary context, the Indian management mindscape continues to be influenced by the residual traces of ancient wisdom as it faces the complexities of global realities. One stream of holistic wisdom, identified as the Vedantic philosophy, pervades managerial behavior at all levels of work organizations. This philosophical tradition has its roots in sacred texts from 2000 B.C. and it holds that human nature has a capacity for self transformation and attaining spiritual high ground while facing realities of day to day challenges (Lannoy 1971).Human Resource Management has evolved considerably over the past century, and experienced a major transformation in form and function primarily within the past two decades. Driven by a number of significant internal and external environmental forces, HRM has progressed from a largely maintenance function, to what many scholars and practitioners today regard as the source of sustained competitive advantage for organizations operating in a global economy. Some of the factors that contribute to the evolvement of human resources management are technology, globalization, diversity, immigration and an aging workforce.In this article, we would be discussing the various Issues that HR is facing in today’s corporate scenario. A few challenges they have been able to overcome successfully but a lot of issues still need to be dealt with. We would be discussing issues HR is facing in the present and some strategies which, if adopted, can help the HRM to sustain better in the challenging and dynamic scenario.

Read full text

A People – Centric approach in adoption of Innovation: A review and directions for future research
Author(s)- Anurupa Kundu, Debdulal Dutta Roy

ABSTRACT

Growing complexity and uncertainty in the causal texture lead organizations toward innovation. Innovation refers to the creation and implementation of “new combinations”. These new combinations can be related to new products, services, work processes, markets, delivery systems and policies. So adoption of innovation has become a vital thing for organizational productivity and survival. The adoption process is a sequence of stages, a potential adopter of an innovation passes through before acceptance of a new product, service or idea. There is a misconception about adoption of innovation. Usually management forces employees to accept innovation disregarding the adaptive or the resilience capacity of the employees. As a result, organization suffers from another uncertainty like damage of machines or equipments for unknown reasons, high wastage, absenteeism, accident, turn-over and finally strike and lockout. This situation can be avoided if innovation is strategically introduced in the organization, and as a result, innovation will be well-adopted.  This study reviews articles on adoption of innovation from research journals.  The Academy of Management Journal, Journal of Business Research, Journal of Economic Literature, Administrative Science Quarterly, & Journal of Applied Psychology were thoroughly reviewed.  Based on the review the study proposes a people – centric approach in innovation-adoption. This approach suggests I-P-A model, where I indicates innovation, P indicates people characteristics, and A indicates adoption. In other words innovation-adoption relationship is moderated by individual characteristics of employees on whom innovation is going to be imposed. The paper discusses about various dimensions of the individuals’ characteristics which seem to be the determinants for adoption of innovation. The paper concludes with a discussion of emerging issues, new research directions, and practical implications of people-centric factors for innovation adoption research.

Read full text

Ethical Organization and Employees
Author(s)- Nandita Mishra, Gulnar Sharma

ABSTRACT

Managing ethics in the work place is all about how the values, ethics and moral principles are essential to sound decision making. In looking for an answer, it was found that while organizations do indeed have values, ethics and moral principles, these are not communicated in a code of ethics and may in fact be quite different what the code of ethics might lead to. While it would be ingenuous to think that ethical behavior within an organization can be changed simply by posting a list of high sounding principles, it is equally naïve to imagine that the ethics of an organization” just happens and there is nothing to be done about it. Ethical behavior in organizations can be encouraged in a number of ways, most of which are executed by the HRM department through its roles in training, communication and discipline. Some big corporations that are ethically committed assign the primary task of managing and monitoring ethical behavior to their HRM department. This original research paper explores the ethical practices in organizations and the study of employee ethics.  The objective is to extract important factors that determine ethical behavior and perception.Survey was conducted in 10 organizations by using questionnaires and personal interviews (schedule) to study the same. This empirical research would include descriptive statistics, content analysis, Wilcoxon test and perceptual maps to study the ethical aspect of the selected organizations.At the level of the society, this study is intended to test whether CSR is for societal purpose, brand building or avoidance of government intervention. Whether following the code of ethics in the organization and internalization of CSR leads to an ethical organization?If the answer to these questions upon completion of this study turns out to be in the affirmative it would hopefully give a strong stimulus to studies in this area and the insights gained from the exploration of these questions would also help to devise a number of intervention strategies for implementing in actual business organization. It is hoped that this study would fill a part of the gap that exists in literature regarding the relationship of ethics and business.

Read full text

A Study on employee engagement in two Indian businesses
Author(s)- Malavika Desai et.al.,

ABSTRACT

Employee engagement is the level of commitment and involvement an employee has towards his organization and its values. It is a measureable degree of an employee's positive or negative emotional attachment to their job, colleagues and organization which profoundly influences their willingness to learn & perform at work. Employee engagement has a direct impact on the employee’s productivity. Understandably, the most productive employees are those that are not only committed and loyal; but also but also those whose outputs are healthy and gratifying both for themselves as well as for the organization they work for. Obviously, these are the employees who can be called ‘engaged”. In almost a bottom-up fashion, the organization as a whole benefits from employees that are committed, loyal, productive, and engaged.The paper aims at finding the employee engagement across manufacturing organizations and IT organizations, and compares the underlying reasons indicating high or low employee engagement. Fifty middle level executives of a car manufacturing unit and fifty such employees of an IT firm, located in and around the city of Bengaluru, India, were sampled for the study. It was found that the degree of employee engagement was significantly high in the manufacturing organization as compared to that in IT firm. The main causes for a higher engagement in the manufacturing sector were found to be as – the impression that the firm cares for and values the employees, free and frank communication with immediate supervisor, empathetic attitude of the latter towards the former, recognition of one’s contributions towards the organizational goals, and freedom to participate in the decision making process.

Read full text

Role of HR in Change Management
Author(s)- CS Shruti Rastogi , Itee Rastogi

ABSTRACT

An organization cannot stay stagnant in today’s fast paced, ultra competitive global environment; change is inevitable. Change management involves defining and adapting corporate strategies, structures, procedures and technologies to deal with change budding from the internal as well as external environment; but transformation is not an easy task especially in a giant like State Bank of India (SBI). The Bank had to face a dramatic cultural change with the challenges thrown by the private sector banks which provided customer oriented services while most of the staff in SBI was not aware of the fact that the bank was losing its hold amongst the upper end market.  According to the Society for Human Resource Management (SHRM) 2007, Change Management Survey report “the top two obstacles encountered during the major organizational changes are communication breakdown and employee’s resistance.”Biggest challenge for the management was to convey its idea of transformation to each and every employee of the organization.

Read full text

Spatial Influence on Organizational Creativity: Through syntactic analysis of Space
Author(s)- Sumanta Deb, Surabhi Sinha

ABSTRACT

The Hawthrone study, though proved otherwise, is regarded as one of the most important study to find out the relationship between physical space and organizational behaviour. After that, the advent of environmental psychology as a discipline augmented the research to find out the relationship between physical space and human behaviour. Space not only accommodates functions and behaviours but also has the potential to influence them. There are various studies regarding the micro, even molar characteristics of space and their subsequent effect on behaviour, but very little on overall spatial structure. This paper approaches to establish the relationship between spatial structure and organizational creativity and communication through syntactic analysis of space. This is done with a study conducted on 50 middle level managers by showing three dimensional models of three types of most common workstation layouts. The results are recorded on psychological factors on a 7 point Likert type scale. Considering ceteris paribus assumption of other ergonomic and anthropometric elements, the relationship of organizational creativity and communication is established with various syntactic characteristics (mean values of psychological factors (privacy, interaction and creativity) and corresponding syntactic values. Influencing and supporting positive employee behaviour is one of the most important functions of organizational development. And as space influences behaviour, proper design of spatial structure should be regarded as one of the most important strategic management decision. The approach can have wide implications in evaluating and designing proper spatial arrangement required for an organization. When the requirements and prioritisation of psychological values for an organization is determined, the subsequent range of syntactical values can be identified from among alternatives and thus act as appraising tool and also a proper tool for briefing to the designer. This study has the potential for spearheading future research in the syntactic analysis of space in influencing employee behaviour in organizations.

Read full text

Cross cultural conflict resolution styles: An extensive literature review
Author(s)- Anu Singh Lather et.al.,

ABSTRACT

The purpose of this paper is to make a comparison of the preferred conflict resolution styles followed in Asia, America and Australia. Conflict is a culturally defined event, hence different conflict management styles in relation to different cultures are also explored. The specific emphasis in this paper has been placed on the studies related to India, China, Japan, Korea, Malaysia, Australia and America.An interdisciplinary review of literature was undertaken, as current literature on the topic was limited in scope. The investigation aimed at finding out the differences and the similarities which existed across different cultures (Asian, America and Australian) as far as resolving interpersonal conflict was concerned and how cultural factors played a role in choosing different styles to conflict resolution. The Competing style is more favored by members of American cultures.

Read full text

Motivation as a tool for productivity in Public sector unit
Author(s)- Mohammed Javed Kalburgi, Dinesh.G.P

ABSTRACT

The success of any organization depends on its employees. If employees are taken good care, the performance & efficiency & productivity level increase. The main objective of this paper is to analyze the motivational level of the executives in the organization & elicit information regarding the various methods used by the personal managers to motivate the executives Primary data as well as secondary data provided for the basis of the study. Primary data was collected from the employees working in the factory, by administering the questionnaire, while using discussion & interview method. The major finding for the paper was that the employees were highly motivated due to good working environment & highly supported by supervisors to perform the task.This paper in Toto has six sections, including this introductory section. The review of literature is presented in the second section and the methodology followed is given in the third section. A brief note on motivation & tools are presented in the fourth section. The motivational factors are discussed in fifth section and the summary of findings and suggestions is presented in the sixth section & conclusion is presented in the last section.

Read full text

Enhancing creativity for organizational change
Author(s)- Rachna Tahilramani

ABSTRACT

Today the demand for creativity and innovation is everywhere, due to the rapid pace of change. The explanations are familiar - new technologies, the reach of the Internet, the telecommunications revolution linking everyone everywhere. As the global playing field becomes increasingly level, many business forecasters are predicting that workforce creativity and innovation will be the most important factors in establishing and maintaining a competitive advantage. These concepts create a fundamental challenge for HR professionals. The recruiting and retention of highly talented workers has long been a cornerstone of strategic human capital management.With creativity and innovation considered such critical factors in organizational success, HR professionals must develop strategies to enhance the creative environment of the workplace. HR professionals will need to take into account a number of factors, including the best ways to identify creative tendencies, team vs. individual creativity, employee motivation and training.HR has a critical role in establishing an environment that communicates organizational values and creates management practices that respect and support the unique skills and creative potential of every individual. To fulfill this role, HR professionals will have to call upon their own creative and innovative abilities through training and development techniques.This article suggests the importance and ways and means to enhance creativity both at individual as well as organisational level to be at a competitive advantage.

Read full text  

Managing organizational change
Author(s)- Subhajit Basu Chowdhury

ABSTRACT

The business environment is a dynamic one. Constant developments are taking place in the internal as well as external business environment. Some organizations face greater federal regulation, while others experience deregulation. Some find their markets shrinking, while others thrive into the global marketplace. Many organizations face mergers, hostile takeovers or downsizing problems which have severe psychological and economic effects on their employees. One of the survival and winning business strategies is to bring organizational changes which can cope up with such critical issues. However, in most of the cases, whenever the organization introduces change mechanisms, people in the organization resist such changes. Therefore, such organizational changes need to be effectively managed and implemented which ultimately aims at organizational growth and development. Managing changes, thus, becomes an integral part of the manager’s job. Constant assessment of where the system is, as contrasted with where it should be, alerts managers to the changes that need to be embedded in it. This paper discusses the nature of change, reasons for resistance to it and the ways to manage it more successfully. It also discusses the different strategies and their relative effectiveness , that managers commonly use to introduce change.

Read full text  

Employee engagement - Engaging the 21st century workforce
Author(s)- Abhijit Siddhanta, Debalina Roy

ABSTRACT

For past several years, 'Employee Engagement' has been a hot topic in the corporate circles. It is a buzz word that employers think they understand, but face difficulties and challenges while practicing. Many organizations copy 'Employee Engagement' activities from the best practices, looking at the benefits enjoyed by their competitors; however, most lose track after a few strides ahead. 'Employee Engagement' cannot be a cosmetic intervention in enhancing commitment towards job, motivation or productivity. Corporate culture has an important role in enduring positive impact of such engagement programs. This article throws light on how 'Employee Engagement' can be increased. This work also tries to identify the key drivers of 'Employee Engagement', its different attributes together with the ways to measure it, how to handle disengaged employees and modern 'Employee Engagement' practices in corporate. Findings from various researches and  surveys are used in the present work to measure the effect of 'Employee Engagement' which includes issues like productivity, profitability , focus on customer and various other related matters. In this article, Literature Review method coupled with secondary data collection from various research findings and corporate practices are employed using a descriptive study technique. This article explores implications for theory, further research and practices by synthesizing modern 'Employee Engagement' activities being practiced by the corporate with the review of findings from previous researches / surveys.

Read full text  

Investing on Human Capital: Safe bet or a gamble?
Author(s)- Tapati Nandy, Ramchandra Mahapatra

ABSTRACT

The development of human capital has been recognized by economists to be a key prerequisite for a country’s socio-economic and political transformation. Capital and natural resources are passive factors of production; human beings are the active agents who accumulate capital, exploit natural resources, build social, economic, and political organizations, and carry forward national development. People are often spoken of as assets but are generally treated as costs, because there is no credible system of valuing them. In today’s knowledge-based organizations value is driven more by people than by any other factor. As widely recognized, investment in human capital is subject to a considerable risk. Organizations do employ some who indeed should be seen as investments rather than costs but the vast majorities are value adding. Intellectual capital includes a broad range of people, knowledge and relationship assets. These intangible assets are the key to the company’s growth, innovation, and competitive advantage. Though global competition, market volatility and declining labour pools make investing in people a high risk gamble, still future success is dependent primarily on the ability to attract, retain and productively manage this shrinking pool of talented and motivated people. This in return helps to gain a strategic competitive advantage, innovate faster and evolve as a stronger organization. The purpose of this paper is to provide a simple theoretical perspective in which the various uncertainties associated with human capital are discussed. The paper also intends to study and find an explanation for business corporations to consider investing on human capital as a profitable option and suggest ways to practice the same.

Read full text  

Strategic framework for human capital investment to create sustained competitive advantage
Author(s)- Tapati Nandy, Barnishikha Das

ABSTRACT

A platitude of management is that people are every organization’s most important asset. And yet most organizations’ processes for building and cultivating these critically important assets are not processes at all. They are programs, which are conceived episodically, opportunistically, or reactively. Then, to compound the problem, most of our organizations have no way to measure the results of our efforts to build the people. We measure the activities and the spending that are inputs towards these purposes. But we don’t measure— and in many ways can’t measure—their effectiveness. The results researchers have shown that financial compensation is, at best, a hygiene factor. It’s important not to mess compensation up, because inequities in compensation create disgruntlement. But financial incentives don’t create that deep willingness to sacrifice for the good of the organization. It is as if their hope is to embed within a compensation formula a carrot here, a nudge there, and a kick in the rear end on occasion, so that the people thereby incentivized, don’t need to be managed. So many “managers” want to abdicate to a formula that these things that are the essence of management—creating opportunities for the people to succeed at important, challenging responsibilities. One of the greatest ironies of management is that the processes of building and utilizing our organizations’ most important resources in the most productive and effective way possible is probably the least understood of all of the dimensions of management. And it is not understood because it has rarely been studied in rigorous ways by those of us who should be studying it. This article intends to provide a framework within which managers can create a sustained competitive advantage through people, removing many of the contradictions that characterize the way we manage our people.

Read full text  

Quality of worklife and job satisfaction of a group of university employees
Author(s)- Rochita Ganguly

ABSTRACT

The quest for improved productivity through human resources has its beginning in the early 1900’s. F. W. Taylor’s scientific management principles created a new awareness regarding human resources , who were earlier considered as mere instruments of production ready to work from dawn to dusk under whatever conditions and being motivated by the lure of money. From then – onwards research and experiments have been undertaken to understand human beings at work and the ways to improve their job satisfaction, balanced with the aim of the organizations to combine better productivity with job and employee satisfaction. The concept of Quality of Worklife (QWL), has originated from the continuous research process. The term QWL was introduced by Louis Davis (1972) at the first International Quality of WorkLife Conference held in Toronto. it made its appearance in India around mid 70’s .

Read full text  

A conceptual framework of faculty performance evaluation
Author(s)- Anup Kumar Ghosh, Debmallya Chatterjee, Biswarup Ghosh 

ABSTRACT

Every organization is having an objective towards optimum performance and the employees are the key in achieving that. It is necessary that the employees’ performance should reach optimality for the success of the organization. Many organizations are having performance appraisal system to evaluate the effectiveness and efficiency of their employees using linguistic labels to their performance. In a production unit, employee performance is proportional to the quality and quantity of production, where as, in case of an Educational Institute, there is no such direct tool available to evaluate the productivity of its faculty members. In judging efficiency of a faculty member, often the institutes deal with vague or imprecise data resulting to an inconsistent performance evaluation. In this paper an attempt has been made to design a performance appraisal system in generating performance score of the faculty member involving non-fuzzy inputs and fuzzy criteria weights. This study attempts to show how crisp scores multiplied by fuzzy criteria weights can effectively generate performance score in faculty performance evaluation.

Read full text  

The role of Human Resources (HR) in Six Sigma
Author(s)- Saibal Kr. Mukhopadhyay 

ABSTRACT

The objective of this paper is to focus the introduction of Six Sigma into an organization which will lead to a major change that will have a profound effect on a broad group of stakeholders. Managers and employees at many levels of the organization will be asked to engage in new behaviours which will see Six Sigma as a source of competition for resources, executive attention and organizational power. HR professionals can increase their chances of being included in Six Sigma decision making and implementation. The measures include the right skills of the HR professionals for contribution of Six Sigma initiative at both strategic and tactical levels.HR professionals can help executives approach culture change in a way that addresses the underlying business goals without creating organizational resistance. The methodology that has been employed is Survey that has involved more than 100 organisations employing about half million people.90%of HR practitioners taking part in the study said that their role was to support employees during a change programme, with more than 83% preparing information to help them cope with the process. About 77% were also involved in developing the timeline for change and in making the initial announcement to affected employees majoring about 65%. But rather few HR parishioners played a part in assessing whether the change programme had been successful (40%) or whether it produced the required return on investment (15%). Overall about Two-Thirds of practioners (67%) said that HR was responsible for developing training programmes to support the change. Such programmes where particularly common in larger organizations. Change Management Concept is hardly tried to be incorporated by few employers and also to major if it has an impact. Moreover Change Management models are rarely used by HR.

Read full text  

Human resource accounting: A new paradigm in the era of globalization
Author(s)- Raunak Narayan

ABSTRACT

Human resource is the most vital part of any organization, as it makes sure there exists a symbiosis between financial and all other physical resources towards the achievement of organizational objectives and goals. Conventionally, financial assets are accounted in the books of accounts as per the general principles of accounting, but does not count the human asset. Although many efforts have been made by many thinkers in this arena, a proper/appropriate and fully validated model of performance based on accounting in the Indian context is not yet available. The past few decades have witnessed a global transition from manufacturing to service based economies. Though, Human Resource Accounting (HRA) was introduced way back in 1980s, it started gaining popularity in India recently.In order to estimate and project the worth of the human capital, it is necessary that some method of quantifying the worth of the knowledge, motivation, skill, and contribution of the human elements as well as that of organizational processes, like recruitment, selection, training, etc which are used to build and support these human aspects, is properly developed. HRA denotes this process of quantification/ measurement of Human Resources. The physical assets like land, building, plant and machinery are recorded in the books of accounts at their purchase price. Now, depreciation on these assets is considered as the cost for the particular year and debited to profit and loss accounts and the remaining balance is shown in the balance sheet as written down value of the assets. Hence, on similar lines the human resources should also be evaluated, recorded in the books, operated and disclosed in the financial statements. In this paper the author has elaborately discussed about the objectives and process of HRA in the Indian context. The basic objective of the paper is to study the Human Resources Accounting practices, to identify the issues and challenges, to examine these issues and challenges and lastly, to give suggestions based on the findings of the study.

Read full text