scholarly journals Influence of Human Resource Accounting Practices on Managerial Decision-Making

2020 ◽  
Vol 8 (5) ◽  
pp. 8-18
Author(s):  
James O. Abiola ◽  
Rilwan Ayinde Adisa
Keyword(s):  
Decision Making ◽  
Human Resource ◽  
Financial Reporting ◽  
Internal Control ◽  
Financial Services ◽  
Analysis Model ◽  
Managerial Decision ◽  
Managerial Decision Making ◽  
Human Resource Accounting ◽  
Resource Accounting

The study examined the influence of Human Resource Accounting (HRA) practices on managerial decision-making. Data for the study were gathered via a structured questionnaire on a 5-Points Likert Scale administered on personnel of Accounting, and Audit/Internal Control departments which were considered to be the relevant departments for this study in 16 quoted firms in the Nigerian financial services sector. The questionnaires distributed were returned and analyzed using a simple regression analysis model. The study found that HRA has a significant impact on managerial decision-making of organizations. It was therefore recommended that organizations should be more proactive in the use of HRA to enhance decision-making. Necessary and relevant standards should also be provided on the need for recognizing human resource cost in organizations’ statement of financial position in order to enhance adequate decision-making in business organizations premised on fair financial reporting.

scholarly journals ACHIEVING A CONCENSUS ON HUMAN RESOURCES ACCOUNTING: A REVIEW OF LITERATURE

2018 ◽  
Vol 1 (1) ◽  
pp. 131-139
Author(s):  
Ofe Iwiyisi INUA
Keyword(s):  
Human Resources ◽  
Human Resource ◽  
Financial Reporting ◽  
Economic Value ◽  
Annual Reports ◽  
Intangible Asset ◽  
Strict Sense ◽  
Future Earnings ◽  
Human Resource Accounting ◽  
Resource Accounting

This paper is a theoretical discourse and review on human resource accounting which remains an issue both for research and in practice. The library-based research design was used in this study. It is an established fact that the human resource is an integral component of every business and constitutes a key intangible asset for companies. However, unlike other assets, human resource does not conform to the peculiar patterns of conventional accounting assets in a strict sense and hence cannot be treated as such. Research efforts and models such as the replacement cost, opportunity cost, present value of discounted future earnings, etc have evolved overtime to try to properly capture, measure and report human resource and each model has its own weakness that makes it daunting for human resource to be fully amenable to the postulations of the models. Many researchers have thus shifted to issues of human resource disclosures in annual reports which basically concerns itself to what is disclosed about human resources such as training, welfare, compensation packages amongst others. This again does not provide much insight to the core issue of human resource accounting which involves cost to recruit, select, hire, train, compensate and develop human assets on one hand and calculating the economic value of people to the organization on the other. The study concludes that there is need for more robust research efforts and quantification methodologies for human resource accounting and the role of financial reporting standards will be crucial in helping to achieve some sort of consensus in moving forward on this issue of human resource accounting.

scholarly journals An Empirical Evaluation on Performance of Organization through Human Resource Accounting (HRA): A Study on Selected Corporate Units of India

2019 ◽  
Vol 3 (1) ◽  
pp. 1-12
Author(s):  
Atul Bansal ◽  
Preeti Sharma
Keyword(s):  
Human Resource ◽  
Financial Reporting ◽  
Financial Analysis ◽  
Empirical Evaluation ◽  
Primary Sources ◽  
Organizational Growth ◽  
Quality Performance ◽  
Financial Report ◽  
Human Resource Accounting ◽  
Resource Accounting

This study attempts to analyze the importance of Human Resource Accounting (HRA) practices for corporate financial reporting. This paper is both a theoretical and empirical exploration, aimed to some suggestions of new thoughts, methods, techniques and applications of HRA. Various MNCs in the field of HRM provide different types of thought about the practices of personnel management with different systems and aims of financial analysis and reporting.  HRM has been and remains one of the most powerful and influential ideas to have emerged in the field of business and management. Effective practices of human resources in the accounting statement can ensure long-term benefits to the employees of the corporations and it also increases quality, performance, values, and commitment to future need. The data of this study was collected from secondary and primary sources from selected corporate units. Very few corporations are practically practices this concept in their accounting and financial report. Some findings and suggestions are addressed in the study that may be the prerequisite for organizational growth and development.

scholarly journals Impact of Human Resource Accounting Practices on Decision Making in the Organization – Evidence from a Private Company in Kurdistan Region of Iraq

2019 ◽  
Vol 8 (9S3) ◽  
pp. 1251-1254
Keyword(s):  
Decision Making ◽  
Sample Size ◽  
Human Resource ◽  
Significant Relationship ◽  
Null Hypothesis ◽  
Alternative Hypothesis ◽  
Private Company ◽  
Human Resource Accounting ◽  
Resource Accounting ◽  
The Impact

The current study aimed at understanding the impact of Human Resource Accounting practices on decision making in an organization. The research was conducted on a private company in Kurdistan. Researchers constructed a model where predictor variable is Human Resource Accounting Practices and Predicted variable is Decision making. The Research has null hypothesis and alternative hypothesis where the null hypothesis was“There is no significant relationship between Human Resource Accounting Practices and Decision Making”. The alternative hypothesis was “There is significant relationship between Human Resource Accounting Practices and Decision Making”. The sample size for the current research was 107 where researcher distributed 120 questionnaires where 13 questionnaires were not filled properly. Researchers used quantitative method to analyze the results of the current research. The questionnaire consists of 20 questions which were organized randomly to avoid bias based responses from the respondents. Researchers concluded that HRA hasa strong positive effect on decision making where alternative hypothesis was accepted and null hypothesis got rejected. The sample size was low as the researcher conducted pilot study on this area and may get different results by increasing the sample size and demographics. The present research helps the organization to understand the importance of Human Resource Accounting and the effect of HRA on decision making

scholarly journals Accounting Information and Managerial Decision Making in the Manufacturing Industry in Nigeria

2019 ◽  
Vol 6 (9) ◽  
pp. 143-155
Author(s):  
Babatunde Lawal
Keyword(s):  
Decision Making ◽  
Resource Management ◽  
Human Resource Management ◽  
Human Resource ◽  
Manufacturing Industry ◽  
Accounting Information ◽  
Managerial Decision ◽  
Managerial Decision Making ◽  
Wrong Decision ◽  
The Relationship

In the contemporary business world, the role of accounting information in making or marring a business cannot be overemphasized. Recent worldwide advances in manufacturing technologies have brought about a metamorphosis in industry. This paper established the relationship between accounting information and managerial decision making in the manufacturing industry in Nigeria. The study was guided by the following research objectives; to establish the relationship that exists between accounting information and production decisions; to evaluate the relationship that exists between accounting information and human resource management decisions and to assess the relationship that exists between accounting information and marketing decisions in the Nigerian manufacturing sector. The research design adopted for this study is the survey design. The population of the study comprised of the eight companies in beverage sector of the manufacturing industry in Nigeria. The survey research made use of Seven Up Bottling Company Plc, and Nigeria Bottling Company as representatives of the manufacturing industry. Primary data was collected through administering of questionnaire to the staff of the companies. The sample size of the study was 382 derived from the Yaro Yamani’s formula. Based on the findings, it was concluded that accounting information has an effect on managerial decision making in the Nigerian manufacturing industry. The study recommended that due to the importance of human capital in any organisation, promotion, transfer and retrenchment decisions should be handled with utmost sensitivity. Also, accounting information should therefore be inculcated into the taking of such decisions as it will affect the human resource management department and the organisation as a whole if the wrong decision is taken.  

scholarly journals Impact of human resource accounting on organizations’ financial performance in the context of SMEs

Accounting ◽  
2021 ◽  
pp. 621-628
Author(s):  
Sania Khan
Keyword(s):  
Human Capital ◽  
Human Resource ◽  
Decision Makers ◽  
Managerial Decision ◽  
Return On Assets ◽  
Return On Equity ◽  
Human Resource Accounting ◽  
Capital Efficiency ◽  
Resource Accounting ◽  
The Impact

This study aims to investigate the impact of human resource accounting (HRA) on the overall performance of the organization. By presenting the details of HRA the study identifies various dimensions of organizations’ financial aspects viz., human capital efficiency, organization profitability, return on asset, and return on equity. To understand the impact of various measurements, the study collected required data from 268 responses of human resource and finance departments of SME firms and analyzed the data using linear regression and the result of ANOVA and coefficient values illustrated there is a positive significant effect of HRA on human capital efficiency, organization profitability and return on equity. This is evident that the SME firms in Saudi Arabia are aware of the benefits on HRA of the organization and the only concern is it needs rapid implementation initiatives from the management which is possible with wide awareness across the nation. However, there is no significant effect of HRA on return on assets. This study contributes to the SME firms, human resource departments, and managerial decision-makers to understand the HRA concept and its usefulness to a make positive difference in their financial statements.

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