Main Article Content
Abstract
To ensure growth and development of any organization the efficiency of people must be
augmented in the right perspective. Without human resources, the other resources cannot be
operationally effective. The original health of the organization is indicated by the human behaviour
variables, like group loyalty, skill, motivation and capacity for effective interaction,
communication and decision making. Men, materials, machines, money and methods are the
resources required for an organization. These resources are broadly classified into two categories,
viz., animate and inanimate (human and physical) resources. Men, otherwise known as the human
resources, are considered to be animate resources. Others, namely, materials, machines, money
and methods are considered to be inanimate or physical resources. Thus human resource
accounting is a process of identifying and reporting investment made in the human resource of the
organisation that are presently unaccounted for in the conventional accounting practices. It is an
extension of the standard accounting principles.