Human Resource Accounting

Human Resource Accounting
Name
Institutional Affiliation
Human Resource Accounting
Week 1
Labeling employees as human resource is no longer a factor of production in an organization. It stretches beyond Brocaglia (2006) argument that essential resource in any organization is the people. Current organizational requirements call for human resource to focus on corporate growth to allow the organization or company move from its functional approach to product design approach. Labeling employees as a human resource wills enable them to align their accounting practices with demands in the market. The view Brocaglia (2006) provides is that labeling helps them focus on strategic development to support the organization reach even further improvement in product and service delivery. Youderian (2013) looks at the argument differently adding that seeing employees as a human resource will make them feel they are part of strategic goals of the company Recent studies have focused on the connectedness between human resource and accounting practices. Discussing ways of mastering the cash flow statement, Jun (2008) showed that a company could benefit when they have resourceful employees who move from old-school accounting values. The argument Jun (2008) postulates are in line with Brocaglia (2006) view that employees will invest their time in practices that create investment to the company when they feel they are treated as a human resource rather than just an employee.
Week 2
Human resource accounting (HRA) now focusses on the benefits companies can accrue from its human resource instead of focusing on a set of experiences and skills.

The best approach that helps understand HRA is to define the value of the company’s employees. Evans (2015) research focused on metrics for the management of human resource and agreed that defining the value of an employee should be seen as a future investment rather than cost. In modern organizational accounting practices, employees help in the implementation of strategic future goals that allow the organization to align its practices with current accounting trends. AccountingWITT (2010) just developed a framework for a conceptual analogy in accounting equation which, if an organization allows its employees to master will help provide a reason to place a value on human capital.
References
AccountingWITT. (2010). The accounting equation – Conceptual analogy. [Video file]. Retrieved from https://www.youtube.com/watch?v=YK4FJ7QrFY0Brocaglia, J. (2006). The importance of human capital. ISSA Journal.
Evans, M.H. (2015). Metrics for Human Resource Management. Retrieved from http://www.exinfm.com/board/metrics_for_hr_management.htmJun, J. (2008). How to master analyzing the cash flow statement. Old School Value. Retrieved from http://www.oldschoolvalue.com/blog/valuation-methods/analysing-financial-statements-and-aerogrow/Youderian, A. (2013). How to read a Balance Sheet (The non-boring version). Retrieved from http://www.ecommercefuel.com/how-to-read-a-balance-sheet/