Model on human resource accounting
Model on human resource accounting
This model prescribes the human resource accounting approach for two categories of employees:
1.Employees, who are at strategic, key decision-making positions such as MD, CEO (Top Executives)
2.Employees, who execute the decision taken by Top Executives
Model arrives value of human resources as sum of below-mentioned three parts:
1.Real capital cost part
2.Present value of future salary/wages payments
3.Performance evaluation part
Source: Wikipedia