There is no undermining the value of Human Resource in any organisation. To quote Narayan Murthy founder of the IT giant Infosys, “My assets are not the buildings, the business or foreign contact. My assets walk out of the gate every evening and I wait for them to come back to me the next morning.”
Human Resource is the greatest asset of any organization, and like any other asset you need to account for it. This is particularly true in service-based organizations where instead of a tangible product there’s an intangible product (i.e., service to offer), and hence the conduct and approach of the employees assumes greater importance. Human Resource Accounting (HR Accounting) may be a new term for a lot of small businesses since most view their employees as assets but forget that there is a real tangible cost associated with obtaining these assets and well as maintaining the assets to ensure a long and loyal life.
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