Name: Shreya Gune

Roll No: 2K181080

Subject: HRACM- Assignment: Article Review.

Article 1.
Title: Developing Human Resource Accounting as a Human Resource Decision Support
System
Author: Eric G. Flamholtz, D. Gerald Searfoss and Russell Coff

Summary of the Article:

The human resource accounting system being developed at Touché Ross represents the "state
of the art" for human resource accounting presently. It is the first step toward developing an
integrated human resource accounting system. With each successive step of the project, new
opportunities were exposed. Although this system requires further refinement and research,
this pilot study represents a potentially significant advance in the human resource accounting
field. Management was particularly interested in the replacement cost and how its
measurement would enhance human resource management It is the first step toward
developing an integrated human resource accounting system.

Critique:
This article talks about the decision support system developed at Touché Ross consisted of
three interrelated yet distinct components: 1) human resource mobility probabilities, 2)
replacement cost measurement, and 3) human resource value measurement. . It describes
significant and useful terms such as, advance in the human resource accounting field. The
study is also significant because there are, at present, relatively few examples of actual
organizations which have developed human resource accounting systems.

Leanings:
In this article the major focus on the following thing that are recruitment planning,
replacement cost, turnover analysis, and human resource value by which there will be
development of the Human Resource Accounting as a Human Resource Decision Support
System. This system is useful for Turnover Analysis, recruitment planning, human resource
value.

Conclusion:
This article tells us about the case study of the development of the integrated human resource
accounting at Touché Ross & Co. The system described above is being implemented on a
pilot research basis. It is the first step toward developing an integrated human resource
accounting system. It talks about the new hires there qualification at entry level so that the
turnover analysis will be reduced. there are 4 steps involved in the process that are
recruitment and selection ,placement cost, turnover analysis ,human resource value by which
there is new opportunity were invented.
 Article 2.
Title: Human Resource accounting as a management tool
Author: Thomas W. McRae

Summary of the Article:

In this article the Human Resources Accounting described the process of measuring the cost
or value of organization's personnel and recognizing those amounts as capital investments.
The matching concept, however, requires costs to be associated with related revenue in
measuring the periodic net income of an enterprise. The public accountant, by virtue of his
professional relationship with clients and his knowledge of the need for objective information
that can be audited and then accepted by management. The bell project explains a system to
measure the costs of developing personnel and to account for those costs as deferred charges,
or amortizable assets, and would be most useful for management planning and control.

Critique:
This article explains various important terms related to HRA subject. Each of the foregoing
topics are discussed in the article demonstrating that management can use the information
produced by a system of HRA in several ways. Author gives deep understanding by giving
different examples.

Leaning:
In the bell projects there is analysis of the those costs in internal "force-loss analysis reports,"
the company classifies as separate cost components (1) employment costs, (2) training costs,
(3) efficiency recovery costs and (4) extra supervision costs. The human resources of an
enterprise are not recognized as assets under GAAP, although those resources clearly have
substantial economic value to the enterprise. HRA ranges from proposals to account for the
costs of recruiting, hiring, training and developing employees.

Conclusion:
Research and experimentation in Human Resource Accounting are particularly suited to the
public accounting profession. And in this article there are many terms by which we can
analyse the cost of the particular term.The types of costs to be accumulated should be
specified. Procedures for accumulating and allocating costs to individuals should be set out in
detail. A method of amortization should be selected based on the judgment and experience of
practicing accountants.