A Study On Evaluating Role Of Human Resource Accounting (HRA) In Private Sector Firms

Abstract

Human resource accounting (HRA) is crucial for firms to enable strategic decision-making since it measures the value of human capital. Ultimately, it helps maintain a competitive advantage and long-term viability in the fast-paced business environment by enhancing the accuracy of financial reporting, promoting employee development, and optimizing resource allocation. The purpose of conducting this research is to evaluate the role of Human Resource Accounting in private-sector firms. The technique used in this study is one sample t-test. The findings of the study indicated that Increases productivity, motivates employees, enhances employee morale and scope for future advancement, helps to formulate HR policy, High returns, Helps recruit the best manpower, helps to design training and development, increases market value of a share, Proper utilization of human resources are the significant role of human resource accounting (HRA) in private sector firms.