ABSTRACT
This chapter focuses on human resources accounting as a tool in monitoring manpower utilization in a business environment. The initial focus of human resource accounting has been to determine investments in human capabilities and develop appropriate accounting procedures. Human resources accounting is one of a growing number of techniques that can assist in the recognition and sensible utilization of human resources in today's organizations. It contributes to the integration of individual employee and corporate goals, and helps show why it is in the organization's self-interest to do so. The chapter discusses three approaches which were considered in treating managerial organizational assets: Outlay costs, replacement costs and economic value. Accidents and illnesses detract from the overall efficiency of the organization by removing or impairing employees and by causing direct costs in terms of rehabilitation and medical expenses. Employing organizations increasingly assume the responsibility for the education of their employees, both in terms of formal education and additional specific training and 'updating'.
