Human Resource Accounting: an Implication for Managerial Decisions in Indian Hotel Industry

Abstract

Hotel and tourism, with its immense employment generation capability is very often called ‘people intensive industry’. In this industry, human resources constitute a higher element of total operating cost. Obviously, the effective and extensive Human Resource Management (HRM) is critically significant to control the operating cost for long run survival. The Human Resource Policies and practices of every hotel company will have direct impact on procurement costs, quality human resources, delivery of quality products \ services and reduce employees turnover. Therefore, management needs to ensure that HR activities should add value to the business. Today, managers are increasingly being asked to justify their decisions in financial terms. This development has proven to be especially difficult for HR managers as their activities are usually evaluated in behavioural /statistical terms rather than financial ones. In this paper the endeavour is primarily to examine the extent to which hotel companies can, and do measure the value of their human resources in financial terms. It also focuses on to promote an understanding and significant of HRA information for making vital Human Resource decisions in hotel companies in India.

Keywords : human resource accounting, hotel industry, human resource management.

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