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Definition
AAA Definition:
Stephen Knauf:
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Objectives
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Importance of HRA
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Contd
Valuation of HR
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Opportunity Cost
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Flamholtz
Forecasting the period of service.
Identify the services states, ie, roles till he leaves.
Estimate the value derived by the organisation.
Estimate the probability of occupying each state.
Discounting the value at a predetermined rate to get present value
of HR.
As the people move from one role to another they render services
and rewards.
Can predict carer movements?
Expensive.
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Morse
Value of HR is equivalent to the present value of the net benefits
derived by the enterprise from the services of its employees.
Calculate the gross services to be provided by the employees.
Value of payments to employees is determined.
The excess of gross services represents the net benefit to the
enterprise because of HR.
By applying predetermined discount rate, the present value is
determined.
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Pekin Ogan
Taking in to consideration the certainty with which the net
benefit in future will accrue to the enterprise.
Multiply Net benefit from each employee with certainty
factor.
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S.K Chakraborty
The value of HR on a group basis can be found by multiplying the
average salary of the group with the average period of employment
in that group.
Employment costs are to be treated as deferred revenue
expenditure.
Written off over the expected average stay of employees.
Present value calculated on average capital employed.
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N. Dasgupta
Total Cost incurred by an individual, the
state and the organisation to bring that
individual up to the present position
should be taken as the value of that
person.
Costs such as Education, training, etc are
ascertained.
Revise value at the end of each year.
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Limitations
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