Human Resource Accounting: Its Application in Human Resource Management.

摘要

The concept of Human Resource Accounting was developed to give management an accurate estimation of the value of people to the organization. This is of major concern to the Department of Defense today. In this thesis, an alternative to the traditional methods of accounting for human worth has been proposed. The Expected Realizable Value Theory as developed by Eric Flamholtz has been used to assess the worth of the individual to several military organizations. This model was also used to provide a cost-benefit analysis regarding: (1) the Navy's current up or out policy, (2) personnel costs relating to new construction cost overruns, (3) adjusting personnel costs in regard to the fluctuating productivity of a command, and (4) the evaluation of detailing and assignment procedures. In the Flamholtz model, the expected realizable value is comprised of two variables: (1) the probability that a person will remain with the organization during his expected service life, and (2) a person's conditional value, which is a multi-dimensional variable comprised of three factors: Promotability, transferability, and productivity. By adjusting this model to account for other factors, an alternative to current detailing and assignment procedures was evaluated. Further research drawing upon several disciplines including, but not limited to, accounting, economics, behavioral science, and management science might help provide a workable theory of human resource value that could be designed to meet a variety of needs within the Department of Defense. (Author)