"Unveiling the Importance of Human Resource Accounting in Public Sector Enterprises: A Strategic Approach to Measuring Organizational Assets"

Abstract

The research centers on the importance and implications of human resource accounting (HRA) for public sector enterprises (PSEs). A mixed-methods approach is applied with the use of qualitative interviews and quantitative analysis to understand the perspectives, challenges, and possible benefits of HRA in PSEs.

The quantitative results indicate that there are several stakeholders whose opinions differ on the significance of the HRA which highlights the necessity of the implementation barrier elimination and the acceptance of the new accounting innovations in the PSEs. Nonetheless, the old accounting practices do not go well with HRA, but the stakeholders recognize the fact that HRA will enable them to make the decision process easier, allocate resources better, and build accountability and transparency.

Quantitative analysis reveals that the financial indicators of PSEs that have implemented HRA are very different from those that employ traditional models. HROs that follow HRA have greater profit margins, lower employee turnover, and stronger financial standing. Additionally, the employment of HRA helps to increase the appreciation of organizational assets, particularly human capital, which is reflected in the analysis of the balance sheet data.

In sum of this research, HRA is a strategic tool for assessing and managing assets of the PSEs. HRA implementation success and its subsequent use will give PSEs opportunities to improve their personnel management, and decision-making process, and contribute to sustainable development. Those implications are therefore added to the existing knowledge of HRA use in the public sector and are useful for policymakers, practitioners, and researchers.