A Study Of Employees Perception Towards Impact Of Human Resource Accounting Practices On Goodwill Of Higher Education Institutions

Abstract

In today’s competitive world with high use of technology, human resource has become even more crucial and huge amount of fund is required to hire, develop and retain them. It’s critical to justify whether these human resource are contributing to proportionate return to the organization. Human resource accounting (HRA) which means accounting for people as organizational resources that includes the recording and analyzing cost of recruiting, selecting, training and developing the human resources employed in any organization (Jeroh, 2013 and Abdullahi & Kirfi, 2012), plays important role here. Human Resource Accounting (HRA) involves accounting for expenditures related to human resources as assets as opposed to traditional accounting which treats these costs as expenses that reduce profit.HRA implementation is done for the long term benefit of the organization. The success of such implementation is more when the employees understand the concept well, perceive its usefulness in positive way and form a mindset of goodwill in favour of university.

This paper tries to identify the understanding of HRA by employees and their perception towards impact of HRA practices on goodwill of higher education institutions.  The population for the current study includes all the faculty members working in three higher education institutions running separately in Madhya Pradesh and Chhattisgarh both. To carry on study first, objectives for current study are prepared and then hypotheses were formulated on the basis of these objectives. The questions are asked from sample drawn from this population to know the perception of respondents. The study is carried in two parts i.e. on the basis of designation and gender of faculty members. The data is collected on 5-point Likert scale with options strongly agree, agree, neutral, disagree and strongly disagree. The sampling technique used to draw sample is blend of quota and convenient sampling. MS excel is used to record the data initially and later transferred to SPSS for analysis taking 5% significance level. For testing the validity of instrument, factor analysis is performed and reliability test of data is measured by calculating Cronbach’s Alpha value. Mean and average mean values are calculated and ANOVA is applied to test the hypothesis for its acceptance or rejection. The faculty members of all six institutions perceive that HRA implementation has impact on goodwill of higher education institutions. The faculty members of MP have stronger perception as compared to those from Chhattisgarh.