The concept human capital management’ (HCM) is based on the concept of human capital as explained in the fi rst part of this chapter. The next three sections describe the processes of human capital management - measurement, internal and external reporting.
Over the years accounting fraternity is on the look for a way out to the ongoing debate of whether to recognize the human resource as a financial asset. The fundamental conflict is the human nature of the resource as only non-human assets are disclosed in a balance sheet. However recognition of intangibles like goodwill always triggers the need of disclosure of HR as a corporate asset.
Resource, in its organizational context, is defined as anything that could be thought of as a strength or weakness of a given firm’ including tangible and intangible assets (Wernerfelt, 1984). There are three main organizational resources