Human resource accounting framework for Sri Lankan software industry

Abstract

The success or failure of any enterprise is largely based on effective utilization of its resource base, and all business managers attempt to optimize the acquisition, allocation, and development of the asset potential of the firm. Whilst there is much focus on accounting and managing of physical and financial assets, most managers and accountants tend to ignore or half-heartedly pursue similar accountability for what are often key elements for success of a modern day enterprise, which is the organization's employees, "the human asset". Accounting & effective utilization of "human asset" befalls more important & relevant in "Software Development" industry than most other current industries due to its significantly high employment of human assets. Currently, there aren't many Sri- l.ankan software development houses, including significantly large scale organizations who employee scientific methods for human asset accounting. Even though the importance of human asset accounting has been felt by many such organizations, adaptation & implementation of any models are of rare nature. This research paper tries to provide recommendations/ framework for successfully adopting Human Resource Accounting (measuring & reporting Human Resources) by the Sri-Lankan Software Industry through evaluating its importance, relevance & benefits to the industry. In this exercise the researcher tries to address the need for, reasons of, to whom it is important, current practices, barriers and implementation of measuring & reporting Human Resources. Researcher tries to look at how different industry sectors & different job functions perceive Measuring & Reporting Human Resources in order to increase the level of practicality & applicability of recommendations.