Designing Human Resources Valuation Model and its Reporting at the National Iranian Oil Company and its Subsidiary Companies

Document Type : Research Paper

Authors

1 Ph.D. Candidate, Department of Accounting, Faculty of Social Sciences and Economic Alzahra University, Tehran, Iran

2 , Associate Prof., Department of Accounting, Faculty of Social Sciences and Economic, Alzahra University, Tehran, Iran

3 Prof., Department of Accounting, Faculty of Social Sciences and Economic, Alzahra University, Tehran, Iran

Abstract

Objective: In the present research, we have developed a human resource valuation model and its reporting at Iran National Iranian Oil Company (NIOC) and its subsidiary companies.
Methods: Various models in the field of human resources valuation have been considered and finally, regarding the advantages and limitations of each model, a combination of “Myers and Flowers”, “Rana & Maheshwari's Marginal Monetary Worth” models was chosen as a model. This research consists of four stages. In the first stage, the quantitative and qualitative dimensions and components effective on human resource valuation were extracted based on the review of the literature. In the second stage, dimensions and components were identified through interviews with experts, three stages of distribution of the questionnaire and the Fuzzy Delphi method.In the third stage, the relationship between the components was investigated through questionnaires and the method of Fuzzy DEMATEL.Finally, the experts' opinions on human resources valuation reporting was assessed through questionnaire and the Analytic Hierarchy Process.
Results: Based on the first and second stages of the research, effective 15 dimensions and 20 components were identified for human resources valuation at the NIOC and its subsidiary companies. In the third stage, the components were prioritized and the suggested research model is presented. According to the experts' opinions, the best form of reporting is in the form of  Rial and in the text of the financial statements.
Conclusion: The directors and executives of the National Iranian Oil Company and it's subsidiary companies can value human resources through the proposed model.

Keywords

References

References
Abbasi Fard, M., Karimi, O. (2011). Investigating the effect of implementation of human resource accounting system on managers decisions and employees behavior. Journal of Human Resources Management in Oil Industry, (14), 117-144. (in Persian)
Akintoye, I. R., Awoniyi, O., Jayeoba, O. & Moses Ifayemi, O. (2016). Improvement of human resource accounting disclosure practice in financial statements through IFRS: evidence from Nigerian Banks. International Journal of Business and Commerce, 5 (7), 1-17.
Bozbora, F., beskese, A. & Kahraman, C. (2007). Prioritization of human capital measuring indicators using Fuzzy AHP. Expert System with Applications, 32(4), 1100-1112.
Etemadi, H., & Shahriari, M. (1996). Study the effect of providing human accounting information on the behavior of accounting information users in Iran, Quarterly Journal of Accounting and Auditing Reviews, (16 &17), 55-70. (in Persian)
Fazel, A., Kamalian, A. R. & Rowshan, S. A. (2018). Identification of effective dimensions anh components on academic human resources empowerment, emphasizing the third anh fourth generation of universities with fuzzy Delphi approach: presenting a conceptual model. Journal of Research Strategies in Medical Education, 10 (6), 455-468.
(in Persian)
Gol-Shirazi, H. (2014). The Importance of human resources in Oil industry. Monthly Exploration and Production of Oil and Gas, (115), 2-3. (in Persian)
Hassan Ghorban, Z. (1997). Human resource accounting measurement methods. Journal of Accountant, (120), 11-17. (in Persian)
Hassan Ghorban, Z. (1997). HRM reporting methods, Accountant Monthly, (121), 41-44.
(in Persian)
Hassan Ghorban, Z. (2000). Evaluation of the impact of implementing the human resources accounting system on managers and investors' decisions. Journal of Economics and Management, (41), 19-33. (in Persian)
Karami, GH., & Hasani Azar, E. (2006). Human resource accounting: historical transition. Journal of Official Accountant, (10 & 11), 87-91. (in Persian)
Khodabandehelou, M., Karami, GH., & Talaneh, A. (2017). Developing a model for human capital reporting in accounting. Journal of Management System, (23), 63-77. (in Persian)
Likert, R. & Pyle, W.C. (1971). Human resource accounting: a human organizational measurement approach. Financial Analysts Journal, 27(1), 78-79.
Mandella Bonsu, O.A., Dui, L. K., Ruiwen, L., Asare, E. K. & Prempeh, A.F.S. (2019). Exclusion of human resource accounting in statement of financial position and its effects on performance: empirical evidence of Ghana. Journal of Business and Economic Research, 9(2), 1-17.
Mutmani, A., Hemati, Amin, & Moradi, Hadi (2012). Identifying and prioritizing barriers to establishment of human resources accounting systems in organizations. Work and Society Monthly, (142), 66-58. (in Persian)
Nemati, S., Khayefeahi, A.A., & Dana'ifard, H. (2016). Designing a model for value creation measurement of human resource in the public sector. Journal of Management Research in Iran, (2), 178-157. (in Persian)
Oko, S. U. (2018). Human asset accounting and its impact on the performance and financial position of firms: a study of selected companies. Account and Financial Management Journal, (3), 1703-1712.
Omole, I.I., Bamidele, M.M.  & Odumeru, J. (2017). Human capital accounting and market value of Oil and Gas companies in Nigeria. International Journal of Innovative Research in Science, Engineering and Technology, 6 (11), 21365-21369.
Rana, K. & Maheshawari, S.K. (2005). A Marginal Monetary Worth Human Valuation Model, Scientific Journal of Administrative Development, 3, 72-92.               
Scott Myers, M. & Flowers, Vincent S. (1974). A Framework for Measuring Human Assets, California Management Review, 16(4), 5-16.
Sepahand, R., Shariat Nezhad, A. & Sa'edi, A. (2017). Designing the human capital architecture model in government organizations using Foundation Data Theory. Journal of Human Resource Management and Support, (44), 173-198. (in Persian)
Shafiee Roodposhti, M., Bahrami, F. (2016). Designing a human resource valuation model at Yazd University with human resource accounting approach. Journal of Management in Islamic University, (12), 394-416. (in Persian)
Shukla, A. (2015). Comparative analysis of human resource accounting (HRA) practices in Indian Companies. International Journal of Research & Development, 4(4), 1-7.
Soltanee, M. & Sheikh, R. (2014). Prioritizing human resources accounting indices based on valuation approach in industrial machinery and equipment industry. Journal of Management of Organizational Culture, (2), 213-233. (in Persian)
Talaneh, A. & Pooryanasab, A. (1994). Human Resource Accounting, Quarterly Journal of Accounting and Auditing, 2 (8), 45-70. (in Persian)
Vadi Zadeh, K. & Heidari, Kh. (2009). Human resource accounting (1ed). Isfahan: Asemannegar. (in Persian)
Accounting and Auditing Review
Volume 26, Issue 2
2019
Pages 279-300

Files

Share

How to cite

Statistics