Shikshan Sanshodhan : Journal of Arts, Humanities and Social Sciences

This paper examines the role of Human Resource Accounting (HRA) in enhancing the profitability of NTPC Co. Ltd., emphasizing the contribution of investments in human resources to financial success. The paper also discusses the conceptual framework of HRA. It discusses challenges in implementing HRA, such as the absence of standardized valuation techniques, reliance on traditional accounting methods, and difficulties in measuring intangible workforce qualities like leadership, innovation, and safety culture. The main findings reveal a strong positive correlation between Net Profit and both Gross Employee Cost (GEC) and Staff Training Cost (STC), indicating that increased spending on employee compensation and development significantly enhances profitability. Conversely, the link between Earnings per Share (EPS) and the number of employees is weak and statistically insignificant, indicating workforce size does not influence shareholder returns. The review underscores the importance of strategic HR investments for NTPC’s sustained growth, despite current valuation limitations. It recommends developing a standardized HRA framework, improving training assessment methods, and incorporating intangible HR metrics. Future research should explore advanced valuation models and cross-company analyses to better integrate HRA into strategic decision-making.