| LINKING HUMAN RESOURCE REPLACEMENT COST TO HUMAN RESOURCE MANAGEMENT Tang Tang Issue 27 (Vol. 14, No. 1), June 2004, pp. 41-59. Integral to businesses operating within knowledge economies, many companies experience problems relating to human resource management. Human Resource Accounting (HRA) can be applied to improve the effectiveness of human resource management. In this article, a heuristic framework of Human Resource Replacement Cost (HRRC) system that addresses the link between human resource cost and decision-making developed by the author, is discussed. The system has the capability of measuring human resource replacement costs; which is applied to a Chinese State-owned Enterprise within the Metro industry. Usefulness of HRRC information is analyzed in the context of decision-making in employee turnover, separation indemnity, duration of labor contracts, and personnel budgets. |