The Use of a Simulation Methodology to Explore Human Resource Accounting

The second of two articles, looks at how a simulation methodology was used to explore the relationship between two prescriptive models of human resource accounting – the replacement cost model (RCM) and the stochastic rewards valuation model (SRVM). Investigates not only the operationalization of the two models, but also the reasoning used by managers in determining or arriving at the data. Goes on to discuss the general benefits and limitations of simulation methodologies and how they relate to prescriptive and descriptive approaches to the study of management.