1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Research Hypotheses
1.5 Significance of the study
1.6 Scope and limitation of the study
1.7 Definition of terms
1.8 Organization of the study
2.0 LITERATURE REVIEW
3.0 Research methodology
3.1 sources of data collection
3.3 Population of the study
3.4 Sampling and sampling distribution
3.5 Validation of research instrument
3.6 Method of data analysis
DATA PRESENTATION AND ANALYSIS AND INTERPRETATION
4.2 Data analysis
This study is on the impact of human resource accounting on the profitability of firm. The total population for the study is 200 staff of access bank, Uyo, Akewa Ibom state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made account officers, human resource managers, customer care managers and marketer were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
- Background of the study
Human Resource is a term which refers to the set of individuals who make up the workforce of an organization or a business entity. According to Syed (2009), it comprises the energies, skills, talents and knowledge of people which are, or which potentially can be applied to the production of goods or rendering useful services. The success of any organization depends on the ability of the human resources to effectively and efficiently optimize other resources such as land, equipment and money hence human resources are the greatest assets at the disposal of businesses. This is why the statement “our greatest assets are our people” is declared in most companies’ annual reports (Enofe, Sunday & Ovie, 2013). The work of Bassey and Tapang (2012) points to the fact that human resources have been identified as one of the main sources of competitive advantage by many organizations in today’s economy. Particularly, the private sector organizations are widely diverse and have focused on human resources as having special strategic value for organization development. Abdullahi and Kirfi (2012) maintain that the quantification of the value of Human Resources helps the management to cope up with the changes in its quantum and quality so that equilibrium can be achieved in-between the required resources and the provided human resources. As a result, it becomes imperative to put measures in place to effectively manage people with their needs and expectations to enhance productivity. Therefore, proper appreciation of human resource accounting will enable managers take appropriate decisions regarding investment in human resources. It will also provide comparative information regarding costs and benefits associated with investments in human assets. It is a truism that information as to human asset has not been noticeable and presented on the financial statement of organizations and it makes it difficult to measure or evaluate the real profit of a firm. The growing trend towards the measurement and reporting of human asset in corporate annual reports is particularly not noticeable in the financial report of corporate organizations. Corporate organizations, by charging expenses of recruitment, training, familiarization and development of human resources to the current period’s profit or loss account, understate profits or overstate losses, by not accounting for expenses related to human resources, even when they substantially conceal asset and net worth.
1.2 STATEMENT OF THE PROBLEM
The success of any organization depends on the ability of the human resources to effectively and efficiently optimize other resources such as land, equipment and money hence human resources are the greatest assets at the disposal of businesses. Therefore, proper appreciation of human resource accounting will enable managers take appropriate decisions regarding investment in human resources. On this background make the researcher wants to investigate the impact of human resource accounting on the profitability of firm
1.2 OBJECTIVE OF THE STUDY
The objectives of the study are;
- To determine the extent at which increase in staff salary has affected organizational profitability
- To ascertain if the increment in staff has contributed positively on organizational profitability
- To ascertain the significant relationship between staff training costs and the profit
1.4 RESEARCH HYPOTHESES
For the successful completion of the study, the following research hypotheses were formulated by the researcher;
H0: there is no extent at which increase in staff salary has affected organizational profitability
H1: there is extent at which increase in staff salary has affected organizational profitability.
H02: there is no significant relationship between staff training costs and the profit
H2: there is significant relationship between staff training costs and the profit
1.5 SIGNIFICANCE OF THE STUDY
The study will give clear insight on the impact of human resource accounting on the profitability of firm. The study will be beneficial to students and any firm. It will also serve as a reference to other researchers that will embark on this topic.
1.6 SCOPE AND LIMNITATION OF THE STUDY
The scope of the study covers the impact of human resource accounting on the profitability of firm. The researcher encounters some constrain which limited the scope of the study;
- a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
- b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
- c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities
1.7 DEFINITION OF TERMS
HUMAN RESOURCE: Human resources are the people who make up the workforce of an organization, business sector, or economy. “Human capital” is sometimes used synonymously with “human resources”, although human capital typically refers to a more narrow effect.
ACCOUNTING: Accounting is the systematic and comprehensive recording of financial transactions pertaining to a business, and it also refers to the process of summarizing, analyzing and reporting these transactions to oversight agencies and tax collection entities.
PROFITABILITY: The degree to which a business or activity yields profit or financial gain.
1.8 ORGANIZATION OF THE STUDY
This research work is organized in five chapters, for easy understanding, as follows
Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study