Appraisal of Human Resource Accounting on Profitability of Corporate Organization

Ezejiofor Raymond Asika; John-Akamelu Racheal Chitom; Iyidiobi Felicia Chelichi

doi:doi:10.11648/j.eco.20170601.11

| Peer-Reviewed

Appraisal of Human Resource Accounting on Profitability of Corporate Organization

Ezejiofor Raymond Asika, John-Akamelu Racheal Chitom, Iyidiobi Felicia Chelichi

Published in Economics (Volume 6, Issue 1)

Received: 11 February 2017 Accepted: 22 February 2017 Published: 28 March 2017

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

This study is to determine the adoption of Human Resource Accounting (increase in staff salary, increment in staff and staff retirement benefits) on the Profitability of Corporate Organizations. Specifically, the study sought; 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 and to evaluate the extent at which staff retirement benefits has effect on organizational profitability. Research questions and hypotheses were formulated in line with the objectives of the study. Exploratory research design and time series data were adopted for this study. Data for the study were collected from selected ten (10) commercial banks in Nigeria. Data collected were analyzed and tested with t-test statistical tool with aid of SPSS version 20.0 version. The study revealed that the study revealed that increase in staff salary has positive effect on organizational profitability, also that the level of increment in staff has influence on organizational profitability. Another finding is that staff retirement benefits have positive effect on organizational profitability. The study recommends among other things that the relevant authorities should look into coming up with a financial reporting standard on human resource activities. Also that organization should enhance the retention of education and training on staff so as to avert wastage of knowledgeable investment.

Published in	Economics (Volume 6, Issue 1)
DOI	10.11648/j.eco.20170601.11
Page(s)	1-10
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Human Resource Accounting, Corporate Organization, Commercial Banks, Profitability and Staff Welfare

References

[1]	Akinsoyinu, A. B. (1992). Human resources accounting: The myth and reality. The Nigerian Accountant, April/June, 18-20.
[2]	Abubakar, S. (2006), “An Assessment of Human Resource Accounting Measures and Application Possibilities in Nigeria”, Unpublished M. Sc. Accounting and Finance Thesis Submitted to the Postgraduate School, Ahmadu Bello University, Zaria, Nigeria.
[3]	Adbullahi, A & Kirfi, M. M (2012). Human Capital Accounting: Assessing Possibilities for Domestication of Practice in Nigeria. Research Journal of Finance and Accounting, 3(10), 57-63.
[4]	American Accounting Association (1973). Report of the committee on accounting for human resources. The Accounting Review, 48(3), 6-11.
[5]	American Accounting Association (1974). Statement of basic accounting theory. The Accounting Review Supplement, 40(9), 85-93.
[6]	Amir, E., B. Lev. 1996. “Value-relevance of nonfinancial information: The wireless communications industry..” Journal of Accounting and Economics, 22: 3-30.
[7]	Boedker, C., Mouristan, J., & Guthrie, J. (2008). Enhanced business reporting: international trends and possible policy directions. Journal of Human Resource Costing & Accounting, 12(1), 14.
[8]	Brennan, N. (2001). Reporting intellectual capital in annual reports: Evidence from Ireland. Accounting, Auditing & Accountability Journal, 14(4), p. 423.
[9]	Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 3(17), 99-120.
[10]	Bowers, David G. (1973). A review of Rensis Likert's Improving the Accuracy of P/L Reports and Estimating the Change in Dollar Value of the Human Organization. Michigan Business Review, p. 25.
[11]	Bassey, B. E & Tapang, A. T (2012). Expensed human resources cost and its influence on corporate productivity: A study of selected companies in Nigeria. Global Journal of Management and Business Research, 12(5), 3-8.
[12]	Boedker, C., Mouristen, J. & Guthrie, J. (2008). Enhanced business reporting: International trends and possible policy directions. Journal of Human Resource Cost and Accounting, 12(1), 14.
[13]	Becker, B. E. & Barry, G. (1996). The impact of human resources management on organizational performance: Progress and prospects. Academy of Management Journal, 39 (4), 779-801. Becker, G. S. (1964). Human capital. New York: McGraw Hill.
[14]	Boedker, C., Mouristan, J. & Guthrie, J. (2008). Enhanced business reporting: international trends and possible policy directions. Journal of Human Resource Costing & Accounting, 12(1), 14 -20.
[15]	Brummet, R. L. (1970). Accounting for human resource, The Journal of Accountancy, 4(5), 62-66.
[16]	Bullen, M. L. (2007). Human resource accounting: A useful tool for measurement and management in organizations. Leadership and Organizational Management Journal, 2(8),85-103.
[17]	Carper, W. B. (2002). The early development of human resource accounting including them impact of evolving asset valuation theory: A manuscript submitted to ninth world congress of accounting historians, Deak in University Melbourne Australia.
[18]	Collins, J. (2001). Good To Great: Why Some Companies Make The Leap, and Others Don’t. New York: Harper Business.
[19]	Davidove, E. A., & Schroeder, P. A. (1992). Demonstrating ROI of training. Training and Development, 46(2), 8, 70.
[20]	Elias, N. (1970). The impact of accounting for human resources on decision-making: An exploratory study. Unpublished Ph. D. Dissertation, University of Minnesota.
[21]	Enofe, A. O., Mgbame, C. Sunday O. S., & Ovie, O.(2013). Human resources accounting disclosures in Nigeria quoted firms. Research Journal of Finance and Accounting, 4(13), 7-12.
[22]	Flamholtz, E. G. (1979). Towards a psycho-technical systems paradigm of organizational measurement. Decision Sciences, 4(4), 71-84.
[23]	Flamholtz, E. G. (1999). Human resource accounting: Advances in concepts (3rd Ed). San Francisco: Jossey-Bass.
[24]	Flamholtz, E. G., Bullen, M. L., & Hua, W. (2002). Human resource accounting: A historical perspective and future implications. Management Decision, 40 (10), 947-54.
[25]	Flamholtz, E. G; Bullen, M. L & Hua, W. (2002). Human resource accounting: A historical perspective and future implications. Management decisions (ABI/INFORM Global). 40(10).
[26]	Flamholtz, E. G. (1999). Human resource accounting: Advances, concepts, methods and applications. Boston, MA: Kluwer Academic Publishers.
[27]	Flamhotz, E. G. & Lacey J. M. (1981). Personnel management, human capital theory, and human resource accounting. Los Angeles: Los Angeles University Press.
[28]	Frederickson, N. (1986). Toward a broader conception of human intelligence. American Psychology, 41(3),445-452.
[29]	Friedman, A. & Lev, B. (1974). A surrogate measure of the firm’s investment in human resources. Journal of Accounting Research,12(4), 235-250.
[30]	Glautier, M. W E. (1974), “Human Resource Accounting: A Critique of Research Objectives for the Development of Human Resource Accounting Models”, A Paper Presented at a Seminar on Human Resource Accounting held at the European Institute for Advanced Studies in Management, Brussels, November 28 – 29.
[31]	Gates, S. (2002). Value at work: The risks and opportunities of human measurement and reporting. The Conference Board USA.
[32]	Hekimian, J. S. & Jones, C. (1967). Put people on your balance sheet. Harvard Business Review, 45 (January/February), pp. 107 – 113.
[33]	Holland, J. (2003). Intellectual capital and the capital market- organization and competence, Accounting, Auditing and Accountability Journal,16 (1): 39-48.
[34]	Jawahar Lal. (2009). Corporate financial reporting, theory and practice cases. University of Delhi. Taxmann publications, pp 280-302.
[35]	Jasrotia, P. (2004), The Need for Human Resource Accounting,http://www.itpeopleindia.com/20021216/cover.shtml.
[36]	Kodwani, A. D. and Tiwari, R. (2007), “Human Resource Accounting – A New Dimension”, A Paper Presented at the Canadian Accounting Association (CAAA) Annual Conference, January.
[37]	Lau, A. H. and Lau, H. S. (1978), “Some Proposed Approaches for Writing Off Capitalized Human Resource Assets”. Journal of Accounting Research, No. 16, pp. 80-102.
[38]	Leffingwell, R. J. (2002), Human Relations Accounting Moves Closer to Daily Use. Michigan, USA: EBSCO Publishing.
[39]	Lev, B. (2001), Intangibles: Management, Measurement, and Reporting. Washington, D.C.: Brookings Institution Press. Likert, R. (1967). The Human Organisation. New York: McGraw-Hill.
[40]	Mustafizur, R., Amzad, H. & Tabassum, A., (2013). Problem with Human Resource Accounting and A Possible Solution. Research Journal of Finance and Accounting www.iiste.org ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.4, No.18, 2013.
[41]	Micah, L. C, Ofurum, C. O, & Ihendinihu, J. U (2012). Firms Financial Performance and Human Resource Accounting Disclosure in Nigeria. International Journal of Business and Management; 7(14), 67-75.
[42]	Okpala, P. O & Chidi O. C (2010). Human Capital Accounting and its Relevance to Stock Investment Decisions in Nigeria. European Journal of Economics, Finance and Administrative Sciences (21). retrieved 23rd January, 2013 from http://www.eurojournals.com.
[43]	Ojha, S. (2013). Prevailing practices of human resource accounting: a case study of IT Industries in India. Journal of Business and Economics, 4(12), 1291-1297.
[44]	Pandey, N. (2014). Human resource accounting: The concept and its practice in India. Journal of Management and Technology, 10(1), 29 -38.
[45]	Pike, S., Rylander, A. and Roos, G. (2000). Intellectual capital management and disclosure, intellectual capital_Mgt_&_Discsloure.pdf.
[46]	Roslender, R. and Fincham, R. (2001), “Thinking critically about Intellectual Capital Accounting”. Accounting, Auditing & Accountability Journal, Vol. 14, No. 4, pp. 383-399.
[47]	Sveiby, K. E. (1997). The new organizational wealth. San Francisco: Berrett-Koehler.
[48]	Syed, A. M (2009). Human resource accounting disclosure of Bangladeshi companies and its association with corporate characteristics. BRAC University Journal,.(1)1, 35-43.
[49]	Starovic, D., & Marr, B. (2003). Understanding corporate value: Managing and reporting intellectual capital. London: Chartered Institute of Management Accountants.

Cite This Article

Plain Text BibTeX RIS

APA Style

Ezejiofor Raymond Asika, John-Akamelu Racheal Chitom, Iyidiobi Felicia Chelichi. (2017). Appraisal of Human Resource Accounting on Profitability of Corporate Organization. Economics, 6(1), 1-10. https://doi.org/10.11648/j.eco.20170601.11

Copy | Download

ACS Style

Ezejiofor Raymond Asika; John-Akamelu Racheal Chitom; Iyidiobi Felicia Chelichi. Appraisal of Human Resource Accounting on Profitability of Corporate Organization. Economics. 2017, 6(1), 1-10. doi: 10.11648/j.eco.20170601.11

Copy | Download

AMA Style

Ezejiofor Raymond Asika, John-Akamelu Racheal Chitom, Iyidiobi Felicia Chelichi. Appraisal of Human Resource Accounting on Profitability of Corporate Organization. Economics. 2017;6(1):1-10. doi: 10.11648/j.eco.20170601.11

Copy | Download

@article{10.11648/j.eco.20170601.11,
  author = {Ezejiofor Raymond Asika and John-Akamelu Racheal Chitom and Iyidiobi Felicia Chelichi},
  title = {Appraisal of Human Resource Accounting on Profitability of Corporate Organization},
  journal = {Economics},
  volume = {6},
  number = {1},
  pages = {1-10},
  doi = {10.11648/j.eco.20170601.11},
  url = {https://doi.org/10.11648/j.eco.20170601.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20170601.11},
  abstract = {This study is to determine the adoption of Human Resource Accounting (increase in staff salary, increment in staff and staff retirement benefits) on the Profitability of Corporate Organizations. Specifically, the study sought; 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 and to evaluate the extent at which staff retirement benefits has effect on organizational profitability. Research questions and hypotheses were formulated in line with the objectives of the study. Exploratory research design and time series data were adopted for this study. Data for the study were collected from selected ten (10) commercial banks in Nigeria. Data collected were analyzed and tested with t-test statistical tool with aid of SPSS version 20.0 version. The study revealed that the study revealed that increase in staff salary has positive effect on organizational profitability, also that the level of increment in staff has influence on organizational profitability. Another finding is that staff retirement benefits have positive effect on organizational profitability. The study recommends among other things that the relevant authorities should look into coming up with a financial reporting standard on human resource activities. Also that organization should enhance the retention of education and training on staff so as to avert wastage of knowledgeable investment.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Appraisal of Human Resource Accounting on Profitability of Corporate Organization
AU  - Ezejiofor Raymond Asika
AU  - John-Akamelu Racheal Chitom
AU  - Iyidiobi Felicia Chelichi
Y1  - 2017/03/28
PY  - 2017
N1  - https://doi.org/10.11648/j.eco.20170601.11
DO  - 10.11648/j.eco.20170601.11
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 1
EP  - 10
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20170601.11
AB  - This study is to determine the adoption of Human Resource Accounting (increase in staff salary, increment in staff and staff retirement benefits) on the Profitability of Corporate Organizations. Specifically, the study sought; 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 and to evaluate the extent at which staff retirement benefits has effect on organizational profitability. Research questions and hypotheses were formulated in line with the objectives of the study. Exploratory research design and time series data were adopted for this study. Data for the study were collected from selected ten (10) commercial banks in Nigeria. Data collected were analyzed and tested with t-test statistical tool with aid of SPSS version 20.0 version. The study revealed that the study revealed that increase in staff salary has positive effect on organizational profitability, also that the level of increment in staff has influence on organizational profitability. Another finding is that staff retirement benefits have positive effect on organizational profitability. The study recommends among other things that the relevant authorities should look into coming up with a financial reporting standard on human resource activities. Also that organization should enhance the retention of education and training on staff so as to avert wastage of knowledgeable investment.
VL  - 6
IS  - 1
ER  -

Copy | Download

Author Information

Ezejiofor Raymond Asika

Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria
John-Akamelu Racheal Chitom

Department of Entrepreneur Studies Unit, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria
Iyidiobi Felicia Chelichi

Department of Accountancy, Faculty of Business Studies, Enugu State University of Science and Technology, Enugu, Nigeria

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Ezejiofor Raymond Asika, John-Akamelu Racheal Chitom, Iyidiobi Felicia Chelichi. (2017). Appraisal of Human Resource Accounting on Profitability of Corporate Organization. Economics, 6(1), 1-10. https://doi.org/10.11648/j.eco.20170601.11

Copy | Download

ACS Style

Ezejiofor Raymond Asika; John-Akamelu Racheal Chitom; Iyidiobi Felicia Chelichi. Appraisal of Human Resource Accounting on Profitability of Corporate Organization. Economics. 2017, 6(1), 1-10. doi: 10.11648/j.eco.20170601.11

Copy | Download

AMA Style

Ezejiofor Raymond Asika, John-Akamelu Racheal Chitom, Iyidiobi Felicia Chelichi. Appraisal of Human Resource Accounting on Profitability of Corporate Organization. Economics. 2017;6(1):1-10. doi: 10.11648/j.eco.20170601.11

Copy | Download

@article{10.11648/j.eco.20170601.11,
  author = {Ezejiofor Raymond Asika and John-Akamelu Racheal Chitom and Iyidiobi Felicia Chelichi},
  title = {Appraisal of Human Resource Accounting on Profitability of Corporate Organization},
  journal = {Economics},
  volume = {6},
  number = {1},
  pages = {1-10},
  doi = {10.11648/j.eco.20170601.11},
  url = {https://doi.org/10.11648/j.eco.20170601.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20170601.11},
  abstract = {This study is to determine the adoption of Human Resource Accounting (increase in staff salary, increment in staff and staff retirement benefits) on the Profitability of Corporate Organizations. Specifically, the study sought; 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 and to evaluate the extent at which staff retirement benefits has effect on organizational profitability. Research questions and hypotheses were formulated in line with the objectives of the study. Exploratory research design and time series data were adopted for this study. Data for the study were collected from selected ten (10) commercial banks in Nigeria. Data collected were analyzed and tested with t-test statistical tool with aid of SPSS version 20.0 version. The study revealed that the study revealed that increase in staff salary has positive effect on organizational profitability, also that the level of increment in staff has influence on organizational profitability. Another finding is that staff retirement benefits have positive effect on organizational profitability. The study recommends among other things that the relevant authorities should look into coming up with a financial reporting standard on human resource activities. Also that organization should enhance the retention of education and training on staff so as to avert wastage of knowledgeable investment.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Appraisal of Human Resource Accounting on Profitability of Corporate Organization
AU  - Ezejiofor Raymond Asika
AU  - John-Akamelu Racheal Chitom
AU  - Iyidiobi Felicia Chelichi
Y1  - 2017/03/28
PY  - 2017
N1  - https://doi.org/10.11648/j.eco.20170601.11
DO  - 10.11648/j.eco.20170601.11
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 1
EP  - 10
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20170601.11
AB  - This study is to determine the adoption of Human Resource Accounting (increase in staff salary, increment in staff and staff retirement benefits) on the Profitability of Corporate Organizations. Specifically, the study sought; 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 and to evaluate the extent at which staff retirement benefits has effect on organizational profitability. Research questions and hypotheses were formulated in line with the objectives of the study. Exploratory research design and time series data were adopted for this study. Data for the study were collected from selected ten (10) commercial banks in Nigeria. Data collected were analyzed and tested with t-test statistical tool with aid of SPSS version 20.0 version. The study revealed that the study revealed that increase in staff salary has positive effect on organizational profitability, also that the level of increment in staff has influence on organizational profitability. Another finding is that staff retirement benefits have positive effect on organizational profitability. The study recommends among other things that the relevant authorities should look into coming up with a financial reporting standard on human resource activities. Also that organization should enhance the retention of education and training on staff so as to avert wastage of knowledgeable investment.
VL  - 6
IS  - 1
ER  -

Copy | Download