THE IMPACT OF HUMAN RESOURCE ACCOUNTING ON THE PROFITABILITY OF A FIRMS
CHAPTER ONE
INTRODUCTION
1.1 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
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