Human Capital Development and Organizational Dynamics: The Role of the Accountant
13 Pages Posted: 5 Nov 2015
Date Written: November 5, 2015
Human capital development is an important resource that organizations need to develop to in order to gain competitive advantage. This very important factor which is gathering wider momentum globally has no place in financial reports of organizations. In carrying out this study, literature on human capital development and organizational dynamics: the Role of the Accountant, were extensively reviewed. Two hypotheses were proposed and data were collected via the use of questionnaire from 200 companies from oil servicing and manufacturing firms in Port Harcourt; Rivers State of Nigeria and subsequently analyzed using Spearman Rank Correlation Coefficient and Chi-square statistical tools. Based on the analyses, the following findings emerged; that cost of trainings is not properly recognized in the accounts, and that training opportunity is not properly disseminated. Based on the findings we recommend among others that: the cost of trainings should not be dispensed in the income statement but should be capitalized and depreciated overtime for at least five years; that training programme should be included in the organization’s annual budget plan since increased human capital increases organizational growth in terms of market shares, profitability and fixed assets.
Keywords: Human Capital, Organizational Dynamics, Profitability, Accountant, Income Statement
Suggested Citation: Suggested Citation