Abstract
This study aimed at determining the extent to which human capital cost influences gross domestic product in Nigeria. Hitherto, human resource was treated as expenses and written off in profit and loss account. No recognition was given to the skills of labour in human resource accounting and recently in intellectual capital. The research adopted a survey design for the study. The data collected were tabulated and analyzed using the Ordinary Least Square (OLS). The study revealed that human capital costs mirrored by acquisition, development, remuneration and protection costs do affect significantly gross domestic product in Nigeria. The study recommended that there is urgent need for the installation and maintenance of total quality management in Nigeria to enable it remains competitive in the global market. This is because employee’s education, training and development are the key vehicle for building the economy and employee’s capabilities. Finally, government should try to understand and appreciate the value of human capital as it is the most important determinant of it success.
Highlights
The economic environment has shifted from industry based with focus on physical assets such as factory, machines and equipment to a high technology, information and innovation based environment with focus on expertise, talents, creativity, skills and experience of people – the company’s human capital
The findings of this study revealed that acquisition cost does affect gross domestic product
The study revealed that development cost is highly and significantly related to gross domestic product in Nigeria
Summary
The economic environment has shifted from industry based with focus on physical assets such as factory, machines and equipment to a high technology, information and innovation based environment with focus on expertise, talents, creativity, skills and experience of people – the company’s human capital. This is because every business requires physical assets as well as human resources for its success. Experience, know-how, attitude, behaviour and value system of employees with a different way can improve the efficiency of production or services and create more wealth to an organization; human resources are the creative and innovative force which strives to secure maximum results (Brummet, 1970). The success of this organization is contingent on the quality of their
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