Effect of Human Resource Development On The Growth of Organizations A Study of Five Selected Quoted Companies

© AUG 2021 | IRE Journals | Volume 5 Issue 2 | ISSN: 2456-8880
Effect Of Human Resource Development on The Growth

of Organizations A Study of Five Selected Quoted
Companies
OGUJIOFOR MAGNUS NKEMJIKA1, ASHIBOGWU NZE KINGSLEY2, MONYE OSITA3
1, 2, 3
Novena University Ogume, Delta State.
Abstract- The study examines the effect of human participation of employees’ and hence, reflects in the
resource development on the growth of intended business outcome. The extent to which,
organizations; the main objective of the study is to human resource development affect organizational
investigate the effect that human resource growth and performance has emerged as the central
development have on the growth of an organization. factor in the development of an organization. (Becker
Using an ex-post- facto research design, secondary and Gerhart, 1996; Guest, 1997). Although human
source of data using regression analysis, a resources practices may have a positive effect on
population of five different quoted company in organizational development and performance, most
Nigeria stock exchange and a sample size of five scholars suggest that more conceptual and empirical
quoted company which was purposively selected work is required (Brewster, 2004; Cardon and Stevens,
from Nigeria stock exchange. The Finding from the 2004; Givord and Maurin, 2004; Zhu, 2004). For the
study indicates that human resource development moment, Human resource development is considered
plays very vital role in the growth of an organization as the most valuable asset in an organization and
and that employee training cost and staff makes a difference for most organisations (Pfeffer,
conferencing attendance cost all have significant 1998; Wimbush, 2005).
effect on the growth of an organization. This study
therefore, recommended that human resource The link between human resources development and
should never be neglected in an organization, it firm growth is well documented in classic economic
should be effectively trained to ensure adequate theory. Overwhelming evidence suggests that growth
organizational productivity and performance that is driven by specialization and division of labour in the
can lead to organizational growth. Human resources processes of generation and attraction/development of
development should be well funded to enable technological opportunities. However, at the firm level
effective growth and human resource development of analysis, only recently the link between human
Programmes should be well planned in order to resource development and growth in an organization
ensure effective training and performance of the has attracted the interest among most researchers.
individual in contributing to the growth of the Firm growth is often seen as an indication of market
organization acceptance and firm success (Fesser and Willard,
1990). Growth is considered as a top strategic priority
Indexed Terms- Human Resource, Development, for most firms yet only few companies achieve growth
Organizational Growth, Quoted Company (Baum and Wally, 2003; Zook and Allen, 2003).
I. INTRODUCTION The concept of human resource development in the

growth of an organization is in the early stage of
1.1 Background Of the Study development in developing countries like Nigeria,
Human resources development is very crucial issue in Ghana, Cameroon and etc. Similarly, the total worth
an organization. To an organization, it is regarded as a of an organization depends mainly on the skills of its
means to achieve effective human resources employees and the services they render. Hence, the
development objectives. The effectiveness of Human success of these organizations is contingent on the
Resource Development depends on the degree of quality of their human resource ability of the
IRE 1702889 ICONIC RESEARCH AND ENGINEERING JOURNALS 95

organization. In knowledge driven economies i. To investigate the extent employee training cost,
therefore, it is imperative that the human resource affect organisational growth.
development as an integral part of organizational ii. To ascertain the extent staff conference attendance
elements be recognized as a total worth of an cost, affect organizational growth.
organization. However, in order to estimate and iii. To examine the link of human resources training in
project the worth of the human resource, it is necessary organization in relation to the in-service training
that some method of quantifying the worth of the cost on growth of the organization.
knowledge, motivation, skills, and contribution of the iv. The effect of human resource development on
human elements be ascertained. Human Resource company net assets in relation to organizational
development (HRA) denotes just this process of growth.
quantification/measurement of the Human Resource
(Prasad & Kumar, 2006). 1.4 Research Questions
In order to give direction to this research and to gather
1.2 Statement of The Problem arrived at relevant findings. The following questions
Despite so much recognition and debate on human were posed.
development as the primary source of corporate 1. To what extent do employee training cost affect
performance in organizational productivity output and organisational growth.
financial profitability in particular, there seem to be 2. To what extent do staff conference attendance cost
little emphasis of this cognisance amongst corporate affect organizational growth.
managers in Nigeria toward the development of 3. What is the extent of the link between human
human resource (Brewster, 2004). One problem is resource training in relation to in-service training
that there is lack of recognition about the significant cost on growth of an organization?
contributions of human resource development towards 4. What is the effect of human resource development
the growth and performance of organization and this on company net assets in relation to organizational
has become one of the factors which affect the growth?
development of human resources. Inadequate
knowledge of the relationship between the costs of 1.5 Research Hypotheses
human resources development deprives corporate The following five (5) hypotheses formulated to test
firms of the access to the economic basis and the each of the responses of the respondents to the
growth of the organization. Inadequate funding of research questions posed.
human resource by organization as confirmed in the H01: Employee training cost has no significant effect
work of Central Bank of Nigeria (2000) is another on organizational growth.
problem which affects human resource development H02: Staff conference does not significantly affect the
and the growth of organization (Itsede 2003). The growth of organization.
tremendous increase in organizational output at all H03: Human in-service training cost has no significant
levels have been affected because of poor human relationship on growth of an organization.
resource development and the declining quality of the H04: There is no significant effect of human resource
trained manpower concerned without geometric development on company net assets in relation to
increase in the public expenditure of most developing organizational growth.
countries like Nigeria towards the actualization of the
aim of the organization has greatly reduce the rate of 1.6 Significance Of the Study
organizational growth in Nigeria. Based on these This study will add new knowledge to current
backdrops the study examines the effect of human theoretical work in Human Resource Development
resource development on the growth of organization. and will be of benefits to those interested on the
effective of Human Resource Development. The study
1.3 Objectives of The Study is also significant since it will evaluate the relationship
The main objective of the study is to determine the which exist between the human resource development
effect of human resource development on the growth and the growth of organization and at the same time
of organizations. While other specific objectives are: provide various reasons why it is necessary for an

organization to invest on human resource. The study 1.9 Definition of Terms

will also provide reasons why it is necessary for an • Capital Employed: This is the amount available for
organization to adequately focus in developing their production. It represents the total less current
human resource personnel. The research will also liabilities employed in the business.
provide a new conceptual framework. The research • Human Capital (HC): Human capital is all the
will provide a sound model which will provide ground Expenses incurred on Compensation and
for future research and practice and provide development of employees. HCE = Value Added /
conceptual framework for further empirical research. Human Capital (VA/HC)
The findings of this research will also be of benefit to • Human Capital Efficiency (HCE): Human capital
Human resource development practitioners who are efficiency is the ratio of value added to human
often criticized by lacking of strategic linkages with capital. This ratio shows the value added by every
business in practice thus curiously looking for unit of money spend on the human resources of the
strategic approaches in practical arena; a new model banks in the form of compensation and
proposed by this study can help them refresh ideas development expenses.
beyond the current paradigms and link to their • Input: It is the sum of all the costs that is incurred
practices with two-stage strategic objectives: financial by the organization towards purchase of inputs for
performance and sustainable competitive advantages. operating and continuing the business.
The research findings will also be of great important • Management: The art of getting things done
to different organizations who want to achieve a great through people. Management is also the process of
level of organizational growth on the need to invest on planning, organizing, leading and controlling the
their human resource development programme. The efforts of organization members and the use of all
study will also serve as a source of reference to fellow other organizational resources to achieve the stated
researchers who will want to work on the effect of organizational goal.
human resource development in an organization. • Output: It is the total of all income/revenue
generated during the financial year by an
1.7 Scope of the study organization by selling its goods or services.
The research work is limited to “The effect of human
• Profit Optimization: Making the highest amount of
resource development on the growth of organizations:
profit given the available resources.
using five different quoted companies. The financial
• Value Added: Value added is the difference
statement of the companies to which this study will
between the Output and Input. It is the value
also be limited covers a period of ten (10) years. The
created by the organization during the particular
study will use the following firms as a selected case
financial year. Value Added= Value of Output –
study: First Bank Nig Plc, located in Awka Anambra
Value of Input
state, Dangote Sugar Nig Plc located in Ikoyi Lagos
state, Dangote Cement Nig Plc located in Gboko
II. REVIEW OF RELATED LITERATURES
Benue state ,7 up bottling Company Plc located in
Nine mill Enugu state and Gtb Bank Plc in Anambra
2.1 Conceptual framework
state.
• Concept of Human Resource Development
1.8 Limitation Of the Study
At organizational level, the concept of Human
Some of the limitation encountered during the course
resource development refers to the full range of
of the study was the difficulty in accessing data from
strategies, tools, processes, procedures and structures
the quoted companies used for the study. Other
that are employed in a given organization, aimed at
limitation is the difficulty in locating some of the firms
improving the capability of the organizations
used due to geographical location.
workforce to achieve its goals (Itsede 2003) Although
the focus here is at the level of individual, it should be
noted that the abilities of individuals are constrained
by the systems in which they work. According to

(Harbison 1973; Salleh 1992) human resources Human resources development is a combination of
development refers to a conscious and continuous Training and Education that ensure the continual
process of acquiring and increasing the number of improvement and growth of both the individual and
employee, training the employee with the requisite the organisation. Adam Smith states, “The capacities
knowledge, education, skills and experiences that are of individuals depended on their access to education”.
crucial for organizational and economic development Kelly D, (2001). Human Resources Development is
of an organization and the country. the medium that derives the process between training
and learning. Human Resources Development is not a
Gulcin (2006) is of the opinion that Human resource defined object, but a series of organized processed,
development (HRD) encompasses the broad set of ‘with a specific learning objective’ (Nadler, 1984).
activities that improve the performance of the Human Resources Development is the structure that
individual and teams. Schmidt and Kunzmann (2006) follows for individual development, potential
revealed in ‘holistic view on human resource satisfying the organisation’s goals. The development
development’ that Human Resource Development of the individual will benefit both the individual and
must be understood in a broad sense, incorporating the organisation. The Human Resources Development
formal training, self-directed learning, informal and framework view employees, as an asset to the
collaborative learning activities. enterprise whose value will be enhanced by
development, “its primary focus is on growth of the
Therefore, from all this views human resource organization involved and employee’s development, it
development can be defined as all the facilities emphasizes developing individual potential, rural
including man power needed for the efficient running potential and organisational potentials.
of organization in other for such organization to grow.
Organizational growth comprises the actual output or In most formulations of Human Resource
results of an organization as measured against its Management, training and employee development
intended outputs (or goals and objectives) (Gulcin represent significant pivotal components. Ashton and
(2006) Felstead (1995) regard the investment by an
organisation in the skills of employees as a ‘litmus
According to Richard (2009) organizational growth test’ for a change in the way they are manages. First,
encompasses three specific areas of firm outcomes: (a) the replacement of the words ‘training cost’ with
financial performance (profits, return on assets, return investment responses to the outcomes of HRD where
on investment, etc.); (b) product market performance the continuation of viewing training as a short-term
(sales, market share, etc.); and (c) shareholder return cost has persistently acted as a powerful break of many
(total shareholder return, economic value added, etc.). training strategies. Secondly, HRD acts as a triggering
Organizational growth, however, means different mechanism for the progressive of other HRM policies
things to different organizations. There are many that are aimed at recruiting, retaining and rewarding
parameters a company may use to measure its growth. employees who are recognized as the qualitative
Since the ultimate goal of most companies is difference between organisations. The investment in
profitability, most companies will measure their employee learning is a way of creating a primary
growth in terms of net profit, revenue, and other internal market and policies aimed at progressively
financial data. Other business owners may use one of upgrading skills reduce an organization’s dependency
the following criteria for assessing their growth: sales, on eternal sources of skill. Third, if it is an HRM
number of employees, physical expansion, success of strategy to engender the conditions whereby loyalty
a product line, or increased market share. Ultimately, and commitment towards an organization’s aim can be
success and growth will be gauged by how well a firm encouraged, HRD carried the prospect of unleashing
does relative to the goals it has set for itself (Boggs & the potential that lies within all people, allowing
Robert ,2004). employees to contribute to the growth of the
organization. In recent years, ideas and practice
Human Resources Development is a framework for relating to HRD have moved beyond a narrow
the expansion of human capital an organisation. conception of training and development. Many

organizations now attempt to take a holistic view that sets, abilities, and knowledge associated with learning
embraces the idea if learning at individual and in technical, social, and interpersonal areas. Metcalfe
organizational levels as a crucial source of competitive & Rees (2005) expressed by extracting from many
advantage. Technology, global markets, customers’ studies that management and organizational writers
expectations and competition have all contributed to have noted, the field of Human Resource
the view that learning is the only strategy to cope with Development has expanded beyond training and
change. HRD has moved out of training departments development to include a strong connection to
into every aspect of organizational life as many have corporate strategy, individual responsibility for
attempted to become learning organizations with learning, extension into team learning, incorporation
increasing moves towards finding ways to integrate of career development, an emphasis on internal
work and learning. There has been a growing emphasis consultancy, organizational learning and knowledge
on viewing an organization as a total learning system management and the nurturing of the intellectual
and finding its core competencies which reveals its capital of an enterprise.
collective learning (Prahalad and Hamel, 1990). In
addition, continuing advance sin networked Swanson and Holton (2011) expressed that Human
information technology and accelerating change have Resource Development is a process of developing and
stimulated a growing interest in organization learning unleashing expertise for the purpose of improving
and knowledge management, the development of an individual, team, work process, and organizational
organization’s intellectual capital (Edvinsson and system performance. Human Resource Development
Malone, 1997) and the potential for learning between fforts typically take place under the additional banners
organizations. of “training and development” and “organization
development” as well as numerous other titles. Two
The importance of human resources development in major realms of practice take place within Human
the overall national development and the well-being of Resource Development. One is organization
people is certainly not a new idea. It has been noted by development (OD); the other is training and
Adam smith in his Classic writings in 1776 that the development (T&D). Organizational Development
bases for national wealth are skill, dexterity and focuses at the organization level and connects with
competence of individuals. This conception is further individuals, while Traninig & Development focuses
given prominence by the ancient proverb: “if you are on individuals and connects with the organization.
planning for a year, sow rice. For ten years, plant trees.
For hundred years, educate people. (Salleh 1992) The According to Schmidt and Kunzmann (2006) Human
classical economists thus, commented on the role of Resource Development must be understood in a broad
human resource development through education sense, incorporating formal training, self-directed
towards the economic growth of a country at large. learning, informal and collaborative learning
They believed that it is through education that human activities. Kumar (2005) expressed that Human
resources needed in areas of construction and heavy Resource Development is not only training for
industries, schools, colleges, hospitals and a host of operational skills but also includes behavioural skills
other activities associated with development can be as it ultimately aims to create an enabling culture
provided. Smith further concluded that the acquisition wherein the capabilities which are “acquired,
of talents and skills by an individual through sharpened and used.
education, study or apprenticeship is a fortune not only
to the person himself but to the society to which he The belief that individual employee performance has
belongs. implications for firm-level outcomes has been
prevalent among academics and practitioners for many
Egan, et al (2004) expressed with reference to years. Interest in this area has recently intensified;
(Kuchinke, 1996) that Human Resource Development however, as scholars have begun to argue that
has extended beyond a narrow concentration on collectively, a firm’s employees can also provide a
training to include organizational and systems-level unique source of competitive advantage that is
issues that influence the development of broad skill difficult for its competitors to replicate. For example,

Wright and McMahan (1992), resource-based theory applicants, paired with a reliable and valid selection
of the firm, contended that human resources can regimen, will have a substantial influence over the
provide a source of sustained competitive advantage quality and type skills new employees possess.
when four basic requirements are met. First, they must Providing formal and informal training experiences,
add value to the firm’s production processes; levels of such as basic skills training, on-the-job experience,
individual performance must matter. Second, the skills coaching, mentoring, and management development,
the firm seeks must be rare. Since human performance can further influence employees’ development. The
is normally distributed, Wright and McMahan (1992) effectiveness of even highly skilled employees will be
noted, all human resources meet both of these criteria. limited if they are not motivated to perform. However,
The third criterion is that the combined human and Human Resource Development and its
resource development invests on a firm’s employees management practices can affect employee motivation
cannot be easily imitated. by encouraging them to work both harder and smarter.
Examples of firm efforts to direct and motivate
Although human resources are not subject to the same employee behaviour include the use performance
degree of limitability as equipment or facilities, appraisals that assess individual or work group
investments in firm-specific human capital can further performance, linking these appraisals tightly with
decrease the probability of such imitation by incentive compensation systems, the use of internal
qualitatively differentiating a firm’s employees from promotion systems that focus on employee merit, and
those of its competitors. Finally, a firm’s human other forms of incentives intended to align the interests
resources must not be subject to replacement by of employees with those of shareholders (e.g., profit-
technological advances or other substitutes if they are and gain-sharing plans).
to provide a source of sustainable competitive
advantage. Although labour-saving technologies may Bailey (1993) noted that the contribution of even a
limit the returns for some forms of investment in highly skilled and motivated workforce will be limited
human resource development, the continuing shift if jobs are structured, or programmed, in such a way
toward a service economy and the already high levels that employees, who presumably know their work
of automation in many industries make such forms of better than anyone else, do not have the opportunity to
substitution increasingly less probable. Wright and use their skills and abilities to design new and better
McMahan’s (1992) work points to the importance of ways of performing their roles. Thus, Human
human resources in the creation of firm-specific Resource management practices can also influence
competitive advantage. At issue, then, is whether, or firm performance through provision of organizational
how, firms can capitalize on this potential source of structures that encourage participation among
profitability. employees and allow them to improve on how their
jobs are performed. Cross-functional teams, job
Bailey (1993) contended that human resources are rotation, and quality circles are all examples of such
frequently “underutilized” because employees often structures. Thus, theoretical literature clearly suggests
perform below their maximum potential and that that the behaviour of employees within firms has
organizational efforts to elicit discretionary effort important implications for organizational performance
from employees are likely to provide returns in excess and that human resource development can affect
of any relevant costs. He argued that Human Resource individual employee performance through their
development (HRD) practices can affect such influence over employees’ skills and motivation and
discretionary effort through their influence over through organizational structures that allow
employee skills and motivation and through employees to improve on how their jobs are
organizational structures that provide employees with performed.
the ability to control how their roles are performed.
Human resource development practices influence The Efficiency in using human resources plays an
employee’s skills through the acquisition and important role in determining the strength of the
development of a firm’s human capital. Recruiting organization. Increase in the value is the major
procedures that provide a large pool of qualified objective of most commercial firms; banks are no

exception to this. Measuring the increase in value also performance. The conceptualization of Human
becomes challenging when the value itself is being Resource Development (HRD) by the various scholars
created by intangibles. above point to the fact that it is a medium by which
employees in an organization are transformed from
2.1.1 Human Resource Development and Employee their present state, to a desired state of affairs in the
Performance area of improved skills and knowledge through
training (capacity building) ability for the purpose of
Several researches in literature point to the fact that achieving enhanced performance of organizational
Human Resource Development is a vital strategy for workforce. This means that an organization that lacks
the improvement of employees for the attainment of the ability to improve its employees in the area of
organizational goals, enhance products and service training for required skills and knowledge through the
delivery for the survival and growth of any enterprise adoption of the strategy of HRD is more likely not to
either in public or private sector (Riordan et al, 2005, have in its employment the competent manpower
pp. 471-488; Rodrigues and Chincholkar, 2005, pp. 6- needed to achieve its goals of enhanced
20; Paprock et al, 2006, pp. 46-61). According to products/service delivery for profit maximization. The
Harbison and Myers (1964). Human Resource foregoing implies that there is a relationship between
Development is the process of increasing the HRD capability of an organization and higher
knowledge, skills, and capabilities of all people in a productivity of the employees of that particular
given society or organization. This according to them organization.
is done through the process of formal education, on the
job through systematic and informal training 2.1.2 Human Resource Development Planning
programme and also for self-development on the part
of the individual employee through personal initiative, According to Wikipedia (2012) Human resources
arising from his/her willingness to acquire new ideas planning is the process that identifies current and
for higher productivity. future human resources need for an organization to
achieve its goals. Human resources planning should
Probably, what appears to be a comprehensive serve as a link between human resource management
conceptualization of Human Resource Development and the overall plan of an organization. The planning
was given by Rodrigues and Chincholkar (2005, pp. 6- processes of best practice organization not only define
20) as the process of improving, moulding and what will be accomplished within a given time frame,
changing skills, knowledge, creative abilities, but also the numbers and type of human resources that
aptitude, attitude, values, commitment, based on will be needed to achieve the defined organization
present and future job and organizational requirements goals.
for improved productivity in the workplace. In the
same vein, the HRD-SA (2009), describes Human Wisk Geek (2012) described Human Resource
Resource Development (HRD) “as the formal and Planning as classic Human resource administrative
explicit activities that will enhance the ability of all functions and the evaluation and identification of
individuals to reach their full potential” (cited in human resources requirement for meeting
Moorhouse and Cunningham, 2010, pp. 587-597). organizational goal. It also requires an assessment of
Emphasizing the importance of HRD on employees‟ the availability of the resources that will be needed.
improved performance; Riordan el at (2005, pp. 471- Human resource planning is one way to help a
488), argue that appropriate, ongoing training enables company develop strategic and predict company’s
employees to develop the knowledge required for needs in order to keep their competitive edge.
effective performance in an organization for higher
productivity. On their part, Paprock et al, (2006), posit Effective people management and development is key
that evidences abound from the public and private to achieving improvement, unless the company can
sectors about the unique role of Human Resource attract, retain develop, manage and motivate its
Development in bringing about the availability in an employees it will find it more difficult to meet the
organization of competent employees for improved increasing demand for service improvement,

modernization and high performance (source: Human Yorks, 2005) are found mostly focused on bringing
resource circular (2005). Workforce (human resource) together and building on a comprehensive body of
planning is the process of getting the right people, with knowledge of Strategic Human Resource
the right skills in the right jobs at the right time Lazar Development and it roles in the growth and
(2001). development of an organization (Torraco & Swanson,
1995). But few Human Resource Development
Workforce (Human resource) planning means literature can be found to address specific Strategic
• Identifying current and future number of Human Resource Development theoretical
employees required to deliver new and improved framework. Instead, in the related field, strategic
services. Analyzing the present workforce in human resource management (SHRM) has been
relation to these needs. particularly warm discussed for its theoretical
• Comparing the present workforce and the desired perspectives (Delery & Doty, 1996; Pfeffer, 1995;
future workforce to highlight shortage surpluses Wright & McMahan, 1992). The situation of
and competency gaps. theoretical work Strategic Human Resource
• Analyzing the council’s diversity profile at all Development now is very similar to what it was for
levels against that of the local population (Human Strategic Human Resource Management a decade ago
resource circular 2005). to gain its self-identity and enhance its own theoretical
framework from the mother matrix.
Human resource planning may be defined as a strategy
for the acquisition, utilization, improvement and Some author defines organizational strategic Human
preservation of the human resources of an Resource Development as a systematic process of
organization. It is the activity of the management developing strategic human resources (which
which is aimed at coordinating the requirement for and including talent development, training/development,
the availability of different types of employees. This organization development, performance development,
involves ensuring that the company has enough of the and leadership development) in order to enable
right kind of people at the right time and also adjusting organization to achieve its strategic objectives which
the requirement to the available supply: Lazar (2001). including financial performances and sustainable
competitive advantages.
The major activities of Human resource planning
include The theoretical foundation of this definition comes
1. Forecasting future manpower requirement from the resource-based view of firm and human
2. Inventorying present manpower resources and resource (Barney, 1991; Wright et al., 1992; 2001).
analysing the degree to which these resources are The resource-based view focuses on an internal
employed optimally. analysis of the firm providing an extremely important
3. Anticipating manpower problems by projecting avenue for researchers to examine the ways that firms
present resources into the future and comparing attempt to develop human resources as a competitive
them with the forecast of requirement. advantage (Wright et al., 1992). This theory provides
4. Planning: - the necessary programmes of a framework for viewing human resources as a pool of
recruitment, selection, training etc for resource unique skills, knowledge, ability, and experience that
Development future manpower requirement. can provide a resource to serve as a sustainable
Source units (2012) competitive advantage; which is different from
traditional views of neoclassical economics and
2.2 Theoretical Literature industrial organization (Lado et al., 1992). Another
• Strategic Human Resource and Strategic Human research by Wright et al. (1992) also suggests four
Resource Development criteria for a sustainable competitive advantage and
Previous Strategic Human Resource Development attempt to evaluate the conditions under which human
literature (Garavan,1995; McCracken & Wallace, resources meet these criteria. This resources that must
2000; Gilley & Maycunich, 2000; Walton, 1999; be meet are:

1) In order for human resources to exist as a support this belief”. In the same context, it is noticed
sustainable competitive advantage, they must by Blinder (1990, p.117) that “employees usually feel
provide value to the firm. that profit sharing and gain sharing are good for
2) A resource must be rare if it is to be sustainable personal effort, company growth and productivity, and
competitive advantage. workplace atmosphere”.
3) In order for a resource to be considered a
sustainable competitive advantage, human However, in order for the firms or organization to
resources must be inimitable. achieve the maximum level of growth, it is necessary
4) A resource must not have substitutes if it is to be to design and apply the appropriate Human Resource
considered a sustainable competitive advantage. policies as indicated by each particular firm’s needs.
The use of ‘fit’ as a criterion of evaluation of the
Human resources should be considered as a significant appropriate corporate strategy has been extensively
organizational asset. In this context, the application of used in practice. Towards this direction Wright (1998,
the appropriate strategies for its development, can lead p. 56) mentioned that “the basic theory behind "fit" is
to the improvement of the corporate performance both that the effectiveness of any Human Resource practice
in the short and the long term. However, there are also or set of practices for impacting firm performance
companies where human resources are not considered depends upon the firm's strategy (or conversely, the
as having particular importance for the firms’ growth. effectiveness of any strategy depends upon having the
In this context, Haines (1997, p. 95) supported that right Human Resource practices)”. In other words, the
there are firms that “view their human resources as an issues that need to be considered by a firm before
expense rather than an asset an element that is applying any relevant Human Resource strategy are
expendable and perhaps discarded when the skills many. Indicatively, Katzell (1975, p.5, 11-12) tried to
possessed becomes obsolete; however, when human identify the relationship between the employee
resources are viewed as an asset, companies enhance satisfaction (as a result of a specific Human Resource
individual value through training and human strategy) and the corporate performance and found that
development and ensure continued contribution to the “policy-makers must face up to a serious dilemma and
organization”. The importance of human resources for find some way to resolve it; the dilemma is this:
the corporate performance has in any case proved both policy-makers would like to achieve two objectives for
in the literature and the empirical research conducted work organizations, on the one hand to enhance
in all industrial sectors. In accordance with the above, productivity and performance, and on the other to
in order for a firm or organization to achieve a stable improve the quality of working life and job
and continuous growth, it is necessary that its satisfaction for employers because under certain
employees are satisfied. More specifically, in conditions, improving productivity will enhance
accordance with Kim (2005, p.669) “job satisfaction is worker satisfaction and improvements in job
an affective or emotional response toward various satisfaction will contribute to productivity; what it
facets of one's job. Job satisfaction has been a topic of does mean is that there is no automatic and invariant
great interest for researchers and practitioners in a relationship between the two”.
wide range of fields, including organizational
psychology, public administration, and management”. Under these terms, corporate performance has been
On the other hand, the existence of job satisfaction has found to be related with the employees’ performance
been extensively related with the level of payment of within a particular organization. From a different point
employees in the particular sectors of a specific of view, Lawler et al. (2003, p.15) supported that
organization. Indeed, the study of Rudman (2003) ‘Human Resource's greatest opportunity to add value
showed that “paying for performance is a big issue in may well be to play a role in the development and
contemporary human resources development and implementation of corporate strategy; Human
management; organisations have long believed that Resource can make a logical contribution as an
production and productivity improve when pay is important part of strategy development, because of the
linked to performance, and have developed payment- importance of human capital in the ability of the firm
by-results (PBR) systems and incentive schemes to to carry out its strategy”. In other words, Human

Resource strategy can influence the firm’s growth in The above elements can exist in any organization and
accordance with the measures provided for the can influence the productivity of its employees either
personal and professional development of the firm’s in the short or in the long term.
employees even in the long term. The implementation
of appropriate diversity strategy has to be considered 2.2.1 Human Resource Training and Development
in this case as absolutely necessary because in case of Human resource is systematic process of training and
inequality in the workplace, no cooperation would be growth; by which individual gain apply
regarded as existed even if such cooperation exists, it knowledgeable insight, attitude to manage
will be problematic. In this context, Mathews (1998, organization and to work effectively. It emphasizes the
p. 175) noticed that “before diversity strategies are opportunity to apply one’s knowledge and need to
implemented, the organization's cultural environment, learn and grow by so doing knowledge is meaningless
management and evaluation systems should be unless there is opportunity to apply it and this is
examined to ascertain if existing personnel/human achieved through exposure.
resources processes will support or hinder diversity in
the organization; then, appropriate strategies can be Human resource development as a theory is a
designed to develop and manage diversity based on the framework for the expansion of human capital within
findings”. an organization through the development of both the
organization and individual to achieve performance
From the same point of view, Ramlall (2003, p. 60) improvement (Wikipedia, 2012). Adam Smith states
supported that “given that several large-scale studies that the capacities of individual depended on their
have proven that Human Resource development is a access to education.
critical driver in an organization's financial
performance, it is imperative for Human Resource and It is the integrated use of training; organization and
other leaders to understand the critical nature and career develop effort to improve individual, group and
utmost importance of understanding the effectiveness organizational effectiveness. Human Resource
of all Human Resource activities in creating value for Development develops the key competencies that
the organization”. To a more thorough examination of enable individuals in organization to perform current
the problem, Christensen (1958, p. 34): managed to and future job through planned learning activities. It is
identify the five elements that are considered as most these organized activities arranged within an
crucial in the growth of organization as a result of the organization in order to improve performance and /or
employees’ productivity (as this improvement is perform general growth for the purpose of improving
expected to lead to the increase of the corporate the jobs, the individual/or the organization that will
growth). More specifically, Christensen (1958, p.34): enable an efficient growth of an organization and this
supported that there are five elements which are includes planning, development, careers development
extremely important for the effectiveness of human and organization development. According to Susan,
resource development within a particular (2012), Human Resource Development is a frame
organizational environment. These are work for helping employees develop their personal
• The technical organization of the group. and organization skills, knowledge and abilities.
• The social structure of the group. Training on the other hand is organizational efforts
• The individual task motivation, i.e., the willingness aimed at helping an employee to acquire basic skills
to work hard that each member brings to and required for the effective and efficient execution of the
maintains toward his job. functions for which he or she is hired. That is having
• The rewards he receives from doing the job, and focuses on technical skills, supervisory skills, and
• The satisfactions he obtains from being an relatively specific areas of accounting methods,
accepted member of the group. material management and planning techniques.
These pave the way for mental development of

employees through training and development policies

and programmes in order to make for better qualified Wang, (2006: p.52) noted that the fundamental source
employees. of competitive advantage in today’s organizations was
shifting from resources to knowledge and from
According to Singh & Mohanty (2012: p.87) relatively stable sources of technological and market
Organizations maintain a blurred position regarding advantage to the capacity to create such advantages.
investment in training. They generally accept training To this end, Mubarik, (2008), opines that, any
as an important means to improve employee organization that facilitates the learning of its
productivity, which ultimately leads to organizational members, constantly transforms itself and its context.
productivity and effectiveness. However, in practice, The learning model he stressed is bound to have
they usually face this challenge with cost control implications on future profitability, delivery of
including training practices expenditure. This situation services and role of people management and
can be explained by the fact that organizations do not development in (microfinance) institutions. Al-
understand how investments in training can provide Hawary and Sharma (2011) found that, despite
value. The relevance of Human Resource previous efforts to improve banking, very little had
Development is evident in the increasing number of been done in the area of human resource development.
organizations exploring Human Resources They stressed that to catch up with current technical
Development for help in developing the capacity to changes in global banking, there was need to step up
survive the challenges of globalization and Human Resource Development in banks sector
technological advancements. In that, respect because as they suggested Human Resource
Durkovic, (2009), observed that, nowadays, Development meant initiation, facilitation, awareness,
enterprises are turned to the intangible and invisible generation, coordination and follow-up of the banking
capital, named intellectual capital. She explained that, executives towards individual and organizational
productive tangible assets like raw materials, basic growth. This supports Bexley et al. (2012, p.9) who
assets, and even managerial knowledge are not seen bears that, “banks also need to work to develop human
any more as resources that create new and prosperous resources through rehabilitation and training in such a
enterprises. Instead, knowledge, innovation and way as to fit with the developmental process and the
cooperation are becoming the three basic elements of requirements of modern banking technology”.
the new infrastructure necessary to create prosperity in Therefore, the compulsion is to engage in a continuous
the new economy. The fact that employees may affect upgrading of the human resource to abate the
the use of their own potential, as well as that of other consequent obsoleteness arising from challenges of
resources, makes them the most important resource in technological and global advancements. The
gaining competitive advantage for the enterprise foregoing aligns with the expression of Syrian, (1997)
Durkovic, (2009). who said that employees need be endowed with the
capacity to move from one skill to another as each one
Bates (2011), purported that, global firms need becomes obsolete, and to develop the cognitive,
individuals capable of operating effectively in diverse analytical and inter-personal skills required to work in
cultural environments, using increasingly complex a modern organization and as the economy progresses
organizational structures and communication patterns from one level of development to another.
and managing change using multiple integrative
business strategies with an embedded international Dewa & Zakaria (2012:99) argued that, “the best way
perspective. Similarly, in developing countries, the to institute quality into an organization, particularly in
opening of internal markets, the adoption of new banks, is to train employees to perform better”. Their
competitive strategies to meet market challenges, and conclusion implied that, for banks operating on the
demands of supplying products to meet the quality Islamic banking system, training and developing staff
requirements of international firms are powerful for expertise in Islamic banking operation, products,
forces driving organizational change. These changes and sufficient knowledge of relevant aspects of shariah
have led to an expanded emphasis on Human Resource is an important prerequisite for their individual and
Development. collective development. Benjamin (2011) in another
study found correlation between Human Resource

Development practices and employee performance, association of recruitment and selection,

attitude and behaviour. Similarly, Ashok and compensation and rewards, with corporate
Umasankar (2012) revealed, among other things that performance, whereas, training and development
banks must realize on certain key factors such as showed a negative association with corporate
employee’s need fulfilment, promoting innovation, performance. They confirmed findings of previous
participation in decision making process, team studies on human resource management practices and
building, conflict resolution, and recognition as well corporate performance except for training and
as acquisition of employee skills and knowledge so development, which reported negative. This means
that banks can expect higher productivity among that, banks management did not invest enough money
employees. Some researcher argued that, “the skill on human resources through training and development
level, attitude and knowledge of the personnel play an programs, because they have applied cost reduction
important role in determining the competitiveness of a strategy in order to avoid threats posed by global crisis.
bank because capital and technology considered the Bartell, (2004) studied employee perceptions and an
most important pillars of banking are replicable, while econometric analysis of the responses to banks’
human capital is not; which needs to be viewed as a employee attitude survey that controls for unobserved
valuable resource for the achievement of competitive branch and manager characteristics shows a positive
advantage. Human resources according to him are to relationship between branch performance and
be treated indispensable because of the potential it has employees’ satisfaction, with the quality of
to activate the other factors of production of services performance evaluation, feedback and recognition at
in modern organizations”. This converges with the the branch, which are the incentives for a high-
perception of Sotunde & Salami, (2012) who found performance work system. The combination of the
that an average employee in commercial bank in branch visits and the econometric results support the
Nigeria hardly has time for personal developmental notion that branch-level performance in the banking
effort. They expressed the relevance of Human industry can be influenced by specific human resource
Resource Development through Adam Smith’s management-related actions. Al-Ghazawi (2012)
statement that, the capabilities of individuals depended found that staffing, training & development,
on their access to education. Human Resource incentives, and retention policy were the relevant
Development they asserted is the medium, which activities representing human resource investment.
drives the process between training and learning while While in another study, Ojo, (2011) discovered that
investment in employee learning they added is a way corporate performance is largely determined by
of creating a primary internal market and policies strategic human resource management practice.
aimed at progressively upgrading skills, which reduce Consequently, his results show a positive relationship
dependency on external skill sources. between strategic human resource practices and
corporate performance of organization. Based on the
Armenta (2007) recognizes banking as a knowledge- findings Ojo, (2011) suggested that, corporate
based service industry that has always required organizations in the Nigerian banking industry, should
specialized training but increasingly demands a more ensure that their human resource are adequately
sophisticated skill mix. To him, the expertise required compensated, rewarded and motivated to enhance
by the industry can be divided into academic training, their performance which will translate to improvement
and on-the-job skills. His study sustained the in corporate performance.
statement of McNaughton, (1997) that “Substantial
training is needed to support institutional development Drawing from the Resource-based view (RBV) De
and that scarce skills are huge impediment to banking Saa-Perez & Garcia-Falcon, (2002) stated that a firm
development. be evaluated according to its superior set of resources
that are dynamic and intangible, rather than according
Rawashdeh & Al-Adwan, (2012), targeted the to its product market. The argument focused on the
permanent workers of human resource departments in integration of human resources policies and practices
thirteen Jordanian commercial banks. Their results and found support in Alkalha et al., 2012), which was
reflected a positive and statistically significant conducted to measure the effect of planning,

recruitment & selection, training & development, job cultivation and training for being employees, living
analysis & design, motivation, performance appraisal, welfare and facilities). The human resources
and employee participation in decision making on information table mainly reflects non-monetary
organizational performance. information (Meng-ya, 2005).
• Reporting Human Resources Cost In the regulations of Chinese, the No. 30 China
Dominating views about existent reports on human Accounting Standards for Business Enterprise –
resources cost in the accounting field of Nigeria are on Financial Statements Report and the No. 31 China
the consideration of characteristics of intangible assets Accounting Standards for Business Enterprises – Cash
of human assets, the item of “human assets” could be Flow Statement, the item of human resources cost
inserted between “intangible assets” and “deferred hasn’t been established specially, there is only one
assets” in the balance sheet so as to reflect the net regulation on the disclosure of payable employees’
amount of human resources cost after being deducted compensation related with human resources cost in the
from the amortization. The human assets amortization supplemented information, which shall be disclosed
expenses could be added in “management expenses” by enterprises, and this is a requirement for
of enterprise profit and loss statement ((Yan-fen, information disclosure of enterprise liabilities.
2002).
In the above two opinions, item if “human assets” in
Report of human assets could be divided into internal the balance sheet is the long-term human assets
report and external report. The internal report includes actually; “human resources expenses” in the profit and
adjusted balance sheet, profit statement and cash flow loss statement or profit statement is regarded as long-
statement. In balance sheet, initial assets value, term human resources amortization by the first
amortization amount and net value will be displayed opinion, and human assets amortization and non-
respectively on one hand; situation of human resources capitalized human resources expenses by the second
will be disclosed in annotations from angles of static opinion, which contains a larger scope of expenses
and dynamic states on the other hand. The item of than the first opinion.
“Human resources” could be added in profit statement
in order to reflect enterprise incurred expenses which The author thinks the report of human resources
shall not be capitalized and amortization of human development cost as a component of human resources
assets for the purpose of using human resources. report as well as a part of financial statement. The
Meanwhile, relevant adjustment should be adapted to expenditures of human resources cost shall be
contents reflected by “Management expenses” and reflected in the three important statements: profit
other accounts. The reflection of cash flow incurred in statement and cash flow statement. Contents need to
investment activities of cash flow statement. In be included are cash flow of unconsumed human
addition, reports of human resources investment, flow resources cost, consumed human resources cost and
and benefit will be supplemented beside the financial expenditures of human resources cost. The “long-term
statements. Contents in reports are classified into non- human assets”, which is assed in intangible assets item
monetary information and monetary information in balance sheet, shall reflect long-term initial assets
(Yan-fen, 2002). value of human resources, amortization amount and
net value. The short-term unconsumed human
Report of human resources could be divided into resources cost (direct labour cost of products, labour
indicating table and information table of human cost of manufacturing expenses and unamortized cost
resources. The indicating table is used to reflect of short-term human assets) could be listed in items of
expenditures and revenue of human resources. inventories and expenses to be apportioned within one
Expenditure has two parts as capital expenditure and year in balance sheet. There are two choices to display
revenue expenditure. Revenue expenditure has impact consumed human resources cost in profit statement:
in one accounting period (such as wages and welfare 1) Listing direct labour cost of finished products,
expenses paid to employees), capital expenditure has labour cost in manufacturing expenses, selling of
impact in more than one accounting period (such as management expenses, wages of managers,

amortization amount of human resources and other According to the PTS approach, the two functions of
human resources cost (compensatory spending of measurement are:
dismission) in management expenses; 1) Process functions in the process of measurement,
2) Only list the human resources expense in and
management expenses. In the first method, 2) Numerical information from the numbers
expensed human resources cost information could themselves.
be obtained from profit statement directly without
adjustment. The second method does not make big Whereas one role of human resource accounting is to
amendment to existent profit statement. But due to provide numerical measures, an even more important
the deficient display of all expensed human role is the measurement process itself. The human
resources cost, the human resources expenses resource accounting measurement process as a dual
information is incomplete. The better way to function attempt to
reflect unconsumed human resources cost
(unconsumed human resources cost of long-term organization’s short and long-term productivity and
human assets and short-term assets, such as growth. When managers go through the process of
products human resources cost and human measuring human resources, they are more likely to
resources cost to be amortized) and consumed focus on the human side of the organization and are
(expensed) human resources cost concentrated is to likely to consider human resources as valuable
establish “Statement of Human Resources Costs”. organizational resources who should be managed as
The special established human resources cost such (Bullen, 2007).
statement could be the comprehensive attached
table of financial statements. For example, in a potential layoff decision, with use of
human resource accounting measures in addition to
In addition to external financial reporting, human only traditional accounting measures, management is
resource accounting may be useful as a managerial better likely to see the hidden costs to the company’s
tool to aid in making managerial decisions that will human resources and the long-term implications to the
benefit the long-run strategic goals and profitability of human assets. This is because human resource
the company. As opposed to external financial accounting, views human resources as assets or
reporting, managerial reporting does not require investments which must be maintained for long-run
adherence to a strict set GAAP in specific financial productivity (Bullen, 2007). Layoffs may affect future
statements in acceptable format reported to the public long-term profits from lost productivity, costs of
(Bullen, 2007). However even if human assets are not rehiring and retraining when business returns, and
reported on the face of external financial statements, costs of lower morale of existing workforce. If
human resource accounting can play a crucial role in management quantified the actual costs of layoffs,
internal managerial decision-making, and human management might be less inclined to use layoffs as a
resource accounting measures can be used to show that way to cut costs and boost short-term profit at the
investments in a company’s human resources may expense of long run productivity and profits (Bullen,
result in long-term profit for the company (Bullen, 2007).
2007).
Flamholtz, Bullen and Hua (2003) utilized the human
When mangers go through the process of human resource accounting measure of expected realization
resource accounting measurement treating human value, and found that employees’ participation in a
resources as capital assets, they are more likely to management development program increased the
make decisions that treat the company’s employees as value of the individuals to the firm. In addition, the
long-term investments of the company. Flamholtz authors noted that the human resource accounting
(1979) describes the human resource accounting measures provided upper-level management with an
paradigm in terms of the “Psycho-Technical Systems” alternative accounting system to measure the cost and
(PTS) approach to organizational measurement. of people to an organization. Thus, human resource
accounting represented either a paradigm or way of

viewing human resource decision, and the set of leading indicators that drive successful financial
measures for quantifying the effects of human measures, and that it is through skills-based budgeting
resource management strategies upon the cost and that the fallacy of financial focus can be avoided.
value of people as organizational resources.
Moore (2007) suggests that the value of human capital
Davidove and Schroeder (1992) indicate that too many should be more fully considered when making
business leaders have no generally accepted definition decisions about the acquisition and disposal of people
or accounting procedure for tracking training and notes that the accounting practices currently
investments, and not that a lower training investment employed by companies can have an undue influence
is not automatically better for an overall return on in driving the strategic decisions of these companies.
investment. The authors suggest that although many Moore notes that there are parallels between the
business leaders still view training as an overhead process of acquiring an employee (a human capital
expense, with thorough ROI evaluations training asset) and that of acquiring a fixed capital asset.
departments can convince business to view them as However, while most companies acknowledge the
partners in creating the assets crucial to organizational contributions of its employees, they do not think of the
success. acquisition or disposal of human capital assets in the
same way or with the same thoughtful planning or
Other authors have expressed similar views suggesting strategic thinking as they do fixed capital assets.
the benefits of human resource accounting
measurements and the process of measuring human 2.3 Theoretical Framework
resources. For example, Johanson and Mabon (1998) There are several different theories that explain the
indicate that expressing human resource interventions need of human resource development and the growth
in financial terms and/or cost benefit terms is more of an organization. But for the purpose of this
effective than using soft accounting information such research, the major theory on which the study is
as data on job satisfaction. Because the classical anchored on is the theory of Resource-Based View by
function of accounting is the determination of the Barney 1986. This theory state that competitive
value of the economic activity, performing analysis advantage and the growth of organization lies
with hard numbers such as cost-benefit analyses help primarily in the application of a bundle of valuable
us determine how resources should be used by human tangible or intangible human resources at the
resources for various interventions. Toulson and Dewe organization disposal (Mwailu & Mercer, 1983 p142,
(2004) conducted a survey study utilizing component Wernerfelt, 1984, p172; Rumelt, 1984, p557-558;
analysis and found two reasons why measuring human Penrose, 1959). To transform a short-run competitive
resources is important. The first is that measurement advantage into a sustained competitive advantage
reflects the strategic and competitive importance of requires that these human resources develops
human resources, and the second suggests that in earn heterogeneously in nature and not perfectly mobile
credibility, human resources must be expressed in (Peteraf,1993, p.105-106; Peteraf, 1993, p180) and
financial terms. McKenzie and Milling (2001) suggest this Effectively, translates into valuable resources that
that, if properly implemented, the human capital are neither perfectly imitable nor substitutable without
planning and budgeting process will become a key great effort (Barney, 1991;:Peteraf,1993,p117). If
driver of strategy in that strategic human capital these conditions hold, the bundle of resources can
planning and budgeting ensures that the best resources sustain the firm's above average returns leading to
are mobilized for each internal process. They indicate organizational growth.
that too often organizations focus 100% on meeting
the financial budget first without consideration of the The resource based view theory is suggesting that
effect the cost slashing will have on strategy, and note competitive advantage which is as result of effective
that the financial numbers are a lagging indicator of human resource and performance results are a
where a firm has been and should not be substituted consequence of firm-specific resources and
for leasing indicators of where the firm is going. capabilities that are costly to copy by other
Rather management should focus clearly on causal, competitors (Barney,1991; Wernerfelt, 1984, Rumelt

1987). These resources and capabilities can be light on the effects of managerial efficiency on the
important factors of sustainable competitive advantage performance of commercial banks. The findings of his
for organisation which develop its human resource and study however, raised serious concern about the
superior firm performance if they possess certain quality of human resource especially at managerial
special characteristics. level, and the need for concerted efforts to promote
staff development programmes as a logical first step in
The implication of this argument is that efficiency preparing for dynamic banking. CBN in collaboration
rents stemming from such resources and capabilities with NDIC and NISER (2000) studied the
could be categorized into two, interrelated dimensions performance profile of commercial banks in Nigeria in
(Spanos and Lioukas, 2001) as follows: relation to the quality of human resource. Banks
a) Pure rents (Collis, 1994) stemming directly from performance was proxied by profit before tax divided
the efficient implementation of the given strategy by Asset base ratio in the study. It was discovered that
currently pursued. This indicates that the more the performance of commercial banks is associated, to
unique combination of resources the organization a great extent with the educational qualifications of its
possesses in relation to rivals the higher is its human resources. The study also found that there is a
performance. high percentage of staff in the industry with low
b) Indirectly from enabling the firm to conceive and qualifications. An encouraging development however
develop its human resource strategy configuration. is that, the percentage is declining as increasing
This implies that the more human resources the number of staff who had no degrees are improving
better the ability of the organization for a strategy themselves, by acquiring more certificates. The study
that fits better market demand and results in higher recommended that, if staff with experience of 3 years
customers utility. or more could be complemented with those with
higher qualifications, performance will undoubtedly
This theory is appropriate and fitting for this study improve.
since the growth of any organizations is dependent on
the resources in the disposal of the organization, Yahaya (2007) on another hand adopted a quantitative
training of this resource which includes human measure published by the Institute of Intellectual
resource development becomes very essential for the Capital Research and approved by the Saratoga
growth of an organization. This reason, gives credence Institute database to assess human resource
to the use of this theory in this study. effectiveness in three randomly selected banks. Hence,
revenue factor, expense factor, income factor,
2.4 Empirical Review compensation revenue factor, compensation expense
Uchendu (1995) attempted to investigate the factor, and compensation factor were adopted to asses
performance of commercial banks in Nigeria using the human resource effectiveness while, human capital
ordinary least squares (OLS) single equation return on investment is proxy for return on investment
estimation technique. He used a time series data 1970 in human resource. The results identified the main
– 1993, and concludes that whether you use all banks training and development activities in the three
data, six banks data or three large banks data, the selected banks as orientation and on-the-job training,
dominant factors affecting banks performance are skills improvement training, utilization of the newly
banking structure, unit labour cost and interest rate. acquired skills, regular training and acquisition of job
The study is important as it assists the industry experiences in all areas of banking. It also found that,
managers in identifying the dominant variables to respondents were significantly different in the
target in order to improve their performance. assessment of training and development activities in
their banks based on length of service and job status.
Nyong (1996) Using simultaneous equation model Ebiringa & Okorafor (2010) using correlation analysis
studied the performance of commercial banks in tested some human capital development index (formal
Nigeria. He however, considers profitability as a education, on the job training, participation in
measure of banks performance in spite of the high seminars, conferences and trade fairs) on the Small
level of undercapitalization. His study sheds more Medium Enterprise performance index (quantity of

output, quality of output, revenue generated, profits) held a much favourable attitude towards the
and their results highlighted the critical value of on- development practices than that in JKB.
the-job training as the most significant Human Consequently, the satisfaction level of employees in
resource Development index that influences Small SBI is higher than that in JKB. Khan (2004)
Medium Enterprises performance. This implies that emphasized on the challenges posed by the
increasing on human resource development increases sophisticated consumer of tourist product which call
performance of an organization. Therefore, they noted for the development of human resources and expertise
that they is relationship between the development of in tour and travel business. He argued that the
human resources and the growth of organization. employees of tourism organizations are in constant
touch with the national and international tourist which
Considering yet other aspects of the relationship under requires the adequate education and training to deal
investigation, Marimuthu et al, (2009) examined the with them tactfully.
extent to which human capitals have direct impact on
firm performance from various critical perspectives Goyal (2004) concluded that human resources play an
using regression analysis. Their literature-based important role in development and growth of any
analysis deduced that human capital indicators organization and for that matter of any economy.
enhanced the firm performance directly or indirectly.
That firm performance can be viewed from two Srimannarayana (2008) also assessed the extent of
different perspectives; financial performance HRD climate prevailing in Indian organizations. He
(productivity, market share and profitability) and non- derived the conclusion that a moderate climate
financial performance (customer satisfaction, prevails in organizations understudy (59.61%) and
innovation, workflow improvement, and skills more favourable HRD climate was in manufacturing
development. Literatures they reviewed also showed sector (62.39%) than in service and IT sectors. Rao
existence of strong evidences to show that the infusion (2009) carried out a study on HRD climate in the
of human capital enhancement in organizations Thermal Power Station of Vijayawada in Andhra
promotes innovativeness. In light of their revelations Pradesh and stated that the HRD is a process which
they argued that, understanding firm performance in helps to develop and identify the keen potential of
relation to human capital should not be regarded as a human force. He further suggested that the
phenomenon that only “adds more zero’s” in a firm’s management in an organization should be generous
profits, it rather transforms the entire workforce as the and should also support their work force emotionally
most valuable assets in order for the organization to so that it will help the employees to work better and
pave way for greater achievement via innovativeness enable them to exhibit their knowledge and skills in a
and creativity. cohesive manner. Subramani and Akbar Jan (2011)
focused on the importance of the efficiency of human
Venkata Ratnam (1999) in a Note on Human Resource resource in the success of any organization in their
Development Climate, made a study based on the published research study. The authors emphasized
responses of 132 executives of a large PSU and their work over the study of organizational climate in
concluded that early identification of human resource IT industries of Chennai, they suggested improving
potential and development of their skill represent two the organizational climatic conditions to match the
major tasks of human resource development. This can requirements of the organizational development.
be achieved only when a conducive HRD climate
prevails. The study found the existence of favourable Khan and Tarab (2012) carried out a study to explore
HRD climate in the organization. Rohmetra (1998) the HRD Climate in the private sector telecom
studied HRD climate and satisfaction in State Bank of Industry of India and also to find out the relationship
India (SBI) and The Jammu and Kashmir Bank Ltd. between HRD Climate and Employee Development.
(JKB) and found that HRD climate was much higher The findings of the study exposed that there exists a
in SBI than in JKB. Comparative analysis of the positive relationship between the climate of the
attitudes of employees towards the prevailing organization and the development of employees. Javed
development climate revealed that employees in SBI et al. (2012) observed the relationship between three

HR Practices i.e., (Training and Development, study, Sample and sampling techniques, Instrument of
Rewards, Recognition) and the employee job data collection and method of data analysis
satisfaction in the public sector organizations of a
developing country, Pakistan. They traced the 3.1 Research Design
recognition, training and development as a key source A descriptive expo-facto research design was adopted
of employee job satisfaction in public sector for the study. Secondary data used was collected from
organizations of Pakistan but rewards do not have any Central bank statistical bulletin and the firm’s annual
significant impact upon employee job satisfaction. financial report. The design adopted was carefully
Sasirekha and Ashok (2013) analyzed the need for prepared to ensure that information obtained is
converting human resource into human asset is gaining relevant to the research. This design is appropriate in
mammoth importance in organizations in the present this study since it enable the collection of secondary
day competitive world. This conversion results in the data that gives a well detailed information on financial
growth of organizations and the country as well. This performance which is good criterion for measuring the
is possible only if the employees of an organization are growth of organization. Expo facto is also used
satisfied with their organization. That is, the HRD because the data already exist which cannot be
climate prevailing in the organization must be manipulated.
satisfactory to the employees.
3.2 Area of the study
• Research gap: The foregoing review of literature In order to effectively carry out the research, some
clearly brings into light that a number of studies selected Geo- political zones was used as area of study
have been put forward by several authors regarding as shown in sample table below.
the Human Resource Development practices at
different levels of management in organizations Sample Table A: Selected Areas Used for the Study
and to value the significance of human resource Area of State Name of Geo
among other resources of production. Human study organization political
Resource Development and general practices of Zone
Human Resource Development had been studied in Awka Anambra First bank South
Pharmaceutical Industry, Institutes, Public Private Nig plc East
Organizations, Hospitals, Garment Industry in Ikoyi Lagos Dangote South
different regions, areas around the globe but no sugar Nig West
study has been conducted in Nigeria Public and plc
private Sector quoted companies to show the effect Gboko Benue Dangote North
of human resource development on the growth of cement Nig Central
the organization. plc
Onitsha Anambra GTB Bank south
This provides at the disposal of the Researchers to Nig plc East
assess the research gap for the present construct. Due Nine Mill Enugu 7up bottling South
to this reason, the present study has been designed to company East
look forward towards the effect of human resource plc
development on the growth of organization on the
basis of its role and contribution in the growth and 3.3 Population of the study
development of quoted companies in Nigeria. The population of the study is made up of 214 quoted
companies listed in Nigeria stock exchange.
III. RESEARCH METHODOLOGY
3.4 Sample and Sampling Techniques
The aspect of the research procedures adopted and With respect to the sample data, 5 companies from the
used are discussed in the course of the research are listed firms in the Nigerian Stock Exchange were
research Design, Area of study, Population of the selected purposively. Companies listed on the

Nigerian Stock Exchange were selected because of IV. DATA PRESENTATION AND ANALYSIS
easier access to their annual reports as compared to the
non-listed companies. This chapter present the data and analytical result of
the data collected from the field each of the selected
Sample Table B: List of Registered Quoted quoted company used.
Companies Used
Data Collected in Respect of the Research Question 1-
Name of Quoted Company 4, Analyzed and Presented in Table 1.
• First Bank Nig Plc
• Dangote Sugar Nig Plc Table 1. Ten Years ETC, SCA, ISTC And NA profit
• Dangote Cement Nig Plc of 7up Nig Bottling company
• 7 up bottling Company Plc S/N YEAR ETC SCA ISTC NA
• Gtb Bank Plc 1 2005 7.3596 7.0818 2.0211 21.452
2 2006 7.0479 7.3289 3.3210 23.4561
The five companies used which was randomly selected 3 2007 4.0227 6.9956 5.9150 20.7641
was used since the company is fully registered 4 2008 3.9886 7.0754 3.0741 26.8721
company in Nigeria stoke exchange and for the fact 5 2009 4.0444 6.0861 4.8610 28.9853
that the companies financial data is available and easy 6 2010 6.0672 6.8837 4.8625 30.2130
to get. 7 2011 5.6452 6.6717 6.6122 30.4598
8 2012 5.8657 6.6558 5.2518 31.2341
3.5 Method of Data Analysis 9 2013 6.0313 6.6838 6.1828 33.8943
Data collected was presented in table and analysis 10 2014 5.7744 6.0052 4.0012 34.9881
using Regression analysis with the use of Minitab Source: Nigeria stock exchange and CNB Statistical
version 17. Basic statics mean score method was used Bulletin 2015:
to give answer to the research questions. Analytical
result of the test was compared to 0.05% level of ROA = x0 +ETC *x1 +SCA* x2+ ISTC* x3+ NA*x 4E
significance to ascertain if the test is significant at ROA = 1973 + 2.371 ETC + 5.28 SCA+2.3 ISTC+
0.05% or not. 5.67NA+E
Aprori expectation x1>0 x2>0> x3>0> x4>0
• Regression Model specification
Regression model specification that was adopted by Table 1.1 Regression result of Secondary Data
the researcher is as follows. collected from 7up Nigeria bottling company
ROA = f (ETC+SCA+ISTC+NA +) --------------------- Varia Durb Coeffi R- F- T P
------------------------------------------1 ble in- cient sq(a Ca
This model can be expressed as follows. Wats dj) l
ROA = x0 +ETC *x1 +SCA* x2+ ISTC* x3+ NA*x 4E.- on
--------------------------------------2 statis
ROA = Return on asset as a measure of organizational tics
growth. Const 1.33 1972.9 0.70 3. 155. 0.0
ETC = Employee training cost ant 2 65 86 33
SCA = Staff Conference attendance cost ETC 0.6776 -
IST = In-service training cost 0.54
NA= net asset SCA 0.6776 2.69
x0 = constant. ISTC 0.6210 3.53
E = Error term. NA 0.6721 2.10
In answer to question posed in research question one,

regression result shown in table 1.1 indicates that

Employee training cost account for 67% effect and ROA = 2099 +4.74 ETC+ 9.62 SCA+ 1.2 ISTC+
contribute to 70% growth in 7up bottling company 2.40NA+E
over the period studied as indicated by the coefficient Aprori expectation x1>0 x2>0> x3>0> x4>0
and R-sq(adj) value respectively in table 1.1. This
implies Employee training cost affects the growth of Table 2.1 Regression result of Secondary Data
organization to a high extent. On the other hand, F-cal collected from First Bank Nigeria Plc
value of 3.65 proved that the overall model
specification is statistically significant at 0.05% level Varia Durbi Coeffic R- F- T P
of significance. This means that all the explanatory ble n- ient sq(a Ca
variable simultaneously explains the variation in the Wats dj) l
growth of the company due to the effort of human on
resource development. The result also shows that there statist
is a link age between human resource development ics
and the growth of a firm. As human resource Const 0.72 2098.9 69% 2. 33. 0.0
development is being increased, performance of a firm ant 6 67 22 01
is increased hence, leading to organizational growth. ETC 0.71 1.8
Therefore, human resource development is significant 5
in an organization. This address question posed in SCA 0.61 0.9
research question 2 and 3. 8
ISTC 0.521 0.2
In responses to question posed in research question 4 31
result in table 1.1 indicates that human resource NA 0.672 0.3
development in very essential in organization the 41
growth of organization and when properly managed,
the growth of a firm is ensured for an effective In responses to research question one and two posed,
performance. result in table 2.2 indicates that Employee training cost
has 71% effect on the return on asset (ROA) and staff
Data Collected in Respect of the Research Question 1- conference attendance has 61% effect on Company
4, Analyzed and Presented in Table 2 ROA of first bank Nig plc. On the other hand, the firm
experienced 69% growth as indicated by R-sq(adj)
Table 2: Ten Years ETC, SCA, ISTC And NA Data value. The result also shows that human resource
of First Bank Nigeria Plc Nig Plc development has high extent contribution to the
S/N YEAR ETC SCA ISTC NA growth of the firm. This means that the more efficient
1 2005 5.2725 6.5346 3.2725 4.5631 human resource the more the growth of an
2 2006 6.2259 6.5060 4.2155 4.8931 organization as indicated in the values of variables
3 2007 6.4583 6.6321 4.4583 5.3450 measured. This result addresses question one and two
posed. In respect to research question 3, result shows
4 2008 6.2528 6.4592 5.2718 6.7210
that the more positive effect of human resources as
5 2009 6.2786 6.3932 5.9860 6.7210
indicated by the coefficient values the more the
6 2010 6.2987 6.5419 4.9871 5.7561 positive link between the growth of an organization.
7 2011 6.2951 6.4746 5.2951 7.2310 Human resources are also very important in an
8 2012 6.3943 6.5997 4.3943 7.2310 organization. Result presented in table 2.1 shows that
9 2013 6.3763 6.6908 5.3160 8.1242 human resource has a high extent of impact on the
10 2014 6.4158 6.6002 6.1128 9.2102 growth of organization as shown in 71% value and
61% value of ‘ETC’ and ‘SCA’ coefficient values
Source: Nigeria stock exchange and CNB statistical
respectively. This result answers the question posed in
Bulletin 2015:
research question 4. Durbin-Watson statistical value 0f
0.72 in an indication that the model is free from the
ROA = x0 +ETC *x1 +SCA* x2+ ISTC* x3+ NA*x 4E

problem of serial correlation at P<0.05 are highly Responding to research question posed in one to five,
significant and that the model estimated can be result obtained from the analysis of data gotten from
confidently relied upon for making inferences. Dangote cement Nig Plc, shows that Employees
Training Cost affects the return on asset (ROA) of the
Data Collected in Respect of the Research Question 1- firm to 91% level and 69% effect is accounted for by
4, Analyzed and Presented in Table 3 staff conference attendance. This implies that human
resource development has to a high extent a positive
Table 3: Ten Years ETC, SCA, ISTC and NA data of effect on a firm level of growth.
Dangote Cement Nig Plc
S/N YEAR ETC SCA ISTC NA The result also indicate that human resource
1 2005 5.1022 5.5060 3.1000 18.4010 development has 80% significance in relation to the
growth of the organization as indicate by R-sq(adj).
2 2006 5.0664 5.3629 4.1321 18.2015
this means that there is a high extent of relationship in
3 2007 4.8799 5.2877 4.1477 19.2341
human resource development which enhances the
4 2008 5.0310 5.3171 5.3171 19.2171 growth of organization.
5 2009 4.8452 5.2440 4.2110 21.2410
6 2010 5.7798 5.3171 4.2071 20.3241 It was also noted in the result that there is a high link
7 2011 7.6999 5.2440 5.1420 23.5317 between human resource training and growth of the
firm. The result indicates that the training of given to
8 2012 4.4541 5.2661 4.2161 21.2349
human resource in the firm led to high performance in
9 2013 4.4304 5.1159 2.1051 22.1234 the firm which enabled the firm achieve an 80%
10 2014 3.8969 4.8993 5.8993 22.1231 growth over period of ten years being studied.
Bulletin 2015: Further, it was obtained in from the results that to a
high extent, human resource development is very
Y = x0 +ETC *x1 +SCA* x2+ ISTC* x3+ NA*x 4E important in the growth of a firm as seen from the
ROA = 2017 +2.09ETC+ 3.70 SCA+4.76 ISTC+ increased effect on ROA value of the firm. Hence, it
3.90NA+E becomes evident from the result that effective
Aprori expectation x1>0 x2>0> x3>0> x4>0 management of human resources in an organization is
crucial for the growth of the organization. This results
Table 3.1 Regression Result of Secondary Data respectively answers the questions posed in research
collected from Dangote Cement Nig Plc questions 1-4. The value of F-cal (1.75) is a clear
indication that the stipulated model specification is
Varia Durb Coeffi R- F- T P significant at 005% level and that the variable are
ble in- cient sq(a Ca explains the variation in the effect of human resource
Wats dj) l development on the growth of an organization. Durbin
on –Watson value of 0.89 is evidence that the model if
statis free from the problem of serial correlation error.
tics Hence the model estimated can be confidently relied
Const 0.89 2017 80% 1. 172. 0.0 upon for making inferences.
ant 75 44 02
ETC 0.91 1.72 Data Collected in Respect of the Research Question 1-
SCA 0.697 1.61 4, Analyzed and Presented in Table 4
ISTC 0.710 2.56
NA 0.581 3. Table 4. Ten Years ETC, SCA, ISTC and NA Data
45 of Guarantee Trust Bank Plc.
S/N Year ETC SCA ISTC NA
1 2005 5.2552 5.5789 2.1340 5.6123

2 2006 6.1647 6.4068 2.1452 5.8634 answers the question posed in research question 1. In
3 2007 6.3440 6.5649 3.6456 3.8950 responses to research h question 2, result also indicates
4 2008 6.1952 5.4052 2.5310 3.9843 that human resource development have 57%
significant relationship to the growth of the
5 2009 6.3949 6.6355 4.2130 5.4211
organization as indicated by R-sq(adj) value in table
6 2010 6.3555 6.5338 3.4510 4.5672
4.1. In respect to research question 3, result depicted
7 2011 6.2249 6.3812 4.5610 6.3130 in table 4.1 evidently proves that there is a positive link
8 2012 5.2654 6.4746 3.2100 5.2340 between human resources development and
9 2013 3.3913 5.5414 3.7230 4.2350 organizational growth. This in is evident in 74% and
10 2014 6.3154 6.6831 2.3100 4.2310 61% increase in the growth of the firm which was
Source: Nigeria stock exchange and CNB statistical achieved as result of human resource development in
Bulletin 2015: the firm. This means that the higher the training given
to human resources of a firm, the higher the growth in
ROA= x0 +ETC *x1 +SCA* x2+ ISTC* x3+ NA*x 4E the firm.
ROA = 2099 +4.74 ETC+ 9.62 SCA+ 9.0
ISTC+23.67NA+E In view of research question 4, result shows that
Aprori expectation x1>0 x2>0> x3>0> x4>0 human resource development is very important in a
firm, table 4.1 indicates that 57% growth noted in the
Table 4.1 Regression Result of Secondary Data firm was due to human resource development of the
collected From Guarantee Trust Bank Nig Plc firm. This means that for an organization to grow
human resource development is a key factor.
Varia Durbi Coeffic R- F- T P Furthermore, in addressing question posed in research
ble n- ient sq(a Ca question 5, result indicates that that 57% growth
Wats dj) l observed in the firm was due to the management of
on human resource in the firm. This implies that when a
statist firm effectively manage their human resources, the
ics organization will grow.
Const 0.72 2098 57% 2. 33. 0.0
ant 67 22 12 F-cal value (2.67) is a noted in table 4.1 is evidence
ETC 0.74 1.8 that the model specification is significant ant 0.05%
5 and that the variables simultaneously explain the effect
SCA 0.61 0.9 of human resource development in the growth of an
5 organization. On the other hand, Durbin –Watson
ISTC 0.52 0.3 statistics value of 0.72 is a prove that the model is free
4 from correlation error and the model is can be
confidently relied upon for making inferences.
NA 0.63 2.
45
Data Collected in Respect of the Research Question 1-
4, Analyzed and Presented in Table 5
Result obtained from the analysis of data gotten from
Guarantee trust Bank Nig Plc in respect to research
Table 5: Ten Years ETC, SCA, ISTC and NA of
questions posed indicates that human resource
Dangote sugars Plc.
development affects the growth of the firm to a very
high extent. From table 4.1, Result shows that
S/ Year ETC SCA ISTC NA
Employees training cost account for 74% effect in
N
ROA and staff conference attendance account for
61% effect on ROA also. This implies that human 1 2005 5.891 6.852 1.232 3.281
resource development affects the growth of the 4 0 3 2
organization to a high extent. This result clearly

2 2006 5.691 7.052 1.421 2.467 training cost and staff conference attendance affects
7 4 0 1 organization growth as shown in 67% and 50% effect
3 2007 5.780 7.120 2.452 5.112 on ROA. This result addresses the question posed in
0 1 1 3 research question 1. In respect to research question 2,
4 2008 5.587 7.339 2.567 5.263 result in table 5.1 also indicates that human resource
9 9 8 4 development is significant in the growth of the
5 2009 4.413 7.332 3.245 3.815 organization as noted in 83% growth experienced by
1 0 1 0 the firm over the period examined. On the other hand,
6 2010 4.359 7.313 3.562 3.243 in addressing question 3, result shows that there is a
6 4 0 0 link between human resource development and the
7 2011 4.319 7.340 2.763 5.221 growth of the organization. This is evident 83%
9 1 1 1 growth observed in the firm. This implies that the
8 2012 4.290 6.316 4.623 4.267 growth of the firm was due to the effort of human
5 0 4 2 resources training which in turn led to an increase in
9 2013 4.187 7.292 3.351 6.313 ROA of the firm. Responding to research question 4,
5 3 0 0 result shows that human resource development is very
10 2014 4.010 6.187 2.541 5.132 important for organizational growth. This is evident in
6 8 0 0 the positive effect of human resource development on
11 TOTA 48.53 70.14 2.341 4.245 the increase of in ROA (67%).
L 2 6 0 0
The results also indicates that when a firm human
resource is properly managed it leads to effective
Bulletin 2015:
performance and growth in the organization. This is
evident in the 83% growth observed in the firm over
ROA = x0 +ETC *x1 +SCA* x2+ ISTC* x3+ NA*x 4E
the period being examined. F-Cal result of 24.12 is
ROA = 1982 +3.47ETC+
evidence that the model specification is significant at
1.14SCA+34.2ISTC+1.2NA+E
0.05% and at the same time the variable effectively
Aprori expectation x1>0 x2>0> x3>0> x4>0
explains the effect of human resource development in
an organization. Durbin Watson statistical value of 1.6
Table 5.1 Regression Result of Secondary Data
also proved that the model is free from auto correlation
collected From Dangote Sugar Nig Plc
error that the model can confidently be relied upon for
making inferences.
Varia Durb Coeffi R- F- T P
ble in- cient sq(a Cal
• Hypotheses Testing
Wats dj)
on
Hypothesis 1: Employee training cost has no
statis
significant effect on organizational growth.
tics
Cons 1.6 1981.6 83 24. 295. 0.0
From table 1.1, calculated P-value (P =0.033) is less
tant 3 % 12 28 01
than the 0.05% level. This is to say the result obtained
ETC 0.67 6.43
are all significant at P<0.05 of significant. Hence, null
SCA 0.50 1.19
hypothesis stated in research hypothesis 1-4 is
ISTC 0.53 2.4
rejected.
1
NA 0.63 3.2
Hypothesis 2: Staff conference does not significantly
1
affect the growth of organization
Result obtained from Dangote sugar in respect to Calculate P-value shown in table 2.1 is less that 0.05
research questions posed indicated that Employees
% (P<0.05). Therefore, at this level, null hypothesis

posed in research hypothesis 1-4 are rejected in favour developed it will have a positive impact on
of the alternative hypothesis. organizational growth.
Hypothesis 3: Human in-service training cost has no Evidently, from the study there is a link age between
significant relationship on growth of an organization. human resource development and the growth of a firm.
The calculated P-value(P>0.05) is less than 0.05%. As human resource development is being increased,
Therefore, null hypotheses which were posed to test performance of a firm is increased hence, leading to
the result is rejected while the alternative hypothesis is organizational growth. Therefore, human resource
accepted. development is significant in an organization. The
finding also shows that human resource training is
Hypothesis 4: There is no significant effect of human vital in any given organization in order to enhance the
resource development on company net assets in performance of the organization which will lead to
relation to organizational growth. growth.
From table 4.1, calculate P- value (P<0.05%) is less This finding agrees to what Adam smith stated in
than 0.05%. hence, null hypothesis posed are rejected. Wikipedia 2012. According to Adam smith in
Wikipedia 2012, the capacity of individual in
V. SUMMARY OF FINDINGS, CONCLUSION organizations depends on the training obtained
AND RECOMMENDATION through the access to education and such training
improve the performance of individual and that of the
5.1 Summary of Findings organization hence, improving the organizational
The finding of the study shows that human resource growth. He further, observed that training human
development contributes to greatly to the growth of a resource in organization in order to enhance
firm. From the evidence gathered from 7up Nigeria organizational productivity will lead to growth. The
bottling company plc human resource development finding also agrees to what Harbison (1993) stated as
contributed to 70% growth of the firm. Evidence from noted in the literature of this research. For Harbison
guarantee trust bank also shows that human resource (1993), Human resources are not capital, neither
development have 57% contribution to the growth of income nor material resources that constitutes the
the firm and has positive effect on the organization. ultimate basis for wealth of a nation but, are active
This implies that human resource development have a agents who accumulates wealth, exploit material
substantial impact on the growth of any organization. resources, build Scio-economic and political
Evidence from Dangote cement and Dangote sugars organisation and carry out national development.
shows that human resource development has Therefore, he concluded that a skilled human resource
contributed 80% and 83% growth respectively in the obtained through human development (done through
firms. This implies that there is a linkage between the training) is a pre-requisite for overall economic growth
human resource development and growth of any firm. of organization and national Development. Hence, in
Findings gathered from first bank Nigeria plc also totality it implies that for development and growth to
indicates that the firm experienced 69% growth due to occur in any organization, there is need for human
the human resource development. This means that resources training.
without the effort of developed human resource,
organizational growth cannot be effectively achieved. CONCLUSION
This result agrees to what Ramlall (2003) said.
According to him, human resource development is a Human resource development is an avenue of
critical driver in an organization’s financial improving organizational growth and the level of
performance and the effectiveness of human resource productivity can have a significant positive impact on
will create value in organization which will lead to the growth of any organisation. Without the
organizational growth. This findings also agrees to development of human resources which explore
what Todd Barol(2012) observed. He noted that when resources, add value to an organization thereby
human resource development is well planned and increasing organizational level of growth, the aims and

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© AUG 2021 | IRE Journals | Volume 5 Issue 2 | ISSN: 2456-8880

Effect Of Human Resource Development on The Growth

I. INTRODUCTION The concept of human resource development in the

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organization to invest on human resource. The study 1.9 Definition of Terms

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These pave the way for mental development of

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Development practices and employee performance, association of recruitment and selection,

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In answer to question posed in research question one,

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[82] Richard (2009): Measuring Organizational Human Resource Development: Perspectives,

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[105] Wang, P.(2006). Human resource management

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