Effect of Human Capital Development on Organizational Performance
CHAPTER ONE
Aim and Objectives of the Study
The aim of this study is the examination the effect of human capital development on organizational performance while the specific objectives are:
- examine the significant relationship existing between workers’ training and improved workers’ performance.
- Evaluate the significant relationship existing between managements’ development and employees’ motivation.
- Determine the significant relationship existing between matching workers’ abilities with job requirements and workers’ efficiency.
- Examine the significant relationship existing between increased workers’ intelligence and excellent workers’ service delivery.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
Mentions “human capital as human resources. He also said that human capital is of two dimensions; first it is the financial, physical capital which he said to be the tangible assets. The second is the knowledgeable capital which he called the intangible assets. He went on to say that managing people is same as managing other physical assets”. He supposes that organizations generate worth through the intangible assets or the intelligence in the employee. He also noted that human capital is the stash of knowledge, habits, social and personality attributes which consist of the creativities encircled in the capability to perform labor so as to produce more economic products or values. Human capital development according to is said to be “about training and the development of these potential capabilities of the human capital or the people”. They discoursed that human capital development is very crucial in order to have the maximum utilization of the manpower for the benefit and advantage of both the employees and the organization. Human resource development or human capitals changes the human capital inputs into outputs. They said that “the inputs are the people, the individuals, and the groups in the society or organizations. The transformation procedure or the development processes are the managerial subsystems of acquiring, developing, allocating, conserving, utilizing, improving and motivating the people or the employees”. They also viewed that “human resource development is done through education, training and development to improve the intellectual, skills and the attitudes of individuals and groups in an organization”. It also consists of factors like personal dignity and status, team work and group dynamics gives their own opinions that employee performance as equal to job and income security, workplace health and safety. At this particular stage it is the measurement of the result of the training. Employee performance according to a system is consisting of three main elements organized in a linear sequence: Inputs, which include employee knowledge, skills and competencies, as well as other tangible and intangible resources. The study evaluates that the employee provides work inputs in the form of knowledge, skills, abilities and attitudes. are of the opinion that “employee performance is capability based, rather than personality based. Organizations are however encouraged to identify the state of development of their present performance management practices”. To map out their aspirations for changing this procedure of managing employee performance and also to think about the problems they face along the way. From the studies so far, it is noteworthy for organizations to optimize employee performance. The organization according to should be organized to do this. “The organization needs to be responsive to the business context and the methods of attending to customers and their expectations. The organization should strike a balance between the characteristics needs of business they are in and what helps flourish the core traits of the employees to give customers’ needs best”. This study went further to analyze this in the context of: Technology starts up, i.e. high pointing changes and that employees are expected to have different skills and highly responsive.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain effect of human capital development on organizational performance. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing effect of human capital development on organizational performance
Summary
This study was on effect of human capital development on organizational performance. Four objectives were raised which included: examine the significant relationship existing between workers’ training and improved workers’ performance, evaluate the significant relationship existing between managements’ development and employees’ motivation, determine the significant relationship existing between matching workers’ abilities with job requirements and workers’ efficiency and examine the significant relationship existing between increased workers’ intelligence and excellent workers’ service delivery. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from sterling bank in Lagos state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
The need for human capital development for sustainability and growth rises essentially from the detail that there are continuous changes in the business settings. The contenders of these changes makes it imperative for human capital to be continuously trained and retrained in order to meet up with such difficulties. This is the only way banks can safeguard sustainability and growth in their competitive marketing environment. Efficient human capital development ensures improved organizational performance through heightened productivity, efficient provision of services, effective customer relations management, improved competitiveness and acquiring skills in ICT. Thus, efficient human capital development enhances productivity to a great extent and impacts single handedly on sustainability and growth of the organization.
Recommendation
The Human resource managers should ensure that proper diagnosis, determination and assessment of human capital needs in the organization. This will guarantee that the right number and categories of staff are selected for the training and development programs.
There should be constant research on developments in the organizational environment that requires training and upgrading and improving the skills of employees. Thus will allow the right training and development programs to be mapped out and implemented so as to keep the employees abreast with the developments.
The whole programs should be carefully and thoroughly designed. This includes making sure that the syllabus contains what is required of the employees to know, to have competent trainers, adequate and necessary training facilities and regularity of the programs.
References
- J Choudhury, Mr. S. C. Nayak (2011) “An Empirical Investigation of Impact of Acquisitions HR Configuration on Human Capital Development”. Global Journal of Management And Business Research Volume 11 Issue 2. InternationalResearch Journal Publisher: Global Journals Inc. (USA
- Armstrong, M. (2006). “Strategic Human Resource Management: A Handbook of Human Resource Management Practice”, 10th ed. London: Kogan Page.
- Qureshi M. T. and Ramay I. M. (2006). “Impact of Human Resource Management Practices on Organizational Performance in Pakistan”, Muhammad Ali Jinnah University, Islamabad.
- Tang, T.L., Chiu, R.K., and Luk, V.W. (2002). “Retaining and Motivating Employees: Compensation Preferences in Hong Kong and China”. Personal Review, 31(4), 402-431.
- Elizabeth Boye, Kuranchie-Mensah1, Kwesi Amponsah-Tawiah (2013) “Employee Motivation and Work Performance: A Comparative Study of Mining Companies in Ghana” Journal of Industrial Engineering and Management, JIEM, 2016 – 9(2): 255-309
- Hilson, G., & Banchirigah, S. M. (2009). “Are alternative livelihood projects alleviating poverty in mining communities? Experiences from Ghana”. Journal of Development Studies, 45, 172– 196
- Ighodaro, E (2005) “Human Capital Development”. Benin City: Ethiope Publishers
- Adewale, A (2005) Managing Human organizations. Ibadan: spectrum 73 (JulyAugust), pp.118-128.
- Garavan, T. N., Morley, M., Gunnigle, P. and Collins, E. (2001). “Human capital accumulation: The role of human resource development”. Journal of European Industrial Training, 25 (2-4), pp. 48-68.
- Nordhaug, O. (1993). “Human capital in organizations”: Competency, training and learning. Oslo: Scandinavian University Press.
- Schultz, T. W. (1961) “Investment in Human Capital”. The AmericanFatoki, O.O (2011). The Impact of Human, Social and Financial Capital on the Performance of Small and MediumSized Enterprises (SMES) In South Africa.Journal of Social Sciences, Vol. 29(3); pp. 193-204.
- Frese, M., Kring, W., Soose, A., & Zempel J. (1996). Personal initiative at work: Differences between East and West Germany. Academy of Management Journal Vol. 39, pp. 37–63. xviii.
- Garavan, T. N., Morley, M., Gunnigle, P., & Collins, E. (2001). Human Capital Accumulation: The role of human resource development. Journal of European Industrial Training. 25(2/3/4), 48-68. xix.
- Griffin, R. W (2002) Management, 7th Edition, USA, Houghton Mifflin Company xx.
- Grossman, R. J. (2000). Measuring up: Appropriate metrics help HR prove its worth. HR Magazine. Vol. 45(1), 28– 35. xxi.
- Harrison, R. (2005). Learning and Development. CIPD Publishing. xxii. Hsu, I. C., Lin, C.Y.Y., Lawler, J.J., & Wu, S.H. (2007). Toward a model of organizational human capital development: Preliminary evidence from Taiwan. Asia Pacific Business Review, 13(2), 251-275. xxiii.
