Human Capital Development and Organizational Performance
CHAPTER ONE
General Objective
The general objective of the study is to investigate on the impact of human capital development on employees’ performance in Nigeria.
Specific Objectives
The study sought to attain three specific objectives, as follows:
- To assess the relationship between human capital developments and employees performance
- To determine the impact of academic level, work experience, and gender ratios on the performance
- To examine the relationship between educational development and employees performance
CHAPTER TWO
LITERATURE REVIEW
Introduction
This Chapter revisits what different some authors and researchers have documented about the aspects of organization performance and human capital. The Chapter begins with conceptualization of human capital, its origin and importance. The Chapter also discuss theoretical and conceptual issues. Then, it delves on the empirical studies relevant for the topic under the study.
The Concept of Human Capital
Human capital is the stock of knowledge, habits, social and personality attributes, including creativity, embodied in the ability to perform labour so as to produce economic value. Alternatively, Human capital is a collection of resources—all the knowledge, talents, skills, abilities, experience, intelligence, training, judgment, and wisdom possessed individually and collectively by individuals in a population. These resources are the total capacity of the people that represents a form of wealth which can be directed to accomplish the goals of the nation or state.
Adam Smith (1973) defined human capital as the acquired and useful abilities of all the inhabitants or members of the society. The acquisition of such talents, by the maintenance of the acquirer during his education, study, or apprenticeship, always costs a real expense, which is a capital fixed and realized, as it were, in his person. Those talents, as they make a part of his fortune, so do them likewise that of the society to which he belongs.
Therefore, Smith argued, the productive power of labour is both dependent on the division of labour: The greatest improvement in the productive powers of labour, and the greater part of the skill, dexterity, and judgement with which it is anywhere directed, or applied, seem to have been the effects of the division of labour. There is a complex relationship between the division of labour and human capital.
Chen and Lin (2005) defined investment in human capital as input made by company in talents and technology that benefit competitive advantages, are valuables and unique and should be kept out of reach of other countries. In other world employees possessing these qualities are qualified as human capital.
CHAPTER THREE
RESEACH METHODOLOGY
Introduction
In chapter two, the literatures relevant for the study problems have been reviewed. This chapter describes the research design, research population and area, sampling design and techniques, data collection tools and analysis.
CHAPTER FOUR
DATA ANALYSIS AND PRESENTATION
Introduction
This chapter presents the findings from field study on the impact of human capital and employees’ performance at Sterling bank at Ikeja in Lagos.
CHAPTER FIVE
CONCLUSION AND RECOMENDATIONS
Introduction
This provides conclusions and recommendations for action and for further studies.
Summary of the Study
This study investigated on the impact of human capital on the performance of organizations, using a case study of Sterling Bank Ikeja Branch in Lagos. The literature review indicated that there was scanty empirical knowledge on the two conceptual issues of this study, namely: the variables of human capital development vis a vis the performance of organization. On that basis, this study was intended to contribute towards widening an understanding of these concepts. Context analysis was used as method of data analysis. A total of 43 respondents were involved in the study. These respondents were obtained from the said bank using simple probability and random sampling techniques.
Summary of the Major Findings
The study revealed that that 44% of the respondents who were interviewed strongly agree that workers training enhance profitability of an organization, 24% agreed while 2% of the respondents said they were not sure. The study also shows that 45% out of the total sampled size of 43 respondents strongly agreed that organizational training increases production and stability, 25% agree and 3% said they were not sure.
Conclusion
The research objective was to investigate the impact of human capital development toward performance of employees in Nigeria. The first study examine relationship of human capital development and employees performance, second was to determine the impact of work experience, academic level and gender ratios if have impact toward performance and third objective was to examine relationship between educational development and employees performance.
The study findings show that direct relationship between level of investment in human capital and performance. The higher the level of investment in human capital the higher the performance. The study findings based on the second specific objectives shows that academic levels of education and work experience have an impact toward performance. The higher the level of education and work experience the higher the performance. The existence of well experienced staff with high level of education makes these staff more effective which increases customer satisfaction, trust and performance as well. The study also shows that gender ratios has no any impact toward performance of banks however some researcher recognise the impact of having female executives in executives team toward increase in performance.
The study also shows the contribution of educational development toward performance. By providing staff with enough trainings and chance for carrier development by allowing them to precede with various level of education this will improves skill of the staff which will improve their performance as well as performance of the bank.
Recommendations
for Action and Policy Improvement
In light of the conclusions of this study, the following recommendations are made.
It has been found that employees training and investing in human capita contribute towards making them work effectively and make their work appreciated by customers. It is therefore recommended that banks and other financial institutions have to heavily invest on career advancement. In particular, STERLING BANK need to invest staff professional development. Career advancement of the workforces is one of the best investments since the human resource potential has long term benefits. STERLING BANK should focus on fair human investment for the better and bank growth. This will lead to have creative and innovative staffs. The bank should avoid hiring new employees while disregarding the current employees. Equally important, the STERLING BANK should focus more on equitable and transparent human investments policies. These policies should not segregate workers along gender, title, education level, nationality or other forms of discrimination.
Suggestions for Further Studies
The findings obtained from this study cannot be replicated to reflect the situation of all banks in Nigeria. That being the case, there is a need of conducting further studies covering a larger sample in order to understand the impact of human capital on employee’s performance in Nigeria.
REFERENCE
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