EFFECT OF HUMAN CAPITAL DEVELOPMENT ON ORGANIZATIONAL PERFORMANCE
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EFFECT OF HUMAN CAPITAL DEVELOPMENT ON ORGANIZATIONAL PERFORMANCE
Section I
OVERVIEW
1.1 THE STUDY’S HISTORY
The Nigerian Civil Services Commission has called for raising public sector productivity to levels comparable with the private sector. Michie & Oughton (2003) state that research indicates that more investment in R&D, capital and human resources, enhanced education and training, and a modernised productive infrastructure will be necessary to close the productivity gap between the public and private sectors.
Michie & Oughton (2003) go on to recommend ongoing enhancements to corporate governance, organisational design, and management practices in an effort to boost productivity.
Michie, Conway, and Sheenan (2003) also note that modern businesses face a significant challenge in the form of the need to boost productivity and gain a competitive edge.
Today’s organisations place a great deal of importance on workforce organisation because of the rapid speed of change and economic instability in some areas. This is particularly true for the manufacturing industry, where the most crucial and expensive link in the supply chain is the “human component of production.” A sound human capital planning strategy is more crucial given the demand volatility seen in particular industries.
Organisations are facing rising pressure to figure out how to put their plans into action in a business climate that is changing quickly and where shorter planning lifecycles mean shorter “to market” intervals. In an effort to accomplish commercial objectives, organisations are simultaneously placing an increasing amount of attention on aligning the organisation and people.
Human capital development is widely regarded as a crucial component of an ideal human resource management strategy, despite the fact that in reality it doesn’t always seem to be given great importance.
Effective human resource planning has long been discussed, even before the field of human resources management was established. Research hasn’t shown much, nevertheless, to support its success or greater use.
According to Hassan (2007), firms must establish good plans for their human resources in light of the dynamic business environment. The quick changes in this environment also pose challenges for organisations.
1.2 DETAILS OF THE ISSUE
The development of human capital in Nigeria has been impeded by a number of issues that impede the growth and development of employees and, consequently, the total productivity of an organisation. The majority of organisational failures related to low productivity have been linked by various researchers to management’s careless human resource planning over the years.
Thus, the goal of this research project is to guarantee that management has the right people in place to assist in ensuring that the company achieves the highest level of productivity and, thus, minimises resource waste.
In order to address the low productivity that most organisations are experiencing, proper human capital development and employee career advancement through sufficient training, incentive, and management structure have been recognised as the answer.
Therefore, the purpose of this research project is to measure the impact of career development, motivation, and training on organisational productivity as well as the level of employee contribution.
It also aims to carefully analyse the impact of human capital development on the productivity of the manufacturing sector, particularly the Nigerian Flour Mills.
1.3 THE STUDIES’ OBJECTIVES
This study, which looks at Nigeria Flour Mills Plc, aims to investigate how employee productivity in the industrial sector is impacted by human capital development. The study’s particular goals are as follows:
1. To investigate the connection between career advancement and employee training and development.
2. To assess how employee happiness is affected by employee orientation.
1.4 SCHOLARLY QUESTIONS
1. Is there a noteworthy correlation between career advancement and staff training and development?
2. Does employee satisfaction significantly change in response to employee orientation?
1.5 HYPOTHESES FOR RESEARCH
First Hypothesis
Ho: There is no discernible link between professional advancement and staff training and development.
Hello: Employee career progression and training and development are significantly correlated.
Second Hypothesis
Ho: There is no discernible relationship between employee orientation and job happiness.
H1: staff satisfaction is significantly impacted by staff orientation.
1.6 THE STUDY’S LIMITS
Our first priority when commencing our work was to narrow down the area of our research so that we could have a foundation upon which to develop a practical and realistic study. Our research has been restricted to long-term HRP, motivation, productivity, and career growth and planning.
Because of the limited schedule and budgetary considerations, our study will primarily rely on empirical data; it was not feasible to plan trips to any other organisations outside Nigerian flour mills. The majority of the empirical data, however, will come from career-motivated manufacturing workers employed by Nigerian flour mills.
1.7 THE STUDY’S SCOPE
The purpose of the study is to examine how the development of human capital affects productivity using a case study of flour mills in Nigeria. Nonetheless, because of the case study’s close closeness and scope, a well-structured questionnaire was used to carefully analyse the replies from a few departments in Nigerian flour mills
including the production department, human resources department, and some management staff members. But the research study is limited by factors like time, geography, finances, and other phenomena that have an impact on the research report’s breadth.
1.8 IMPORTANCE OF THE RESEARCH
The effectiveness and significance of human capital development in the manufacturing sector may be addressed by this study. Since the study helps to improve economic growth, planning, and development on labour concerns, it may also be pertinent to other industries.
More than ever, it is important to reevaluate an employee’s strengths and shortcomings in order to gauge the potential degree of motivation they may feel. The study will provide more light on management practices, procedures, and controls related to the development of human capital.
It will help management establish an environment in which employees can flourish and the organisation can be satisfied, since the two cannot coexist.
1.9 VARIABLE OPERATIONALIZATION
This entails putting the employee productivity and human capital development link into mathematical form.
Employee productivity is the dependent variable in the model specifications, and human capital development is the independent variable.
EP is equal to f (HCD).
employee productivity = f (development of human capital)… (1)
HCD = (Orientation, Training & Development)
(Employee Career Growth, Employee Satisfaction) = EP
HCD = a + bi EP………………………………….. (2)
Model 1:
ECG equals a plus bi TD.
Model 2:
ES is equal to a + bi EO.
Where:
EP stands for Employee Productivity.
The acronym for Human Capital Development is HCD.
ES stands for employee satisfaction.
TD stands for Training and Development.
EO stands for employee orientation.
Growth of Employee Careers (ECG)
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