HUMAN CAPITAL DEVELOPMENT AND ORGANIZATIONAL PERFORMANCE
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HUMAN CAPITAL DEVELOPMENT AND ORGANIZATIONAL PERFORMANCE
Chapter one
INTRODUCTION
1.1 Background for the Study
Human resources bring value to an organisation since no task can be done meaningfully without their crucial contributions (Akanji 2012). Even the most automated operations, regardless of sophistication, require human interaction to ensure organisational efficiency and great performance (Adeoye, 2012).
Human capital development, on the one hand, will transform all organisational resources into blessings rather than curses because they will consistently exceed customers’ expectations and compete favourably in this competitive business environment saturated with technological advancement (Mellner, Aronsson, and Kecklund, 2014).
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In truth, it is not always possible to find persons who are exactly suited to the task, and the primary goal of the organisation is to adapt the man to the job as well as the job to the man.
According to Fapohunda (2014), an organisation can only fix the imperfections in its workforce through adequate and suitable human capital development. Training and development are thus a set of actions meant to improve people’ and groups’ abilities to contribute to organisations in an effective and efficient manner (Armstrong and Taylor, 2014).
Banjoko(2010) acknowledges that a lot depends on the workforce that performs the organization’s various activities because the success or failure of any organisation is determined by the training and development that the staff receives.
To attain the intended results, an organization’s manpower demands must be aligned with its overall objectives and goals through ongoing human capital development (Ojo, Salau, and Falola, 2014).
According to Ozbilgin, Beauregard, Tatli, and Bell (2011), the most important asset of any organisation is its human resources, because while other organisational resources such as materials and finance are inactive, human resources are the most active and, of course, the “activator” or “mobiliser” of other factors.
As a result, regardless of the level of automation in an organisation, or the vast financial and material resources at its disposal, all of these other organisational resources will undoubtedly require human resources to be put to proper use that will benefit the organisation (Mani, 2010).
Again, it is common knowledge that business and its environment are dynamic; the human resource/manpower can only efficiently meet these changes in the changing environment if the manpower is continuously trained;
otherwise, the manpower will only accept the changes in the changing environment rather than positively affecting these changes (Mordi, Mmieh, and Ojo, 2013).
Yazdani (2011) asserts that training and development programmes are required in any organisation to improve the quality of work of employees at all levels, especially in a world of rapidly changing technology, shifting values, and deteriorating environmental conditions.
Rukhmani, Ramesh, and Jayakrishman (2010) emphasise that human capital development improves operational performance. Additionally, Shagvaliyeva and Yazdanifard (2014) claimed that there is a positive association between human capital development and management performance.
According to Meier and Boyne (2012), if an organisation prioritises human capital development, it will eliminate waste, repetitive losses, poor service delivery, poor quality service, and non-compliance with client demands. As a result, the purpose of this study is to determine whether human capital development is related to organisational performance.
1.2 Statement of Problem
Most organisations are unable to compete favourably in today’s business climate, which is saturated with all types of changes, since they fail to fit the man into the job and the job into the man.
The underlying difficulty of most organisations in our world today is that they demand good performance, organisational growth, operational efficiency, workers’ excellent exploit and management effectiveness, but they treat the subject of continual human capital development with levity.
Most organisations inadvertently celebrate organisational waste and losses because they fail to continuously train and develop human capital capable of properly, profitably, and productively directing other organisational resources.
The organisation that will stand up with its shoulder raised high in this day and age, which is saturated with daily technological advancement, changes in customer tastes and fashion, changes in customer expectations and needs, frequent changes in government policies
and changes in all spheres of business as a result of political, economic, and socio-cultural factors, among other factors, cannot ignore the issue of human capital development.
It is concerning that some organisations fail to take the issue of human capital development seriously, while others, despite understanding the benefits of human capital development, fail to carry it out on a regular basis
forgetting that an organisation that fails to carry out human capital development on a regular basis will undoubtedly be very far from realising its objectives, regardless of its dreams and desires for greatness.
This study will therefore analyse the relationship that exists between human capital development and organisational success, as well as provide solutions and recommendations to the difficulties discovered in this study.
1.3 Goals and Objectives of the Study
The purpose of this study is to investigate the relationship that exists between human capital development and organisational performance. The specific objectives are:
I. Investigate the important association between worker training and enhanced worker performance.
ii. Evaluate the major relationship between management growth and employee motivation.
iii. Determine whether there is a substantial association between matching workers’ abilities to job requirements and worker efficiency.
iii. Investigate the substantial association between enhanced worker intelligence and superior worker service delivery.
1.4 Relevant Research Questions.
Is there a strong association between worker training and better worker performance?
ii. Is there a strong relationship between managerial growth and employee motivation?
iii. What is the relationship between matching workers’ abilities to job requirements and worker efficiency?
iv. Is there a meaningful association between greater worker intelligence and excellent service delivery?
1.5 Relevant Research Hypotheses.
Hypothesis I
Ho: No substantial association exists between worker training and enhanced worker performance.
Hi: There is a strong association between worker training and enhanced worker performance.
Hypothesis II.
Ho: No substantial association exists between management growth and staff motivation.
Hi: There is a strong association between managerial growth and employee motivation.
Hypothesis III.
Ho: There is no substantial association between matching workers’ skills to job requirements and worker efficiency.
Hi: There is a strong correlation between matching workers’ abilities to job requirements and worker efficiency.
Hypothesis IV
Ho: No substantial association exists between improved worker intelligence and excellent service delivery.
Hi: There is a strong association between higher worker intelligence and great worker service performance.
1.6 Significance of the Study
This research will be useful to employers, potential and future researchers, Sterling Bank staff, and management.
i. Through this study, Sterling Bank’s management will gain insight into the benefits of human capital development for the organisation as a whole.
ii. This study will also be useful to the bank’s workers, as it will educate them on the importance of constant training and development in order to remain competitive.
iii. The study will also be useful for employers in determining how to include continuous human capital development into their policies, practices, and principles.
iv. The study will also benefit the government, academics, potential and future scholars in the field of human capital development.
1.7 Scope of Study
The focus of the study is limited to an evaluation of the relationship between human capital development and organisational success, with Sterling Bank serving as a case study.
1.7 Definition of Terms
Training is a planned and organised process by which non-managerial employees gain technical knowledge and abilities for a specific goal.
Development: This is a methodical process by which managerial individuals gain more expertise in carrying out their decision-making responsibilities.
Efficiency is the ability to complete a task correctly with the least amount of resources, cost, time, and effort in order to maximise profit.
Employee: A person who works part-time or full-time under a contract of employment that specifies their rights and duties.
Human Resources: The organization’s personnel that effectively utilises other organisational resources.
Job satisfaction is a set of feelings and ideas that people have regarding their current jobs.
Management is the activity of planning, organising, coordinating, and regulating both human and material resources to achieve specific goals/objectives.
Motivation: A reward that encourages employees to enhance their work performance.
Organisation: A group of two or more people who work together to achieve specific aims.
Productivity is the quantity of production per unit of input (labour, equipment, and capital).
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