Effect Of Human Capital Development On Organisation Performance

This study was carried out on the effect of human capital development on organization performance using Anambra State Polytechnic Mgbakwu as a case study. The study specifically aimed to ascertain whether there is a significant relationship between human capital development and organization performance, determine the extent human capital development programmes are implemented in Anambra State Polytechnic Mgbakwu, find out whether human capital development improves staff commitment and productiveness in an organization, and determine whether human capital development enhances organizational effectiveness of Anambra State Polytechnic Mgbakwu. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprised of employees of staffs of Anambra State Polytechnic Mgbakwu. In determining the sample size, the researcher conveniently selected 57 respondents and 50 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables, and mean scores. The hypotheses was tested using Pearson Correlation Statistical tool. The result of the findings reveals that there is a strong significant relationship between human capital development and organization performance. The study reveals that human capital development improves staff commitment and productiveness in an organization as well as enhance organizational effectiveness of Anambra State Polytechnic Mgbakwu. Therefore, it is recommended that tertiary institutions in Nigeria should strongly embrace human capital development programs in order to remain focused to their objectives. Staff should be trained frequently on all issues relating to their performance and other job related skills. To mention but few.

Introduction

1.1 Background of the Study

It is conceivable to do things right, lay splendid plans, draw clear organization diagrams, set up world-class sequential systems and utilize complex accounting controls by employing the wrong individuals or by not spurring subordinates. On the other hand, organizations can be fruitful on the grounds that they have the chance of contracting the perfect individuals for the correct occupations and propelling, acknowledging, assessing and creating them. There is no undertaking upheld with smart thoughts, power and eagerness that has been ceased by capital insufficiency; yet there are organizations which development had been impeded in view of failure to contract and keep up exceptionally effective and excited workforce. This bombs under the domain of human capital management Ajisafe, Orifa and Balogun (2015).

Human Capital can be said to be specifically within an economic setting as a manufacturing factor, and as an economic term used to describe the skills and knowledge that individuals attracts upon to generate outputs of value, such as innovation and productivity in job performance. It is no exaggeration in the assertion that the most significant resource of any organization is often said to be its people. People, knowledge and skills are known as human capital (HC), Human Capital is the central of intellectual capital that energies organizational performance, with educational institutions inclusive(Qureshi, 2012).

Choudhury(2011), stated that People are the organizations greatest tool, providing the intellectual capital that drives differentiation and enhance value. Of course, an organization is nothing but inter-related groups of people whose activities are planned and coordinated to meet organizational objectives. An organization that either manufacture goods or render services has a good chance to survive and prosper if it consists of the right people.
The success of any organisation depends on the efficient and effective performance of its employees. Rowden, and Conine, (2005) opined that employees are organisations" most valuable assets because they project the image of the organisation, possess the skills and experiences to develop and transform the organisation. Rastogi (2002) stated that human capital is an important input for organisations especially for employees" continuous improvement mainly on knowledge, skills, and abilities. Thus, employees" development is one of the most important functions of human resource management. Recent research suggests that employee"s development opportunities provided by an organisation, are not only helpful in shaping employees" mind-sets in accordance with and strategic objective of the firm; these also have a potential to leave a strong impact on organisations level of outcomes, (Whitener, 2001; Woods and de Menezes, 2008). Employees" development is essential in maintaining and developing the capabilities of both individual employee and the organisation as a whole. A central idea is that perceived investment in employees development creates conditions where employees believe that their organisations value their involvement and care about their skill enhancement and career growth. Training and development opportunities facilitates greater commitment of employees" towards the organisation and, in turn, generates willingness of employees" to go an extra mile for the organisation, (Arthur, 1994; Woods and de Menezes, 2008). Therefore, human capacity development is a critical index of competition in the world of business to the extent that the development of such capacities through training and skill acquisition has become top priority in designing the strategic plan of business organisations, (Filipkowski, and Johnson, 2008).

1.2 Statement of the Problem

The productivity of staff in Nigeria is falling resulting to low performance of the organization. This is because most organizations fail to send their employees on training due to lack of funds that is involved in embarking on employees training. Also most organizations believe that workers are dubious in nature, after returning from training desert their organizations to join other firms. For instance most Nigerian tertiary institutions do not give their employee effective and efficient training, considering the cost implication of sending employees on quality training which result into low productivity.

Nevertheless, the issues of human capital development are not taken seriously by most tertiary institution, this is because of the failure to acknowledge the fact that the setting has become very active and as such only those organizations with the right informational need in the business times can succeed with the right technological manpower to succeed in modern times. Failure to take training and development especially in modern organization will lead to stifling growth, lack of productivity and inability to compete favorably in the industry. Pertinent to the above the study seeks to investigate the effect of human capital development on organization performance using Anambra State Polytechnic Mgbakwu as a case study.

1.3 Objectives of the study

Generally, this study seek to examine the effect of human capital development on organization performance using Anambra State Polytechnic Mgbakwu as a case study. Specific objectives of the study are stated below.

Ascertain whether there is a significant relationship between human capital development and organization performance.

Determine the extent human capital development programmes are implemented in Anambra State Polytechnic Mgbakwu.

Find out whether human capital development improves staff commitment and productiveness in an organization.

Determine whether human capital development enhances organizational effectiveness of Anambra State Polytechnic Mgbakwu.

1.4. Research Questions

Does a significant relationship exist between human capital development and organization performance?

To what extent are human capital development programmes implemented in Anambra State Polytechnic Mgbakwu?

Does human capital development improve staff commitment and productiveness in an organization?

Does human capital development enhance organizational effectiveness of Anambra State Polytechnic Mgbakwu?

1.5 Research Hypotheses

Ho: There is no significant relationship between human capital development and organization performance.

Ha: There is a significant relationship between human capital development and organization performance.

1.6 Significance of the Study

This study could be relevant to the performance and importance of human capital development in the public organization. The study could also be relevant to other organizations as it is an aid to enhance economic growth, planning and development on manpower issues. There is the need now than ever to re-discover the weaknesses and the strengths of employee in determining the level of motivating the employee may desire. The study will throw more light into the practice, managerial procedure and control of the human capital development, It would assist management to create a situation where the employee can grow likewise the organization can be satisfied with each other as both cannot exist without the other.

1.7 Scope of the Study

The scope of this study boarders on the effect of human capital development on organization performance. Geographically, this study will be delimited to Anambra State Polytechnic Mgbakwu.

1.8 Limitation of the Study

Like in every human endeavour, the researcher encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size. More so, the researcher simultaneously engaged in this study with other academic work. As a result, the amount of time spent on research will be reduced.

1.9 Definitions of Terms

Human Resources:

The workforce of the organization that puts other organizational resources into proper use.

Training:

This is a systematic and organized procedure through which non-managerial personnel acquire technical knowledge and skills for a definite purpose.

Development:

This is a systematic procedure through which managerial personnel acquire better knowledge in carrying out their decision making roles.

Human Capital Management:

This is concerned with obtaining, analysing and reporting on data that informs the direction of value adding strategic, investment and operational people management decisions at corporate level and at the level of frontline management.

1.10 Organizations of the Study

The study is categorized into five chapters. The first chapter presents the background of the study, statement of the problem, objective of the study, research questions and hypothesis, the significance of the study, scope/limitations of the study, and definition of terms. The chapter two covers the review of literature with emphasis on conceptual framework, theoretical framework, and empirical review. Likewise, the chapter three which is the research methodology, specifically covers the research design, population of the study, sample size determination, sample size, and selection technique and procedure, research instrument and administration, method of data collection, method of data analysis, validity and reliability of the study, and ethical consideration. The second to last chapter being the chapter four presents the data presentation and analysis, while the last chapter(chapter five) contains the summary, conclusion and recommendation.

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