EFFECT OF HUMAN CAPITAL DEVELOPMENT ON PERFORMANCE OF SELECTED MANUFACTURING FIRMS IN ENUGU STATE, NIGERIA

EFFECT OF HUMAN CAPITAL DEVELOPMENT ON PERFORMANCE OF SELECTED MANUFACTURING FIRMS IN ENUGU STATE, NIGERIA

ABSTRACT

The purpose of this research work was to highlight the effect of human capital development on organisational performance in selected manufacturing firms in Enugu State, Nigeria. Today’s business environment is in the state of flux, where competition is the name of the game. Organisations that fail to innovate and brace up with the changing times may be forced out of business. Organisations now leverage on the workforce as a competitive weapon by developing and harnessing their human capital. The study sought to: establish the nature of relationship between work experience and customer satisfaction; examine the extent to which training affects productivity; ascertain the effect of talent management on effective service delivery and evaluate the extent to which education affects innovation and creativity. The study had a population size of 4,407, out of which a sample size of 528 was realised using Bill Godden formula at 4% error tolerance and 95% level of confidence. Instrument used for data collection was the questionnaire. Out of 528 copies of the questionnaire that were distributed, 479 copies were returned while 49 were not returned. The descriptive survey research design was adopted for the study. The hypotheses were tested using Pearson Product Moment Correlation coefficient and simple linear regression. The findings indicated that: there is a positive relationship between work experience and customer satisfaction (r = 0. 955, P =0.000 < 0.05); Training has a significant effect on productivity (r = 0. 619; t = 9.744; p = 0.000< 0.05); Talent management significantly affects service delivery ( r = 0.782; t = 12.149; p= 0.000 < 0.05) and Education has a significant effect on innovation and creativity ( r = 0.932 ; t = 6.826; p = 0.000 < 0.05). The study concluded that human capital development has become a part of an overall effort to achieve improved firm performance. The study recommended that firms should verify and validate the job information gathered to ensure that it accurately reflects mission requirements. Based on the information, consider streamlining the organisation to generate synergy and should take the development of their human capital seriously.

CHAPTER ONE

INTRODUCTION

1 .1           Background of Study

The business environment of today is in a state of flux, where competition is the name of the game. Organisations that fail to change may be forced out of existence; hence, survival is the panacea. To survive, companies must explore all available avenues that can bring about competitive advantage. To develop a competitive advantage, it is important that firms truly leverage on the workforce as a competitive weapon. (Marimuthu, Arokiasamy, and Ismail, 2009).

Kwon (2009) in support asserts that current realities and issues in the global business environment such as globalisation, knowledge – based economy, and technological evolution have compelled many countries and organisations to seek new ways to maintain competitive advantage. In response, the current understanding is that success depends largely on the people with higher levels of individual competencies and skills. To this end, the people are becoming valuable assets and can be recognised within the framework of human capital.

In comparative terms, with regard to recorded history, income levels were low, lives were short and there was little or no economic growth in the past. Presently, we now have healthier, longer and by implication happier lives. This system shift involved increased knowledge and its dissemination, greater levels of training and education, improved health, more migration, fertility change, and demographic evolution. In sum, the process involved improvements in human capital (Goldin, 2014).

In general terms, Boldizoni (2008) posits that the concept of human capital is grammatically composed of two words: human and capital. In the economic perspective, capital refers to factors of production used to create goods or services that are not themselves significantly consumed in the production process. Combined with the meaning of capital in the economic perspective, the human is the subject that takes charge of all economic activities such as production, consumption and transaction. These concepts having been firmly established, it can be seen that human capital….

EFFECT OF HUMAN CAPITAL DEVELOPMENT ON PERFORMANCE OF SELECTED MANUFACTURING FIRMS IN ENUGU STATE, NIGERIA