THE EFFECT OF HUMAN CAPITAL DEVELOPMENT ON ORGANISATIONAL PERFORMANCE

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TABLE OF CONTENTS

Title Page                                            –           –           –           –           –           i

Certification                                        –           –           –           –           –           ii

Approval Page                                    –           –           –           –           –           iii

Dedication                                          –           –           –           –           –           iv

Acknowledgments                              –           –           –           –           –            v

Table of contents                                –           –           –           –           –           vi

List of tables                                       –           –           –           –           –           ix

Abstract                                              –           –           –           –           –           x

CHAPTER ONE

INTRODUCTION

1 .1     Background of Study                                      –           –           –           1

1.2       Statement of   the Problem                             –           –           –           3

  1. Objectives of the Study                                  –           –           –           3

1.4       Research Questions                                         –           –           –           4

  1.       Research Hypotheses                                      –           –           –           4

1.6       Significance of the Study                               –           –           –           4

1.7       Scope of the Study                                         –           –           –           5

1.8       Limitations of the Study                                 –           –           –           5

1.9       Definition of the Terms                                  –           –           –           5

           References

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1       Concept of Human Capital                             –           –           –           8

2.2       Human Capital Management (HCM) Features and Functions           9

2.3       The Emergence of Human Capital Theory     –           –           –           11

2.3.1    Macro Orientation: Economic Perspectives    –           –           –           11

2.3.2    Micro Orientation: Organizational Perspectives         –           –           13

2.3.2.1 Human Capital and the Resource-Based View Theory          –           13

2.3.2.2 Human Capital and Strategic Human Resource Management           18

2.3.2.3 Issues with Human Capital and Performance Linkage           –           23

2.4       Human Capital and Complementary Capitals        –           –           24

2.4.1    Intellectual Capital                                          –           –           –           26

2.4.2    Social Capital                                                  –           –                       28

2.4.3    Organizational (Structural) Capital                 –           –           –           29

2.5       Human Capital, Human Resources: Rhetoric and Reality      –           32

2.5.1     Making Sense of Rhetoric: Managerial Cognition and Psychological     Contract                                                          –           –           –           34

2.6       Critical Views on Human Capital                   –           –           –           37

2.6.1    Resistance                                                       –           –           –           40

2.7       Concept of Organisational Performance         –           –           –           43

2.7.1   Factors Affecting Performance                      –           –           –           44

2.8       The Theory on Performance Management      –           –           –           44

2.8 .1    Performance Criteria                                      –           –           –           45

2.8.1.1 Trait Based Criteria                                         –           –           –           45

2.8.2.2 Behaviour Based Criteria                                –           –           –           45

2.8.2.3 Outcome Based Criteria                                 –           –           –           45

2.9       The Relationship between Human Capital and Firm Performance     45

References

CHAPTER THREE

RESEARCH METHODOLOGY

  • Introduction                                                    –           –           –           60
  • Research Design                                             –           –           –           60
  • Sources of Data                                              –           –           –           60
  • Instruments for Data Collection                     –           –           –           61

3.5       Population of the Study                                  –           –           –           61

3.6       Sample Size Determination                             –           –           –           62

3.7       Sampling Procedure                                        –           –           –           63

3.8       Validity and Reliability of Data and Test Instruments          –           64

3.8.1    Validity of Measurement                                –           –           –           64

3.8.2   Reliability of Data                                          –           –           –           64

3.9       Questionnaire Design and Administration     –           –           –           64

3.10    Data Treatment Technique(S)                          –           –           –           65

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

4.1       Questionnaire Distribution                              –           –           –           68

4.2       Gender Distribution of the Respondents        –           –           –           68

4.3:      Marital Status of the Respondents                 –           –           –           69

4.4       Educational Qualification                               –           –           –           69

4.5       Test of Hypotheses                                         –           –           –           70

CHAPTER FIVE

SUMMARY OF MAJOR FINDINGS CONCLUSION AND RECOMMENDATIONS

5.1       Summary of Major Findings                           –           –           –           84

5.2       Conclusion                                                      –           –           –           84

5.3       Recommendations                                          –           –           –           84

5.4       Suggested Areas for Future Research            –           –           –           85

Bibliography              

Appendix II

Biographical Question

LIST OF TABLES 

Table 4.1         Questionnaire Distribution                              –           –           68

Table 4.2         Gender Distribution of the Respondents        –           –           68

Table 4.3:        Marital Status of the Respondents                 –           –           69

Table 4.4:        Skill Acquisition and Organizational Performance     –           70

Table 4.5:        Education   and Employee Skills        –           –           –           70

Table 4.6:        Application of Human Capital and Organizational

Performance                                        –           –           –           71

Table 4.7:        Good Experience and Organizational Productivity    –           71

Table 4.8:        Training and Minimize Waste             –           –           –           72

Table 4.9:        Improve Quality and Training            –           –           –           72

Table 4.10:      On the Job Training and Organizational Performance            73

Table 4.11:      Off-The-Job and Organizational Performance           –           73

Table 4.12:      Attracting and Developing Performance                    –           74

Table 4.13:      Promoting and Organizational Effectiveness    –           75

Table 4.14:      Improving Decisions and Talent Resource                 –           75

Table 4.15:      Building Network and Human Capital                       –           76

Table 4.16:      Monetary-Incentive and Performance Organizations             76

Table 4.17:      Free Medical Care and Organization              –           –           77

Table 4.18:      Welfare Package and Worker Performance    –           –           77

ABSTRACT

The purpose of this research work is to highlight the impact of human capital management on organisational performance in the manufacturing firms. Today’s business environment is in the state of flux, where competition is the name of the game. Organizations that fail to change may be forced to change from existence to non-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. Specifically, the study aimed to pursue the following objectives: to establish  the relationship between  Human capital management and organizational performance, to examine the extent to which training affects organizational performance, to ascertain the extent to which talent management impacts on organizational performance, to evaluate the extent to which incentive and compensation influence organizational productivity. The study had a population size of 1,210, out of  which a sample size of 303 was realised using Taro Yamene formula at 5% error to tolerance and 95 % level of confidence. Instrument used for data collection was primarily questionnaire and interview. The total numbers of 303 copies of the questionnaire were distributed while 283 copies were returned. The descriptive research design was adopted for the study. Four hypotheses were tested using Pearson’s moment correlation coefficient, chi-square (x2) and Z- test statistical tools. The findings indicate that there was significant relationship between human capital management and organisational performance. Training positively affects organisational performance. Incentives and compensations positively influence organisational performance. The study concluded that theoretical and technological advance in human capital management has allowed manufacturing organizations to move beyond managing personnel by head count and billet, the managing their workforces. The study recommends that Firms should conduct a workforce assessment to determine the current human capital capacity based on the verified job requirements.

CHAPTER ONE

INTRODUCTION

1 .1         BACKGROUND OF STUDY

Today’s business env