EFFECT OF HUMAN CAPITAL DEVELOPMENT ON ORGANIZATIONAL PERFORMANCE
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
It was the call of the Nigerian Civil Service Commission to bring public sector productivity to the level of the private sector. According to Michie & Ougton (2003), research suggests that bridging the productivity gap between the private and public sectors requires increased investment in research and development, capital and human resources, improved education and training, and improved manufacturing infrastructure. It is suggested that modernization is necessary. Michie & Ougton (2003) further suggest the need for continuous improvement in management practices, corporate governance, and organizational design to improve productivity. Michie, Conway & Sheenan (2003) also point out that a major challenge for modern organizations is to increase productivity and gain competitive advantage.
Due to the fast pace of change and economic instability in some markets, workforce organizing plays a crucial role in many companies today. This is especially true in manufacturing. Because the “human element in production” is the most important and costly part of the supply chain. The volatility of demand in some sectors increases the importance of good workforce planning strategies. Organizations are under pressure to find ways to execute their strategies in a rapidly changing business environment. In this business environment, planning lifecycles tend to shorten in order to reduce time to market. At the same time, organizations are increasingly focused on aligning organizations and people when trying to achieve business goals. Human capital development is usually viewed as an essential function of ideal human resource management, even if it is not always a high priority in practice.
The issue of effective workforce planning was posed long before human resource management came along. However, there is little scientific evidence to support its increased use or success. Hassan (2007) argues that the evolving business environment requires organizations to plan their human resources effectively.
1.2 STATEMENT OF THE PROBLEM
Human capital development in Nigeria has been hindered with different problems that prevent employee development and growth and thus prevent overall growth to the productivity of an organization. Lack of careful human capital planning over the years by management has been identified by several researchers as the bane of most organizational failure for low productivity. Therefore this research thesis is to ensure that management have proper personnel in place to help ensure that the organization attain maximum productivity possible and thereby reducing wastage of resources. Recently, proper human capital development and employee career growth through adequate training, motivation and management structure has been identified as a panacea to the low productivity witness by the most organization. So this research work aim to carefully analyzed the effect of human capital development on the productivity of the manufacturing industry especially the Nigeria Flour Mills and also to measure the effect/correlation between training, motivation and career development on an organizational productivity cum level of contribution of employee.
1.3 OBJECTIVES OF THE STUDY
The general purpose of this study is to examine the impact of human capital development on employee productivity in the manufacturing industry. A study by a Nigerian flour milling company. The specific objectives of this research are to:
1. Explore the relationship between employee training and development and employee career growth.
2. Evaluate the impact of employee orientation on employee satisfaction. 1.4 Research question
1. Is there a significant correlation between employee training and development and employee career growth?
2. Does employee orientation have a significant impact on employee satisfaction?
1.4 RESEARCH QUESTIONS
Hypothesis I
Ho:
No significant correlation between employee training and development and employee career growth
Hi:
There is a significant correlation between training and development and employee career growth
Hypothesis II
Ho:
Employee orientation has no significant impact on employee satisfaction
H1:
Employee orientation has a significant impact on employee satisfaction
1.5 RESEARCH HYPOTHESES
Limiting the scope of our study was a major concern for us at the beginning of our work in order to have a starting point from which we could build a realistic and workable study. We limited our research to long-term HRP, career development and planning, motivation, and productivity. Our study relies heavily on empirical data due to the given timeframe and economic factors. It was impractical to design the survey to include visits to persons and organizations outside Nigerian mills. collected from.
1.6 SIGNIFICANCE OF THE STUDY
This study may be relevant to the performance and importance of human capital development in manufacturing. The research may be relevant to other industries as well, as it is a tool for improving planning and development of economic growth, human resource issues. Now more than ever there is a need to rediscover an employee’s weaknesses and strengths in order to determine the level of motivation they desire. This study sheds further light on human capital development practices, management processes, and controls. It helps management to create conditions where employees can grow and the organization is happy with each other.
1.7 SCOPE OF THE STUDY
This study aims to examine the impact of human capital development on productivity, a case study of a flour mill in Nigeria. Due to the close proximity and large scale of the case studies, the responses of some departments, especially the human resources department, the manufacturing department, and some administrative staff in Nigerian flour mills, could not be obtained using well-structured questionnaires. carefully analyzed. However, research studies are limited by time, geographic influences, financial and other phenomena that affect the scope of research reports.
Leave a Comment