Human Capital Development And Organizational Performance

1.1 Background to the Study

The human resources create value added in an organization because no work can meaningfully take place without the indispensable contributions of the human resources (Akanji, 2012). The most automated activities irrespective of the level of sophistication still require human resources intervention to ensure organizational efficiency and excellent performance (Adeoye, 2012). Human capital development on the one hand will make all organizational resources to become sources of blessing and not sources of curses because they will continuously surpass customers’ expectations and compete favourably in this competitive business environment that is saturated with all kinds of technological advancement (Mellner, Aronsson and Kecklund, 2014).

As a matter of fact, it is not always practicable to get the personnel that will be 100% perfectly fit to the job and the major objective of the organisation to fit the man to the job and fit the job to the man (Dellinaand Raya, 2013).  Fapohunda (2014) asserts that the organization can only perfect the imperfectness in the workforce through adequate and appropriate human capital development.   Training and development therefore are series of activities designed to increase the ability of individuals and groups to contribute to organization effectively and efficiently (Armstrong, and Taylor, 2014). Banjoko (2010) confirms that a lot depend on the workforce that carries out the numerous functions of the organization because the success or failure of any organization is a function of the training and development that the workforce is given.

For the desired results of an organization to be achieved, the manpower needs of that organization must be fixed to the overall objectives and goals of that organization through continuous human capital development (Ojo, Salau, and Falola, 2014).   In the opinion of Ozbilgin, Beauregard, Tatli and Bell (2011), the most important asset of every organization is the human resource because while other organizational resources including materials and finance are in themselves idle, the human resources is the most active and of course the “activator” or “mobiliser” of other factors.  Therefore, no matter how the level of automation in an organization, no matter how vast financial and material resources at the disposal of the organization, all these other organizational resources will assuredly still need the human sources to put them to proper use that will benefit the organization (Mani, 2010). 

Again, it is also a common knowledge that business and the environment of business are dynamic, the human resource/manpower can efficiently meet up with these changes in the changing environment only if the manpower is continuously trained, else, the manpower will only accept the changes in changing environment rather than positively affecting these changes in the changing environment (Mordi, Mmieh, and Ojo, 2013).

Yazdani (2011) affirms that training and development programmes are necessary in any organization to improve the quality of work of the employees at all levels, particularly in a world of fast changing technology, changing values, and deteriorating environment. 

Rukhmani, Ramesh, & Jayakrishman (2010)emphasize that the human capital development has a positive impact on operational performance. Also, Shagvaliyeva and Yazdanifard (2014) claimed that a positive correlation exists between human capital development and management performance.

Meier and Boyne (2012) assert that organisations wastages, repeated losses,  poor service delivery, poor quality service and non-compliance with customers’ specifications will all become a thing of the past if an organization takes the issue of human capital development seriously.  Therefore, this study would find out whether human capital development is related with organizational performance.

1.2 Statement of the Problem

Most organizations cannot favourably compete in today’s business environment that is saturated with all kinds of changes because they fail to fit the man into the job and fit the job into the man.  The fundamental problem of most organizations in our world today is that they desire excellent performance, organizational growth, operational efficiency, workers’ excellent exploit and management effectiveness, yet, they take the issue of continuous human capital development with levity.

Organizational wastages and losses are ignorantly celebrated in most organizations because the organizations fail to continuously train and develop the human capital that is capable of directing other organizational resources properly, profitably and productively (Rukhmani, Ramesh and Jayakrishman, 2010). The organization that will stand up with its shoulder raised high in this our age that is saturated with daily technological advancement, changes in customers’ tastes and fashion, changes in customers’ expectations and needs, frequent changes in government policies and changes in all spheres of business as caused by political, economic, socio-cultural factors among other factors cannot be indifferent to the issue of human capital development (Banjoko, 2010).

It is rather worrisome that some organizations fail to take the issue of human capital development seriously while some organizations that even have the understanding of the benefits of human capital development, fail to carry it out regularly forgetting that the organization that fails to carry out human capital development regularly will assuredly be very far from the realization of its objectives despite its dreams and desires of greatness.

This study will therefore examine the relationship that exists between human capital development and organizational performance and also proffer solutions and recommendations to problems identified in this study.