EFFECT OF HUMAN CAPITAL MANAGEMENT POLICIES ON ORGANIZATIONAL GROWTH
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EFFECT OF HUMAN CAPITAL MANAGEMENT POLICIES ON ORGANIZATIONAL GROWTH
Chapter one
INTRODUCTION
Background to the Study
Over time, scholars and management have recognised the importance of managing people within organisations. Human capital plays an increasingly important role in accomplishing organisational goals.
As a result, organisations are becoming more employee-centric, emphasising staff development, engagement, and organisational commitment.
According to Fillippo (2000), organisations have increasingly recognised the potential for their employees to provide a competitive edge, but this needs careful attention to the strategies that best use these assets.
According to Beach (2008), experts generally agree that well-designed human resource management policies can improve organisational performance.
Related theories, like as the theory of motivation, propose and support the premise that human capital management methods influence employees’ attitudes and behaviour.
Human capital management is an organization’s invisible asset. It adds value when integrated into the operational system, improving organisational performance and ability to manage with a volatile environment.
Effective human capital management helps to grow human capital into a high-quality and efficient workforce, allowing the organisation to gain a competitive advantage through its people.
Adeleye (2010) accepts that human capital development is the ultimate foundation for national prosperity, whereas capital and natural resources are passive inputs of production. The importance of human capital development for a country’s economic prosperity cannot be overstated.
Chrisman (2010) further emphasises that humans are the active actors who acquire capital, exploit natural resources, form social, economic, and political organisations, and drive country development.
He believes that a country that cannot develop its people’s talents and knowledge and effectively apply them to the national economy will be unable to develop anything else.
According to Cole (2011), human resources must be trained in order to achieve effective organisational commitment. Training is a flexible technique to grow an employee because it includes both formal and informal ways to improve employee effectiveness.
Jackson (2011) further believes that job security enhances employee honesty, keeps people engaged to the organisation, and protects vital knowledge.
According to Smith (2010), information transfer can have an impact on employee performance by assisting employees in developing their grasp of networking while also focusing on organisational performance.
According to Wikipedia (2016), growth is defined as a positive change in size and maturity that occurs throughout time. Growth can occur as a stage of maturation or as a path to fullness or fulfilment.
In economics, “economic growth” or “economic growth theory” often refers to the expansion of potential output, i.e. production at “full employment.” Economic growth is typically divided from development economics as a study topic.
The former is primarily concerned with how countries might progress their economies. The latter is the study of economic development, specifically in low-income countries.
Sari (2006) uses productivity as a metric of production efficiency. It can be represented as the output-to-input ratio; when all outputs and inputs are included in productivity measures, the result is total productivity.
Output and inputs are measures of the income created during a production process. It is a measure of the whole efficiency of a manufacturing process and thus the goal to be maximised in the production process.
Organisational performance is related to organisational fairness, which permits employees to commit to the tasks allocated to them. The human capital dimension has a significant impact on employees’ attitudes, which in turn influence their performance. If the human capital management system is functional, there is hope for organisational progress.
Organisation is a social unit of individuals that is structured and controlled to address a need or achieve common goals. All organisations have a management structure that establishes the link between different activities and individuals
as well as assigning roles, responsibilities, and authority to carry out certain tasks. Organisations are open systems that both affect and are influenced by their surroundings. Katz, (2000).
1.2 Statement of Problem
Human capital plays an increasingly important role in accomplishing organisational goals. As a result, management or people within the organisation become a primary focus for managers and researchers.
Ministry of Works Uyo is a subsystem inside the overall organisational structure. Thus, the researcher aims to determine the impact of human capital management practices on organisational growth.
The study’s underlying problem could include inadequate human capital policies and decision making in an organisation, ineffective policy execution, a lack of adequate policies, poor policy monitoring by management to control organisational growth, and poor service quality.
The identified concerns can be addressed one after the other, in order.
1.3 Objectives of the Study
The goal of this research is to investigate the impact of human capital management policies on organisational growth. Specifically, the study aims to achieve the following goals.
To identify human capital management policies and their role in the Ministry of Works, Uyo.
To determine the level of policies towards achieving organisational growth.
To determine the level of policies towards accomplishing the organization’s goals.
To suggest the necessity for human capital management policies in order to achieve good organisational performance.
1.4 Research Questions.
The questions below were developed to serve as a guide for this effort.
Is there a significant impact of human capital management policies on organisational growth at the Ministry of Works, Uyo?
Is management able to influence an organization’s performance?
Does the level of policies in an organisation help the management achieve organisational growth?
Does proper monitoring of established policies assist management in achieving organisational growth?
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