Project Materials


The influence of human capital development on organizational performance.

The influence of human capital development on organizational performance.




The Nigerian Civil Services Commission has called for the public sector to match the standards of the private sector in terms of productivity. According to Michie and Oughton (2003), research indicates that closing the productivity gap between the private and public sectors will require increased investment in research and development, capital, and people, as well as enhanced education and training, and a modernized productive infrastructure. In an effort to increase productivity, Michie and Oughton (2003) recommend that managerial practice, corporate governance, and organizational design should undergo continual development. Michie, Conway, and Sheenan (2003) also note that the need for enhancing productivity and gaining a competitive advantage is a significant challenge for contemporary organizations.

Due to the rapid rate of change and economic instability in certain industries, labor level organization plays a significant in many businesses today. This is especially true in the manufacturing industry, where the “human component of production” is the most significant and expensive portion of the supply chain. The demand volatility that is prevalent in some industries emphasizes the significance of a solid human capital planning approach.

In a fast changing corporate environment where planning lifecycles tend to shorten in order to cut time ‘to market' intervals, organizations are under growing pressure to discover solutions to implement their objectives. Concurrently, organizations are placing a greater emphasis on aligning the organization and the people in their efforts to achieve commercial objectives. Human capital development is commonly seen as a crucial aspect of an ideal of , despite the fact that it does not always appear to be given a high priority in practice.

Prior to the introduction of human resources management, the topic of effective planning for people had been raised. However, there is scant empirical proof of its growing use and success. According to Hassan (2007), the rapidly changing business environment makes it increasingly difficult for firms to prepare effectively for their human resources.


Human capital development in Nigeria has been hampered by a variety of issues that impede employee development and progress, hence impeding the productivity of a business as a whole. Several scholars have identified a lack of thorough human capital planning by management over the years as the primary cause of organizational failure and low productivity. Therefore, the purpose of this research project is to ensure that management has the necessary individuals in place to enable the firm achieve optimum production while minimizing resource waste. Recent research has recognized proper human capital development and employee career advancement through adequate training, incentive, and management structure as a remedy for the low productivity observed by most organizations. Therefore, the purpose of this research is to analyze the effect of human capital development on the productivity of the manufacturing industry, particularly the Nigeria Flour Mills, and to measure the effect/correlation between training, motivation, and career development on an employee's level of contribution to organizational productivity.


This study examines the effects of human capital development on employee productivity in the industrial business, focusing on Nigeria Flour Mills Plc as a case study. These are the precise aims of the study:

1. To investigate the relationship between employee training and development and career advancement.

2. To assess the relationship between employee orientation and employee satisfaction.


1. Exists a significant correlation between employee training and development and job advancement?

2. How does staff orientation affect employee satisfaction?


First Hypothesis

There is no significant correlation between employee training and development and job advancement.

There is a strong correlation between training and development and employee career advancement.

Second Hypothesis

There is no correlation between employee orientation and employee satisfaction.

Employee orientation has a substantial impact on job satisfaction


Limiting the scope of our research was a big issue for us at the outset of our work in order to provide a foundation upon which we could construct a practical and practicable study. We have limited our research to long-term HRP, career planning and development, motivation, and productivity. Due to the constrained time period and cost reasons, it was impractical to incorporate visits to organizations other than Nigerian Flour Mills in our research plan. However, the majority of empirical data will be obtained from career-driven production workers at Nigerian Flour Mills.


The purpose of this study is to examine the effect of human capital development on productivity using Nigerian Flour Mills as a case study. However, due to the proximity and size of the case study, only the Human Resource Department, the Production Department, and some Management Staff members' responses were carefully analyzed using a well-structured questionnaire. However, the research study is constrained by time, geographical ramifications, finances, and other factors that determine the report's breadth.


This research may be applicable to the performance and significance of human capital development in the manufacturing sector. As a help to economic growth, planning, and the development of workforce issues, this study may also be applicable to other industries. It is more important than ever to rediscover the employee's flaws and strengths in order to determine the level of motivation the employee may desire. The study will provide more light on the practice, managerial method, and control of human capital development. It will assist management in fostering an environment in which both the employee and the organization may flourish, as neither can exist without the other.


This entails mathematically describing the relationship between human capital development and employee productivity.

The independent variable in specifying the models is human capital development, while the dependent variable is employee productivity.

EP = f (HCD)

Employee Productivity = f (Human Capital Development)……………………… (1)

HCD = (Training & Development, Employee orientation)

EP = (Employee Satisfaction, Employee Career Growth) (Employee Satisfaction, Employee Career Growth)

EP = a + bi HCD……………………………………. (2)

Model 1:

ECG = a + bi TD

Model 2:

ES = a + bi EO


Productivity (EP) = Employee Productivity

HCD stands for Human Capital Development.

Employee Contentment = Employee Satisfaction

TD equals Training and Development.

Employee orientation equals Organizational orientation

ECG equals Employee Career Development

The influence of human capital development on organizational performance.



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