ABSTRACT
This project examined the relationship between human capital development and organizational performance. The research design used was survey design, the population of this study consists of members of staff of Sterling Bank Plc Lagos, while the sample size was 118 that responded to administered questionnaire. Data were collected using a structured questionnaire and analysed using frequency Tables and Percentages. The findings of the study are that human capital developmentmotivates workers; human capital development reduces high level of labour turnover; human capital development retains the best hands in the services of the organization; human capital development matches workers’ ability with job requirements; human capital development enables workers meet and surpass set standards and that human capital development makes workers to be productive. The researcher recommends that the management of Sterling Bank Plc should continuously promote human capital development and that the management of Sterling Bank Plc should constantly train and develop members of staff the bank so as to meet and surpass expectations.
CHAPTER ONE
INTRODUCTION
1.1Background 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).
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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, Shagvaliyevaand Yazdanifard(2014)claimedthat 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.
