THE EFFECT OF HUMAN CAPITAL DEVELOPMENT ON ORGANIZATIONAL PRODUCTIVITY IN THE PUBLIC SECTOR

Abstract

This study examines the effect of human capital development on organizational productivity in a single local government, future studies can be carried out with broad scope and specifications. In addition; there are several factors that determine the efficiency of the human capital apart from training, it is therefore suggested that future studies can look at the role of the remuneration system vis-a-vis human capital development and organizational productivity. It capital represents the knowledge, skills and abilities that make it possible for people to do their jobs. Human capital development is about recruiting, supporting and investing in people, using a variety of means, including education, training, coaching, mentoring, internships, organizational development and human resource management. The problem of low productivity and less competent work force has immensely cost the public sector in terms of loss of profit and wasted time coupled with unsatisfied customers who fail to patronize the public sector again either as· a result of poor communication or unsatisfied business on the part of the organization

 CHAPTER ONE

INTRODUCTION

• Background of the study

The world today is very different from the one which experienced the two world wars. During the second half twentieth century, considerable advancements in science and technology, along with the establishment of broadly-based governments and strengthening of institutions, have led to significant socio-economic progress and improvement in the lives of a large number of people in many countries. However, there are still many others among us who are lagging behind. Given the vastly divergent economic development among the groups of countries, it would be a common myth to presume that the discrepancy in development is somehow inherited by the respective groups of countries.  Contrary to this general perception, it is quite an enigma to note that, this had not been the case in the past (Hassan, 2000). Human capital represents the knowledge, skills and abilities that make it possible for people to do their jobs. Human capital development is about recruiting, supporting and investing in people, using a variety of means, including education, training, coaching, mentoring, internships, organizational development and human resource management, strengthening the human capital of organization and the larger community development field should be an important goal of any organization that deserves higher productivity. According to Corporate District Quarters (2007) organization will remain effective and keep their edge only as long as they have competent and committed individuals working for them.  As the public sector grows, attracting new talent and passing along the experience arid wisdom of the more seasoned professionals are critical challenges. Some of the human capital development initiatives that can lead to the increased productivity of organization includes coaching to elevate employee skills and position them to advance to higher level positions within their career or elsewhere in the field as well as assistance in mapping out a career development plan, in­-service training to build .specialized skills; mentoring etc. After the globalization and World Trade Organization regime, the whole dimension of economy has changed. Productivity, quality, delivery and customer satisfaction are the four words have become key words to sustain the shocks given by the globalized competition. Focus of production has been changed towards market and customer. Instead of speaking about only profit, people are speaking about world class manufacturing processes. The globalization has widened the area of competition and given the opportunities to many companies. The resource like material, machinery will not only contribute in the success. Stronger human capital management is required to run the systems have provided significant economic benefits to organizations that have embraced them as ongoing process instead of on-time events. For becoming world class, public sectors need to increase revenue, improve fund flow, increase returns of investment, improve quality, increase productivity, reduce cost, reduce cycle time, and increase market capitalization (Aina, 2005). Aina (2005) stated further that the participation of human capital development is not only necessary but all encompassing. Thus aligning the human resource towards business goal is the prime need for success. Competencies and the competitive edge showed the when an organization identifies and communicates the core competencies that strategy to achieve goals. The role the competences can play in an organization include-articulation what the organization’s values are, providing a common language for employers and managers to describe value creation? The competitive workforce creation is necessary. Talent management has to be practiced, learning organizations and the organization which will adopt the change very rapidly will only survive. Given the importance of human capital development in the success and productivity of any organization, this study intends to look at its role in the management of the public sector.

1.2 STATEMENT OF PROBLEM

The problem of low productivity and less competent work force has immensely cost the public sector in terms of loss of profit and wasted time coupled with unsatisfied customers who fail to patronize the public sector again either as a result of poor communication or unsatisfied business on the part of the organization. The business world is a dynamic and changing platform especially with globalization, it is therefore imperative for organization to consider its work force as the biggest asset of the organization. But the recent happening in many public organizations has put a question mark on that The desire for profit has overshadowed the organization to the extent of parading unqualified and unmotivated staff, which lack regular training, coaching and empowerment leading to low or reduced productivity. Organizations should adopt the view that contributions are role related and not position related. Specialized skills and competencies have to be developed and stress is to be given on the development aspect (Falade, 2001). Not understanding the way people work interact in an organization results in usually an expensive failure, with employee reactions ranging from simple misunderstandings (resultingin lost productivity or damage) to outright sabotage and organized labour actions. Because of this, the best way to bring about change and productivity is to develop the people who will be affected by it, and the people whose support you need to implement it.