ABSTRACT
The importance of human capital as a key resource and driver of organizational effectiveness cannot be overemphasized. The study investigated the effect of human capital development strategies on organizational effectiveness of manufacturing firms in South Eastern Nigeria. The specific objectives are to; examine the effect of human capital investment on organizational effectiveness, investigate the effect of career development on organizational effectiveness, ascertain the effect of talent management on organizational effectiveness, assess the effect of knowledge management on organizational effectiveness, determine the effect of competency based assessment on organizational effectiveness, and determine the effect of employee engagement on organizational effectiveness of selected manufacturing firms in South Eastern Nigeria. The study adopted survey research design and used both primary and secondary sources of data. The population of the study comprises of 944 employees of the selected manufacturing firms and Taro Yamane formula was used to arrive at a sample size of 280. The study utilized descriptive and inferential statistics in the analysis of collected data and used regression analytical technique to determine the effect of human capital development strategies on organizational effectiveness of manufacturing firms. The results of analyses revealed that human capital investment has a positive statistically significant effect on organizational effectiveness of manufacturing firms at 5% level of significance (coefficient value 0.826>0.000 the p-value), career development has a positive statistically significant effect on organizational effectiveness at 5% level of significance (coefficient value 0.669>0.020 the p-value), talent management has a positive statistically significant effect on organizational effectiveness at 5% level of significance (coefficient value 0.621>0.004 the p-value), knowledge management has a positive statistically significant effect on organizational effectiveness at 5% level of significance (coefficient value 0.719>0.044 the p-value), competency based assessment has a positive statistically significant effect on organizational effectiveness at 5% level of significance (coefficient value 0.922>0.000 the p-value ), and employee engagement has a positive statistically significant effect on organizational effectiveness of manufacturing firms at 5% level of significance (coefficient value 0.657>0.000 the p-value). Therefore, based on the findings, the study concluded that human capital development strategies have positive significant effect on organizational effectiveness of manufacturing firms in South Eastern Nigeria. The study recommends that organizations should employ best strategies of human capital development as discovered by this study to enhance the knowledge, skills and abilities (KSA) of employees to enable higher productivity.
TABLE OF CONTENTS
Title i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
Table
of Contents vi
List
of Tables ix
Abstract xi
CHAPTER 1: INTRODUCTION
1.1 Background of
the Study 1
1.2 Statement of the Problem 10
1.3 Objectives of the Study 14
1.4 Research Questions 15
1.5 Research Hypotheses 15
1.6 Significance of the Study 16
1.7 Scope of the Study 17
1.8 Limitations of the Study 18
1.9 Profile of Selected Quoted Manufacturing Firms 18
1.10
Operational Definition of Terms 21
CHAPTER 2: REVIEW
OF RELATED LITERATURE
2.1
Conceptual Framework 23
2.1.1
Human capital 23
2.1.2
Definition of human capital and firm performance 27
2.1.3 Human resource development 28
2.1.4
Competency based assessment 29
2.1.5
Career development 31
2.1.6 Talent management 31
2.1.7
Employee engagement 33
2.1.8
Knowledge management 35
2.1.9
Effects and role of education and training in building human capital 36
2.1.10
Types of employee training 43
2.1.11
HRD practices, operational performance, and financial performance 43
2.1.12
Strategic management approaches to human capital development 45
2.1.13 Organizational effectiveness 48
2.1.14
Organizational effectiveness approaches 50
2.2
Theoretical Framework 52
2.2.1 Human
Capital Theory 52
2.2.2
Resource based view theory 54
2.2.3
Social capital theory 55
2.2.4
Evolutionary growth theory 56
2.2.5 Skill
acquisition theory 56
2.2.6
Sustainable resource theory 57
2.3 Empirical Review 58
2.4 Gap in Literature 76
2.5 Summary of Reviewed Related Literature 77
CHAPTER 3: METHODOLOGY
3.1 Research Design 83
3.2 Sources of Data 83
3.3 Area of the Study 84
3.4 Population of
the Study 84
3.5 Sample Size Determination 85
3.6 Sampling
Technique 86
3.7 Description of
the Research Instrument 87
3.8 Validity of the
Research Instrument 87
3.9 Reliability of the Research Instrument 87
3.10 Method of Data Analysis 88
3.10.1 Model specification 90
3.10.2
Multiple regression analysis 90
CHAPTER 4:
DATA PRESENTATION AND ANALYSIS
4.1 Data
Presentation 92
4.1.1
Socio-economic characteristics of the respondents 93
4.2 Data
Analysis 96
4.3
Hypotheses Testing 107
4.4
Discussion of Findings 116
CHAPTER 5:
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Summary
of Findings 120
5.2
Conclusion 123
5.3
Recommendations 124
5.4
Contribution to Knowledge 125
References 126
Appendices
LIST OF TABLE
2.1: Summary of Empirical Literatures 78
3.1: Population of the Study 84
3.2: Sample Size of the Study 86
4.1: Return Rate of Questionnaire 92
4.2: Gender of the Respondents 93
4.3: Marital Status of the Respondents 93
4.4: Positions/Levels of the Respondents 94
4.5: Educational Qualification of
Respondents 94
4.6: Length of Service of Respondents 95
4.7: Human Capital Investment and
Organizational Effectiveness 96
4.8: Career Management and Organizational
Effectiveness 98
4.9: Talent Management and Organizational
Effectiveness 100
4.10: Knowledge Management and
Organizational Effectiveness 102
4.11: Competency Based Assessment and
Organizational Effectiveness 104
4.12: Employee Engagement and
Organizational Effectiveness 106
4.13: Regression Result Model Summary 108
4.14: Coefficient of Human Capital
Investment and Organizational Effectiveness 110
4.15: Coefficient of Career Management and
Organizational Effectiveness 111
4.16: Coefficient of Talent Management and
Organizational Effectiveness 112
4.17: Coefficient of Knowledge Management
and Organizational Effectiveness 113
4.18: Coefficient of Competency Based
Assessment and Organizational Effectiveness
114
4.19: Coefficient of Employee Engagement
and Organizational Effectiveness 115
4.20: ANOVA Result 116
CHAPTER 1
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
Human capital stands among the most
valuable and important assets of an organization. It helps the company to grow
and achieve its goals more effectively and efficiently. So one major area of
concern for a firm is to make investments in human capital; human capital
investments is basically a process of developing employees by providing them
education or training or both. Education usually includes enrolment of employees
for formal education in universities and colleges. Education is used to develop
employee’s skills in areas such as finance, accounting or production. Training
however, is conducted by supervisors working on the job with employees by
teaching them specific functions and providing them knowledge to complete a
certain task more effectively and efficiently (Annakis, Dass & Isa, 2014).
Human
capital includes education, relevant employment experience and skill. It also
includes family background, and the direct presence of the owner(s)/partners in
the business. Samad (2012) and Abel and Deitz (2012) define human capital as
the knowledge, skills, and abilities of employees.
Organizations use human resource (HR)
practices as critical strategic tools for promoting favorable behavior among
employees and leveraging their knowledge, skills, and abilities, which should
increase productivity and performance (Bartlett, 2001; Bates & Chen, 2004;
Clardy, 2008; Katou, 2009). For this reason, human resource development (HRD)
or training and development of employees has been acknowledged as the most
foundational activity of the HR system (Dhamodharan, Daniel, & Ambuli,
2010; Gubbins, Garavan, Hogan, & Woodlock, 2006; Scott & Meyer, 1991).
Paradise and Patel (2009) estimated that American companies spend approximately
$134 billion US dollars annually on the training and development of their
employees. Unfortunately, this enormous capital spending is not always
translated into improved individual and organizational performance
(Brinkerhoff, 1997; Gubbins et al.,
2006).
Furthermore, we explore the mediating
processes or reasons that HRD affects organizational performance. In explaining
the effects of HR practices on firm performance, scholars have identified three
mediating mechanisms: “(a) increasing employees’ knowledge, skills, and
abilities (KSAs), (b) empowering employees to act, and (c) motivating them to
do so” (Abel & Deitz, 2012). Employee KSAs and motivation were also
identified as the main reasons for the HRD-performance relationship (Tracey,
Hinkin, Tannenbaum, & Mathieu, 2001). This is consistent with institutional
theory in that micro-level processes involving employee cognition and attitudes
mediate the relationship between organization-level antecedents and institutional
outcomes (Bowen & Ostroff, 2004; Scott, 1995).
Human Resource must be
invested in and leveraged efficiently in order for it to generate returns, for
the individuals involved as well as an economy as a whole. World Economic Forum
reported that the global economy is entering an era of talent scarcity that, if
left unaddressed, will hinder economic growth worldwide (World Economic Forum,
2013), As we move to knowledge based economy, knowledge, skills and
competencies constitutes a vital asset in supporting economic growth and
reducing social inequality in developing countries. Human capital investment is
one of the key factors in combating high and persistent unemployment and
problems of low pay and poverty (Ogunade, 2011). The concept of human capital
has played an important role in the neoclassical analysis of labour markets; this
is particularly because of the role it plays in wage determination. It has also
come to dominate the economic analysis of education. The analysis of human
capital views education as one of the routes through which human capital is
acquired. The basis of human capital model is based on the premise that
additional non-compulsory education (schooling) increases the productivity of
labour in a perfectly competitive market (Omolo, 2013).
As
the world is becoming more competitive, organizations are striving to gain
competitive advantage at all costs and are turning to innovation sources
through strategic human capital practices (Dobrai and Farkas, 2015). The
changing business environment in a knowledge-based economy has also made the
adoption of strategic human capital practices imperative for competitive
advantage and for the success of organizations. Several studies have found a
positive influence between strategic human capital practices and organization
performance (Becker and Huselid, 2001; Chang and Kuo, 2002; Jackson, Ones, and Dilchert, 2012;
Paauwe and Boselie, 2008; Sang, 2005). Shah (2016) and Otoo and Mishra (2018)
observed that organizations with good strategic human capital practices are
able to not only retain its talented employees, but also able to attract the
best employees from the labour market. Strategic human capital practices are
very crucial to the attainment of organizational goals (Bontis and Serenko,
2009). Managerial skills are considered to be an important element of human
capital and the most important source of sustainable competitive advantage
(Ashour and Bontis, 2004). Thus, organizations which are results oriented must
put in place good strategic human capital practices (Petrovsky, 2009; Smith et
al., 2004).
Human capital development is one of the most
important requirements to ensure the sustenance and improvement of an economy
either at macro or micro level. Human capital development is a continuous
process from childhood to old age. It is also a must for any society or
enterprise that wishes to survive under the complex challenges of the dynamic
world. For the individual, it should be a life-long process because of the
continuously changing environment to which one must also continuously adapt to.
Such development enables the persons involved to move vertically or laterally
in the economic and social environment, (Ibok and Ibanga, 2014).
Human capital is one of
the imperative prevailing structures in the field of scholarly capital.
Illustrious and O'Donnell (2017) declare that human plan of action capital is
an extremely critical element of significant worth asset creation. It is the
measurement of scholarly capital which manages the human information and its
experience. The employees offer organizations with experience and mastery,
instructive capabilities and word related skills. Employee information and
abilities are the huge underlying foundations of advancement (Wang & Chang,
(2015).
In other to contend in the
present aggressive condition organization need to enhance capability of their
employees. Human assets development manages the arrangement of learning,
development and training prospect keeping in mind the end goal to enhance viability
of people, group and organization performance. Human asset development
satisfies the requirements of organization by giving breakthrough information
to employees (Torraco and Swanson, 2015). Alongside addressing organizational
necessities, human asset development is considered in charge of anticipating of
the long haul business related learning limit (Watkins, 2012), the principle
point of human asset development is to prepare the employees, build up their
aptitudes in a way that assistance to accomplish most ideal outcomes. Human
asset development clarifies the competency development in individuals and
arrangement of conditions (through open approach, software engineers and
different mediations) to enable individuals to apply these abilities for their
own advantage for their organization (Zahid, Sacreta & Manisha, 2015).
Since the early 21st century, the
global industrial sector has constantly grown well mainly due to globalization,
technological advancements, forceful competition and increasing trends of smart
phone adoption. Nigerian industrial sector has advanced too largely because of
trade and investment liberalization, constructive policies and resilient
competition (Fareed, Isa & Noor, 2016). Additionally, government of Nigeria
has advanced the industrial sector by providing tax reliefs, and reducing
import duties and regulatory charges (Imtiaz, Khan & Shakir, 2015). However,
due to ‘intense competition, structural change within organizations,
advancements in technologies and a speedy growth in information and knowledge’,
organizations must act and adjust quickly to these changing environments with the
purpose of keeping up with the competition (Schürmann & Beausaert, 2016).
Globalization and technological advancements are enthralling organizations to
advance fresh strategic directions. In return, employees are enforced to be
prepared for accepting new roles and responsibilities (Hassan, 2007). Though,
it requires higher level of human capital in the organization to perform effectively
and to sustain long-term competitive advantage for a firm (Fareed et al., 2016). In such highly competitive
global environment, it is really important for organizations to expand
competitive advantage through proficient use of human resources (Marimuthu,
Arokiasamy, & Ismail, 2009).
The prominence of high quality human resources
in the growth of the manufacturing industry can also be seen evidently in the
view of Fareed et al. (2016) who
emphasized that capable and skilful human resources can assist organizations to
hold competitive advantage and also by Sikora et al. (2016) who underlined that organizations compete through the
quality of their people. Accordingly, Wang and Chen (2013) proposed that firms
with greater innovative capabilities would be more successful in responding to
a changing environment and improving their competitiveness. Whereas, human
resource management (HRM) practitioners and researchers believe that capable
human resource can contribute to organizational effectiveness (Jackson et al., 2014) and also to competitive
advantage through the quality of the knowledge and skills which they do have as
a result of human capital development (HCD) (Sikora et al., 2016). This comprehension added into the emergence and
growth of the strategic human resource management (SHRM) perspective. Although
it is recognized in the SHRM literature that an association exists between
human capital development and employees’ productivity, the findings of numerous
research studies vary considerably across countries and across times (Malaolu
& Ogbuabor, 2013).
Zadeha and Ghahremanib, (2016) gave
emphasis to any strategy for improving workforce productivity to drive higher
value for the firms to become an important focus. Further, they contended that
firms seek to optimize their workforce through comprehensive human capital
development programs not only to achieve business goals but most important is
for a long term survival and sustainability. To accomplish this undertaking,
firms need to invest resources to ensure that employees have the necessary
knowledge, skills and competencies they need to work effectively in a rapidly
changing and complex environment. Additionally, Chambers (2016) proposed that
there is an indication of the need of alternatives for causal inference due to
the limited number of experimental available studies in human resource
development (HRD). Moreover, due to the continued growth of the global services
sector, it is essential that service firms have a greater understanding of the
implementation of HRD practices in different cultures and how HRD relates to
service quality (Galperin & Lituchy, 2014).
Human capital development is the
process of helping people to acquire expertise. In an organizational context,
it is the process by which organizations help their employees in a continuous
and planned way in order to: acquire or sharpen the abilities required to
perform various functions associated with their present or expected future
roles; develop their general skills as individuals, discover and utilize their
inner potential for their own and/or organizational development purposes;
develop an organizational culture in which supervisor subordinate
relationships, teamwork and collaboration among sub-units are strong and
contribute to the professional well-being, motivation, and pride of employees
(Kareem, 2019).
A
research carried out by the Chartered Institute of Personnel Management of
Nigeria (CIPM, 2016), which was reported at the 2017 annual conference held in
Abuja, Nigeria, showed that employees’ performances in the health sector of
Nigeria economy is on the low side when compared with similar sector in most
developing nations. The report revealed that the increasing low performance of
employees in Nigeria hospitals has imposed the current sad statistics of high
numbers of Nigerians who seek medical care outside Nigerian shores (which would
have been avoided).
Though, Human capital development has been
known as an important factor for the enhancement of employees’ capabilities to
attain better performances, the Nigeria manufacturing firms have not placed
much emphasis on employees’ performance. This is evident in the face of the
present challenge for suitable human capital development procedures for the
enhancement of employees’ performance (Paul et
al., 2016).
The issues concerning employees'
performances in Nigeria health sector has become a worrisome phenomenon among
health management practitioners as Nigeria loses a lot of money due to the fact
that her citizens travel abroad for treatment of different kinds of health
condition. The situation is made worst in that while much is known on how human
capital development has been used to improved employees performance in the
other industry, as shown in studies (Harvey, 2002; Njoku & Onyegbula, 2017;
Ekperiware et al., 2017; Obialor,
2017). There is still limited literature on human capital development in
Nigeria health sector specifically Federal Medical Hospitals in Nigeria.
Studies on issues associated with human capital development in Nigeria Federal
Medical Hospitals are rarely found.
Hence, organizations need to
understand the importance of human capital development in order to enhance
employees’ satisfaction through improvement in performance. Although, there is
a broad assumption that human capital development has positive effect on organizational
performance the notion of human capital development remains largely unrealizable.
Human Capital Management (HCM) is how a
person can carry out work using the skills and knowledge acquired in order to
add value to the country’s economy. HCM deals with analyzing the obtained data
and report it so as to give direction of importance to management of people in
order to have strategic investment in the firm and to be able to make better
decisions. Management regards HCM as an asset and uses Metric as a tool of
measure to guide them so as to achieve a competitive advantage by investing
strategically in these human assets through developing them giving them more
work so as not lose them (retain them) making use of employee to be useful and
productive in the firm, managing talents and offering more learning programmes
(Al-aldaeja, 2016).
Human
resource development is a relatively new area of professional practice and
academic study. Over the past two decades, human resource development has
become the fastest growing area of management development, due to the great
interest of organizations in the face of intense competition and changes in the
business environment (Kareem, 2017). HRD has advanced beyond the narrow view of
simply training and has evolved into a more complete approach to learning and
developing knowledge at the individual and organizational level (Mittal, 2013).
Leonard Nadler (1969) was the first to use the term HRD and he described it as
a group of related activities completed in a given time period to produce a
behavioral change. HRD can be defined as the process of developing and/or
unleashing human expertise through organization development and personnel
training and development for the purposes of improving performance (Swanson,
2001). The twenty-first-century challenges such as globalization, technology,
and demographic changes have forced the organizations to strive constantly
searching for innovative ways to achieving the superior results in terms of
efficiency and effectiveness and improving competitiveness with current
employees. As a result, the concept of human resource development (HRD) has
emerged as a strategy to improve the competence of the employees and for
enhancement of organizational effectiveness. The literature and previous
studies (Bokeno, 2011; Swanson & Holton, 2009) have confirmed that the
success of an organization is extremely based on the skills, knowledge, and
experience of its employees, which is a basic product of human resource
development capability of that particular organization. Simonds and Pederson
(2006) defined HRD as a combination of structured and unstructured learning and
performance-based activities which develop individual and organizational
competency, capability and capacity to cope with and successfully manage
change. Federman (2006) stated that the concept of organizational effectiveness
is concerned with issues such as the ability of an organization to access and
optimal utilization of resources and consequently achieve its goals. The
integrated use of HRD practices such as training and development,
organizational development, talent development, and career development play key
role in create new competencies, capabilities, and attitude that influence on
employee’s performance to achieve organizational goals (Abu, 2016).
Nonetheless, this research gap needs
to be filled up. Consequently, the aim of this research is to examine the
correlation of high performance work system and organizational culture with
human capital development. It also studies the moderating role of
organizational culture in the correlation of high performance work system and
human capital development.
1.2
STATEMENT OF THE PROBLEM
In every organization, ‘‘PEOPLE’’ or what
most organizations refer to as employees or staff or workforce is ‘key’’ to organizational
effectiveness. No organization can achieve its set objectives and goals without
qualified and competent employees or workforce. The employees are managed in
every organization by those employed as leaders to ensure that their potentials
are harnessed effectively towards achieving the goals and objectives of their organizations.
People Management role covers all the management decisions and actions that
influence every employee, not just as a job holder, but as a family member.
People Management function is not an exclusive responsibility of management
team members; the line managers and supervisors also have key roles to play in
managing people at work (CIPM, 2017).
The
productivity of workers is falling resulting to poor and low performance of the
organization. This is because most firms fail to send their employees on
training due to lack of funds that is involved in embarking on employees
training. Also most firms believe that workers are dubious in nature, after
returning from training desert their firms to join other firms. For instance
most Nigerian organization do not give their employee effective and efficient
training, considering the cost implication of sending employees on quality
training which result into low productivity. Nevertheless, the issues of human
capital development are not taken seriously by many organizations, this is
because of the failure to acknowledge the fact that business environment has
become very dynamic and as such only those organizations with the right
informational need can succeed with the right technological manpower to succeed
in modern times. Failure to take training and development especially in modern
organization will lead to stifling growth, lack of productivity and inability
to compete favourably in the industry.
One
constant variable that is common to every organization is the desire for high
performance through her employees. This is expedient for the survival and
sustainability of business organizations in the wake of technological
innovations and for them to optimize their objectives which ranges from
maximization of benefits/profits to cost minimization. Therefore, it has been
academically debated that for this objective to be achieved, organizations must
consider vital human capital development elements such as motivation, education
level and experience level among others. That is to say that, organizations
could not achieve high performance without paying adequate attention to these
elements of human capital. No doubt, many organizations in Nigeria and across
the globe consider such elements to be very important to gain competitive
advantage.
World Bank (1995) study based on the
assessments of 192 countries conclude that global wealth constitutes of 16% of
physical capital, 20% of natural capital and 64% attributed to human and social
capital.
Chen, Chang and Hwang (2005) found
empirical support for the hypothesis that the companies having greater human
capital efficiencies have higher market to book value and also that
intellectual capital efficiency affect the financial performance of the
companies. Hurwitz, Lines, Montogomery and Schmidt (2002) concluded that vital
role has been played by human capital for the driving intangible performance
and stock return. Switzer and Huang (2007) finding suggests that variances in
fund performance is attributed by managerial human capital characteristics.
Bart (2001) analyzed data set of 559 organization and found significant
correlation between firm mission statement and human intellectual capital,
ultimately effect the performance of the firm. Huselid, Jackson and schuler
(1997) analyzed 293 U.S based firm to measure the impact of human resource
manger on human resource effectiveness and its impact on performance of the
firm. Study concluded that human resource effectiveness is associated with the
capabilities of the employees also having a relationship with productivity,
cash flow and firm market value. Barrett & O’Connell (2001) used data
obtained from survey of Ireland enterprises to estimate the impact of training
on productivity of firm. Result of the study showed a statistically significant
positive correlation between training and productivity of the firm. Collins
& clark (2003) study investigated the relationship of network building HR
practices and firm performance. It was found that the relation is mediated
through top management social networks.
Guest, Michie, Conway and Sheehan (2003)
examined 366 UK companies using subjective and objective measure of performance
to investigate the relationship of HRM and performance. It was found that by
using objective measure of performance turnover and financial performance showed
association with HRM. HRM have no higher association with productivity, using
subjective measure HRM have an association with productivity and financial
performance. Huselid (1995) study linkage between HRM practices, turn over,
productivity and financial performance of the firms. It was found that high
performance work practices have an economically and statistically significant
impact on productivity, turnover and financial performance. Patterson, West,
Lawthom and Nickell (1998) concluded that HR practices contribute 18%, 19%
variation in companies productivity, financial performance respectively. HR
practices are the main reason for variation in comparison to Strategy, R&D,
Quality and technology. Molina & Ortega (2002) analyzed 405 North American firms
to investigate the relationship of Human Capital Resource policies and firm
performance. It was concluded that effective human capital management enhance
employees satisfaction resulted in customer loyalty which, in turn enhance the
financial performance.
Also the subject has become a source of
debate among scholars and researchers having different and conflicting views on
the subject, with no conclusive evidence on how HCD strategies affect
organizational efficiency researchers such as Hong Chu and Chan (2010) and Anga
and Brunello (2009) hold the view that HCD strategies negatively influence
organizational efficiency.
The effect of HCD strategies on
organizational efficiency has not been successfully proven in Nigeria, because
there appears to be a lack of consensus among scholars who studied the subject
constitutes a problem and lacuna. The aim of this study thus is to examine how
these elements impacts on organizational effectiveness especially in the
manufacturing sector of the economy.
1.3
OBJECTIVES OF THE STUDY
The major objective of this study is to
investigate the effect of human capital development strategies on
organizational effectiveness of selected manufacturing firms in South Eastern
Nigeria. The specific objectives are as follows; to
i.
Examine the effect of
human capital investment on organizational effectiveness of manufacturing
firms.
ii.
Investigate the effect of
career development/pool on organizational efficiency of manufacturing firms.
iii.
Ascertain the influence
of talent management on organizational performance of manufacturing firms.
iv.
Assess the effect of
knowledge management on organizational market share of manufacturing firms.
v.
Determine the effect of
competency based assessment on organizational performance of manufacturing
firms.
vi.
Determine the effect of
employee engagement on organizational satisfaction of manufacturing firms.
1.4
RESEARCH QUESTIONS
At the end of this study, the research is
expected to have answered the following questions justifiably:
i.
How does human capital
investment affect organizational effectiveness of manufacturing firms?
ii.
In what ways does career
development/pool affect organizational efficiency of manufacturing firms?
iii.
To what extent does
talent management affect organizational performance of manufacturing firms?
iv.
What is the extent of the
effect of knowledge management on the organizational market share of
manufacturing firms?
v.
How far has competency
based assessment influenced organizational performance of manufacturing firms?
vi.
How does employee
engagement influence organizational satisfaction of manufacturing firms?
1.5
RESEARCH HYPOTHESES
The following hypothesis is formulated and
will be tested in order to achieve the objectives of this study:
i.
H01: Human capital investment does not have any
significant effect on organizational effectiveness of manufacturing firms.
ii.
H02: Career development/pool does not have any
significant effect on organizational efficiency of manufacturing firms.
iii.
H03: Talent management does not any significant
effect on organizational performance of manufacturing firms.
iv.
H04: There is no significant relationship between
knowledge management and organizational market share of manufacturing firms.
v.
H05: There is no significant relationship between competences
based assessment and organizational performance of manufacturing firms.
vi.
H06: Employee
engagement does not have any significant effect on organizational satisfaction
of manufacturing firms.
1.6
SIGNIFICANCE OF THE STUDY
Previous literature has demonstrated that
human capital development plays an important role in organizational
performance. It goes a long way without over emphasizing that human capital
development contributes greatly to the attainment of organizational objective
of manufacturing firms. Therefore, it is important to understand how human
capital development strategies influence the organizational effectiveness of
manufacturing firms.
The main significance of this study is to
provide empirical evidence on the effect of human capital development
strategies which include human capital investment, career development, talent
management, knowledge management, competence based assessment and employee
engagement on the organizational effectiveness of manufacturing firms. Hence,
this study is of significance to the following parties:
Management/employers:
The findings of the study will provide managers with the required knowledge and
expertise in formulating appropriate HCD Strategies to adopt in order to
recruit and retain highly motivated and satisfied employees that will employ
the requisite knowledge and skills that will ensure organizational efficiency
and survival of the organization.
Stakeholders:
The findings of the study, if assessed
will be practically useful in providing vital insights into the various HCD
Strategies adopted by organization and the most appropriate to be employed to
ensure organizational efficiency.
Government/labour
market regulators: The government will find the outcome of the
study useful as it may serve as a veritable material and guide in formulating
labour developments law, which in-turn will promote and ensure stability in
work places with the country.
The study on the other hand will tend to
provide the various labour policy makers and regulatory agencies, regulatory
basis to strengthen the existing HCD Strategies so as to ensure smooth
operations and labour harmony.
Academia:
If the outcome of this study is accessed by researchers, it will in no small
measure expand the growing list of literature on the subject and serve as a
significant point of reference for literature and research gaps.
1.7
SCOPE OF THE STUDY
The
study examined the effect of various HCD Strategies on organization
effectiveness of manufacturing firms in the South East Nigeria. The scope of study is categorized as follows:
Unit
Scope: The study was limited to 3 selected quoted manufacturing firms.
Content
Scope: This study did not incorporate all the human capital development
strategies, but focused on 6 variables which were influenced or based on the
existing literature or theories evaluated.
Geographical
Scope: This study was limited to the study of quoted manufacturing firms
operating in the South Eastern part of Nigeria.
Time
Scope: Furthermore, the choice of conducting the study in the year 2020 was
influenced by the research design adopted, Survey Design and to ensure that
recent data were collected to reflect current realities.
1.8
LIMITATIONS OF THE STUDY
As
part of the research experience by researcher all over globe certain limitation
hinder effective collection of materials.
- Time constraint:
The time required for this work is not enough; this is because of the limited
time available so as to meet up all the responsibilities.
- Financial
constraint: The finance needed
to carry out this work is quite enormous and is really difficult for the
student. This will pose great limitation to the successful completion of
this work.
- Scarcity of
materials: There is generally
non-availability and adequate literature on the research topic. Hence the
researcher finds it cumbersome.
1.9 PROFILE OF
SELECTED QUOTED MANUFACTURING FIRMS
NIGERIAN BOTTLING COMPANY PLC
Nigerian bottling company is a beverage
firm that is the franchise bottler of Coca-Cola in Nigeria. The firm has also
owned the Nigerian franchise to market Fanta, Sprite, Schweppes, Ginger Ale,
Limca, Krest, Parle Soda and Five Alive. The firm was founded by the Leventis
family in 1951 and his now part of Coca-Cola Hellenic Bottling Company.
Nigerian Bottling Company also known as
NBC, started production in 1953 at the basement facilities of the Mainland
Hotel, owned by Leventis group producing Coke licensed from Coca Cola Company.
In 1960, NBC introduced Fanta orange drink into the market and later Sprite
lemon drink (). The firm became a public company in 1972.
NBC has eleven bottling facilities in
Nigeria which provides facilities in Nigeria which provide supplies to various
depots for onward distribution to wholesalers or dealers. Over the years, NBC
has established or acquired factories producing raw materials in its supply
chain.
GUINNESS NIGERIA PLC
Guinness Nigeria plc is home of the first
Guinness brewery outside of the British Isles. The first bottle of Guinness
Foreign Extra Stout in Nigeria was brewed on the 30th of November
1963, three years after Nigeria’s independence – opening opportunities for the
overseas Guinness Foreign Extra Stout brewing in other parts of the world. Two
years after, in 1965 Guinness Nigeria was listed on the Nigerian Stock
Exchange.
Steady growth in markets for Guinness
Stout and Harp Lager during the next 30 years prompted the building of three
more major breweries in Nigeria. In 1974, the company built a second brewery in
Benin, where it produced Harp lager beer. This facility was later expanded to
accommodate a second stout brewery, commissioned in 1978. In 1982, a fourth
Guinness brewery was built in Ogba, Lagos to brew Harp Premium Lager beer. This
site too, was expanded to include Guinness Stout. In 2011, the Benin and Ogba
breweries were expanded to further increase capacity and meet the growing
demand for Guinness Nigeria.
NIGERIAN
BREWERIES PLC
Nigerian
Breweries Plc, is the pioneer and largest brewery company in Nigeria. It serves
the Nigerian market and exports to other parts of West Africa.
The
Nigerian Breweries was incorporated in 1946. Its first bottle of beer, Star
Lager, rolled off the bottling lines of its Lagos brewery in June 1949. The
brewery commissioned other breweries including Aba Brewery in 1982. In
September 1993, the company acquired its fifth brewery in Enugu, and in October
2003, its sixth brewery, sited at Ameke Enugu.
Ama Brewery began brewing on the 22 March 2003 and at 3 million hectoliters
is the largest brewery in Nigeria. Operations at Enugu brewery were
discontinued in 2004, while the company acquired a malting plant in Aba in
2008.
In
December 31st 2014, Nigerian Breweries Plc completed the merger with
Consolidated Breweries Plc which added the three breweries in Ijebu-ode,
Awo-Omama and Makurdi. In November 2015, Nigerian Breweries launched the
international brand Strongbow cider which makes it the first in Nigeria to
produce and bottle the cider category beverage.
Nigerian
Breweries Plc now has ten operational breweries from which its products are
distributed to all parts of Nigeria, in addition to the malting plants in Aba
and Kaduna. The Nigerian Breweries owns
brands like Heineken, Star Lagre, Climax Energy Drink, Goldberg, 33 Export,
Legend Extra Stout, Amstel Malta, Maltina, Malta Gold, Maltex, Hi Malt,
Strongbow Apple Ciders, and Fayrouz.
1.10 OPERATIONAL DEFINITION OF TERMS
Employees: employees or
people most often in organizations referred to as staff or workforce is the
most important factor of production and is key to organizational effectiveness.
An organization that possesses employees with the right knowledge, skills and
abilities will be able to achieve its set objectives.
Labour Market:
is a market where knowledge, skills, abilities and human work experiences are
presented in exchange for wages and the meeting of other work related goals
such as socialization, learning, career and economic advancement, life balance,
social relevance and so forth.
Human Resource Management:
refers to all management decisions and actions that affect the nature and
relationship between the organization and its employees.
Competence Based Assessment:
is a scientific approach used to define and understand the knowledge, skills
and attitude required to perform a job effectively.
Career Development:
it is an on-going acquisition or refinement of skills and knowledge, including
job mastery and professional development, coupled with career planning
activities.
Talent Management:
is the automated end-to-end process of planning, recruiting, developing,
managing and compensating employees throughout the organization.
Employee Engagement:
is the emotional commitment the employees have to the organization and its
goals, resulting in the use of discretionary effort. Because they care more,
they are more productive, give better service, and even stay in the job longer.
Knowledge Management:
is any process or practice of creating, acquiring, capturing, sharing and using
knowledge, whenever it resides to enhance learning and performance in
organization.
Employee Retention:
is a systematic effort by employers to create and foster an environment that
encourages current employees to remain employed, by having policies and
practices in place that address their diverse needs.
Human Capital Investments:
could be referred to as a deliberate and structured effort geared towards
equipping employees with the right knowledge, skills and attitude needed to
make him more effective and efficient in the organization both for present and
future roles.
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