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EFFECT OF
HUMAN CAPITAL DEVELOPMENT ON ORGANIZATIONAL PERFORMANCE
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Increasing
productivity in the public sector to match the levels of the private sector has
been the call of the Civil Services Commission in Nigeria. According to Michie
& Oughton (2003), research suggests that closing the productivity gap
between the private and public sectors will require increased investment in
research and development, capital and people, improved education and training,
and a modernised productive infrastructure. In a bid to improving productivity,
Michie & Oughton (2003) further suggest that there should be a continuous
improvement in management practice, corporate governance and organisational
design. Michie, Conway & Sheenan (2003) also point out that a major
challenge for modern organisations is the urge for increasing productivity and
achieving a competitive advantage
Due to the
high pace of change and economic instabilities in some markets, the
organization of the workforce level possesses a crucial role in many businesses
today. This especially true in the manufacturing sector since the "human
component of production" is the most important and costly part of the
supply chain The volatility of demand
that is prevailing in some sectors increases the importance of having a good
human capital planning strategy.
Organizations
are under increasing pressure to find ways to implement their strategies in a
rapidly changing business
environment in which planning
lifecycles tend shrink to reduce the time 'to market' intervals. At the same
time, organizations are putting more and more emphasis on aligning the organization and people in their attempt to
achieve business goals. Human capital development is usually seen as an
essential feature of an ideal type model of human resource management, even if
it does not always appear to be a given high priority in practice
The issue of
effective planning for people was brought up long before the advent of human
resources management. However, there has been little research evidence of its
increased use or of its success. Hassan (2007), who argues that the developing
business environment forces organizations to plan effectively for their human
resources, the rapid changes in the business environment, also makes it
increasingly difficult for organization.
1.2 STATEMENT OF THE PROBLEM
Human
capital development in Nigeria has been hindered with different problems that
prevent employee development and growth and thus prevent overall growth to the
productivity of an organization. Lack of careful human capital planning over
the years by management has been identified by several researchers as the bane
of most organizational failure for low productivity. Therefore this research
thesis is to ensure that management have proper personnel in place to help
ensure that the organization attain maximum productivity possible and thereby
reducing wastage of resources. Recently, proper human capital development and
employee career growth through adequate training, motivation and management
structure has been identified as a panacea to the low productivity witness by
the most organization. So this research work aim to carefully analyzed the
effect of human capital development on the productivity of the manufacturing
industry especially the Nigeria Flour Mills and also to measure the
effect/correlation between training, motivation and career development on an
organizational productivity cum level of contribution of employee.
1.3 OBJECTIVES OF THE STUDY
The broad
objective of this research is to examine the effects of human capital
development on employee productivity in the manufacturing industry, a study of
Nigeria Flour Mills Plc. The specific objectives for the study are;
1. To examine the relationship between
employee training & development and employee career growth.
2. To evaluate the effect of employee
orientation on employee satisfaction.
1.4 RESEARCH QUESTIONS
1. Is there a significant relationship
between employee training & development and employee career growth?
2. Does employee orientation have any
significant effect on employee satisfaction?
1.5 RESEARCH HYPOTHESES
Hypothesis I
Ho: There is no significant relationship between
employee training & development and employee career growth
Hi: There is a significant relationship between
training & development and employee career growth
Hypothesis
II
Ho: Employee orientation does not have any
significant effect on employee satisfaction
H1: Employee orientation has a significant effect
on employee satisfaction
1.6
LIMITATION OF THE STUDY
To limit the
scope of our research was of major concern for us in the beginning of our work
in order to arrive at some kind of starting point, on which we were able to
build a realistic and feasible study. We have limited our study to include
long-term HRP, career development and planning, motivation and productivity.
Our study will relies heavily on empirical data, due to the specified timeframe
and economic factors; it was not realistic to design our research to include
visits to other or Organizations except Nigerian Flour Mills. However, most
empirical data will be collected from staff of Nigerian Flour Mills who are
career motivated and works in factory.
1.7 SCOPE OF THE STUDY
The study is
aimed at studying the Effect of human capital development on productivity a
case study of Nigerian Flour Mills However, due to proximity and size of the
case study, specifically, some department, in
Nigerian Flour Mills specifically Human Resource Department, production
Department and some Management Staff member's responses were carefully analyzed
through a well structured questionnaire. However, the research study is
delimited with time, geographical implications, finance and other phenomenon
that affect scope of research report.
1.8 SIGNIFICANCE OF THE STUDY
This study
could be relevant to the performance and importance of human capital
development in the manufacturing industry. The study could also be relevant to
other industry as it is an aid to enhance economic growth, planning and
development on manpower issues. There is the need now than ever to re-discover
the weaknesses and the strengths of employee in determining the level of
motivating the employee may desire. The study will throw more light into the
practice, managerial procedure and control of the human capital development, It
would assist management to create a situation where the employee can grow
likewise the organization can be satisfied with each other as both cannot exist
without the other.
1.9 OPERATIONALIZATION OF VARIABLES
This
involves expressing the relationship between of human capital development
and employee productivity in
mathematical form.
In
specifying the models, the independent variable 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)
EP = a + bi
HCD……………………………………. (2)
Model 1:
ECG =
a + bi TD
Model 2:
ES = a + bi EO
Where:
EP = Employee Productivity
HCD =
Human Capital Development
ES =
Employee Satisfaction
TD =
Training & Development
EO = Employee orientation
ECG =
Employee Career Growth
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