1.1 Background to the Study
Among the important factors contributing to the success of an organization is human capital, which drives path breaking changes and creates a learning environment. Presently, organization growth is mostly identified by the ingenious innovation of human source analytics, which plays an essential role in managing intellectual capital. Organizational growth is the essential dependent variable for academics interested in management disciplines (Mishra et al., 2019). Organization's employees are progressively essential to its ability to be successful and acquire a competitive edge. Companies are for that reason focusing on enhancing employee efficiency with considerable human capital development programmers.
It is possible as a manager to do things right lay fantastic strategies, draw clear organization charts, set up world class assembly lines and use sophisticated accounting controls, however still fail by hiring the incorrect people or by not inspiring subordinates. On the other hand, many supervisors have been successful despite poor plans, companies, or control. They were successful due to the fact that they had the opportunity of employing the right people for the right jobs and inspiring, appraising and developing them. It was formally thought that capital is the major challenge to developing industries before now. Nevertheless, this is not the case as it is now the failure of the firm to employ the needed labor force and maintain them that now constitutes an impediment for organizational growth and performance. There is no project supported with good ideas, vitality and enthusiasm that has been stopped by capital inadequacy; but there are organizations which growth had been retarded due to failure to employ and maintain very efficient and passionate labor force. This, falls under the purview of human capital management.
Human capital (HC) embodies the understanding, skill, judgment and experience of workers. Bontis (1999) suggested that human capital is very important since it gives development and tactical renewal. Additionally, he suggested that human capital is the profit lever of the knowledge-driven economy. A knowledge driven economy is an economy where generation and exploitation of knowledge plays a primary path while wealth creation (Yusliza and Hazman, 2008).
The human funding has been highlighted as one of the crucial success factors of a firm. It can be presumed that many successful companies have organized or at least they ought to have organized their management of the human capital systematically. The management of human capital can be put into practice by using competence management and knowledge management methods. Various studies of competence and knowledge management have been carried out however the methods of this are still not really popular (Hannula et al, 2003). Furthermore, Subramaniam and Youndt (2005) discovered that the mixture of human and social capital positively affected firms' innovative capabilities (T.T. Selvarajan et al, 2007).
Sari (2006) productivity measures the effectiveness of production. It can be expressed as the ratio of output to inputs when all outputs and inputs are added in the productivity measures it is called overall productivity. Output and inputs are a measure of the income generated in a production process. it is a measure of overall efficiency of a production process and because of this the goal to be maximized in production process.
Today, business setting is really vibrant and undergoes a rapid change consequently of technological advancement, increased awareness and changing request of customers and business environment generally. Business organizations, operates in a challenging and competitive market defined by advanced changes. As a result, human capital must to be maintained abreast with the constant changes in the business environment. It is therefore, pertinent to examine impact of human capital management on organizational growth in this study.
1.2 Statement of the Problem
Human capital management is an essential business task in today globalized industrial center. Without knowledge into labor force and capability needs, authoritative execution endures. To line up with fundamental and increasing business goals and measurements, the saving money industry have to guarantee that Human Resource has a strong comprehension of the association's increasing and center business concerns and vital measurements and implementation pointers to determine what Human Resource related information will be most useful in changing and owning business implementation (Bozbura, et al., 2007). People, organizations and nations gradually perceive that large amounts of aptitude and ability are basic to future security and achievement. Normally learning that as people secure more instruction and preparing amidst a lifetime, human capital drives the generation of merchandise and ventures, and furthermore new developments in the industrial center. While the financial estimation of human capital cannot be scrutinized, a vital concern amongst researchers is if there is any relationship between human capital management and organization growth. This is the key goal of this study.
1.3 Objectives of the Study
The general purpose of this study is to look at the impact of human capital management on organizational growth. However, the specific objectives include:
i) To understand the extent to which human capital management impact organizational growth
ii) To highlight the factors impacting human capital management in an organization.
iii) To determine whether management disposition to human capital management has any relationship with career development of employees and organizational growth.
1.4 Research Questions
The research questions include:
i) To what extent does human capital management impact organizational growth?
ii) What are the factors impacting human capital management in an organization?
iii) Does management disposition to human capital management have any relationship with career development of employees and organizational growth?
1.5 Research Hypotheses
The following statements are the research hypotheses for this study:
i) There is a significant relationship between human capital management and organizational growth
ii) There is a significant relationship between management disposition to human capital management and career development of employees and organizational growth
1.6 Significance of the Study
The study is important as it provides a number of vital managerial contributions, where the insights offered can help government agencies firstly, in facing ongoing challenges in serving the needs of Nigerians, and consequently leading towards positive performance.
The findings of this is study can benefit policymakers in government agencies in terms of understanding public organizational performance and the tough workforce environment they have to deal with. This study also serves as an important platform for the economic area of Nigerian government to further improve and build excellent economy with competent human capital.
Also, the results of this study can add-on existing knowledge in emphasizing the role and importance of human capital on organizational growth. The present study could be of significance to the literature in the areas of human capital and organizational growth.
The results obtained from this study can benefit the academia in terms of providing new insights into the contribution of human capital to organizational performance in the government agencies. The end goal is that the findings would be able to inform Nigerian government agencies to achieve better performance from improved planning from a human capital perspective.
Lastly, this study will provide additional knowledge in translating the role of human capital on organizational performance. Internationally, it will contribute to the existing body knowledge and thus offer a useful locus and reference for other studies and research.
1.7 Scope of the Study
In an attempt to carry out this study, it was necessary to have a concentrated area of study. The scope of this research work is restricted to the impact of human capital management on organizational growth with a case study covering United Bank for Africa Plc, Ibadan, Oyo State.
1.8 Limitations of the Study
Several constraints were encountered in the course of carrying out this research work. These constraints or limitations are as follows:
- Lack of adequate finance constitutes a major constraint.
- Lack of time affected the research work
- Some respondents were redundant to give responses to the research question.
- Some of the questionnaires were returned late
- Non cooperative refuse attitude of some other managers who refuses to give information about the organization.