EFFECTS OF HUMAN CAPITAL DEVELOPMENT STRATEGIES ON ORGANIZATIONAL PERFORMANCE IN ENUGU STATE CIVIL SERVICE FROM 2010- 2017: A SURVEY OF MINISTRIES OF EDUCATION, HEALTH, COMMERCE AND FINANCE ABSTRACTS The study examined the effect of Human capital Development Strategies on Organizational Performance in Enugu State Civil service from 2010 – 2017, a survey of ministries of Education, Health, Commerce and Finance, the study reviewed the contributions of scholars and literature in fields of human capacity building; with particular attention to the training and capacity in Enugu State civil service, human capacity theory was adopted for the study. Questionnaire were distributed, collated and analyzed with percentage and likert scale was used to analyze data generated from the study. Three hypotheses were formulated and tested using chi-square test, the result showed that the most outstanding challenges confronting human capital development in the Enugu State Civil Service are inadequate budgetary allocation, funds and lack of data on training; it was also discovered that the administration of governor Ifeanyi Ugwuanyi made some remarkable improvement in Human capital Development (HCD). The research findings also indicate among others that three pillars of human capital Development such as health care, training and development, also conducive working environment and good welfare packages received minimal attention and funding. Based on the findings of the study, recommendations were made. The study concluded that the ability of government to improve the human capital development of the workforce in Enugu State Civil Service, there must be adequate funds allocated to human capacity building and training of the workforce. Keywords: Human Capital Development, Strategies, Training, Organizational Performance and Efficiency. TABLE OF CONTENTS CHAPTER ONE: INTRODUCTION 1.1 Background to the study 1.2 Statement of the problem. 1.3 Objectives of the study. 1.4 Research questions 1.5 Research hypothesis 1.6 Significance of the Study 1.7 Scope of the Study 1.8 Limitations of the study 1.9 Operationalization of key concepts CHAPTER TWO: LITERATURE REVIEW 2.1 Conceptual review 2.1.1 The concept of human capital. 2.1.2 The concept of development. 2.1.3 The concept of human capital development. 2.1.4 The concept of strategy. 2.1.5 Measuring human capital development. 2.1.6 Human capital development in Nigeria civil service 2.1.7 Institutional machinery and strategies for human capital development in the Nigeria civil service 2.1.8 Importance of human capital development in Nigeria civil service 2.1.9 Human capital development and capacity building process 2.1.10 The benefits of human capital development on organizational performance 2.1.11 The strategic role of human capital development in Enugu State 2.2 Theoretical framework 2.2.1 Tenet and principles of the theory 2.2.2 Application of the theory to the study 2.2.3 Gap in Literature 2.3 Empirical Review 2.4 Summary of the reviewed literature CHAPTER THREE: METHODOLOGY 3.1 Research Design 3.2 Sources of Data 3.2.1 Primary Sources 3.2.2. Secondary Sources 3.3 Area of Study 3.4 Population of the Study 3.5 Sample Size Determination 3.5.1 Sampling Technique. 3.6 Instrument for Data Collection 3.7 Validity of the Instrument 3.8 Reliability of the Instrument 3.9 Method of Data Analysis 3.10 Instrument Return Rate CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA 4.1 Data Presentation 4.1.1 Analysis of Research Questions. 4.3. Test of Hypotheses 4.4 Discussion of Findings CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 5.1 Summary of findings 5.2 Conclusion 5.3 Recommendations 5.5 Contribution to knowledge. References Appendix I: Letter of Introduction Appendix II CHAPTER ONE INTRODUCTION 1.1 Background to the study Human capital development is a crucial area of human resource management; it is the fastest growing segment of personnel activities. Human capital development is one of the most important organizational dynamics. It constitutes the pivot in which organizational survival is run. Human capital is the basis of all resources and it is the indispensable means of converting other resources to mankind’s use and benefits. So how well we develop and employ human resource skills is fundamental in deciding how much we will accomplish as a nation. Human capital is the pivot of every human institution, without the human capital, every other resource remain untapped and dormant. Therefore, human capital development holds the key to unlock the potential growth and development opportunities to achieve a competitive edge. In this contest, organizations train and develop their human capital to the fullest advantage in order to enhance their effectiveness and performance. The civil service of the federation is the organ of the government that is responsible for the implementation and execution of government policies, programs and decisions; they are often regarded as the fourth tier of government. Their role and functions are so crucial and indispensable that no government can do without them. The Nigeria civil service is an important institution of the state; which affects the lives of the citizens daily. It is essential to modern life because of the role it plays in ensuring that the policies and programs of government are translated into action and brought to reality. Ezeani (2004),highlighted that the civil service remains a vital instrument for rapid socio – economic development of any nation; therefore, for any meaningful development and achievement to take place, the civil service must be properly positioned and equipped. In view of the above, for civil service to achieve her objectives, the personnel have to be fully developed and equipped properly. This view was supported by, Muscherin Nwizu, and Nwapi (2011), who formulated four propositions about the civil service: • The decision and behaviour of the civil service have tremendous influence upon the future and development of our society, our economy, and our policy. • The great bulk of decisions and activities by government are determined or heavily influenced by administrative officials. • The kinds of decisions and activities the officials take depend on their values • The attributes depend heavily upon their background, their training, education and other current associations. From the above, we can deduce that civil service determines most of government actions and inactions. The performance of civil service is also dependent on their capacity and competence which is equally dependent on their background, training, and education. The implication of the above is that Human Capital Development must be given priority in Nigeria civil service. This view is supported by Theodore W. Schutz (1961), who sees human capital as the stock of productive knowledge and skills possessed by workers. He believes that human capital is like other capital that can be invested through education, training and enhanced benefits that would lead to an improvement in the quality development of a nation. According to Onah (2014),Human capital development refers to a process that relates to training, education and other professional initiatives in order to increase the level of knowledge, skills, abilities, values and social assets of an employee which will lead to an employee’s satisfaction, high performance and eventually increase in organizational productivity. Human Capital Development is all about investing in personnel training and growth to ensure that the total objectives and organizational goals are met. Yesufu (2000) in Ojibolo; opined that the essence of Human Capital Development is to ensure that the work force is continually adapted or upgraded to meet the new challenges of its total environment. This implies that those already on the job require re-training, re-orientation or adaptation to meet the new challenges. Ijaiya (2004), sees Human Capital Development as a process of acquiring and increasing the number of people who have the skills, education, and experience which are critical for the economic and the political development of a country. According to him, Human Capital Development is therefore associated with investment in man and her development as creative and productive resources. Rapid socio – economic development has been observed to depend essentially on the caliber of human capital of a nation. Awopegba (2001), noted that although Nigeria is one of the most populous nations in Africa, the county is still largely under developed; this she said can be attributed partly to the unplanned efforts towards the development of human capital through education and training. Consequently, she noted that Nigeria has been scored low by the united \nations in terms of its human development indicators such as life expectancy, literacy and economic growth rate. With the increasing recognition that the harnessing of human potentials especially in public service is of utmost importance, organizations seek for the kind of employees that are well educated, skilled, qualified and have executive capacity to perform their tasks. Getting this kind of employees takes time and a systematic planning in education and training efforts. Sule (2011),pointed out that in the face at the existing massive population growth with its attendant needs; there is a serious dearth of required relevant labour force that can meet the current needs of public service and government. This is because most graduates that turned out from our educational system do not have the requisite skills and professionalism to meet up with the demands of the labour market. In fact, as at today, the development of an effective public service remains one of the greatest challenges facing many states civil service and Enugu state in particular. In Enugu State; government should make necessary efforts to develop her human capital so as to harness their potentials and make them relevant and productive. In addressing this issue, Enugu State government should look into the problem of education and training policies of the civil service that does not encourage the development of skills in the civil service. Training and empowerment of the work force remains the surest human capital development strategy that can enhance the skills and productiveness of the work force. The need to improve the human capital development of Enugu State Civil Service has become more obvious given the growing complexity of the work environment, the rapid change in economy and advancement in technology, climatic and environmental changes, global economic meltdown, the continued dwindling of the value of naira and the global terrorism, among other things. As a matter of national interest, the success of the civil service can be measured in terms of its responsiveness to the varied changing requirements of the environment, this responsiveness can only come about if the civil service is manned by highly trained, qualified experienced and competent staff working under a conducive environment with a clear understanding of the dynamics of the environment and very proactive in tackling the challenges that may occur. Human Capital Development is not limited to trainings, education and development of personnel or employees; it also includes her welfare, condition of service and other related matters that are capable of influencing and affecting her productivity and performance. This was adequately captured by Onah (2014). According to him; other necessary activities in the process of human capital include adequate health care, and welfare of employees. 1.2 Statement of the problem Over the years government seems to have neglected the serious decay in both infrastructure and Human Capital Development in Nigerian Civil Service. The Asian countries of China, India, Japan and other emerging nations of great potentials in the region like Malaysia, Singapore, Indonesia and Thailand are countries which laid the foundation for growth and national development not on natural resources but on human resources; however, in Nigeria context, the emphasis is always on natural resources. During the second development plan of Nigeria between 1971 and1974, it was noted that the major constraint to the plan implementation was inadequate absorptive capacity due to shortage of skilled manpower this shortage of skilled man power which is characterized by mediocrity and inefficiency now led to the following: 1. Serious neglect of government in funding of the education sector. 2. Political instability which causes frequent changes in education policies 3. Low measure of budgetary allocation to human resources department and its relative indices 4. Low quality of education which affected Human Capital Development. Jim-Nwoko (2009), commenting on this stated that Nigeria in order to be part of the leading nations of the world economically and politically will need to engage in a fresh plan to develop a national policy on human development. He said that for Vision 2020 to succeed, Nigeria need a well developed human capital to drive the vision. Any government agenda for that matter needs adequate human capital for effective implementation. Ribadu (2011), was in line with this thought when he stated that a healthy, well developed and equipped citizenry is at the heart of national development. According to him, the various segments of human capital development which include health, education, women and gender issues, youth, the physically challenged and social security should receive appropriate attention. No country has achieved sustainable economic development without sustainable investment in human capital. There can be no significant economic growth in any country without adequate human capital development. Ogujiuba and Adeniya; (2005), observed that in the past, much of the planning in Nigeria was centered on accumulation of physical capital for rapid growth and development, without recognition of the important role played by human capital in the development process. In Nigeria, although oil and gas resources are great assets, the greatest and most valuable asset of a nation is her people; because there is no oil–well richer than the human brain. It therefore means that for Nigeria to be a great nation, we must as a people, begin to devote resources and attention to human capital development. One of the biggest challenges facing Africa in this 21st century is the challenge of development and harnessing the capabilities of its teeming population in order to escape from the tragedy of poverty, illiteracy and economic stagnation. Some alleged that the problem of Nigeria government is not policy formulation but the implementation and execution of these policies. The Nigerian Civil Service as an institution has experienced institutional failures, backwardness, static to change, lack of initiation and creativity due to lack of human capital development. It is on this premise that a lot of reforms were introduced to address the lapses and short falls. Unfortunately, despite the numerous reforms and investment, the Nigerian Civil Service is yet to gain a global competitive advantage. For instance, in terms of the human capital development index, according to UNDP human development index 2009, most developing countries of Africa and Asia are ahead of Nigeria. Nigeria is in the 158th position out of 182 countries assessed World Wide. Harry D.M (2010). This certainly is not a good report for a country that wants to become one of the 20 largest economies in the World. This should be a source of serious concern to Nigerians, most especially the government. Despite all government efforts the civil service in Enugu State is still bedeviled with high level of inefficiency which culminates into low productivity. The civil service is faced with the problems of inadequate and unqualified human capital. The truth is that even though many youths graduate from the university on yearly basis, most of them still require to under-go one form of training or another before they can fit-in into public service job. The point we are making here is that the quality of service delivery in the public service of Enugu State is very poor and it does not create room for development. It is therefore against this background that this study is set to examine the effect of Human Capital Development in Enugu State Civil service using ministries of Education, Health, Commerce and finance as a survey study. 1.3 Objectives of the study The broad objective of this study is to assess the effect of human capital development strategies on organizational performance in Enugu State Civil Service. However, the specific objectives of the study include to; 1. Determine the effect of succession planning strategy on regularity of promotion of civil servants in the selected ministries in Enugu state 2. Identify the effect of on-the-job training strategy on labour turnover of civil servants in the selected ministries in Enugu state 3. Evaluate the effect of recruiting and retaining strategy on industrial harmony of civil servants in the selected ministries in Enugu state. 1.4 Research Questions Based on the objectives of the study, the following research questions were raised 1. What is the effect of succession planning strategy on regularity of promotion of civil servants in the selected ministries in Enugu state? 2. What is the effect of on-the-job training strategy on labour turnover of civil servants in the selected ministries in Enugu state? 3. What is the effect of recruiting and retaining strategy on industrial harmony of civil servants in the selected ministries in Enugu state? 1.5 Research Hypotheses To realize the objectives of the study and to provide answers to the research questions, the following alternate hypotheses were formulated to guide the study i. Succession planning strategy has a significant and positive effect on regularity of promotion of civil servants of the selected ministries in Enugu state. ii. On-the -job training strategy has a significant and positive effect on labour turnover of civil servants of the selected ministries in Enugu state. iii Recruiting and retaining strategy has a significant and positive effect on industrial harmony of civil servants of the selected ministries in Enugu state 1.6 Significance of the study The study has both theoretical and empirical significance. Theoretically, the study will determine the effect of succession planning strategy on regularity of promotion, identify the effect of effective training strategy on labour turnover and evaluate the effect of recruiting and retaining strategy on industrial harmony. Empirically, the findings will be relevant to the Ministries of Education, Health, Commerce and Finance which may draw some insight from the study on the strategies of development of human capital for the purpose of enhancing performance of the civil service. At the individual level, the study will help the researcher to widen his understanding of the link between organizational performance and the human capital potential. The study will create an opportunity to develop the research skills which will be relevant in future undertakings in the civil service. Apart from that, the study could lead to attainment of a Masters’ Degree. The findings of this study will also add new knowledge in the academic world by not only adding a new piece of academic work but also the finding of the study will serve as a stepping stone for further research on the same or similar topics by suggesting areas for further studies. 1.7 SCOPE OF THE STUDY The study covered Human Capital Development strategy and organizational performance in Enugu State Civil Service. The ministries covered were Education, Health, Finance and Commerce from 2010-2017. The reason for this choice is to enable the researcher get valid data and information and also meet the current reality on ground as regards the study area. 1.8 Limitations of the study 1.9 The collection of data from the field was an uphill task and problematic as some respondents especially the senior staff of the four ministries under study found it difficult to squeeze out time to respond to questions due to their tight official schedules and personal programmes. The human resource department of these four ministries could not release certain information and data especially as regards how much is allocated and spent annually on human capital development, as such information was confidential. The reliability and validity of the source of both primary and secondary data is limited since the study is subject to weakness inherit in the responses to the questionnaires and interview for example, bias in responses cannot be ruled out completely. However, despite the constraints, the staffs that were available and willing to assist were given copies of questionnaires which they responded positively to by answering the relevant questions. Some documents on human capital development and training schedule were handed to me by the ministry of Finance. With such information and data gathered, the researcher was able to make valid judgment and decisions. 1.9 OPERATIONALIZATION OF KEY CONCEPTS Some concepts used in this study are operationalized as follows: 1. Human Capital:Human Capital is used as a process that relates to training, education and other professional initiatives in order to increase the level of knowledge, skills, abilities, values and social assets of an employee which will lead to employee job satisfaction and performance and eventually on the organizational performance. 2. Civil Service: The civil is used to refer to the body of permanent officials appointed to assist the decision makers at state and federal levels. 3. Training: This is the process whereby an employee is enabled to grow in the job through the acquisition of wide experience, breathe and increasing confidence resulting from the exercise of varied and tested responsibilities. 4. Performance: This refers to those behaviours that have been evaluated or measured as to their contributions to organizational goals. 5. Motivation: Motivation includes drives desires, needs and forces that move individuals toward the achievement of group goals. 6. Human resources: Human resources are individuals who make up the work force of an organization. 7. Development: Development is a process of improving the quality of all human lives with some important aspects; which include creating conditions conducive to the growth of the people’s self-esteem through the establishment of social, political and economic systems and institutions which promote human dignity and respect.
EFFECTS OF HUMAN CAPITAL DEVELOPMENT STRATEGIES ON ORGANIZATIONAL PERFORMANCE IN ENUGU STATE CIVIL SERVICE FROM 2010- 2017: A SURVEY OF MINISTRIES
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