HUMAN CAPITAL DEVELOPMENT AND CORPORATE SUSTAINABILITY (A SURVEY OF SELECTED OIL SERVICING FIRMS IN PORT HARCOURT)

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Abstract

This study examined the relationship between human capital development and corporate sustainability. The main purpose of the study is to examine the relationship between staff training and corporate sustainability in selected oil service firms in Port Harcourt, investing the relationship between staff development and corporate sustainability in selected oil service firms in Port Harcourt and to determine the relationship between coaching and corporate sustainability in selected oil service firms in Port Harcourt.The population of the study was made up of 216. The sample size of 140 respondents was drawn from using the Taro Yemen formula. The simple percentage was used to analyse the research question while chi-square was used to analyes the hypotheses. Based on the finding of the study, it is recommended that, the human resource manage should ensure that proper identification,  determination  and  assessment  of  human capital needs in the bank. This will ensure that the right number and calibre of staff are selected for the training and development programmes, there  should  be  regular  research  on  developments  in the   banking   environment   that   require   training   and upgrading  of  employees.  Thus  will  enable  the  right training  and  development  programmes  to  be  designed and  implemented  so  as  to  keep  the  employees  abreast with the developments, the whole programmes should  be  holistically  designed. This includes ensuring that the syllabus contains what is required of the employees to know, competent trainers, adequate   training   facilities   and   regularity   of   the programmes, there  should  be  effective  evaluation  techniques  for  the programmes.  Thus  should  be  essentially  practical  and will enable management to identify any deficiency in the programmes.  When  this  is  done,  remedial  measures would follow, there should be adequate and effective system of rewording successful  trainees.  This includes promotion, advancement   and   status   enhancement   as   well   as increased responsibility. These will serve as motivations for effective    participation in staff training and development programmes and finally, the programmes should be regularly carried out to enhance  productivity of  staff,  which is  imperative  for sustainability and growth. 

Table of Contents

Title page    i

Declaration iii

Certification         iv

Dedication  v

Acknowledgement         vi

Abstract      vii

Table of Contents viii

List of Tables       x

List of Figures      xi

CHAPTER 1        1

INTRODUCTION         1

1.1 Background of the Study  1

1.2 Statement of Problem        3

1.3 Objectives of the Study     4

1.4 Research Questions 5

1.5 Research Hypotheses        5

1.6Significance of the Study    5

1.7 Scope/Limitations of the Study   6

1.8 Definition of Related Terms        6

CHAPTER 2        9

LITERATURE REVIEW        9

2.1      Conceptual Framework         9

2.1.1   Concept of Human Capital Planning        9

2.1.2   Dimensions of Human Resources Development 11

2.1.3   Concept of Corporate sustainability         12

2.1.4   Implications of Human Capital Development    17

2.2      Theoretical Framework          18

2.2.1   Bureaucratic management theory    18

2.2.2   Administrative Management Theory         19

2.2.3   Scientific management theory          20

2.3      EMPIRICAL FRAMEWORK         23

CHAPTER 3        25

RESEARCH METHODOLOGY      25

3.1 Research Design      25

3.2 Population of the Study    26

3.3 Sample and Sampling Techniques        26

3.4 Methods of Data Collection        27

3.5 Method of Data Analysis  28

3.6 Questionnaire Design        28

3.7  Data Analytical Techniques       28

3.8 Reliability and Validity     29

CHAPTER 4        30

DATA PRESENTATION AND ANALYSIS       30

4.1  Data Collection and Presentation        30

4.2  Data Analysis         33

4.3  Discussion of Findings     37

CHAPTER 5        39

SUMMARY, CONCLUSION AND RECOMMENDATION  39

5.1    SUMMARY         39

5.2     CONCLUSION    40

5.3    RECOMMEDNATIONS         41

Reference    43

Appendix I 44

Appendix II          Error! Bookmark not defined.

List of Tables

Table 4.1: Questionnaire Administration and Retrieval 30

Frequency Table   31

Sex of Respondents       31

Academic Qualification  32

Employee Designation   32

List of Figures

Fig. 1: A Conceptual Framework showing the relationship between human capital development and corporate sustainability. 9

CHAPTER 1

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The   importance   of   human   resources   to   any   business organization has long been realized and stressed. This realization of the  value  of  human  resources  has  let to  the  proposal  by  experts that  they  should  be  classified  as  “assets”,  hence  the  term  “human capital”  (Anderson,  2005:18).  To get the best out of the human resources in an organization, there must be substantial and meaningful investment on them. Organizational  objectives  such  as  profit  maximization,  large market  share,  and  fulfilling  social  responsibility  cannot  be  achieved without    an    efficient    work-force.    Therefore,    human    capital development   is   essential   for   sustainability   and   growth   of   an organization.  It  is  thus  us,  being  realized  now  that  the  forces  that give  life  to  an  organization  are  the  human  energy  and  creativity operating  therein  (Onodugo,  2000P:  168).  Thus,  no  matter  how good and sophisticated capital and technology may be, it is of little relevance  to  the  organization’s  goal  when  managed  and  operated by   underdeveloped   human   resources.   They   do   not   only   lack capacity  but  also  the  motivation  to  use  other  resources  efficiently towards the organizational ends (Ugbaja, 2005: 62).In  some  organizations,  only  individuals  who  have  acquired skills  on  specific  jobs  are  employed.  But  in  others,  individuals  are employed  to  be  developed  on-the -job   as  required  by  the organization. In this case, it is believed that the individual, through training  and  development  programmes,  will  acquire  the  skill  and knowledge  required  for  effective  performance  of  the  job  (Nwatu, 2006: 72). However,human capital development must be based on the need rather than meeting the requirements of the organization. Such requirements must be accurately defined and the development programme  should  be  organized  to  exploit  the  potentials  of  the employee  or  to  correct  the  deficiencies  in  the  level  of  their performance (Ugwunna, 2007:151).Today,   the   business   environment   is   very   dynamic   and undergoes  rapid  changes  as  a  result  of  technological  innovation, increased  awareness  and  changing  demand  of  customers  and  the environment   generally.   Business   organizations,   especially   the banking  institutions,  operate  in  a  complex  and  competitive  market characterized  by  innovative  changes.  As  a  result,  human  capital  in these  banks  ought  to  be kept  abreast with  the  continuous  changes in  the  banking  environment  (Isichei,  2006:  24).  Thus  includes internal and external banking environments .In  order  to  be  competitive  and  keep  afloat,  human  capital development should be on a continuous basis. In other words, bank employees  should  be  trained   and  re-trained  continuously  and adequately motivated in order to stimulate high performance as this is one sure  way to make the business  profitable, growing and self-sustaining  (Ajunwa,  2005: 63).  As  has  been  observed  and  stressed in   the   financial   sector,   the   ever-improving   information   and communication  technology  and  demands   of  stakeholders  have engendered keen competition, thus  giving rise to the need for  well trained and retrained human capital.

With   the   continuous   improvement   in   human   capital   in response to the  changing  business  environment,  over time this will lead to growth and sustainability. Thus, the critical success factor of business  organization  is  to  have  a  pro-active  human  capital  which can   anticipate   the   future   and   adjust   in   advance   to   ensure continuous high performance which would ultimately lead to growth and sustainability. The onus therefore lies with  management to put in  place  an  appropriate  and  efficient  mechanism  for  human  capital development (Osemene, 2007: 19).Basically,   there   are   two   approaches   to   human   capital development   for   sustainability   and   growth-manufacturing   and growing  approaches.  The  manufacturing  approach  is  the  most popular  to  human  capital  development.  This  approach  details  the processes   through   which   human   resources   will   be   developed without   due   consultations   to   the   beneficiaries.   To   this   end, organizational members are selected, trained, developed, deployed, promoted  and  appraised  all  within  the  context  of  the  need  of  the organization  without  prior  input  from  the  employees  (Agundu, 2004: 72).Unlike  the  manufacturing  approach,  the  growing  approach grows  talent  rather  than  manufacture  it.  Once the  individuals  are employed and deployed, they are allowed to develop into what they are capable of becoming provided  that proper condition  for growth is   created.   Emphasis   is   on   providing   or   creating   enabling environment   for   growth   rather   than   designing   developmental programme on techniques that suit only the organization.

Corporate sustainability is an approach that creates long-term stakeholder value by implementing a business strategy that considers every dimension of how a business operates in the ethical, social, environmental, cultural, and economic spheres. It also formulates strategies to build a company that fosters longevity through transparency and proper employee development. Corporate sustainability is an evolution on more traditional phrases describing ethical corporate practice.

1.2 STATEMENT OF PROBLEM

Human capital development practices and processes face several problems that inhibit their effectiveness for corporate sustainability. Firstly, the inability of Human Resource Managers to properly identify and determine training and development needs is a serious human capital development problem as it not only leads to under development of employees but also under-selection of employees for training. Secondly, poor assessment of training and development needs often lead to poorly designed and packaged training and development programmes or syllabus. Thirdly, the use of incompetent trainers to help in the development of employees also undermine the efforts of management to have a well-trained human resources in the organization. Fourthly, lack of or inadequate training and development facilities as well as management commitment also pose a threat to human capital development. Fifth, irregular and poor implementation of training and development programmes for human capital also affect growth and sustainability. Finally, lack of motivation and ineffective system of evaluating training and development programmes for human capital undermine their effectiveness. The problem of this study is therefore to show how these factors adversely affect human capital development in oil service 

1.3 Objectives of the Study

The main purpose of the study is to examine the relationship between human capital development and corporate sustainability in selected oil service Firms in Port Harcourt. The specific objectives are as follows:

1.       To examine the relationship between staff training and corporate sustainability in selected oil service firms in Port Harcourt.

2.       Investing the relationship between staff development and corporate sustainability in selected oil service firms in Port Harcourt.

3.       To determine the relationship between coaching and corporate sustainability in selected oil service firms in Port Harcourt.

1.4 Research Questions

With the above objectives in focus, the study seeks to find answers to the following research questions:

1.       To what extent does staff training promote corporate sustainability in selected oil service firms in Port Harcourt?

2.       To what extent does staff development influence corporate sustainability in selected oil service firms in Port Harcourt?

3.       To what extent does coaching associate with corporate sustainability in selected oil service firms in Port Harcourt?

1.5 Research Hypotheses

The following hypotheses were formulated to guide the study:

          Ho1: There is no significant relationship between staff training and corporate           sustainability in selected oil service firms in Port Harcourt.

Ho2: There is no significant relationship between staff development and corporate           sustainability in selected oil service firms in Port Harcourt

Ho3:There is no significant relationship between coaching and corporate           sustainability in selected oil service firms in Port Harcourt.

1.6Significance of the Study

This research aimed at creating awareness and assessing Time Management and Corporate Sustainability in the Firm. Therefore, the study is expected to be of much value to the number of as people as follows;

Members of the firm will be informed on importance of Human Capital Development and Corporate Sustainability. Also, it will help decision makers to formulate difference strategies which will help the implementation of Human Capital Development and Corporate Sustainability.

The research will be benefited by identifying variable areas for further research, and will be used as an additional reference to researchers on Human Capital Development and Corporate Sustainability.

1.7 Scope/Limitations of the Study

The scope of this study is delimited into the followings:

Content Scope: The specific areas of corporate Sustainability the study investigated include; Economic sustainability, Environment sustainability and Social sustainability.  Whereas, the areas of Human Capital Development include staff training, staff development and coaching.

Geographical scope: This study covers an examination of strategic contributions of Human Capital Development and Sustainability survival.

Unit of Analysis: This is a macro study because it is interested in ascertaining the survival of an organization in this direction.

1.8 Definition of Related Terms

CORPORATE SUSTAINABILITY

Corporate sustainability is an approach that creates long-term stakeholder value by implementing a business strategy that considers every dimension of how a business operates in the ethical, social, environmental, cultural, and economic spheres. It also formulates strategies to build a company that fosters longevity through transparency and proper employee development.

ECONOMIC SUSTAINABILITY

Economic sustainability is the ability to support a defined level of economic production indefinitely.

ENVIRONMENTAL SUSTAINABILITY

Environmental sustainability is the ability to maintain rates of renewable resource harvest, pollution creation, and non-renewable resource depletion that can be continued indefinitely. Economic sustainability is the ability to support a defined level of economic production indefinitely.

PRIORITIZING

It is the activity that arranges items or activities in order of importance to each other.

SOCIAL SUSTAINABILITY

The ability of a community to develop processes and structures which not only meet the needs of its current members but also support the ability of future generations to maintain a healthy community.

DEVELOPMENT: Is any learning activity which is directed towards future need rather than present needs and which s concerned more with career growth than immediate performance. In order words after the employee has recruited selected and inducted he or she must be developed to better fit into the job and the organization. Again, that development would include both training to increase skill in performing a specific job and education to increase general knowledge and understanding of our total work environment.

HUMAN CAPITAL:  Is concerned with obtaining analyzing and reporting on data that inform the direction of value adding people management, strategic investment and operational decision at corporate level and at the level of front line management.

HUMAN: human, which is developed through human capital formation means much more than population or labour force, Human in the economic sense is the managerial, scientific, engineering technical or creating designing, developing organizational managing and operating productivity service enterprises and economic institutions.

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