Complete Material Cost #3,000
Order for Complete Material now
Abstract
The study examined the relationship between human capital development and organizational commitment of selected manufacturing firms in Port-Harcourt. The survey method was adopted. The study was designed to focus on selected manufacturing firms in Port Harcourt. The population of the study was made to be one hundred (110). The Yaro Yemen’s was used to determine the sample size as 88. A self-designed questionnaire on human capital development and organizational commitment was used and administered for the data collection. The Chi-Square statistical tool was used to test the hypothesis. Findings reveal that there is a significant relationship between human capital development and organizational commitment. Based on the findings of the study summary it is recommended that management having seen human resource as a vital aspect of organization, should be encouraged to finance it, seeing that the company is one that makes use of highly trained personnel, lack of funds as a problem should not be allowed to hinder effective training and development, educational qualifications more especially of technical qualifications should be a pre-requisite for recruitment, dilution, placement, promotion appraisal and lay off of workers and organizations should inculcate the habit of attending seminars and conferences. These are avenues where new skills are developed and discovered, it will not only help to train and develop the worker, but also offers powerful labour force, that helps in organizational growth and profitability.
TABLE OF CONTENTS
Title Page i
Cover Page ii
Declaration iii
Certification iv
Dedication iv
Acknowledgements 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 the Problem 2
1.3 Objectives of the Study 3
1.4 Research Question 4
1.5 Research Hypotheses 4
1.6 Significance of the Study 4
1.7 Scope of the Study 5
1.8 Limitation of the Study 5
1.9 Definition of Terms 5
CHAPTER 2 7
LITERATURE REVIEW 7
2.1 Conceptual Framework 7
2.1.1 Concept of Human Capital Development 7
2.1.2 Dimensions of Human Capital Development 12
2.1.3 Organizational commitment 14
2.1.4 Measures of Organizational commitment 14
2.2 Theoretical Review 15
2.2.1 Human Capital Development Theory 17
2.2.2 Fredrick Taylor Scientific Theory (1911) 18
2.3 Empirical Review 19
CHAPTER 3 22
RESEARCH METHODOLOGY 22
3.1 Research Design 22
3.2 Population of the Study 22
3.3 Sample and Sampling Techniques 23
3.4 Questionnaire Design 24
3.5 Sources and Method of Data Collection 24
3.6 Data Analytical Techniques 25
3.7 Reliability and Validity 26
CHAPTER 4 27
DATA PRESENTATION AND ANALYSIS 27
4.1 Data Collection and Presentation 27
4.2 Data Analysis 28
4.3 Hypotheses Testing 32
4.3 Discussion of Findings 36
CHAPTER 5 37
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 37
5.1 Summary 37
5.2 Conclusion 37
From our findings, we concluded as follows; 37
5.3 Recommendation 38
References 39
Appendix I 40
Appendix II 41
LIST OF TABLES
Table 4.1: Questionnaire Administration and Retrieval 27
Table 4.2: showing the age of respondents 28
Table 4.3: Showing the Gender/Sex of Respondents 28
Table 4.4: Showing the Educational Qualification of the Respondents 29
Table 4.5: Showing the Marital Status of Respondents 29
Table 4.6: Staff training and organizational commitment 30
Table 4.7: Staff development and organizational commitment 31
Table 4.8: Employee coaching and organizational commitment 32
LIST OF FIGURES
Figures 2.1: A Conceptual Framework Showing the Relationship between Human Capital Development and Organizational Commitment 7
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
Organizational commitment is reflected in at least three general topics: active association with the organization, the predictable costs of leaving the organization and the obligation to remain in the organization (Meyer Allen, 1991). These three approaches are called affective, continual and normative commitment. Common to these three approaches is the attitude that the commitment is a psychological state characterized by the relationship of employees to the organization and implies a decision to continue the work in it. These psychological states also have different implications for the behavior related to the workplace.
The meaning of commitment of employees can best be explained using the theory of social exchange. The theory of social exchange is based on an economic model of human behavior, where the interaction processes between individuals are motivated by the desire to increase the rewards and reduce losses. The basic premise of the theory of social exchange is that the relationships that provide more reward than costs contribute to permanent mutual trust and attachment. Furthermore, these social transactions include both material benefits and psychological rewards, including status, loyalty and approval. For example, the workplace supervisor enables the employees cash rewards, while in return the employee contributes by the personal commitment and expertise. Most often studied behavior that is correlated with the commitment is money turnover in an organization. However, that focus on the turnover can be short-sighted.
One way an organization can be committed is through human capital development. According Schultz (1993), the term “human capital” has been defined as a key element in improving a firm assets and employees in order to increase productive as well as sustain competitive advantage. To sustain competitiveness in the organization human capital becomes an instrument used to increase productivity. Human capitals refer to processes that relate to training, education and other professional initiatives in order to increase the levels of knowledge, skills, abilities, values, and social assets of an employee which will lead to the employee’s satisfaction and performance, and eventually on a firm performance. Rastogi (2000) stated that human capital is an important input for organizations especially for employees’ continuous improvement mainly on knowledge, skills, and abilities. Human capital refers to the processes that relate to training, education and other professional initiatives in order to increase the levels of knowledge, skills, abilities, values, and social assets of an employee which will lead to the employee’s satisfaction and performance, and eventually on a firm’s performance. Rastogi (2000) stated that “human capital is an important input for organizations especially for employees’ continuous improvement mainly on knowledge, skills, and abilities.”The productivity of that capital depends on how effectively people share their competence with those who use it”. The manufacturing firms in Nigeria are well known for a common phrase which says “our employees are our greatest asset”. If this assertion is critically evaluated, the said greatest asset has not been given the required attention that could bring out the best in an employee. The highest recruiting industry in Nigeria is the manufacturing firming sector. This study therefore, examined the relationship between human capital development and organizational commitment of manufacturing firms by studying Three (3) selected manufacturing firms in Nigeria which include; Zina Polythene and First Aluminium.
1.2 Statement of the Problem
The major concern of any employer is to make employees to contribute their very best to the attainment of the organizational objectives. Training is a vital part of any administration function and so it is important that it is carried out but most manufacturing sector is still carrying out training of employees in an ad-hoc way (unplanned) which waste a considerable proportion of money without really identifying the need for such training. There is scarcity of trained employee and industrial experts in the country, and this has become a challenge to the manufacturing sector. This lack of professional and experts in the industry has led to the employment of half fit experts which needs further training to make them suitable for the jobs. In order to enhance this process various institutions has been established with specific functions of promoting human capital development in the Nigerian economy. The structure of employment has undergone serious changes which make it inevitable to update obsolete skills and talents of the manufacturing firms. Furthermore, as the old staff appears to have become obsolete in skills as a result of the rapid changes within the environment; it’s necessary to prepare employees for the new challenges introduced by the reforms. This is why human capital development programmes as well as retraining has to go together with the new equipment. Besides, one thing is to acquire additional knowledge and skill, another thing is to have the required motivation to use the human capital acquired to bring about improved productivity. Therefore, there is need to investigate the effect of human capital development on organizational commitment of manufacturing firms.
1.3 Objectives of the Study
The main objective of the study is to examine the effect of human capital development on organizational commitment of selected manufacturing firms in Port Harcourt. The specific objectives are as follows:
1. To examine the relationship between staff training and organizational commitment of selected manufacturing firms in Port Harcourt, Rivers State.
2. To examine the relationship between staff development and organizational commitment of selected manufacturing firms in Port Harcourt, Rivers State.
3. To examine the relationship between employees coaching and organizational commitment of selected manufacturing firms in Port Harcourt, Rivers State.
1.4 Research Question
With the above objectives in focus, the study seeks to find answers to the following questions:
1. Does staff training associate with organizational commitment of selected manufacturing firms in Port Harcourt, Rivers State?
2. Does staff development associate with organizational commitment of selected manufacturing firms in Port Harcourt, Rivers State?
3. Does employee coaching associate with organizational commitment of selected manufacturing firms in Port Harcourt, Rivers State?
1.5 Research Hypotheses
H01: There is no significant relationship between staff training and organizational commitment of selected manufacturing firms in Port Harcourt, Rivers State.
H02: There is no significant relationship between staff development and organizational commitment of selected manufacturing firms in Port Harcourt, Rivers State.
H03: There is no significant relationship between employees coaching and organizational commitment of selected manufacturing firms in Port Harcourt, Rivers State.
1.6 Significance of the Study
The study made use of three (3) reputable manufacturing firms which is a good representation of the manufacturing firming sector in Nigeria. The work stands to give manufacturing firm managers an insight into the relevance of human capital development which will help to improve the financial competitiveness of their organizations. The employees will also see the need for proper career development in terms of possessing more expertise and relevant skills to face challenges in their jobs. Future researchers will also find the data used for this study very useful for further studies.
1.7 Scope of the Study
The scope of this study is delimited into the followings:
Content Scope: The specific areas of organizational commitment the study investigated include; profitability, efficiency and effectiveness. Whereas, the areas of human capital development includes staff training, staff development and coaching.
The study is in the immediate domain of Human Resources Management.
Geographical scope: This study covers an examination of strategic contributions of human capital development on organizational commitment. The study covers selected manufacturing firms in Port Harcourt.
Unit of Analysis: This is a macro study because it is interested in ascertaining the competitiveness of an organization in this direction. Hence, it is a macro level study.
1.8Limitation of the Study
The major limitation of the study is the short time frame the research lasted, coupled with the tight academic time table, which prevented a very comprehensive study. The fund available to the researcher was also limited and therefore the study was limited to a small portion of the survey population.
Another limitation is the difficulties, encountered by the researcher in obtaining all needed information and materials from the right source and computation of data for the project.
1.9 Definition of Terms
COACHING: Coaching and mentoring can provide an array of benefits for organizations of all sizes, especially small businesses.
EFFECTIVENESS: Organizational effectiveness is defined in many ways depending on the organizations goals and objectives in today’s market and also is dependent on the industry.
EFFICIENCY: It is the ability to avoid wasting materials, energy, efforts, money, and time in doing something or in producing a desired result.
HUMAN CAPITAL DEVELOPMENT: Human capital is an intangible assets that creates future economic value, which include the competencies of front-line employees and the organizational capabilities.
PROFITABILITY: Profitability is the state of yielding financial profit or gain. It is often measured by price to earnings ratio.
STAFF TRAINING: Staff training is a planned effort by an organization to facilitate the learning of job related to knowledge and skills by its employees to improve employee’s competitiveness and further organizational goals.
STAFFS DEVELOPMENT: Development takes the form of learning activities that prepare people to exercise wider or increased responsibilities.