Human Capital Development and Organizational Performance in Commercial Banks

Abstract

The importance of human capital development in an organization can never be over emphasized. He equally stated that technological development and innovations taking place every day has rendered today’s skills and method ineffective for tomorrow’s activities. Managements must therefore, help their employees acquire relevant skills and confidences necessary to help their organizations survive, grow and acquire competitive edge over competitors. Human capital may determine both the added value created in the economy through direct participation in the production process, or growth rate through its innovative capacity. This of course is possible with developed human capitals. Scholars assert that human capital development has become a critical index of competition among business organizations that such development has helped in designing the strategic plan of business organization. They pointed that the human capital held by employees in an organization are those resources that can contribute to competitiveness and high productivity if management will know how to train and recapitalize the resources by putting them in a favourable internal context of the organization. Human capital development has been found to correlate positively with organizational survival, improved corporate performance, and corporate effectiveness among other organizational positive outcomes.