The main purpose of this study is to know the impact of effective human capital management on organizational Growth. Every organization, no matter the nature and activities being undertaken by it, will not exist. This time, the other factors of production like materials, capital and machines will be meaningless if there are no human beings to harness them. The availability of manpower is not just the issue but its effective and efficient manpower on the organization enhance the need for human capital management. Therefore, this study has tried to unfold the basic functions of human capital management and its impact and effectiveness of organization growth. With references to impact effective human capital management of organizational growth, the impact of effectiveness, extent had quality of human capital management has been carried out at Star Paper Mill Limited Aba, Abia State as a case study. In view of this, the researcher conducted a detailed survey on this subject such as questionnaire, oral interviews and closely looked at the views of other Authors was also an immense help in this project. The result of this study was presented and analyzed using table of the study, recommendations and conclusion were made.
1.1 BACKGROUND OF THE STUDY
Human capital management is that aspect of management that is concerned with all aspect of managing the human resources of an organization. Human Capital management involves the management of human capital at work irrespective of the type of organization in question, its products, size or structure, philosophy of its management must procure human resources of it to achieve its stated objectives. Human capital management practices spreads all the aspect of co-operate and organization activities. It therefore becomes the responsibility of all those who manage people in the organization as well as being a description of work of those who are employed as a human capital specialist. More especially, human capital management involves determining the organization and the use of human resources, recruiting and selecting the best available employees acting as liaison between the union and the government organization and handling other matters relating to employees will being.
However, many organizations have paid little or no interest in the effective human capital management which has resulted to how productivity high rate of employee interest and other ugly social menace, thereby hindering the organization growth. The growth of any organization lies solely on the growth and development of his employee. In a case where human capital management is not well practiced in any organization the growth of the employees will not be achieved and the result is that a stunted growth or declining profit will be recorded.
A satisfied work force is the cove strength of an organization and to maintain a satisfied work force the organization must be organized. For human resources that have been acclaimed, it must be vital and must be a useful resource among the organization resources. Any organization that must achieve its objectives must first develop its human factors or resources.
But, it is ironical that many organizations have no plan for growing their human resources. But budget of millions of naira and even Dollars have been spent in the growth of many organization. Billions is been spent on infrastructural capacity building, information communication, technology, but little or none is budgeted on the human resources that will control the infrastructural and the information communication technology. This remains the core reason why the infrastructure and the technologies acquired is not performing the purpose for which they were designed to do. Human Capital refers to the knowledge, expertise, and skill one accumulates through education and training (Severine and Lila, 2009; Marimuthu et al., (2009), Dae-bong (2009); Malose and Boris (2012; Afiouni (2013); Armstrong (2014), Odhong et al., 2014; Joshi et al., 2015). The concept of Human Capital (HC) was initially formulated by Theodore Schultz in the early 1990, as a way of explaining the advantages of investing in education on a national scale (Afiouni, 2013) cited in Odhong and were (2013). The emphasis on human capital in organizations reflects the view that market value depends less on tangible resources, but rather on intangible ones, particularly human resources (Kulvisaechana, 2006) cited in Odhong et al., (2014).
1.2 STATEMENT OF THE PROBLEM
It is true that many business organizations have succeeded without acquiring the formal knowledge of human capital management. But it is true that many of these organizations could have record more successes if scientific human capital management was applied in them.
The efficient of such organization would have trained or at least doubled in the presence of human capital management. Problem remains that we need to ascertain the extent roles human capital management plays to help these organizations achieve their objectives. There is the need to determine the most important; it can contribute towards the organizational efficiency.
Therefore, the problems of this study are posed as a question, they are:
- Does human capital Management contribute anything to the achievement of organizational goals?
- What are the ways of making these contributions?
- Does good human capital management improve productivity?
- Can efficient human capital Management change workers attitude to work?
1.3 PURPOSE OF THE STUDY
The major purpose of this study is to assess at the impact of effective human capital management practice on organizational growth.
Specific objectives that guided the study are:
- To explore literatures and describe human capital management practices in organization
- To examine the extent to which human capital management influence organizational performance
- To examine whether management disposition to human capital management has any relationship with career development of employees and organizational performance.
- To identify if human capital management improve productivity
- To examine if Human capital management training affect the attitude of staff in the organization
1.4 SIGNIFICANCE OF THE STUDY
This study examines the effectiveness of human capital management in the achievement of organizational goals.
The findings and suggestions from this research work will help different sectors of business organizations lacking in human capital management to see the need of capital management to be implemented in their organization.
Finally, this research work is of strategic important to students and other researchers in the same area of study and it will also serve as a spring board or reference materials for other scholars in their own research work.
1.5 RESEARCH QUESTIONS
For the purpose of this research study, the researcher has adopted the following research questions:
- Does human capital management in any way contribute to the achievement of organization’s growth?
- Does effective management contributed to the achievement of organizational goals?
- Does management disposition to human capital management have any relationship with career development and organizational performance of employees?
- Does human capital management positively change workers attitude to work?
- Does quality human capital management generally improve the efficiency of organizations?
1.6 SCOPE/DELIMITATION OF THE STUDY
The research limited to Star Paper Mill Limited Aba, Abia State as the case study. The research will be conducted in the corporation. The conferment of the researcher at Star Paper Mill Limited Aba, Abia State was informed by the fact that it would be possible to carry out the research in all the Business organization in the country.
Therefore, the affairs of a given company or corporation needs to be studied and used as reference to obtain what implies to other firms in the country.
However the research has some constraints which are;
Time: the time at the disposal of the researcher which is allocated for the study was a major limitation as the researcher has to combine other academic work with the study.
Finance: The finance at the disposal of the researcher in the course of the study does not allow for wider coverage as resources are very limited as the researcher has other academic bills to cover.
1.7 DEFINITION OF TERMS
Human Capital Management: This is concern with the formal system for management of people within the organization with greater emphasis is place on planning, controlling, organizing, coordinating and others.
Management: This is the complementation of all the component of the organization control in one place in order to bring about efficiency and effectiveness in the organizational aims and objectives and does the process of determining the appropriate organizational structure.
Organization: This is a group of people that work together with aims and objectives to achieve organizational goals.
Efficiency: This is the ratio of actual outputs to actual inputs.
Growth: The process of increasing in size. The process of increasing in amount, value, or importance. ‘The rates of population growth are lowest in the north’
1.8 ORGANIZATION OF THE STUDY
This research work is organized in five chapters, for easy understanding, as follows Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study. Chapter two highlight the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study.