Influence of Human Capital Management on Organizational Performance

Abstract

This paper explains the influence of human capital management on organizational performance with a focus on the banking industry. Two research questions were raised to guide the study. A descriptive research design of correlation type was adopted. Data was collected from 62 senior permanent employees across the 5 banks out of 12 commercial banks available in the target study area to form the sample. Mean statistic and Pearson product moment correlation were used to analyze the data collected from the study. Results from the analysis showed that human capital management has a significant and positive influence on organizational performance. It is recommended among other things that training and development programmes should be prioritized in the banking industries and workers should be made to develop their careers by ensuring their job security and not just being used for the organizational growth; but later abandoned being useless and unproductive.

Keywords: Human Capital, Management, Organization, Performance, Efficiency