HUMAN CAPITAL PRACTICES IMPACT ON ORGANIZATIONAL PERFORMANCE
Abstract
Human Capital is embedded in individuals with intelligence, expertise, knowledge, skills and education pronouncement made by many scholars. There are different phenomena explained by Context Generic Human Capital (HC) and Specific Human Capital. Those organizations that plan, organized and manage HC strategically gain high Organizational Performance than those who don’t. HC revolves as a vital factor to win business competition in contemporary firms. HC can be distinguished as “General Human Capital” and “Specific Human Capital” whereas General HC may be utilized across jobs, firms and industries however Specific HC may be utilized for particular job or in a specific firm etc. The effective management integrates human capabilities to gain valuable, rare and inimitable practices consequently lead to Organizational Performance. The study results recorded a positive significance of Human Capital Practices on Organizational Performance.
Article visualizations:
Keywords
Full Text:
PDFReferences
Afiouni, F. (2013). Human capital management: a new name for HRM? Int. Journal of Learning and Intellectual Capital, Vol. 10, No. 1, pp. 18-34.
Alnachef, T. H. and Alhajjar, A. A. (2017). Effect of Human Capital on Organizational Performance: A Literature Review, International Journal of Science and Research (IJSR), Vol.6 (8), pp. 154-157.
Anastasiu, L., Gavri, O. and Maier, D. (2020). Is Human Capital Ready for Change? A Strategic Approach Adapting Porter’s Five Forces to Human Resources, Civil Engineering and Management Department, Technical University of Cluj-Napoca, 400114 Cluj-Napoca, Romania.
Armstrong, M. (2012). Armstrong's Handbook of Performance Management: An Evidence-Based Guide to Delivering High Performance, 4th Ed. Kogan Page Publishers.
Barney, J. B. & Wright, P. M. (1997). On becoming a strategic partner: The role of human resources in gaining competitive advantage (CAHRS Working Paper #97-09). Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies. http://digitalcommons.ilr.cornell.edu/cahrswp/150
Barney, J., Wright, M. and Ketchen, Jr. D. J. (2001). The resource-based view of the firm: Ten years after 1991, Journal of Management, 27, pp. 625–641.
Bassi, L and McMurrer, D. (2007). Maximizing Your Return on People, Harvard Business Review March-2007.
Birasnav, M., Rangnekar, S. and Dalpati, A. (2011). "Transformational Leadership and Human Capital Benefits: The Role of Knowledge Management", Leadership & Organization Development Journal, Vol. 32 (2), pp.106-126.
Bontis, N. (1999) Managing organizational knowledge by diagnosing intellectual capital: framing and advancing the state of the field Management of Innovation and New Technology Research Centre, Int. J. Technology Management, Vol. 18( 5/6/7/8) pp. 433-463.
Bontis, N. and Fitz-enz, J. (2002). Intellectual capital ROI: a causal map of human capital antecedents and consequents, Journal of Intellectual Capital, Vol. 3 (3), 223-227.
Burton, R. M. and Obel, B. (2018). The science of organizational design: fit between structure and coordination. Journal of Organization Design, Vol. 7(5), pp. 1-13. Central Bank of Sri Lanka, Annual Report 2016.
Colombo, M. G., Delmastro, M. and Rabbiosi, L. (2012). Organizational Design and Firm Performance. In Oxford Handbook of Managerial Economics, Chapter: 17. pp. 1-34.
Coomaraswamy, I. (2017) Central Bank to enhance bank examination methodology, Island News Paper, On January 13, 2017.
Crook, T. R., Todd, S. Y., Combs, J. G., Woehr, D. J and Ketchen, D. J. (2011). Does Human Capital Matter? A Meta-Analysis of the Relationship Between Human Capital and Firm PerformanceAmerican Psychological Association, Vol. 96 (3), pp. 443–456.
Deloitte University Press (2016) Global Human Capital Trends (2016). The New Organization, Different by Design. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/be/Documents/human-capital/gx-dup-global-human-capital-trends-2016.pdf
Deloitte University Press (2017). Deloitte Global Human Capital Trends (2017). Rewriting the Rules for the Digital Age. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/central-europe/ce-global-human-capital-trends.pdf
Dharmaratne, G. D. I. K., (2014). an Empirical Investigation on Internet Banking Service Quality and Its Impact on Customer Satisfaction and Loyalty: Special Reference to the Sri Lankan Banking Sector, Management Science University, Malaysia
Dharshani, R. K. N. D. (2013). A study of identifying the factors on Competitive Advantage for Bank of Ceylon Leasing – Sri Lanka: Special Reference to Kahawatta Branch, International Journal of Marketing, Financial Services & Management Research, Vol.2 (8), pp. 120-129.
Fareed, M., Noor, W. S. W. M., Isa, M. F. M. and Salleh, Sri S. M. M. (2016). Developing Human Capital for Sustainable Competitive Advantage: The Roles of Organizational Culture and High Performance Work System, International Journal of Economic Perspectives, Vol.10(4), pp.655-673.
Fernando, W. H. M, Yusoff, S. K. M., Khatibi, A. and Ferdous Azam, S. M. (2019). A Review on Human Capital; Two Principal Ideas Predominantly Generic Human Capital and Specific Human Capital for Organizational Performance, European Journal of Economic and Financial Research, Vol. 3 (5), pp. 35-47
Fernando, W. H. M., Yusoff, S. K. M., Khatibi, A., Azam, S. M. F. (2020). Human Capital impact on Organizational Performance: Special Reference to the Banks in Sri Lanka, European Journal of Social Sciences Studies, Vol. 5 (1), pp. 99-115.
Han, T. S., Lin, C. Y. Y. and Chen M. Y. C. (2008). Developing Human Capital indicators: a three-way approach, International Journal, Learning and Intellectual Capital, Vol. 5 (3/4), 387-403.
Harris, C. M., Wright, P. M. and McMahan, G. C. (2018). The emergence of Human Capital: Roles of social capital and coordination that drive unit performance. Human Resource Management Journal, www.wileyonlinelibrary.com/journal/hrmj DOI: 10.1111/1748-8583.12212, pp. 1-19.
Hernaus, T., Aleksic, A. and Klindzic, M. (2013). Organizing for Competitiveness – Structural and Process Characteristics of Organizational Design, Contemporary Economics, Vol. 7 (4), pp. 41-56.
Hossain, U. and Roy, I. (2016). Human Capital Management: The New Competitive Approach, International Journal of Economics, Commerce and Management, Vol. 4 (5) 1020-1034.
Ingham, J. (2007). Strategic Human Capital Management, Creating Value through People.
Jamal, W. (2008). Impact of Human Capital on Organizational Performance, Doctoral Thesis, Scholar of Foundation University, Institute of Management and Computer Sciences (FUIMCS), Islamabad.
Jamal, W. and Iqbal, J. (2011). Leadership Practices Maneuvers: Knowledge Accessibility and Learning Capacity of Organization, European Journal of Economics, Finance and Administrative Sciences, (37), 7-16.
Karunathilaka, K. G. G. S., Yajid, M. S. A. and Khatibi, A. (2015). A Study of Talent Management as a Strategic Tools for Private Sector Organizations in Sri Lanka, European Journal of Business, Economics and Accountancy Vol. 3 (6), 63-75.
Kriechel, B. and Pfann, G. (2005). The Role of Specific and General Human Capital after Displacement, Education Economics Vol. 13(2), 223–236.
Kolaric, B., Radojcic, S. and Nesic, L. G. (2012). Impact of organizational design on the success of human resource management (HRM): A case study of Serbian public services, African Journal of Business Management Vol. 6(24), pp. 7085-7095.
Kucharcikova A., Tokarcikova, E. and Blaskova M. (2015). Human Capital Management – Aspect of The Human Capital Efficiency in University Education, Global Conference on Contemporary Issues in Education, GLOBE-EDU 2014, 12-14 July 2014, Las Vegas, USA, Procedia - Social and Behavioral Sciences, 48 – 60
Mahdi, O. R. and Almsafir, M. K. (2014). The Role of Strategic in Building Sustainable Competitive Advantage in the Academic Environment, International Conference on Innovation, Management and Technology Research, Malaysia. Procedia – Social and Behavioral Sciences 129, 289 – 296.
Marichova, A. (2018). Application VRIO Framework to evaluate capabilities of the construction firm to create competitive advantages. International Journal of Engineering Sciences & Research Technology, 7(8), 362-369.
Marimuthu, M., Arokiasamy, L. and Ismail, M. (2009). Human Capital Development and Its Impact on Firm Performance: Evidence from Developmental Economics, The Journal of International Social Research Volume 2 / 8 Summer 2009, 265-272.
Mohrman, S. A. (2007). Designing Organizations for Growth: The Human Resource Contribution. Center for Effective Organizations, Marshall School of Business University of Southern California.
Munjuri, M. G., K’Obonyo, P. and Ogutu, M. (2015). Human Capital and Performance of Commercial Banks and Insurance Firms in Kenya, 1st DBA-Africa Management Review International Conference, Pp. 101-117.
Nicol-Keita, R. G. (2013). The impact of Human Capital Management on Operational Performance at the Gambia National Water and Electricity Company (NAWEC), Department of Managerial Science, School of Business, KNUST, College of Art and Social Sciences, 1-79.
Odhong, E. A., Were, S. and Omolo, J. (2014). Effect of Human Capital Management Drivers on Organizational Performance in Kenya, a Case of Investment and Mortgages Bank Ltd., European Journal of Business Management, Vol.2 (1), 1-15.
Ogbo, A. I., Chibueze, N. F., Christopher, O. C. and Anthony, I. A. (2015). Impact of Structure on Organizatioal Performance of selected Technical and Service Firms in Nigeria. Corporate Ownership & Control / Volume 13, Issue 1, 2015, Continued – 10.
Pathmaranjan, R. (2004). Empowerment of Employees as A Strategy for Improving Organizational Performance - A Comparative Study Between State Sector and Private Sector Banking Institutions in Sri Lanka, Journal of Management, Vol. 2 (1), 43-52.
Perera, A. (2017). Effect of Human Capital on Productivity and Efficiency in the Banking Sector: An Exploratory Study of Sri Lanka and New Zealand, Journal of Business and Technology, Vol. 1 (1) pp. 53-64.
Perera, R. A. A, S. (2015). Human capital in the banking sector: An exploratory study of Sri Lanka and New Zealand, A Thesis for the Degree of Doctor of Philosophy in Accounting at Lincoln University.
Petrick, J. A., Scherer, R. F., Brodzinski J. D, Quinn, J. F. and Ainina J. F. (1999). Global Leadership Skills and Reputational Capital: Intangible Resources for Sustainable Competitive Advantage, Academy of Management Executive, Vol.13 (1), 58-69.
Schultz, T. W. (1961). Investment in Human Capital, The American Economic Review, Vol.51 (1),1-17.
Sekeran, U. and Bougie, R. (2014). Research Methods for Business, A Skill Building Approach, 5th Ed. New Delhi.
Smith, G. R. and Markwick, C. (2009). Employee Engagement, A review of current thinking, Institute for Employment Studies, University of Sussex Campus, UK.
Sohel-Uz-Zaman, A. S. M., Anjalin, U. and Khan, R. I. (2019). Human Capital Management: Understanding Its Implications over the Business, International Journal of Economics, Finance and Management Sciences, Vol. 7(5), pp. 170-177. doi: 10.11648/j.ijefm.20190705.13.
Srivastava, M., Franklin, A., and Martinette, L. (2013). Building a Sustainable Competitive Advantage, Journal of Technology Management and Innovation, Vol.8 (2), 47-60.
Subramony, M., Segersb, J., Chadwickc, C. and Shyamsunderd, A. (2018). Leadership Development Practice Bundles and Organizational Performance: The mediating role of human capital and social capital, Journal of Business Research Vol. 83, pp.120–129
Sujchaphone, P. (2013). Individual Human Capital and Performance : An Empirical Study in Thailand, pp. 1-181.
Nimsith, S. I., Rifas, A. H. and Cader M. J. A. (2016). Impact of Core Competency on Competitive Advantage of Banking Firms in Sri Lanka, International Journal of Scientific Research and Innovative Technology, Vol. 3 (7) 64-73.
Pathmaranjan, R. (2004). Empowerment of Employees as a Strategy for Improving Organizational Performance - A Comparative Study Between State Sector and Private Sector Banking Institutions in Sri Lanka, Journal of Management, Vol. 2 (1), 43-52.
DOI: http://dx.doi.org/10.46827/ejhrms.v4i2.799
Refbacks
- There are currently no refbacks.
Copyright (c) 2020 European Journal of Human Resource Management Studies
This work is licensed under a Creative Commons Attribution 4.0 International License.
The research works published in this journal are free to be accessed. They can be shared (copied and redistributed in any medium or format) and\or adapted (remixed, transformed, and built upon the material for any purpose, commercially and\or not commercially) under the following terms: attribution (appropriate credit must be given indicating original authors, research work name and publication name mentioning if changes were made) and without adding additional restrictions (without restricting others from doing anything the actual license permits). Authors retain the full copyright of their published research works and cannot revoke these freedoms as long as the license terms are followed.
Copyright © 2017-2023. European Journal Of Human Resource Management Studies (ISSN 2601-1972) is a registered trademark. All rights reserved.
This journal is a serial publication uniquely identified by an International Standard Serial Number (ISSN) serial number certificate issued by Romanian National Library. All the research works are uniquely identified by a CrossRef DOI digital object identifier supplied by indexing and repository platforms. All the research works published on this journal are meeting the Open Access Publishing requirements and standards formulated by Budapest Open Access Initiative (2002), the Bethesda Statement on Open Access Publishing (2003) and Berlin Declaration on Open Access to Knowledge in the Sciences and Humanities (2003) and can be freely accessed, shared, modified, distributed and used in educational, commercial and non-commercial purposes under a Creative Commons Attribution 4.0 International License. Copyrights of the published research works are retained by authors.