Human Capital Development and Organisational Competitiveness: A Theoretical Approach

International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue IX, September 2021 | ISSN 2454–6186

Human Capital Development and Organisational Competitiveness: A Theoretical Approach

Kelvin N. Agbakwuru^1*, Oluwatobiloba M. Gbadero^2
1PhD Student at Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria
²Master’s Student (M.Sc.) Marketing Management, Eastern Mediterranean University

Abstract: With the high level of competition in this knowledge-based economy, organisations are on a quest to increase their competitive edge over their various counterparts. This study examines the role human capital development plays in helping organisations achieve this feat. A theoretical approach was involved and the study was done via the perspectives of human capital and resource-based theories. The study concluded that the implementation of human capital development activities like training, development, education contributes greatly to the competitiveness of an organisation and recommends that organisations take seriously the development of their human capital if they are to survive the harsh competition prevalent in the Nigerian business environment.

Keywords: Human capital, training, development, education, human capital development, organisational competitiveness.

I. INTRODUCTION

The business world, over the years has transited from the industrial age into what is known as the knowledge-based economy where knowledge is highly valued and can be traded for economic gains. This phenomenon has escalated the rate of competition existing in the business world as organisations are on a continuous quest to access individuals who possess the right knowledge that can put them at a competitive advantage. This accounts for why a high degree of importance is attached to the human resource management (HRM) unit.
Sourcing for the right embodiment of knowledge that can add value to the organisation is a skill that only the HRM unit can provide. These embodiments of knowledge are referred to as human resources while the knowledge, skills, abilities, and competencies they possess refer to what is called human capital. Human capital is the summation of the skill, knowledge, creativity and health of an individual (Becker, 2002). It is an intrinsic value an individual has to offer to an organisation.

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