Human Capital Development as Propeller for Increased Organization Productivity

Abstract

There are several existing studies that link human capital to organizational productivity, but few of them concentrate on the small business environment. Human capital development is the theme of this study, which aims to boost organizational productivity. The days of applying general principles to business operations are long gone, and any company that continues to rely on trial and error will definitely be operating at a competitive disadvantage in this constantly evolving business environment indicating that in this fiercely competitive business environment; it will be difficult for the company to survive and compete favorably. Organizations must have clear and firmly established plans and programs to help and encourage employees to acquire organizational learning capacity to increase knowledge acquisition and prevent the deterioration of the employees' skills and capacity; some special programs must be designed to train them both on the job and before the job based on their field of expertise. Therefore, in order to gain a competitive edge and improve overall organizational performance, business owners and policymakers must prioritize their organization's staff by ensuring that they are trained and developed to better fit into the current demands on how operations should be carried out. Although investing in human capital entails an initial financial cost, the benefits that follow from doing so are indisputable. Therefore, it is suggested for business owners and decision-makers to spend money on developing their human resources.