OPUS: HR Journal

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Role of Human Capital in Organizational Performance: A Theoretical Framework


Affiliations
1 Department of Management, Birla Institute of Technology, Mesra, Ranchi, Jharkhand, India
     

   Subscribe/Renew Journal


Human capital (HC) is embodied with resource relate to all competence, creativity and innovation, commitment, experience, morale and responsiveness to the organisation for which employees work individually and collectively. This pool of resources is a treasure which does attain the goals of any organisation. However, in Indian business scenario, considering human capital and its description towards organisational goal is still imprecise and thus requires a lot of attention. In present cutthroat environment, managing human capital has become a herculean task in public as well as private organisations. Human capital is to be maintained productively to support in all alarming areas. Strategic planning of human capital has thus become a need in every aspect of life. Furthermore, human capital can lead to organisational performance (OP) only if employee retention happens to be feature in the organization. Retention (RE) is a colossal affair in the corporate houses and more a strategic aspect of both public and private organisations. Strategically it is imperative to retain the best talent. Review of literature shows positive but complex linkage between human capital and organisational performance. This study is critically delved into this relationship with regard to retention of employees. This study may also be helpful for any human capital strategists enforcing exceptional good retention policies for organisational effectiveness.

Keywords

Human Capital, Organisational Performance, Retention
Subscription Login to verify subscription
User
Notifications
Font Size


  • Ajila, C., & Awonusi, A. (2004). Influence of rewards on workers performance in an organization. Journal of Social Science, 8(1), 7-12.

  • Akintayo, D. I. (2010). Work-family role conflict and organizational commitment among industrial workers in Nigeria. Journal of Psychology and Counselling, 2(1), 1-8.

  • Ali, I., Rehman, K., Ali, S. I., Yousaf, J., & Zia, M. (2010). Corporate social responsibility influences, employee commitment and organizational performance. African Journal of Business Management, 4(12), 2796-2801.

  • Amabile, T. M. (1996). Creativity in context. Westview: Boulder, CO.

  • Ambrose, M. L., & Kulik, C. T. (1999). Old friends new faces: Motivation research in the 1990’s. Journal of Management, 25(3), 231-292.

  • Arnold, E. (2005). Managing human resources to improve employee retention. Health Care Manager, 24, 132-140.

  • Avolio, B. J. (1999). Full leadership development: Building the vital forces in organizations. CA: Sage Publication, Thousand Oaks.

  • Baldoni, J. (2005). Motivation secret: Great motivation secret of great leaders. Retrieved from http://govleaders.org/motivation_secrets.htm Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99-120.

  • Bartram, D., Robertson, I. T., & Callinan, M. (2002). Introduction: A framework for examining organizational effectiveness. In I.T.

  • Robertson, M. Callinan, & D. Bartram (Ed.), Organizational effectiveness: The role of psychology. Chichester, UK: Wiley.

  • Beal, B. (2003). Teamwork – The key to staff development. Career Development International, 8(5), 235-240.

  • Becker, B. E., Huselid, M. A., & Ulrich, D. (2002). Six key principles for measuring human capital performance in your organisation. Business and Society Review, 1, 71-75.

  • Beechler, S., & Woodward, I. C. (2009). The global “war for talent”. Journal of International Management, 15(3), 273-285.

  • Bhate, R. (2013). Supervisor supportiveness, global perspectives. Findings from the generations of talent study. The Sloan Center on Aging Work, at Boston College (pp. 2-6).

  • Birt, M., Wallis, T., & Winternitz, G. (2004). Talent retention in a changing workplace: an investigation of variables considered important to South African talent. South African Journal of Business Management, 35(2), 25-31.

  • Black, H., & Wolf, A. (1990). Knowledge and competence, careers and occupational information centre/HMSO. London, UK.

  • Bogdanowicz, M., & Bailey, E. (2002). The value of knowledge and the values of the new knowledge worker: Generation X in the new economy. Journal of European Industrial Training, 26(2/3/4), 125-129.

  • Bontis, N., Keow, C. C. W., & Richardson, S. (2000). Intellectual capital and business performance in Malaysian industries. Journal of Intellectual Capital, 1(1), 85-100.

  • Bontis, N., & Fitz-enz, J. (2002). Intellectual capital ROI: A current map of human capital antecedents and consequents. Journal of Intellectual Capital, 3(3), 223-247.

  • Boudreau, J. W., & Ramstad, P. M. (2007). Beyond HR: The new science of human capital. Boston: Harvard Business School Press.

  • Bukh, P. N., Larsen, H. T., & Mouritsen, J. (2001). Constructing intellectual capital statements, Scandinavian Journal of Management, 17(1), 87-108.

  • Byars, & Rue. (2004). Human resource management (7th ed). USA: McGraw-Hill/Irwin.

  • Carmeli, A., & Weisberg, J. (2006). Exploring turnover intentions among three professional groups of employees. Human Resource Development International, 9(2), 191-206.

  • Carpenter, M. A., Sanders, W. A., & Gregersen, H. B. (2001). Bundling human capital with organizational context: The impact of international assignment experience on multinational firm performance and CEO pay. Academy of Management Journal, 4(3), 493-512.

  • Chhabra, T. N. (2008). Human resource management. Delhi, India: Dhanpat Rai and Sons.

  • Chen, Y. L. (1999). Accumulation of human capital within the organization - The perspective of intellectual capital management (PhD thesis). Graduate School of Human Resource Management, National Central University.

  • Chen, J., Zhu, Z., & Xie, H. Y. (2004). Measuring intellectual capital: A new model and empirical study. Journal of Intellectual Capital, 5(1), 195-212.

  • Coff, R. W. (1997). Getting to ‘yes’ when acquiring firms in human capital intense industries: Medium of exchange, diversification strategy, and impasse, working paper. Washington University, St. Louis, MO.

  • Coff, R., & Raffie, J. (2015). Toward a theory of firm specific human capital. Academy of Management Perspectives, 29(3), 326-341.

  • Colombo, E., & Stanca, L. (2008). The impact of training on productivity: Evidence from a large panel of firms, available at SSRN cited by M.

  • M. Nda and R. Y. Fard (2013) the impact of employee training and development on employee productivity. Global Journal of Commerce and Management Perspective, 2(6), 91-93.

  • Combs, J. G., Liu, Y., Hall, A. T., & Ketchen, D. J. (2006). Do high performance work practices matter? A meta-analysis of their effects on organizational performance. Personnel Psychology, 59(3), 501-528.

  • Crocker, A., & Eckardt, R. (2014). Multilevel investigation of individualand unit-level human capital complementarities. Journal of Management, 40(2), 509-530.

  • Crook, T. R., Todd, S., Combs, J. G., Woehr, D. J., & Ketchen, D. J. Jr. (2011). Does human capital matter? A meta-analysis of the relationship between human capital and firm performance. Journal of Applied Psychology, 96(3), 443-456.

  • CIPD Annual Report Survey. (2015). Retrieved September 1, 2017, from http:// www.cipd.co.uk/Images/learning-development_2015_tcm18-11298.pdf Decenzo, D. A., & Robbins, S. P. (2002). Fundamentals of human resource management (10th ed.). USA: John Wiley and Sons Inc.

  • Devi, R. V. (2009). Employee engagement is a two-way street. Human Resource Management International Digest, 17(2), 3-4.

  • Drucker, P. F. (2006). Managing for results. USA: Harper Collins Publishers.

  • Edwards, J. R. (1991). Person-job fit: A conceptual integration, literature review, and methodological critique. In C. L. Cooper, I. T. Robertson (Ed.), International Review of Industrial and Organisational Psychology (pp. 283-357). Chichester, UK: John Wiley & Sons, Ltd,

  • Eisenberger, R., Huntington, R., Hutchison, S., & Sowa, D. (1986). Perceived organisational support. Journal of Applied Psychology, 71(3), 500-507.

  • Eisenberger, R., & Shanock, L. (2003). Rewards, intrinsic motivation, and creativity: A case study of conceptual and methodological isolation. Creativity Research Journal, 15(2&3), 121-130.

  • Essays UK. (November 2018). Effective leadership and management styles. Retrieved from https://www.ukessays.com/essays/management/effectiveleadershipand-management-styles-management-essay.php?vref=1

  • Faustina, N. (2012). Impact of motivation of employee retention: A case study of Standard Chartered Bank Ghana Limited, PG 4131110.

  • Felstead, A., Jewson, N., Phizacklea, A., & Walter, S. (2002). Opportunities to work at home in the context of work-life balance. Human Resource Management Journal, 12, 54-76.

  • Fisher, J., & Govindarajan, V. (1992). Profit center manager compensation: An examination of market, political and human capital factors. Strategic Management Journal, 13, 205-217.

  • Fitz-enz, J. (1990). Getting and keeping good employees. In Personnel, 67, 25-29.

  • Firth, L., Mellor, D. J., Moore, K. A., & Loquet, C. (2004). How can managers reduce employee intention to quit? Journal of Managerial Psychology, 19(2), 170-187.

  • Friedman, B., Hatch, J., & Walker, D. M. (1998). Delivering on the promise: How to attract, manage and retain human capital. New York, NY: The Free Press.

  • Gentry, A. W., Kuhnert, W. K., & Mondore, P. S. (2007). The influence of supervisory support climate and unemployment rate on part-time employee retention: A multilevel analysis. Journal of Management Development, 26(10), 1005-1022.

  • Gilbert, T. (1996). Human competence: Engineering worthy performance (2nd ed) Silver Springs, MD, International Society for Performance Improvement.

  • Global Leadership Forecast. (2014/15). Ready-Now Leaders: 25 Findings to meet tomorrow’s Business Challenges, The Conference Board, DDI. Retrieved September 1, 2017, from www.ddiworld.com/DDI/ media/trend-research/global-leadership-forecast-2014 2015_tr.ddi.pdf.

  • Globoforce WorkHuman Research Institute. (2016) Retrieved from July 29, 2017, from http://www.globoforce.com/wpcontent/uploads/2016/ The_Employee_Experience_Index.pdf

  • Gunz, H.. & Gunz, S. (2007), Hired professional to hired gun: An identity theory approach to understanding the ethical behaviour of professionals in non-professional organizations. Human Relations, 60(6), 851-887.

  • Guthridge, M., Komm, A. B., & Lawson, E. (2008). Making talent a strategic priority. The McKinsey Quarterly, 1, 49-59.

  • Haider, M. A., Rasli, C. S., Akhtar, R. B. M., Yusoff, O. M., Malik, A., Aamir, A., Arif, A. N., Arif, S., & Tariq, F. (2015). The impact of human resources practices on employee retention in the telecom sector. International Journal of Economics and Financial Issues, 5, 63-69.

  • Haldar, U. K. (2011). Human resource development. New Delhi, India: Oxford University Press.

  • Harathova, P. (2009). Enterprise; Performance and business processes, perspectives of innovations, economics and business. Human Resource Journal, 3(1), 77-83.

  • Hayat, M., Khalid, G. K., & Malik, A. (2010). Job satisfaction among national highway authority employees. International Review of Business Research Papers, 6(1), 319-330.

  • Heathfield, S. M. (1995). Top ten ways to retain your great employees. Retrieved May 23, 2010, from http://www.humanresources.about.com/od/retention/a/more.htm Henderson, R., & Cockburn, I. (1994). Measuring competence? exploring firm effects in pharmaceutical research. Strategic Management Journal, 15(2), 63-84.

  • Herman, R. E. (2005). HR managers as employee-retention specialist. Employment Relations Today, 32, 1-7.

  • Hofstede, G. (1980). Culture consequences: International differences in work-related values. Beverly Hills, CA: Sage Publication.

  • Holt, D. H. (1993). Management: Concept and practices. Englewood Cliffs, New Jersey: Prentice Hall.

  • Holweg, M. (2005). The three dimensions of responsiveness. International Journal of Operations & Production Management, 257(7), 603-622.

  • Hoyt, J., Huq, F., & Kreiser, P. (2007). Measuring organizational responsiveness: The development of a validated survey instrument. Management Decision, 45(10), 1573-1594.

  • Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38(3), 635-672.

  • Human Capital Consulting. (April, 2015). Annual Compensation and Benefits Trends Survey, Deloitte, India, FY-201516, p. 20. Retrieved September 1, 2017, from, http://www2.deloitte.com/content/dsm/ Deloitte/in/Documents/human-capital/in-hc-deloitte-india-annualcompensationtrends-survey-report-fy-2016-noexp.pdf

  • Hunjra, A. I., Ali, M. A., Chani, M. I., Khan, H., & Rehman, K. (2010). Employee voice and intent to leave: An empirical evidence of pakistani banking sector. African Journal of Business Management, 4(14), 3056-3061.

  • Ichniowski, C., Shaw, K., & Prennushi, G. (1997). The effects of human resource management practices on productivity: A study of steel finishing lines. American Economic Review, 87(3), 635-672.

  • Irshad, M. (2011). Factors affecting employee retention: Evidence from literature review. Abasyn Journal of Social Sciences, 4(1), 84-102.

  • Jacobs, R. (2001). Managing employee competence in global organizations. In J. Li. X. Kidd, & F. Richter (Ed.). Maximizing Human Intelligence Deployment in Asian Business, New York: Palgrave.

  • Kaliprasad, M. (2006). The human factor I: Attracting, retaining, and motivating capable People. Cost Engineering, 48(6), 20-26.

  • Karanja, J. W. (2014). Effects of corporate culture on organisational performance. IOSR Journal of Mathematics, 10(6), 59-65.

  • Khan, R. I., Aslam, H. D., & Lodhi, I. (2011). Compensation management: A strategic conduit towards achieving employee retention and job satisfaction in Banking sector of Pakistan. International Journal of Human Resource Studies, 1(1), 89-97.

  • Kogut, B., & Zander, U. (1996). What firms do? Coordination, identify and learning. Organisational Science, 7(5), 502-519.

  • Kontoghiorghes, C., & Frangou, K. (2009). The association between talent retention, antecedent factors, and consequent organizational performance. S.A.M Advanced Management Journal, 74(1), 29-36.

  • Kottke, J. L., & Sharafinski, C. E. (1988). Measuring perceived supervisory and organizational support. Educational and Psychological Measurement, 48, 1075-1079.

  • Kroon, B., & Freese, C. (2013). Can HR practices retain flex workers with their agency? International Journal of Manpower, 34, 899-917.

  • Kuklys, W. (2005). Amartya Sen’s capability approach: Theoretical insights and empirical applications, 17, 116. Springer.

  • Kyndt, E., Dochy, F., Michielsen, M., & Moeyaert, B. (2009). Employee retention: Organizational and personal perspectives. Vocations and Learning, 2, 195-215.

  • Lawler, E. E. (2003). Managing change. Vision to Venture: Work Team Coaching Bi-Weekly, 1(21).

  • Leidner, S. L., & Smith, S. M. (2013). Keeping potential job - hoppers’ feet on ground. Human Resource Management International Digest, 21, 31-33.

  • Lepak, D. P., & Snell, S. (1999). The human resource architecture: Toward a theory of human capital allocation and development. Academy of Management Review, 24, 31-48.

  • Linz, S. J., Good, L. K., & Huddleston, P. (2006). Worker morale in Russia: An exploratory study. Journal of Managerial Psychology, 21(5), 415-437.

  • Lo, M., Ramayah, T., & Min, H. W. (2009). Leadership styles and organizational commitment: A test on Malaysia manufacturing industry. African Journal of Marketing Management, 1(6), 133

  • Lowry, D. S., Simon, A., & Kimberley, N. (2002). Toward improved employment relations practices of casual employees in the New South Wales registered clubs industry. Human Resource Development Quarterly, 13(1), 53-69.

  • Marchington, M., & Wilkinson, A. (1997). Core personnel and development, Institute of Personnel and Development (pp. 23-24). London.

  • McGrath, G. R., & MacMillan, I. C. (2000). Entrepreneurial mindset: Strategies for continuously creating opportunity in an age of uncertainty. Boston, MA: Harvard Business School Press Books.

  • Jones, H. H., & Beth, A. (2001). The war for talent. Boston, Massachusetts, USA: Harvard Business School Publishing.

  • Miller, S. J., Hickson, D. J., & Wilson, D. C. (1996). Decision making in organizations. In S. R. Clegg., C. Hardy, & W. R. Nord. (Ed.), Managing Organizations: Current Issues (pp. 43-62). London: Sage Publications.

  • Mintzberg, H., & Waters, J. (1990). Studying deciding: An exchange of views between mintzberg and waters, Pettigrew and Butler. Organization Studies, 11, 1-16.

  • Mintzberg, H. (1973). The nature of managerial work. New York: Harper and Row.

  • Missouri State Government, A Guide to the Perform Process, Employee Performance Planning and Appraisal. (2017). In Office of Administration, Division of Personnel, Center for Management and Professional Development, USA. Retrieved May 04, 2017, from http://perform.mo.gov/pdf

  • Moncarz, E., Zhao, J., & Kay, C. (2009), An exploratory study of US lodging properties’ organizational practices on employee turnover and retention. International Journal of Contemporary Hospitality Management, 21, 437-458.

  • Montgomery, J. D. (2006). The relationship between training and retention in a volunteer organization (PhD dissertation). Auburn, Alabama, Auburn University, pp. 72-77.

  • Mumford, M. D. ,& Gustafson, S. B. (1988). Creativity syndrome: Integration, application, and innovation. Psychological Bulletin, 103, 27-43.

  • Omotayo, O. A., Esther, O. A., & Ibiyinka, O. S. (2014). Career development as a determinant of organizational growth: Modelling the Relationship between these constructs in the Nigerian banking Industry, American International Journal of Social Science, 3(7), 67-76.

  • Ontario. (2004). Long term care facility worker retention. Ministry of Health and Long-term care, recruitment and retention tactics for the long-term care facility sector, Recruitment and retention tactics for the long-term care (27.3K), Ministry of Health and Long-Term Care (Report No. Learning Series, Booklet 4).

  • Papulova, Z., & Mokros, M. (2007). Importance of managerial skills and knowledge in management for small entrepreneurs, e-leader, Prague. Retrieved from http://www.g-casa.com (Accessed on 01 February 2016)

  • Pennings, J. M., Lee, K., & Witteloostuijn, A. (1998). Human capital, social capital, and firm dissolution. Academy of Management Journal, 41(4), 424-440.

  • Pfeffer, J. (1994). Competitive advantage through people. Boston: Harvard Business School Press.

  • Ployhart, R. E., Nyberg, A. J., Reilly, G., & Maltarich, M. A. (2014).Human capital is dead; long live human capital resources! Journal of Management, 40(2), 371-398.

  • Post, J. E., Lawrence, A. T., & Weber, J. (2002). Business and society: Corporate strategy, ethics, public policy (10th ed). New York: McGraw-Hill.

  • Prince, B. J. (2005). Career-focused employee transfer processes. Career Development International, 10, 293-309.

  • Rao, P. S. (2014). Personnel and human resource management (5th ed.). Mumbai, India: Himalaya Publishing House Pvt. Ltd.

  • Robbin, S. P., Judge, T. A., & Vohra, N. (2013). Organizational behavior (14th ed). New Delhi, India: Prentice Hall.

  • Roos, R., & Roos, J. (1997). Measuring your company’s intellectual capital performance. Long Range Planning, 30(30), 413-426.

  • Rowe, W. G. (2001). Creating wealth in organizations: The role of strategic leadership. Academy of Management Executive, 15, 81-94.

  • Russell, T. C., Todd, S. Y., Combs, J. G., & Woehr, D. J. (2011). Does human capital matter? A meta-analysis of the relationship between human capital and firm performance. Journal of Applied Psychology, 96(3), 443-456.

  • Sanyal, S., & Hisam, M. W. (2018). The impact of teamwork on work performance of employees: A study of faculty members in Dhofar University. IOSR Journal of Business Management, 20(3), 15-22.

  • Saleem, S., & Amin, S. (2013). The Impact of organizational support on employee performance: An empirical study from Pakistani academic sector. European Journal of Business and Management, 5(5), 194-207.

  • Schroeder, K. (2008). Competence Literature Revire. Retrieved December 07, 2017, from http://www.cc-institute.org/docs_upload/competence_lit_review.pdf

  • Sheridan, J. E. (1992). Organisational culture and employee retention. The Academy of Management Journal, 35(5), 1036-1056.

  • Shin, Y. (2004). A person-environment fit model for virtual organisations. Journal of Management, 30(5), 725-743.

  • Siddiqi, Z., Hussain, A., Basit, S. A., & Nasim, S. (2015). Relationship between interpersonal skills, analytical skills and career development. International Journal of Management Sciences and Business Research, 4(4), 14-19.

  • Simon, H. A. (1960). The new science of management decisions. New York: Harper and Row.

  • Skaggs, B. C., & Youndt, M. A. (2004). Strategic positioning, human capital, and performance in service organization: A customer interaction approach. Strategic Management Journal, 25(1), 85-99.

  • Sloan, M. M. (2012). Unfair treatment in the workplace and worker wellbeing: The role of co-worker support in a service work environment. Work Occupation, 39, 3-34.

  • Stradinger, H. J. (2015). Creativity in the workplace and its effect on employee retention (Published PhD. thesis). Texas Christian University, Fort Worth, TX.

  • Tahir, N., Khan, Y. I., Jan, S., & Hashim, M. (2014). The Impact of Training and development on Employees Performance and Productivity: A case study of United Bank LimitedPeshawar City, KPK, Pakistan. International Journal for Academic Research in Business and Social sciences, 4(4), 86-98.

  • Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management, Strategic Management Journal, 18, 509-533.

  • Watson, T. (2016). Total Reward Survey - India, Data, Analytics, Insights and Experience from a Market Leader, 1-4.

  • Tripathi, A. (2014). Workplace environment: Consequences on employees. Retrieved August 05, 2015, from http://www.linkedin.com/pulse

  • Tumwesigye, G. (2010). The relationship between perceived organizational support and turnover intentions in a developing country: The mediating role of organizational commitment. African Journal of Business Management, 4(6), 942-952.

  • Ulrich, D. (1998). Intellectual capital= competence × commitment. Sloan Management Review, 39(2), 15-26.

  • Ulrich, D., Zenger, J., & Smallwood, N. (1999). Results-based leadership. Boston: Harvard Business School Press.

  • Vaiman, V. (2008). Retention management as a means of protecting tacit knowledge in an organization: A conceptual framework for professional services firms. International Journal of Learning and Intellectual Capital, 5(2), 172-185.

  • Vasantham, S. T. (2014). Employee morale and employee retention. IPASJ International Journal of Management, 2(11), 1-2.

  • Vos, A. D., & Meganck, A. (2009). What HR managers do versus what employees’ value: Exploring both parties’ views on retention management from a psychological contract Perspective. Personnel Review, 38(1), 45-60.

  • West, M. A. (2002a). Sparkling fountains or stagnant ponds: An integrative model of creativity and innovation implementation in work groups. Applied Psychology: An International Review, 51, 355-387.

  • West, M. A. (2002b). Ideas are ten a penny: It’s team implementation not idea generation that Counts. Applied Psychology: An International Review, 51, 411-424.

  • While, A. E. (1994). Competence versus performance: Which is more important? Journal of Advanced Nursing, 20, 525-531.

  • Wood, S. (1999). Human resource performance and performance. International Journal of Management Reviews, 1, 367-413.

  • Workforce Planning for Wisconsin State Government. (2005). Employee Retention. Retrieved December 08, 2017, from http://workforceplanning.wi.gov/category.asp?linkcatid=15&linkid=18

  • Wright, P. M., & McMahan, G. C. (2011). Exploring human capital: Putting “Human” back into strategic human resource management. Human Resource Management Journal, 21(2), 93-104.

  • Youndt, M. A., & Snell, S. A. (2004). Human resource configurations, intellectual capital, and organizational performance. Journal of Managerial Issues, 16(3), 337-360.

  • Zamecnik, R. (2014). The measurement of employee motivation by using multi-factor statistical analysis. Procedia Social and Behavioural Sciences, 109, 851-857.

  • Zhu, W., Chew, I. K. H., & Spangler, W. D. (2005). CEO transformational leadership & organizational outcomes: The mediating role of humancapital- enhancing human resource management. The Leadership Quarterly, 16(1), 39-52.


Abstract Views: 99

PDF Views: 0




  • Role of Human Capital in Organizational Performance: A Theoretical Framework

Abstract Views: 99  |  PDF Views: 0

Authors

Sujata Priyambada Dash
Department of Management, Birla Institute of Technology, Mesra, Ranchi, Jharkhand, India
Supriyo Roy
Department of Management, Birla Institute of Technology, Mesra, Ranchi, Jharkhand, India

Abstract


Human capital (HC) is embodied with resource relate to all competence, creativity and innovation, commitment, experience, morale and responsiveness to the organisation for which employees work individually and collectively. This pool of resources is a treasure which does attain the goals of any organisation. However, in Indian business scenario, considering human capital and its description towards organisational goal is still imprecise and thus requires a lot of attention. In present cutthroat environment, managing human capital has become a herculean task in public as well as private organisations. Human capital is to be maintained productively to support in all alarming areas. Strategic planning of human capital has thus become a need in every aspect of life. Furthermore, human capital can lead to organisational performance (OP) only if employee retention happens to be feature in the organization. Retention (RE) is a colossal affair in the corporate houses and more a strategic aspect of both public and private organisations. Strategically it is imperative to retain the best talent. Review of literature shows positive but complex linkage between human capital and organisational performance. This study is critically delved into this relationship with regard to retention of employees. This study may also be helpful for any human capital strategists enforcing exceptional good retention policies for organisational effectiveness.

Keywords


Human Capital, Organisational Performance, Retention

References