CHAPTER ONE

INTRODUCTION

1.1 Background to the study

Employees are major assets of any organization. The active role they play towards an organizational success cannot be underestimated. As a result, equipping these unique assets through effective human capital management becomes imperative in order to maximize the job performance, attain organizational goals and also position them to take on the challenges of today’s global competitive business climate.However, in recent times, many organizations employee human capital as much as possible but are unable to meet organizational goals and objectives. The case of educational system in Nigeria is worth discussing. Majority are going into the teaching line yet the performance of the sector is going down. In the banking sector for instance, human capitals are being employed frequently and in large numbers, yet most banks cannot meet their targets and their deposits and profits are depreciating in amounts.

Human capital is considered as one of the core components of intellectual capital and is a critical resource in anorganization.Accordingto Bontis, Koew and Richardson (2000), it is not enough for organizations to hire and promote the brightest individuals they find but they should nurture and support them into developing and sharing their potentials through training and learning to positively affect and increase the organizational performance.Nations, organizations and individuals increasingly recognize that training, high levels of skill and competence are essential to future security and success. It is obvious that as individuals are appraised, acquire more skills and training during a lifetime, performanceandefficiency as well as creativityareachieved.Apparently, there is an established linkage between human capital elements and organizational goal attainment but the economic value of human capital cannot be questioned. According to Starbuck (1992, Hassen 1995), an important concern among scholars is what type and how much human capital is required to create a competitive advantage for organizations.

Improving the quality and relevance of human capital management would enable organizations to better understand their overall “people-related” strengths and weaknesses and identifying areas for improvement. When organizationshavemuchbetterskilledandcreativeemployeesitcaneasilyavoidwastefulinvestmentandimproveitsefficiencyandperformance. Training,then becomesthemostimportantpartofhumancapitalmanagementfunctionforeffectiveuse ofhumanresource. Today, everyoneadmitsthevalueoftrainingasamajorinfluenceonsuccessoftheorganization.Trainingenhances knowledgeandinformationaboutacertainfieldandalsoaddsadvantagetonetworkingforefficiencyandperformanceofemployees.Humancapital element isthemostvaluableassetineveryorganization; as withthemachines,materialsandthemoney, absolutelynothinggetsdonewithoutemployees.Trainingtherefore,isreallyahumancapitaldevelopmentinwhichknowledge, skillsandbehaviorarerequiredbyemployeestoperformadequatelyonanassignedtaskorjob.Trainingcantakeplaceinnumerousways,onthejoboroffthejob;intheorganizationoroutsideorganization.

1.2 Brief History of Akwa Ibom State Civil Service Commission

TheAkwa Ibom State Civil ServiceCommissionis an agency of Government established under the 1999 constitution of the Federal Republic of Nigeria under Section 197 and part IIA of the Third Schedule.The Commission’s history could be traced to December 1987 shortly after the State was created from the Cross Rivers State with Chief Nyong U. Usen as a pioneer Chairman.

The functions of the commission are spelt out in the Constitution of the Federal Republic of Nigeria. Apparently, the Commission’s statutory functions and powers include appointment, promotion and discipline of civil servants in the State Civil Service.As an appellate body, the commission meets every Thursday of the week to consider petitions/complaints emanating from Ministries and Extra-ministerial Departments. In addition, members of the commission serve as observers in senior staff management committee meetings in Ministries/Extra-ministerial Departments.

Other areas of the Commission’s activities cover responsibility for: (i) Advancement (ii) Contract appointments (iii) Transfer of service/secondment (iv) Serving as an appellate body for all petitions from the service (v) Maintaining comprehensive and up- to- date personnel records (vi) Regulating the operations of the Civil Service through provision of service guidelines and circulars and (vi) Monitoring the activities of ministries and extra-ministerial Departments in order to ensure maintenance of standards, uniformity and adherence to guidelines in the State.

1.3 Statement of the Problem

InNigeria, organizationsarefacinglotsofproblems of high rate of staff turnoverandemployees’ ineffective performance. This isnot unconnectedtolackofmotivationandlowemployees’ appraisal and satisfaction level. Itisagreedbyanumber ofauthorsthatatrainingneedoccurswhen there isashortfallinoverallperformance of organization(Okanya,2008).  Moreover, organizationsworkwith variety ofstaffmembersnotonlyforimprovementconnectedwithstaffmembersbutwithorganization’s effectiveness as well. It is obvious that human resource programs enhance the employees’ performance and organizational goal attainment.

Many organizations in Nigeria, for instance, Akwa Ibom State Civil Service Commission is faced with a myriad of challenges relating to poor human capital management. The challenges range from defectiverecruitmentmethods, recruitment of wrong personnel to certain positions of responsibilities, assignment of the right jobs to wrong and unqualified/nonprofessionals in such areas of assignment thereby putting a round peg in a square hole, thus wasting both financial and non-financial resources of the organization.

Another problem of human capital management and how it affects organizational performance is poor management of personnel.Wherethehumancapitalisnot wellmanaged,organizations are likelyconfrontedwiththedifficultyinthedevelopmentandtrainingofhighlytalented personnel.This will subsequently lead to inefficiency and ineffectiveness in organization’s productivity.

Otherproblemsaretheinabilitytoproviderealisticstaffing projections andtheinabilitytoutilizeresourceseffectivelyandefficiently.This is evident in publicsectorwhereinefficiencyandineffectivenessaboundandtheerraticsupplyofbasicsocialamenitiesseemstoimplytheabsenceofproperhumancapital management processes.On the basis of the aforementioned, this work was designed to examine how human capital management could lead to organizational goal attainment ty.ectiveness in organization'toor management of personnel.ibilities , assignment of the right jobs to wrong and unqin Akwa Ibom State Civil Service Commission.

1.3 Objectives of the Study

The main objectiveof this study is to examine howhuman capital management could lead to organizational goal attainment ty.ectiveness in organization'toor management of personnel.ibilities , assignment of the right jobs to wrong and unqin Akwa Ibom State Civil Service Commission. Other Specific objective includes:

i.                    To identify the nature and concept of human capital management in Akwa Ibom State Civil Service Commission.

ii.                  There is no significant relationship between training and employees’ productivity/ efficiency in Akwa Ibom State Civil Service Commission.

iii.                 To established the relationship between human capital management and productivity in Akwa Ibom State Civil Service Commission.

iv.                Is there any relationship between the employees years of experience and productivity in Akwa Ibom State Civil Service Commission

v.                  Is there any relationship between the employees’ educational qualification and productivity in Akwa Ibom State Civil Service Commission?

vi.     To make recommendations on how to improve human capital management so as to enhance organizational performance.

1.4 Research Questions

The following research questions were formulated to guide the study:

i.                    What is the nature and concept of human capital management in Akwa Ibom State Civil Service Commission?

ii.                  There is no significant relationship between training and employees’ productivity/ efficiency in Akwa Ibom State Civil Service Commission.

iii.                Is there any relationship between human capital management and productivity in Akwa Ibom State Civil Service Commission?

iv.                Is there any relationship between the employees years of experience and productivity in Akwa Ibom State Civil Service Commission

1.5     Research Hypotheses

From the objectives of the study, the following hypotheses were formulated for this study:

i.                    There is no significant relationship between training and employees’ productivity/ efficiency in Akwa Ibom State Civil Service Commission.