Human Capital Development and Organizational Performance: A Conceptual Review

The business environment within which organizations compete is becoming more hyper-competitive given fast technological advancement and globalization. Organizations need to create and sustain competitive advantages to survive. Organizations that thrive are those that can create capabilities and competencies that are hard to come by, difficult to imitate, non-substitutable and able to create substantial value for their clientele. The attainment of such a feat requires the systematic development of its human capital as it represents the most dynamic resource among all the resources owned by the organization. Developed human capital creates value and generates revenue, able to spot opportunities and take advantage of them, able to develop and implement strategies that make the organization a market leader, and ultimately optimizes organizational performance. Human capital consists of knowledge, skill, and experience. Human development is achieved through coaching, training, and development, empowerment, delegation, and participation.