EFFECT OF HUMAN CAPITAL INVESTMENT ON ORGANIZATIONAL PERFORMANCE

Abstract

Based on 150 valid questionnaires, an investigation was undertaken through correlation analysis and multiple regression analysis to examine the following: the correlation between human capital investment and organizational performance, between organizational culture and human capital investment, between organizational culture and organizational performance, and finally the effect of organizational culture on the correlation between human capital investment and organizational performance. The relationship between staff training and development and internal trust relations positively correlated with organizational value. That same relationship was enhanced by organizational identification. On the other hand, the correlation between the 3 dimensions of organizational performance and the other 2 dimensions of human capital investment (staff recruitment; staff inspiration) was not influenced by the presence of either organizational identification or organizational value.