THE IMPACT OF HUMAN CAPITAL DEVELOPMENT ON BUSINESS SUCCESSES

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INTRODUCTION

There are a lot of significant elements that contribute to the growth and expansion of a company, commercial enterprise, or organization. The interest in this study work is based on the quality of goods and services that are provided to customers or consumers. This interest begins with the location of the business and extends all the way through the demand and supply of goods and services (quality of service delivery). Any proprietor of a company firm, but especially one operating in an environment and during a time of year when competition is high, needs to keep in mind that other proprietors operating in the same industry are intent on turning a profit. Therefore, in order to overtake the leader, one must take into consideration the quality of the products and services that are offered and rendered to the customers. In light of this, ensuring the health and safety of one’s workforce or employees is of the utmost importance.

These days, the staff of every and every company is something other than “human capital.” A company’s level of human capital is one of the factors that determines whether or not it will generate a profit, even in high quantities, or whether it will instead operate at a loss. This study, thus, focuses on the benefits (effect) of developing human capital as a panacea for any successful firm. Specifically, this research examines: In addition to this, it will investigate various methods for boosting human capital development programs. The individuals who work for a corporation are considered to be its human capital because their success is increasingly associated with the talents they possess in many areas of production. In times of robust economic activity, those with specialized expertise have the ability to command a higher base wage. The unemployment rate is still rather high across the globe, and businesses are finding it challenging to fill positions that call for specialized knowledge and skills.

Companies in today’s global market are formed of rivals from various fields, despite the fact that the market is global. It is essential for businesses to truly utilize their personnel as a competitive weapon in order to achieve the goal of gaining a competitive edge. A strategy for increasing the productivity of the workforce in order to generate more value for the companies has emerged as a key focus. Companies strive to maximize the potential of their workforces by participating in all-encompassing human capital development programs. This is done not only to accomplish their corporate objectives, but also, and perhaps more importantly, to ensure their continued existence in the long term. To be successful in this endeavor, businesses will need to make investments in order to guarantee that their workforce is equipped with the information, skills, and competences necessary to perform their jobs effectively in an environment that is both dynamic and complicated.

As a result of the developments, the majority of businesses have come to accept the idea that human capital represents a good competitive advantage that will boost better levels of performance. The development of human capital becomes an integral component of an overarching endeavor to improve both business performance and cost-effectiveness. As a result, businesses have a duty to have an understanding of human capital, as this will boost employee happiness and overall performance. Despite the widespread belief that investments in human capital have a beneficial impact on the performance of businesses, the concept of performance as it relates to human capital is still, for the most part, untested. As a result, the purpose of this study is to investigate the relationship between human capital and the performance of firms in the field of development economics. In light of this, the following research question serves as a framework for our investigation: How much of an impact does human capital have on the performance of a company?

This study examines one of the components, namely human capital, which contributes to performance. The majority of the argument in the existing body of research focuses on the factors that contribute to performance. Performance in business is an issue that arises frequently in any organization in Malaysia, particularly in this new age of globalization, where innovativeness and competitiveness are seen to be norms that go hand in hand with performance. This research article, which is based on previous studies, starts out by defining the ideas of human capital and company performance. Following this, an examination of the human capital theory and the connection between that theory and company performance is conducted. In the last section, we will develop the model, and we will draw a conclusion regarding the significance of human capital as a pillar in future study of business performance.

According to Sullivan and Steven (2013), human capital development is the process of recruiting, supporting, and investing in people through the means of education, training, coaching, mentoring internships, organizational growth, and the management of human resources. In the context of organizations and businesses, human capital development is the practice of recognizing that the development and progress of people within those contexts are a vital and crucial asset to the future success of the companies. According to the definition provided by Healthfield (2011), human capital development is the process of assisting workers in the growth of their individual and organizational capabilities, knowledge, and skills. According to her, human capital development comprises a variety of different options, including employee training, employee

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