The Impact of Investing in Human Capital in Employees Performance

Yusuph, Sheraly (2015) The Impact of Investing in Human Capital in Employees Performance. Masters thesis, The Open University Of Tanzania.

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Abstract

This study investigated on the impact of investing in human capital on employees’ performance success in Tanzania, using a case study of the National Microfinance Bank (NMB) Mkwawa Branch in Iringa Region. Specifically to: assess the relationship between human capital investments and employees performance, determine the impact of human capital potential on the performance of employees at the study area and finally examine the relationship between educational development and employees’ performance. The research employed exploratory research and descriptive research designs. It also combined quantitative as well as qualitative research approaches. The questionnaires was used, Probability and simple random sampling techniques were deployed in data collection. The total number of selected respondents in this study were 45 and were all obtained from NMB Mkwawa branch. Quantitative data and qualitative were analysed through the use of content analysis The findings of the study indicated that there is a relationship between human capital investment and performance of the NMB Mkwawa Branch. This was most apparently reflected in the extent to which the bank was promoting stuff development through further education, training and workshops. The study also disclosed that investing in human capital has long term and sustainable outcomes such as enhancing customers trust due to improvement of service delivery. The study recommends that there is a need of promoting in-service training and further education related to career advancement particularly among employees working with financial institutions. These training lead to optimization of human labour which ultimately translates to increased organization production performance.

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