HUMAN CAPITAL, EMPLOYEE EMPOWERMENT AND ORGANIZATION PERFORMANCE
HUMAN CAPITAL, EMPLOYEE EMPOWERMENT AND ORGANIZATION PERFORMANCE
Jocelyne S. - University of Nairobi, School of Business, University of Nairobi, Kenya
ABSTRACT
While organizations have traditionally stressed on the use of financial resources, the dynamic and competitive business industry is pushing firms to reexamine the way they manage human capital. Given the importance of human capital resources and employee empowerment to performance in an ever-changing global environment, it is timely to examine whether human capital resource complementarities such as employee empowerment contribute differently to organizational performance. The purpose of the study is to determine the relationship between human capital, employee empowerment and organization performance. The study was guided by three specific objectives: to analyze the link between human capital and performance; to assess the mediating effect of employee empowerment on the relationship between human capital and performance; and to analyze the joint effect of human capital, employee empowerment and organizational performance. The human capital theory, resource-based view theory and Kanter’s structural empowerment theory will anchor the study. A qualitative approach was employed. Data was collected qualitatively using secondary sources. The study reveal that human capital is directly associated with performance. The study revealed that employee empowerment has both a direct and mediating impact on the link between human capital and performance. Lastly, the study revealed that there exists a combined link between human capita, employee empowerment and organizational performance. This study will be crucial to policymakers since it will provide a framework from which effective and efficient human management practices are built. In addition, the study will be of importance to organizations since it will help them in improving their performances by effectively practicing human capital practices and employee empowerment strategies.
