Effect of human capital investment on employee performance in Jaramogi Oginga Odinga teaching and referral hospital in Kisumu county Kenya

Abstract

Human capital is getting wider attention with increasing globalization and also the saturation of the job market due to the recent downturn in the various economies of the world. In knowledge based industries, continuous human capital investments are essential for firms to enhance capabilities and sustain competitive effective human capital investment on employee performance introduced the view that education and training represent investment in future productivity and not just consumption of resources. In this perspective, firm and workers alike depend on investments in human capital to increase competitiveness, profits, and pay. An organization can only achieve all its objectives through investing in its employees. The nature of Human Capital Investment on employees in Jaramogi Oginga Odinga teaching and referral hospital is therefore key to the effective management of the institution. Past studies have attributed to contributions of Human Capital Investment to the organizations performance. However, not all previous studies have focused on how Human Capital Investment has contributed to employees’ performance. It is for this reason that this study sought to examine the effect of Human Capital Investment on employee performance in Jaramogi Oginga Odinga Teaching and Referral Hospital in Kisumu County. Specifically the study sought to: examine the effect of employee Training and Development: determine the effect of Employee commitment: and to ascertain the effect of Knowledge Management on Employee Performance in Jaromogi Oginga Odinga Teaching and Referral Hospital in Kisumu County Kenya. The study was guided by Human capital theory. Correlational research design was adopted. The population was seven units of employees of the referral hospital. A sample of 136 employees were chosen for sample study. Data sources were both primary and secondary. Primary data was collected using structured questionnaire. Validity of the instruments was ascertained through expert opinion and revision. Data was analyzed using regression analysis to determine effect of Human Capital Investment on employee performance. The findings revealed that knowledge management had a positive significant effect on performance (β=.445, p=.000), employee commitment had a positive significant effect on performance (β=.219, p=.021) but training and development did not have a significant effect on performance. In overall, human capital investment accounted for 35.1% change in employee performance (R2=.351, F(3, 132)=23.772, p=.000). The study concluded that knowledge management has a positive effect on performance, employee commitment has a positive effect on performance but training and development does not have an effect on performance. The study therefore recommended that that the Hospital improve their training and development among the employees to improve their performance. The findings of the study should help the health institution to plan on employee investment that will lead to increased service delivery, quality work and effective research that will be relevant to the upgrades of the health institution. Researchers may also pursue further research from this study