Effect of human capital investment on organizational performance of pharmaceutical companies in Kenya
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Date
2015-11
Authors
Odhon’g, Emily A.
Omolo, Jacob
Journal Title
Journal ISSN
Volume Title
Publisher
European Centre for Research Training and Development UK
Abstract
Provision of adequate health care services to their population remains a major
challenge for governments in Africa. In Kenya, the number of trained Pharmacists is increasing
with time but still insufficient relative to the population in need (one pharmacist for every 8,710
persons, or approximately 0.1 per 1000 persons. Kenya had about 8 pharmacists for every
100,000 people). It was estimated that for the country to meet its health related Millennium
Development Goals, the pharmacy workforce needed to grow by 28 per cent annually between
2010 and 2015. Whereas, Kenya’s population is estimated to be 43 million (provisional) in 2014,
the number of registered pharmacist in 2013 was 2,202 and rose to 2,355 with a ratio of 5
pharmacists per 100,000 persons. In summary we have approximately 5:100,000, meaning 5
pharmacists to 100,000 persons, while the requirement is approximately 1:10000, meaning 1
pharmacist to 10000 persons. The current numbers of pharmacists are not adequate for
achievement of the post-2015 Sustainable Development Goal 3. The study sought to establish the
effect of Human Capital Investment on Organizational Performance of Pharmaceutical
Companies in Kenya. The independent variables include: training, education, knowledge
management and skills development. The main underpinning theories in this study include:
Human Capital, Skill Acquisition and Sustainable Resource Theory. 200 observations were used
in the study. Study used questionnaires in data collection, descriptive and inferential statistics
used in the analysis. The found a positive significant relationship between human capital
investment and organizational performance. The study recommends provision of quality
education, relevant training linked to industry requirement, the study suggest adoption of
German Dual Vocational Education and Training system to facilitate and strengthen linkage
between education sector and the industry. Promotion of knowledge management through
teamwork, social networks and knowledge management systems; training on employability and
transferability skills to enhance Skills Development. The enterprises to go beyond traditional
apprenticeship, Soft skills assessment in schools, embrace technology and promote
intrapreneurship. The study also suggest introduction of Skill Development Fund to equip the
communities and businesses with relevant skills required in the dynamic global market place.
KEYWORDS: Human Capital, Human Capital Investment, Education, Training, Knowledge
Management, Skills Development, Soft Skills and Organizational Performance.
Description
www.eajournals.org
Keywords
Human Capital, Human Capital Investment, Education, Training, Knowledge Management, Skills Development, Soft Skills, Organizational Performance
Citation
Global Journal of Human Resource Management Vol.3, No.6, pg.1-29, Nov. 2015; Published by European Centre for Research Training and Development UK (www.eajournals.org)