The Impact of a Selected Seminar on Strategic Human Capital: A Case Study of OΒΝ and Adama City Administration, and a Systematic Review of Literature

Awol Hussien Aman, Chalchissa Amentie
International Journal of Finance, Insurance and Risk Management, Volume 14, Issue 1, 50-66, 2024
DOI: 10.35808/ijfirm/380


Purpose: The main purpose of this article was to review the theoretical foundation of Strategic Human Capital (SHC) and its applicability on the ground when practiced by different sectors (organizations). Design/Methodology/Approach: Both primary and secondary data sources were employed for review and analysis. Data obtained from both sources were discussed in detail and analyzed comparatively. This helped to identify the status of Strategic Human Capital practices at the sectoral level and the association with the theory. Findings: The literature review results indicate that SHC comprises three strategic elements (Human Capital, Social Capital, and Organizational Capital), all of which work in integration to achieve organizational success. Similarly, the survey findings revealed a direct relationship between all independent variables and the dependent variable. The practice of human capital supports the practice of social capital as well as organizational capital. Linear regression analysis results indicated that 65.7% of the variance in organizational success can be predicted from the combination of all independent variables. The analysis also shows that F=51.516, which at p<0.05, is statistically significant. On the other hand, social capital theory implies that social resources have important direct and indirect effects. The survey analysis indicated that social capital is the most influential factor significantly affecting organizational success, with a beta value of 0.334 and t=2.287, which is significant at a 95% confidence level (p < 0.05). Furthermore, the review of data indicated that organizational capital is the institutionalized knowledge possessed by an organization, stored in databases and manuals. Practical Implications: Therefore, organizations need to pay special attention to all independent attributes. The slight improvements made to their employees in practices and the development of systems led to employees becoming more hardworking and satisfied with their organizations. Similarly, organizations can achieve their desired success with the help of their employees. Originality/value: Organizational capital is created by people (human capital) but is also the outcome of social capital interactions. It belongs to the firm and can be developed through knowledge management processes aimed at obtaining and recording both explicit and tacit knowledge.

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