Effect of human capital investment on organizational performance of pharmaceutical companies in Kenya
Year: 2015
Type: article
Abstract: Provision of adequate health care services to their population remains a major \nchallenge for governments in Africa. In Kenya, the number of trained Pharmacists is increasing \nwith time but still insufficient relative to the population in need (one pharmacist for every 8,710 \npersons, or approximately 0.1 per 1000 persons. Kenya had about 8 pharmacists for every \n100,000 people). It was estimated that for the country to meet its health related Millennium \nDevelopment Goals, the pharmacy workforce needed to grow by 28 per cent annually between \n2010 and 2015. Whereas, Kenya’s population is estimated to be 43 million (provisional) in 2014, \nthe number of registered pharmacist in 2013 was 2,202 and rose to 2,355 with a ratio of 5 \npharmacists per 100,000 persons. In summary we have approximately 5:100,000, meaning 5 \npharmacists to 100,000 persons, while the requirement is approximately 1:10000, meaning 1 \npharmacist to 10000 persons. The current numbers of pharmacists are not adequate for \nachievement of the post-2015 Sustainable Development Goal 3. The study sought to establish the \neffect of Human Capital Investment on Organizational Performance of Pharmaceutical \nCompanies in Kenya. The independent variables include: training, education, knowledge \nmanagement and skills development. The main underpinning theories in this study include: \nHuman Capital, Skill Acquisition and Sustainable Resource Theory. 200 observations were used \nin the study. Study used questionnaires in data collection, descriptive and inferential statistics \nused in the analysis. The found a positive significant relationship between human capital \ninvestment and organizational performance. The study recommends provision of quality \neducation, relevant training linked to industry requirement, the study suggest adoption of \nGerman Dual Vocational Education and Training system to facilitate and strengthen linkage \nbetween education sector and the industry. Promotion of knowledge management through \nteamwork, social networks and knowledge management systems; training on employability and \ntransferability skills to enhance Skills Development. The enterprises to go beyond traditional \napprenticeship, Soft skills assessment in schools, embrace technology and promote \nintrapreneurship. The study also suggest introduction of Skill Development Fund to equip the \ncommunities and businesses with relevant skills required in the dynamic global market place. \n \nKEYWORDS: Human Capital, Human Capital Investment, Education, Training, Knowledge \nManagement, Skills Development, Soft Skills and Organizational Performance.
Authors: Emily Odhong, Jacob Omolo
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2464760237