The role of human capital on the productivity of firm:

Abstract

This study was to determine the role of human capital on the productivity of a firm. It focuses on human capital in three forms: education, on- job- training and health and how they affect the productivity of the firm. Productivity was also looked at in three forms: head count per unit production, return on investment in human capital and total working hours. The problem with the current state of human capital in Uganda is that more than 80 percentage of Ugandan population has no marketable skills therefore making them unproductive in there various occupations and places of work. This has led to low productivity in firms as in Uganda on a large scale. The researcher used quantitative and descriptive study designs in which questionnaires were given to a sample population at Vision Group Uganda. SPSS 16.0 was used to analyse the data. The result of a case study at Vision Group Uganda, revealed that the firm placed high importance to education, on job training and health of employees as a form of establishing quality of the human capital which are more productive with better quality and equipped with a vision and mission. The research led to the following findings: Human capital is of paramount importance for personal development and performance in terms of productivity and quality of life: the quality of education improves human capital: structured on-job-training and use of expert trainers improves the skills of the employees. Lastly, it was also established that health is an important determinant of human capital. Human capital resulting from investing in education, training and health care plays a big and important role in the productivity of a firm. I recommend corporations and the government to invest more in human capital with the aim of attaining productive and highly skilled labour force and human capital