HUMAN CAPITAL THEORY: IMPLICATIONS FOR THE GHANAIAN CONSTRUCTION INDUSTRY DEVELOPMENT
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Keywords
Human capital development, Ghanaian construction industry, Firm performance
Abstract
The purpose of this study is to identify from the literature the effect of human capital development on growth, profitability and competitive success of organisations and to argue that the development of the Ghanaian construction industry, its capacity to remain pivotal to the nation’s economic growth and the ability to become globally competitive are directly linked to investment in the development of its human capital. This theoretical paper reviewed the literature to identify empirical evidences of the correlation between human capital development and organisational success and profitability. The findings reveal that investment in education has positive correlation with high performance of other industry categories. The research has also revealed some criticisms of the theory of human capital development and provided insights into the barriers to human capital development within the construction industry in developing countries such as Ghana. The paper presents empirical evidence of the benefits that accrue to organisations that invest in human capital development and provides a training and development model that could serve as a framework for training and developing employees within the Ghanaian construction industry.
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