Human Capital Investments And Employee Performance: Australian IT Industry Essay

Question:

Discuss about the Human Capital Investments and Employee Performance for An Analysis of Australian IT Services Industry.

Answer:

Introduction

Human Capital investment is considered as one of the significant factors that contribute to company prosperity and future growth (Posthuma et al., 2013). Joshi et al., (2013) cited that in today's technologically advanced world, the business organizations are continuously nurturing its human resource in order to maintain a competitive advantage in the market. According to Pereira, and Andraz, (2013), any investment made in human resources significantly differs from other investments in company’s assets. The human capital includes continuous training and education for the industry and individuals. The recruitment of the best candidate is the initial step of the organization for maintains the market success. According to Rosenbusch, Brinckmann, and Muller, (2013), the human capital investment helps in leveraging the employees’ capabilities and expertise through supporting environment and continuous training.

Figure 1: Conceptual Framework for the Study

(Source: Created by Author)

Siew, Balatbat, and Carmichael, (2013) showed that the employee motivation and performance have been the focus of the different organization in the recent times. Employee performance is triggered by the employee motivations, training, job satisfaction, job security, organizational culture, etc. (Yanadori, and Cui, 2013). Abbasi, Chung, and Hossain, (2012) cited that a skilled and motivated employee in an organization has an enhanced job efficiency and management that improves the performance of the employee.

Antoinette Bargagliotti, (2012) stated that in IT industry, the employee's productivity holds the major potential for deciding the gross profit of the company. The technology is continuously changing; that lead the IT industry to cope with the situation through continuous education and training of the employees to enhance their skills and capabilities.

Therefore, it becomes essential to understand the underlying interconnection between employee performance and human capital investment of the company to retain its competitive advantage.

Aim and Objectives

The research study aims at analyzing the impact of Human Capital Investment and Employee Performance on Business.

The following are the formulated objectives for the study:

  • To evaluate the relation between employee performance and human capital investment;
  • To analyze the influence of employee performance and human capital investment in Australian IT sector;

A Brief Methodology

For effectively analyzing the research topic, the following methodologies will be undertaken:

Detail Literature Study: The literature review will provide in-depth concepts and knowledge of the previous researchers, studies, concepts and models related to ‘Human Capital Investments and Employee Performance.' The literature review will assist in providing a theoretical background to the research study. The literature review will be considered as the secondary data for the study.

Data collection and analysis: Both quantitative and qualitative research study will be conducted for evaluating the impact of employee performance and human capital investment on the Australian’s IT industry. For data collection procedure, five HR (Human Resource) managers of IT firm will be considered for interview whereas, fifty employees of the IT industry will be considered for collecting raw data through online surveys. For analyzing the collected data, qualitative, quantitative and multiple regression model will be utilized.

References

Abbasi, A., Chung, K. S. K., & Hossain, L. (2012). Egocentric analysis of co-authorship network structure, position and performance. Information Processing & Management, 48(4), 671-679.

Antoinette Bargagliotti, L. (2012). Work engagement in nursing: a concept analysis. Journal of advanced nursing, 68(6), 1414-1428.

Joshi, M., Cahill, D., Sidhu, J., &Kansal, M. (2013). Intellectual capital and financial performance: an evaluation of the Australian financial sector.Journal of intellectual capital, 14(2), 264-285.

Pereira, A. M., & Andraz, J. M. (2013). On the economic effects of public infrastructure investment: A survey of the international evidence. Journal of Economic Development, 38(4), 1.

Posthuma, R. A., Campion, M. C., Masimova, M., & Campion, M. A. (2013). A high performance work practices taxonomy integrating the literature and directing future research. Journal of Management, 0149206313478184.

Rosenbusch, N., Brinckmann, J., & M?ller, V. (2013). Does acquiring venture capital pay off for the funded firms? A meta-analysis on the relationship between venture capital investment and funded firm financial performance.Journal of Business Venturing, 28(3), 335-353.

Siew, R. Y., Balatbat, M. C., & Carmichael, D. G. (2013). The relationship between sustainability practices and financial performance of construction companies. Smart and Sustainable Built Environment, 2(1), 6-27.

Yanadori, Y., & Cui, V. (2013). Creating incentives for innovation? The relationship between pay dispersion in R&D groups and firm innovation performance. Strategic Management Journal, 34(12), 1502-1511.

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