Abstract

This study investigates the effect of human capital on organizational success using the Tole Tea Co-operative in Buea Municipality, Cameroon, as a case study. With the specific objective of the study to assess the effect of education and training, health, skills, on the organizational success of Tole Tea Co-operative Buea. The sample size of study involved 220 participants selected through stratified random sampling from the cooperative’s workforce.

Quantitative data were collected through structured questionnaires, while qualitative insights were gathered via semi-structured interviews and document reviews. Statistical analysis using SPSS and thematic content analysis through NVivo were employed to examine the data. Findings indicate that components of human capital such as employees’ educational qualifications, job-specific training, physical and mental health, and soft and technical skills significantly influence organizational success.

Specifically, education and on-the-job training were found to improve decision making and job effectiveness. Health and wellness were linked to productivity, while soft skills enhanced collaboration and workplace morale.

The study concludes that strategic investment in human capital yields positive outcomes for employee satisfaction, organizational resilience, and long-term success. It recommends targeted training, inclusive HR policies, and institutional frameworks for workforce development as pathways to enhance performance. These insights are valuable to managers, policy-makers, and academic institutions striving to build high-performing organizations in similar socio economic contexts.

CHAPTER ONE

INTRODUCTION

1.1 Background of Study

Organizational success refers to the achievement of an organization’s goals and objectives through the efficient utilization of resources, sustained competitive advantage, and stakeholder satisfaction. It is a multifaceted concept that extends beyond financial performance to include factors such as employee satisfaction, innovation, customer loyalty, and social impact. As organizations strive for long-term growth and sustainability, human capital plays a critical role in their success. Human capital encompasses the collective skills, knowledge, experiences, and attributes of individuals within an organization, making it one of the most valuable assets for any institution.

In the contemporary global economy, the significance of human capital in achieving and sustaining competitive organizational success has become increasingly evident. Human capital refers to the collective skills, knowledge, experiences, and attributes possessed by individuals within an organization. It serves as a catalyst for innovation, productivity, and efficiency. The shift from traditional industrial economies to knowledge-based economies has elevated the role of human capital as a strategic resource. Becker, (1993) defined human capital as the knowledge, information, ideas, skills, and health of individuals that contribute to personal and economic well-being. Organizations that effectively manage and invest in human capital often outperform their peers in innovation, adaptability, and long-term success.

Looking at the global level show that human capital investments, especially in education, training, and health, significantly correlate with improved organizational outcomes. For instance, Mukaro, Deka, and Rukani, (2023) emphasized that intellectual capital, which encompasses human capital, positively influences organizational productivity, particularly through enhancing innovation and decision-making quality. Similarly, organizations in developed economies have integrated comprehensive human capital strategies involving continuous learning, skill enhancement, and leadership development, thereby achieving sustained growth and innovation. However, the rise of technological transformation, artificial intelligence, and automation presents new challenges and opportunities. Organizations are increasingly tasked with re-skilling their workforce to align with technological changes while preserving the value of their human resources (Financial Times, 2024).

In Africa, human capital development is increasingly viewed as a foundational pillar for economic transformation and sustainable development. African governments and institutions are investing in human capital to address unemployment, skill mismatches, and low productivity. According to Alani, (2018), in a case study of Kenya, it was revealed that investment in human capital, particularly through vocational training and formal education, significantly boosts technological progress and organizational efficiency. Similarly, Dhobha and Madondo, (2023) found that in South Africa, government expenditure on health and education both essential components of human capital positively influenced the economic output and operational performance of public institutions. Nevertheless, the African continent continues to face systemic challenges, such as inadequate infrastructure for training, high rates of brain drain, and underemployment, which limit the full potential of human capital in driving organizational success.

In Cameroon, the role of human capital in enhancing organizational success is increasingly being acknowledged across both public and private sectors. The Cameroonian economy, being largely informal and service-oriented, depends heavily on the quality and performance of its human workforce. However, issues such as low investment in employee development, inadequate motivation, and limited career progression opportunities continue to undermine human capital effectiveness. Research conducted by Ntoung, de Oliveira, and Pimentel, (2021) revealed that a supportive work environment significantly boosts employee commitment and performance in Cameroonian higher education institutions. Additionally, a study by Project-House.net (2021) focusing on Guinness Cameroon S.A in Buea demonstrated that strategic human resource planning, training, and employee welfare programs lead to substantial improvements in organizational success. Despite these findings, many Cameroonian organizations still struggle with retaining skilled employees due to poor working conditions, lack of incentives, and the lure of better opportunities abroad.

Zooming into the Buea Municipality, the importance of human capital becomes even more pronounced due to the town’s status as an emerging innovation and tech hub in Cameroon, often dubbed “Silicon Mountain.” The presence of institutions such as the University of Buea and several tech startups has increased demand for highly skilled labor. Human capital development in Buea plays a crucial role in the success of these institutions and organizations. According to Research Guru, (2021), employee motivation, career development opportunities, and leadership significantly influence the performance and effectiveness of organizations operating in Buea. In particular, access to training, mentorship, and recognition was shown to boost employee morale and productivity.

However, Buea also faces challenges such as resource limitations, political instability, and migration of skilled youth to other regions or countries, which deplete the available human capital and hinder organizational growth. In all, human capital remains a critical asset in enhancing organizational success across global, continental, national, and municipal contexts. The growing emphasis on knowledge, skills, and employee wellbeing as strategic tools for performance improvement underscores the need for organizations to invest consistently in developing their human resources. In Cameroon and Buea Municipality specifically, while progress has been made, more structured efforts are required to strengthen human capital through policy reforms, strategic investments, and institutional support to ensure that organizations can maximize performance and remain competitive in the modern economy.

1.2 Statement of Problem

Organizational success is largely determined by an organization’s ability to efficiently utilize its resources, adapt to changes, and achieve its goals. Among the critical resources that influence organizational success, human capital stands out as a central factor. Human capital refers to the skills, knowledge, experience, and abilities of employees, which are essential for achieving productivity, innovation, and long-term sustainability. Despite its importance, many organizations, especially in developing regions, fail to fully invest in the development of their workforce. A key issue affecting organizational success in such organizations is the lack of structured employee training and development programs.

Training and development are essential components of human capital development, as they equip employees with the necessary skills and knowledge to perform their roles efficiently. Unfortunately, many organizations, particularly small and medium-sized enterprises (SMEs), struggle to allocate sufficient resources for comprehensive training programs. This issue is particularly evident in rural or resource-limited areas, where organizations may not recognize the long-term benefits of investing in human capital development. As a result, employees often lack the necessary training to perform tasks effectively, leading to low productivity, high error rates, and stagnation in organizational growth.

At Tole Tea Co-operative, the lack of structured training programs is a significant barrier to organizational success. Despite being one of the oldest and largest tea-producing cooperatives in the region, the cooperative faces challenges related to employee performance, productivity, and product quality, which can be traced back to inadequate training. Many employees, especially those in labor-intensive roles such as tea plucking, do not receive specialized training on best agricultural practices, modern farming techniques, or quality control procedures. This lack of training leaves employees unable to perform tasks efficiently or adapt to new technologies and market demands, directly impacting the cooperative’s ability to achieve its production goals and maintain high-quality standards.

One of the main consequences of this training gap is the inefficiency in production processes. Employees who are not properly trained may make mistakes in their work, leading to increased wastage, poor-quality products, and a higher rate of errors. For example, without proper training in handling tea leaves and processing techniques, the quality of the final product may be compromised, leading to dissatisfaction among customers and a loss of market share. Additionally, employees who are not trained on modern agricultural practices may miss opportunities to optimize their work processes, reducing overall productivity. This inefficiency has a ripple effect on the cooperative’s ability to remain competitive in the market, as it struggles to meet demand and compete with better trained competitors.

1.3 Research Questions

1.3.1 Main Research Question

What is the effect of human capital on the organizational success of Tole Tea Co-operative Buea.

1.3.2 Specific Research Questions

1. What is the effect of education and training on organizational success in Tole Tea Co-operative Buea?
2. What way does health status affects productivity and organizational success in Tole Tea Co-operative Buea?
3. How do skills of employee affect the organizational success in Tole Tea Co-operative Buea?

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