The Role of Human Capital in Improving Organisational Performance: A Study in Odisha Power Transmission Corporation Ltd. (OPTCL)

Human capital is getting wider attention with increasing globalisation and also because of the saturation of the job market due to the recent downturn in the various economies of the world. Developed and developing countries have put emphasis on more human capital development for accelerating the economic growth by devoting necessary time and efforts. The study attempts to explain the relationship between human capital management and organisational performance. Data were collected by employing a sample size of 116 employees and 16 executives on human capital score card and organisational performance constructs. The reliability of the constructs was validated by Cronbach's alpha value. Pearson's correlation and linear regression were used to test the hypotheses. Results of the study show that an organisation's human capital has a significant positive impact on the organisational performance. The study results provide support to the strategy of investment in human capital and its management for competitive advantage at the organisational and national levels. Finally, this paper develops a model that explains the relationship between human capital and organisation's performance.