Perceived Effect of Human Capital Investment on Employee Commitment at the Office of Auditor General in Kenya

Abstract

Human capital investment is very important for any firm to increase effectiveness, efficient, productivity and commitment in organizations. However, despite investing in employee getting committed, motivated and loyal employees remains on the serious challenges faced by institutions today. Further, human capital investment remains a major structural challenge in most public sector entities. In Kenya, while the government has made steps aimed at reforming the public sector, human capital investments remain an obstacle and has continued to stifle Government efforts to improve service delivery. Specifically, the Office of the Auditor General (OAG) also acknowledges challenges that heavily affected the competence and efficacy of the office operations. This paper thus tried to determine the perceived impact of human capital investments on employee commitment at the office of auditor general in Kenya. The human capital theory, the resource based view and the social exchange theory formed the study’s theoretical literature. The study adopted a cross-sectional descriptive study design and the study population was the 1500 employees at the OAG. A sample size of 150 employees was selected that represented 10% of the total population using stratified random sampling. The study used primary data that was gathered through questionnaires. The data collected was analyzed using descriptive statistics and the regression model through the SPSS statistical software. The study found that the Office of the Auditor General had instituted satisfactory and appropriate training, educational, knowledge management and skill development programs. Regression results revealed that training had positive and significant connection with worker commitment at the OAG. The findings further indicate that education had a positive and significant effect on employee commitment at the OAG while knowledge management positively and significantly affected employee commitment at the OAG. The study also revealed a positive and significant connection between skills development and employee commitment at the OAG. The study concluded that human capital investments in form of training, educational, knowledge management and skill development programs significantly and positively influence employee commitment at the office of auditor general in Kenya.