Workplace Skills Plan, Human Capital Development and Organizational Performance at Ethekwini Municipality

Abstract

Human capital development in the eThekwini municipality raises the knowledge, skills and behavioural competencies of employees to the level required to achieve and exceed the organisational requirements contained in the integrated development plan of the municipality. As stated in the integrated development plan, the municipality aims to train its staffs and improve their skills so that the services they provide are sustainable, efficient, and effective. Hence, the overall aim of this study is to establish the influence of work place skills plan on human capital development amongst the employees of eThekwini municipal councils in South Africa. The study used a quantitative research method through a structured self administered questionnaire as the proper instrument for data collection. With non -probability and convenience sampling technique the researchers selected respondents who completed, signed and returned 2018-2019 work place skills plan forms during consultation and meeting with their managers. In this study, 279 respondents completed and returned the questionnaire. The study used a data analysis instrument called Statistical Package for the Social Science (SPSS version 20) and AMOS version 20. Results from data analysis showed that workplace skills plan is useful in boosting the overall human capital development in the workplace and therefore can be used as a tool for human capital development. Workplace skills plans assist companies to adjust to labour market flexibility and train for what the market requires and to maximise the returns from the large investment in skills and tertiary qualifications. The findings of this study indicated that training and development have a direct and indirect positive influence on human capital development. The recommended that local municipalities should maximise investments in development of human capital initiatives to sustain effective organisational performance, improve employee performance, productivity, employee competencies, efficiency, effectiveness, and long -term organisational prosperity. Keywords: Training Needs Analysis, Confirmatory Factor Analysis, Structural Equation Modelling, Reliability Analysis, Validity Analysis, Return on Investments, Employee Productivity, South Africa.