RELATIONSHIP BETWEEN HUMAN CAPITAL DEVELOPMENT AND ORGANIZATIONAL PERFORMANCE OF KTDA FACTORIES IN KENYA

Abstract

Some of the key issues threatening the sustainability of the tea industry in Kenya, the second largest tea exporter in the African continent, include diminishing returns to the farmer, low levels of profitability coupled with low market share, and rising operational costs that portend threats to the future of the tea industry. This paper discussed the correlation between the human capital development and the organizational performance of Kenya Tea Development Agency (KTDA) factories. The theory used in the study was Human Capital Theory. The research design utilized correlational survey research design that was anchored on the positivist research philosophy that focused on the 1,817 management personnel in the 66 factories directly managed by KTDA. The sample of 318 respondents were chosen by multi-stage sampling and formula of Cochran. The primary data was gathered through structured pilot tested questionnaires. The expert judgment and Confirmatory Factor Analysis were used in ensuring validity of the results obtained with reliability being confirmed with Cronbach alpha. Descriptive and inferential statistics were employed, i.e., regression analysis. Results revealed a significant positive relationship between human capital development and organizational performance (β = 0.493, t = 14.546, p < 0.05). The study recommends refining training strategies, enhancing employee engagement, and prioritizing career development initiatives tailored to organizational needs.