How Do Human Capital Empowerments Constitute the Organizational Performance?

Much research has proven the effect of human capital on the organizational performance; the present study demonstrates how this causal relationship take place in the reality. In other words, in this research, first, organizational factors that cause human capital to flourish and be empowered are identified, and then their effects on the factors that shape the performance of an organization are identified. Hence, the main objective of this study was to examine the impact of the organizational factors empowering human capital on the organizational performance enablers. To do so, a questionnaire is administrated and Linear regression analysis using SPSS 22.0 applied for data analysis. According to the results, human capital empowerment factors have a statistically significant impact on the performance enablers. Finding disclosed that an effective performance evaluation system and effective leadership, which empower human capital in the organization, have a positive significant effect on the organizational performance. The findings indicate that organizations with an effective performance appraisal system and effective leadership not only provide a platform in which human capital is identified and grown, but also improve the factors that shape the performance of an organization. This research contributes to the literature on human resources, human capital, organizational management, and ultimately organizational performance.