Relationship between Human Capital and Organizational Performance: The Case of Asia Insurance Company

Abstract

This Study investigates the relationship between human capital and organizational performance in the Asia insurance company branches of Iran. The research method is descriptive-correlational one and data collected using two questionnaires (i.e., Naderi’s human capital questionnaire and a researcher-developed questionnaire of customer satisfaction based on Likert scale and Organizational documents). Reliability of questionnaires was evaluated by using Cronbach’s Alpha coefficient (0.93 for human capital questionnaire and .63 for customer satisfaction questionnaire). To analyze the data descriptive measures such as frequency and average figures, and statistical techniques such as one sample t-test, Pearson correlation coefficient and multiple regression analysis have been used. The results of study show that: The human capital level and customer satisfaction status in Asia Insurance Company Branches are significantly above the average, and the profit in Asia Insurance Company Branches has been significantly below of the standard figures. In addition, we found a positive and significant relationship between human capital and income, sales, and profit gained by the Asia Insurance Company accompanied with the customer satisfaction. Among the components of human capital, only knowledge can explain the variance and changes of income as well as sales. Among the components of human capital, skills and specialization would explain the variance and changes of profit and customer satisfaction.

Keywords

• human capital
• organizational performance
• income
• profit
• customer satisfaction