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ABSTRACT: Ascribing to Knowledge based view (KBV) theory. Human Capital has been recognized as an important organizational resource and an antecedent to success in the organizations. This study in a novel setting of security forces aims to empirically understand the relationship and impact of human capital on the organizational performance of Pakistan Security Forces engaged in Low Intensity Conflicts. A cross sectional field survey was conducted. Statistical analyses revealed a positive significant relationship between human capital and organizational performance. Knowledge as sub construct of human capital was found to be strongest in its impact on organizational performance followed by skills and abilities. The research findings are likely to contribute to theory by extendmg the corporate research to the security forces context. From the managerial perspective, the findings give clear indications that would allow security forces to understand the importance of human capital management. The findings can be utilized for policy making decisions.
Keywords: Human Capital, Organizational Performance, Low Intensity Conflicts, Pakistan Security Forces.
(Received 8-11-14 Accepted 16-3-15)
INTRODUCTION
In the last few decades "Intellectual Capital" has emerged as an intangible resource with a rapid diffusion and widespread acceptance as organization's primary means of creating sustainable competitive advantage ensuring continuous growth and organizational performance (Aziz and Bontis, 2010). Therefore, in the current competitive environment many organizations relate their main liabilities to intangible assets rather than tangible ones (Hsu and Fang, 2009). Intellectual capital has three primary interrelated non-financial components such as Human Capital, Structural Capital and Relational Capital (Bontis, 1998; Chang et al., 2008). Human Capital (HC) encompasses competencies, skills, experiences, knowledge of an individual, preferred ability and motivation (Bozzolan et al., 2003; Guerrero, 2003 and Po-Yang et al., 2006). Literature provides fair amount of evidence that helps validate the vital role played by HC in the organizations as a source of innovation and strategic renewal (Webster, 2000). Higher level of financial performance of organizations is also associated with superior HC (Youndt et al., 2004). It has been well established that higher levels of skills and competence are antecedent to success. A positive link is demonstrated between HC elements and economic development (Seleim et al., 2007). Logically, if an individual is well educated and better trained, he is likely to secure more productivity and...