ORGANIZATIONAL PERFORMANCE AND ITS IMPACT ON HUMAN CAPITAL: INSIGHTS FROM PAKISTAN'S BANKING SECTOR

Abstract

The multifaceted concept of human capital integrates education, experience, and skills as critical components influencing organizational success. While traditional approaches focus narrowly on the economic returns of education, broader perspectives emphasize its holistic societal value. Organizations invest in human capital through hiring, training, and development, with senior management playing a pivotal role in nurturing these assets. Organizational performance, influenced by internal and external factors, is a key indicator of effectiveness, measured through financial and non-financial metrics. Frameworks like Kaplan and Norton’s balanced scorecard advocate for a multidimensional approach, including financial outcomes, customer satisfaction, internal processes, and learning and growth. Effective performance management requires feedback mechanisms and careful implementation to avoid unintended consequences, ensuring a comprehensive evaluation of success across diverse dimensions.