The purpose of this study to examine the impact of strategic human resources (HR) practices (selective staffing refers to recruitment, selection and placement), training practices, performance appraisal and reward systems on intellectual capital components (human, social and organizational) in Oromia Regional public service organizations.
The authors used a quantitative method and used basic random and stratified sampling procedures to deliver 450 questionnaires to the directorates, team leaders and employees of 12 sampled bureaus. For the final data analysis, 402 correctly completed questionnaires were used. The data were analyzed using SPSS version 26 and structural equation modeling, as well as the analysis of moment structures version 23.
The study’s findings revealed that for enhancing human and organizational capital in public service organizations, selective staffing, training and performance appraisal are important human resource practices. The study findings also revealed that selective staffing and performance appraisal are important human resource practices for enhancing social capital. This study found that the reward systems did not significantly impact three intellectual capital components. However, these strategic HR practices, such as selective staffing, training, performance appraisal and reward systems, explain 56% of the variance in human capital, 49% in social capital and 52% in organizational capital.
The study was limited to Oromia regional public service organizations and examined the impact of SHR practices from the perspective of selective staffing, training practices, performance appraisal, and reward systems on intellectual capital (human, social, and organizational capital). As a result, this study may not generalize.
To improve intellectual capital (human capital, social capital and organizational capital), public service organizations should focus on selective staffing, which involves attracting qualified applicants, choosing and assigning the person with the necessary qualifications, offering training based on the skills gap that has been identified, measuring employee performance using standardized tools and giving developmental aspect performance feedback.
The importance of this study lies in the fact that little of the existing literature explores the impact of strategic human resource practices on intellectual components in Oromia/Ethiopia.
