The impact of human capital management on operational performance at the gambia national water and

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LIST OF ABBREVIATIONS 
CIPD
- Chartered Institute of Personnel Development 
EMAR 
- Employment Market Analysis and Reearch 
HC 
- Human Capital 
HCM
- Human Capital Management 
HR 
- Human Resource 
HRM
- Human Resource Management 
NAWEC 
- National Water and Electricity Company 
R & D
- Research and Development 
SPSS
- Statistical Package for Social Sciences 
WERS
- Workplace Employment Relations Survey

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CHAPTER ONE 
INTRODUCTION 
1.0 
Background of the study 
Institutional reports and public out-cries had shown that most public institutions tend to 
persistently fail to deliver as expected. Therefore it has become more important than 
ever for such organizations to come up with multi-faceted strategies such as Human 
Capital Management (HCM) that seeks to strengthen employee engagement and create 
a commitment that goes further than the contractual employer/employee relation to 
enhance performance.
Human capital management, for the purpose of this study, is a bundle of Human 
Resource practices that provide HR professionals with the resources they need to shift 
from a reactive, task-oriented role to being a proactive strategic partner. A holistic 
HCM approach requires organizations to view talent acquisition, development, 
retention and employee engagement in a radically new way as a single entity rather than 
distinct parts. HCM is not about automating processes through the use of software. That 
is just clever marketing by software companies and HR professionals should know 
better.
During this new era in HCM, HR professionals will become catalysts for strategic 
change only when they understand the relationship and interconnectedness of the 
different components of HCM. As highlighted by Springer (2002) and cited by 
Marrewijk and Timmers (2003), HCM translates into organizational performance. The 
HCM practice in an organization will therefore significantly contribute towards the 
performance of that organization.

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For the past 20years, electricity supply in The Gambia, have come under serious 
criticism as being ineffective and inefficient despite all the investments in the sector. 
The National Water and Electricity Company, (NAWEC) responsible for the 
generation, transmission and distribution of electricity in the Gambia, is a member of 
the West African Power Pool (WAPP) - a body created by Decision A/DEC.5/12/99 
during the 22
nd
Summit of the Authority of ECOWAS Heads of State and Government 
in order to address the issue of power supply deficiency within West Africa. The 
National Water and Electricity Company (NAWEC) has not been able to participate in 
WAPP’s projects due to lack of relevant technical and institutional capability.
In October 2008, an organizational assessment was carried out by a German Consultant, 
to support the Human Resource and Administration Division of NAWEC. In this report 
the consultant noted the existing lack of both qualified staff and sense of responsibility 
among NAWEC staff met during the meetings and interviews held. The general 
observation during the assessment revealed an urgent need for a cultural adjustment 
with regard to staff development in order to enable them perform to expected standards. 
There was need also for adjustment in the institution and development of other people 
issues such as usage of working time, self confidence, responsibility and own initiative. 
This, the Consultant believed will greatly reduce and eventually eliminate negative 
work attitudes and practices that destroy the Company’s assets, such as vehicles, 
transformers, tools and any other hardware necessary in running the business.
Analyzing the issues highlighted on this report, the main finding was the need for a 
more strategic Human Resource Division that can align its activities with the corporate 
strategic objectives of the Company. It is in this light, and as a follow up study to the 
findings of the report, that this research investigated and ascertained the extent to which 

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the Human Capital of this Company can transform the current dwindling trend of 
performance if properly managed. This meant identifying the relevant Human Resource 
Practices that translated into employee total commitment which in turn impacted 
positively on organizational performance.
NAWEC had depended on ad-hoc measures in planning for Human Resource 
requirements. The 2008 assessment report narrowed the Human Resource division as 
mainly focused on traditional practices of personnel administration and not as strategic 
business partner necessary for the organizational performance improvement. The study 
will therefore help NAWEC develop a more strategic and modern approach to the 
management of people and their attributes that translate to the sustainable improvement 
of the Company’s overall performance in terms of higher profits, lower operating costs, 
and lower turnover.

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