The Analysis of the Effects of Human Capital of Public Agency Leaders on the Target Achievements of their Organizations

Abstract

 The main objective of the study is to identify the effects of human capital of public agency leaders on the target  achievements of their organizations. A model is formed by using scores of the performance evaluation of public agencies as a dependent variable. The leaders’ skills, working experience, organization structure and personal characteristics are included as independent variables. The data were collected from 103 public agency leaders. The result of the multiple regression analysis indicates that a high (low) grade point average, using more (less) general skills, attending fewer (more) specific-skill training courses during their working periods in the current offices and a smaller (larger) number of total staff lead to the success (failure) of attaining the agency targets. An estimation of the type and size of human capital appropriate for the target achievements shows that a change in the grade point average highly affects the performance evaluation scores. The analysis of the human capital stock of 203 future leaders from the same public agencies reveals that their lower grade point averages, a major and sole human capital shortage, could damage the target attainment in the future.

            The following three human capital stocks are forecast to be crucial for the public agencies to get the maximum performance evaluation scores: grade point average of not less than 3.05, acquiring 1.08 specific-skill training courses on average each year and using general skills by 51% of the total skills in their jobs. In addition, an appropriate size of the staff in a public office is 265 persons. The study recommends encouraging the future leaders to perform their tasks with more general skills. In the short run, the number of specific-skill training courses should be cut down for the current leaders but added on for the future leaders. In the long run, grade point average in the Bachelor’s degree becomes a major criterion for the recruitment of new staff and the appointment of future leaders.