Organizational Culture and its Impact on Human Capital: An Analytical Study at the General Company for Electric power Production/Central Region

Abstract

Organizational culture plays a significant role in developing human capital in organizations. It can be argued that organizational culture is the foundation upon which an organization's success is built. Organizational culture is one of the most important factors that directly and indirectly influence organizational performance, particularly with regard to human capital development. The values ​​and beliefs that prevail within an organization form the framework that guides individual behavior, influences their motivation and incentives, and supports the development of their skills and capabilities. This research aims to explore how organizational culture contributes to enhancing human capital, both in terms of knowledge and skills, as well as organizational loyalty, innovation, and continuous learning. Literature indicates that organizations with a flexible and stimulating organizational culture provide greater opportunities for organizational learning and encourage responsibility and initiative, which enhances the development of human capital as one of the organization's most important strategic assets).

Organizational culture also plays a key role in fostering employee loyalty and motivating employees to achieve excellence, which in turn positively impacts their individual and collective performance. Several studies have indicated that a supportive organizational culture fosters a climate of trust and cooperation and provides a safe environment for learning and experimentation, which contributes to building human capital capable of innovation and adapting to change. Furthermore, the various dimensions of organizational culture, such as performance culture, empowerment, and participation culture, play a pivotal role in attracting, developing, and retaining human talent within the organization. It becomes clear that the relationship between organizational culture and human capital is not a one-way street, but rather a reciprocal one, whereby human capital, in turn, contributes to shaping organizational culture by embodying shared values ​​and implementing positive practices. The researcher recommends integrating organizational culture strategies into human resource development plans to ensure sustainable institutional performance and enhance organizations' competitiveness in the contemporary work environment.