CHAPTER ONE

INTRODUCTION

1.1      Background of the study

Organizations are seeking to create much competition between them, taking more market, more customers, more sales, etc. Rapid changes stemming from globalization, advancement of information systems and other factors have caused higher competition. Many organizations are driven by the market to set their goals in their performance. Some of the goals are: cost reduction, achieving sales levels, increasing the number of customers, increasing the market percentage, improving productivity and quality, innovative products. The realization of these goals will be achieved through the human resources management in organizations. Workforce, as the key to success, will enable the achievement of organizational performance. Human resources are regarded as one of the most important sources of today's firms. Human resources management is more important than other competitive sources because these people use other assets in organization, create competitiveness and realize objectives.Thus firstly, organizations must understand the expectations of their workforce in order to achieve the desired performance. The realization of the expectations of employees will enable the desired behavior of employees in the organization. Some of thedesired outcomes of the organization in managing their workforce are: competence, cooperation of employees with managers, cooperation of employees between them, showing the capabilities of employees; motivation, commitment and satisfaction; attitude and presence; employee behaviors. The overall goal of performance management is to create a culture as high performance in which individuals and teams to take responsibility for the continuous improvement of business processes and their skills and contribute in achieving the targets set by managers. In particular, management performance can be expressed as the approximation of individual objectives of employees with organizational objectives provided that employees support the culture of the organization. It provides for expectations to be defined and agreed in terms of role responsibilities and accountabilities (expected to do), skills (expected to have) and behaviors (expected to be)(Armstrong, 2006).In any organization performance of organization is very important. The super objective of all organizations is to improve their performance. There may be three areas that create or to enhance the organizational performance: employee development of organization (EDO), compensation management of organization (CMO) and organizational citizenship behavior (OCB).

The main objective of this study is to measure the effect of compensation on organizational performance. Compensation is vital for organization’s performance. As the employee compensation, training and rewards have risen the performance of human resource managementresultsgenerallyraisesthe satisfactionand performance. There are three independent variables citizenship behavior, employee’s development, and compensation management and their combine effect on organizational performance.According to Turnipseed and Russuli explained that when organization criticized in investment, which means organizational citizenship behavior is “going beyond the call of duty. Poncheri refers that organization citizenship behavior have significant impact on performance of organization. OCB not relevant to individual duties, it is related to the organization’s functions and duties which is significant to improve the organizational effectiveness or performance Applebaumet et al. Morhd/Griffin explained that organizational citizenship behavior creativity and adaptation leads to the organizational effectiveness and work related management in HRM (1375, 132).

1.2      STATEMENT OF THE PROBLEM

The Role of Human Resource Management in improving organizational effectiveness is an issue which has been investigated in this study. If we review categories and criteria of effectiveness which are presented by experts in the field of management, we understand that human resources management can directly or indirectly have a very important role in improving these indicators such as relocation or turnover of employees, employee absenteeism,Compatibilityofthe norm and role ,quality of product or production services, accidents, flexibility, adaption for changing of standard operating procedures in response to environmental changes, Job satisfaction, employee motivation and staff morale (Lawler, &Mohrman, ,2003).Today, responsibilities of human resources management units do not only include staff attendance or other simple issues, but it has more important issues such as considering motivational issues, satisfaction of spiritual needs, providing a space for growth and creativity along with a safe and healthy environment with satisfying material needs of employees even after evenafterthe end of theservice (Kavanagh, Gueutal, &Tannenbaum, (1990). In recent years, in our city we have witnessed designing and implementing of several programs in order to achieve developmental goals. Undoubtedly,the desirefor sustainabledevelopmentinvarious political, economic and social sectors needs forces that in additionto having theabilityto perform their duties, have sufficient incentive (Barnett, 1995). Therefore, organizations must focus more than ever on their manpower. In this regard, primary responsibility is on human resources management and this management must perform their duties and provide suitable substrates for talented and capable forces in the organization so they can fulfill their duties with a better quality and finally with establishing appropriate strategies make the ground ready for better performance of evaluation of staff performance (Andersson, 2007).

1.3      OBJECTIVE OF THE STUDY

The main objective of the study is to investigate the efficacy of human resource management for improved organizational effectiveness. But to aid the completion of the study, the following specific objective are put forward by the researcher;

i)             To ascertain the impact of human resource effectiveness on

organizational performance.

ii)           To ascertain the role of human resource management on productivity of the employee

iii)          To assess the relationship between human resource management and organizational efficiency

iv)         To proffer suggested solution to the identified problem

1.4      RESEARCH QUESTIONS

To aid the completion of the study, the following research questions were formulated by the researcher;

i)             What is the impact of human resource effectiveness on organizations performance

ii)           What are the role of HRM in ensuring employee’s productivity

iii)          Is there any relationship between HRM and organizational efficiency

1.5      RESEARCH HYPOTHESES

To aid the completion of the study, the following research hypotheses were formulated by the researcher:

H0:there is no significant relationship between HRM and organizational efficiency

H1:there is a significant relationship between HRM and organizational efficiency

H02:human resource effectiveness has no impact on organizational performance

H2:human resource effectiveness has impact on organizational performance

1.6      SIGNIFICANCE OF THE STUDY

This research work is significant to both the management (employers) and the labour (employees).  Secondly a close look at the work carried out will reveal a significant effect of human resources development and employees commitment. More so, the research work will serve the role of shaping the organizational policies on human resources (personnel) for the overall attainment of the set objectives. It is only when the human resources is adequately qualified for the job to be performed that we can hope that the material resources in put can be effectively allocated and usefully utilized in the most optimum manner. If personnel administration is to be successful, management must give it sincere support in order to sustain  organizational growth.  The practical relevance of this study lives in the fact that no organization can achieve its set objectives without competent employees. Hence the issue of training and development becomes a central pre-occupation of any organization out to achieve and sustain efficient operation.

1.7 SCOPE OF THE STUDY

The scope of this study covers managing human resource for improved organizational effectiveness, in Udofin local government area of Lagos state

1.8 JUSTIFICATION OF THE STUDY

The effectiveness and efficiency of an organizations lies on the effectiveness of human resource management. Most organizations are face with the dilemma of epileptic supply . It is no doubt that the cost of employing qualified personnel to man the affairs of human resources in an organizations is exorbitant. In order to overcome this barrier most organization adopt a central management strategy, where there is no clear distinction between HRM and operational managers

As part of my requirement for the award of Bachelor of science degree (B.sc) in business administration, this study is carried out to ascertain the impact and benefit of HRM and how it improve organizational effectiveness

1.9 DEFINITION OF TERMS

HRM

Human Resource Management (HRM or HR) is the management of human resources. It is designed to maximize employee performance in service of an employer's strategic objectives

Employees Commitment

 EC is defined as the employee's positive emotional attachment to the organization. Meyer and Allen pegged AC as the "desire" component of organizationalcommitment. An employee who is affectively committed strongly identifies with the goals of the organization and desires to remain a part of the organization

Job satisfaction

Job satisfaction or employee satisfaction has been defined in many different ways. Some believe it is simply how content an individual is with his or her job, in other words, whether or not they like the job or individual aspects or facets of jobs, such as nature of work or supervision

1.10  ORGANIZATION OF THE STUDY

This research work is organized in five chapters, for easy understanding, as follows Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study. Chapter two highlight the theoretical framework on which the study its based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study.

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