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1.1 BACKGROUND OF THE STUDY
Human resources management was defined by John Bratton and Jeffrey Gold (2nd Edition) as a set of practices that define the nature of work and regulate the employment relationship. Likert (1996) refers to it as “the talents and knowledge of people which are applied to the production of goods and services”. Thus, the term connotes man in relationship to the world of work. Harbrison (1998), refers manpower as human being i.e. that part of the management process that specializes in the management of people in work organizations. Human resource management (HRM) emphasizes that employees are critical to achieving sustainable productivity.
The definition of human resource management would be incomplete without further explaining what is meant by the term “human resource” and “management” First and foremost, people in work organizations are endowed with a range of abilities, talents and attitudes which influence productivity, quality and profitability. People set overall strategies and goals, design work systems, produce goods and services, monitor quality, allocate financial resources and market
the product arid or services — individuals therefore become ‘human resource’ by virtue of the roles they assume in the work organization. In theory, the management of people is not different from the management of other resources of organizations. In practice what makes it different is the nature of the resource, people. One set of perspective views the human being as potentially a creative and complex resource whose behaviour is influenced by many diverse factors originating from either the individual or the surrounding environment. Organizational behaviour theorists for example, suggest that the behaviour and performance of the “human resource” is a function of at least four variables, ability, motivation role, perception and situational contingencies.
In essence, human resources management is simply described as the management of the human resources in an organization for optimal utilization and attainment of an organizational objective (Banjoko, 1996).
The efficiency with which that organization is operated will depend to a large extent on how effectively the human resource is managed and utilized for efficiency in the area of productivity.
Business firm is an organization that deals with rendering of services. It makes use of specially trained professionals, accountants and semi skilled clerks. Professional accountants are obliged to ensure that financial statements comply with statutory, professional and stock exchange requirements. This requires the accountant to possess technical expertise.
In addition, a professional accountant is obliged to ensure that financial statements present the substance of the commercial transactions the company has entered into; this requires the accountant to have commercial awareness. It is required of the accountants to be able to demonstrate professional skill in problem solving for decision making, and score keeping as per accumulating data and reporting reliable results to all level of management. He plays an important role in staffing and human resources management in the areas of budgetary statements and performance reports like standard costing and responsibility business statements. This ensures that competent employees are selected developed and rewarded for accomplishing enterprise objectives. No wonder, it is
often said “No Business office is any better than the quality of it’s personnel” said Robert L. Kane Jr.
In the quest to exhibit high standard of professionalism by statutory authority, he is expected to express an opinion whether or not such accounts reflects a true and fair view of the state of affairs of such organization at a particular period. This professional figure then gives an advice that would help the Business to grow. An accountant gives advice to government too on financial issues and policies. Over the last few decades, Business firms in Nigeria have made substantial contributions to the socio-political and economic development of the nation.
In summary, the role of chartered Accountant is multifaceted, be it private or public to be established, liquidated, amalgamated or reconstructed in any form, the role of accountant cannot be over emphasized.
In other words, there is a global competitive challenge in the area of social and ethical responsibilities. William B. Werter, and Keith Davis, in this book, it is stated that the purpose of human
resource management is to improve the productive contribution of people to the organization in a way that are strategic and socially 3
responsible. This can be achieved by selecting developing, and motivating the employee to achieve the organizational objectives of the buisness firm.
Business firms are established either by individuals or group of individuals to form a partnership. The firms can be categorized into small, medium and large firm. The large firms include among others price water house, coopers and Lybrand 4and Co, Arthur Anderson. The Local firms for example include Akintola Williams & Co; Osun Dairo Lasebikan, Ani Ogunde & Co, etc affiliated to international firms. In these BUSINESS firms, the problems facing the human resource and productivity are somehow universal.
1.2 STATEMENT OF PROBLEM:
The followings are common problems associated with human resource management and productivity in BUSINESS firm.
Lack of job satisfaction
Reduced creativity and situated growth on the part of the employee,’
Ø Absence of employee motivation which often result in low employee productivity
Ø > Reduced corporate profitability and threatened growth and survival of the organization.
Ø The effects of these problems on employees’ productivity and how it could be reduced or eliminated completely to enhance productivity is what this project research is set to achieve.
Ø 1.3 OBJECTIVES OF STUDY:
Ø The main objectives of the study are to critically assess the management of human resource in buisness firm
with a view to:
i. Identifying the importance of human resource management (HRM) to business firm.
ii. Identifying the problems associated with HRM in business firms.
iii. Identifying the relationship between effective HRM and organizational profitability.
iv. Reviewing the process of HRM and its impact on
1.4 RESEARCH QUESTIONS
Ø 1.Does your firm consider workers motivation critical to the organization’s productivity?.
Ø 2. Has there been any problem associated with HRM in your buisness firm.
Ø 3. Is there any relationship between effective HRM and organizational profitability?
Ø 4. Has there been any impact on the organizations’ productivity whenever human resource process is reviewed?
Ø 1.5 FORMULATION OF HYPOTHESES:
Ø In hypothesis formulation, H1 represents research hypothesis and H0 represents null hypothesis.
Ø 1. Employee’s motivation is not critical to the organization productivity.
Ø 2. - Universal incentive applied to all levels of staff do not increase the productivity of the organization.
Ø 3. There is no positive impact on the firm’s productivity if the HRM is reviewed.
Ø 4. Professionalism is not critical to the organizations proficiency and productivity.
2. Has there been any problem associated with HRM in your busines firm.
3. Is there any relationship between effective HRM and organizational profitability?
4. Has there been any impact on the organizations’ productivity whenever human resource process is reviewed?
1.5 FORMULATION OF HYPOTHESES:
In hypothesis formulation, H1 represents research hypothesis and H0 represents null hypothesis.
1. Employee’s motivation is not critical to the organization productivity.
2. - Universal incentive applied to all levels of staff do not increase the productivity of the organization.
3. There is no positive impact on the firm’s productivity if the HRM is reviewed.
4. Professionalism is not critical to the organizations proficiency and productivity.
1.8 DEFINITIONS OF TERMS:
1. Manpower development: is the process of acquiring and training the number of persons who have educational skills. It includes:
i. Investment by society in education
ii. Investment by employers in training and
iii. Investment by individuals in time and money in their own development.
2. Productivity: Represents the output of services both in quantity and quality.
3. Training: Is a course of special development of the required skills, knowledge and aptitudes. It is seen as an investment.
4. Staff Appraisal: refers to critical performance appraisal. It plays an important role in determining who has potential for development.
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