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CHAPTER ONE
INTRODUCTION
1.1 Background of the study
The
management of people within the organisation has become an increasingly
recognized important focus for researchers and practitioner over the past 20
years. Organisations are becoming more aware of important role human resource
play in the success of their organisations to achieve financial performance. As
a result, organisations are becoming more employee-centric by focusing on
enhancing employees’ engagement and organisational commitment
It is important for organisation to adopt human resources management (HRM)
system that optimizes workforce as it enables organisation to achieve
competitive advantage in today’s global market economy that provides wider
access to technology, finance and other resources. Pfeffer (1994) stated that
firms have increasingly recognized the potential for their peopleto be a source
of competitive advantage. Creating competitive advantage through people
requires careful attention to the practices that best leverage these assets.
According to Nishii, (2008) scholars generally agree that appropriately
designed, Human resources management practices can enhance organizational
performance. Related theories suggesting and supporting assumption holds that
the practices of Human Resources Management influences employees attitudes and
behaviours.
Human Resource Management is an invisible asset in an organisation. It creates
value when embedded in the operational system that enhances organisational
performance and ability to deal with turbulent environment. Effective HRM
assists in developing human resources into high quality and efficient workforce
thus enabling the organisation to obtain a competitive advantage through their
people. In contrast, inefficient workforce can increase labour cost and
decrease organisation productivity. However, in order to remain competitive,
grow and diversify, an organisation must ensure that its employees are
qualified, placed in appropriate position, properly trained, managed
effectively and committed to the firm’s success. The goal of HRM is to maximize
employees contribution in order to achieve optimal productivity and
effectiveness while simultaneously attaining individual objective (such as
having a challenging job) and obtaining recognition) and societal objectives
(such as legal compliance and demonstrating social responsibility).
Human resource dimensions or practices (training, recruitment, reward system
performance appraisal etc) have considerable impact on the performance of
organizations and these contribute to the affirmative link between human
resource management and organizational performance (Osman, 2012).
Training is a flexible way to develop an employee as it consists of both formal
and informal ways to enhance the effectiveness and efficiency of employees
(Ellstrom, 2011). Job security increases employees’ honesty, keeps employees
committed to the organization and provides security to valuable information as
well (Raji and Jackson, 2011). Reward system is imposed on organization to
evaluate reward and organization reward employees on the basis to get value by
elaborating what they have spent and what they have got (Armstrong, 2011).
Employee performance can be evaluated by the evaluation of task and reward
system. Employee performance is one that is affected by the knowledge transfer
that helps employee to develop their understanding of networking as well as
focusing on the organizational performance.
Organizational performance is related to organizational justice which allows
employees to get committed to task assigned to him or her. HRM dimensions
greatly influences the employees attitude which in turn affects employees’
performance. If HRM system works effectively, then increase in the
organizational performance will be seen (Snape and Redman, 2010). Competitive
advantage is viewed as a source of competitive advantage is a must for any organization
and employees are always viewed as source of competitive advantage for any
organization (Barney, 1991; Pfeffer, 1994). So, human resource management must
be made in such a way that can utilize employees in the best possible way to
increase performance of organizations.
1.2 STATEMENT OF THE PROBLEM
Research
problem is an intellectual stimulus calling for an answer in the form of
scientific inquiry.From experience over the years, with the role of human
resource management in the achievement of organizational goal in Nigeria
compared to other organizations of the world. It has been observed that human
resource management in Nigeria have not performed well to support the
efficiency and growth of the nation.Any management that is keen on training its
personnel is usually faced with the problem of cost/benefit analysis. It is
very easy to work cost but it is difficult to put value on the asset. It is
therefore pertinent to list the problems associated with training human
resource in the organization.
It has been observed that the problem facing business and increasingly number
of workers are being faced with poor condition of service including
remuneration. Furthermore, the foreign exchange problem has added a new
dimension to the range of problem facing business organization. The overall
effect of the problem is that most business organization can no longer afford
to offer the employees good remuneration and adequate compensation for their
labour. This is a situation that brought about ineffectiveness of human resource
in the achievement of organizational goals.
Presently, Nigeria economy is experiencing some economic difficulties which
have resulted in retirements, retrenchments, lay-offs, mergers and acquisitions
and dismissal of employees.
Furthermore, prominent among the reasons why organizations perform poorly in
most organization in Nigeria is the problem of fund. Thus, this is the reason
for the introduction of two schemes and programmes by the federal Government
through the CBN which are geared towards improving the accessibility and
availability of credit to the companies in order to make them more vibrant.
Even the funds cannot manage themselves without the human resource.
At this point, the problem this study seeks to address is to find out the impact of HRM and how it has facilitated the growth and achievement of organizational goals.
1.3 OBJECTIVES OF THE STUDY
Research
objectives are statements that the research project will attempt to achieve.
They provide the guidelines for establishing research agenda of activities
necessary to implement the research process (Hair et al, 2006; 663).
The main objective of this study is to find out the impact of Human Resource
Management (HRM) on organizational performance. Aside this, other specific
objectives that will be addresses are;
1. To determine the relationship between recruitment and selection on employees’ turnover.
2. To examine the influence of reward system on job satisfaction.
3. To find out the effect of training and development on profitability
4. To determine the impact of performance appraisal on employee’s productivity.
1.4 RESEARCH QUESTIONS
Research
Question is the question which the researcher set out to answer. It is
essentially a hypothesis asked in the form of a question (Kerlinger 2006).
Given the objectives of the study above, the following research questions are
this formulated to guide the study
1. Does recruitment and selection have effect on employees’ turnover?
2. What role does reward system play on job satisfaction?
3. Is there any association between training and development on profitability?
4. What is the relationship between performance appraisal and employee’s productivity
1.5 RESEARCH HYPOTHESIS
Research
hypothesis is a formal statement that presents the expected relationship
between an independent and dependent variable (Creswell 2006).
From the research questions above, this study will be anchored on the following
hypothesis
Ho1: Recruitment and selection has no significant association on employee’s turnover.
Ho2: Reward system
negatively influences Job satisfaction
Ho3: Training and development does
not affect profitability
Ho4: Performance appraisal cannot
directly determine employee’s productivity.
1.6 SCOPE OF THE STUDY
The
study is carried out within Asaba metropolis, Oshimili South Local Government
Area of Delta State, Nigeria. The study focuses on the telecommunication
industry in Nigeria generally but only covers Airtel Nigeria Plc.
The sampling objects used in the study are employees and customers of Airtel
telecommunication industry, Asaba metropolis. It was presumed that this group
of people could provide more information in response to the questions contained
in the questionnaire – The impact of Human Resource Management on
Organizational Performance.The highlighted indicator of the independent
variable includes training and development, performance appraisal, recruitment
and selection and reward system. Although, Human resource management covers a
very wide range of dimensions or indicators, but focus will only be made on the
above listed indicators.
Staff Reluctance: In most cases the staffs of Flour Mills PlcCalabar often feels reluctance over providing required information required by the researcher. This result in finding information where the structured questionnaires could not point out.
Researcher’s Commitment: The researcher, being of full time student spent most of her time on other academic activities such as test, class work, assignment, examination etc which takes average focus from this study.
Inadequate Materials: Scarcity of material is also another hindrance. The researcher finds it difficult to long hands in several required material which could contribute immensely to the success of this research work.
1.7 DEFINITION OF TERMS
Human resource:Human resources are the people who make up the workforce of an organization, business sector, or economy. "Human capital" is sometimes used synonymously with "human resources", although human capital typically refers to a more narrow view (i.e., the knowledge the individuals embody and economic growth).
Management:Management (or managing) is the administration of an organization, whether it be a business, a not-for-profit organization, or government body.
Organization:An organization or organization is an entity comprising multiple people, such as an institution or an association, that has a collective goal and is linked to an external environment.
Effectiveness:Effectiveness is the capability of producing a desired result or the ability to produce desired output. When something is deemed effective, it means it has an intended or expected outcome, or produces a deep, vivid impression.
1.8ORGANIZATION 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 is 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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