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HUMAN RESOURCE DEVELOPMENT AND EMPLOYEES COMMITMENT IN SELECTED SMEs IN EDO STATE:

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

An organization’s human-resource development (HRD) system is a key mechanism for enabling the achievement of business goals through what has been argued to be one of the few remaining sources of competitive advantage (Pedler et al., 1988) – namely, people. But key business objectives in today’s business environment are difficult to realize without developing highly committed and motivated employees who would strive to contribute to organizational goals. Several behavioral and HRM studies have been investigating the issues of employee commitment and employee satisfaction since long but its importance was never felt as today in global scenario. Even though both these concepts are seen as psychological links between organizational and employee goal, how to achieve them has not been properly researched. From past many decades, on the one hand, behavioral theorists have tried to focus on various types of commitments like behavioral commitment (Salancik, 1977), organizational commitment (Mathieu and Zajac, 1990), continuance commitment, calculative commitment (McGee and Ford, 1987; Meyer and Allen, 1984), job involvement (Kanungo, 1982; Rabinowitz and Hall, 1977), professional commitment (Lachman and Aranya, 1986), normative commitment (Wiener, 1982), and organizational identification (Hall et al., 1970). On the other hand, HR researchers have favored the use of HRD practices like career ladders, training, flexibility, reduced hierarchies, team, jobs with upgraded skills, job security, new forms of assessment, payment systems, and quality for achieving high commitment (Arthur, 1994; Beer et al. 1984). According to them, the companies with high commitment have high productivity, high job satisfaction, lower scrap rates, and lower employee turnover than those with tight. Unlike western countries, in India, because of overpopulation and rising unemployment amidst growing global economy, HR practices have to take care of issues like earnings, job security, welfare facilities, career planning before thinking about providing overall employee satisfaction and employee commitment (Mankidy, 2004). The primacy of HRD over HRM in India focuses on learning and development for the organization as well as to drive employee behavioral changes in a positive way (Rao, 1999; Pareek, 2004). Our goal, however, is to examine employee commitment (EC) and overall employee satisfaction (OES) in hope of re-directing research in this area, rather than just proposing theories about EC and OES. Most of the work in this field deals with psychological aspects and there remains a gap between theory and practice. Little empirical work has been done on the role of HRD strategies in bringing about EC and OES. We believe that the focus on these two heavily researched measures may have wider implications for HRM and HRD practices.

Wendel (1973) described human resources in his books as consisting of all individuals engaged in any of the organizations activities regardless of their levels. Human resources from the above simply means, men and women working for an organization, irrespective of the post they are holding. However, this went further to emphasis that there was no demarcation for men and women working for the organization that belong or do not belong to the human resources of the organization.

Meanwhile, any activity in the organization from the beginning to the end stage depends on human resources. Therefore, any organization aiming at achieving some of their goals must ensure not only maintaining constant and adequate supply of human resources but also ensure that they were adequately motivated. This is because, the human resources that are motivated will be answering human resources of the organization without putting in their best.

James (1946) stated that the effective use of people is still the key to productivity and your assignment is to motivate people to get the best of their skills and abilities. He affirmed that organization will achieve high productivity more than ever before by motivating their workers and sending them for training.

Morevover, Ubeku (1983) went further to say that although the task of motivating workers is vested on the management team as a while but said that managers have more roles to play. He said that managers, can provide the organization a continuous day to day coaching, appraisal and encouragement – that the employees will need more than ever before. He was of the opinion that manager have upper hand in motivating workers. He further stated that the supervisor who works with his subordinates on this intimate basis can do much to influence his organizations programme.

Training and development of human resources have been considered an expandable luxury in terms of financial constraints. The growth and development of any organization depends on its human resources, a specific cost of management to develop individual skills or a means of developing people for promotion to the next level of organization leadership. While these views carry some validity of human resources should be regarded in the large context of trends in society and the need of changing organization.

In the past, not much importance was attached to the role or human resources development on the growth and efficiency of organizations. No pride of place was given man-power planning and development as a save way to enhance skills knowledge and capacities of personnel in organizations. The importance of investing in human resources has become much clear in recent years because of mounting evidence on the extent of which such investment as an engine change. Although, human resources management is that sub system of an organization which is directly concerned with planning, controlling the procurement, development, compensation, integration and maintenance of the human resources component of the organization. The effectiveness of this sub-system will be judged by the way policies and practices affect the performance and productivity of individual workers will be achieved towards the realization of the effectiveness of the organization.

Today, one of the major problems confronting management in an organization is the most effective way of putting the right position. Management should identify and provide for its human resources to accomplish its task. The concept of organizational effectiveness is that which organizations as a social system give certain resources and means fulfils its objectives without a capacitating its means and resources and without placing undue strain upon its members. The means and resources referred to have cannot be personal constituents of the organization on who the achievement of effectiveness in the organization is based through their increased performance and productivity. The existence of a conducive and carefully designed human resources management policies and practices appear inevitable for the attainment of these goals.

1.2 STATEMENT OF THE PROBLEM

One of the major problems confronting management in any organization is the most effective way of matching people with jobs. This calls for man power planning program. Many organizations fail to progress due to their inability to train and develop their work force. Lack of adequate skills and knowledge, which are required to work and attain the major organizational objectives, constitute a cog in the wheel of achieving them. There has been criticisms from different works of life both within and outside the country about the inefficient performance of our SMEs. The personnel officer should understand and identify certain conditions that will serve as pointers for the need for training. It is in view of this that the researcher intend to investigate how human resource development enhanced employees commitment.

1.3 OBJECTIVE OF THE STUDY

The paramount objective of this research work is to ascertain the impact of human resource development and employees commitment in selected SMEs in Edo state; but for the successful completion of the study, the researcher intends to achieve the following sub-objective

i) To ascertain the role of human resource development in ensuring employees commitment in an organizations.

ii) To evaluate the impact of human resource development on the growth of SMEs in Edo state

iii) To ascertain the relationship between human resource development and employees commitment

iv) To ascertain the effect of employees commitment on the growth of SMEs.

1.4 RESEARCH HYPOTHESES

For the successful completion of the study, the following research hypotheses were formulated by the researcher

H0:human resource management does not play any role in ensuring employees commitment

H1:human resource management plays a significant role in ensuring employees commitment

H0:human resource development has no impact on the growth of SMEs

H2:human resource development has a significant impact on the growth of SMEs

1.5 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. Moreso, 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.

1.6 SCOPE AND LIMITATION OF THE STUDY

The scope of this study covers the human resource development and employees commi

Employees commitment in selected SMEs in Edo state. But in the cause of the study there are some constrain beyond the control of the researcher which limited the scope of the study;

a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study.

b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) FINANCE: The finance available for the research work does not allow for wider coverage as resources are very limited as the researcher has other academic bills to cover.

1.7 DEFINITION OF TERMS

SMEs

The European definition of SME follows: “The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding 50 million euro, and/or an annual balance sheet total not exceeding 43 million euro

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

1.8 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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