ASSESSMENT OF HUMAN RESOURCE MANAGEMENT IN THE PRODUCTIVITY OF AN ORGANIZATION IN NIGERIA
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CHAPTER ONE
INTRODUCTION
1.1 Background to the study
In the past few years, there has been a considerable deal of research focusing on the relationship between strategic Human Resource management practices and organizational performance. These studies were fuelled by the argument that access to capital and technology, are becoming less effective as they can be easily imitated by competing organizations. Human resource is argued to represent an asset that can provide a source of competitive advantage because it’s often difficult to duplicate by competitors and hard to substitute even within the same organization.
Human Resource Management according to Bratton and Gold (2003) is a strategic approach to managing employment relations which emphasizes that leveraging people’s capabilities is critical in achieving competitive advantage. The human resources of an organization is a composition of men and women, young and old who engage in the production of goods and services of the organization. They constitute the greatest assets of any organization.
The human resources are seen as the bedrock of an organization, as the organization is overwhelmingly dependent on human capacity for the supply of physical labour, technical and professional skills, which are germane for effective and efficient planning and implementation of development policies, programmes, projects, and daily activities.
There is no doubt, therefore, that the ability of any organization or society to achieve its goals depends to a large extent on the caliber, organization, motivation and general administration of its human resources. As such, human resource/manpower administration is a critical factor in the achievement of organizational objectives. Very instructively, human resource administration relates to the overall organization planning process by which the organization tries to ensure that it has the right number of persons and the right kind of people, at the right time and at the right place performing functions, which are economically useful and which satisfy the needs of the organization and provide satisfaction for the individual involved.
More importantly, the work environment is absolutely dependent on human factor. Human input is a precondition for proper operation and services. Take for instance, the office computers, plants, automated equipment, office gadgetries, electronic machines, and every other relevant facility found in a modern firm is unproductive except if human effort and direction is carefully applied.
Unlike traditional personnel management which is said to be reactive, short-term and focused on employees at the lower end of the organizational hierarchy, HRM proactively seeks to establish practices and policies which are synergistic across all policy areas in an organization. The HRM approach requires that personnel practices and policies be responsive and adaptive to the needs of the organization. HRM also considers employees as valued strategic resources and not merely a cost to the organization.
In HRM, the proper and effective management of employees in an organization is seen as a source of competitive advantage. Unlike traditional personnel management, which sees employees as passive components of an organization, HRM views employees as a strategic asset which should be nurtured to maximize the potential of employees. Storey (2001) notes that one of the developments emerging in the HRM literature in the late 1980s was the concern about addressing what he terms the œdilemmas in the management of human resources.
Human Resource Management can therefore, be used by organizations to acquire and develop this valuable capital. A number of studies have actually demonstrated that Human Resource Management practices, either individually or as a system, are associated with higher levels of performance (Huselid, 1995; Huang, 1998; Dimba and K’Óbonyo, 2009; Abdulkadir, 2009).
1.2 Statement of the problem
The human resources of any organization as said earlier are the most important resources of any organization, because of the numerous roles it plays. In the organizations and companies, human resources are needed to move, organize, and coordinate the other resources of organization and even to drive their sophisticated machines.
It is no longer a news but a known fact on how the use of machines has tried to displace the use of labour (during the industrial revolution) as a critical factor of production which has drifted many organizations to be described as capital-intensive industries, instead of labour-intensive industries but this new approach in management known as human resources management is seen to have helped in this regard.
Again, workers of most organization complained over the years of lack of motivation, ill treatment, poor employee welfare scheme by their employers, which have resulted in higher labour turnover rate and termination of employment contracts as well as low performance on the part of the workers.
Furthermore, the fact still remains that machines no matter how sophisticated they are, it cannot effectively be utilized in the absence of human factor which is the human resources that possess skills, knowledge, techniques of its operation. This makes it important for a vibrant, quality and professional human resources to be adopted. Hence the approach human resources management becomes paramount.
1.3 Aims and Objectives of the study
This work is principally targeted at studying the management of human resources in organizations and the objectives of this study include:
- To examine the influence of human resource management in organizational productivity.
- To measure the performance appraisal of human resource management in an organization.
- To review the strategic steps taken by human resource management in enhancing organizational performance.
- To examine the challenges encountered by human resource management in an organization.
- To examine the functions of human resource management in an organization.
1.4 Relevant Research Questions
- How does human resource management influence organizational productivity?
- How can the performance appraisal of human resource management be measured in an organization?
- What are the strategic steps taken by human resource management in enhancing organizational performance?
- What are the challenges encountered by human resource management in an organization?
- What are the functions of human resource management in an organization?
1.5 Relevant Research Hypotheses
The following hypotheses were developed for the study:
- Ho: There is no significant relationship between human resource management and organizational productivity.
H1: There is significant relationship between human resource management and organizational productivity.
- Ho: Human resource management does not contribute to organizational performance
H1: Human resource management contribute to organizational performance
1.6 Significance of the Study
When performance standards are clearly articulated by management, employees know what is expected of them, what their role as a part of a group and organization is, what is considered unacceptable performance, and how organizational standards should be achieve.
This research work is believed to be useful and relevant to the entire society, as it will help organizations and other sectors of the economy in knowing and appreciating the roles performed by human resources, in enhancement of organization efficiency as well as how best to manage these human resources.
To this end it will therefore serve as a benchmark for financial researchers to further evaluate the effect of employer-employee relationship, and how it ultimately impacts the performances and growth of the manufacturing industry in Nigeria.
Consequentially, it will aid the Government, policy makers and stakeholders properly articulate critical areas in HR that needs to be improved on so as to forge a stronger workforce.
1.7 Scope and Limitation of the Study
The work will examine the assessment of human resource management in the productivity of an organization in Nigeria with a view to explore Dangote Sugar Plc in Apapa, Lagos. In addition, the study will cover what human resources management is, its components, functions, objectives as well as how it increase organization efficiency.
Some perceived constraints may be encounter by the researcher in the course of carrying out the research work. The limitations are as follows:
- Inadequate material: Inadequate material constituted one of the limitations of the research work. The non-availability of materials like journals, textbooks etc the research study.
- Finance: The researcher also may encounter some financial constraints which will contribute in limiting the work in the sense that fund available was not enough to carry out the research to a logical conclusion.
iii. Time: Time is also another factor or limitation that may affect the research work. The limited time may not give the researcher enough opportunity to do more rigorous work.
- Definition of Terms
Firms: This can be defined as a business entity or a unit of an industry.
Organization: An organization is a social group which distributes tasks for a collective goal.
Environment: Environment (systems), the surroundings of a physical system that may interact with the system by exchanging mass, energy, or other properties.
HR: Human Resource.
HRM: Human Resource Management.
Human resources: These are human beings used in the production process.
Influence: Influence is the action or process of producing effects on the actions, behavior, opinions, etc., of another or others.
Management: This is defined as the rational process if combining and utilizing the physical material and financial resource in an efficient and effective manner in order to achieve set objectives of the organization.
Performance: A performance, in performing arts, generally comprises an event in which a performer or group of performers behave in a particular way for another group of people, the audience. Choral music and ballet are examples.
Productivity: Productivity is a measure of the efficiency of production. Productivity is a ratio of production output to what is required to produce it (inputs). The measure of productivity is defined as a total output per one unit of a total input.
Resources: These are things that a country or an organization or individual uses especially to raised the level of output or wealth.
Workforce: This has to do with the sum-total of individuals that works in a particular organization
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