HUMAN RESOURCE MANAGEMENT IN THE PRODUCTIVITY OF AN ORGANIZATION IN NIGERIA

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CHAPTER ONE

INTRODUCTION

 1.1 Background to the study

Human Resource Management (HRM) according to Bratton and Gold (2003) is œa 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.

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

Despite several studies that exposed the positive effects of Human Resource activities on an organization’s performance, the main reason why this study is conducted is that there are several problems that were not fully addressed in previous studies.

First, there is no harmony on how and what to measure regarding effective HRM practices. Although it would be impossible to measure each HRM practice carried out at workplaces, HRM researchers and practitioners should agree on the representative HRM items that are the most influential in terms of boosting an organization’s lower staff (bottom line). This unsettled issue of measurement items of HRM creates difficulties when applying the findings of such academic studies to the workplace and when comparing results across the studies.

Second problem stems from the level of measurement. As Bamberger and Meshoulam (2000) pointed out, measuring HRM practices at different levels within an organization and between organizations is likely to yield different results. In 1998, Delery studied that assuming that the use of practices across an organization is the same for all levels of employees is probably a false assumption.

Furthermore, the most imperative and critical problem is measuring the outcomes of HRM on organizational performance. However, there is a little theoretical consensus on basic definitions and technical issues. Kanter (1981) stated that the problem is œnot how to measure effectiveness or productivity, but what to measure; how definitions and techniques are chosen. Studies about the contribution made by human resources activities to the attainment of business and financial objectives have adopted measures or indicators of organization performance without prior conceptual questioning of what to measure.

1.3 Aims and Objectives of the study

This research work seeks to study the human resources management in organizations and the objectives of this study include:

1. To examine the influence of human resource management in organizational productivity.
2. To measure the effect of human resource activities on organization’s turnover.
3. To review the strategic steps taken by human resource management in enhancing organizational performance.
4. To examine the challenges encountered by human resource management in an organization.
5. To examine the contribution of human resource activities to the achievement of an organization business and financial objectives.

1.4   Relevant Research Questions

1. How does human resource management influence organizational productivity?
2. How effective is human resource activities on organization’s turnover?
3. What are the strategic steps taken by human resource management in enhancing organizational performance?
4. What are the challenges encountered by human resource management in an organization?
5. Does human resource activities contribute to the achievement of an organization business and financial objectives?

 1.5   Relevant Research Hypotheses

The following hypotheses were developed for the study:

1. H_o: There is no significant relationship between human resource management and organizational productivity.

H₁: There is significant relationship between human resource management and organizational productivity.

1. H_o: Human resource management does not contribute significantly to organizational performance

H₁: Human resource management contribute significantly 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 researchers to further evaluate the effect of Human Resource (HR) “ employee relationship, and how it ultimately impacts the performances and growth of the manufacturing industry in Nigeria.

Consequently, it will aid the Government, policy makers and stakeholders properly to 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 seeks to examine human resource management in the productivity of an organization in Nigeria with a view to exploring Dangote Flour Mill in Apapa, Lagos. In addition, the study will cover what human resources management is, its components, functions, objectives as well as how it increases organizational efficiency.

 1.8 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.

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

 REFERENCES

Abdulkadir, D. S. (2012). Strategic Human Resource Management and organizational performance in the Nigerian Insurance Industry: The impact of organizational climate.Business intelligence Journal, pp.8 “ 10.

Bratton, J. and Gold, J. (2003). Human Resource Management: Theory and Practice, 3^rdedition, Hampshire: Palgrave Macmillan

Delery, J. E. (1998). Issues of fit in strategic human resource management: Implications for research. Human Resource Management Review, 8(3), 289-309.

Dimba B. and K’Obonyo P. (2009). The Effect of Strategic Human Resource Management Practices on Performance of Manufacturing Multinational Companies in Kenya: Moderating Role of Employee Cultural Orientations and Mediating Role of Employee Motivation, pp. 22-24

Kanter, R.M. (1981). Organizational performance: Recent development in measurement.Annual Review Sociology, 7, 321-349.

Meshoulam, G. (2000). Human Resource Strategy. Sage Publications, Inc. Thousand Oaks, CA.

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