HUMAN RESOURCE MANAGEMENT AND ORGANIZATIONAL PERFORMANCE

ABSTRACT

The purpose of this research work is to highlight on managing the human resources of   business organizations. Today’s business environment is in the state of flux, where competition is the name of the game. Organizations that fail to change may be forced to change from existence to nonexistence, hence survival is the panacea. To survive, companies must explore all available avenues that can bring about competitive advantage. To develop a competitive advantage, it is important that firms truly leverage on the workforce as a competitive weapon. Specifically, the study aimed to pursue the following objectives: to establish the relationship between Human capital management and organizational survival, to determine the effect of training and development on organizational performance, to examine the role of environmental factors on organizational productivity, to ascertain whether effective recruitment and selection boost human resource management. The study had a population size of 1,210, out of which a sample size of 303 was realised using Taro Yamene formula at 5% error to tolerance and 95 % level of confidence. Instrument used for data collection was primarily questionnaire and interview. The total numbers of 303 copies of the questionnaire were distributed while 283 copies were returned. The descriptive research design was adopted for the study. Four hypotheses were tested using Pearson’s moment correlation coefficient, chi-square (x2) and Z- test statistical tools. The findings indicate that there was significant relationship between human capital management and organizational survival . Training and development positively affects organizational performance. Environmental factors significantly affect organizational productivity; Effective recruitment and selection significantly boost human resource management of an organization. The study concluded that theoretical and technological advance in human capital management has allowed manufacturing organizations to move beyond managing personnel by head count and billet, the managing their workforces. The study recommends that Organizations should take training and development programmes serious because that determines how effective and efficiently organizations are been run.

CHAPTER ONE INTRODUCTION

1.1   BACKGROUND OF THE STUDY

Organizations are increasingly looking at human resources as unique assets that can provide sustained competitive advantage. The changes in business environments with increasing globalization, changing demographics of the workforce, increased focus on profitability through growth, technological changes, intellectual capital and the never ending changes that organizations are undergoing have led to increased need for managing human resources (Devanna, Fombrum, and Tichy, 1998). A human resource (HR) department that is highly administrative and lacks strategic integration fails to provide the competitive advantage needed for survival, thus losing its relevance. Huselid and Becker (1997) found that there were noticeable financial returns for organizations whose human resource management (HRM) systems have achieved operational excellence and are aligned with strategic business goals. According to Ulrich (1998), a major role of Human Resource Personnel is to become a strategic business partner. Youndt and Scott (1996) find that firms employing HR practices according to the stated strategy are regarded as having better perceptual performance. Singh (2003) gives a broader approach to looking at strategic human resources management (SHRM) by integrating various functions and establishing the linkage between these functions and the business plan. It is important not only to identify HR competencies in concurrence with the business needs and to develop selection and development practices to secure those competencies, but also to evolve and implement a performance evaluation plan that links the performance of the employees to the strategic goals. The term “survival” has many connotations — both subjective and objective. The most objective way to measure survival in organizations is to observe their continuing existence. This is problematic given the nature of mergers and acquisitions (John , 2009). A way of clarifying the matter is to employ a resource dependence approach (mckean, 1991). An organization survives as long as it “acquires inputs from suppliers and provides outputs to a given public (customers, clients, patients, etc.).” for the purposes of this study survival is simply non-failure and improved performance of the organization.Human Resource Management issue have been major concerns for managers at all levels  because they all reach their goals through the effort of others this requires the effective and efficient management of people (Desler et al 1999). The spacious array of HRM activities for example, planning, recruiting, selection and training just to mention a few place enormous responsibilities on supervisors and managers alike. These include  analyzing  jobs, planning  labour needs, selecting employees orienting and training employees, managing compensation, communicating (which includes counseling and disciplining) and maintaining employee commitment.In addition to the already mentioned activities are, ensuring fair treatment, appraising performances, ensuring employee health and safety, building and maintaining good employee labour relations, handling complaints , occupational health and safety, labour relations, and other legislation affecting the workplace. Regardless of field of expertise, from accounting to production control, learning about employees right, employer responsibilities, and effective Human Resource Management practices may provide all managers with knowledge that enable them to perform more effectively.

1.2   STATEMENT OF PROBLEM

The most precious resource of an organization, which forms its backbone, is its Human Resource. Behind every successful organization there is a team of highly motivated and dedicated workforce committed to achieving its goal . Human Resource is not only the prime mover of all economic activities but also the end goal of such activities. Proper Manpower planning, their future growth and development, needs and fulfillment of day-to -day requirement are vital for the prosperity and health of any organization. Most successful organizations have devised ways to keep their human resources highly satisfied and make them participative in crucial matter related to the organization. For some time, now the Nigerian economy has been under serious pressure as a result of prolonged economic depression. In the face of the gloomy picture however, our organizations still need to stay afloat. The problem of the human element in Nigerian organizations has been  eaten up by inflation. They have several needs that are grossly difficult to achieve, the low demand of outputs of organizations is affecting their willingness to empower by of training and development. The possibility of displacement by efficient machines (computers, robots ete) is affecting the  psyche of the worker. Pertinent to the above, the study seeks to investigate managing the human resources of business organisations  in a depressed  economy.

1.3       OBJECTIVES OF THE STUDY

Given the statement of the problem above, this study aims to achieve the following objectives.

1. To determine the relationship between Human capital management and organisational survival.
2. To determine the effect of training and development on organizational performance.

• To examine the role of environmental factors on organizational productivity.
• To ascertain whether effective recruitment and selection boost human resource management.

1.4       RESEARCH QUESTIONS

For this study to accomplish it desired objectives, some basic research questions were formulated

• What is the relationship between Human capital management and organisational survival?
• What are the effects of training and development on organizational performance?
• What role do environmental factors play in organizational productivity ?
• How do effective recruitment and selection boost human resource management?

1.5       RESEARCH HYPOTHESES   

The following hypotheses was formulated and will be  tested in their null forms .

1. Ho: there is no significant relationship between human capital  management and organisational survival.

H₁:       there is   significant relationship between human resource  management and organisational performance

2. Ho: Training and development do not positively affect Organizational

H₁:       Training and development positively affect organizational      productivity.

3. Ho: Environmental factors do not significantly affect organizational

H₁:       Environmental factors significantly affect organizational  productivity.

4. Ho: Effective recruitment and selection do not significantly boost  human resource management of an organization.

H₁:       Effective recruitment and selection significantly  boost human  resource management of an organization.

1.6       SIGNIFICANCE OF THE STUDY

1. The findings of this study will enable management appreciate better the need for effective manpower planning, training and development programmes in the organization.
2. It will show how an organization can develop and maintain a good workforce that will ensure or enhance organization‟s effectiveness and increased productivity through effective management, planning and development.
3. The findings of this study would highlight the need for managers and trainers to design the content of their training and development programmes to reflect the needs of the employees and the organizations in other words, managers and trainees of business organizations will find the research findings very useful.
4. The study will be of immense help to other people and students who might wish to carry out research on the topic under study.

HUMAN RESOURCE MANAGEMENT AND ORGANIZATIONAL PERFORMANCE