HUMAN RESOURCE MANAGEMENT AS TOOL FOR ATTAINING HIGH PRODUCTIVITY IN AN ORGANIZATION (A CASE STUDY OF THREE ORGANIZATIONS IN LAGOS STATE)

CHAPTER ONE

INTRODUCTION

1.1. BACKGROUND OF THE STUDY

The development of any organization depends to a very large extent on the calibre of the organization and motivation of its human resources. The major contributory area to success of the organization is the management of workers. For a Business to be successful in a market economy it should be dependent on the optimal utilization of relevant resources such as the financial resources, material resources, and human resources. It is through the combination of these resources that the attainment of the goal will be achieved. However the most significant and complex component for the attainment of organizational productivity is the human resource. According to Udo-Udoaka (2014), human resource refers to the managerial, scientific, engineering, technical, craft and other skills which are developed and employed in creating, designing and developing organization and in managing and operating productive and service enterprise and the economic institution. An organization must have the right number and types of employees who must be managed in such a way that they will be able to achieve their personal and organizational objectives. Since the early 1980s, the field of human resources management has been in a state of rapid transition. As the world continues to experience profound changes, different sets of changes are allowed to set in. Today, most managers are comfortable with the term “Human Resources” but a few still prefer to refer to “people”, “Employee” or “staff” and to use the term “personal management”. Cowling (2013) argues at one level that terminology ‘may be deemed to be less important, because it is practice that really counts. However, at another level, he argues that it does matter because ways of managing people at work have come a long way in the last fifteen years, and a refusal to use the modern term “human resources” can be an indication of a failure to recognize and utilize recent development. Human resource management (HRM) involves practices that ensure that employees’ collective knowledge, skills, and abilities contribute to business outcomes (Huselid, Jackson, & Schuler, 2016). The traditional concept of Human Resource Management focused on managing, measuring, and controlling organization’s workforces. Human Resource Management includes selection testing, training, performance measurement and administration of benefits (Whitener, 2016). Huselid, et al (2016) has identified empirically a second dimension of Human resource management activities: strategic Human Resource Management which involves employee participation and empowerment, communication, team based work design, and development of managers of the organization. Arthur (2011) identified two types of human resource systems similar to those found by Huselid et al (2016): Commitment and control. The human resource system that is based on commitment is focusing on the psychological links between organizational and employee goals. It is associated with higher involvement in managerial decision, participation, providing training and rewards. A human resource system that is based on control focuses on directly monitoring and rewarding employee behaviour or the specific outcomes of that behaviour (Arthur, 2011). Human Resource Management practices increase productivity by increasing employees’ skills and motivation. Moreover, Human Resource Management practices contribute to business objectives through strategic innovation or technical competence. Recent empirical studies on larger companies supported the basic assumptions of Human Resource Management theory (Huselid, 2010; Huselid et al., 2016). Human Resource Management also carries costs and they might neutralize the positive effects of Human Resource Management in small-scale enterprises. Human Resource Management is an investment, and thus, it costs time and/or money. The current performance of employees may even be decreasing because of the time spent on training. Moreover, Human Resource Management can only have effects when employees stay in the company for a certain period of time. Otherwise, the company suffers a loss because of the investments in Human Resource Management. Thus, the benefits of Human Resource Management must exceed costs invested in Human Resource Management. Since small-scale enterprises have limited financial resources it is very well possible that large investments in Human Resource Management do not pay off. This work, therefore, reviews human resource management as a tool for organizational productivity.

1.2. STATEMENT OF THE PROBLEM

Human Resource Management has made significant inroads into the Nigerian corporate world. It is common to see large organisations in Nigeria set up a whole department for the sole purpose of managing human resources and hire experts in the field to be in charge of Human Resource Management. The enormous benefits of properly managing human resource cannot be over emphasised. However, the majority of the organizations in Nigeria are yet to catch the ‘Human Resource Management cold’. Inappropriate Human Resource Management policies and practices of some of these organizations can be attributed to the non-existence of Human Resource Management specialists or Human Resource Management departments. Research has established significantly a positive relationship between an organisation’s Human Resource Management practices and performance. Most of these organizations do not realise the impact of properly managing its human resource and therefore leave policies in the hands of line managers and board of directors who are non- Human Resource Management experts to implement or enforce strategies, policies, processes, programmes and practices. The value of properly managing human resources is lost to such organizations. Management of people and management of risk are two key challenges facing organizations. How you manage the people and how you manage the risks determines your success in the business organizations. Efficient risk management may not be possible without efficient and skilled manpower.

1.3 AIMS OF THE STUDY

The major purpose of this study is to examine human resource management as a tool for attaining high productivity in an organization. Other general objectives of the study are:

1. To examine the efficiency of human resources training and development in organizational growth.
2. To examine whether human resources practices have any influence on organizational productivity.
3. To examine the impact of human resource management as a tool in enhancing productivity in an organization.
4. To examine factors affecting human resource development in an organization.
5. To examine the relationship between human resource management and organizational productivity.
6. To examine the problems encountered during the process of human resource management.

1.4 RESEARCH QUESTIONS

1. To examine the efficiency of human resources training and development in organizational growth.
2. Does human resource practices have any influence on organizational productivity?
3. What are the impacts of human resource management as a tool in enhancing productivity in an organization?
4. What are the factors affecting human resource development in an organization?
5. What is the relationship between human resource management and organizational productivity?
6. What are the problems encountered during the process of human resource management?

1.5 RESEARCH HYPOTHESES

Hypothesis 1

1.  There is no significant impact of human resource management on high productivity in an organization.
2. There is a significant impact of human resource management on high productivity in an organization.

Hypothesis 2

H0: There is no significant relationship between human resource management and productivity in an organization.

H1: There is a significant relationship between human resource management and productivity in an organization.

1.6 SIGNIFICANCE OF THE STUDY

Human Resource Management is the backbone of any organization or firm. Human Resource Management plays a vital role in the productivity of the organizations in Nigeria. The research work will be significance in the following ways:

1. The findings of this research will serve as a guide in the productivity of other organizations through their human resource.

2. The findings of this study will enable for proper management of human resource which will lead to effective customer value and productivity in organizational management.

3. It will also enhance government, private sector and general public participation contribution in addressing this human resource management in organizations in Nigeria.

4. The study will enable me to contribute my own views and ideas on managing human resource and productivity in organizations of Nigeria.

5. The study will be of immense help to other people and students who might wish to carry out other researches in the field.

1.7    SCOPE OF THE STUDY 

The study is based on human resource management as tool for attaining high productivity in an organization (A case study of three organizations in Lagos state).

1.8 LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.9 DEFINITION OF TERMS

Human Resource Management:  Is the way organizations manage their staff and help them to develop (McCourt & Eldridge 2015) in order to be able to execute organizations’ missions and goals successfully.

Human Resource: Are those inherent and special traits as skills, creative abilities, experience, talents, energy, knowledge competence, belief etc. that a person possesses which are needed and put to use by a person or a group of people to achieve set goals and objectives (Stewart, 2011).

Organization: According to Stewart (2011) “organizations are set up to achieve purposes that individuals to achieve on their own organization they provide a means of working with others to achieve goal….like to determine by whoever is in the best position to influence them… A key characteristic of organization is their complexity”. Individuals in organization, depend on each other’s effort through interactions and which enable them work to words the realization of common goal. Laid down structures however fashion out how they relate to others. It can also be define as a group of people identified with shared interest or purposes, example business or school.