EVALUATION OF THE IMPACT OF HUMAN RESOURCE MANAGEMENT ON ORGANIZATIONAL PERFORMANCE IN NIGERIA A RESEARCH STUDY OF NIGERIAN BREWERIES PLC 9TH MILE CORNER ENUGU AND EMENITE LIMITED ENUGU

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ABSTRACT

This research work is on “Evaluation of the impact of Human Resource Management on organizational performance in Nigeria”. A research study of Nigerian Breweries Plc, 9th mile corner Enugu and Emenite Ltd Enugu. The prime objective is to critically identify the impact of Human Resource Management on organizational performance. Organization as an open system cannot operate in isolation, they must align with their human resources and the environment to be successful, hence the reason for this work. The first chapter of the research work highlighted on the background of the study backed with the research  problem, objectives of the study, research questions, formulation of hypotheses, significance of the study, scope of the study, limitation of the study and definition of  relevant terms. The second chapter delved into the relevant secondary data acquisition by authorities (authors) needed in solving the problems of this study to avoid disparities. The third chapter of this research paper looked at the research design and methodology at the research design and methodology used in approaching and solving our problem of study backed with the data collection instrument used, the population size was also determined. Chapter four of this research work took us to the area of data presentation and analysis which involve the use of tables to illustrate findings from the distributed questionnaires. Consequently, hypotheses were tested and the findings were related. The last chapter is summary of findings, conclusion, and recommendations. The major findings of the study are: The human resource practices within the organization has a direct link with the level of productivity, the relationship that exist between the management and employee also contribute to the level of performance, adequate motivation of employees would  lead to an increase in the level of productivity. The work concludes that human resource management is necessary for all employers and employees of an organization because it has an adverse effect on the level of performance. On the basis of this finding it was recommended that the management organization should pay attention to its human resources and ensure that quality human resource practices, good communication system and adequate motivational polices are put in place within the organization in order to ensure improved performance as a source of competitive advantage or edge over other competitors and to ensure employees’ loyalty to the organization.  

TABLE OF CONTENT

TITLE PAGE                          –        –        –        –        –        –        i

CERTIFICATION                   –        –        –        –        –        –        –        ii

DEDICATION     –        –        –        –        –        –        –        –        iii

ACKNOWLEDGEMENT       –        –        –        –        –        –        iv

ABSTRACT                  –        –        –        –        –        –        –        vii

TABLE OF CONTENT –        –        –        –        –        –        –        viii

CHAPTER ONE

1.1     BACKGROUND OF THE STUDY  –        –        –        –        1

1.2     STATEMENT OF THE PROBLEM –        –        –        –        4

1.3     OBJECTIVES OF THE STUDY      –        –        –        –        6

1.4     RESEARCH QUESTIONS     –        –        –        –        –        7

1.5     FORMULATION OF HYPOTHESIS        –        –        –        –        8

1.6     SIGNIFICANCE OF THE STUDY –        –        –        –        9

1.7     SCOPE OF THE STUDY                 –        –        –        –        11

1.8     LIMITATION OF THE STUDY       –        –        –        –        11

1.9     DEFINITION OF TERMS:     –        –        –        –        –        12

1.10   BRIEF OVERVIEW OF NIGERIAN BREWERIES PLC –     14

1.11   BRIEF OVERVIEW OF EMENITE LIMITED ENUGU –      19

CHAPTER TWO

2.0     REVIEW OF RELATED LITERATURE   –        –        –        25

2.1     MEANING OF HUMAN RESOURCES    –        –        –        25

2.2     THE MEANING OF MANAGEMENT     –        –        –        26

2.3     DEFINITIONS AND MEANING OF HUMAN RESOURCES MANAGEMENT      –        –        –        –        29

2.4     THE EVOLUTION OF HUMAN RESOURCES MANAGEMENT  –        –      34

 2.5    HUMAN RESOURCES AND PERSONNEL MANAGEMENT        –        37

2.6     CONCEPT AND VERSIONS OF HUMAN

          RESOURCES MANAGEMENT-     –        –        –        –        43

2.7     VERSIONS OF HUMAN RESOURCE MANAGEMENT     45

2.8     NATURE OF HUMAN RESOURCE MANAGEMENT        –        48

2.9     THE SCOPE OF HUMAN RESOURCE MANAGEMENT (HRM)  –           48

2.10   THE OBJECTIVES OF HUMAN RESOURCE MANAGEMENT          –        –        –        –        –        –        –        49

2.11   THE FUNCTIONS OF HUMAN RESOURCE

MANAGEMENT          –        –        –        –        –        –        51

2.12   WHO PERFORMS THE HUMAN RESOURCE

FUNCTIONS       –        –        –        –        –        –        –        59

2.13   MODELS OF HUMAN RESOURCE MANAGEMENT –      59

2.14   THE HUMAN RESOURCE DEPARTMENT     –        –        65

2.15   CHALLENGES OF HUMAN RESOURCE MANAGEMENT  –        –       67

2.16   FACTORS AFFECTING HUMAN

RESOURCES MANAGEMENT PRACTICES   –        –        69

2.17   BENEFITS OF HUMAN RESOURCE

MANAGEMENT PRACTICES        –        –        –        –        77

2.18   HUMAN RESOURCE MANAGEMENT IN NIGERIA         –        82

2.19   HUMAN RESOURCES MANAGEMENT

PRACTICES IN ORGANIZATIONS         –        –        –        –        86

2.20   THE CONTRIBUTION OF HUMAN RESOURCE

MANAGEMENT TO ORGANIZATIONAL PERFORMANCE      -92

2.21   THE IMPACT OF STRATEGIC HUMAN RESOURCE MANAGEMENT ON ORGANIZATIONAL

PERFORMANCE          –        –        –        –        –        –        –    –   98

CHAPTER THREE

3.0     RESEARCH METHODOLOGY      –        –        –        –        114

3.1     RESEARCH DESIGN   –        –        –        –        –        –        114

3.2     AREA OF STUDY        –        –        –        –        –        –        114

3.3     SOURCES OF DATA   –        –        –        –        –        –        114

3.4     PRIMARY SOURCES OF DATA    –        –        –        –        114

3.5     SECONDARY SOURCES OF DATA:      –        –        –        115

3.6     POPULATION OF THE STUDY     –        –        –        –        115

3.7     SAMPLE SIZE DETERMINATION AND

SAMPLING TECHNIQUES   –        –        –        –        –        116

3.8     PROCEDURES FOR DATA COLLECTION      –        –        117

3.9     VALIDITY AND RELIABILITY OF THE RESEARCH INSTRUMENT –        –        –          –        –        –        –        118

3.10   METHODS OF DATA ANALYSIS –        –        –        –        118

CHAPTER FOUR

4.0     DATA PRESENTATION, ANALYSIS AND

INTERPRETATION     –        –        –        –        –        –        120

4.1     TESTING OF HYPOTHESIS –        –        –        –        –        127

CHAPTER FIVE

5.0     SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS   –        –          –        –        –        –        133

5.1     SUMMARY OF FINDINGS   –        –        –        –        –        133

5.2     CONCLUSION    –        –        –        –        –        –        –        135

5.3     RECOMMENDATIONS         –        –        –        –        –        –        136

BIBLIOGRAPHY          –        –        –        –        –        –        –        138

          APPENDIX          –        –        –        –        –        –        –        149

CHAPTER ONE

1.1 BACKGROUND OF THE STUDY

Organizations are increasingly looking at human resources as a unique asset that can provide sustained competitive advantage. The changes in the business environment with increasing globalization, changing demographics of the workforce, increased focus profitability through growth, technological changes, intellectual capital and the never-ending changes that organizations are undergoing, have led to increased importance of managing human resources. Devanna, Fombrun and Tichy 1981; Wright (1998).

          The impact of human resources management in an organization’s strategic management planning is extremely important in helping firm to find ways to compete effectively in the domestic and foreign market.

          However to improve  the         quality and productivity in organizations most executive employs human resources management such as employees motivation programs, employees training and education, and changing the organization’s culture, including other resources in order to achieve results.

          According to Jack Pitz-enz (2000:7) “people are the only element with the inherent power to generate value”. All other components offer only inert potentials. By their nature, they add nothing, and they cannot add anything until some human beings be it the lowest – level laborers, the most ingenious  professional or the loftiest executive leverage that potential by putting it into action.

          The increasing significant role of human resource management in achieving objectives is evident in the transformation functions. It has evolved from concentration on employee welfare to one of managing people in a way so as to obtain the best and highest productivity possible from the employee, through methods that provide the employees with both intrinsic and extrinsic reward.

          Human Resources Management is the strategies and coherent approach to the management of an organization’s most valued assets; the people working there who individually and collectively contribute to the achievement of the objectives of the business. The term “Human Resources Management” has largely replaced the term “Personnel Management” as a description of the processes involved in managing people in organizations. In simple words, Human Resources Management means employing people, developing their capabilities, utilizing, maintaining and compensating their services in tune with the job and organizational requirements.

          According to Lake (1990), Human Resources Management system can be the source of organizational capabilities that allows firms to learn and capitalize on new opportunities. The main characteristics of Human Resources Management approach is that it meets the needs for a strategic approach to Human Resources Management which achieves “fit” between the business and the human resources strategy.

          Human Resources is viewed as a source of competitive advantage in line with the concept of resource – based strategy; it is a comprehensive and coherent approach to the provision of mutually supporting employment policies and practices, and it is adopted through the development of integrated Human Resources policies and practices, Armstrong (2001). Some people believe that there are universal principles, practices and general know-how on which efficient and effective Human Resources Management is based. Adler and Ghader (1990) argued that companies handle Human Resources Management issues as if they were operating exclusively in domestic markets. The early advocates of Human Resources Management believed that organization should move away from the bureaucracy of personnel management to the apparent flexibility and responsiveness of Human Resources Management, Hope Hailey et al (1998). The overall purpose of Human Resources Management is to ensure that the organization is able to achieve its objectives in certain areas like recruitment and development, relationships, valuing employees etc. This practice is no longer new in Nigerian organizations, but the problem is that most organizations are yet to fully apply or implement this.

          The link between Human Resources Management (HRM) and business performance is high on the corporate agenda at present. Both organizations and academics are striving to prove that human resources management has a positive impact on bottom-line productivity. Organizations are focusing on the role of resources in achieving competitive advantage and improving organizational performance. Although human resources practice and organizational performance have widely been studied, their distinctive relationship has received limited empirical scrutiny, especially in multinational companies in developing countries.

          It is against this background that this study seeks to evaluate critically the impact of Human Resources Management on organizational performance in Nigeria, using Nigerian Breweries Plc 9th Mile Corner Enugu, and Emenite Ltd Enugu as a research case study.

1.2 STATEMENT OF THE PROBLEM

EVALUATION OF THE IMPACT OF HUMAN RESOURCE MANAGEMENT ON ORGANIZATIONAL PERFORMANCE IN NIGERIA A RESEARCH STUDY OF NIGERIAN BREWERIES PLC 9TH MILE CORNER ENUGU AND EMENITE LIMITED ENUGU