HUMAN RESOURCE MANAGEMENT AS A TOOL FOR ORGANIZATIONAL EFFECTIVENESS ABSTRACT This research work assessed Human Resource Management as a Tool for Organizational Effectiveness. The objectives of the study included to: ascertain the effect of recruitment on profitability of Innoson technical and Industrial Company Limited, determine how training affects competitive position of Innoson technical and Industrial Company Limited, evaluate the relationship between performance appraisal and productivity of Innoson technical and Industrial Company Limited and find out how human resource planning affects the market share of Innoson technical and Industrial Company Limited. The researcher adopted the survey research method. The major instrument of data collection was the questionnaire. The sources of data were the primary and secondary sources. The population of the study was 602 while the sample size of 240 was determined using the Taro Yamane’s formula. The data collected were presented in tables of frequencies and percentages using the five point Likert scale. The hypotheses were tested using the chi-square distribution formula. The findings included that Recruitment has a positive effect profitability of organization, training does not have a positive effect on competitive position of organization, there is a significant relationship between performance appraisal and productivity of organization and human resource planning has a positive effect on the market share of organization. The researcher concluded human resource management is a powerful tool for organizational effectiveness and it was recommended that Management of organization should make recruitment of the workers as a priority as it has a positive effect on profitability, employees of organizations should undergo training periodically as it has a positive effect on competitive position of their organization, effective and reliability performance appraisal should be undertaken by organizations and arket share of organizations should be considered via effective human resource planning. TABLE OF CONTENTS CHAPTER ONE: INTRODUCTION 1.1 Background of the Study 1.2 Statement of the Problem 1.3 Objectives of the Study 1.4 Research Questions 1.5 Statement of Hypotheses 1.6 Significance of the Study 1.7 Scope of the Study 1.8 Limitations of the Study 1.9 Operational Definition of Terms CHAPTER TWO: REVIEW OF RELATED LITERATURE 2.1 Conceptual Framework of the Study 2.2 Theoretical Framework of the Study 2.3 Empirical Review 2.4 Summary of Review of Related Literature 2.5 Gap in the Review of Related Literature CHAPTER THREE: METHODOLOGY 3.1 Research Design 3.2 Sources of Data 3.2.1 Primary Sources 3.2.2 Secondary Sources 3.3 Area of Study 3.4 Population of the Study 3.5 Sample Size Determination 3.6 Instruments for Data Collection 3.7 Validity of the Instrument 3.8 Reliability of the Instrument 3.9 Methods of Data Presentation and Analysis CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS 4.1 Data Presentation 4.2 Bio-Data 4.3 Data Relating to Research Questions 4.3.1 Research Objective One 4.3.2 Research Objective Two 4.3.3 Research Objective Three 4.3.4 Research Objective Four 4.4 Test of Hypotheses 4.4.1 Test of Hypotheses One 4.4.2 Test of Hypotheses Two 4.4.3 Test of Hypotheses Three 4.4.4 Test of Hypotheses Four 4.5 Discussion of Findings 4.5.1 Discussion Based on Hypothesis One 4.5.2: Discussion Based on Hypothesis Two 4.5.3: Discussion Based on Hypothesis Three 4.5.4 Discussion Based on Hypothesis Four CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 5.1 Summary of Findings 5.2 Conclusion 5.3 Recommendations 5.4 Contribution to Knowledge 5.5 Suggestions for Further Research List of References Appendix A Appendix B CHAPTER ONE INTRODUCTION 1.1 Background of the Study Human resource management is the management function that deal with recruitment, placement, training and development of organization member stoner and freeman, (1992). It is an on-going procedure that tries to keep organization supplied with the right people in the right positions when they are needed. Hence, ever organization strives to effectively manage their human resource. Once an applicant has been selected and placed properly by his organization, the next step is to transform him to meet the future requirements of the organization. Such transformation is done by means of training and development. For organizational goals and objectives to be attained effective, proficient, and adept human resource management is vital and imperative in every outfit. This is because human beings constitute a vital part of any organization thus act as building blocks and backbones of any organization and determine the level of productivity in the organization. Abiodun (2010), affirmed that human resources are the most potent assets that any organization possess. Without them, machines/equipment and even capital of the company will amount to nothing as nothing gets done without the input of the manpower resources of the organization. Similarly, Resis (2013), affirmed that all activities of any enterprise are attained and determined by the persons that make up these institutions. He said further that the plants, computers, automated equipment, and all other machines that a modern organization uses are unproductive except for human efforts and directions. He therefore, concluded that every aspect of a firm’s activity is determined by the competence and effectiveness of its human beings. Adeniyi (2015), asserts that human resource management and development is a necessary work activity that makes a very significant contribution to the overall effectiveness and profitability of an organization. For Fajana (2012), the effectiveness and success of an organization lies on the people who work within the organization. The observation of Onuka (2016), implies that it is the developed human capital of a nation that constitute its wealth. It follows, therefore, that employment performance in respect of achieving organizational goals and success is a function of the quantum of the relevant skills and knowledge and positive work attitude they have been able to acquire from constant human resources management whether through committed on-the-job training or vestibule training courses they attended. Omole (2014), posits that human resource management involves providing learning and development opportunities making training intervention and planning, conducting and evaluating training programmes. The need for improved productivity in an organization has become a universally accepted phenomenon that depends on efficient and effective human resource management. It further becomes necessary in view of modern global advancement to invest in human capital training and management. Thus, the role played by staff training and management can no longer be over- emphasized. By implication therefore the need for organizations to take staff management programme for the employees seriously has become an indisputable imperative. Absence of such staff management programmes in an organization, often manifests in tripartite problems of incompetence, inefficiency, and ineffectiveness. Oribabar (2010), submits that training and development are aimed at developing competencies, such as technical, human, conceptual and managerial for the furtherance of individual and organization growth; while Isyaka (2014), postulates that the process of training and development is a continuous one. Man is dynamic in nature, the need to be current and relevant in all spheres of human endeavour makes staff management a necessity in order to keep track with current events and methods. Adeniyi (2015), has drawn attention of all and sundry to the inestimable value of training and management. According to him, it is an avenue to acquire additional and new knowledge; and develop further, the skills and techniques to function effectively in the ever dynamic world in which we belong and live. Thus training, is obviously indispensible not only in the management of individuals, but also in facilitating the productive capacity of the workers and thus that of the company. Management is not coaxing or persuading people to do what is wanted but rather a process of creating organizational conditions that will cause personnel to strive for better performance. Therefore, the concept of human resource management encompasses organizational subsisting staff training and retraining programmes in order to meet up with organizational goals and objectives as well as the sustaining of human resources needs for organizational growth and development. The availability of human capital and its regular management must be combined with effective utilization of all other resources. Thus, human resource management in an organization is the mainstay of an organization provided it is put to effective use. Human resources are very critical to an organization’s survival and accomplishment of the desired goals if any organization. However, it has been generally observed that there has been a progressive decline in the ability of the human resources in Nigeria, to cope with the challenges facing many organizations. This trend could be viewed to have resulted to inadequate level of skill acquisition by the employees as their inability to keep abreast with the new modern technological development because of the absence of appropriate and sufficient staff training and development efforts by organizations. It is against this backdrop that the researcher investigates the effect of human resource management on organizational effectiveness with Innoson Technical and Industrial Company Limited as a case study. 1.2 Statement of the Problem Human resources management are very complex especially, when there is a large pool of them, as in the case of Innoson technical and Industrial Company Limited. Each individual, is different from the other and hence deserves to be handled differently. The effect of not adopting effective human resource management in an organization is that it could lead to decline in profitability. This is because when employees are not properly trained, it could lead to not carrying their activities efficiently leading to loss in profitability. Moreover, another problem is making the workplace to be a sensitive place. The work place could become a very insensitive place because of decisions like lay-offs etc, which might leave those left behind in a state of fright and suspicion. The consequences of not adopting effective human resource management in an organization are devastating. It could lead to low productivity due to lack of proper training. 1.3 Objectives of the Study The general objective of the study is to examine the effect of human resource management on organizational effectiveness. However, the specific objectives are as follows: 1. To ascertain the effect of recruitment on profitability of Innoson technical and Industrial Company Limited. 2. To determine how training affects competitive position of Innoson technical and Industrial Company Limited. 3. To evaluate the relationship between performance appraisal and productivity of Innoson technical and Industrial Company Limited. 4. To find out how human resource planning affects the market share of Innoson technical and Industrial Company Limited. 1.4 Research Questions Based on the objectives, the following research questions were raised: 1. What is the effect of recruitment on profitability of Innoson technical and Industrial Company Limited? 2 How does training affect competitive position of Innoson technical and Industrial Company Limited? 3 What is the relationship between performance appraisal and productivity of Innoson technical and Industrial Company Limited? 4 How does human resource planning affect the market share of Innoson technical and Industrial Company Limited? 1.5 Statement of Hypotheses Based on the research questions, the following hypotheses were formulated: Hypothesis One Ho: Recruitment does not have a positive effect on profitability of Innoson technical and Industrial Company Limited. Hypothesis Two Ho: Training does not have a positive effect on competitive position of Innoson technical and Industrial Company Limited. Hypothesis Three Ho: There is no significant relationship between performance appraisal and productivity of Innoson technical and Industrial Company Limited. Hypothesis Four Ho: Human resource planning does not have a positive effect on the market share of Innoson technical and Industrial Company Limited. 1.6 Significance of the Study This research work is very important as it examined the effect of human resource management on the effectiveness of organizations. The managers of various manufacturing organizations will benefit from this study as they will be more enlightened on the impact of human resource management on organizational performance. The researcher (student) will benefit from this research work as it is a partial requirement for the award of a Bachelor of Science (B.Sc) degree in Business Administration. The universities will benefit as this research work increases their data bank. The research work will also serve as a reference material for future research works. 1.7 Scope of the Study This research work covered an aspect of management called human resource management. The geographical scope of the study is Innoson Technical and Industrial Company Limited while the time scope is between 2016-2017. 1.8 Limitations of the Study In the course of carrying out this research work, the researcher encountered some impediments. Among them were time, finance, and uncooperative attitudes of the respondents. Time: was a major constraint, as the researcher carried out part of this research work using time for lectures. Finance: there was not a enough fund to carry out all that was supposed to be done. Uncooperative Attitude of the Respondents: The respondents of Innoson Technical and Industrial Company were economical with information. Initially, they were reluctant to give out information but after being sensitized by one of their managers, they gave out the relevant materials needed for the study. 1.9 Operational definition of Terms Human Resource Management: This can be defined as that branch of management, which is responsible on a staff basis, for concentrating on those aspects of operations, primarily concerned with the relationship of management to employees and with the development of the individual and the group. Effectiveness: the extent to which output is in line with organizational objectives.
HUMAN RESOURCE MANAGEMENT AS A TOOL FOR ORGANIZATIONAL EFFECTIVENESS
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