HUMAN RESOURCE PRACTICES AND ORGANIZATIONAL PERFORMANCE

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HUMAN RESOURCE PRACTICES AND ORGANIZATIONAL PERFORMANCE

CHAPTER ONE

INTROUDUCTION

Background to the Study

The ultimate goal of a business organization is higher financial performance or maximization of wealth for the stakeholders [1]. Nonetheless, attaining the organization’s goals depends upon the extent to which its organizational performance is reached [2]. Organizational performance is generally indicated by effectiveness (whether an organization can achieve its objectives), efficiency (whether an organization uses resources properly), satisfaction of employees and customers, innovation, quality of products or services, and ability to maintain a unique human resource pool [3].

Employees and their collective skills, abilities and experience, coupled with their ability to deploy these in the interest of the organization, are now recognized as making a significant contribution to organization growth and success and as constituting a major source of competitive advantage [4]. Similarly, Maliket concluded that in the era characterized by rapid and continuous change, human capital must be retained in order for organizations to be productive and responsive to the needs of their stakeholders. Implementation of appropriate HRM is critical to the growth and success of organizations because human capital has certain qualities that drive organization performance along with other resources such as material, money, and information.

The major challenge of modern organizations is the urge for increasing productivity and achieving a competitive advantage [5]. In terms of business strategy, an organization can succeed if it has a sustainable competitive advantage. To achieve competitive advantage, Bohlander and Snell [6] argued that while people have always been central to organizations, they have now taken on an even more central role in building a firm’s competitive advantage. They posit further that success increasingly depends on the organization’s people-embodied knowhow, which includes the knowledge, skills and abilities embedded in an organization’s employees. Organizations best able to meet this challenge are those that can acquire and utilize valuable and scarce resource. Human resources fall into this category of resources, particularly if they are effectively deployed through appropriate human resource practices [7]. Therefore, one of the key tasks for a modern organization is the effective management of its human resource.

Research in human resource management (HRM) has established that the success of any organization is highly influenced by the calibre of it human resource (HR), which in turn, is affected by the organization’s human resource management practices [8]. Results of studies, from developed countries to developing countries, have been time and gain showing that HRM practices has significant impact on organizational performance [9; 10; 2; 7; 11; 12; 13]. But unfortunately, little empirical research has been conducted to examine the impacts of human resource management (HRM) practices on organizational performance in Nigeria. To augment the contemporary knowledge base of HRM practices of developing countries, this study has been undertaken.

Human resource function becomes recognized as a central business concern sequel to its ability to integrate employee welfare and organizational objective and effective communication into strategic management. Human resource management seeks to eliminate the meditation role and adopts a generally unitarist perspective. It emphasizes strategy and planning rather than problem-solving and medication, so hat employee cooperation is delivered by programmes of corporate culture, remuneration, packaging, team building and management development for core employees, while peripheral employees are kept at arms-length.

Human resource polices and practice are influenced by strategy and structure and by external factors such as trade unions, labour market situation and legal system. In reality most firms do not have such a well thought out sequential model in their human resource strategies hence the role of human resource management in promoting organizational growth in most organizations becomes vague. It is against this background that the researcher sees the subject matter: the role of human resource management in promoting organizational growth in Oil multinationals in south south, worthy being studied.

1.2 Statement of the problem

Productivity in most organisation have comparatively taken a nose dive sequel to frequent industrial conflict. As such many organisation has resorted to different means of resolving such conflict in the past but to know avail sequel to frequent agitation by worker for improved working condition and other workers interest and right. Hence optimal productivity has been hampared because of frequent industrial conflict as such many organisations has resorted to different means of resolving such because of it’s intended negative consequences such as down toll, which will affect sales, production decline, patronage and profit margin.

1.3 Objectives of the study

The central objective of the study is to examine the role of human resource management in promoting organizational growth in Oil multinationals in south south.

The specific objective are as follows::

i. to evaluate the function of human resource in promoting organizational growth in Oil multinationals in south south

ii. To examine the relationship that exist between management and employees of Oil multinationals in south south.

iii. To identify how human resource management in Oil multinationals in south south influence key decision and polices as it affect employees and their union.

iv. To examine the constraint militating against human resource management from achieving organizational growth in Oil multinationals in south south.

1.4 Research Question

i. What are the functions of human resource in promoting organizational growth in Oil multinationals in south south state?

ii. What is the relationship that exist between management and employees of Oil multinationals in south south state?

iii. How does human resource management in Oil multinationals in south south state influence key decisions and polices as it affect employees and their union.

iv. What are the constraint militating against human resource management from achieving organizational growth in Oil multinationals in south south states

1.5 Significance of the study

The study will be beneficial to corporate organisation especially oil multinationals as they utilize the finding in policy formulation regarding conflict management in their organisation. The study will add to existing knowledge on conflict resolution and would be a useful reference materials to individuals, students as well as scholars who may wish to undertake a similar research.

Most importantly, the study will go a long way in putting unnecessary unrest in the corporate and will enhance productivity, peaceful co-existence between management and employee which will have positive impact on sales, profit, motivation and maximum enhancement of labour hours.

1.6 Scope of the study

The examine the role of human resource management in promoting organizational growth in NBC. The study will equally identify the causes of conflict in achieving organizational growth in Oil multinationals in south south state and would profer solution to such problems.

1.7 Limitation of the Study

The study is limited to bias in respondent opinion about the subject matter as well as the use of a single study area and the uncertainly about the generalization of finding sequel to the use of a single research design as well as instrument. For the fact that only Oil multinationals in south south was used as the sole area of study it is no certain if the same result would be obtained in other organization.

Respondent bias and nonchallant attitude also constitute a greater limitation to this research. For the fact that questionnaire constitute the only instrument use to collect data and survey research design the sole design used for the study. It is not certain if the same result will be used if other type of design as well as instrument were used. All these factor constitute a greater limitation to the research.

1.8 Definition of Terms

Human Resource: Also known as labour, is one of the key resources (man, capital, information, machine) used to effectively harness and transform organizational activities into goods and services.

Management: The co-ordination of human and material and other resources toward objective accomplishment. It is a process of planning, organizing and controlling activities of the sub-systems and relates them to the environment. It also refers to those individuals or groups who are responsible for promoting the goals of employers and their organizations.

Organizational growth: It is the ideal state of peace wherein workers engaged in production of goods and services feel content, thereby are propelled to give the best of their talents and talent potentials for the development and progress of the organization.

Industrial Relations: It is the interdisciplinary field of study that concentrates on individual workers, groups of workers and their unions and associations, employers and their organizations and environment in which these parties interact.

Collective Bargaining: It is machinery for setting conflict issues between employers (management representative) and employees (union). It examines and resolves differences between both parties in terms of benefits.

Productivity: It is the measure of the achievement of an enterprise when compared to its purpose, goals and objectives within a specified period of time. In economics, it is defined as a measure of the relationship between the output and the input in the production process.

Union: An employee organization that has the main goal of representing members in employee-management bargaining over job related issues.

1.9 Research hypothesis

i. There is no relationship between the function of human resource and the promoting of organizational growth in Oil multinationals in south south

ii. There is a relationship between management and employees of Oil multinationals in south south.

iii. Human resource management have a significant influence on key decision and polices of manufacturing companies as it affect employees and their union.

iv. Constraints militating against human resource management have a significant impact in achieving organizational growth in manufacturing companies.

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