THE IMPACT OF STRATEGIC HUMAN RESOURCE MANAGEMENT ON ORGANISATIONAL PERFORMANCE
This research work is on “The Impact of strategic Human Resource management on organizational performance”. 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
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 strategic Human Resource management on organizational performance, using Nigerian Breweries Plc 9th Mile Corner Enugu, and Emenite Ltd Enugu as a research case study.
1.2 STATEMENT OF THE PROBLEM
Most organizations in recent times now face challenges of human resources management with the result that their human resources is ineffectively and inefficiently managed.
This inadequacy in human resource management could be attributed but not limited to the following problems;
- Organizations specifically, face the problem of poor human resource planning, which is reflected by poor recruitment, selection and placement policies. This has resulted in lower productivity levels of complaints from customers with subsequently lower revenues, higher cost, higher staff turnover, poor industrial relations. Consequently, the uncompetitive position of the organizational goals and objective.
- There is a problem of ineffective staff training and development programmes consequently leading to idleness of member, loose of creativity, poor self concept among employees, low competency among employees and generally low employee productivity.
- The motivation and compensation policies are very low and ineffective sometimes in organizations consequently leading to lack of commitment and motivation among employees, lack of interest, low expectation among employees.
- Management/employee relationship is often not palatable because of poor communication system and leadership style resulting in lower satisfaction, low morale, disloyalty, emotional immaturity, high resistant behaviour and antagonistic attitude among employees which has a negative effect on the general performance of the firm.
- There are assured social security plans for employees consequently leading to low level of trust and confidence, feeling of insecurity, low quality of life, workers inefficiency and low level of trust and confidence among workers. Generally resulting to low productivity.
These entire problems however, compelled the researcher to investigate the phenomenon.
1.3 OBJECTIVES OF THE STUDY
The prime objective of this study is to evaluate The Impact of strategic Human Resource management on organizational performance. Apart from the primary objectives, other specific objectives are enumerated as follows:
- To determine the relationship between human resources management and improved organizational performance.
- To analyze how management and employees relationship contribute to improved organizations performance.
- To critically examine how the human resource management practices within the organization contribute to employee motivation.
- To evaluate the extent to which Human Resources Management is being practiced in Nigerian organization.
- To identify why Human Resources Management practices thrive well in some organizations and do not in others.
- To identify the constraints and challenges affecting Human Resources Management practices in organizations.
- To identify the effects/benefits associated with the practice of Human Resources Management.