EFFECTS OF HUMAN RESOURCE MANAGEMENT PRACTICES ON ORGANIZATIONAL EFFECTIVENESS. A STUDY OF FLOUR MILLS PLC CALABAR
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ABSTRACT
The purpose of this study is to assess the impact of human resource management practices on organizational effectiveness. The researcher examined the organizational performance of 200 employees of Flour Mills plc, Calabar. Although the findings of this study will be beneficial to every organization and companies in Nigeria. Descriptive statistics was used in analyzing the data obtained. The results shows that the higher level of compensation management, organizational citizenship behavior and employee development practices that will lead to a higher level of organizational performance, also indicate that compensation management, organizational citizenship behavior and employee development is positively associated with organizational performance. The result shows that there is positive or significant relationship between independent and dependent variables, so the researcher rejected the null hypothesis. Although, there are some areas that need more development in future including the topics that relate to the study that can be conducted on manufacturing firms with more variables.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Organizational performance and effectiveness is a matter of utmost importance to scholars and practitioners in the field of public administration. In any organization performance of organization is very important. Since the super objective of all organizations is to improve their performance as earlier stated. There may be three areas that create or to enhance the organizational performance: employee development of organization, compensation management of organization and organizational citizenship behavior. Especially with the new waves of organizational reform and the adoption of new public management, performance management is one of the core elements is that organizations should measure, and actively implement (Saridakis, & Cooper, 2016; Swart, & Kinnie, 2015; Boyne, Entwistle, & Ashworth, 2010). Boundaries, hire expatriates, and deal with cultural diversity and rely on donations from member states’ governments to fund their programs. A growing number of public management scholars have focused on research aimed at understanding the effects of management on performance in public organizations (Boyne, 2010).
Human Resource Management could be seen as a strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations. It has a strong conceptual basis drawn from the behavioural sciences and from strategic management, human capital and industrial relations theories. This foundation has been built with the help of a multitude of research projects (Armstrong, 2010).
Internationally, it is deemed fit for organizations to get and apply their human resource effectively and efficiently. Organizations have to be aware of human resource need to know about human resource management more realistically and organizations have to keep their human resource up-to-date. Consequently, manager play significant role for the purpose of achieving company’s goal and meet profits, basically the core functions of managers have to manage the human resource in a way that right number in right way. This study therefore, examines the influence of human resource management that is compensation, employee’s development and organizational citizenship behavior on the performance of the organization.
Human resource management is the policies, practices, and systems that influence employees’ behaviour, attitudes, and performance. Many organization view human resource management as involving “people practices”. There are several important human resource management practices that should support the organization’s business strategy: analyzing work and designing jobs, determining how many employees with specific knowledge and skills are needed (human resource planning), attracting potential employees (recruiting), choosing employees (selection), teaching employees how to perform their jobs and preparing them for the future (training and development), evaluating their performance (performance management), rewarding employees (compensation), and creating a positive work environment (employee relations). An organization performs best when all of these practices are managed well. At companies with effective HRM, employees and customers tend to be more satisfied, and the companies tend to be more innovative, have greater productivity, and develop a more favourable reputation in the community (Raymond A. Noe, 2011). When organizations are faced with challenges such as an economy recession, it depend thoroughly trained professionals who react quickly to changes in the environment and create strategies for success. Human resource management is responsible for carefully selecting and training people with the necessary skills to pursue the strategy effectively. Some external factors can be predicted; others, such as the collapse of large banks and insurance companies, can seemingly come out of nowhere (P.Robbins, 2010).
It is therefore, the focus of this research study to carry out an assessment of human resource management practice on organizational effectiveness or performance, using the organizational structure of Flour Mill, Calabar plc as her case study.
1.2 STATEMENT OF THE PROBLEM
It is well accepted that human resource management is positively related to organizational performance, but there is a great need for additional evidence to support the human resource management performance relationship from different contexts. The observations of the researcher in Flour Mill, Calabar was that staffs criticized that they are not satisfied with their wellbeing in terms of compensation i.e. wages and benefits. There are no sufficient salary and reward. Due to these motives top quality performers (employees) of public organizations have been moved to other private organizations and other countries. There is no significant work in public organizations in the context of human resource management and the reason is that top management never realize the needs and demands of their employees.
Nigeria as a developing country needs to know the contribution of different factors and the intensity of their impact on organizational performance that leads towards economic development and prosperity. Nigeria is gradually shifting from agriculture to industrial economy and therefore it is important to determine empirically, the contribution of different factors like, human resource management practices towards organizational performance. Because as Bennett (1983) has written importing approaches from one country to another may not work. Also it’s difficult to get published researches that addressed the effect of human resource management practices on organizational performance in public organizations.
As a result to develop a better understanding the research is carried to know the benefits to practice the human resource and evaluating the losses that follows.
1.3 OBJECTIVES OF THE STUDY
The main objective of the study was to identify the impact of human resource management practices on organizational effectiveness, assessing flour Mill, Calabar human resource practices and its effectiveness. The researcher intend to address the following sub-objectives;
- To address the linkage between human resource practices and organizational effectiveness.
- To assess Flour Mill, Calabar Human resource management practices on its effectiveness.
- To identify the most neglected Human Resource practices which employees believe that could help to perform better than before.
- To proffer some measures in order to enhance Flour Mill, Calabar human resource effectiveness.
- To explore the importance of changing the mindset of the employers through Human Resource practices as these practices are contributing in the effectiveness of the organization and employees collectively.
1.4 RESEARCH QUESTIONS
- Is there is any linkage between human resource management practices and organizational effectiveness?
- What is the prospect of human resource management in enhancing higher productivity?
- Has productivity been enhanced through an efficient human resources management?
- To what extent has human resources management impacted on employee’s performance?
- Have effective human resources management had any impact on organizational goals and objective?
- Does team work and cooperation serve as mean of effective human resources management?
- Is organizational effectiveness mostly influenced by its policies and practices towards employee’s behavior?
1.5 RESEARCH HYPOTHESES
H0: human resource management practices does not have a significant association with organizational effectiveness
H1: human resource management practices does have a significant association with organizational effectiveness
H0: Compensation does not positively influences an organizational performance and effectiveness
H2: Compensation does positively influences an organizational performance and effectiveness
1.6 SCOPE AND LIMITATION OF THE STUDY
The study focused on the effect of Human Resource Management practices on organizational effectiveness, evidence from Flour Mills Plc Calabar. This research is to determine how human resource management practice will assist an organization effectiveness. In the cause of the study, the researcher encounters some limitations which limited the scope of the study;
Staff Reluctance: In most cases the staffs of Flour Mills Plc Calabar often feels reluctance over providing required information required by the researcher. This result in finding information where the structured questionnaires could not point out.
Researcher’s Commitment: The researcher, being of full time student spent most of her time on other academic activities such as test, class work, assignment, examination etc which takes average focus from this study.
Inadequate Materials: Scarcity of material is also another hindrance. The researcher finds it difficult to long hands in several required material which could contribute immensely to the success of this research work.
1.7 SIGNIFICANCE OF THE STUDY
Considering the significance of the study you will observe that all organization whether governmental or non-governmental, profit or nonprofit cannot overlook the relevance of effective and efficient utilization of human resource management. The findings of this study will be of immense benefits to managers, employment of personal and human resource of officers of Flour Mills Plc Calabar policies, it will examines personnel policies, on recruitment, on selection, placement, training and development.
Equally it will highlight the need for good human resource management in Flour Mills Plc Calabar which aimed at total customer satisfaction at higher productivity. Finally, the findings of this study will also be relevant to academicians, industry and to society at large, since it attempts to ascertain in areas of human resource management in Nigeria.
1.8 HISTORICAL BACKGROUND OF THE STUDY
Flour Mills Plc is located in Calabar, Calabar Municipal, Cross River state. The company was incorporated on 29th September, 1960 as a private limited liability company with a modest paid-up share capital of N1 million and converted to a public company in November, 1978. The beneficial interest in the company’s equity is held by Nigerian and Overseas shareholders. Presently, two foreign shareholders own about 56% of the company’s paid-up share capital. The balance is held by over 75,000 individuals and institutional investors.
Beyond wheat based products, Flour Mill Nigerian group’s strategic imperative in the years ahead is to create value in the supply chain and reduce dependence on imported raw materials. To this end, Flour Mill Nigerian has recently invested billions of Naira in its agro-allied ventures. The Group’s strategic diversification into agribusiness began in 1978 with the investment in a 10,000ha Kaboji Farm, which is close to the town of Kontagora in Niger State. We have subsequently made many other significant investments in primary processing of locally grown soybean, palm fruit, cassava, maize, and sugar cane; storage, aggregation and distribution of locally sourced grains and export commodities; manufacture, and distribution of agro-inputs, such as seeds and fertilizers. These strategic investments across the major crop value chains are setting the pace for others to follow and continue to strengthen our position as Nigeria’s Premier Food and Agro-Allied Company.
To ensure the continued viability and sustainability of our Food and Agro-Allied operations in a challenging business environment, we have also invested heavily in support services in the form of manufacturing and marketing of packaging materials; power generation; ground transport logistics; and port operations; which include shipping, customs clearing, forwarding, and a shipping agency.
Indeed, Flour Mill Nigerian Group is continuously exploring opportunities for strategic partnerships to grow and enhance competitive positioning in its main line of business in Nigeria and at a future date extend its investment and business activities beyond the borders of Nigeria.
1.9 DEFINITION OF TERMS
Human resource: Human resources are the people who make up the workforce of an organization, business sector, or economy. “Human capital” is sometimes used synonymously with “human resources”, although human capital typically refers to a more narrow view (i.e., the knowledge the individuals embody and economic growth).
Management: Management (or managing) is the administration of an organization, whether it be a business, a not-for-profit organization, or government body. Management includes the activities of setting the strategy of an organization and coordinating the efforts of its employees or volunteers to accomplish its objectives through the application of available resources, such as financial, natural, technological, and human resources. The term “management” may also refer to the people who manage an organization.
Organization: An organization or organization is an entity comprising multiple people, such as an institution or an association, that has a collective goal and is linked to an external environment.
Effectiveness: Effectiveness is the capability of producing a desired result or the ability to produce desired output. When something is deemed effective, it means it has an intended or expected outcome, or produces a deep, vivid impression.
1.10 ORGANIZATION OF THE STUDY
This research work is organized in five chapters, for easy understanding, as follows Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study. Chapter two highlight the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study.
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