1.1 Introduction
Human Resource Management is an invisible asset in an organization. It creates value when embedded in the operational system that enhances organizational performance and ability to deal with turbulent environment. The goal of HRM is to maximize employee’s contribution in order to achieve optimal productivity and effectiveness while simultaneously attaining individual objective and societal objectives.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research Hypothesis, Research Questions, and Limitations of the Study.
1.2 Background to the Study
The management of people within the organization has become an increasingly recognized important focus for researchers and practitioner over the past 20 years. Organizations are becoming more aware of important role human resource play in the success of their organizations to achieve financial performance. As a result, organizations are becoming more employee-centric by focusing on enhancing employees’ engagement and organizational commitment
It is important for organization to adopt human resources management (HRM) system that optimizes workforce as it enables organization to achieve competitive advantage in today’s global market economy that provides wider access to technology, finance and other resources. Pfeffer (1994) stated that firms have increasingly recognized the potential for their people to be a source of competitive advantage. Creating competitive advantage through people requires careful attention to the practices that best leverage these assets. According to Nishii, (2008) scholars generally agree that appropriately designed, Human resources management practices can enhance organizational performance. Related theories suggesting and supporting assumption holds that the practices of Human Resources Management influences employees’ attitudes and behaviours.
Human Resource Management is an invisible asset in an organization. It creates value when embedded in the operational system that enhances organizational performance and ability to deal with turbulent environment. Effective HRM assists in developing human resources into high quality and efficient workforce thus enabling the organization to obtain a competitive advantage through their people. In contrast, inefficient workforce can increase labour cost and decrease organization productivity. However, in order to remain competitive, grow and diversify, an organization must ensure that its employees are qualified, placed in appropriate position, properly trained, managed effectively and committed to the firm’s success. The goal of HRM is to maximize employees contribution in order to achieve optimal productivity and effectiveness while simultaneously attaining individual objective (such as having a challenging job) and obtaining recognition) and societal objectives (such as legal compliance and demonstrating social responsibility).
Human resource dimensions or practices (training, recruitment, reward system performance appraisal etc) have considerable impact on the performance of organizations and these contribute to the affirmative link between human resource management and organizational performance (Osman, 2012).
Human resources are considered the most valuable assets of any organization but very few organizations are able to fully harness its potential. While human resources refer to individuals who make up the workforce of an organization, Human Resources Management is defined as a very critical and imperative function that operates within an organization. This function classified into recruitment, compensation, development related to the organization, safety, motivation of employee, benefit wellness, communication and training, performance management and all other activities that are associated with goal achievement of the organization (Ayesh, 2012).
Neo (2007) defines human resource management as composed of policies, practices and system that influence employees’ behavior, attitude and performance. Oladipo (2011) opines that having the right personnel at the right place and at the right time is utmost important to survival and success of any organization.
The Human Resource department is tasked with reviewing the organizations, HR practices and recommending policy changes, where necessary. As a part of review, academic qualifications of the staff were harmonized without further discrimination between Degree holders and Higher National Diploma, Certificate holder, training programs were organized for all categories of staff. Employees who lacked basic skills and qualifications could not be retained were laid off, whilst a rigorous recruitment process was instituted to attract skilled personnel for the various departments.
1.3 Statement Of The Problem
Organizations are expected to motivate their workers in order to increase their performance so as to be profitable. Some organizations take workers for granted by not providing adequate training and compensations for hard work as human elements in the achievement of the organizational goals.
This has in some cases affected the productivities of workers and in turn the profitability of such organizations. The study therefore finds out how workers can be managed to enhance their productivity and at the same time increases the profitability of the organizations.
1.4 Purpose Of The Study
The broad purpose of this study is to examine the impact of HRM practices on employees’ performance in organizations. Other purposes include:
- To find out how HRM can affect the employees productivity and performance
- To find out the extent to which employees are being motivated in organizations
- Establish the extent to which performance would affect the implementation of various HRM practice
- To know the status of HRM practice a views in an organization.
1.5 Significance Of The Study
This study will help to achieve effective Human Resources Management and identify tools for developing the employees’ performance with a view to effect workable programs for the organization.
1.6 Research Questions
The following are the research questions of the study;
- What is the impact of HRM practices on employees’ performance in organizations?
- How can HRM affect the employees’ productivity and performance?
- How are employees being motivated in organization?
- What is the extent to which performance would affect the implementation of various HRM practice?
- What is the status of HRM practices in organization?
1.7 Research Hypothesis
Ho: There is no significant relationship between reward system and employees’ performance in the achievement of organizational goals
H1: There is a significant relationship between reward system and employees’ performance in the achievement of organizational goals
1.8 Scope of the Study
Since no single research can validly cover all areas of the topic the researcher tends that thrust of this project will be limited within the scope of study of the impact of Human Resources Management on employees’ performance using Pabod Breweries Limited in Port Harcourt, River State as a case study.
1.9 Limitation to the Study
Insufficient fund which led to the researcher’s not being able to cover a wider area needed for the research. Insufficient time to carry the study to a logical end due to one year time frame approved for the study.
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