1.1 Introduction
Human resources policies are defined as formal guidelines and strategies designed to manage people within an organization, covering areas such as recruitment, training, compensation, promotion, and employee welfare (Dessler, 2020). In modern organizations, employees are considered valuable assets whose performance directly affects productivity and competitive advantage. Human resources policies are instrumental in creating a structured work environment that encourages accountability, skill development, and organizational commitment (Armstrong & Taylor, 2020).
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 and questions, limitation of the study and definition of terms.
1.2 Background of Study
Human resources policies are essential instruments for managing the workforce and ensuring the smooth operation of organizational activities. According to Dessler (2020), human resources policies are structured guidelines that govern employee behavior, outline expectations, and define organizational procedures related to recruitment, training, performance appraisal, compensation, and promotion. These policies are designed to create a conducive working environment that enhances employee satisfaction, motivation, and productivity.
According to Armstrong and Taylor (2020), the early stages of HR management were largely personnel-oriented, with little attention given to employee motivation or performance improvement. Organizations operated under the assumption that employees would perform adequately without structured policies or systematic management interventions. It was reported that the development of formal HR policies, including standardized recruitment procedures, job classifications, and performance appraisal systems, marked a significant shift towards a more structured approach to managing people (Dessler, 2020).
Armstrong & Taylor (2020) reported that effective human resources policies significantly influence employee performance, as they provide clarity on roles, responsibilities, and organizational objectives (Armstrong & Taylor, 2020). Researchers have asserted that HR policies not only regulate employee behavior but also serve as tools for nurturing talent and promoting professional growth (Mathis & Jackson, 2019). Policies that emphasize training and development enable employees to acquire new skills and adapt to changing organizational needs, which positively impacts productivity. Conversely, organizations with outdated or rigid HR policies may experience low morale, high turnover, and resistance to change.
It is further stated that the alignment of HR policies with organizational goals is a critical determinant of employee performance (Armstrong & Taylor, 2020). Organizations that implement fair, transparent, and responsive HR policies create a sense of trust and engagement among employees, leading to improved job satisfaction and higher work output. On the other hand, misalignment between policies and employee expectations can result in workplace conflicts, absenteeism, and decreased organizational performance.
Several scholars have affirmed that the evolving nature of work and workforce expectations necessitates continuous evaluation and adaptation of HR policies (Mathis & Jackson, 2019). Organizations that proactively adjust their policies to address employee needs, technological advancements, and competitive pressures are better positioned to enhance performance outcomes and maintain a motivated workforce. Researchers contend that human capital management, through effective HR policies, is a vital factor in sustaining organizational growth and competitive advantage. This study is set against the backdrop of examining how human resources policies affect employee performance.
1.3 Statement of Problems
Investigation revealed that human resources policies are central to shaping the working environment, guiding organizational behavior, and influencing employee performance. In many organizations, the absence of clear, consistent, and well-communicated HR policies is a recurring challenge that negatively impacts employee productivity, motivation, and overall job satisfaction (Dessler, 2020). When policies regarding recruitment, training, promotion, compensation, and performance appraisal are not effectively implemented, employees often experience confusion and frustration, which is reflected in declining performance levels.
Additionally, inadequate attention to employee welfare and development, despite the existence of human resource policies, is another factor that negatively affects performance (Armstrong & Taylor, 2020).
Furthermore, even in organizations with formal HR policies, inconsistencies in enforcement and favoritism often undermine the intended outcomes of these policies. It is also observed that the dynamic nature of modern workplaces, including technological advancements and changing labor market expectations, requires human resource policies to be adaptive and responsive (Mathis & Jackson, 2019). It is against this backdrop that this study seeks to investigate the impact of human resources policies on employees' performance.
1.4 Aim and Objectives of Study
The aim of the study is to assess the impact of human resources policies on employees' performance. To achieve this aim, the study has the following objectives:
- To investigate how compensation and reward policies influence employee motivation and performance.
- To examine the effect of recruitment and selection policies on employee performance.
- To assess the impact of training and development programs on employee productivity.
- To evaluate the role of promotion and career development policies in enhancing employee engagement.
- To identify challenges and gaps in the existing HR policies that hinder optimal employee performance.
1.5 Research Questions
Based on the objectives stated, the research will seek to answer the following questions:
- How do recruitment and selection policies affect employee performance?
- What is the impact of training and development programs on employee productivity?
- How do compensation and reward policies influence employee motivation and performance?
- What is the role of promotion and career development policies in enhancing employee engagement?
- What challenges and gaps exist in the current HR policies that hinder optimal employee performance?
1.6 Research Hypotheses
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: HR policies have no significant impact on employees' performance in organizations.
- H1: HR policies have a significant impact on employees' performance in organizations.
Hypothesis Two
- H0: Recruitment and selection policies do not significantly influence employee performance.
- H1: Recruitment and selection policies significantly influence employee performance.
Hypothesis Three
- H0: Training and development programs have a negative impact on employee productivity.
- H1: Training and development programs have a positive impact on employee productivity.
Hypothesis Four
- H0: Compensation and reward policies do not significantly affect employee motivation and performance.
- H1: Compensation and reward policies significantly affect employee motivation and performance.
1.7 Significance of Study
The outcome of this research will assist human resource practitioners in developing policies that are fair, transparent, and responsive to employee needs. It will also help organizations design effective HR strategies that promote workforce productivity, motivation, and engagement.
Furthermore, this study will contribute to policy formulation by emphasizing practices that promote employee development, satisfaction, and retention. In addition, this research study will serve as a reference for future research in the field of human resources management.
Lastly, this research study will contribute to existing literature on human resource management and employee performance.
1.8 Scope of Study
This study focuses on the impact of human resources policies on employee performance within selected organizations in Lagos State, Nigeria.
1.9 Limitations of the Study
A study of this nature is bound to experience certain problems as such the constraints imposed on the research include:
- Time Constraints: A study of this nature needs relatively long time during which information for accurate or at least near accurate inference could be drawn. The period of the study was short, time posed as constraints to the research.
- Financial Constraints: The research would have extended the survey to other area at the empirical level, but limitation as included cost of transportation to the source of material and the cost of time setting of the already completed work.
- Lack of Cooperation: Many of the respondents are usually aggressive on issue that border cooperation among the respondents border.
- Response Bias: The study will involve surveys and interviews with cooperative managers and members. Response bias may occur if respondents provide socially desirable answers or if there is reluctance to disclose negative financial information due to privacy concerns or fear of repercussions.
1.10 Definition of Terms
Human Resources Policies: According to Dessler (2020), human resources policies are formal guidelines developed to regulate employee behavior, ensure consistency in management decisions, and enhance organizational performance.
Employee Performance: Armstrong and Taylor (2020) stated that employee performance refers to the level of output, efficiency, and quality of work delivered by employees in line with organizational goals.
Recruitment and selection: Reported by Mathis and Jackson (2019) as the process of attracting, screening, and appointing qualified individuals to fill job positions in an organization.
Training and Development: Affirmed by Dessler (2020) as planned efforts to enhance the skills, knowledge, and competencies of employees to improve performance and support organizational growth.
Compensation and Rewards: Stated by Armstrong and Taylor (2020) as the system of monetary and non-monetary benefits designed to motivate and retain employees.
Promotionand Career Development: Contend that theseare policies and programs aimed at providing employees with opportunities forupward mobility and professional growth within the organization (Mathis &Jackson, 2019).…
