EFFECT OF THE HUMAN RESOURCES MANAGEMENT STRATEGY ON ORGANIZATION PERFORMANCE
ABSTRACT
Human resources management is concerned with the effective use of an organisation’s human resources. It deals with people at work and their relationship within the working environment. This study, the effect of human resource management strategy on organisation performance (a case study of Nestle Nigeria Plc). The purpose of this study is to set out the impact of a human resource management strategy on the individual performance, organisation commitment and job satisfaction level of human resources professional, when human resources function is vertically aligned with the mission and objective of the organisation and horizontally integrated with other organizational function. The humans’ resources approach further deals with the employee’s entire contractual relationship with it. It is also involved with values and aims not only to obtain employees’ consent to work, but their commitment to management goals. Organisations are increasingly looking at human resources as a unique asset that can provide sustained competitive advantage. The change in the business environment with increasing globalization, changing demographics of the work force increased focus on profitability through growth technical change. A total population of sixty (60) potential respondents was considered in the admin department of Nestle Nigeria Plc. out of which a sample of fifty (50) were chosen and 50 questionnaires were administered. All the fifty (50) were returned fully filled by the respondent. This represent a 100% response rate by the respondent sequel to the data analysis, the researcher was able to find out that human resources is the best resources an organisation can have to improved organizational performance.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Strategy was first used in England in (1956) derive from the Greek word strategies which derives from two word; stratus (Army) and Agein (Ancient Greek for leading). Strategies referred to a military commander during the age of Athenian Democracy. A strategy is a long term plan of action designed to achieve a particular goal. Strategy is also basically concerned with the long term direction and scope of an organization; it is also crucially concerned with how the organization positions itself with regards to the environment and to the competitors in particular. It’s concerned with establishing competitive advantage, ideally sustainable overtime, not by technical maneuvering, but by taking an overall long term perspective. Strategy management is the ongoing process of specifying the organization objective, developing plan to achieve these objective and allocating resources to implement the policies and plan to achieve the organizations objective. Human resource management refers to a set of people oriented functions or activities that involve the effective acquisition, use and the maintenance of human resources within an organization.
However, strategic human resource management (SHRM) is a strategic approach to manage human resources of an organization compared with the traditional human resource management. Practices strategic human resource management is considered a relatively “new concept” despite its continuous development over the past two decades. Although there is still no consensus on an exact definition of based and broad agreement reached on its basic function which involves designing and implementing a set of internally consistent policies and practices that ensure that the human capital of a firm contributes to the achievement of its business objectives. Faulkner and Johnson (1992). Human resources management is concerned with the effective use of an organization’s human resources, it deals with people at work and their relationship within the working environment. The human resource approach further deal with the employers entire working life in the company, and not just their contractual relationship with it. It is also involved with value and aims not only to obtain employee’s consent to work, but their commitment to management goals.
1.2 STATEMENT OF THE PROBLEM
Although, it is known that firms can gain sustainable competitive advantage through the strategic management of human resources, however, it remains unclear about the conditions under which a firm employs strategic human resource management so as to enhanced performance in the organization. More so, inspire of providing an initial explanation on the antecedent of human resources at the process by which these have impact on the organization is yet to be clear. In addition, possible interactions among these factors that may have impact on the performance of a firm will be examined. Most organizations do not have an effective human resources management practices and the design of a human resource system compatible with the firm strategy, which is imperative for successful implementation of business strategies. Also, most firm do not practice strategies human resources, do not respond to the external environment through a better employment of human resources, and since the strategy of firms is a reflection of its response to the competitive external changes, a human capital pool with a broad way of skills that are compatible with the corporate strategy is a catalyst for fulfilling the strategic goals through promoting behavoural utility among employees. However, the studies become pertinent to fill the gaps, mentioned and in order the mechanism to enhance organizational performance.
1.3 OBJECTIVES OF THE STUDY
The main objectives of this study are to determine or investigate the impact of strategic human resources on Nestle Plc.
The objectives of this research work will include the following:
i. To investigate the impact of strategic human resource management on organizational performance in Nigeria private sector such as Nestle Plc.
ii. To examine the types of strategy that is adopted in Nestle Plc.
iii. To assess the rationale behind strategic human resource management practices in Nestle Plc.
iv. To identify the problems and make possible suggestions of human resource strategic practices in the organization.
1.4 RESEARCH QUESTIONS
The research aimed at finding answers and explanation for the following pertinent questions:
i. What is the impact of strategic human resource management on organizational performance?
ii. How would strategic human resource management affect the performance and productivity of the organization?
iii. What are the rationales behind strategic human resource management practice in the Nestle Nigeria Plc?
iv. What are the major functional areas of strategic human resource practices?
1.5 RESEARCH HYPOTHESES
Hypothesis implies a conjectural statement or preposition about the relationship that exist between two variables in Nestle Nigeria Plc.
Ho: Denotes the null hypotheses while Hi: Denotes the alternative hypotheses.
Hypothesis I
HO: There is no significant relationship between strategic human resource management and organizational performance.
Hi: There is a significant relationship between strategic human resource management and organizational performance.
Hypothesis II
HO: Top management policies do not have a relationship on productivity of the organization.
Hi: Top management policies have a relationship on productivity of the organization.
Hypothesis III
HO: There is no significant relationship between strategic human resource management and achievement of competitive advantage.
Hi: There is a significant relationship between strategic human resources management and achievement of competitive advantage.
1.6 SIGNIFICANCE OF THE STUDY
The findings of this study will no doubt raise the level of awareness of management concerned towards the implementation of proper strategic human resource management policies and programmed in Nestle Plc as well as the legitimate role of strategy in the world of business.
1.7 SCOPE AND LIMITATION OF THE STUDY
This research will cover the impact of strategic human resource management on organizational performance; the research will focus on Nestle Plc at Agbara. The study will concentrate on head office at Agbara in Lagos, though the organization also has other branches in Nigeria. The practical study will be restricted to a segment of workforce, which will be on the senior and junior staff of the organization. The limitations of this study include such extraneous factors that may equally limit the strength of this study such as time constraint, lack of fund, the nature of the business environment and inadequate current and relevant materials.
1.8 DEFINITION OF TERMS
1. STRATEGY: Johnson and Scholes (1993) defined strategy as the direction and scope of an organization over the longer term, which ideally matches its resources to its changing environments, and particular to its market, customers and clients to meet stakeholder’s expectations.
2. STRATEGY MANAGEMENT: This refer to a process of specify the organization objective, developing plan and allocating resources to implement the policies and plan to achieve the organization objective
3. HUMAN RESOURCES: This refers to all categories of worker, skilled and unskilled workers, supervisors and managers are an organization.
4. HUMAN RESOURCES MANAGEMENT: Hall and Goodale (2004) consider HRM as the process of managing and bringing people and organization together so that the good of each are met.
5. STRATEGIC HUMAN RESOURCES MANAGEMENT: Strategies human resources management refers to pursue in achieving its objectives through people. Miller (1999) also stated that strategic human resources management encompasses these decision and actions which concern the management of employee at all levels in the business.
6. EFFECTIVENESS: This has to do with accomplishment of stated task.
7. EFFICIENCY: This is concerned with the use of resources, using lowest minimum input or resource to achieve optimum goals.
8. POLICIES: A policy is simply a guide to action or guide to thinking.
VISION: This assumes and anticipation the future picture of an enterprise or organization. It is futuristic in nature.
REFERENCES
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Armstrong, M and Long, P (1994). The Reality of Strategic Human Resource Management. Institute of Personnel and Development, London.
Bates, R.A. and Holton, E.F. (1995). Computerized Performance Monitoring. A Review of Human Resources Issues, Human Resources Management Review, Winter, Pp 26 7-88.
Backhard, R (1969). Organization Development: Strategy and Models, Addison-Wesley, Reading Mass.
Adeleke Adepeju (2001), Management concept and Applications Concept Publications Lagos