HUMAN RESOURCE MANAGEMENT

THE IMPACT OF CAREER MANAGEMENT ON ORGANIZATIONAL PERFORMANCE

IMPACT OF CAREER MANAGEMENT ON ORGANIZATIONAL PERFORMANCE

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

The imperative of modern human resources practice articulates an integrated approach to manpower planning and administration as a corporate survival strategy. Career management as part of a larger human resource system must ensure that business objectives are acted and delivered to acceptable standards. The alignment therefore of employees needs an aspiration with organizational needs is imperative to achieving strategic organizational performance as profit, growth and market value. Combs, Crook and Shook (2005) identify four organizational performance dimensions; consisting of profitability, liquidity, growth and stock market performance. Mohrman and Mohrman (1995) emphasizes on performance management in career management as “managing the business”, in other words, it is what line managers do all the time. As a result of this history of performance management over the last couple of decades we have seen performance management progress from a human resource policy firmly within the reach  of the Human Resource department  to a business process that is central to aligning activity with strategic goals and is as much about managing the business as it is about directing people and controlling the flow of training or reward to attaining strategy organizational performance.

Career management is the process which plans and shapes the profession of individuals within an organization in accordance with organizational needs and objectives. According to Baron and Greenberg (1990, page 320) a typical career management programme as part of the larger human resources system involves efforts aimed at helping employees to assess their own career, strengths and weakness; set priorities and specific  career goals, provides information on various career path and alternatives within the organization and offer employees yearly reviews of their progress towards these goals by managers who have received training in conducting such assessment.

Career management assesses employees to improve their performance by involving employee in setting their own goals and recognizing their strengths and weakness. It assists employees with the organization with the identification and facilitation of training needs and opportunities. This is mainly achieved by building a process of feedback and discussion into the performance management system of institutions. Career management clarifies available career options. Employees are informed of career options available with the organization. It assist employee with the identification of skills and other qualities required for current and future jobs most career management performance seek to focus employees career plans upon the organization thereby enhancing their commitment to the organization. In doing this, careers path are developed that indicates mobility in different directions in the organization for the employees.

Career management as part of larger human resource system seeks to align the aspiration of employees with organizational performance objectives which as the focus these researches study. Career management programme seen to improve the marketing of jobs with the right employees. As assessment of the skills and competencies of employees could assist in accommodating them in position which suit them better. Through the application of practices such as transfers and rotation an organizations operational effectiveness can be improved. Career management must be articulated and transformed as part overall organizational performance objectives of various defined organization acceptable measures as prompt, growth, market value etc. as part of overall organizational corporate strategy. The research seeks to adopt Guinness Nigeria PLC as a case study to highlight career management practice in Guinness Nigeria PLC and its impact on organizational performance objectives of profitability growth and market value.

Armstrong (2006) observes that the assumption underpinning the practice of Human Resource Management including Career Management is that people are the organization’s key resource and organizational performance largely depends on them. Therefore, if an appropriate range of Human Resources Policies and Career management processes are developed and implemented effectively then, Human Resources will make a substantial impact on organizations performance. Booehe et al (2011) argue that the case for an organization Human Resource relationship with organizations performance is based in two arguments. The first being that the effective deployment human resources offer one of the most powerful bases of competitive advantage. This second argument is that effective deployment of human resources depends on the application of a distinctive combination of practices or the use of a consistent set of human resources practices including career management.

Collin Drutea (2003) stated that researchers have produced compelling evidence for the caused link between how people are managed and organizational performance. They argue that the effectiveness of human resources practices as employee selection procedures; performance appraisal, career management, compensation management training and development often have a direct bearing on organizational productivity and performance.  Booehe et al (2011) present that the result of effectively managing human resources is an enhanced ability to attract and retain qualified employees who are motivated to perform resulting in organization performance objectives of profit, growth and market value.

1.2   STATEMENT OF THE PROBLEM

Many organization make huge financial investment on human resources to translate overall corporate performance objectives into reality. The center of Modern Human Resource Management lies at the heart of corporate organizational strategy translated into acceptable standards of organizational performance objectives as profit, growth and market values. As a result when losses are incurred, it leads to organizational retrogression in retrenchment and lay off of staffs. This is not a healthy situation for a growing economy like Nigeria. Recent studies reveal many organizations both in the financial and non-financial sectors are facing this critical situation. Therefore, the problem confronting this research is to examine career management and organizational performance with a case study to determine the impact of career management on organizational performance in Guinness Nigeria PLC.

1.3  RESEARCH QUESTIONS

The research questions are enumerated as follows:

1.  What constitute career management and what is the nature of career management in Guinness Nigeria PLC.?

2.  What is organizational performance and what are the organizational performance objectives in Guinness Nigeria Plc?

3.  What is the relationship between career management and organization performance?

4.  What is the level of impact of career management in Guinness Nigeria PLC in organizational performance?

1.4  OBJECTIVES OF THE STUDY

The objectives of the study include:

1.  To conduct a detail study on career management and organizational performance.

2.  To show the relationship between career management and organizational performance.

3.  To highlight the nature of career management in Guinness Nigeria Plc.

4.  To highlight the nature of organization performance objectives in Guinness Nigeria Plc.

5.  To determine the impact of career management on organizational performance in Guinness Nigeria Plc.

1.5  SIGNIFICANCE OF THE STUDY

The significance of the study consists of the following:

1.  It shall provide relevant information and knowledge on career management on organizational performance to human resources practitioners, manager and consultants.

2.  It shall provide the necessary tools for modern human resource management required for career management.

3.  It shall provide a bridge to the gap experience in the past when human resource management and in particular, career management are given trivial attention in organizational management.

4.  It shall provide direction to career management towards attaining organizational performance objectives.

1.6  STATEMENT OF HYPOTHESIS

1.  Ho    Career management is not given significant attention in Guinness Nigeria Plc.

H1: Career management is given significant attention in Guinness Nigeria Plc.

2.  Ho: There is no organizational performance standard in Guinness Nigeria Plc.

H1:  There is organizational performance standard in Guinness Nigeria Plc.

3.  Ho: There is no significant impact of career management on organizational performance in Guinness Nigeria Plc.

H1: There is significant impact of career management on organizational performance in Guinness Nigeria Plc.

1.7  JUSTIFICATION OF THE STUDY

The justification of the study center on the following:

1.  Modern Human Resource Planning and Administration centers on organization corporate strategy.

2.  The corporate strategy typifies the organizational performance objectives which are stated in the organization acceptable standards of profit, growth and market value.

3.  Career management is an integrated aspect of the human resource system.

4.  The various elements of career management are to give direction to the organizations corporate strategy.

1.8   SCOPE OF THE STUDY

The scope of the study shall;

1.  Provide an in-depth study in career management as part of the human resource system.

2.  The study shall provide an analysis of organizational performance standards and measures.

3.  The study shall endeavour to highlight the significance of the relationship between career management and organizational performance.

4.  It shall provide a case study showing the impact of career management in organization performance in Guinness Nigeria Plc.

1.9  DEFINITION OF TERMS

CAREER MANAGEMENT:  Career management can be defined as the process that plans and shapes the progression of individual within an organization in accordance with the organizational need and objectives.

EMPLOYEES DEVELOPMENT:  Employees development is a joint, on-going effort on the part of an employee and the organization for which he or she works to upgrade the employees’ knowledge, skills and objectives.

CAREER PLANNING:  Career planning is a process undertaken by employees and their supervisors. The employee is responsible for self-assessment identifying career interest and development needs.

CAREER PATH:  Career path identify route to attain goals. Based on the career expectation identified in the process of career planning, possible career paths are mapped out for employees. Career paths set out a sequence of posts to which employees can be promoted, transferred and rotated.