CHAPTER ONE INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Organizations are increasingly looking at human resources as a unique asset that can provide sustained competitive advantage. The changes in the business environment with increasing globalization, changing demographics of the workforce, increased focus on profitability through growth, technological changes, intellectual capital and the neverending changes that organizations are undergoing, have led to increased importance of managing human resources. (Devanna, Fomreau & Tichy, 1981; Write 1998). Human Resources is highly administrative and lacks strategic integration, it fails to provide the competitive advantages needed for survival, thus loosing its relevance. (Huselid & Becker 1997) found that there were noticeable financial returns for the organization whose Human Resources Management systems have achieved operational excellence and are aligned with business strategic goals. According to Ulrich (1998), a firm that employ Human Resources practices according to the stated strategy are regarded to have better perceptual performance. In recent years, a host of papers have been published which looks into the Strategic aspect of Human Resources Management. Ahmad (2001), classified various definitions of Strategic Human Resources Management based on strategy-focused, decision-focused, content-focused and implementation focused approach. According to the strategy-focused approach, as defined by Mathis and Jackson (1985), Human Resources Management is strategic by its very nature and all its elements have strategic linkages. The decision focused approach formulated by Devanna (1984), is based on three decisions making levels namely: operational, managerial and strategic. According to the content-focused approach as proposed by Torrington and Hall (1995) Human Resources emerges when Human Resources Management elements match the organization‟s strategy. While the Implementation-focused approach as brought forward by Miles and Snow (1984) is when Human Resources Management systems help in the formulation and implementation of business strategies.
Human Resources Management is the function within an organization that focuses on recruitment of, management of and providing direction for the people who work in the organization. Human Resources Management can also be performed by line managers. Human Resources Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organizational development, strategy, wellness, benefits, employee motivation, communication, administration and training. Human Resources Management is the strategic and coherent approach to the management of an organization‟s most valued assets; the people working there who individually and collectively contribute to the achievement of the objectives of the business. The term “Human Resources Management” and “human resources” have largely replaced the term “personnel management” as a description of the processes involved in managing people in organizations. In simple words, Human Resources Management means employing people, developing their capabilities, utilizing, maintaining and compensating their services in tune with the job and organizational requirements. According to Lake (1990), Human Resources Management systems can be the source of organizational capabilities that allow firms to learn and capitalize on new opportunities. The main characteristics of Human Resources Management approach is that it meets the needs for a strategic approach to Human Resources Management which achieves “fit” between the business and the human resources strategy.
Human Resources is viewed as a source of competitive advantage in line with the concept of resource-based strategy; it is a comprehensive and coherent approach to the provision of mutually supporting employment policies and practices, and it is adopted through the development of integrated Human Resources policies and practices (Armstrong 2001). Some people believe that there are universal principles, practices and general know-how on which efficient and effective Human Resources Management is based. Adler and Ghader (1990) argued that companies handle Human Resources Management issues as if they were operating exclusively in domestic markets. The early advocates of Human Resources Management believed that organization should move away from the bureaucracy of personnel management to the apparent flexibility and responsiveness of Human Resources Management (HopeHailey 1998).
The overall purpose of Human Resources Management is to ensure that the organization is able to achieve success through people; specifically Human Resources Management is concerned with achieving objectives in certain areas like recruitment and development, relationships, valuing employees etc. This practice is no longer new in Nigerian organizations, but the problem is that most organizations are yet to fully apply or implement this. Based on this ground, the purpose of this study is to evaluate the Human Resources Management practices in Nigerian Organizations, using GTBank Enugu as a case study.
1.2 STATEMENT OF THE PROBLEM
1.3 OBJECTIVES OF THE STUDY
1.4 RESEARCH QUESTIONS
1.5 FORMULATION OF HYPOTHESIS
1.6 SIGNIFICANCE OF THE STUDY
1.7 SCOPE OF THE STUDY
1.8 LIMITATIONS OF THE STUDY
1.9 DEFINITION OF TERMS
REFERENCES
Armstrong, M. (2001), Human Resources Management Practices, Catalog Publications, 8th Edition.
Beer, M. (1984), “Managing Human Resources Assets” Walton Free Press New York.
Derek T. and Laura Hall (1998), Human Resources Management, Prentice Hall, 4th Edition. Mclean, G.N “National Human Resources Development: A Focused Study in Transitioning Societies in the Developing world” Vol.8.
Onah, F. O. (2003), Human Resources Management. Enugu, Fulladu Publishing Company.
Reckit, C. A. (2004), Managing People at Work Place. New Delhi, Vikas Publishing Company. Shaun and Alfred (2000), Essentials of Human Resources Management, Jordan Hill Oxford Publishers 4th Edition.
Spector, B. (1999), “Strategic Human Resources Management: Discussion of Key Terms and Concepts” Us Office of Personnel Mgt. Washington DC.
Stoner, J. F. A. (2002), Human Resources Management, New Jersey Prentice Hall, Inc.