The extent to which, if any, human resource department impacts on organizational performance has emerged as the central research question in the personnel/HRM field.
Although initial results indicate that some human resources practices may have a positive effect on organizational performance, most scholars suggest that more conceptual and empirical work is required (Brewster, 2004; Cardon and Stevens, 2004; Givord and Maurin, 2004; Zhu, 2004). For the moment, although Human resources (HR) are considered as the most valuable asset in an organization, they make a difference only for a few organizations (Pfeffer, 1998; Wimbush, 2005). The link between human resources (HR) and firm growth is well documented in classic economic theory. Overwhelming evidence suggests growth is driven by specialization and division of labour in the processes of generation and attraction/development of technological opportunities. However, at the firm level of analysis, only recently the link between human capital and growth has attracted the interest of researchers. This study analyzed the capacity of the human resource department to drive organizational change, examining the contribution of human resource department on organizational performance and also it examine the contribution of human resource department on employee commitment. Data for the study was collected primarily by administration of questionnaire, and a total of 166 well-structured questionnaires were administered. Descriptive statistics was adopted to analyze the findings of this study. The results revealed that the presence of job security is positively related to firm growth, the extent of training and development will be positively related to firm growth, selective hiring is positively related to firm growth, sharing of information is positively related to firm growth, compensation Policy is positively related to firm growth and decentralization is positively related to firm growth. Suggestion were therefore, made in the end of this work for further planning and decision making for effective organization change.
1.1 Background of the Study
All over world, every organization usually have resource at their disposal which they deploy to realizing their goals and objectives. These resources are capital, land, labor (human) and technology.
Humans are an organization’s greatest assets; humans and the potential they possess drive an organization change (Jahn, 2007). Today organizations are continuously changing. Organization change impacts not only the business but also its employees. In order to maximize organizational effectiveness occasioned by the change, human resources-individual’ capabilities, time, and talents-must be managed. To ensure that change is efficiently driven by the human resource department. Hence, human resource management is the responsibility of human resource department.
Human resource management therefore can be said to be 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 terms ”human resource management” and human
resource” (HR) have largely replaced the term ”personnel management” as a description of the processes involved in managing people in organizations. In simple words, human resource management means employing people, deploying their capacities, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.
Human resource department and units in organizations typically undertake a number of activities, including employee benefits design, employee recruitment, ”training and development”, performance appraisal, and rewarding (e.g.., managing pay and benefit systems) (Pauuwe & Boon, 2009). Human resource department also concern itself with organizational change and industrial relations, that is, the balancing of organizational practices with requirements arising from collective bargaining and from governmental laws (Klerck, 2009). According to Buettner (2015), activities of the human resource department includes job design and analysis, workforce planning, recruitment and selection, training and development, performance management, compensation (remuneration), and legal issues. Human resource department started as a result of the human relations movement of the early 20th century, when researchers began documenting ways of creating business value through the strategic management of the workforce. The function was initially dominated by transactional work, such as payroll and benefits administration, but due to globalization, company consolidation, technological advances, and further research, Human resource department as of 2015 focuses on strategic initiatives like mergers and acquisitions , talent management, succession planning, industrial and labour relations, and diversity and inclusion.
Human Resource department of any organization always focuses on maximizing employee productivity. Human Resource department manage the human capital of an organization and focus on implementing policies and processes. They also focus in on recruiting, training, employee relations or benefits. Recruiting specialist are in charge of finding and hiring top talent. Human resource department also ensure that employee are trained and have continuous development. This is done through training programs, performance evaluations and reward programs. Employee relations deals with concerns of employees when policies are broken, such as harassment or discrimination. Someone in benefits develops compensation structures, family leave programs, discounts and other benefits that employees can get. However, this study is examining the capacity of human resource department to drive organizational change.
1.2 Statement of the Problem
Businesses are moving globally and forming more diverse terms. It is the role of human resources department to make sure that organizations can function and people are able to communicate cross culturally and across borders. Human resource departments strive to offer benefits that will appeal to workers, thus reducing the risk of losing corporate knowledge. Hence, if these duties of human resource is done effectively, the needed change will be well driven in the organization.
However, the researchers are curious of determining the capacity of human resource department to drive organizational change considering how difficult it is to manage the human and its talents, which the most important asset of an organization that can guarantee the sustainability of the organizational change.
1.3 Research Question
The research question for this project is as follow:
i. How human resource department does brings about organizational change?
ii. How does human resource department contribute to organizational performance?
iii. What are the contribution of human resource department on employee commitment?
1.4 Objectives of the Study
The following are the objectives of the study:
i. To examine the capacity of the human resource department to drive organizational change.
ii. To examine the contribution of human resource department on organizational performance
iii. To examine the contribution of human resource department on employee commitment
1.5 Significance of the study
The research will be valuable reference material for students, organisations and other interested persons who may want to undertake similar study. Recommendations made by the study would enable organisation to have more insights on the need to shift from ad hoc planning to more systematic and scientific based planning of their human resources. Finally, it would enable First Bank of Nigeria to appreciate the effectiveness of Human Resource department to drive change.
1.6 Scope Of The Study
The work is on the capacity of human resources department to drive organizational change, First Bank of Nigeria as the case study. It will cover the concept of Organization change; examine Human Resource department in Banking Sector, the impact of HRM on performance of employee and also the challenges of Human Resource Management in different Sector.
1.7 Limitations Of The Study
In carrying out this research many factors served as constraints:
The limitation of the research title as just study of the capacity of human resources department to drive organizational change, First Bank of Nigeria as the case study.
1. Financial Limitation.
2. Inadequate Time: time factor constitutes the major limitation of this research study. It relates to the fact that the time for research work was short because it was combined with lectures, studies and examination.
2. Negative attitude of respondent: the problem facing the researcher with regards to the respondents relates to the non-cooperation and uncompromising attitude some respondents in giving
1.8 Definition Of Terms
(a) Document study: Ikeagwu (1998:89), a document study refers to the study of any written material that contains information about the happenings that are being studied.
(b) Manpower: Harbinso (1998:106) refers manpower as human being i.e. human resources of an organization for optional utilization and attainment of organizational objectives.
(c) Manpower development: According to Kennedy (1961:57) this is a process of acquiring and increasing the number of persons who have educational skills and experience, and motivation which are critical for economic and social development of an organization. It includes investment by society in education, investment by
employer’s in training and investment by individual in time and money in their own development.
(d) Productivity by (Mail, 1978:42) is seen as reaching the highest level of performance with the least expenditure of resources. It represents the output of goods and services which can be obtained from a given input indices as manpower const/unit of output, manpower cost as a ratio of sales, per employee and contribution per employee. Internal and external either through reduction in number of mechanization by Bedium (1987:80).
(e) Training: Is defined as discipline and instruction which improve character through exercises to achieve objectives or goals efficiently. Rom Herzog (1977:102).
(f) Staff appraisal: Refers to critical performance appraisal it plays important role in determine who has potential for development (Banjoko, 1996:46). Each manager or head of department filling a form over viewing certain areas of
performance of the subordinates normally carries it out. The form which each manager is expected to complete in respect of the staff has various columns for recording salient aspects of an employee’s contribution over a period of twelve months.
(g) Compensation what the employees receive in exchange for their contribution to the organization Kertk, (1996:8).
(h) Manpower Plan: Is action steps to meet manpower need. It is specific action plan or blue prints for bridging the gap between the forecast and the inventory to be met as a result of changes in the existing workforce. Specific plans will have to be developed for the recruitment training and transfer of the necessary personnel. Karek, (1999:102).