Impact of human resource management on organizational performance


Price: 2000 Naira (BSC, MSC)


This project is a review “impact of human resource management on organizational performance”. The problem identified was Work motivation and compensation, Ethics and Values, Work Attitude and Recruitment and Selection Process. This write up showed the relevant literature concerning the project topic. It goes further to explain HRM and organization performance in Nigeria, Using a study of Nigeria bottling company plc. The descriptive survey method was used and the research tool was questionnaire. 250 staffs answered the questionnaire. Frequency percentages and criterion mean score of 2.5 were used in data analysis using Chi-square formula and presentation was done by the use of tables. The findings from the study showed that the factors of organization performance and Human Resource management in Nigeria. Finally, solutions and recommendations were proffered, in which emphasis was made on the remedies. The write up is duly summarized.



1.1 Background of Study

The development of any nation depends to a very large extent on the calibre, organization and motivation of its human resources. In the specific case of Nigeria where diversity exerts tremendous influence on politics and administration, the capacity to increase the benefits and reduce the costs of this diversity constitutes a human resource management challenge of epic proportion in its public sector organizations. Human Resource Management (HRM) 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 Resource Management can also be performed by line managers.

Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.

Human Resource Management is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization’s goals and objectives. Human Resource Management is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of
employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and HRM metrics and measurements to demonstrate.

HRM covers a wide range of activities. The main area of study we will focus on will be incentives and work organization. Incentives include remuneration systems (e.g. individuals or group incentive/contingent pay) and also the system of appraisal, promotion and career advancement. By work organization we mean the distribution of decision rights (autonomy/decentralization) between managers and workers, job design (e.g. flexibility of working, job rotation), team-working (e.g. who works with whom) and information provision.

Human resource management encompasses the traditional personnel functions of recruitment, selection, training, motivation, compensation, evaluation, discipline, and termination of employees. Each of those tasks demands particular skills. Increasingly, human resource management is being recognized for its strategic importance to organizations and jurisdictions, and is moving beyond its traditional position as a monitor of compliance. This course is designed to provide you with an understanding of the evolution of human resource management policies and practices, and how changes over time reflect shifting societal values and environmental circumstances. Our emphasis is on improving understanding of the
historical context and current conditions of public sector HRM and developing basic skills necessary to be an effectively manage human resources.

According to Likert (1996:112) the term human resource refers to the talents.” Thus the term connets man in relationship to the world of works. Such work involves producing things and providing services of all kinds in the social political, cultural and economic development of a nation.

“Human resources management is simply described as the management of the human resources in an organization for optimal utilization and attainment of organizational objectives” Banjoko (1996:69) AS opined by Harbinson (1998 :213) man power refers to human beings i.e. human
resources of an organization or nation regardless of their skill. They make
organizations functions”. Karen (1999:89) looks at manpower as a unique
resource. It is an indispensable means of converting all other resources to
mankind use and benefits” How well it is used determines how well an organization performs. Human resources management takes place within
the frame work of an organization in a purpose constrict, deliberately
designed to achieve certain goals. The efficiency with which that organization is operated will depend to a large extent on how utilized. For a manager to be effective, the manager has to design a programme which ensures the selection and training of employees for the jobs that best suit their abilities and motivating them to exert that maximum effort for the attainment of the corporate objective.

1.2 Statement of Problem

The management of any organization be it profit or nonprofit oriented institution or organization is often faced with one common problem. This problem normally has to do with the efficient and effective utilization of resources for the attainment and of organization goals and objectives. The set goals and objectives clearly justify the existence of any organization and therefore its realization or non-realization determines the survival or untimely death of such organization. The need to realize organizational objectives imposed on management a variety of problems which management needs to tackle from time to time. It has often been
discovered that improper and poor management of human resources in organizations usually leads to problems such as.
1. High labour turnover

2. Low employee morale

3. Lack of job satisfaction

4. Reduced creativity and sturned growth on the part of the employee
5. Lack of employee motivation which often result in low organization performance and

6. Reduce corporate profitability and threatened growth and survival
of the organization.

The effects of these problems on employee productivity and how it
could be reduced or eliminated completely to enhance organization performance via effective human resources management is what the research is set to achieve.

1.3 Objective of the Study

The main objectives of the study are to critically assess the impact of human resource management on organizational performance as study of Nigeria bottling company plc with a view to:

1) Identifying the importance of HRM to an organization in Nigeria

2) Identifying the need for HRM in an organization

3) Identifying problems associated with HRM in organizations.

4) Examine the trend and techniques of HRM in organizations

5) Reviewing the process of HRM and its impact on organization performance
6) Identifying the relationship between effective HRM and
organizational profitability.

7) Identifying the problems associated with HRM and profer solutions
to them.

1.4 Research Questions

1.  What is the evidence to prove that work motivation and compensation contributes to the performance of an organization?

2. What is the evidence to prove that Ethics and Values contribute to poor performance of an organization?

3. What is the significant relationship to show that work attitude of workers by workers affects the performance of an organization?

4. What is the evidence to show recruitment and selection process of workers affects the performance of public or private sector organization?

1.5 Research Hypotheses

 The following research hypotheses are tested.

The researcher uses hypotheses HO which is a test of no difference
HO1: There is evidence to prove that work motivation and compensation contributes to the performance of an organization.

HO2: There is evidence to prove that Ethics and Values contribute to poor performance of an organization.

HO3: There is a significant relationship to show that work attitude of workers by workers affects the performance of an organization.
HO4: There is evidence to show recruitment and selection process of workers affects the performance of public or private sector organization

1.6 Significance of Study

Human Resource Management is the backbone of any economy production of any nation. HRM plays a vital role in the performance of the Nigeria organizations. It is therefore important to identify the significances of the research work which are subdivided as:

1. The findings of this research will serve as a guide in the performance of other organization through their human resource.

2. The findings of this study will enable for proper management of human resource which will lead to effective customer value and performance in organization management.

3. It will also enhance government, private sector and general public participation contribution in addressing these human resource management in public sector organization.

4. The study will enable me to contribute my own views and ideas on managing human resource and organization performance in Nigeria.

5. The study will be of immense help to other people and students who might wish to carry out other researches in the field.

1.7 Scope of the Study

The work is on impact of human resource management on organizational performance, as study of Nigeria bottling company plc. It will cover the concept of organizational performance; examine Human Resource Management in Public and private Sector, the impact of HRM on organizational performance in Nigeria bottling company plc and also the challenges of Human Resource Management in Nigeria bottling company plc.

1.8 Limitations of the Study

In carrying out this research many factors served as constraints:
1. The limitation of the research title as just HRM and Organization in Nigeria bottling company plc.

2. Financial Limitation.

3. 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.
4. 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

1.9 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 pessssssrformance 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,

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