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.
TABLE OF CONTENT
Title Pages
Certification ii
Dedication iii
Acknowledgment iv
Abstract v
Table of Content vi
Chapter One
Introduction 1
1.1
Background of
Study 1
1.2
Statements of
Problem 3
1.3
Aim and
Objectives of the Study 4
1.4
Research Questions 4
1.5
Research
Hypotheses 5
1.6
Significance of
the Study 6
1.7
Scope and
Limitation of the Study 6
1.8
Definition of
Terms 6
References 9
Chapter Two
Literature Review 10
2.1 Preamble 10
2.2 Theoretical Framework of the Study 13
2.2.1 Types of Strategy 15
2.2.2 Evaluation of a Strategy 16
2.2.3 Strategy Formulation Process 17
2.2.4 Human Resources 20
2.2.5 The Human Resource Process 22
2.2.6 Criteria for an Effective Human Resource
Strategy 23
2.2.7 Formal Models Of Human Resource Strategy 24
2.2.8 The Human Resource Cycle (Fombrun, Tichy &
Devanae
(1999) 26
2.2.9 Human Resources Management 31
2.2.10 Human Resources Management Strategic Themes 31
2.2.11 Concept of Strategic Human Resources
Management (HRM) 33
2.2.12 Meaning Of Strategic HRM 34
2.2.13 The Structure Management Process 36
2.2.14 The Distinction Between Strategic HRM
and HRM Strategies 37
2.2.15 Approaches To Strategic Human Resources
Management 37
2.2.16 Resource Based Strategic HRM 38
2.2.17 High Performance Management Approach 39
2.2.18 High Commitment Management Model 41
2.2.19 Implementing Strategic HRM 44
2.3 Empirical
Review 44
References 48
Chapter Three
Research Methodology 52
3.1 Preamble 52
3.2 Research Design 52
3.3 Population of the Study 52
3.4 Sample Size and Sampling Techniques 53
3.5 Method of Data Collection and Validation 53
3.6 Method of Data Analysis 54
3.7 Limitation of Methodology 56
References 58
Chapter Four
Data Presentation, Analysis and Interpretation 59
4.1 Preamble 59
4.2 Analysis of Respondents' Demographic Information 59
4.3 Test of Hypotheses 69
4.3.1 Test of Hypothesis I 70
4.3.2 Test of Hypothesis 2 73
4.3.3 Test of Hypothesis 3 75
4.4 Discussion of Findings 77
Chapter Five
Summary, Conclusion and Recommendation 79
5.1 Summary of Findings 79
5.2 Conclusion 80
5.3 Recommendations 80
Bibliography 82
Appendix I 87
Appendix II 88
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF 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 STATEMENTS OF 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 AIM AND 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.
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