IMPACT OF HUMAN CAPITAL UTILIZATION ON ORGANIZATIONAL EFFECTIVENESS (A STUDY OF SELECTED MANUFACTURING FIRMS IN ABIA STATE)

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ABSTRACT

The general objective of the study was to examine the impact of human capital utilization on organizational effectiveness (A study of selected manufacturing firms in Abia state). The specific aims were to; determine the impact of employability and skills of employees on organizational performanceascertain the impact of utilization of human capital resource capabilities on organizational competivenessdetermine the impact of leadership styles and employment modes on organizational effectiveness; and examine the impact of work-life management on organizational performance The study adopted a survey design method. The population of this study was made up of the management staff of two selected manufacturing organizations in Aba, Abia State. The manufacturing organizations were PZ Cussons, Aba and Nigerian Breweries Plc, Aba, Abia State. The total number of staff for the two organizations was 390. Using Taro Yamane Formula, a sample size of 197 respondents was determined and used for the study. The probability sampling of random sampling technique was used in selecting the sample size for the study.  The data generated in the study were analysed according to the stated objectives of the study. A further test of hypotheses was done using simple regression model. All analyses were done through the use of the Statistical Package for the Social Sciences (SPSS) version 20.0. Findings showed that employability and skills of employees was found to have a positive and direct impact on organizational performance. This implies that an increase in employability and skills of employees will result to an increase in organizational performance. The utilization of human capital resource capabilities was found to be a positive and significant factor that impact influence organizational competivenessThe study also revealed that leadership styles and employment modes           in the studied organizations exert statistically significant impact on organizational effectiveness. It was further also revealed that work-life management statistically and significantly has a positive impact on organizational performance. The study amongst others recommended that the human resource department of the studied firms should devise strategic means of exploiting human capital resources capabilities within the organization. When human capital resource capabilities are properly utilized within an organization, competiveness is enhanced. This would make them proactive and resilient.






TABLE OF CONTENTS

Cover Page

Title Page                                                                                                                                i

Table of Contents                                                                                                                   ii

CHAPTER 1                                                                                                                          1

INTRODUCTION                                                                                                                1

1.1 Background to the Study                                                                                                  1

1.2 Statement of the Problem                                                                                                 4

1.3 Objectives of the Study                                                                                                    5

1.4 Research Questions                                                                                                          5

1.5 Research Hypotheses                                                                                                        6

1.6 Significance of the Study                                                                                                 6

1.7 Scope of the Study                                                                                                            6

1.8 Profiles of the Firms under Study                                                                                     7

1.8.1 P.Z Cussons Nigeria Plc, Aba                                                                                       7

1.8.2 Nigerian Breweries Plc                                                                                                  8

1.9 Operational Definition of Terms                                                                                      9

CHAPTER 2                                                                                                                          11

REVIEW OF RELATED LITERATURE                                                                         11

2.1 Conceptual Framework                                                                                                    11

2.1.1 Human Capital                                                                                                              11

2.1.2 Human Capital Management (HCM) Features and Functions                                      13

2.1.2.1 Human Capital and Complementary Capitals                                                                        15

2.1.2.2 Intellectual capital                                                                                                      16

2.1.2.3. Social capital                                                                                                             18

2.1.2.4 Organizational (Structural) capital                                                                             19

2.1.3 Human Capital, Human Resources: Rhetoric and Reality                                            21

2.1.4 Issues with Human Capital and Performance Linkage                                                 22

2.1.5 Human Resource Utilization                                                                                         24

2.1.6 Rationale for Effective Manpower Utilization                                                              26

2.1.7 Instruments of Human Resources Utilization                                                               27

2.1.8 Methods of Human Resource Utilization                                                                      28

2.1.9 Training, Staff Utilization and Productivity: The Nexus                                              29

2.1.10 Human Capital Resource Capabilities                                                                        30

2.1.11 Employment Modes                                                                                                     32

2.1.12 Work-life Management                                                                                               34

2.1.13 Leadership Styles                                                                                                        36

2.1.14 Organizational effectiveness                                                                                       38

2.2 Theoretical Framework                                                                                                    40

2.2.1 Human Capital Theory - Schultz (1961)                                                                       41

2.2.2 Resource-based Theory – Barney and Clark (2007)                                                     42

2.3 Empirical Review                                                                                                             43

2.4 Summary of Reviewed Related Literature                                                                       46

2.5 Gap in Literature                                                                                                              46

CHAPTER 3                                                                                                                          48

METHODOLOGY                                                                                                               48

3.1 Research Design                                                                                                               48

3.2 Sources of Data                                                                                                                48

3.2.1 Primary data                                                                                                                  48

3.2.2 Secondary data                                                                                                              48

3.3 Population of the Study                                                                                                    48

3.4 Sample Size Determination                                                                                              49

3.5 Sampling Technique                                                                                                         50

3.6 Description of Instrument                                                                                                 50

3.7 Validity of the Instrument                                                                                                50

3.8 Reliability of the Instrument                                                                                            51

3.9 Method of Data Analysis                                                                                           52

3.10 Model specification                                                                                                        52

CHAPTER 4                                                                                                                                      54

DATA PRESENTATION AND ANALYSES                                                                          54

4.1 Presentation of Data                                                                                                         54

4.1.1 Questionnaire Distribution and Return                                                                                     54

4.1.2 Staff Positions                                                                                                                54

4.1.3 Sex of Respondents                                                                                                       55

4.1.4 Age of Respondents                                                                                                       55

4.1.5 Marital Status of Respondents                                                                                       56

4.1.6 Educational Background of Respondents                                                                      56

4.1.7 Respondents’ Number of Years with the Organizations                                               57

4.1.8 Responses on the Impact of Employability and Skills of Employees on

         Organizational Performance                                                                                                      57

4.1.9 Responses on the Impact of Utilization of Human Capital Resource

         Capabilities on Organizational Competitiveness                                                                      58

4.1.10 Responses on the Impact of Leadership Styles and Employment Modes on

         Organizational Effectiveness                                                                                                     59

4.1.11 Responses on the Impact of Work-Life Management on Organizational

         Performance                                                                                                                               60       

4.2 Test of Hypotheses                                                                                                           61

4.2.1 Impact of Employability and Skills of Employees on Organizational

        Performance                                                                                                                   61

4.2.2 Impact of Utilization of Human Capital Resource Capabilities on

      Organizational Competiveness                                                                                         62

4.2.3 Impact of Leadership Styles and Employment Modes on Organizational

      Effectiveness                                                                                                                    63

4.2.4 Impact of Work-Life Management on Organizational Performance                                    64

4.3 Discussion of Findings                                                                                                                 65

CHAPTER 5                                                                                                                          66

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS     66

5.1 Summary of Findings                                                                                                       66

5.2 Conclusion                                                                                                                        66

5.3 Recommendation                                                                                                             67

References

                                            




                                                               

LIST OF TABLES

Table 3.1 Population distribution for the staff of the 2 selected Manufacturing

     Organizations in Aba, Abia State                                                                          50

Table 4.1 Distribution and Return of Questionnaire                                                              54

Table 4.2 Frequency distribution showing the Positions of the Staff in the Studied

              Organizations                                                                                                            54

Table 4.3 Frequency distribution showing the Sex of Respondents in the Studied

              Organizations                                                                                                            55

Table 4.4 Frequency distribution showing the Ages of Respondents in the Studied

              Organizations                                                                                                            55

Table 4.5 Frequency distribution showing the Marital Status of Respondents in

             the Studied Organizations                                                                                         56

Table 4.6 Frequency distribution showing the Educational Background of

             Respondents in the Studied Organizations                                                                56

Table 4.7 Frequency distribution showing the Respondents’ Number of Years

with the Studied Organizations                                                                                  57

Table 4.8 Distribution on the Impact of Employability and Skills of

    Employees on Organizational Performance                                                           57

Table 4.9 Distribution on the Impact of Utilization of Human Capital Resource

                 Capabilities on Organizational Competitiveness                                                              58

Table 4.10 Distribution on the Impact of Leadership Styles and Employment

               Modes on Organizational Effectiveness                                                                              59

Table 4.11 Distribution on the Impact of Work-Life Management on Organizational

                Performance                                                                                                                       60

Table 4.12 Regression analysis showing the Impact of Employability and Skills of

                Employees on Organizational Performance                                                                       61

Table 4.13 Simple regression analysis showing the Impact of Utilization of Human

                 Capital Resource Capabilities on Organizational Competiveness                        62

Table 4.14 Simple regression analysis showing the Impact of Leadership Styles and

                Employment Modes on Organizational Effectiveness                                           63

Table 4.15 Simple regression analysis showing the Impact of Work-Life

               Management on Organizational Performance                                                         64

 

 

 

 


 

CHAPTER 1

INTRODUCTION


1.1   Background to the Study

The complexity and competitiveness of today’s business environment requires that companies continuously raise the bar on their effectiveness. The economic activity of firms in the modern economic environment is becoming more complex due to the increasing globalization and liberalization of markets, changing customer requirements, and ever increasing market competition. Therefore, organizations constantly looking for ways to increase performance and competitiveness. Generally, human resources, as workforce and also as business function, are treated as the highest operating cost that should be minimized and at the same time as a source of higher efficiency.

It is no exaggeration in the assertion that the most significant resource of any organization is often said to be its people. Of course, an organization is nothing but inter-related groups of people whose activities are planned and coordinated to meet organizational objectives. An organization that exists to produce goods and services has a good chance to survive and prosper if it consists of the right people. Organizations encounter several obstacles in meeting their goals and in a similar way, all employees report some problems in their attempts to be productive and efficient in their jobs, and to feel satisfied in their work-lives. The challenge to human resources management is to minimize these obstacles and problems. The organization/management prepares a Human Resource Development Plan to develop their human resources - they proudly call it as “Human Capital” (Ghorbanhosseini, 2014).

The concept of “human capital” has acquired tremendous attention in today`s study. Bontis (1999) defines human capital as representing the human factor in an organization; the combined intelligence, skills and expertise that gives the organization its distinctive character. Armstrong (2006) defines human capital as all human abilities whether innate or acquired attributes, whose value could be enlarged by appropriate development investments. Davenport (1999) observed that human capital consists of intangible that workers provide for their employers. Human capital can also be defined as knowledge, skills, aptitudes and other acquired traits contributing to production (Goode,1959).Skills represent individual capacities contributing to production as an argument in the production function (Bowles, Gintis and Osborne,2001). According to Blundell, Deardean, Meghir and Sianesi (1999), there are two main components of human capital with strong complementarity; early ability (whether acquired or innate) and skills acquired through formal education or training on the job. Human capital differs from other assets because it yields market returns only in proportion to the workers supply of labour (Bundi, 2007).

Employees are very important assets of an organization which when managed together with commitment and employment of other assets of the organization, facilitate to the realization of the organizational objectives. It is through their deliberate efforts other assets like machines can be used to produce the expected products. In other words, no matter how much is invested in technology and other modern assets, the achievement of organizational goals and realization of its objectives, highly depends on the effective utilization of qualified and committed human resource as drivers of other resources (Kisumbe, Sanga, and Kasubi, 2014). Ineffective human resources utilization by various organizations results from inability to organize and sensitize the human resources for achievement of organizational goals. Kruger and Lindahl (2001) assert that utilizing the stock of human capital with higher education can promote organizational effectiveness and economic growth.

Human resources have to be developed effectively and efficiently, to enhance and harness other resources for the actualization of organizational goals. In examining the concept of human resource utilization, Udo (1992) admits that it has to do with a sequence in the relationships between development and utilization of human resources which emphasizes their relevance to the manpower requirements and their actual deployment in their appropriate mix to meet national needs. Egungwu (1992) adds that it is a gradual and systematized continuous job assignment during the working life in order to guarantee increased performance abilities.

In further explanation, Egbo and Okeke (2009) state that the target for human resource utilization involves optimal use of skills, will-power and knowledge or human capital of the employees without recourse to parochial considerations of race, origin, sex; age and other psychographic and demographic yardstick in pursuit of organizational objectives through efficient use of other factors services, including land and capital. Hence, human resources utilization involves effective use of personnel in pursuit of efficiently designed goals through objective roles assignment based on appraisal outcomes, skills and knowledge garnered from training and development programmes as well as experiences or employees’ competences (Ozioko, 2012).

Ezeani (2002) sees this as involving maximum use of competent staff, and their deployment at strategic places and the creation of enabling environment for the practice of acquired skills.

Ajileye (1992) rightly observed that where trainees are not deployed to perform for which they are trained, it results in a huge financial loss to the organization. Apart from this, the employee looses confidence in himself, his organization and the undertaken. Smith and Gintzberg (1967) have observed that the commonly observed error in both developed and developing nations is the tendency to often shift attention exclusively to matters like human resource supply with very little considering given to its development and utilization. They maintained that there is a close relationship between human resource development and its corresponding utilization since “a trained person who is not used or who is poorly utilized is not really an asset”. In fact the extent to which the full rewards of training are realized depends on a planned and systematic approach which integrates a clear-cut plan for utilizing trained personnel. According to Harbison (1973) human resource utilization is a factor to the attainment of corporate objectives. He argued that appropriate and maximum utilization of human resources in production activities are the essential factors that can increase organizational effectiveness.

Organizational effectiveness is a new concept that has attracted the attention of specialists with the transition to a new organizational context characterized by change, competitiveness and high performance (Ioana, 2013). The literature provides various definitions of the concept. Thibodeaux and Favilla (1996) have defined organizational effectiveness as the extent to which an organization, by the use of certain resources, fulfils its objectives without depleting its resources and without placing undue strain on its members and/or society. Another point of view indicates that effectiveness evaluates the performance of business units’ efforts with respect to strategic goals, and serves as a critical component in the management planning and control processes (Griffin, 1987). Effectiveness plays an important role in accelerating organizational development (Bulent and Adnan, 2009), and according to Grawhich and Barber (2009) it is the net satisfaction of all constituents in the process of gathering and transforming inputs into output in an efficient manner.

Human capital is a key component of the market value in any organization (Radka, 2008). It is a source of added value, an estimate which is the basis of planning in management. Therefore management needs to focus on planning, recruiting, stabilizing, developing and optimal exploitation of human resources. Despite the efforts made by firms in human capital investment through training with the intention of improving employees’ performance, the problem of employee poor performance still exist this may be due to various factors such as shortage of staffs to perform the required task within a given period of time and failure to utilize the knowledge obtained during the training (Radka, 2008).

There is always a managerial need to examine the impact of human resources on organizational effectiveness. Examining human resource effectiveness is a means for tracking the achievement of strategic objectives in human resource management and for evaluating of work with human resources (Radka, 2008). The results of measuring such effectiveness are important for presetting targets, uncovering and exploiting the reserves, comparing suitability of variants for achieving of set target, determining the magnitude and causes of deviations and proposing a way of removing them. It is not possible to manage without the measuring.

Nowadays the measuring of the human resource effectiveness is thought to be like a way to increase performance of employees and efficiency of the organization. The effective human resource system should be the base for implementation of organizational strategy to achieve the targets.

Therefore, this study aimed at assessing the impact of human capital utilization on organizational effectiveness using PZ Cussons PLC Aba and Nigerian Breweries Plc, Aba, Abia State as the case study.


1.2   Statement of the Problem

Organization exists for the purpose of rendering some services. For the organization to meet its objectives, people are employed in the organization in order to help the organization meet its objectives. The manpower challenge for Nigerian organizations is not finding the people, it is rather finding the people with the right type of skill at the right time and in the right places. It is commonplace to find specialized talent in wrong kinds of activity and highly capable people in fields, which offers little challenge or incentive. This situation creates constraints, which sap labour morals, erode productivity and lead to rapid turnover.

Thus the issue of manpower and its utilization becomes germane in an effort to improve efficiency in service delivery or performance. In Nigerian organizations, human resources are generally under-tapped, under-utilized and therefore fall short of its anticipated contributions to the realization of organizational goals. It is common among organizations to witness poor or improper utilization of human capital resource capabilities which ultimately affects organizational competiveness.

Also common in today’s organizational life is the problem of work-life management balance which has continued to affect negatively on productivity and employee performance. On average, human performance is not consistent. It is more likely to diverse every single moment. In recent years, the trend for executing work and family life policies in organizations has gained tremendous importance. The policies such as increased work hours, overtime work schedules, compressed working weeks, inflexible starting time, absence of leave for family related issues, and lack of employee assistance programs can bring down the morale of employees and their productivity by increasing turnover rate and absenteeism. For example, increased work hours are believed to be disastrous to employees and will further hinder employees in attaining a healthy work-life balance.

Most leadership styles in organizations have negative effect on employees’ commitment which ultimately affects their performance and overall effectiveness of the organizations. Similarly, human resources selections are equally affected by the type of managerial style that such organization applies. 

In addition, there is lack of qualified instructors and consultants to undertake capacity building courses, lack of essential human resource development tools, and the lack of effective communication within the organization which makes it impossible for most employees to know about their roles and tasks expected of them. Pertinent to the above the study sought to examine the impact of human capital utilization on organizational effectiveness in manufacturing firms in Abia State.

1.3 Objectives of the Study

The general objective of the study was to examine the impact of human capital utilization on organizational effectiveness (A study of selected manufacturing firms in Abia state).

The specific aims were to;

      i.         determine the impact of employability and skills of employees on organizational performance

     ii.         ascertain the impact of utilization of human capital resource capabilities on organizational competiveness

   iii.         determine the impact of leadership styles and employment modes on organizational effectiveness

   iv.         examine the impact of work-life management on organizational performance

1.4       Research Questions

The following research questions guided the study

      i.         What is the impact of employability and skills of employees on organizational performance?

     ii.         What is the impact of utilization of human capital resource capabilities on organizational competiveness?

   iii.         What is the impact of leadership styles and employment modes on organizational effectiveness?

   iv.         What is the impact of work-life management on organizational performance?

1.5       Research Hypotheses

The following hypotheses were formulated and tested in the study          

Ho1: Employability and skills of employees do not have any significant impact on organizational performance

Ho2: Utilization of human capital resource capabilities does not have any significant impact on organizational competiveness

Ho3: Leadership styles and employment modes do not have any significant impact on organizational effectiveness

Ho4: Work-life management does not have any significant impact on organizational performance.

1.6   Significance of the Study          

This research work would be of immense benefit to the society in general and to both private and public manufacturing organizations. Moreso, it would have both theoretical and practical use to scholars and will contribute to the existing body of knowledge in the field of human resource management. Summarily, the importance of this study will include the following;

Manufacturing Organizations: The result of this study will form bedrock for manufacturing organizations to effectively manipulate their hiring process in order to secure the services of the best and ideal personnel suited for each job position. When such skilled and proficient employees are engaged, their performance level becomes significant in the organization.

Human Resource Department: The study result will make transparent some common errors made by many human resource departments/manufacturing organizations in their processes of recruitment, training, motivation, performance appraisal, compensation, etc.

Researchers: The findings of this study will add to the body of knowledge and form part of future learning materials. Future researchers with interests in Human resource management will find the findings useful since it will recommend further areas of study to enhance more knowledge on human resource management particularly as it affects manufacturing organizations in general.

1.7   Scope of the Study

The general scope of the study was to investigate the Impact of Human Capital Utilization on Organizational Effectiveness (A study of selected manufacturing firms in Abia state). The geographical scope of the study was limited to manufacturing firms in Abia state, while PZ Cussons PLC Aba and Nigerian Breweries Aba were selected and used as the case study. The study focused mainly on the utilization of human capital resource capabilities in the studied organizations as well as areas of leadership styles and employment modes, and work-life management, and how they impact on organizational competiveness, effectiveness, and overall performance.

 

1.8   Profiles of the Firms under Study

1.8.1 P.Z Cussons Nigeria Plc, Aba

PZ Cussons Plc. Aba is located along Margaret Avenue, Eziama Aba, Aba North LGA in Abia State. It is engaged in the manufacturing and distribution of soaps, detergents, toiletries, pharmaceuticals, electrical goods, edible oils and nutritional products. The segments of the Company are toiletries and household; food and nutrition, and electrical goods. The geographical segments of the Company are Africa, Asia and Europe. On January 29, 2008, the Company completed the acquisition of The Sanctuary Spa Holdings Limited and its wholly owned subsidiaries.

The Company’s Headquarters is at PZ Cussons Nigeria Plc. 45/47 Town Planning Way Ilupeju Industrial Estate PMB 21132 Ikeja Lagos Nigeria; Lagos; Lagos PZ Cussons Plc. is a leading manufacturer and distributor of a variety of products, especially soaps and other personal care items, including shampoo, baby power, and the like. These are marketed under PZ Cussons flagship imperial Leather brand and others, including Ordinary Source and Cares. The company also manufactures refrigerators and other white goods, including freezers and air conditioners; detergents and cleaners; feminine hygiene products; olive oil; packaging materials; and even pharmaceuticals. In 2003, PZ Cussons formed a joint venture with Ireland’s Glanbia to supply evaporated milk and milk powder in Nigeria. The company also acquired U.K. hair brand Charles Worthington in Listed on the London Stock Exchange, the Zochonis family, which includes Chairman A. J. Green controls as much as 80 percent of the company’s stock. 2005.

Although based in Manchester, PZ Cussons has long been controlled by the founding Zochonis family, from Greece, and has carved a niche for itself by focusing on various markets in Africa, especially Nigeria, Ghana, Cameroon, and East Africa. Known as Paterson Zochonis until its name change in 2002, the company’s history reached all the way back to the late 19th century. When it was founded as a trading post, called West African Merchants, in Sierra Leone by two partners, George Paterson, originally from England, and George Zochonis, from Greece, Paterson and Zochonis started out by shipping palm oil and other produce, such as palm kernels, cocoa, groundnuts, and seed cottons, as well as animal hides and skins, to the United Kingdom, and bringing back goods from England, such as cloth from

Manchester. The business proved strong, and in 1884 Paterson and Zochonis incorporated the company as Paterson Zochonis (PZ). PZ gradually expanded its range of goods, establishing a degree of expertise in what was considered a difficult trading market. This expertise enabled the company to being expanding into other African markets and, most important, into Nigeria. PZ set up its Nigeria subsidiary in Lagos in 1899. Like its Sierra Leone brand, the

Nigeria subsidiary at first operated as a trading merchant. George Paterson died in 1934, leaving George Zochonis in control of the company. The Zochonis family was by then already highly involved in the company’s expansion, and company traditions become the placing of members of the extended Zochonis family in key management positions. Indeed, by the beginning of the 21st century, the Zochonis family was said to represent about half of the group’s total payroll.

1.8.2 Nigerian Breweries Plc

The history of Nigerian Breweries is strongly linked to the formal British colonialization of Nigeria in 1851. The process of the establishment of the company started with the formation of the Royal Niger Company after it was granted a royal charter status in 1886. In 1877 the British imperialist, George Goldie Taubman, joined the four largest British trading companies into the United African company (UAC).The granting of Royal Charter to the UAC company enjoys commercial monopoly but gave them unfettered access to invest and administer the whole Niger territory, ie Northern Nigeria and the lower Niger valley, (Ogunbiyi, 2007). After the end of World War I, in 1920 Lever Brother, a subsidiary of Unilever conglomerate, acquired the shares of the Royal Niger Company.

In 1921 many of the British trading houses came together to form the African and Eastern Trade corporation while the French trading houses came together under the name, Compagnie du Niger Francais (Ogunbiyi, 2007). On the 1st May, 1929 these two organizations combined forces under the former name United African Company (UAC), with a share capital of £15.7 million. The company became the dominant trading company in the region at the time (Ogunbiyi, 2007). One of the European companies which have been doing business in the region, a Dutch brewing company, Heineken was exporting some 6,000 hectolitres of beer to Nigeria and Ghana through UAC. During the period of the Second World War the beer consumption in Nigeria total 70,000 crates of four-dozen 65cl bottles. This is about 1,458 hectolitres in one year (Ogunbiyi, 2007).

After the War the demand exceeded the supply by 1947, Dutch export to Africa reached 76,614 hectolitres as against 25,000 hectolitres exported before the war. The increase in beer consumption rate was as a result of the presence of allied forces in Africa and the changing pattern of consumption behaviour the returning African soldiers who served during the war came back with. In other to meet the demand for beer Heineken entered an agreement with Unilever and so on 16th November 1946, UAC and Heineken signed a contract for the incorporation of Nigerian Brewery limited in the capital city of Lagos with a share capital of £ 300,000 (Ogunbiyi, 2007).

The board that established the agreement of the company gave UAC the responsibility for commercial and administrative management of the company while Heineken had technical control. Nathan, a Swiss company was saddled with the responsibility of providing technical brewing installations. On 2nd June 1949, the first Nigeria brewed bottle of beer rolled off the bottling line from the Iganmu plant (Ogunbiyi, 2007). The beer was called Star beer. By 1954 the company reached the first one million carton unit capturing 20% of the beer market in Nigeria. The Aba Brewery was commissioned in 1957 with an initial capacity of 500,000HL, is the second oldest brewery of Nigerian brewery PLC (nibrenews, 2007). In the face of the growing brewery business in Nigeria the management of the company decided to approach growth expansion and diversification convinced that increased production in the beverage industry a decision was taken to build a third brewery in the Northern city of kaduna in 1964. Heineken brand was first produced in 1955. The Civil War period marked a time of huge challenge to the brewery but for the adaptive leadership of the company it was able to surmount the challenges of the war era stronger.

Immediately after the civil war the Guilder brand was launched in 1970. After the brand was introduced into the Nigerian market, the expansion of the existing breweries in Lagos, Aba and Kaduna followed. Also in 1976 a new brand of soft drink was introduced. The brand was called Maltina. As the pressure on the existing breweries increased because of increase in demand the Ibadan brewery was commissioned in 1982. on the 24th October 2003 the Ama brewery was commissioned in “Ameke Ngwoo” a community in Udi Local Government Area of Enugu State, with a production capacity of 3 million hectoliters per annum and at the cost of N 40 Billion (nibrenews,2003),the Ama Brewery was to produce fifty percent of the company’s total production.

1.9   Operational Definition of Terms

The following terms were defined as used in this study:

Human Capital

Human capital is a collection of resources comprising of the knowledge, talents, skills, abilities, experience, intelligence, training, judgment, and wisdom possessed individually and collectively by individuals in a population. These resources are the total capacity of the people that represents a form of wealth which can be directed to accomplish the goals of the nation or state or a portion thereof.

Organizational Effectiveness: Is the ratio of output or production capacity of the workers in an organization. It is the relationship between the amount of one or more inputs and the amount of outputs from a clearly identified process.

Human Capital Utilization: A sequence in the relationships between development and utilization of human resources which emphasizes their relevance to the manpower requirements and their actual deployment in their appropriate mix to meet national needs. It is a gradual and systematized continuous job assignment during the working life in order to guarantee increased performance abilities.

Employment modes: refer to the mechanisms used by firms to gain needed human capital, and include internal development (staffing, then training and promotion), external acquisition (staffing readily productive human capital), contracting (temporary workers), and alliances.

Employability: refers to your ability to gain initial employment, maintain, employment, and obtain new employment if required. It is also the ability of a graduate to get satisfying job, stating that job acquisition should be prioritized over preparedness for employment to avoid pseudo measure of individual employability.

Skill: refers to an ability and capacity acquired through deliberate, systematic, and sustained effort to smoothly and adaptively carryout complex activities or job functions involving ideas (cognitive skills), things (technical skills), and/or people (interpersonal skills).

Leadership style: is the manner and approach of providing direction, implementing plans, and motivating people. As seen by employees, it includes the total pattern of explicit and implicit actions performed by their leader.

Work-life management: is the term used to describe the balance that an individual needs between time allocated for work and other aspects of life. Areas of life other than work-life can be, but not limited to personal interests, family and social or leisure activities.

 

 

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