IMPACT OF HUMAN RESOURCE INFORMATION SYSTEM ON ORGANIZATIONAL EFFICIENCY IN THE FINTECH SECTOR IN NIGERIA.
ABSTRACT
This study examined the relationship between the impact of human resource information system on organizational efficiency in the Fintech sector in Nigeria. Skill-based training, selective hiring, Alternative work arrangement, against Organisational Efficiency. The study employed cross-sectional research design and primary source of data collection with the aid of questionnaire. The questionnaires were distributed to the employees of eight Fintech sectors in Lagos. Data was analyzed by use of descriptive statistics coupled with inferential statistics including Correlation, ANOVA and Multiple Regression. To test the formulated hypotheses, all tests and analysis were conducted at 5% level of significance using the STATA version 13. Findings revealed that the selected human resource planning, skill-based training, selective hiring, alternative work arrangement, fair compensation, performance appraisal and decentralization/autonomy have a positive and significant effect on organisational efficiency. In general, HR and performance management systems was found to help employees meet their set targets, provide a measure of organisational efficiency as well as increase employee competency as well as organizational productivity. The research concluded that human resource can enhance organizational efficiency.The study therefore recommended that Fintech should devise policies that tackle human resource malpractices especially in recruitment and selection, trainings and development, compensation, performance appraisal and decentralization. In addition, the human resource personnel in the Fintech industry should conduct annual performance appraisals, give specific and accurate feedback after every appraisal process and institute corrective measures after every appraisal.
TABLE OF CONTENTS
TITLE PAGE - ii
DECLARATION - iii
CERTIFICATION -
DEDICATION - v
ACKNOWLEDGEMENTS - vi
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study - - 1
1.2 Statement of Problem - - 8
1.3 Objective of the Study - 10
1.4 Research Questions- - - - 11
1.5 Statement of the Hypothesis 12
1.6 Significance of Study - 13
1.7 Scope of the Study - - 14
1.8 Definition of Key Terms - 15
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction - - - - 18
2.2 Conceptual Framework - - 33
2.3 Theoretical Framework - - 45
2.4 Empirical Review - - - 50
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design -- 56
3.2 Population of the Study - 57
3.3 Sample Size - -- 57
3.4Sampling Technique - 58
3.5 Method of Data Collection - 58
3.6 Technique for Data Analysis - 59
3.7 Model Specification and Variable Definition -59
3.8 Measurement of Variables - - 59
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
4.1 Presentation of Data - -- 60
4.2 Discussion of Findings - - 79
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary - - 80
5.2 Conclusion - -- 80
5.3 Recommendations - 93
References - - 95
Appendix - - 98
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
World over, organizational performance has been a concern of every firm whether public or private and thus its importance cannot be overemphasized. Though, traditionally, the importance of performance was viewed as a concern for the private sector only, there has been a notable change to this view over the last couple of decades, where both private and public sectors embrace and value performance alike (Tursunbayeva, 2019). One of the key objectives of any organization is to optimize its performance, which is believed to translate into better profits and satisfied customers for the profit-making organizations which are either product or service oriented (Sharma & Dhar, 2015). Non-profit organizations also endeavor to enhance employee performance to enable them deliver their mandate. To perform, all these organizations, whether profit or non-profit making, need to develop a strong internal workforce to address various challenges that they frequently face as they strive to improve employee performance. The importance placed on organizational performance and the new strategic role of human resources has changed the way human capital is viewed in many organizations. Due to cost and nature of human capital, in the traditional approach, little attention was paid to it. However, this view has changed due to the realization among researchers and practitioners of its importance at assisting the organizations to achieve competitive advantage (Marina & Giner, 2022).
In an age of complex supply chains and globalization, creating an effective work environment to harness the power of diversity is a critical ingredient for organizational success. Modern Innovative Human Resource management (HRP) Practices emphasize developing employees through skill-based training, HR technology, and the effective hiring process of employees to achieve organizational effectiveness. In the modern business environment, human resources (HR) is an indispensable asset for organizational success and effectiveness; as employees are the crust of every organization. Human resource is people who offer their talents, creativity, knowledge, skills, and other capabilities to organizations. It is regarded as the scarcest, crucial, most valued asset, and productive resource that creates the largest and longest-lasting benefits for an organization (Igweh, 2019). This valued asset has the potential to increase the value of the organization more than other resources. Significant scholarly articles have been published about Human Resource (HR) best practices and all agree that for it to qualify as a best practice, it must create a win-win situation for the employer and employee.
Organizations endeavoring to enhance performance have dependably assessed the choices accessible for them of which their human resources are an awesome piece of. It is constantly vital to look at the nature, structure and efficacy of human resources by having a very much characterized database that will give organizations the edge when they look for advantage in such zones. Human Resource is pondered to be organizations' most valuable asset. Human Resource problems have been real worry for managers at all levels, since they every single meet objective through endeavors of others, which require the compelling and effective management of individuals (Cogin, & Lee, 2016; Kumar & Ganesan, 2018; Cascio, 2018; Banfield, Kay & Royles, 2018).
Berber & Slavić (2016) and Netemeyer, Maxham and Lichtenstein (2015) in their field of study, opined that contented and satisfied employees is a pre-condition for satisfied customers. This suggests that businesses should confirm that its workers are skilled and knowledgeable enough to carry out tasks that meet up with required standards. The field of human resources management can be viewed as having embraced or encountered numerous innovations in information and technology. Nowadays, the introduction of Human Resources Information System (HRIS) in organizations has made employee to be efficient and effective in achieving organizational goals and objectives (Banfield, Kay &Royles, 2018; Kumar, Mehra, Inder, & Sharma, 2016; Cogin, Ng & Lee, 2016; Mohamadi, Ghazanfari & Azizi, 2015). The appropriation of human resource information system in organizations have indicated awesome advantages, however there are setbacks that are experienced amid execution. There are sure factors that cause the requirement for human resource information system in associations: huge and complex organizations keep an eye on worker expansive number of representatives in this way embracing HRIS will help them to handle issues that may emerge. In some cases, organizations are geologically scattered consequently they require HRIS to empower them to oversee information from numerous areas (Cascio, 2018; Evanschitzky, Groening, Mittal & Wunderlich, 2017; Grandey, Goldberg & Pugh, 2017). This anticipates wrong data and additional costs that may emerge from overseeing HR. Another region where HRIS is required is in the area of remuneration and compensation. There are diverse complexities that are related with remuneration administration frameworks as basic leadership is a basic movement in the association.
In the present context of globalization, organizations and its environs have become increasingly complex. Managers in these organizations face growing difficulties in coping with workforces that may be spread across various countries, cultures, and political systems. Given such trends, manual HR systems management is completely inadequate (Kidwell, Eddleston & Kellermanns, 2018; Chelladurai & Kerwin, 2017; Kajonius, Kazemi, &Tengblad, 2016). To increase the effectiveness of HRM, organizations are becoming more and more dependent on HRIS. At the functional level, HRIS can keep track of employees', applicants', and contingent workers' qualifications, demographics, performance evaluation, professional development, payroll, recruitment, and retention (Chelladurai & Kerwin, 2017; Raykov, 2015; Adelekan, 2016). Part of the discovery in the area of human resource information system is that as the complexity of the analyses and tasks of HR personnel increases, the need for more powerful computing capabilities increases commensurately. Also as human capital plays a larger role in competitive advantage, functional managers expect the HRIS to provide functionality to meet their unit's goals and objectives (Shin & Lee, 2016). However, the professional standing of human resources experts has been improved by the specific use of HRIS for strategic partnering this is not as pronounced as that experienced by those from other professions (Hojat, Kowitt, Doria, & Gonnella, 2018; Evanschitzky, Groening, Mittal & Wunderlich, 2017). As the non-strategic utilization of HRIS, paying little respect to organization size, expanded significantly, it was found that HRIS strengthen the employees' certainty since they need to approve of techniques congruity; that somewhat impacts the individual and aggregate execution at work, the management; that key mix, determining and arranging and HR analysis (Kidwell, Eddleston & Kellermanns, 2018; Rukh, Choudhary, and Abbasi, 2015: Adelekan, 2016). Nourishment of HRIS entails an effectual management of the information systems. A substantial part of this is the employee information system. The employee information system is a set of human resource profile and the employee skills inventory that gives position control system to recognize each position in the organization, the job title within which the position is categorized, and the employee currently assigned to the position (Raykov, 2015; Kajonius, Kazemi, & Tengblad, 2016). The more organizations become more complex and their information management needs increase, the need for relevant information systems also increases dramatically (Talley, Kocum, Schlegel, Molix, & Bettencourt, 2018; Adelekan, 2016). With the growing significance of human resource management and growing size of the organizations, maintenance of employee related data and generating reports are very important (Netemeyer et al., 2015: Adelekan, 2016). It is against this backdrop that this study seeks to examine the impact of human resource information system on organizational efficiency in the Fintech sector in Nigeria.
1.2 Statement of the Problem
Human resource is one of the most critical assets in a firm; therefore, organizations are investing in the enhancing competitiveness of this asset. Unlike the traditional approach that assessed the performance of the firm financially, modern techniques also assess the performance based on human resource practices and organisational performance (Singh et al., 2015; Chashmi & Fadaee, 2016). In organizations facing increasing global competition and changes in their environment, Human Resource Development (HRD) is more relevant than before. Such external pressures ask for employees that have the skills, knowledge and ability to perform optimally. The facilitate that, organizations may need to apply innovative Human Resource Practices. By using HR policies and practices, organizations aim at ensuring the autonomy and skill enhancement of employees to enable them perform to perform well in changing circumstance (Agarwala, 2013).
In light of this, organizations not only fail to realize their human potential but also discourage their employees with their subjective and unsystematic decisions, derived from either unsystematic data. However, the need to investigate the effect of organizational culture on employee satisfaction as it relates to organizations ‘performance is highly important and urgent. Most organizations lack active and effective computer based human resource management systems (HRMS) for various functionalities explicitly maintaining attendance by computerized methods and generating reports for top level management and middle level management in decision making. It was discovered that companies do not give the sufficient importance for frameworks as regards the human resources which they work in, and this leads to shortage in information systems as providing information related to these resources from the particular aspect which could contribute to the increase in employees ‘performance. Base on this, this is a process that may take a team of individuals anywhere almost ten weeks to three years to accomplish. In the absence of a proper flow of information, many human resource decisions are taken in a subjective and ad hoc manner. The system can therefore not be utilized to satisfy organization's instant needs. The organization has to be patient for the whole duration, up to a maximum of three years, to start using the system. It remains unclear whether the same human resources also have a positive effect on firm performance in sustainable development, which is also considered an important firm strategy as regards the organizational identity orientation. Hence, this study seek to explore the impact of human resource information system on organizational efficiency in the Fintech sector in Nigeria.
1.4 Purpose of the Study
The main aim of this study is to examine the impact of human resource information system on organizational efficiency in the Fintech sector in Nigeria. Specific objectives includes:
1. Assess the relationship between skill-based training of employees and organisational efficiency.
2. Determine the impact of an alternative work arrangement on organization efficiency.
3. Examine the effect of selective hiring on employees’ performance.
1.3 Research Question
1. How does skill-based training of employees affect organisational efficiency?
2. Does an alternative work arrangement have any effect on the employees’ efficiency?
3. Does selective hiring have any effect on employees’ performance?
1.4 Hypotheses of the Study
The following research hypotheses were formulated and expressed in their null forms
HO 1: Skilled based training has no significant relationship with organisational efficiency.
HO 2: Alternative work arrangement has no significant relationship with organizational efficiency.
H03: Selective hiring has no significant effect on employees’ performance.
1.5 Scope of the Study
This study determine to examine the impact of human resource information system on organizational efficiency. This study will be carried out in the Fintech sector in Nigeria.
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