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
1.2 Statement
of the Problem
1.4 Purpose
of the Study
1.3 Research
Question
1.4 Hypotheses
of the Study
1.5 Scope
of the Study
CHAPTER
TWO
REVIEW
OF RELATED LITERATURE
2.1 Conceptual
Review
2.1.1 Human
Resource (HR)
2.1.2 Nature
of HR and Practices
2.1.2.1 Incentives
2.1.2.2 Skill-based
Employee Training
2.1.2.3 Job
Security
2.1.2.4 Self-Managed
Teams (Autonomy) & Decentralization
2.1.2.5 Fair
Compensation
2.1.2.6 Selective
Hiring (Recruitment)
2.1.2.7 Performance
Appraisal
2.1.2.8 Alternative
Work Arrangement
2.1.3 Approaches
to HR in Workplaces
2.1.4 HR
Category
2.1.5 Human
Resource Implementation
2.1.6 Performance
2.1.7 Organizational Efficiency
2.3 Theoretical
Framework
2.3.1 Ability-Motivation-Opportunity (AMO)
2.3.2 Expectancy Theory Of Performance Management
2.3.3 Technology – Organization – Environment (TOE) Theory
2.3.4 Resource-Based
View (RBV) Theory
2.4 Empirical
Literature Review
2.4.1 Skill-Based Training and Employees Performance
2.4.3 Fair Compensation and Organisational Efficiency
2.5 Literature
Gaps
CHAPTER
THREE
Research
Method
3.1 Research
Design
3.2 Population
of the Study
3.3 Sample and Sampling Technique
3.4 Instrument
of Data Collection
3.5 Validity
of Research Instrument
3.6 Reliability
of Research Instrument
3.7 Model
Specification
3.8 Method
of Data Analysis
CHAPTER
FOUR
DATA
PRESENTATION, ANALYSIS AND DISCUSSION
4.1 Introduction
4.2 Description of the Sample
4.2.1 Respondents’
Socio-Demographic Profile
4.3. Responses
to Research Question
4.3.1 Research
Question One: Skill-Based Training and Organizational Efficiency
4.3.2. Research
Question Two: Alternative work arrangement and
employees’ Efficiency.
4.3.3 Research
Question Three: Selective Hiring Practices and
Organizational Efficiency
4.3.1 Heteroskedasticity
4.3.2 Ramsey
RESET test
4.3.3 VIF
Test
4.5 Discussion
of Results
4.5.1 Skilled based training and organizational efficiency.
4.5.3: Selective
hiring and employees’ efficiency.
CHAPTER
FIVE
SUMMARY
OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
of Findings
5.2 Conclusion
5.3 Recommendations
5.4 Contributions to
Knowledge
REFERENCES
APPENDIX: QUESTIONNAIRE
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
HO1: Skilled
based training has no significant relationship with organisational efficiency.
HO2:
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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