ABSTRACT
The main purpose of this study is
to know the impact of effective human capital management on organizational
Growth. Every organization, no matter the nature and activities being
undertaken by it, will not exist. This time, the other factors of production like
materials, capital and machines will be meaningless if there are no human
beings to harness them. The availability of manpower is not just the issue but
its effective and efficient manpower on the organization enhance the need for
human capital management. Therefore, this study has tried to unfold the basic
functions of human capital management and its impact and effectiveness of
organization growth. With references to impact effective human capital
management of organizational growth, the impact of effectiveness, extent had
quality of human capital management has been carried out at Star Paper Mill
Limited Aba, Abia State as a case study. In view of this, the researcher
conducted a detailed survey on this subject such as questionnaire, oral
interviews and closely looked at the views of other Authors was also an immense
help in this project. The result of this study was presented and analyzed using
table of the study, recommendations and conclusion were made, and the APA style
was used in the bibliography.
TABLE
OF CONTENTS
Title page i
Approval ii
Dedication iii
Acknowledgements iv
Table of Contents v
Abstract viii
CHAPTER
1
INTRODUCTION
1.1 Background of the study 1
1.2 Statement of the problem 18
1.3 Purpose of the study 18
1.4 Significance of the study 19
1.5 Research question 20
1.6 Scope/delimitation of the study 20
1.7 Definition of terms 21
CHAPTER
2
LITERATURE
REVIEW
2.1
Conceptual Framework 24
2.2. Theoretical
Framework 35
2.3 Empirical Review 44
CHAPTER
3
RESEARCH
METHODOLOGY
3.1
Design of the study 47
3.2 Area of the study 48
3.3 Population
of the study 49
3.4 Sample
of the study 49
3.5
Instrument for data collection 51
3.6 Validation
of the instrument 51
3.7
Distribution/Retrieval of instrument 52
3.8
Method of data Analysis 53
CHAPTER
4
PRESENTATION
OF DATA AND ANALYSIS
4.1 Analysis of the data 54
CHAPTER
5
SUMMARY
OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1
Summary of the finding 65
5.2
Conclusion 66
5.3
Recommendations 67
5.4
Limitations of the study 69
References 70
Appendix A 72
Appendix B 73
CHAPTER
1
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Human capital management is that aspect
of management that is concerned with all aspect of managing the human resources
of an organization. Human Capital management involves the management of human
capital at work irrespective of the type of organization in question, its
products, size or structure, philosophy of its management must procure human
resources of it to achieve its stated objectives. Human capital management practices
spreads all the aspect of co-operate and organization activities. It therefore
becomes the responsibility of all those who manage people in the organization
as well as being a description of work of those who are employed as a human
capital specialist. More especially, human capital management involves determining
the organization and the use of human resources, recruiting and selecting the
best available employees acting as liaison between the union and the government
organization and handling other matters relating to employees will being.
However, many organizations have paid
little or no interest in the effective human capital management which has
resulted to how productivity high rate of employee interest and other ugly
social menace, thereby hindering the organization growth. The growth of any organization
lies solely on the growth and development of his employee. In a case where human
capital management is not well practiced in any organization the growth of the
employees will not be achieved and the result is that a stunted growth or
declining profit will be recorded.
A satisfied work force is the cove
strength of an organization and to maintain a satisfied work force the organization
must be organized. For human resources that have been acclaimed, it must be
vital and must be a useful resource among the organization resources. Any organization
that must achieve its objectives must first develop its human factors or
resources.
But, it is ironical that many
organizations have no plan for growing their human resources. But budget of
millions of naira and even Dollars have been spent in the growth of many organization.
Billions is been spent on infrastructural capacity building, information
communication, technology, but little or none is budgeted on the human
resources that will control the infrastructural and the information
communication technology. This remains the core reason why the infrastructure
and the technologies acquired is not performing the purpose for which they were
designed to do.
Comparing the practice of human capital
management in both public and private sector, they are nothing to write home
about, no structure of policy frame work can be identified, designed, grow and
develop human resources in the center of the economy. This has been observed to
be the main causes of the fall in the standard and quality of output in the
economy and lack of compatibility strength with their foreign counterpart.
Growth and productivity is the only
solution to persistence rise in the price of commodities in the economy
together with the infrastructural and technological delay. This problem should
be avoided by ensuring effective human capital management practice in the organization.
Organizations spend more time needed on
infrastructural capital building and information communication technology
believing it as the sure way to achieve the organizational growth objective.
Infrastructure collapse upon infrastructure and technology failure is no longer
news but a normal occurrence in the economy of Nigeria. Allocation of resource
from one end to other is now the order of the day with no man to be held accountable
for a crime. The entire shareholder in the industries running from pillar to
pole asking what the problem is? The question that normally arises is “does
effective human capital management practice leads to organization growth”.
Like every aspect of human life, human
capital management as we have seen did not start today, it has been since
decades ago and it presently functions in every organization.
Although
the modern theory of human capital has been developed over the past half
century. The concept of human capital has been traced at least far back as the
17th century. Around 1691, Sir William Petty placed a value on
labourers, estimated the value of human capital to demonstrate the power of
England and estimated the cost of life lost in wars and other deaths.
In
1853, William Farr proposed that the present value of a person is not future
earnings, which he defined as earnings
less living expenses, represented wealth in the same way as did physical
properly and should be similarly taxed.
In
working at the evolution of human capital management W.F Casio (1989:38), noted
human capital management is a combination of a lot of other discipline and
listed that it emerges from none related sources. They are as follows;
a)
Rapid
technological changes that increase the specialization of labour associated with
industrial revolution.
b) The emergence of collective bargaining
with constraints established for both Union and employees.
c)
The
scientific management movement.
d) Every industrial psychology.
e)
The
government human capital practices growing out if the establishment of the
civil service commission.
SCIENTIFIC
MANAGEMENT: Fredrick
Taylor was concerned with systematic study of management techniques and
procedure. He believes in the philosophy of, “The one best why” of performing
each job to achieve maximum efficiency and productivity. Once labour and
management understands themselves, the conflicts occurs between them will disappear.
HUMAN
RELATION MOVEMENT: Much
of the foundation work of this movement was done by How Throne work plant of
the Western Electric Company in Chicago during the late 1920 and the early 1980.
The research which was headed by Elton Mayor, sought to determine the effect of
Illumination and other condition upon which workers and productivity are based.
The human relation movement therefore grew out of the reaction against the
impression ability of the scientific management school of thought. Human relation
movement therefore advocate that workers are human beings and not just ordinary
machines, that proper treatment of work force and also function is relatively
new in the country as far as the late 1950. The countries wages employment in
Nigeria like in many other countries such as Africa was a novelty. Economic
activities centered on the family where there was no need for external
recruitment of labour. But the advent of Europeans and the attainment of commercial
activities gradually altered this picture; wage employment becomes the order of
the day. It is through wages employment that human capital function evolved in
Nigeria today.
MAN
POWER PLANNING: Magginson
(1981:121) defined manpower planning as a process of translating overall organization
activity plans and programs into an effective work force to achieve a special
performance. This definition suggests that there should be plan for them so
that the set goals and objectives can be achieved. It also suggests that
manpower planning is futurist in nature.
According
to Stainer (1991), manpower planning is defined as a strategy for the
acquisition, utilization, improvement and preservation of enterprises in human
resources. Manpower planning aims to maintain the ability and improve the organization
in order to achieve corporate objective, through the development of strategic
and enhance the contribution of manpower at all time in the foreseeable future.
The foregoing points show the fact that manpower is a continuous process and
should be evaluated constantly because there is always a change in the society
and within the organization itself.
Furthermore, Maggison proposed step in
manpower planning and stated that, it operates as two organization level where
range objectives and plans are made and sent to the sound.
STEPS
IN STAFFING PROCESS:-
|
Studying
|
Determining
|
Taking
|
Training
|
Development
|
|
Long
objectives and plan
|
Overall
human resources and requirement
|
Inventing
of present human resources
|
Human
resources required
|
Program
recruiting and selection
|
|
Short-term
goal, plans, programs and budget
|
Work
force required by occupational categories of job skills and demographic characteristic
|
Inventory
by occupational categories of job skill and demographic characteristic
|
Needed
requirement or addition
|
Plan
for developing and upgrading the needs
|
Source:
Human capital management, Human resources approach by I.C Maggison, (p: 121)
Manpower
planning is an important practice in Human capital management and properly
carried out by the organization, the benefits to be derived according to Finnegan
(1973:89) include the following;
1) Determination of recruitment needed.
2) Anticipation of surplus to be collected
by National Wastage rather than redound acnes or dismissal.
3) Indication of further training needed.
4) Provision of a basis for management
development programs.
RECRUITMENT:
Once human needs has been determined
through manpower planning, recruitment settings is very necessary. Recruitment
is part of the staff function which comprises of selection and placement.
It
is the process of filling in existing vacancies in the organization. According
to Edwin Flip (1980:131), recruitment is a process of searching for prospective
employees and stimulating them to apply for job in the organization. This
suggests that recruitment seems to be Positive unlike selection, which is Negative
because it rejects some people. Recruiting is usually based on the job need as
developed by manpower planning. The view is upheld by Gluck (1980:693), when he
pointed out that human resources planning action decision indicates recruiting.
He gave his definition of recruitment as that set of activity which an enterprise
uses to attract job candidates who has the ability and attitude need to help that
enterprises achieve its goal. The method of recruitment by an organization may
be generally classified as formal and informal methods.
Under
formal methods, we have internal and external sources of recruitment. The
Internal source is the means of filling job openings by the organization of the
existing staff through the form of upgrading, promotion, transfer and job
posting. Internal recruitment tends to increase the morale of the employees,
save cost, and time through reducing the hiring and training procedure. It
enhances effectiveness because the organization is aware of the productivity,
efficiency and attitude of its employees.
According
to Gluck’s, source of recruitment include internal job posting and biding
friends of present employee and skill inventing. Examples are as follows;
i.
External
work in agencies of private and public employment and executive search firm.
ii.
Education
institution and high school.
iii.
Vocational
technical college and universities.
iv.
Other
Union Professional association military service and former employee.
In general, each organization
recruitment is based on the peculiar circumstance that its face such as the
number of vacancies existing and general state of the economy. SELECTION: It is a process of costing
individuals who are most likely to succeed on job among those already
recruited. The source of selection process depends on the effectiveness of the manpower
planning and recruitment process. The essence of selection process helps in
making decision as whether an applicant has the personal qualification that
matches the job requirements. It must take into account constraint of time,
money and the depth of available human resources.
Secondly,
in selecting employees, there must be some criteria for measuring the
successful candidate.
Thirdly,
there must be prediction that can be used to estimate whether an applicant can
or will meet the performance expected.
Fourthly,
selection technique must be used to gather and evaluate the performance of the
prospective candidate/employees.
From
the above statement, it could be rightly said that, it is a decision making
under uncertainty where one cannot be perfectly sure of an individual
performance until he gets in with the job. But, selection enables us to a
reasonable extent, how the performance of Individual can turn out to be
accurate or not. Therefore there must be need to other vital concerning
selection making is based. The view of Maggison, especially the second issue he
raised concerning selection in line with Gluck (1981:675), he emphasized that
to make an effective selection, managers must establish criteria to use
selection as a process undergoes various stages.
PLACEMENT:
After the selection process the need to
place the employee properly comes to hand. This is very important because if
the right man is selected in the wrong position to do or carry out a test,
there is the tendency that he will not perform effectively. Therefore if a
worker is to be motivated on production, he must be placed in the right
position in order to carry out his duty well. The view was upheld by Musclemen
and Highed (1969:299), when they asserted that even a right person in the wrong
position could have a disturbing effect on the operation of the business. This
shows that a wrongful placement of employees can cause less productivity not
only to the management but to its workers adversely. It was highlighted by Piggott’s
and Myers, that placement is not the trail action to be taken, it is a decision
step, which consists in matching what the supervisor has reason to think, and
now employee can do with the job demand. It offers among other things, like
opportunity for their work promotional possibilities and pay.
TRAINING
AND DEVELOPMENT: After
the staffing function and employees are placed on the job. Their performance may
not be satisfactory because they could not have being perfect at the time of
being trained. Therefore, in order to develop them so as to fit adequately into
both the job and the organization they need to be trained. Gluck defined
training as a means/system process of training the behavioural goals. This
implies that employees have to acquire certain knowledge, skills and abilities
that will enable them perform effectively in the organization which operates in
a dynamically changing environment.
On
the other hand, development involves preparing employees; development could be looked
at as a process concerned with the improvement and growth of their capabilities
within the organization programs and continues throughout the employees working
years. The ambiguity of a training and development were classified by Stoner
and Freeman (1992:388), when they differentiated training and development program
in their words. Training programs are directed towards maintaining and
improving current job performance. While Development programs seeks to develop
skills for future job.
At
this juncture, one may wish to ask how training of individuals can be established.
Stoner and Freeman gave a possible answer on how managers can use these
procedures to determine the training needs in individuals in the organization.
They include;
a) Performance
Appraisals: Each
employees work is measured against the performance standard or objectives
established for his or her job.
b) Organization
Analysis: The
effectiveness of the organization and its success in meeting its goals lies on
its ability to analyze and determine where differences exist.
c) Analysis
of Job Requirement: The
skill and knowledge specified in the appropriate job description examined and
those employees without necessary skill or knowledge become candidate for a
training program.
d) Survey
of Human Resources: Managers
as well as non-managers are assessed to describe what problem they experience
in their work and what action that is believed to be necessary for solving
them. After these needs are identified, it becomes imperative and the various methods
are open for training purpose. Generally, the methods could be on the job or
off the job training. They include the following;
1) On
The Job Training: Here
the employees are shown how the job is done and they are accounted to do it
under skill trade. Under the supervision of an expert, the trainee spends
relatively a longer period in order to become perfect on the job.
2) Vestibule
Training: These are
procedures machines that are set up in his working areas called Vestibule. The trainee under the
intricacies of the job at his or her own rate of understanding.
3)
Sandwich Training: It becomes practical on the job experience
with normal lecture. An example of this is the long vacation on the improvement
program in higher institution.
1.2
STATEMENT OF THE PROBLEM:-
Nigeria is one of the most popular country in Africa, with
labour force and abounded natural resources. Paradoxically, the nation has witnessed
slow economic growth despite presence of these resources. Noting this phenomenon,
Udabah (1999:69) stated that although as abundance of natural resources might
appear to give a country a head start on development nor does their absence
guarantee backwardness as there exist many developing nations with abundant natural
resources that comma potential value in the world market but still remains
largely undraped. It is clear from this statement that human capital
development is highly required for a meaningful economic growth.
1.3
PURPOSE OF THE STUDY
The main purpose or aims of this research study are stated
below;
a.
To
evaluate the extent of practices of human capital development in the organization.
b. To examine how effective human capital
development practices will affect workers attitudes towards work.
c.
To
evaluate the impact of organizational training problem on the workers
productivity.
1.4
SIGNIFICANCE OF THE STUDY
Both small and large business enterprises in some area have
been abandoned due to their styles of human capital management practices. It is
with this background that the study of the history of human capital management
practices in Star Paper Mill Limited Aba, Abia State was based. This study will
be essential to businessmen and women, lecturers, students, human capital management
etc, because, its reference on this topic is a way forward. It will equally
help to increase the increase the level of awareness and importance of
understanding of human behavior as it relates to increase in the organizations
growth.
1.5
RESEARCH QUESTIONS
In the cause of the research, I wish to provide answer to
the following question:-
1. Does your organization really have
problem human capital management effectively?
1. How does effective human capital
management practice affect workers attitude to work?
2. Does your organization have a training
programme that can improve the skill and knowledge of the workers?
3. Does the management practice adopted by
your organization increase productivity?
1.6 SCOPE/DELIMITATION OF THE STUDY
This project is based on the impacts of
human capital management practices to the growth of organisation. It is only on
how a good development of human capital and human resources of the organization
good as it relates to the growth and development of such firms in quote.
1.7
DEFINITIONS OF TERMS
Some terms used by the researcher perhaps to ease tension
could pose some kind of difficulties to an average manager and their meaning
are as follows:-
1. Impact:
- This is the powerful that the practice
of management has created to the employee, organization, society and the
country in Diaspora.
2. Effectiveness:
- This is a useful result that is wanted
toward the implementation of this practice of human capital management of the organization.
3. Human
Capital Management Practice: - It is defined as the aspect of management is concerned
with the recruitment development, utilization and accommodation of human
resource.
4. Economic
Growth: - This is
simply a sustained increase in the output of goods and services over a period
of time. It serves as the yard stick by which the economic performance of a
country or different nations measured.
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