ABSTRACT
This study examines the impact of human resource management on
manufacturing organization. The rates of firms going extra miles to train their
staff and employees have reduced drastically probably because of high cost of
training or ignorant in the sight of the employers. This as well caused
resistivity on the side of the employees and motivation has been lost. The
broad objective of the study is to ascertain if human resource management
improves organizational performance and also to find out if there is
significant relationship between human resource management and organizational
commitment of manufacturing industries. The primary source of data collection
was used as chi-square statistical tool was used to test the stated hypotheses.
The findings revealed that human resource management improves organizational
performance and that there is significant relationship between human resource
management and organizational commitment of manufacturing industries. The study
concludes that compensation of the employee’s play an important role because it
influences employee decisions to stay on with an organization and compensation
should competitive to what other employers are providing, thus affecting
organizational financial performance. The study recommends among others that the manufacturing firms should motivate their employees
through performance appraisal because it has an influence on decision-making
and employees should be flexible because it empowers employees and facilitate a
healthier balance between work and personal obligations.
TABLE OF CONTENTS
Title Page
Certification
Dedication
Acknowledgements
Abstract
Table of Contents
Chapter One: Introduction
1.1
Background
to the Study
1.2
Statement
of Research Problem
1.3 Research
Questions
1.4 Statement
of Hypotheses
1.5 Objectives
of the Study
1.6 Scope
of the Study
1.7 Significance
of the Study
1.8 Limitations
of the Study
1.9 Operational
Definition of Terms
Chapter Two: Literature Review
2.1 Introduction
2.2 Concept of Human Resource Management
2.3 Aims and Objectives of Human Resource
Management
2.4 Roles of Human Resource Management in
Organizational Performance
2.5 Human Resource Management as Intangible
Performance Measure to Manufacturing Industries
2.6 Human Resource Management as an Operational
Performance Measure
2.7 Theoretical Framework
2.8 Summary of the Review
Chapter Three: Research Methodology
3.1 Introduction
3.2 Research Design
3.3 Population of the Study
3.4 Sample/Samplings Procedures
3.5 Instrumentation
3.6 Method of Data Collection
3.7 Method of Data Analysis
Chapter Four: Data Presentation,
Analysis and Interpretation
4.1 Introduction
4.2 Presentation of Data
4.3 Data Analysis
4.4 Hypotheses
Testing
4.5 Discussion
of Findings
Chapter Five: Summary
of Findings, Conclusion and Recommendations
5.1 Introduction
5.2 Summary of Findings
5.3 Conclusion
5.4 Recommendations
References
Appendices
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Human
resource management is
the management of human
resources. It is designed to maximize employee performance
in service of an employer's strategic objectives. Human Resource is primarily
concerned with the management of people within organizations, focusing on policies and on systems.
Human Resource departments are responsible for overseeing employee benefits design,
employee recruitment, training and development, performance appraisal, and
rewarding (e.g., managing pay and benefit systems). Human Resource also
concerns itself with organizational change and industrial relations, that
is, the balancing of organizational practices with requirements arising from
collective bargaining and from governmental laws.
Traditional competitive mechanism
have become less effective as business life became complex. Because of this
reason, companies need to search for newer sources of competitive advantage. In
today’s world, human resources are considered the most important asset of an
organization and human resource management has taken a lead role in
organization’s having competitive advantage. Over the years, researchers have
suggested many human resource management practices that have the potential to
improve and sustain manufacturing establishments’ performance.
Within the Human Resource Management
perspective, psychology-based practices, especially empowerment, extensive
training, and teamwork, are seen as vital to sustained competitive advantage.
Other approaches, such as those of integrated manufacturing and lean
production, place greater emphasis on operational initiatives such as total
quality management, just-in-time, advanced manufacturing technology, and
supply-chain partnering as determinants of organizational performance.
Human
Resource is a business field focused on maximizing employee productivity. Human
Resources professionals manage the human capital of an organization and focus
on implementing policies and processes. They can be specialists focusing in on
recruiting, training, employee relations or benefits. Recruiting specialists
are in charge of finding and hiring top talent. Training and development
professionals ensure that employees are trained and have continuous
development. This is done through training programs, performance evaluations
and reward programs. Employee relations deal with concerns of employees when
policies are broken, such as harassment or discrimination. Someone in benefits
develops compensation structures, family leave programs, discounts and other
benefits that employees can get. On the other side of the field are Human
Resources Generalists or Business Partners. These human resources professionals
could work in all areas or be labor relations representatives working with
unionized employees.
1.2 Statement of Research
Problems
Over the years, the magnificent
relevance of the human resource management especially in manufacturing
industries has been downgraded. The rates of firms going extra miles to train
their staff and employees have reduced drastically probably because of high
cost of training or ignorant in the sight of the employers. This as well caused
resistivity on the side of the employees and motivation has been lost. With
motivation out of the picture, staff commitment has diminished as well. This is
one of the major reasons for low output of firms as production rates hasn’t
been encouraging in the last few years.
Hence, this research work tends to
tackle the following research problems:
i.
Human
resource management efficiency isn’t going in the right and proper manner, hence,
decrease in organizational performance.
ii.
Human
resource management has deteriorated mightily as the commitment of employee
decrease which poses a great threat to the smooth running of the organization.
iii.
Employment
security not guaranteed is another problem facing firms and it results in low
output.
iv.
Empowerment
and extensive training hasn’t been encouraging, as this as well diminish
employee performance.
Hence, this study the impact of human
resource management in manufacturing industries is carried out to solve these
existing problems and create a better and conducive atmosphere for both
employees and employers to carry out their statutory duties.
1.3 Research Questions
The following
are the research questions of the study:
i.
Does
human resource management improve organizational performance?
ii.
Does
human resource management have significant relationship with organizational
commitment of manufacturing industries?
iii.
Does
employment insecurity have significant effect on organizational
performance?
iv.
Does
empowerment and extensive training enhance company performance?
1.4 Statement of Hypotheses
The following
are the research hypotheses of the study:
Hypothesis One
HO: Human
resource management does not improve organizational performance.
HI: Human
resource management improves organizational performance.
Hypothesis Two
HO: Human
resource management does not have a significant relationship with
organizational commitment of manufacturing industries.
HI: Human
resource management has a significant relationship with organizational
commitment of manufacturing industries.
Hypothesis Three
HO: There is no significant relationship
between employment insecurity and organizational performance.
HI: There is significant relationship
between employment insecurity and organizational performance.
Hypothesis Four
HO: Empowerment and extensive training
does not enhance company performance.
HI: Empowerment and extensive training enhance
company performance.
1.5 Objectives of the Study
The broad
objective of this study is to ascertain the impact of human resource management in manufacturing organization. To
broaden the scope of the study, the following are the sub-objectives:
i. To ascertain if human resource
management improves organizational performance.
ii. To find out if there is significant
relationship between human resource management and organizational commitment of
manufacturing industries.
iii. To find out if there is significant
relationship between employment insecurity and organizational performance.
iv. To ascertain if empowerment and extensive
training enhance company performance.
1.6 Scope of the Study
This study
examines the impact of human
resource management in manufacturing organization. The geographical region of the
study is Edo State. A time frame of 5 years was used which covers 2012 to 2016.
A sample size of 50 was used for effective result.
1.7 Significance of the Study
This stud
will be beneficial to the following organizations/people:
Organization: It will serve as a guide to organizations who provide adequate
training and retraining programmes for the employee and how to carry out such
schemes which will be geared towards organization effectiveness.
The economy: This study will be of great relevance
to the overall economy, as it will help provide solutions to the problem of
human resource management in manufacturing firms thus building confidence in
the business environment.
Government and policy
makers: The result
of this study will therefore be of immense help to the policy makers,
government, individuals and investors.
Future Researchers: This study will also act as a guide
and literature for future researchers working on human resource management or
related fields, as it will definitely add to knowledge.
1.8 Limitations of the Study
The researcher in the course of the
research work encountered a number of problems, which militated against the
study. The problems were:
a. Attitude of the
respondents: In the
course of carrying out this research one problem encountered by the researcher
was the altitude of the respondents, some of the respondents was suspicious of
the researcher’s intention therefore were reluctant and sometimes unwilling to
supply information.
b. Financial Constraints: Finance has been a major constraint
in carrying out research project. Information gathering entails a lot of
movement from one place to the other and the cost of transportation is quite
high, cost of stationeries sky rocketed in Nigeria market and this posed major
problems to the research effort.
c. The problem of non return
of questionnaires by the respondents: Some of the respondent refused to return the questionnaires
that were distributed to them by the researcher and a few percentages didn’t
followed instructions in filling up the questionnaire which as well went a long
way in limiting the research work.
d. Human Errors and Bias: These are other limiting factors of
this study. This is because some data were obtained through discussions and
interviews; therefore, there is possibility of human error of omitting some
vital information. Respondents may also exaggerate important information in
order to give their organizations a positive credit for fear of what seems an invasion
into the organization privacy.
1.9 Operational Definition of
Terms
Strategy: Strategy is the various scheme
methods and maneuvers which management hopes to move the organization from its
present position to arrive at its target goal by the end of a specific period
Management: Management is a social process
entailing responsibility for the effective and economic planning and regulation
of the operation of an enterprise in fulfillment of a given purpose or tasks.
Manager: Is someone who is responsible for
the work of other.
Human Capital Management: Involves the effective utilization,
development and motivation of people at work to achieve objectives of the
organization, the satisfaction and development of the individual employee.
Vertical Communication: This communication line is otherwise
called line management. The line runs from top to bottom that is from
management or top officer’s information flows down the rungs of the ladder to
the officer the system also gives room for feedback.
Horizontal Communication: This occurs when information diffuses
across the breath of an organization among people of comparable status.
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