Professional Documents
Culture Documents
INTRODUCTION
The management of people within the organization has become an increasingly recognized important
focus for researchers and practitioner over the past 20 years. Organisations are becoming more aware
of important role human resource play in the success of their organisations to achieve financial
It is important for organisation to adopt human resources management (HRM) system that optimizes
work for ceasitenables organisation to achieve competitive advantage in today's global market
economy that provides wider access to technology, finance and other resources. Pfeffer stated that
firms have increasingly recognized the potential for their people to be a source of competitive
advantage. Creating competitive advantage through people requires careful attention to the practices
that best leverage these assets. According to Nishii, (2010) scholars generally agree that appropriately
designed, Human resources management practices can enhance organizational performance. Related
theories suggesting and supporting assumption holds that the practices of Human Resources
embedded in the operational system that enhances organizational performance and ability to deal with
turbulent environment. Effective HRM assists in developing human resources into high quality and
efficient workforce thus enabling the organization to obtain a competitive advantage through their
people. In contrast, inefficient workforce can increase labour cost and decrease organization
productivity. However, in order to remain competitive, grow and diversify, an organization must
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ensure that its employees are qualified, placed in appropriate position, properly trained, managed
effectively and committed to the firm’s success. The goal of HRM is to maximize employees
contribution in order to achieve optimal productivity and effectiveness while simultaneously attaining
individual objective (such as having a challenging and obtaining recognition) and societal objectives
Human resource dimensions or practices (training, recruitment, reward system performance appraisal
e.t.c ) have considerable impact on the performance of organizations and these contribute to the
(Osman,2012).
Training is a flexible way to develop an employee as it consists of both forma land informal ways to
enhance the effectiveness and efficiency of employees (Ellstrom,2011). Job security increases
employees’ honesty, keeps employees committed to the organization and provides security to
valuable information as well (Rajiand Jackson, 2011). Reward system is imposed on organization to
evaluate reward and organization reward employees on the basis to get value by elaborating what
they have spent and what they have got (Armstrong,2011). Employee performance can be evaluated
by the evaluation of task and reward system. Employee performance is one that is affected by the
knowledge transfer that helps employee to develop their understanding of networking as well as
committed to task assigned to him or her. HRM dimensions greatly influences the employees attitude
which in turn affects employees’ performance. If HRM system works effectively, then increase in the
organizational performance will be seen (Snape and Redman, 2010). Competitive advantage is
viewed as a source of competitive advantage is a must for any organization and employees are always
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viewed as source of competitive advantage for any organization (Barney ,2011; Pfeffer, 2014). So,
human resource management must be made in such away that can utilize employees in the best
Research problem is an intellectual stimulus calling for an answer in the form of scientific inquiry.
This as in some cases affected the productivities of workers and in turn the profitability of such
organization.
Some organizations take workers for granted by not providing adequate training and compensation
It is evident in organisations of today that managers focuses more on output rather than developing
and training their employees with skills so as to be more productive and satisfied (Gazioglu& Tansel,
2010).
With this development in the sector, staffs that lack proper training in the evolving competitive
landscape are redundant with their old knowledge and skills being obsolete (Ramay&Lew,2015)
The main objective of this study is to find out the impact of Human Resource Management (HRM)
on organizational performance. Aside this, other specific objectives that will be addressed are;
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1. Does recruitment and selection have effect on employees’ turnover?
From the research questions above, this study will be anchored on the following hypothesis
The study is carried out within the LIFEMATE LIMITED COMPANY. South-West Local
Government Area of Ogun State, Nigeria. The study focuses on the HUMAN RESOURCES
For the purpose of this study, we will adopt the descriptive survey research design method and
This study will contribute to the literature by critically examining the effectiveness of existing
Human Resources Management (HRM) practices that are in an organization such as recruitment and
This study will also be relevant to the government in terms of formulating and implementation of
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It will also be useful to those who carried out the studies in related areas in future. It will serve as a
reference material to them and the findings can also provide the basis for further studies.
Review, Performance Evaluation or Employee Appraisal is the method by which the job performance
Recruitment: This is the process of identifying that the organization needs to employ someone up to
the point at which application form for the post have arrived at the organization.
Training and Development: This is a function concerned with organizational activity aimed at
the personnel needed for organizational activities and to manage the general employee-employer
relationship.
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CHAPTER TWO
LITERATURE REVIEW
Human Resource Management can be described as a strategic, integrated and coherent approach to
the employment, development and well-being of the people working in organizations. It has a strong
conceptual basis drawn from the behavioral sciences and from strategic management, human capital
and industrial relations theories. This foundation has been built with the help of a multitude of
Human resource management (HRM) is the policies, practices, and systems that influence
employees’ behaviour, attitudes, and performance. Many companies refer to HRM as involving
“people practices”. There are several important HRM practices that should support the organization’s
business strategy: analyzing work and designing jobs, determining how many employees with
specific knowledge and skills are needed (human resource planning), attracting potential employees
(recruiting), choosing employees (selection), teaching employees how to perform their jobs and
preparing them for the future (training and development), evaluating their performance (performance
(employee relations). An organization performs best when all of these practices are managed well. At
companies with effective HRM, employees and customers tend to be more satisfied, and the
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companies tend to be more innovative, have greater productivity, and develop a more favorable
Human resource management (HRM) is responsible for carefully selecting and training people with
the necessary skills to pursue the strategy effectively. Some external factors can be predicted;
others, such as the collapse of large banks and insurance companies, can seemingly come out of
nowhere Robbins (2010). According to Neo (2011) human resource management is critical to the
success of organizations because human capital has certain qualities that make it valuable. In terms of
business strategy, an organization can succeed if it has a sustainable competitive advantage (is better
than competitors at something and can hold that advantage over a sustained period of time).
Therefore, we can conclude that organizations need the kind of resources that will give them such an
advantage.
Human resource management is a process that involves the use of overarching approaches to the
development of Human resource management strategies, which are integrated vertically with the
business strategy and horizontally with one another. Human resource management focuses on actions
that differentiate the organization from its competitors. It is suggested by Adams (2011) that it has
seven meanings:
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vii. Achievement of competitive advantage (Armstrong, 2006).
A study shows that human resource management (HRM) involves the process of dealing with
employees and staff. The sales representatives of these organizations are their main strength because
the performance is totally depending upon them. As Kaplan (2011) noted that human resource
practices are the most important source of any company to build a strong competitive advantage in
the market. Furthermore, organizations should continuously improve their HRM practices if they
i. Employment security.
organizational design.
viewed in different ways. HRM researchers have mostly referred to Dyer and Reeves’ (2002)
satisfaction.
iii. Financial accounting outcomes, such as profits, sales, return on assets, return on
investment.
iv. Capital market outcomes, such as market share, stock price, growth (Boxall, Purcell and
Wright, 2007).
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Campbell (2009) defines performance as behavior or action relevant to the attainment of an
against it’s intended outputs (or goals and objectives). Organisational performance is also the success
(b) Shareholder return (total shareholder return, economic value added, etc).
According to Richard (2009) organizational performance encompasses three specific areas of firm
outcomes:
(c) Shareholder return (total shareholder return, economic value added, etc).
In recent years, many organisation have attempted to manage organizational performance using the
balanced scorecard methodology where performance is tracked and measured in multiple dimensions
such as;
Custom stewardship.
Roe, 2001 agreed that performance has to be considered as a multi-dimensional concept. On the most
basic level one can distinguish between a process apect (i.e., behavioral) and an outcome aspect of
performance. The behavioral aspect refers to what people do while at work, the action itself
(Campbell, 2013). Performance encompasses specific behavior (e.g., sales conversations with
Moreover, performance must be distinguished from effectiveness and from productivity or efficiency
(Pritchard, 2002). Effectiveness refers to the evaluations of the results of performance (i.e., financial
value of sales). A great deal of attention has been paid to the distinction between task and contextual
performance. There are three basic differences between task and contextual performance (Motowidlo,
2013):
(1) Contextual performance activities are comparable for almost all jobs, whereas task performance is
job specific;
(2) Task performance is predicted mainly by ability, whereas contextual performance is mainly
(3) Task performance is in-role behavior and part of the formal job-description, whereas contextual
performance is extra-role behavior and discretionary (Le. not enforceable), and often not rewarded by
ORGANISATIONAL PERFORMANCE
Recruitment and retention may seem self-evident for HRM, it is the central point of contract for all
HR policies and system. Recruiting qualified employees, retaining them in the company, training
them adequately to succeed in their work and encouraging them to continue their education
qualification’s.
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Training is one of main HR activities in the organization and helps the firm to achieve its goals.
According to Grossman and Salas (2011), training is an organized task of information, skills, and
Almost all the employees, including those who are highly skilled, training at some point because each
organisation does things differently from others. Policies and procedures must be communicated
firmly to all employees as part of their integration process all on the same page.
PERFORMANCE
extending the skills based and, providing employees with extended responsibilities so that they can
make full use of their skills. It also helps in keeping the balance between the employee’s satisfaction
Strategic human resource management may bring a number of benefits to the organization (Brewster,
2010):
iii. Creating and maintaining a competitive advantage for the company, Improving the
Bailey (2013) contended that human resources are frequently “underutilized” because employees
often perform below their maximum potential and that organizational efforts to elicit discretionary
effort from employees are likely to provide returns in excess of any relevant costs.
HRM practices influence employee skills through the acquisition and development of a firm’s human
capital. Providing formal and informal training experiences, such as basic skills training, on-the-job
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experience, coaching, mentoring, and management development, can further influence employees’
development.
Bailey (2014) noted that the contribution of even a highly skilled and motivated workforce will be
limited if jobs are structured, or programmed, in such a way that employees, who presumably know
their work better than anyone else, do not have the opportunity to use their skills and abilities to
design new and better ways of performing their roles. Thus, HRM practices can also influence firm
employees and allow them to improve how their jobs are performed.
CHAPTER THREE
Research Methodology
3.1 Introduction
This study outlines the method and procedures employed by the researcher to carry out this
research study. It includes the research design, target population, sample, sampling techniques
sources of data, and data collection procedures used in obtaining the required data. This section
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Research design embraces the methodology and procedures employed to conduct scientific
research. The design defines the study type; data collection methods and statistical analysis plan.
This study took an explanatory research design since it seeks to establish the impact of HR
practices on organizational performance. This is a case study research work that used a selected
number of HRM practices to get empirical data on HRM practices and how they affect
organizational performance.
The research strategy used for the research was a survey approach in order to collect quantitative
data which was analysed using descriptive statistical tools. The use of a survey enables
generalisation to be conducted using findings generated from a sample size which is representative
The data for this study was drawn from two main sources; primary and secondary data sources.
The primary data sources were those original data collected and analysed by the researcher from
the field. These were mainly obtained from the responses of respondents to self-completion
3.2.1Secondary Data:
The secondary sources of data refer to data collected by a person or researcher other than the user
of the information. This kind of previously collected information is not case-specific but it
Investigating, for example a problem will almost certainly require a research project in the
academic sense. Researchers often have interest in particular groups of people or items this
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is referred to as study population. Population is the total members of a defined class of
people, objects, places or events selected because they are relevant to one's research questions.
In this study, the target population is the employees in the organization. The total population
A sample is a selection of a group of people or events from a population to be able to find out
true facts about the sample that will be true of the population. This becomes necessary as the
entire population of a number of One Thousand (1000) was taken as sample size. This study had
an estimated population size of one hundred (100) people and this large size made it
impossible for the researcher to test every individual members of the population. As such, a
sample size of Ninety (90 ) respondents, representing 9 0 % of the population was chosen as a
Data collection instruments are the tools used to collect information as part of a research. The
validity and reliability of data collection and instruments is of extreme importance to any sample
survey.
The main instrument for this survey was the questionnaire designed by the researcher to generate
responses from the respondents. The questionnaire was subdivided into to sections. Section A
consists of the demographic information which seeks for personal data of the respondents while the
Section B consists of 4- points Like Rating Scale of Strongly Agree (SA ), Agree (A), Disagree (D),
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3.4.1 M et hod of Dat a Collect ion and Dist r ibut ions:
Quest ionnaires w ere dist r ibut ed to t he respondent s by hand at t heir different of f ices
Researcher analyzed the data collected with statistical tools. The data collected were
subjected to statistical analysis using Mean t o find the answer to their search
questions w hile Chi- square statistic was used to test t he hypothesis formulated.
X. = £ FX/ N
X. = Scores
F. = Frequency
£. = Summation
N. = Number of respondents
thus:
E. = Expect ed f requency
X. = Chi-square
£. = Summation.
respondent.
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CHAPTER FOUR
4.1 Introduction:
This chapter presents the analysis of data, interpretation of results and discussion of the research
research questions and objectives that guided the study. The findings of the study were also
discussed in relation to the literature and in comparison to other related works. The data
collected were analyzed using descriptive method and the statistical tools. Descriptive statistical
analysis was used to identify frequencies and percentages of responses given to all the questions
in the questionnaire. Statistical tools were used to determine the effect, relationship and statistical
significance of the relationships among the selected variables. The level of significance was set at
0.05.
Research Question One: Does recruitment and selection have effect on employees’
turnover?
To determine the effects of recruitment and selection on employees, the study focuses on the
selected gender between male and female. Data gathered from this analysis are presented below:
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Table 1:
Male 58 58%
Female 32 32%
Void 10 10%
The target respondents in the study were top and middle level management staff of LIFEMATE
COMPANY.
The researcher distributed 100 copies of questionnaire to the respondents. 90 copies of the
returned questionnaire were duly completed and were considered usable for the analysis.
According to the research findings, the male gender has 57% while the female has 32%
This represents a response rate of ninety percent (90%), which was considered adequate in this
Research Question Two: Does reward system influence employees’ job satisfaction?
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Category Frequency Percentage Category Frequency Percentage
Age Experience
90 100% 90 100%
Table 2 above shows the age range of the respondents used for this study. Out of the total
number of 90 respondents, 31.1% (28) appears to be age 18-25, 38.8% (35) were of age 26-35,
22.2% (20) were age 36-50 and lastly 7.8%(7) were age 51 and above.
On the other hand, 26.6%(24) had experience of 1-5 years, 44.4% (40) had experience of 6-10
years, 24.4% (22) had experience of 11-15 years and lastly 4.4% (4) had experience of 16 and
above.
profitability?
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S/N QUESTIONNAIRES SA A D SD REMARK
quality.
on feedback.
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8 Employees have the autonomy to suggest 18 38 25 9 AGREED
The researcher after analyzing the question using (Mean, Standard deviation and Grand Mean) to
show the response of respondents that made up the sample and also analyze those questions
which relates to the hypothesis formulated so as to determine the effectiveness of the hypothesis
and the feasibility of the whole study. Chi-square statistics was used to test the hypothesis of the
X2 = ( O – E )2
E = Expected Frequency
X2 = Chi-square
£ = Summation
______________________
Grand Total
Hypothesis I
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Level of significance: 0.05
Decision rule: reject the null hypothesis H0 if the p value is less than the level of significance.
objectives.
Chi-Square 18.081a
Df 6
Since the p-value= 12.592 is less than the level of significance (0.05), we reject the null
hypothesis and conclude that communication serve as a tool for achieving organization goals and
Findings revealed that human resources management encourages personnel development among
employees in an organization. This is in line with Holbeche (2010) concluded that human
resources management facilitates the development of human capital that meets the requirements
Another findings of this study shows that human resources management assist employees to
5.0 INTRODUCTION
This chapter comprises discussions associated with findings of the entire research. This includes
summary of the work, findings both theoretical and empirical findings, conclusions, policy
implication of the findings, recommendations, limitation of the research, suggestions for further
The study discovered that effective communication is a foundation upon which every
organization irrespective of size and structure must be built: survey result also indicated a
goals.
This study also helps employees to implement business strategies successfully through
professional guidance helps to determine redundancy level of employee and also promote
employee’s responsiveness and innovation. And lastly it helps provide opportunity for
The corresponding hypothesis for the joint effect of the HRM dimensions on performance of the
Manufacturing firms was tested using multiple regression analysis. The regression results
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showed that a combination of the dimensions of HRM had a positive and significant effect on
organizational performance.
5.2 CONCLUSIONS
The correlation results of the study reveal that all dimensions of human resources management
positively affect organizational performance. These findings lead to the following conclusions:
that when Lifemate Company. which is the manufacturing firm in Ogun State, Nigeria used If all
manufacturing firm or organization in Nigeria practice human resources management they will
achieve higher levels of organizational performance in terms of sales growth, market share and
customer satisfaction.
The ANOVA results also show that all the HRM dimensions jointly had a positive and
significant effect on organizational performance in the organizations studied. The results from
the current study support the view that involvement in HRM has the potential to lead to
improved firm performance and in this case the manufacturing firms will enjoy better sales
The finding that human resources management and positively affects organizational
performance also empirically confirms the views of the stakeholder theory which underpinned
this study. Park (2010) maintains that the stakeholder theory proposes a positive association
between HRM activities and organizational performance. According to Freeman (2010), the
stakeholder theory is about the broad view of stakeholders where the corporation has
responsibilities towards them beside those who are the main or primary stakeholders of the
corporation. Thus, stakeholder theory takes into account individuals or groups with a stake in the
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company including shareholders, employees, customers, suppliers and the local community
(Jones, 2013).
Lastly, the findings of this study are important in that they helped answer the question in mind as
to whether the LIFEMATE COMPANY. engaging in HRM initiatives have experienced any
advantages at all in terms of change in their organizations’ bottom-line. The answer was an
emphatic yes seeing as it were that the results revealed an increment in the organizations’
performance of slightly over 80% during the period under study in comparison to the previous
year. The overall mean for organizational performance was (M = 4.15). This means that the
engagement in HRM activities had boosted the performance of the organization’s sales, market
5.3 Recommendations
This study allows effective recruitment policy to promote scientific selection of prospective
employees, ensures appropriate training program for both academicians and support staff to
continuously improve the skills of employees and also allows that performance appraisal should
The results of this study have implications for management policy and practice. The correlation
responsibility, ethical responsibility and legal responsibility jointly have a positive effect on
performance of the firms. This implies that to enhance organizational performance, managers
need to integrate all dimensions of human resources management craft appropriate strategies for
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their companies, ensure they are proactively implemented in order to increase their market share,
sales growth and customer satisfaction thus giving them competitive advantage over their
competitors.
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