CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

Strategic Human Resources Management first emerged as a clearly defined concept in the late-1990s as a branch of Human Resources Management. This was brought through the development of information technology-oriented high-tech, Internet and e-commerce applications, the human and the New Economy (knowledge-based economy), SHRM brought about the increase in research and knowledge of the decisive role in creating organizational competitive advantage. SHRM focus on alignment of the organisation”s HR practices, policies and programmes with corporate and strategic business unit plans (Greer, 1995). Strategic HRM thus links corporate strategy and HRM, and emphasises the integration of HR with the business and its environment. Strategic human resource management can be defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage. (Boxall, P 1992) With strategic human resource management, the company focuses on strategy and operational matters instead of simply engaging in the administrative tasks that are required for every business. This adds more responsibility to the human resources department.

Strategic Human Resources Management  has been associated with many firms and industries in Nigeria example of such industries which has adopted strategic Human resources management in Nigeria includes the universities (government and private owned) arm of the education sector,  some insurance firm and some big corporate organization. However, it is sad to know that The contribution of small and medium-sized enterprises (SMEs) to the economic growth and development has been enormous. This contribution is significant for both the developed and developing world. Many governments acknowledge the fact that SMEs play a significant role in the growth and development of their economies. Consequently, a number of government investment projects are geared towards fostering the growth and development of local SMEs. The institution of policies geared towards the facilitation and empowerment of SMEs as well as improving the performance of SMEs remains a major objective of many economic policy makers and governments. In addition, international economic and financial bodies such as the IMF, World Bank, the European Investment Bank (EIB) and the International Financial Corporation (IFC) have invested heavily in making SMEs robust and vibrant in developing countries. Furthermore, non-governmental organisations (NGOs) in developing countries such as Nigeria have employed advocacy and capacity-building campaigns to promote the growth of SMEs. Despite the importance accorded to SMEs as well as their contribution to economic growth, Onugu (2005) argues that the performance of SMEs in Nigeria has been below expectations. Unlike SMEs in other countries, the contribution of Nigerian SMEs to economic growth has not been very impressive (Onogu, 2005). Following from its independence, the Federal government of Nigeria has invested significant sums of money to promote entrepreneurial and small business development projects (Mambula, 1997, 2002). However, results from these projects have not been very impressive. In order words, most of these projects have often been unable to yield their expected returns. Despite the country”s endowment with raw materials and other natural resources, there has been little progress towards the development of the manufacturing sector, which could have increased the production of value added products thereby substituting imports, increasing exports and increasing employment (Mambula, 1997, 2002). Business failure often comes as a result of a number of factors. This could be as a result of poor customer service, poor management and poor human resource management. While the poor performance of SMEs in Nigeria can be attributed to a number of factors, human resource management could be a major factor in determining this poor performance. Human resources are a principal source of economic growth. Like other resources, human resources require effective and efficient utilisation so as to ensure maximum contribution is achieved from them. Approximately 50 per cent of people work in small and medium sized enterprises. Despite this high proportion of human resources in SMEs, most studies that study human resource management have focused on large corporations with very limited attention to SMEs. Moreover, most studies on the practices of human resource management have been carried out in the developed world with very limited attention paid to developing countries like Nigeria. This study is one of the few studies that focus on the management of human resources in SMEs in a developing country. The country that has been chosen for the study is Nigeria. The paper examines the factors that affect the practices of human resource management in an SME in Nigeria and how these practices can affect the performance of the SME in particular and its contribution to the overall growth of the economy as a whole.

But Atul Gawande writes that the need to setup a department that will specialized in recruiting for attitudes ,training for skills, handle the management of their needs and other essentials cannot be overemphasized.  Organizations also has to leverage the skills and capabilities of its employees by encouraging individuals learning and creating a supportive environment in which knowledge can be created, shared and applied to achieve corporate goals of the organization. Chew (2004) reported that employee attitudes and behaviours (including performance) reflect their perceptions and expectations, reciprocating the treatment that they receive from the organization. In their multilevel model linking human resource practices and employee reacting, Ostroff and Bowen (2000) noted relationships revealing that human resources practices are significantly associated with employee perceptions and expectations, therefore, the success of any organization in the contemporary business world depends on the quality of human resources available for the achievement of long term corporate goals. Oladipo Jimoh Ayanda (2011) stated that "Strategic  human resources management is the most vital factor of production and labour productivity, a positive, forward looking, strategic human resource management is a sine-qua-non for the efficiency and effectiveness of public and private sector employees.

1.2    STATEMENT OF THE PROBLEMS

         It seems obvious that many organizations today are yet to adopt strategic Human resources management, the chain of responsibility and delegation of authority has been thrown into waste bin. In fact there are no  sections created specifically to handle the management of Human resources  in firms,  no job specifications, and where there are, the definition of it is not been clearly spelt-out by the direct boss. Consequently, the desire and the ultimate goal of the organization will be in jeopardy. There are many issues about Strategic Human Resource Management such as commitment, delegation, motivation and employee relations which may hinder the formulation and monitoring of Human Resource policies and practices.

          Another issue of Strategic Human Resource Management is absence of written business strategies which Human Resource strategies should address. In addition, organizational behavior scientists are dealing with a wide range of problems confronting the business world. For instance, they continue to study downsizing, career development in the global economy, social issues such as substance abuse and changes in family composition, and the global economy.

1.3    OBJECTIVE OF THE STUDY

         The main objective of this study is to determine the impact of Strategic Human Resource Management on the productivity of a consumer goods organization.

1.         To examine the availability of strategic human resources department in a consumer goods organization.

2.         To examine the commitment of human resource functions with respect to efficiency and effectiveness of an organization.

3.         To investigate the motivational strategies adopted in an organization for excellent performance of human resource personnel.

4.         To ascertain the type of relationship that exist between employer and employee as regard to organizational achievement?

1.4    RESEARCH QUESTIONS

1.         What is the impact of strategic human resource management on the productivity of a manufacturing organization of consumer goods?

2.         What is the commitment of Strategic Human Resource functions in achieving organizational goals and objectives?

3.         Is there any significant relationship between Strategic Human Resource Management and organization”s achievement?

4.         Is there any significant relationship between Strategic Human Resource personnel and other organizational department as regard to organizational achievement?

5.         What are the criteria used by the organization in the selection/recruitment of Strategic Human Resources personnel?

1.5    RESEARCH HYPOTHESES

         Ho: Strategic Human Resource Management has no significant impact on the productivity of the organization

Hi: Strategic Human Resource Management has a positive significant impact on the productivity of the organization.

Ho: There is no significant relationship between Strategic Human Resource Management and organization”s achievement

Hi: There is a significant relationship between Strategic Human Resource management and organization”s achievement.

1.6    SCOPE AND LIMITATION OF THE STUDY

         The length and breadth of this   study include Strategic Human Resources Management practices and organizational productivity in the consumer goods industry, but with special reference to  activities of Nestle Foods Nigeria Limited Lagos. However, the   envisaged limitations are; finance, time, as well as unfavourable/uncared attitudes of the respondents due to fear of unknown.

1.7    SIGNIFICANCE OF THE STUDY

         This study is necessary due to the worrisome occurrence of non-utilization or application of Strategic Human Resources toward - achieving organizational goals. Considering  the attention currently being given to strategic human resources management in various organization.

Efficient utilization and integration of Strategic Human Resources Management would enhance the performance of the organization most especially in local government level and for SMEs.  Moreover, the  finding of this  study will  help  the  manager or any administrators to believe in the various ways in which the recruitment, training, delegation, motivation, good remuneration, appropriate performance appraisal can be used to ascertain the performance  and ability of the staff in relation to the objectives and the achievement of the organization. Admittedly, it will also help the government to provide enabling environment where the teaching and learning of Strategic Human Resource Development  ought to be taken place. Also at the same time provide the needed materials to the staff for their utilization. The study will equally unravel the power behind the optimal utilization of strategic human resources in achieving organization goals.

1.8    DEFINITION OF TERMS

Decision-making: This is making a choice from among two or more alternatives.

Development: This is the art of increasing the knowledge and skill of an employment for doing general jobs.

Effectiveness:  This is the extent of which an organization is successful in maintaining its functional condition. It is directed at goals attainment.

Forecasting:  This is the ability of the management to predict the needed manpower either in terms of mathematical projection of trends in the national economy and development in the industries or of judgment estimates based upon specific future plans of organization.

Goals: These are statements of what the organization intends to achieve.

Strategic Human Resource Management (SHRM): This is the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage.

Human Resource Planning (HRP): This is a systematic analysis of SHR needs in order to ensure that correct numbers of employees with the necessary skills are available when they are required.

Management: This is the act of getting things done by people. Manpower: This can be defined as the available stock of personnel of a country, state or organization for the attainment of its corporate objective.

Manpower Development:   This is the  continuous  process  use  during the promotional survival and improvement of the personnel in an organization.

Manpower Planning: This is the concept that involves critical analysis of supply, demand, surplus, shortages, wastage and utilization of human resources.

Productivity: It is the ratio or proportion of output of the commodity to the input of the factors of production.

Profitability: This is the extent to which a firm is able to sustain increasing levels of profit on sales and return on investment over a period of time.

Role: It is a set of activities by an individual in fulfillment of the expectation imposed by professional standard of behaviour or employers position requirement.

Skill: It is the ability that is required which enables a person to achieve some particular goals.

Training: This can be defined as any organizational planned effort to change the behaviour or attitude of employees so as to perform to equitable standard on the job.

REFERENCES

Oladipo Jimoh Ayanda, Abdulkadir Danlami S.(2011) Strategic Human Resource Management and Organizational Performance in the Nigerian Manufacturing Sector: An Empirical Investigation

Roseline M. Ojokuku Felicia K. Akanbi(2015)Strategic Human Resource Management Practices and Performance In Nigerian Public Universities

Department of Management and Accounting, Ladoke Akintola University of Technology, P.M.B. 4000, Ogbomoso, Nigeria

Adebayo,       R.   (2002). The   role- of   labour  in   National Building,   Ibadan:University Press. Brown,    R.   (2004).   Design   jobs that motivate and develop people. Retrieved February 14.

Chew, J. C. L. (2004). The impact of human resource management practices on the retention   of core   employees of Australian Organizations: Anempirical study. Unpublished Ph.D Thesis, Australia; MurdockUniversity. Ostroff,   C,   and. Bowen,   D. E. (2000). Moving human resource practices andorganizational effectiveness.

San Francisco; Jossay Bass. Solkhe,   A., and    Chaudhary, N. (2011). Human Resource Development climateand job satisfaction: An empirical investigation. International Journal of Computer. Business Research. 2 (2).

Stiles,   P., and    Kulvisaechana,   S. (2005). Human capital and performance: Aliterature review.Judge  Institute of Management, UK; University of Cambridge.