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PROBLEM OF HUMAN RESOURCES MANAGEMENT ON ORGANIZATIONAL PERFORMANCE

PROBLEM OF HUMAN RESOURCES MANAGEMENT ON ORGANIZATIONAL PERFORMANCE

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PROBLEM OF HUMAN RESOURCES MANAGEMENT ON ORGANIZATIONAL PERFORMANCE

Abstract

This study focused on the impact of human resource management on organisational performance. (A case study of the Dangote flour mill). The study’s overall population is 200 staff members from the Dangote flour factory in Lagos state.

The researcher employed questionnaires to collect data. The descriptive survey research design was used for this investigation. The survey included 133 respondents who worked as human resource managers, accountants, production managers, or marketers. The acquired data was organised into tables and analysed using simple percentages and frequencies.

Chapter one

Introduction

1.1 Background of the Study

Over the last two decades, researchers and practitioners have increasingly recognised the importance of human resource management within organisations. Organisations are becoming increasingly aware of the critical role that human resources play in their organisations’ ability to achieve financial success.

As a result, organisations are becoming more employee-centric, concentrating on improving employee engagement and organisational commitment.

It is critical for organisations to implement human resources management (HRM) systems that optimise their staff because they help them to gain a competitive advantage in today’s global market economy, which provides more access to technology, financing, and other resources.

According to Pfeffer (1994), companies are increasingly recognising the potential of their employees to provide a competitive edge. Creating a competitive edge through people necessitates careful attention to the practices that best utilise these assets.

According to Nishii (2008), experts generally agree that well-designed human resource management strategies can improve organisational performance.

Related ideas propose and support the assumption that Human Resource Management techniques influence employees’ attitudes and behaviours.

Human resource management is a hidden asset in any business. It adds value to the operational system by improving organisational performance and ability to deal with a chaotic environment.

Effective HRM helps to develop human resources into high-quality, efficient workforces, allowing the business to gain a competitive advantage through its people.

In contrast, an inefficient staff can raise labour costs and reduce organisational output. However, in order to remain competitive, grow, and diversify, an organisation must ensure that its personnel are competent, positioned in appropriate positions, well trained, effectively managed, and committed to the firm’s success.

The goal of human resource management is to maximise employees’ contributions in order to achieve optimal productivity and effectiveness while also achieving individual objectives (such as having a challenging job and receiving recognition) and societal objectives (such as legal compliance and demonstrating social responsibility).

Human resource aspects or practices (training, recruiting, reward system performance appraisal, etc.) have a significant impact on organisational performance, contributing to the positive relationship between human resource management and organisational performance (Osman, 2012).

Training is a flexible strategy to grow an employee because it includes both formal and informal methods for improving employee effectiveness and efficiency (Ellstrom, 2011). Job security promotes honesty, keeps people dedicated to the organisation, and protects vital knowledge (Raji and Jackson, 2011).

A reward system is imposed on an organisation to evaluate rewards, and organisations reward employees based on value by explaining what they have spent and received (Armstrong, 2011).

Employee performance can be assessed by evaluating the job and reward system. Employee performance is affected by knowledge transfer, which helps employees gain an awareness of networking while also focusing on organisational performance.

Organisational performance is related to organisational fairness, which permits employees to commit to the tasks allocated to them. HRM factors have a significant impact on employees’ attitudes, which in turn affects their performance.

If the HRM system is effective, organisational performance will improve (Snape and Redman, 2010). Employees are always considered as a source of competitive advantage in every organisation (Barney, 1991; Pfeffer, 1994).

As a result, human resource management must be designed in such a way that personnel are used to their full potential in order to improve organisational performance.

 

1.2 Statement of the Problem

A research problem is an intellectual stimulation that requires a scientific response.

Based on my experience over the years, the role of human resource management in achieving organisational goals in Nigeria differs from that of other organisations throughout the world. Human resource management in Nigeria has not fared well in terms of promoting national efficiency and progress.

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