This study examines the impactof 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.
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:
HO: Human resource management does not improve organizational performance.
HI: Human resource management improves organizational performance.
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.
HO: There is no significant relationship between employment insecurity and organizational performance.
HI: There is significant relationship between employment insecurity and organizational performance.
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 impactof 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 impactof 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.