The Effect Of Human Resource Management (Hrm) Practices On Organizational Performance

The Effect Of Human Resource Management (Hrm) Practices On Organizational Performance

Abstract

A mortal resource practice is considered the most critical for organizational performance. still, Human Resource Management is described as a strategic, intertwined and coherent approach to the employment, development and well- being of the people working in associations. This study thus delved the the goods of mortal resource operation( HRM) practices on organizational performance.

The study espoused descriptive check exploration design. The population was 165 workers of the eco bank plc. Total recitation system was espoused. The response rate was93.9 out of 165 clones of the questionnaire administered. The data was anatomized using descriptive( Statistical Package for Social lores( SPSS) and Microsoft excel presented the final data in maps and plates. The SPSS was used to gain frequentness and probabilities of close concluded responses

The study indicate that the analysis between mortal resource practice and organizational performance is significant. Reclamation and selection practices affect hand effectiveness in Eco bank( Nigeria) Plc. Performance appraisal has positive and significant effect on hand performance in Eco bank( Nigeria) Plc, compensation plan by operation has significant influence on hand provocation in Eco bank( Nigeria) Plc with P- value less than0.05, R- forecourt of20.7, Training and development programs affect organizational commitment in Eco bank( Nigeria) Plc. P- value<0.05, R- forecourt of14.0.

The study concludes that mortal resource operation practice has significant goods on organizational performance. It has been set up that bank’s performance can be attributed to HRM practices including reclamation and selection, training and development, performance appraisal, and compensation plan. It was recommended that the bank should have an effective reclamation policy to promote scientific selection of prospective workers, training and operation development program should be enforced to enhance the capabilities of workers of eco bank Nigeria Plc, Performance appraisal should be guided by the performance operation policy, compensation is critical in enhancing performance; hence the eco bank should apply this to motivate those workers who achieve the set targets.

Keywords mortal resource practice, Organizational performance.

Chapter One

Preface

Background of the Study

mortal Resource Management can be described as a strategic, intertwined and coherent approach to the employment, development and well- being of the people working in associations. It has a strong abstract base drawn from the behavioral lores and from strategic operation, mortal capital and artificial relations propositions. This foundation has been erected with the help of a multitude of exploration systems( Armstrong, 2010).

mortal resource operation( HRM) is the programs, practices, and systems that impact workers ’ geste , stations, and performance. numerous companies relate to HRM as involving people practices. There are several important HRM practices that should support the association’s business strategy assaying work and designing jobs, determining how numerous workers with specific knowledge and chops are demanded( mortal resource planning), attracting implicit workers( recruiting), choosing workers( selection), tutoring workers how to perform their jobs and preparing them for the future( training and development), assessing their performance( performance operation), satisfying workers( compensation), and creating a positive work terrain( hand relations). An association performs stylish when all of these practices are managed well. At companies with effective HRM, workers and guests tend to be more satisfied, and the companies tend to be more innovative, have lesser productivity, and develop a more favorable character in the community( Raymond, 2011).

Organizational performance( OP) is an index which measures how well an enterprise achieves their objects( Hamon, 2003). Organizational performance is concerned with product or service quality, product or service invention, hand magnet, hand retention, client satisfaction, operation/ hand relation and hand relation( Delaney and Huselid, 1996). mortal coffers have been linked to be both precious and a source of competitive advantage( Legge, 1995). According to Bontis( 1999), the mortal rudiments of the association are those that are able of literacy, changing, instituting and furnishing the creative thrust which if duly motivated can insure the long- term survival of the association. Delery( 1998) observed that the styles used by an association to manage its mortal coffers can have a substantial impact on numerous organizationally applicable issues.

When associations face challenges similar as an frugality recession, it depend completely trained professionals who reply snappily to changes in the terrain and produce strategies for success. mortal resource operation( HRM) is responsible for precisely opting and training people with the necessary chops to pursue the strategy effectively. Some external factors can be prognosticated; others, similar as the collapse of large banks and insurance companies, can putatively come out of nowhere( Robbins, 2010).

According to Noe( 2011) mortal resource operation is critical to the success of associations because mortal capital has certain rates that make it precious. In terms of business strategy, an association can succeed if it has a sustainable competitive advantage( is better than challengers at commodity and can hold that advantage over a sustained period of time). thus, we can conclude that associations need the kind of coffers that will give them such an advantage.

workers are one of the most important means of an association as they contribute to its growth and success( Danish and Usman, 2010). Malik, Nawab, Naeem, and Danish( 2010) concluded that in the period characterized by rapid-fire and nonstop change, knowledge capital must be retained in order for associations to be productive and responsive to the requirements of their stakeholders. Likewise, banks as fianacial institutions need to attract, retain and develop their workers. Banks need workers who are well trained and motivated so that they’re committed to their work of conducting exploration and training for the development of the nations( Lew, 2009). Research literature has shown that effective operation of some mortal coffers operation( HRM) practices enables association workers to be committed to their work for good performance of the bank( Shahzad, Bashir, & Ramay 2008).

perpetration of applicable HRM practices for banks workers will promote university performance as Lew( 2009) noted that workers play a strategic part in perfecting conditions in crucial areas like proper client fiscal operation. Realizing the significance of promoting banks ’ performance, numerous banks are embarking into strategizing its HRM( Sirat, 2005). For this to materialize, it’s significant that the country’s fiscal institution ameliorate their world class bank ranking by attracting and retaining excellent and experience staff.

One of the sectors which will play an important part is banking sector especially the marketable bank. The nation needs further mortal coffers able of performing different conditioning both in public and private sectors. latterly, the marketable bank are anticipated to duly operation guests ’ plutocrat. Malik etal.( 2010) training and development of well- good mortal coffers will depend on the performance of the bank subordinated to effective perpetration of different packets of HRM practices similar as selection, compensation, information sharing, participative decision timber, job description, training, career planning and performance operation among others.

Little empirical exploration has been conducted to examine the goods of HRM practices on marketable bank performance in Nigeria. In order to effectively probe whether mortal coffers are able of contributing to competitive advantage, it’s realistic to examine HRM practices in as numerous settings as possible. thus, this study is to examine the impact of HRM practices on organizational performance in Nigeria with a particular focus on a eco bank.

Statement of the Problem

HRM is extremely important for banks especially because banking is a service assiduity( Mathivanan, 2013). Banking assiduity viewed from labor force angle has its tricks. It’s a labor ferocious assiduity and effectiveness of workers has got a bearing on the quality of services offered. This being the case, it should have been natural that professionalization of labor force operation should have gained better precedence but unfortunately labor force operation happed to be the most neglected aspect of banks operation( Mathivanan, 2013). still, there are also significant pitfalls which should be precisely managed in the mortal resource area. These pitfalls include the consequences of retaining the wrong people; deficiently training and developing them; losing them precociously; breeding deceived provocation; and failing to consider unborn mortal resource capability needs. thus, the bank, like utmost associations with crucial reliance on the chops, experience, and judgment of its staff, should maintain structures and programs to identify and manage these pitfalls( Suarez 2009), as this could have significant effect on the organizational performance.

Reclamation and selection practices in the Nigerian banking assiduity is characterized by internal job advertisement, where workers are signed and named grounded on who they know in the bank. There’s a tendency to prefer rookies who come through known connections within the system. This does n’t give room for the stylish person to be named for the job. Internal job advertisement is current in Nigeria. A large number of associations fill vacuities at middle and elderly situations from being hand pool, significant significance isn’t attached to the process of race planning. People not earning them are given the occasion, this may be because of family ties, political influence or just simply being the fave of the master. The effectiveness of mortal resource practices, particularly hand reclamation and selection procedures, performance appraisals, compensation operation, and hand training and development frequently have a direct bearing on organizational performance. Contributing to this assertion, Boohene et al( 2011) present that, the result of effectively managing mortal coffers is an enhanced capability to attract and retain good workers who are motivated to perform. According to them, the benefits of having the right workers motivated to perform include lesser effectiveness, high service quality, hand commitment, and more rapid-fire acceptance and perpetration of commercial strategy. Recruiting unqualified people for the job will surely have an effect on their effectiveness on the job.

Performance appraisal has attracted a great deal of attention, due to the under- performance of several banks which led to the winding down of some banks. Periodic performance appraisals enable operation to cover the norms, to agree on the prospects and objects, and to delegate the liabilities and tasks. The effect of the profitable recession on the Nigerian frugality has pushed banks to find ways to increase its position of hand productivity and maintain competitive advantage in the assiduity. The performance of a bank is largely dependent on the performance of its workers. And the only way to continually have the stylish hands on the job is through the perpetration of effective performance appraisal systems

also, Remuneration/ price has been set up to play motivational part and include but not limited to pay strategies similar as performance related pay, product grounded pay, skill grounded pay, knowledge grounded pay and base pay Brown( 1989). Compensation is a veritably important aspect of HRM in Nigeria where workers are generally low paid with little or no borderline benefits, this in turn affects the hand’s provocation to work. workers are generally not duly motivated to put in their stylish performance due to the low position of compensation for their trouble, poor compensation demotivates workers and they infrequently not go beyond the needed organizational target or go the redundant afar on their job.

It’s apparent in associations moment that directors concentrate more on affair rather than developing and training their workers with chops so as to be more productive and satisfied( Gazioglu & Tansel, 2006; Barrows & Wesson, 2000). With this development in the sector, staff that lacks proper training in the evolving competitive geography are spare with their old knowledge and skill being obsolete.( Osibanjo, Kehinde & Abiodun, 2012). Obsolete chops and knowledge needs to be brushed up through proper training and development. The most important concern of the employers is to make the workers to contribute their veritably stylish toward the organizational objects attainment. Training though accepted as a vital part of any executive functions is still carried out in an ad- hoc way which wastes a considerable proportion of plutocrat without relating the need for similar exercise. numerous companies don’t regard mortal coffers development as a professional exertion and in numerous cases training officers are workers transferred to sodalities without any serious study being given to the real training requirements of a company.

( Akujuru & Enyioko, 2015). Dessler( 2003) sums up how training and development influences association performance by arguing that developing mortal capital through continuing training may increase the productive affair from each hand either through enhancement in skill position or through enhancement in morale and job satisfaction. An hand duly trained with the right chops for the job will be more married to the job being trained for, this in the long run improves the organizational performance.

The effect of Human Resource Management( HRM) practices on organizational performance has been a extensively delved area. Result of studies, from developed countries to developing countries have been time and again showing that HR practices have significant effect on organizational performance. But unluckily, veritably inadequate figures of studies have been conducted to check the effectiveness of being and presently enforced HRM practices in Nigerian banks. The main end of this study is to fill this being gap by exploring the effect of HRM practices on organizational performance of Eco bank( Nigeria)Plc. as well as examining whether there’s a positive or negative effect of HRM practices on organizational performance.

Objects of the Study

The main ideal of this study is to examine the effect of mortal resource operation( HRM) practices on organizational performance of Eco bank( Nigeria)plc.

The specific objects are to

determine how Reclamation and selection practices affects hand effectiveness in Eco bank( Nigeria)Plc.

assess the effect of performance appraisal on hand performance in Eco bank( Nigeria)plc.

estimate the influence of compensation plan on Hand provocation in Eco bank NigeriaPlc.

probe how training and development programs affects organizational commitment in Eco bank( Nigeria)plc.

Exploration Questions

The exploration question focus on soliciting information on the HRM practices espoused by Eco bank of Nigeria Plc, designed for effective and effective operation of the company’s mortal and material coffers towards achieving association performance. The questions include

How does reclamation and selection practices affects hand effectiveness in Eco bank( Nigeria) Plc?

What are the goods of performance appraisal on hand performance in Eco bank( Nigeria) plc?

How does compensation plan influence hand provocation in Eco bank Nigeria Plc?

How do training and development programs affect organizational commitment in Eco bank( Nigeria) plc?

Exploration Hypotheses

The following suppositions were set out to guide the study at0.05 position of significant.

H0 Reclamation and Selection practices doesn’t affect hand effectiveness in Eco bank( Nigeria)Plc.

H0 Performance appraisal has no significant effect on hand performance in Eco bank( Nigeria)Plc.

H0 Compensation plan by operation has no significant influence on hand provocation in in Eco bank( Nigeria)Plc.

H0 Training and development programs doesn’t affect organizational commitment in Eco bank( Nigeria)Plc.

Operationalization of the Variables

The independent variable( X) = mortal Resource Management practices( HRMp)

The dependent variable( Y) = Organizational performance( OP)

The delegates used to measure the independent variable( HRMp) were Reclamation and Selection( RS), Performance Appraisal( PA), Compensation Plan( CP) and Training and Development( TD). While the dependent variable was measured with Hand Effectiveness( EE), Hand Performance( EP), Employee Motivation( EM) and Organizational Commitment( OC).

Y = f( X) where;

Y = ( y1, y2, y3, y4)

X = ( x1, x2, x3, x4)

Y = Organizational performance( OP)

X = mortal Resource Management practices( HRMp)

OP = f( HRMp). µ

Measuring the delegates of Human Resource Management practices( HRMp) and Organizational performance( OP)

OP = f( EE, EP, EM, OC). i

HRMp = f( RS, PA, CP, TD). ii

Where; y1 is( EE) Hand Effectiveness

y2 is( EP) Hand Performance

y3 is( EM) Employee Motivation

y4 is( OC) Organizational Commitment

Where; x1 is( RS) Reclamation and Selection

x2 is( PA) Performance Appraisal

x3 is( CP) Compensation Plan

x4 is( TD) Training and Development

Functional Relationship

EE = f( RS). i

EP = f( PA). ii

EM = f( CP) iii

OC = f( TD) iv

Compass Of The Study

This study focuses on the effect of Human Resource Management( HRM) practices on organizational performance. Examining the effectiveness of these practices on the bank workers. For the purpose of this study we will borrow the descriptive check exploration design system and primary data will be collected so as to carry out our analysis. The study will be carried out at Eco bank( Nigeria) Plc. The bank branches where the check will be carried out are located at Ikorodu, Ikeja, Ikoyi, Ibadan, and Victoria Island, Lagos.

Limitation of the study

The first limitation of this study is the limited extent to which the findings of the study can be generalized to wider geographical locales and/ or sectors of the frugality because the study covered Eco bank Plc only. As similar, the findings can not be generalized to companies in other sectors. The study is farther limited to four factors which were the independent variables in this study; reclamation and selection, training and development, performance appraisal and compensation and the dependent variable was association performance.

Secondly, the limited time within which the exploration work is needed to be completed also serve as limitation of the study. It was due to this factor that the study couldn’t cover numerous enterprises.

Eventually, shy finance was also a major limitation of this study and as a result the experimenter couldn’t be suitable to cover wider geographical area and/ or diligence but limited to Eco bank NigeriaPlc.

Significance of the Study

This study will contributes to the literature by critically examining the effectiveness of being Human Resource Management( HRM) practices that are presently in place at Eco bank( Nigeria)Plc. similar as reclamation and selection, performance appraisal, compensation plan and training and development, and what goods they’ve on the hand, as this will eventually determine the bank’s performance.

The operation of fiscal institutions especially the banking sector will surely find the recommendations and findings of this work applicable and useful in charting a new course for bettered organizational performance, through the application of HR tools for mortal coffers operation and development.

The study will be applicable to the government in terms of formulating and perpetration of programs concerning the banking sectors of Nigeria.

The study will be useful to those who’ll carry out studies in affiliated areas in future. It’ll serve as a reference material to them. Indeed, the findings can give the bases for farther studies.

Functional Delineations Of Terms

Performance appraisal( PA) also appertained to as a performance review, performance evaluation,( career) development discussion, or hand appraisal is the system by which the job performance of an hand is proved and estimated.

Hand compensation plan inclusively refers to all the factors in addition to the manner in which the compensation is paid and for what purpose workers admit case lagniappes, payment increases and impulses.

Reclamation this is the process of relating that the association needs to employ someone up to the point at which operation forms for the post have arrived at the association.

Selection this consists of the processes involved in choosing from aspirants a suitable seeker to fill a position.

Training and development this is a function concerned with organizational exertion aimed at bettering the job performance of individualities and groups in organizational settings.

Job Security this is an assurance that an existent will keep his or her job without the threat of getting jobless. He she will have durability in employment and it may be from the terms of a contract of employment, collaborative logrolling agreement, or labor legislation that prevents arbitrary termination.

Effectiveness the degree to which objects are achieved and the extent to which targeted problems are answered. In discrepancy to effectiveness, effectiveness is determined without reference to costs.

effectiveness this is the( frequently measurable) capability to avoid wasting accoutrements , energy, sweats, plutocrat, and time in doing commodity or in producing a asked result. In a more general sense, it’s the capability to do effects well, successfully, and without waste.

Performance the accomplishment of a given task measured against preset given norms of delicacy, absoluteness, cost, and speed.

mortal Resource this is a single person or hand within your association. Human coffers is also the organizational function that deals with the people and issues related to people similar as compensation, hiring, performance operation, and training.

labor force operation this is an executive function of an association that exists to give the labor force demanded for organizational conditioning and to manage the general hand- employer relationship.