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PROBLEMS OF HUMAN RESOURCES MANAGEMENT AND THEIR IMPACT IN ORGANIZATIONAL PERFORMANCE: A STUDY OF ECOBANK PLC, ASABA, NIGERIA
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND
Human Resource Management is not new though misunderstood. Every organization set up so long there are people working thereconscious1y or unconsciously deals with Human Resources management and its attendant problems.
Human Resources Management is dynamic and the source and failure of any organization depends on the human resources. This is because every other resource material, financial and so forth resolves around and indeed controlled by the human resources. There is no gain-saying that the greatest of all resources at the disposal of any organization is the personnel (Human resources). Considering this, the need for effective and efficient human resource management in any organization cannot be overlooked or ignored. This report seek therefore to study or investigate human resources management practices in some Nigeria establishments.
This report research seeks to establish the current personnel management practice, the problems/drawback, prospect and proffer solutions. To effectively achieve this the report is broken down into five (5) chapters for easy understanding.
1.2 GENERAL BACKGROUND
One of the most difficult problems facing all managers is how to deal with the staff under them. Only by adopting the correct approach to motivation, giving instructions and finally, where necessary, reprimanding, will the required high level of co-operation be forth-coming.
The study of human resources management problem cannot be complete without referring to leadership and motivation. Leadership is a systematic process of carrying people along with a view of fulfilling organization goals and objectives. Leadership is an important aspect of managing people and it is often said that the ability to lead is one of the fundamental ways of 1ing an effective managers.
Organization exist to provide goods and services. The ability of the organization to sustain the provision of these goods and services through increased productivity depend s on the motivational strategies and the managerial leadership qualities. Effective leadership understands human problems and then takes them into account when directing and inducing employees for actions. Thus, the essential ingredient of a sound management involves building up morale and confidence as well as motivating employees for work efficiency. This explains why human resources management is very important. Human Resources Management is an important process for the achievement of the objectives of any organization and effective and efficient output for an organization.
According to Boyce (2002) and Ubeku (2006) observed that human resources management or administration is a basic function of management; technical efficiency is not adequate to achieve organizational success.
Rensis Likert is more clear but technical terms opined that all the activities of any enterprise are initiated and determined by the persons who make up the institution (2001). The essence of human resources management lies in its ability to manage workers effectively for high quality output and for optimum efficiency and this makes it easy for the organization to attain its goals and aspirations.
Human Resources Management is very important in every organization hence its roles include management and operative functions. Management at all levels to some degree are concerned with the future as well as with the present. They are responsible for planning, organizing, staffing, directing, co-ordinating, reporting and budgeting. Management needs to make the maximum use of human resources for the shop floor to the boardroom as well as to optimize the use of resources such as plant, money and materials. However, human resources management is also concerned with getting the best out of people at work at an economic level and ensuring that the social system in the organization does not militate against this.
Generally, in the 20th and 21st centuries, the personnel problems of employees at work were the most neglected aspect of industrial activity. People were hired and fired as the business demand and once there was a constant supply of labour from which to choose, employers gave no regard to the misery caused by their policies. This gave the way for trade unionism and the like. The prime purpose of trade union is to maximize the economic and social wellbeing of its members. All the activities of any organization ate initiated and determined by the person who make up that institution. Plants, office, computers, automated equipment and others; human effort and direction. A person’s ability, the quality of his tools, materials, the nature of the work environment and the job and efficient managerial coordination of efforts of work force all assist the effective performance of a job.
Thus, in this modern times, an effective and efficient human resources management department is a valuable asset to an organization. Human resources management problems no doubt exist with us tremendously, hence the importance which the research attached to the conduct of this research work.
1.3 PROFILE OF ECOBANK PLC.
Ecobank Nigeria Plc is a Nigeria based bank. It was founded in 1986, key people are “Sunny Kuku”, as its Chairman. It is a commercial bank in Nigeria. Ecobank is engaged in providing personal business and wholesale banking services and product. Its customers include government, financial institutions, local and international organization, medium, small and micro business as well as individual. The bank portfolio include, current and savings account. Internet banking, treasury solutions as well as short and long term loans, among others. It also delivers financial advisory and consultancy services. The bank operates a network of more than 200 branches and offices throughout Nigeria. Presently Ecobank is taking over oceanic bank.
Ecobank Nigeria Plc is a subsidiary of Ecobank Transnational Incorporated. Ecobank Nigeria Plc has a primary aim of providing high quality banking services and product, tailor made a meet individual requirement. Customers can rely on their skilled and carefully selected staff to attend to their needs with the highest standard of personal attention confidentiality and competence. Ecobank Nigeria Plc policy, is to be flexible and prudent in the day to day management of its operations in order to serve clients best interest. As a dynic and progressive institution, they are constantly keeping abreast of domestic and internal economic development of domestic and internal economic development so as to positively respond to changing circumstances as they arise. Their goal is to say ahead of competition. Their service delivery is backed with the least technology including computer systems and software that are constantly updated to ensure that all transactions are handled with speed and efficiency.
Ecobank Nigeria Plc head office is based Plot 21 Amadu Bello Way, Victoria Island, Lagos. Its branches are located within the neighbourhood of the Central Bank of Nigeria (CBN) and the Nigeria Stock Exchange. The bank is almost across all the communities in the nation.
1.4 STATEMENT OF PROBLEMS
Most people are yet to appreciate the need, problem and essence of studying Human Resources Management. It is not therefore surprising that the role of Human Resources Managers has not been fully recognized. Some organizations do not believe that they need the service of personnel manager. They continually emphasize the need for the “collegiate manager” forgetting that effective managers do everything in their power to design an environment in which workers can best perform.
This, however, does not mean that most companies in Nigeria do not have Human Resources Managers. The problem is that most companies do not make the work for personnel manager easy and so such they encounter some problem when trying to execute their plans for example the Human Resources Manager is often hampered by inadequate communication system.
1.5 PURPOSE OF THE STUDY
This study is designed to determine the definite problems and impact of Human Resources Management on organizational performance and also explaining how they affect the goals and aspirations of Ecobank Nigeria Plc. Also, suggest effective methods of solution to the problems of the Human Resources Management.
1.6 RESEARCH QUESTIONS
In this study, the following questions shall be examined with a view to finding answers that will benefit the organization.
v Does the Human Resources Manager have adequate communication network?
v Do the activities of the labour unions undermine the authority of the Human Resources Manager?
v Do the remuneration and other forms to invent incentives motivate the workers satisfactorily?
1.7 STATEMENT OF HYPOTHESES
Hypotheses will be stated and tested against the alternative hypothesis (Hi). Some of the hypotheses are to be stated and tested:
(1) Ho: Human Resources Management does not have adequate
communication network.
H1: Human Resources Management have adequate communication
network.
(2) Ho: The activities of the labour unions do not undermine, the authority of
the Personnel Manager.
H1: The activities of the labour unions undermine the authority of the
Personnel Manager.
(3) Ho: Remuneration and other forms of motivations are not given to
workers satisfactory.
H1: Remuneration and other forms of motivations are given to workers
satisfactory.
1.8 SIGNIFICANCE OF THE STUDY
This study is designed to look into the Human Resources Management of Ecobank Nigeria Plc. and the impact and problem with a view to finding out the causes if problems so that reasonable suggestion can be made on how to control the situation that will lead the company to attain its effectiveness and maximum efficiency in management of human resources.
1.9 OPERATIONALIZATION OF TERMS
Management: Is defined as getting things done through others. It can be more scientifically defined as the coordination of all the resources of an organization through the process of planning, organizing, directing and controlling in order to attain organizational objectives. It is also the guidance or direction of people towards organizational goal or objectives.
Manpower Planning: The systematic and continuing process of analysing an organization’s human resource needs under changing conditions and developing personnel policies appropriate the longer term effectiveness of the organization. It is also integral part of corporate planning and budgeting procedures since human resource costs and forecasts both affect and are affected by longer term corporate plans.
Human Resource Management: Is the total system of managing man/work persons (their talents, skills, experiences, attitude and entire capacities). Within the organization with a view to stimulating their utmost to contribute to achieving organizational set objectives.
Human Resource Manager: Is a manager and as such must perform the basic functions of management.
Selection: This is a systematic method used to identify the most suitable candidates to fill vacant position in an organization.
Recruitment: Is known as what number or kind of category of staff are needed by a particular organization and where to get such staff. The procedure of recruitment is usually based on the existence of a manpower or human resources planning. It usually entails the examination of the vacancy, consideration where to get suitable applicants form making contacts. With and attracting applications from applicants.