Effects Of Globalisation On Human Resource Practice In Nigeria

Project and Seminar Material for Human Resource Management (HRM)

Abstract

The purpose of this research work on the effects of globalization on human resources practices in Nigeria using private business organization in Alaba informal industrial sector in Lagos State as case study. Other objectives includes The identification of effects and how they have succeeded in opening up the Nigerian market to the rest of the world and posed the country as a favourable space for foreign investment. The study also describe the processes of these effects taking hold on the global and Nigerian local market and compared the traditional human resources with those of the globally influenced ones introduced. Survey research design was employed for the study and with aid of convenient sampling thirty-five (35) staff of businesses in Alaba informal industrial sector in Lagos State was selected as the participant of the study. The sources of data collection was both primary and secondary with the application of questionnaires as an instrument to gather the necessary data. The questionnaires were properly completed as well returned by only 60 respondent after being administered and this was a basis by which the primary data were collected. Data was analyzed using frequencies, mean and standard deviation. The hypothesis was tested using chi-square test statistical tool (SPSS v.2.3)and the result were similar to those of the responses drawn from the questionnaires. Findings of the study concludes that Globalization directly and indirectly affect the Human Resource management practices in Nigerian businesses. As globalization has brought about rapid changes in the HR policies of most organizations and has led to upward review of the income and compensation structure of most Nigerian organizations. The downside of globalization with respect to HRM is that it has led to the movement of highly skilled staff overseas. The study recommends among other organizations should maintain flexible human resource policies so as to reflect the changes in the global and local labour market. The era of reviewing HR policies within a rigidly stipulated long term period (say for instance, every 5years or 10 years) is over. It is essentially the dynamics of global forces that determines the frequency of such changes.

Chapter One

Introduction

1.1 Background to the Study

The question of globalisation is a question which cuts across centuries and even those it is one exacerbated by the advent of information technology especially the internet, it is a factor that has been around in respect to business and world development arguably up to the third millennium BC. It involved the close interaction of the world in terms of innovations, transportation, exchange of ideas and so on.

Globalisation has so far had bearings upon culture and religion and even the mode of governance. Every country now sees that it needs others even in the most seemingly unimportant of things like music and education. In terms of religion, the exchange of ideas has influenced religious believe so that even the most polarized of religions now try to exhume more of similarities than dissimilarities especially in the most popular of beliefs. In terms of business:

[g]lobalization is a term in business that refers to the integration of an organization’s operations, processes and strategies into diverse cultures, products, services and ideas. Because of its emphasis on diversity, globalization also has a deep impact on the way companies manage their employees(Jeremy Bradley)

This is the background to the present research we have set before ourselves here.

1.2 Statement of the Problem

Globalisation, while changing the world order in the aspects of military, education, communication, entertainment also bears upon the development of business. In this regard it expands the market of any product and services so that every business learns the workings of every market it aims at going into and carries out a campaign with informed themes on market. What this widening of markets for any business means is that employers have to bear in mind the factors of globalisation even up to the point of managing their employers. And if the research effort which has gone into this research is anything to go by, the effects of globalisation on Human Resources practices has not been studied before. This is the academic problem that has given birth to this research.

1.3 Research Questions

What are the direct and remote effects of globalisation on human resources management in Nigeria.
How has HR gained in these globalisation effects.
What are the previous Human Resources practices that Nigerian businesses have had to do away with as a result of globalisation factors

1.4 Objectives of the Study

The purpose of this research work on the effects of globalisation on human resources practices in Nigeria include:

The identification of these said effects and how they have succeeded in opening up the Nigerian market to the rest of the world and posed the country as a favourable space for foreign investment.
To describe the processes of these effects taking hold on the global and Nigerian local market.
The research, if time factor does not affect the content, compare the traditional human resources with those of the globally influenced ones introduced.

1.5 Significance of the Study

The research is greatly important in the field of human resource development and management in the Nigerian market. It opens up the employees management myths which has so far reduced employees performance and customer relations. With the widening of business to needing a global outlook, such a research as the present one will show that the understanding of the effects of globalisation will better equip managers with the needed skills to poise their organizations into a better suited one for the wider, more challenging global market.

1.6 Research Hypothesis

The assumption on which this research work is build is that globalisation directly and indirectly affect the Human Resource management practices in Nigerian businesses.

1.7 Scope of the Study

In studying the effects of globalisation on the human resource management practises in businesses, the research will focus on how this bears upon the Nigerian businesses specifically. In terms if business, attention will be paid majorly on the private sectors since they are the ones most flexible in terms of global development and changes.

1.8 Limitations of the Study

The major limitations of this work is the time factor which in it’s lack constituted a distraction in doing an extensive research on the many kinds of businesses in Nigeria with peculiar demands in employee management.

1.9 Definition of Terms

Globalization

refers to the transferring of goods and services, people, technological advancement, culture and information among countries of the world. It is the action or procedure of international integration of countries arising from the convergence of world views , products, ideas, and other aspects of culture”(Wikipedia).

Chapter Five

Summary, Conclusion and Recommendation

5.1 Summary

Survey research design was employed for the study and with aid of convenient sampling thirty-five (35) staff of businesses in Alaba informal industrial sector in Lagos State was selected as the participant of the study. The sources of data collection was both primary and secondary with the application of questionnaires as an instrument to gather the necessary data. The questionnaires were properly completed as well returned by only 60 respondent after being administered and this was a basis by which the primary data were collected. Textbooks, journals, articles, law reports, newspapers publications, were collected as secondary data, and also limitations to the study were indicated. Data was analyzed using frequencies, mean and standard deviation. The hypothesis was tested using chi-square test statistical tool (SPSS v.2.3)and the result were similar to those of the responses drawn from the questionnaires.

5.2 Conclusion

Globalization is an important strategic factor that influences organizations that compete for customers with high expectations for performance, quality, and low cost (Morrison,2005). Globalization drives people to change their ways of living, prompts firms to change their ways of conducting business, and, spurs nations to establish new national policies. In an increasingly borderless and globalised world, organization must be able to adapt and react proactively as well as rapidly to the demands and requirements of the changing environment in order to survive. In the case of the manufacturing firms, their main role will be to facilitate competition in an environment in which productivity and quality are important. At the macro level, the ability of the government to develop, utilize and allocate human resources effectively and efficiently is critical to enhance nation’s competitiveness. At the organization level, the skill sets of the workforce, potential of the workers to be trained and retrained and their ability to adapt to new technologies and work procedures will help to shape the organization’s competitive edge in this era of knowledge economy. The study therefore concludes that Globalization directly and indirectly affect the Human Resource management practices in Nigerian businesses.

5.3 Recommendation

Based on the results obtained from the study, it was recommended among others that firms and indeed all organizations should take cognizance of global market opportunities, global market uncertainty and global competitive threat most especially as they affect human resource practice

Additionally, It is now clear that the global environment changes very frequently and as such most organisations should maintain flexible human resource policies so as to reflect the changes in the global and local labour market. The era of reviewing HR policies within a rigidly stipulated long term period (say for instance, every 5years or 10 years) is over. It is essentially the dynamics of global forces that determines the frequency of such changes.

Nigerian organisations should pay competitive wages so as to reduce the exodus of skilled staff. The Nigerian government should step up its infrastructural development so as to ensure a conducive and safe environment for peaceful co-existence requisite for pursuit of personal and collective socio-economic objectives.

There is need to initiate policies aimed at encouraging Nigerians overseas to repatriate their earnings in form of foreign direct investment and/or help facilitate technology transfer. This is especially the case in the banking industry where most Nigerian banks are going global.

Project Material Download