The Impact Of Strategic Human Resource Management On Organizational Performance

Project and Seminar Material for Human Resource Management (HRM)

The Impact Of Strategic Human Resource Management On Organizational Performance


The subject matter of this study is the impact of strategic Human Resource Management in Organization. The purpose of this study is to determine the effectiveness of human resource management in organization, to determine the relationship between strategic human resource practice and firm performance and to examine the relationship between strategic human resource practices and firm performance and to examine the relationship among these strategic human resource management practice and demographic variance. Primary information for the study were obtained through questionnaire responses, secondary information (personal supplemented) where gathered from test book, seminar, and journals.

The finding of the study based on the analysis school that: there is a positive relationship between strategic hence resource management and organization performance. There is a significant relationship between sale per employee and strategic human resource management. There is a relationship between profit per employee and strategic human resource management. There is a positive and significant relationship between strategic human resource management and overall enhance organization operation.

The following recommendation were made in the basis of the above relations: the role of trust towards achieving service delivery should be addressed. Management should accept a service orientation for employee in order to meet their professional standard. Human resource management should be made in element of learning from secondary to tertiary contribution. The study conclude that human resource management is concerned in al the area of organization in order to obtained the needed stills and will motivated workforce in organizations.

Chapter One

1.0 Introduction

1.1 Background of the Study

Strategic Human resources management (SHRM) is concerned with contributions human resource strategies make to organizational effectiveness and the ways in which these contributions are achieved. (Jeff Erickson, Lee Dyer 2004) Therefore the aim of strategic Human resources Management is to ensure that the culture, style and structure of the organization and the quality, commitments and motivation of it employees contribute fully to the achievement of business objectives. According to Michael Armstrong, 1992, a strategic Orientation is a vital ingredient in human resource management. It provides the framework within which a coherent approach can be developed to the creation and Installation of Human resources management policies, systems, and practice. Strategic human resource means accepting the HR function as a strategic partner in the formulation of the company’s strategies as well as in the implementation of those strategies through HR activities, such as recruitments, selection, training and rewarding personnel. Where as strategic HR recognizes HR’s partnership role in the strategizing process, the term HR strategies refers to specific HR courses of action the company plans to pursue to achieve its aims (Siddhartha Chaturvedi , 2002)

Managing the human resources in the organization is the traditional responsibility of the personnel manager, a precursor to human resource management (HRM). Some scholars however equate HRM with personnel management, concerned with providing staff support in the organization (e.g. Guest, 1989). Other scholars consider HRM as a natural development of personnel management practices in the face of changing economic and business environment (Armstrong , 1989 & 2004, and Fajana 2002).The people –management discipline is undergoing continuous metamorphosis, with the recent emergence of strategic human resource management (SHRM) in organization and management Literature.

1.2 Statement of Problem

All scientific research is necessitated by a perceived problem. As such the desire and quest to set out and research on this topic –“the impact of strategic Human Resource management in first bank of Nig.Plc. Asaba main branch was aroused”.

As earlier stated, strategic Human Resources Management is aimed at ensuring that the culture, styles and structure of the organization and the quality, commitment and motivation of its employees, contribute fully to the achievements of business objectives, hence determining the extent to which these aims are achieved is also of paramount importance.

The problems may be stated as follows

  1. The demographic factors which consist of country population, supervising status, age, education, ethnic status, gender and change in unemployment.
  2. Problem of human resources management practice in terms of formal training system, performance approach , employment security , career ladders and broadly defined jobs

1.3 Research Questions

  1. What type of strategic human resource management policies is available to workers in First Bank Nigeria PLC?
  2. How often is development programmes mounted for workers in First Bank Nigeria PLC?
  3. What are the impacts of strategic human resource management policies on the performance of the workers?

1.4 Objectives of the Study

The main objective of this is to assess the strategic human resource management policy programme provided to the workers in First Bank Nigeria PLC, Nigeria. Specifically, the study intends to:

  1. Identify the type of strategic human resource management policies available to the workers in First Bank Nigeria PLC.
  2. Ascertain how often the development programmes are mounted for workers.
  3. Determine the impact of strategic human resource management policies on the worker’s performance in the First Bank Nigeria PLC.

1.5 Statement of Hypotheses

The under listed null hypotheses were tested in this study at 0.05 level of significance.

  • H01: There is no significance difference between the mean ratings of senior and junior employers regarding the type of strategic human resource management policies available to workers in First Bank Nigeria PLC.
  • H02: There is no significance difference between the mean ratings of experience and inexperience employers in respect of how often the development programmes are mounted for workers in First Bank Nigeria PLC.

1.6 Scope of the Study

Many organization spend a great deal time and money on strategic human resource management of their employee, however the management of some companies are often worried about the effectiveness of such strategic human resource management programmes in terms of content, method usefulness and desired to content, this research effort attempt to evaluate the impact of strategic human resource management on employees performance of term in the banking industries.

1.7 Significance of the Study

Training can result in improve individual dedication and job satisfaction as performance when training requirement are determined by analyzing the work to be done the manpower resources available and the present and future environmental demand or organization.

All new employees, regardless of their previous training, education and experience, need to be introduced to their new employee’s work environmental and to be taught how to perform specific tasks, moreover specific occasion, for training arise when job changes, and new skills must change introduced by advancing automatic.

As some employees respond to continue training, they can be progressively increase their value to organization and prepare themselves for promotion continue training can help employee to develop their ability to learn, adapting themselves to work methods, learning to use new kinds of equipment and adjusting to method changes in job content and work relationship.

1.8 Limitations of the Study

The bank under investigating, Guaranty Trust Bank had about 3,000 employee in the entire organization, it also has about 15 branches in Lagos due to the monetary and time constraints, the researcher limit the research to the Allen Avenue branch and training center also situated and it head office.

The study also does not intend to look into other factors that are known to improve employees job performance such as motivation of staff in terms of monetary reward fringe benefit etc.

1.9 Operationalisation / Definition of Variables

For the purpose of this study, a number of concepts would feature prominently and attempts will be made to define them within the frame work of this project.


This is the systematic acquisition of skill, concept or attitude that results in improved performance in an organizational setting.

Training Needs:

This represent the gap between the kind of performance an employee has and the kind of performance which is expected to have which can otherwise be bridged by systematic training.

Chapter Five

Summary, Conclusions and Recommendations

5.1 Summary

The aim of this study is to determine whether motivation is effective in achieving higher performance among workers in First Bank Nigeria PLC, other relevant areas which the study highlighted are: the reaction of the workers towards their duties when motivation is employed by the employer and how the managers can apply motivational theories of management in their attempt to direct the job behaviour of workers towards the goals of their establishment.

The general description of the area of study, which depicted the inevitability of motivation in achieving higher performance in an organization, was stated. In the course of the study, statement of problem such as; workers leaving the organization due to poor motivation, their unwillingness to perform their duties well and how to motivate them to achieving desired performance level were pointed out. To ascertain the application of the motivational techniques by the organization concerned and to know the problem inhibiting the success of the workers’ motivation in the organization forms essential part of the objectives of the study. Questions relating to the objectives and problems were also looked at.

The study looked into some review literatures that covered different models and theories on motivation by different scholars, various definitions given by several management scholars, different means of motivating workers or simply type of motivation and the importance of motivation. Various textbooks, journals, articles and other scholarly materials were used to get terms, ideas, concepts and academic as well as professional viewpoints.

The management team of First Bank Nigeria PLC, together with important officers of the organization were selected as the study population with the use of simple random sampling. Both primary and secondary data were also used for this research work. The primary data was based on questionnaire while the secondary data was based on published and unpublished works. The data collected were processed and analyzed through the use of t-test statistics.

5.2 Conclusion

Human resources (personnel) in any organization remain the most invaluable asset for growth and development, hence training and retraining is essential components of manpower development. Training and personnel development is a mixture of activities aimed at improving the performance of personnel in organizations for the attainment of continuous improvement in performance. Training and human development assists workers to learn how to use the resources in an approve way that allows organization to meet its desired output. Employee are required to perform varied competences in their profession that will make then saleable in the labor market. It is the possession of these skills needed by the labour market that will enable them contribute maximally to Manufacturing firm s in Lagos and national development of the Nigerian nation. However, for the organization and government to make training and personnel development to become effective in the service cycle, they have to tackle the challenges of introducing new orientations on training contents, training evaluation, attitudes to training and training utilization.

5.3 Recommendations

The essence of strategic human resource management in Manufacturing firms in Lagos cannot be over emphasized. It has been observed that training is very important in every aspect of an organization. It enhances the efficiency of employee, increases output and motivates workers for better performance.

It has been discovered that training and human development are not isolated from human resources. Even in the advanced countries and in most computerized organization, strategic human resource management cannot be overlooked because; human are the ones to operate this equipment.

From the findings, the following recommendations were made:

Organization is seen to be effective and efficient if there is demonstrable increase in performance, therefore, any training and personnel development must be based on proper analysis of its contribution to the effectiveness and efficiency of an organization. Employee should be expose to regular professional training areas such as foundation, career or development, preservice and off-the-job-pupilage training as to enhance their performance in the organization. It is also necessary for the employee to be exposed to seminars, conferences and workshops to enable them keep abreast with the challenges posed by modern business offices.

The development programmes of managers should be done on yearly or regular basis; hence training involves systematic, professional and development of skills, knowledge and attitude necessary for performing specific schedule of duties. There should be free flow of information to enable all the employee aware of the strategic human resource management policies available both internally and externally.

There should be effective utilization of integration of resources, physical and human will to yield high output or performance. Also, on-the-job and in-house methods of training should be used extensively by organizations and government, especially in the training of junior employee as they tend to be cheaper and more effective.

First Bank Nigeria PLC should also introduce reward system for outstanding performance so as to motivate workers to always put in their best during each training period. This will assist them in identifying those employee that has special skills and talents. First Bank Nigeria PLC should expose all their employee to training at least once in every year. This will make the workers to meet up with the changes in their services and work processes as may be driven by the competitive environment.

Instead of downsizing those workers with years of experience and recruiting new ones, Manufacturing firms in Lagos should rather invest in strategic human resource management of their experienced employee. This will help them to reduce the cost of frequent recruitment and selection.

The Impact Of Strategic Human Resource Management On Organizational Performance

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