Personnel Management As A Life Wire An Organisation (A Case Study Of International Tobacco Company Ilorin)

Project and Seminar Material for Business Administration and Management BAM

Personnel Management As A Life Wire An Organisation (A Case Study Of International Tobacco Company Ilorin)


People as seen in an organization are the key to either success of failure to the objectives of such organization, in which personnel management Is the responsibility of all those who manage people (which the frame work) as well as giving a description of the work to those who are employed specialist, it concerns itself with understanding the position of the employee in an organization as it affects all objectives.

It recognizes the human factors of an organization which is the life wire and implements plans, policies in a way to achieve the purpose.

In the course of this study, how personnel management works in an organization how effective the personnel management benefit of personnel management and the function of personnel management will be discussed which

I believed will help companies both in private and public sector.

This project will be in five (5)

  • Chapter one will deal with introduction aims and objectives, scope of the study, significance of the e.t.c
  • Chapter two will deal with literature review i.e analysis of relevant text on the study. Here theories propounded on personnel management by scholars comments and views of the author will be reviewed.
  • Chapter three will deal with research methodology, instrument or tools used the samples size and sampling method employed.
  • Chapter four will contain method of data collection and analysis of data.
  • Lastly chapter five will contain summary, conclusion and recommendations to the problem examined.

Chapter One

1.0 Introduction

1.1 Background of the Study

Recently managers in organization began to realize the importance’s of human elements in the achievement of set goals and objectives. Rather, two much emphasis and attention were focused on the material resources (both Agricultural and Mineral Endowments) while less attention are paid on the workforce (human resources workers).

However, there is swift shift in attention from material resources to human resources among few managers. Although, of all resources available to human an organization, people remain the most important, most valuable yet most complicated, least understood and most difficult to predict.

Therefore “personal management” is primarily concerned with the study of the human resources available to an organization i.e. how to get the right people, at the right time and at an economic price to carry out some functions expected of them.

Moreover, we can define personnel management as the management of people (human resources) at work.
We can also define it as “the recognition of the importance of an organization work place as vital human resources contributing to the goals of the organization and the utilization of several activities and function to ensure that they (human resources are used effectively and fairly for the benefit of the individual organization and society.

It is eth employees who determine what to produce (goods and services), the quantity that may be required by the users, what mix of the different varieties of raw materials needed, when to produce, where to sell and at what price.

The basic or traditional functions of personnel department include the following;

  1. Job design and job analysis
  2. Manpower planning
  3. Staff or Employee Acquisition – Recruitment, Selection and Placement.
  4. Job Evaluation
  5. Wages and Salaries Administration
  6. Employee Performance Appraisal
  7. Training and Development
  8. Industrial Relation and Joint Consultation
  9. Employee welfare (occupational health and safety)

However, modern personnel management performs other roles in the industry, which include motivation and organizational development.

Furthermore, personnel manager also deals with the human aspect of management. No study of management is complete without taking human behavior and attitudes into considerations. It is right said that “nothing is superior to man” not even the machine, computer robot or any other valuable.

Personal Management

Personnel manager who is the head of the personnel department is fully responsible for maintain and improving the human relationship between management and personnel (employees). Also, during a period of time an organization losses some off it employee through death, retirement, dismissal and other causes. These people have to replace.

Besides as an organization grows it required more employees.

Therefore, the objective of personnel management includes

  1. To attract and secure appropriate people capable of performing effectively the organization’s specific task.
  2. To utilize the human resources effectively and efficiently.
  3. To generate maximum individual development of the people within the organization.
  4. The personnel department, headed by the personnel manager should be able to obtain capable heads through selection and should be able to visualize development in such recruited individual in the light of future higher position which to be filled by these recruits.

Again, personnel management in real term involves planning at the early stage, control, supervisor undertaking risk and handling uncertainty. Hence, a manager assemble the best work team which is he can obtain and provides supportive motivation environment to guide that team to accomplish agreed upon objectives. These objectives may include manufacturing or production of certain product by sole proprietor or groups of people or even public sector.
In a very small organization like private sector line management does the hiring’s then training where possible, the discipline and the firing. It also established the rates of pay. At times, as a result of pressing for more production and sales, the sole proprietor does not well developed a well rounded comprehensive personnel programme.

The situation in a large organization is not the same a large organization like public corporation is established and controlled by the government through the board of directors of governing council. Such organization is very large and complex in nature. They are specifically created to provide certain essential services which are not expected to be discharge on a commercial basis either because of huge capital involved in such activities or because of political and social reason.

It is not possible as it could be in a very small company for a single man and his live manager in very large organization to handle adequately the many complex personnel management problem without specialized knowledge and help. In essence, there is a need for the establishment of personnel department headed by personnel manager.

Personnel management also takes control over financial issues or the identification of new technique developments. Whether an organization loose or gain in the market depend to a large extent on the quality of its personnel.

Finally, an organization is held together, directed and made to function by managers and management, whether in business ventures, college or hospital or the country highway department whether as trainees or the big boss.

1.2 Objectives of the Study

The aims of this research are to find out why personnel management is a live wire of an organization. The objectives will include the following;

  1. To need for and uses of personnel management as a life wire in an organization
  2. To show how human are managed in pales of work.
  3. And to show the role of personnel management in an organization.

1.3 Scope of the Study

The area of study of the research is international Tobacco Company Limited, Ilorin in Kwara State. The researcher will therefore study how personnel management works in an organization. How effective is personnel management in an established organization.

1.4 Significance of the Study

The role of personnel management cannot be over emphasize in an organization. The personnel manage ment plays significant roles, which will be discuss. One of the significant of the study is that it will help companies, both private and public sector on how effective is personnel management work.

In short, the result of these findings would serve as a guide to various organization that are largely and keenly interested in personnel management.

1.5 Historical Background of International Tobacco Company

International Tobacco Company is situated along Offa Garage Road, Ilorin Kwara State.

The company was firstly registered and established on 8th November 1962 as a private company under the name of Kwara Tobacco Company Limited. Erection of fact -0ory office and installation of machineries hook during 1963 on a site in the industrial area in Ilorin. The production, sales and marketing of cigarette really started in 1964. The company was commissioned by His ., factor was located in Ilorin Kwara State in response to the government programme to provide economic stimulus in that northern parts, the means of tobacco cultivation manufacturing operation and consequent local employment. The creation of the company served to accelerate healthy competition in growing market where there was only one cigarette manufacturing company.

As at 1962, the company was owned by the United Africa Company Ltd. The UAC is a large organization that has been established for many years in Nigeria with a wide interest throughout the company for example, Northern investment affiliated to UAC was a company based in Kaduna, making investment in various industries with money provided by the common wealth development cooperation in London and the Northern Nigeria Development Corporation.

By April 1967 the company found itself in need of cigarette manufacturing marketing and management known how as well as capital to continue and develop its operations.

They incorporated the leading international Tobacco company base in the United State to purchase a controlling interest in the company. In 1969, the company’s name was changed to Philips Morris Nigeria Ltd to reflect the substantial investment made by the America firm.

The study conducted shows that Philips Morris is worldwide. It manages the network through six operating company namely;

  1. Philip Morris USA
  2. Phillip Morris Industries
  3. Seven – up company
  4. Philip Morris International;
  5. Mission Viego Company
  6. Miller Brewery Company

Phillip Morris has its headquarters in network USA. It has interest in the area of printing, brewing razor blades, confectionery as well as cigarette manufacturing. Many of these activities are carried on in other parts of countries especially where all matters relating to all management staff. They do this by having liaised with the Nigeria joint industrial council and the institute of personnel management. Personnel managers are allowed to handle union negotiation on the welfare of staff.

The company’s present business consists of the manufacturing at its Ilorin factory and sales in the country of well – known cigarette brand. Example of the cigarette brands produced in Ilorin include Green spot, Big Town, Target, Link, Multifilter to the various sales office all over the company. The company sales officer are found in Jos, Kano, Gusia, Benin, Ibadan, Kaduna etc. It is hoped that in the near future more branches may be introduced to take advantages of the already expending market shares of the company. The company markets its produce through a network of independent Nigeria distributors.

However, the name, the “Philip Morris Nigeria Ltd” was changed to international Tobacco Company. The reason for this is that formally, the company was owned by three groups with the shareholder of which two of them are British and Lebanese while the third one is a Nigeria. Later one of them decided to sell out its own share and was sold to the Lebanese who now have the major share. During the Annual General Meeting (AGM) with the Board of Director and the rest of the share holder as agreement was made to change the name of the company to International Tobacco Company.

1.6 Definitions of Key Concept

There are certain key concepts in this project for which definitions have been provided. These concepts are job deigns, manpower, job evaluation, training and development, wages and salaries administration, job analysis etc.

1. Job Design

This means delineation of tasks or responsibilities as dictated by organizational strategy, technology and structure. The essence of job design is to check the incidence of uneven productivity, growth or as in business sector eroded product quality and decling employee’s satisfaction. Essential job design is focused on two main strategies: (a) fitting people to job (b) fitting job to people.

ii. Manpower

This involves the development and implementation of plan and programme to ensure that the right number and types of individual are available at the right time and plane to fulfill organization needs.

iii. Job Evaluation

This simply refers to a systematic process to ascertain the work of a job vise and vise jobs. This purpose of this is with a view in determining the worth of that job in numeric terms.

iv. Trainee and Development

After performance appraisal it may be discovered that poor performance is as a result of inadequate skills and ability of the employee.

Thus, steps have to be taken to improve such skills and ability through training and in care of management is known as development.

v. Wages and Salaries Administration

This can be defined as part of total compensation packages. This may broadly be divided into two namely: intrinsic rewards and extrinsic rewards.

vi. Job Analysis

Is the process of determining, skills, abilities, and responsibilities of the job.

Chapter Five

Summary, Conclusion and Recommendations

This chapter presents the summary, the conclusion and the recommendation to the findings, what has been deduced in the previous chapters.

5.1 Summary of Findings

This research work, as its topic suggests studies the personnel management as a life wire of an organization, a case study of International Tobacco Company Limited, Ilorin.

Despite the problems encountered at the time of collection and gathering of information, the researcher still worked tirelessly and relentlessly for months collecting and gathering some necessary data on the topic so as to make this research a completely successful one.

The whole research was divided into five chapters.

In chapter one, the introductory part of the research was highlighted, the back ground of the study, objective of the study, the scope of the study, the significance or the study, chapterization historical background or the area of the study and the definition of key concepts. All these are in chapter one.

The second chapter, which is literature review, was divided into sub – reading. The scholars view on personnel management was highlighted, the benefits of personnel management in an organization was also given. Also function of personnel management department was also explained.

In this chapter questionnaires was constructed and was distributed to the staff of the company. Also both the primary and the secondary sources of data collection were used in the research.

Chapter four, dealt with presentation and analysis of data collection in the field. Also percentage was used in the analysis of data.

5.2 Conclusion

In the course of this research conducted there are a lot of challenges confronting personnel management in I.T.C
Firstly, accommodation is one of the greatest problems that hinder the effectiveness of personnel manager in International Tobacco Company. The personnel manager who happens to be Nigerian were not provided with a well furnished and well ventilated building, while the foreigners are always given decent and best house with all the best necessary facilities needed. This is a demonstration of apartheid. Not only that, Nigerian manager that secure employments are transferred to any area of the company specially where they do not know anybody so, the wrong people are appointed to the right place and time.

Furthermore, ethnicity pressure is another problem facing the International Tobacco Company Limited Ilorin. Once the factory was sited, the people in the area concluded that company belongs to them. Therefore, they strongly believe that key staff must come from the people of that ethnic group origin. This has tended to frustrate the recruitment process and promotion two. Incompetent and in experience manager under the umbrella of ethnicity pressure are employed. Consequently, moral and productivity level of the organization decline.

Again, the activities of trade union also hinder the effectiveness of personnel management in International Tobacco Company Trade union may place restriction upon management freedom of action, unilateral action and individual dealing with workers, wage adjustment hours, and the condition of worker are no longer possible. For instance, the union usually want to introduce rigid rules preventing one man from doing another man’s work. Trade union is in a strategic position to complete with management for the loyalty of employees. Trade union may try to claim credit for any improvement in wage or vacation.

5.3 Recommendations

Based on the findings from this research eff. and they may not accommodation easily of course both Nigerian and foreigners ought to be treated equally.

Secondly, low level of education is a very high problem that could easily disrupt the roles of personnel managers employed. Most of the expatriates employed are very qualified. Some of them have job experience than Nigerian managers. The foreigners who belong to multi national organization are usually treated better with regard to condition to service. They earn handsome salary and inducing allowance. This created some conflict between the Nigerian manager and the foreigners.

Again, another problem confronting the International Tobacco Company is selection and placement problem. The process of selection and placement create problem to the personnel manager is an organization. The reason for this is that too much applicants are looking for a very few jobs. Once the manager is charge of a particular organization is known, his friends, ex-school merles, relation and two men and two men and women bombard with letters and note a empty applicant. Really, it takes a big nerve to bluntly say no, each time such roles or letter are received tribalism and nepotism are engendered by this problem only. The applicants who have God – fathers are employed. In this wise a better qualified applicant may be refused the job art, some recommendations have been considered vital to improve the work of personnel management in International Tobacco Company.

Firstly, the personnel management must change improve on its knowledge and skills as the society changes. Government must establish personnel management course in various tertiary institutions so as to train personnel manager as well. Facilities should also be provided to these various institution of higher learning. This will allow government, company and industries to spend less in employing the expatriates who kind to be doing nothing in the country except enjoyment.

Again, everyone involved in the personnel management of I.T.C is expected to be more honest devoted, dedicated, and realistic highly objectives in his approach to the performance of his duties as personnel manger of the company.
Furthermore, tribalism, favoritism and nepotism should be completely disallowed in the process of selection and placement of staff in this case a better qualified applicant will be appointed to the right place at the right time, so there should be no particularity.

Finally, a good incentive should be provided to personnel manager, this make the personnel manager to give out his best.

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