The Problems And Prospects Of Personnel Management In Private Sector

Project and Seminar Material for Business Administration and Management BAM

The Problems And Prospects Of Personnel Management In Private Sector


The problems and prospects of personnel management as one may understand it have been in existence for quite a long time. It has simply been caused by some factors such as lack of adequate motivation. Lack of performance appraisal, (able of man power program, training and development.

This project therefore, will serve as a remainder to the problems of personnel in the private sector which is still till this moment eating deep into the fabric of our organization. The research for the above assertion has been that the personnel does not manage the human resources effectively and it has been disastrous because the personnel department of an organization is the rock amongst all other resources. The personnel staffs of an organization should no only be constant and adequate but also should be properly motivated appraised, trained and developed.

From the above mentioned reasons this research work will be a great contribution in trying to identify that areas of the private institution whose responsibility is to employ and manage the personnel and get them advised.

Also it will identify the existing problems and their prospects as well as in Emenite

Finally some suggestions and recommendations will be made on how best to minimized the problems of personnel management and ways to improve them.

Chapter One


1.1 Background of the Study

The role that education is expected to play in a society is multi-faceted. It is expected to build the character of the learner, to get him informed about what is worthwhile, socially acceptable, desirable and purposeful about himself, his environment and society. It is also expected to make the individual worth living and worth living with (Tella 1990). Education is not only a social service, but an instrument of political socialization that informs the learner as to his privileges and basic human rights (Taiwo 1980).

According to Ogunsaju (2006), personnel management is the effective mobilization of human resources based upon appropriate recruitment, selection, training and placement of appointed staff in order to achieve the organisational set down goals and objectives. It could also be defined as the effective utilization of human resources in an organization through the management of people and related activities. In the school system, both students and personnel functions are performed by school administrators with a view to achieving the goals and objectives of the school. The objectives of school personnel management are: to plan and direct activities necessary to select and assign staffs.

The best qualified individual staff and students; to provide opportunities for the growth in service for these individuals; and to maintain good interpersonal relationships (Orubuloye 2006). The primary objective of the school system, according to Nwagwu (2008), is to ensure effective teaching – learning process. For this objective to materialize, the school management must be able to plan, organize, direct, coordinate and control the activities of the staff and students in an atmosphere devoid of persistent and unresolved conflicts.

Therefore, Personnel functions are over emphasized which includes recruiting selecting, training, developing assimilating and remunerating employees so that the organization aims ad objectives are attained. That is why Flippo (1984) looked at personnel management as the planning organizing directing and controlling of the procurement development compensation, integration, maintenance and separation of human resources to the end so that individual, organizational and societal objectives are accomplished effectively and efficiently

1.2 Statement of the Problem

Personnel management usually go beyond demand and supply of human resources in an organization. The existing problem in this department trigger to mal-functioning of the department. There are constrains such as individual geographical and racial background, occupational, cultural, industrial differences and legal influence on employment decisions which jeopardize their objective. It is this problem that necessitate this project. The nature of the man power resources that are available has considerable influence on the degree of success that a personnel manager experience in filling job vacancies.

The composition of the labour force and its distribution also effect such personnel function as supervision, bring benefits, wages and salary administration and union relation. Infact, there is probably no function of personnel management that is not influenced in some manner by man power hand.

It is describable also to understand some of the changes that are taking place and their implication for personnel management.

1.3 Objectives of the Study

The objective of the study was to establish the problems and prospects of personnel management at Institute of management and technology, Enugu.

1.4 The Scope of the Study

This study on the problems and prospects of the personnel management is narrowed to the private sector with particular reference to IMT Enugu state. It is limited within the following departments: personnel/administration, financial/account department.

1.5 Research Questions

  1. Has there been optimum performance on the personnel management of IMT?
  2. Are there some factors responsible for low performance on the personnel department of the school?
  3. Do you think that high productivity and efficiency of the personnel department affect IMT labour turn over?
  4. Will effective and efficient practice of personnel management improve the institution as a whole?
  5. Are there factors responsible for low productivity and efficiency of the personnel department of the school?

1.6 Significance of the Study

This research study will be of great benefit to the whole enterprises both in the private and private sector. This is because the accomplishment of the objective as a personnel management is a key function in very organization which shows that the successful implementation of a development plan depends not just on the availability of financial and other capital inputs but more importantly on the adequate of trained man-power in the various occupation. In fact, the experience of most developing countries is that the shortage of skilled and executive man power could be a crucial constrains in the implementation of development projects.

It will also assist in man-power forecasting or predicting future requirement in personnel both in terms of demand and supply. This includes thorough assessment of the requirement for specific categories of man-power in the various activity areas of the organization which would include requirement to fill position in each man-power category as envisaged in a recruitment, fore casting, assuming no drastic changes in man-power mix, constrains and also requirements for meeting “wastage” through turn over, retirement, death, and promoting from one job to another. It also require an inventory of supply of various categories of man-power from all external sources as well as through internal sources including on the job training and upgrading.

The study will also be a great significant to the personnel department to identify the functions which includes motivation, employees to perform at standard, fostering good labour management relations, man-power planning, recruitment, selection and placement.

It also ad includes: Training and development, wages and salaries, administration of transfer, promotions and lay-off, discipline and discharge. Additionally, the personnel department is also often charge with responsibility of health and safety, employees benefits and services, organizational planning personnel and behavioral research.

The economy is not forgetter, since national economy applies to individual are organization, non-organization can survive for so long or achieve its objectives efficiently without a proper knowledge of its strength and weakness in terms of its staffing position.

1.7 Definition of Terms


This is the employment and application of both human and material resources to achieve the objective of an organization in the most economical way.

Personnel Management:

It is defined as the deployment and development of people within an organization so that the objective of the organization will be achieved and adapted within the changing circumstances and conditions. It deals with bringing of a person into an organization, studying his behavior in the work situation, interest and relationship both with his fellow workers and the organization.


This is that part of management whose job is the implementation ad interpretation of the policies made by top management.


It is a group of people bound together to provide to provide unity of action for the achievement of predetermined objective.


This is defined as the intended goals which spell out the scope and suggest the direction of efforts of organization


This is an incentive give in cash or in kind to an employee or group of employees geared to wards getting the best from them.


Training is defined as the organizational effort aimed at helping an employee acquire basic skill required for the efficient execution of the function for he hired.


It is the activities undertaken to expose an employee to perform additional duties and assume positions of importance in the organizational hierarchy.


It is an act that involves directing and inspecting workers and other materials resources to attain efficiency in an organization. It is also at the lower level of management.


It refers to the number of staff working or available to work in an organization.


They are rewards for performance or for consolation, it can be either cash item as salary allowances, Christmas bonus or in non-cash items like car, product of the institution.


This is the scientific study of the name and development of society and social behaviour.


This is the science of study of the mind and how it functions or mental characteristics of person or group.


This is the science or principles of the production distribution and consumption of goods especially with regards to cost or it is a condition of a country as regards to its wealth


It is the force that increase the rate of development of a process.

Chapter Five

Summary of Findings, Conclusion and Recommendations

5.1 Summary of Findings

The study sought to establish problems facing human resources managers at Institute of management and technology, Enugu. The researcher held face to face interviews with the respondents to collect data using an interview guide. The private sector is a labour intensive institution with a wide diversity of position types requiring a broad cross-section of skill sets, professional training, and academic preparation. From the study it was established that the human resource managers experience various problems when carrying out there functions.

There are policies and procedures which curtail recruitment such as delayed information from line managers on staffing requirements for departments. At Nigerian Private sector canvassing for positions especially by influential people is common thus compromising the recruitment and selection process. There is a challenge in recruitment emanating from the increased demand for specialized health care and inadequate financial resources to meet these demands, leading to cost cutting and hence understaffing in the private sector.

There are problems related to training and development at Institute of management and technology, Enugu since each group in the private sector has different training needs, preferences and learning potential, training is expensive hence underestimating staff training needs and requirements. Evaluating training programs to send employees, carrying out training needs assessment and cost benefit analysis also poses a great challenge. Lack of employee satisfaction due to poor pay leading to industrial action, poor working conditions are also a challenge which causes staff grievances. Unresolved grievances result in tense atmosphere. Managing diversity Nigerian Private sector is a challenge especially due to the large number of employees from different backgrounds, ethnicities and diverse social and economic situations of employees. There are also powerful subcultures in the private sector based on occupation and specialization for example, physicians, nurses and pharmacists have differing interests, managing these differences and orientations is a challenge to the human resource managers.

Human resource managers at Institute of management and technology, Enugu have to contend with manual systems of record keeping which a challenge is since they have not computerized systems. Other problems include lack of a sense of ownership of the work and responsibilities by employees, low staff morale, poor working environment and high turnover among the more highly experienced staff.

At Institute of management and technology, Enugu, payroll budget is fifty to sixty percent of the total operating cost, covering this huge budget is a challenge to the human resource managers considering the restricted financial allocations from the government and staff persistently engaging in industrial action. There is limited capacity and authority of the human resource department to mitigate problems hindering human resource development in the private sector. Institute of management and technology, Enugu lacks a proper system for performance evaluation which has allegedly limited the human resource manager’s ability to evaluate competencies and performance of staff.

5.2 Conclusion

Institute of management and technology, Enugu being an important referral and teaching private sector requires an efficient personnel management function to support the role of the private sector in health care service delivery to the nation. Sound human resources management practices are essential for retaining effective professionals in the private sector. The central focus of the human resource department should be to contribute to the success of the private sector. Having an efficient personnel management function system to provide accurate and timely information for human source planning is crucial.

The human resource managers face enormous problems. Given the complexity of the services the private sector provides, the role of the human resource managers and those who combine the role of human resource management with other responsibilities should not be underestimated. The management of the private sector should provide managerial support to the managers with personnel management responsibilities as an effective mechanism to improve employee motivation, job satisfaction and retention. Managerial support includes but is not limited to coaching and mentoring staff, supporting continuing education pursuits, and mediation between staff and administration. Human resource managers also have a leadership role, which is an essential component of employee retention, particularly through encouraging an atmosphere of autonomy and shared governance, in addition to empowerment and group cohesion.

Offering continuing education, training sessions and implementing professional clinical/career ladders can be an effective measure for improving retention and improving health worker efficiency and can lead to scaling up of productivity. Training and continuing education are forms of non-financial incentive which allow employees the opportunity to advance their careers.

5.3 Recommendations

To enable the private sector deliver good quality, safe healthcare, improving human resources management is critical. Personnel management is a discipline which requires a distinct knowledge base and training and there is therefore a need to expand human resource professional knowledge and competencies to perform well especially among departmental heads who play a vital role in personnel management and provide supervisory support. The management should proved further education or training to the clinicians who assume human resource management responsibilities. This is necessary to increase their competencies for the effective management of human resources.

Differential training is necessary given that various categories of healthcare professionals have differing skill requirements. The private sector should device a framework for meeting training needs to enhance performance. The human resource function should provide development opportunities for its staff that include mentoring, career counseling and supervisory development opportunities.

The human resource managers should formulate plans and policies to ensure retention and maintenance of competent staff in the private sector. This can help reduce incidences of labour turnover and save the private sector from incurring unnecessary recruitment costs. Retention progrmmes aimed at creating incentives to motivate employees to perform better and to create job satisfaction, they include offering permanent employment, seminars, trainings, and education programmes. Managerial support is an effective mechanism to improve employee motivation, job satisfaction and retention. Managerial support includes but is not limited to coaching and mentoring staff, supporting continuing education pursuits, and mediation between staff and administration. Managers also have a leadership role, which is an essential component of employee retention, particularly through encouraging an atmosphere of autonomy and shared governance, in addition to empowerment and group cohesion.

The management of the private sector in conjunction with the human resource managers should spearhead the adoption of new technologies. Such technologies include the computerization of human resource records and adopt current personnel management information systems. Embracing information technology will result in

improved records management and increase efficiency. These human resource information systems will lead to significant advances in the delivery and quality of services. As these advances are implemented, employees should receive orientation and training to effectively and efficiently use them.

Employee involvement and recognition is strongly associated with the adoption of quality and efficient management practices. There is strong association between employee involvement and the development of a strong customer focus, building knowledge and intellectual capital. Employee involvement is significantly related to ensuring high levels of quality and responding quickly to change. The human resources managers can adopt practices that encourage employee involvement, recognize, applaud and reward individual effort. This can lead to positive outcomes such as low staff turnover and better employee performance.

A proper performance evaluation system should be instituted and sensitization of employees on the need and importance of performance appraisal conducted. The performance appraisal system should be one that allows human resource leaders look at both employees’ present performance their potential and passions and align these with their responsibilities as much as possible. Workers should also be given an opportunity to set targets and discuss these targets with their supervisors in order to improve commitment and effort to achieve the set targets.

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