CHAPTER
ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Over the years,
researchers have amassed a fair amount of empirical evidence that certain Human
Resources practices can directly firm perform. For example, studies show that
comprehensive selection and training activities are frequently correlated with
both productivity and firm performance (Terpstra & Rozeu, 1993). A message
frequently found in corporate mission statemtns and annual reports is that
humans are the most valuable resources of any organization.
Having the right
personnel to the survival and success of any organization. The recognition of
Human Resources Management (HRM) as a key source of competitive advantage
provides professionals working in the Human resources management, However,
presents professionals working in the area with a number of role changes and new challenges.
For example, the creation of more central strategies role for the human
resource function bring with it the
expectation that is not enough for Human Resource to simply partner top management;
it has to drive business success. Several artiques have been raised regarding
the value creation of human resources management (HRM) that is whether it can
contribute directly to the implementation of the strategies objectives of firm
and improve productivity in companies (Hope-Hailey 1997)
Supporting the Human
resources systems and internal fit view point (Arthur 1992, 1994) found that
Human resource practices focused on enhancing employees commitment (e.g.
decentralized decision making, comprehensive training, salaried compensation, employee
participation) were related to higher performance. Conversely, he also found
that Human resource practice that focused on control, efficient and the
reduction of employee skills and discretion were associated with increased
turnover and poorer manufacturing performance. Similarly, in a stufy of high
performance work practices, (Huselid 2002) found that investments in human
resource activities such as incentive compensation, selective staffing
techniques, and employee participation resulted in lower turnover, greater
productivity and increased organizational performance through their impact on
employee skill development and motivation.
Human Resource
Management (HRM) has been defined in several ways; According to Sikula (1997),
it is the field of study that encompasses all activities form finding employees
from employment to their full utilization at work and planning for them
retirement. Sayles & Staruss (1977) observed that, a personnel is concerned with organizational
policies for human resources management.
According to Adeoye
(2013) assert that out of the various factor in business organization
development MAN, MONEY, MACHINE & MATERIAL are important and the most
Unpredictable for example, money is scarce and difficult to get and you must
have good men around to manage it. Material and macine to use are very
important in Human resources planning because without the availability of these
items nothing is seems to be achieve.
Recognizing that Human
resource management is a sub-area of general management and that what human
resource managers (officers) do relate to management except that they
concentrate on manpower. In this vein Ubekul (1982) concluded that, human
resources management is defined by high-lighting the function of Human
resources management.
1.2 STATEMENT FO PROBLEM
Most
manufacturing companies of Nigeria face problems which often hampers the
attainment of set goals. The production of any public organization sector
depends largely on the perform of its people (that is, the management and
subordinate) for this success to be achieve, the human resource management in
the organization needs to be addressed and managed.
To that effect, this research is being
proposed to look deep into the role of human resource management and how its
role affects the productivity of labour in a manufacturing company addressing
the following issues:-
v Work
Motivation and Compensation
v Ethics
and Values
v Work
attitude
v Recruitment
and selection process
Human Resources Management occupies a
very prominent and essential position in an organization. In every personnel
managerial practice, the principal problem is that of individual diffenrence
source of Human beings are irrational and cannot be predicted. E continues that
there are problems human resources personnel facing in their organization and
he listed them as follow;
v Lack
of specialization of study among labour causes routine
v Few
trained employee are not well motivated
in terms of compensation and benefits expected to serve as social welfare.
v Incompetent
and unrealiable employee were employed by personnel and it make recruitment and
selection meaningless.
In view of the statement of problem
above the researchers finds it timely and
necessary to look deep into the effectiveness of human resources
management and labour productivity in manufacturing companies in Nigeria.
1.3 OBJECTIVES OF THE STUDY
The main objective of this study is the assessment of
Human Resources Management and Employee Productivity in Fan Milk plc Jericho
Ibadan. And the specific objective are to
a) To examine the effect of work motivation
and compensation on the productivity of public sector organization.
b) To identify the effects of Ethnics and
values on the productivity of public sector.
c) To investigate how human resources
management activity can increase labour productivity.
d) To identify the effect of recruitment and
selection process of workers on productivity of Public sector organization.
1.4 RESEARCH QUESTION
i. Is
human resource management necessary for effective administration in a
manufacturing company?
ii. Does
effective human resource management leads to higher labour productivity in manufacturing company?
iii. Does
work motivation and compensation by human resource management contribute to the
productivity in a manufacturing company?
1.5 RESEARCH HYPOTHESIS
The researcher uses hypothesis HO which is a test of no
difference
HO 1: There is evidence to prove that work
motivation and compensation contributes to the productivity of public sector.
HO 2: There is evidence to prove that Ethnics and
values contribute to poor productivity of public sector.
HO 3: There is a significant relationship to show
that work attitude of workers by workers affects the productivity of public
sector.
HO 4: There is evidence to show recruitment and
selection process of workers affects the productivity of public sector
organization.
1.6 SIGNIFICANT OF STUDY
Human Resource Management is the backbone of any economy
production of any Human Resource Management plays a vital role in the
productivity of the Nigeria public sector organization. It is therefore
important to identify the signifance of the research work which are subdivided
as:
1.) The finding of this research will serve as
a guide in the productivity of other public sector through their human resources.
2.) The finding of this study will enables for
proper management of human resources which will lead to effective customer
value and productivity in public sector organization management
3. It will also enhance government, private
sector and general public participation contribution in addressing these human
resource management in public sector orgnisaiton.
4. The study will enable me to contribute my
own views and ideas on managing human resource and productivity in the public
sector organization of Nigeria.
5. The study will be of immense help to
other people and students who might wish to carry out researches in the field.
1.7 SCOPE OF THE STUDY
The work is on Human Resource Management (HRM) and labour
productivity in a manufacturing company, with Fan Milk Plc as a case study. It
will cover the concept of public sector, examine Human Resource Management in
public sector, the impact of Human Resource Management on productivity in
public sector and also the challenges of Human Resource Management in the
public sector.
1.8 Historical Background of the Study
Fan Milk Nigeria Plc was founded in 1960 by a Danish
Merchant and Industrialist Erik Emborg with a recombination-plant at Ibadan, a
distribution centre in Lagos with less than 30 employees.
The current manager of organization structure of fan milk
plc from march 2004 – present is Adebayo Adekola personnel manager.
The plant produced fresh milk from imported milk powder.
Initially, the product range was white milk, chocolate milk, cottage cheese and
set yoghurt. The main outlet was bicycle vendors supplied with cold products
from a growing number of smaller depots.
In the 1970s Fan Milk introduced yoghurt drink, ice lollies,
ice cream and new Tetra Pak packaging technology. The new products became very
popular in the market and generated the financial strength to set up further
depots and, in 1981, a second recombination-plant in Kano came up.
At
the outset, the foreign partner owned 96 per cent of Fan Milk Plc. When the
government introduced The Nigerian Enterprises Promotion Decree in the late
1970s. Fan Milk Plc increased its capital and invited more Nigerians to invest
which created a 60 per cent Nigerian participation in the company.
During the 1980s and 1990s, import restrictions, economic
difficulties, devaluations and shortages of fuel weakened Fan Milk Plc. In 1998
the foreign partner and the industrialization Fund for Developing Countries
(Denmark) agreed to an infusion of capital which let the company restructure
finances, refurbish cold rooms, increase the number of depots and introduce a
product, Tampico, a fruit drink which became an instant success in the market.
The expansion and rehabilitation programme returned Fan Milk
Plc to profitability. Fan Milk has sister companies in Ghana, Senegal, Togo,
Benin, Burkina Faso and Code d'Ivoire. The headquarters of the foreign partner,
Fan Milk International is situated in Aalborg, Denmark.
Fan Milk Limited is a Ghanaian dairy retailer based in Accra. It has since begun operating in Benin, Togo and Burkina Faso.They are listed on the stock index of the Ghana Stock Exchange, the GSE All-Share Index. It was incorporated in 1960 and
was previously known as the Ghanaian
Milk Company. It took advantage of Danish investment in the early 1960s and initially specialised in
pasteurized milk. However, in 1962, the company changed its name to Fan Milk
Limited, and branched out into the production of ice cream, yoghurt and ice lollies. The name has since become a household name in Ghana, and
is a common sight to see ice cream carts and bicycles on beaches and the
streets selling the brand.
Fan Milk Limited was the first foreign invested company in
Ghana to become a Public Limited Liability in 1967 and among the first
Companies to be listed on the Ghana Stock Exchange on 18 October 1991 with the symbol
FML. As of 2003 it had over
3,250 shareholders.
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