Human Resource Management and Employee Performance
Human Resource Management and Employee Performance
Human Resource Management and Employee Performance
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Abstract: The study on human resources and the performance of employees in an organization have taken
different faces of attention amidst various scholars and professionals in recent past, but this study dwells on the
effectiveness of human resources in achieving a better employee performance. Based on this premise, the study
examined the effectiveness of human resource management in achieving employee performance in The Federal
University of Technology, Akure. The study examines effectiveness of training and development in enhance
employee skills, knowledge and attitude to work and evaluate effect of promotion exercise on labour turnover.
Survey method was adopted in gathering data and the data collected were carefully analysed using descriptive
statistics such as frequency distribution, percentages, mean, standard deviation, relative importance index and
chi-square in testing of the research hypotheses.The study shows that there is a significant relationship between
human resource management and employee performance as all tends to have a significant effect on each other.
The study concludes that training and development of staff should be a routine activity irrespective of the cadre,
and promotion exercise is free from biased. The study therefore recommends that effective training and
development, and promotion exercise truly enhance employee performance.
Keywords:Employee Performance,Human Resource Management, labour turnover, Training and
Development, Promotion Exercise.
I. Introduction
One area of an organizational performance is the management of workers in an organization. An
organization basically in both private and public sector depends on certain resources such as men, material,
money, machine and information resources. It is through the combination of these resources that the attainment
of an employee performance can be achieved. However the most significant and complex component for the
attainment of performance in an organization is the human resource.[1] opined that „„human resource is
primarily concerned with how people are managed within organizations, focusing on policies and systems‟‟.
Human resource departments and units in organizations are typically responsible for a number of activities,
including employee recruitment, training and development, performance appraisal and rewarding (e.g.,
managing pay and benefit systems). [2], also define human resources management as „„the process of analyzing
and managing an organization‟s human resource needs to ensure satisfaction of its strategic objectives‟‟. Which
implies that an organization can achieved its stated objectives and goals if and only if the human resources are
analyzed and manage effectively. [3]in his own view sees human resource management as the policies and
practices involved in carrying out the people or human resources aspects of a management position including
recruitment, screening, training and appraising.
Human resource composed of individual working for an organization, employed these days as
permanent staff, temporary staff, or contracted staff but collectively making up the most important aspect of
organizational resources. Therefore, an organization must have the right number and types of employees who
must be managed in such a way that they will be able to achieve their personal objectives and organizational
performance. Since the early 1980s, the field of human resources management has been in a state of rapid
transition. As the world continues to experience profound changes, different sets of changes are revolving.
Today, most managers are comfortable with the term “Human Resources” but a few still prefer to refer
employee as “personnel”.[4] concur at one level that terminology may be deemed to be less important, because
it is practice that really counts. However, at another level he argues that it‟s also of importance in the sense that
ways of managing people at work have come a long way in the last fifteen years, and a refusal to use the modern
term “human resources” can be an indication of a failure to recognize and utilize recent development. Therefore,
for an organization to achieved its objective effectively and efficiently, human resources which is viewed as the
most active agent of all its resources must be given due recognition. Employee performance plays an important
role for both an employee and the organization at large. [5]is of the opinion that employee performance is
looked at in terms of outcome and behavior of an employee. Hence, employee performance is what an employee
does or does not do. Against this background, the study tends to examine the effectiveness of human resources
in achieving employee performance.
The primary purpose of any organization is to accomplish goals and objectives and since the degree of
accomplishment depends totally on the quality of its members of staff therefore, it involves the availability and
improvement of human resources. To this end, for an organization to achieved adequate performance, it must
ensure adequate supply of human skills. Following the growing technological changes and complexity in
various organizations as well as social factors, it then becomes necessary that organizations should train and
develop their personnel to cope with ever increasing job requirements posed by fast technological and social
changes.
From an organizational perspective, most organization do not make adequate provision for training of
their employee and also do not send workers for the right kind of training programme to enhance their work
productivity [6]. Studies conducted by [7], shows that most workers are not being promoted from their previous
status which is an indication of poor motivation for workers and this influences their level of job
performance/productivity. Also, the recruitment of unskilled personnel often lead to high turnover [8].
Studies on training and development, promotion exercise in achieving employee performance are no longer new
in the field of human resource management but in spite of the attention, it continues to generate extreme
dissatisfaction for employees‟ performance. In other words, limited studies have been carried out regarding the
effectiveness of human resource management in achieving employee performance in an educational sector.
Evidently, a gap exists in the literature regarding training and development, promotion exercise in achieving
employee performance in FUTA which this study tends to fill. Hence, this study examined the effectiveness of
human resource management in achieving employee performance with a special reference to FUTA.
The aim of this study was to examine the effectiveness of human resource management in achieving employee
performance while the specific objectives are to;
(i) examine the effectiveness of training and development in enhancing employee skills, knowledge and
attitude to work in FUTA and;
(ii) evaluatethe effect of promotion exercise on labour turnover in FUTA.
1.1 Research Hypotheses
H0: effective training and development has no significant effect on employee skills, knowledge and attitude.
H0: Promotion exercise has no significant effect on labour turnover.
knowledge of people. Human resource management therefore may be defined as an effective and efficient
utilization of productive resources at work.
2.1.2 Conceptof Employee performance
In an organizational concept, performance is usually defined as the extent to which an organizational
member (employee) contributes to achieving the goals of the organization. Employee performance plays an
important role for an organizational performance. Hence, employee performance is originally what an employee
does or does not do. [5]is of the opinion that employee performance is normally looked at in terms of outcomes.
However, he stated further by saying it can also be looked at in terms of behaviour.[15] noted that performance
of an employee include: quality of output, quantity of output, timeliness of output, presence at work and
cooperativeness. In conclusion, employee performance could be simply understood as the related activities
expected of an employee and how well the activities are executed.
2.1.3 Training and Development
[16] is of the opinion that organizational growth is closely related to the development of its human
resources when employees fail to grow and develop in their work, stagnant organization most likely will result.
A strong employee training and development programme does not guarantee organizational success, but such a
programme is generally found to be successful.
The heart of the development process in most organizations is composed of on the job and off the job
activities that teaches employees new skills and abilities. Because modern managers recognize the benefit
derived from the training and development process, expenditures for employee education are at an all-time high.
The rise in employee education has been accompanied by growing professionalism in the training field and a
demand for competent, quality trainers.
[17]concur that the right employee training, development and education at the right time, provides big
payoffs for the organization in increase productivity, knowledge, loyalty and contribution. Also [18] assert that
training and development is a process that attempts to provide employees with information, skills and
understanding of the organization and its goals. Additionally training and development aids an employee to
continue to make the necessary positive contribution to the success of employing organization in terms of his /
her good performance on the job.
[19] assert that training and development are indispensable strategic tools for effective individual and
organisation performance, thus, organisation are spending money on it with confidence that it will earn them a
competitive advantage in the world of business. However, for any organisation to achieve its stated goals and
objective in this competitive world, adequate and relevance training and development of staff cannot be over
emphasized.
[19] in their study which was carried out among members of some selected banks in Lagos State,
South-West Nigeria shows that induction and orientation is effective in equipping employees with the practice
and core value of the organisation and what is expected of them to do. In addition, mentoring, coaching, job
rotation as an element of training and development enhance employee performance. Therefore, it was concluded
that behavioural training techniques have a significant effect on employee performance and organizational
effectiveness.
Similarly, in a framework carried out by [20] on employee development and its effect on employee
performance, he opined that employee development means to develop the abilities of an individual employee
and organization as a whole. Hence employee development consists of development of individual or employee
and overall growth of the employee of an organization. Therefore, there is a direct relationship between
employee development and employee performance. [20]opined that as well as when employees would be more
developed, they would be more satisfied with their job, more committed with their job and their performance
would increase and when employee performance increases, this will lead to the organization effectiveness. He
formulated a model which explains the relationship between employee development and employee performance.
Employee performance as a variable depend on employee development. Employee development variable is
operationalized by the following sub variables: employee learning, skill growth, self-directed, employee attitude
and behaviour which will automatically lead to organizational effectiveness. The study concluded that
development of an employee will result to an employee performance and which will automatically lead to the
effectiveness of an organization.
Similarly in a study carried out by [21] on „„Modelling the Relationship between Motivating Factors;
Employee‟ Retention; and Job Satisfaction in the Nigerian Banking Industry in which one of the main objective
of the study was to examine the correlation between promotion and fringe benefits towards theretention of staff
in the banking industries. The study was conducted in Abeokuta Ogun State Nigeria among 10 financial
institution and the findings indicate that the effect of promotion on employee retention is positive with the
regression weight of .185 (p<0.001). When promotion goes up by 1 standard deviation, employee retention goes
up by 0.185 standard deviations.
As one would have expected, promotion tends to serve as a motivating factor for employees to remain
on their jobs for a long period of time. This could be accepted because when employees look forward for their
promotion and they get it as at when due, it then creates an enabling environment for better performance. This
study suggested that decision makers should incorporate these variables (salary and promotion) into their
employment relations strategies. [21]
2.2 Theoretical Framework
Themotivational theory adopted for this study and has been explained by [22]includes the Abraham
Maslow‟s Hierarchy of Needs, Alderfer‟s ERG theory, and Herzberg‟s Movitator-Hygeine theory. To this could
be added McGregor X and Y theory as opined by Armstrong 2002. Abraham Maslow‟s and McGregor theory
discussed about self-actualising workers. According to Maslow, the needs that people are motivated to satisfy
falls into a hierarchy.Physiological (food, water, and sex), safety (security) and social (friendship) needs are at
the bottom while the self-esteemed and self-actualisation needs are at the top. In general, the Abraham Maslow
lower needs must be satisfied before higher level needs must be met.
Alderfer‟s ERG theory work on Maslow‟s hierarchy needs theory by reducing them to three: existence
[E], relatedness [R] and growth [G] (Porter et al., 2003). However the two theories could be said to be
analogous; existence relates to survival and safety; relatedness to belonging and self-esteem (and ego); and
growth to the development of human potential as in self-actualisation [23]. Where Alderfer did add to Maslow
was in the recognition that not only was there a satisfaction/progression relationship, there was also one of
frustration/regression. This could mean, for instance, that an employee could reach a sense of high self-esteem,
lose their job and regress to survival mode, in other words, one state does not necessary lead to another, the
element of the hierarchy can change, retrench, regress, and also co-exist [22].
Herzberg‟s Motivation-Hygiene theory, also called the Two-factor theory, looked at employees‟ levels
of job satisfaction within an organisation, or more precisely the nature of the work itself and how it has the
potential for arousing both satisfaction and dissatisfaction. Motivators arousing satisfaction include factors such
as achievement, recognition and responsibility. Discrepancies in motivators, which led to employee discontent,
or hygiene factors as Herzberg termed them, could include things such as company policy, salary, managerial
style, and relations with work colleagues [22].
McGregor distinguished two alternative basic assumptions about workers and their approaches to work
in an organization. The two assumption which he called Theory X and Y, takes opposite views of people‟s
commitment to work in organizations. Theory X assumes that workers must be coaxed and force into putting
forth effort in their jobs while, Theory Y on the other hand, assume that workers relish work and eagerly
approach their work as an opportunity to develop their creative capacities. The root of Theory X can be traced to
the days of scientific management while Theory Y was an example of complex person perspective[22].
III. Methodology
The study was carried out in The Federal University of Technology Akure, Nigeria between the
Teaching and Non-Teaching staff. The method used in this study is the survey type which involves the selection
and studying the sample chosen from the population in order to examine the effectiveness of human resource
management in achieving employee performance in The Federal University of Technology Akure. The sample
size was 340 members of staff which was selected from the total population of 2,191 from both the teaching and
non-teaching staff based on a simplified formulaof determining sample size for research activity [24]. A
proportion of 60% to 40% was used in selecting the respondentsusing the purposive samplingtechnique since the
non-teaching staff are more than the teaching staff. Questionnaires was used as research instrument for the
study.
In addition, the questions was divided into three sections; the first section contains demographic
information of the respondents, such as Age, Sex, Marital status, Educational Status among others. Second
session deals with questions pertaining to effectiveness of training and development in enhancing employee
skills, knowledge and attitude to work; while the last section as well deals with questions on effect of promotion
exercise on labour turnover. Analysis of data was done using the descriptive statistics and inferential. The
formal include frequency distribution, percentages and relative importance index, mean and standard deviation
while the later include Chi-Square which was used in testing of hypotheses.
Table 2.Effectiveness of Training and Development on Employee Skills, knowledge and Attitude
Beneficiary Option Frequency Percentage
of T& D
Yes 137 43.9
No 175 56.1
Total 312 100.0
Mode of Selection of Option Frequency Percentage
T&D
On joining the University 58 42.3
Head of Unit/Department Recommendation 35 25.5
Compulsory for all staff 6 4.4
Upon staff request 13 9.5
Based on Performance 25 18.2
Total 137 100.0
Training Received Option Frequency Percentage
Quarterly 2 1.5
Bi-annual 7 5.1
Annually 12 8.8
2- years interval or more 70 51.1
No specific period 46 33.5
Total 137 100.0
Effect of T & D on Job Option Frequency Percentage
Performance
Very Effective 48 35.0
Effective 80 58.4
Not sure 6 4.4
Not effective 3 2.2
Total 137 100.0
Direct Impact of T &D Option Frequency Percentage
on Skills, Knowledge
and Attitude of
Employee
Strongly Agree 48 35.0
Agree 63 46.0
Undecided 16 11.6
Disagree 7 5.2
Strongly Disagree 3 2.2
Total 137 100.0
Table 3: Mean and Standard Deviation of effectiveness of Training and Development in enhancing Employee
Skills, Knowledge and Attitude
Items Mean Standard Deviation
Beneficiary of training/ development from the University 1.56 1.104672
Mode of Selection for the Training 2.36 0.822815
Training Received 4.10 0.47655
Effect of Training and Development on your Job Performance in 1.281028
FUTA
3.26
Direct Impact of Training and Development on Skills, 1.282199
Knowledge and Attitude of Workers in Discharging of Duty in 4.07
FUTA.
Source: Author’s Field Report, 2016
be accepted because when employees look forward for their promotion and they get it as at when due, it then
creates an enabling environment for better performance. Therefore, promotion exercise has a significant effect
on labours turnover. The mean and standard deviation of the effect of promotion exercise on labour turnover is
explained in table 6.
Table 6: Mean and Standard Deviation of Effect of Promotion Exercise on Labour Turnover.
Items Mean Standard Deviation
Responses on the Effect of Promotion Exercise in FUTA. 1.19 1.495783
Assessment of Promotion Exercise so far in FUTA 4.19 0.160935
Positive Effect of Promotion Exercise on Job Performance in FUTA 4.32 1.722179
The Significant Effect of Promotion Exercise on Workers Turnover in FUTA 4.00 1.679891
Source: Author’s Field Report, 2016
V. Conclusion
The study examine the effectiveness of human resource management in achieving employee
performance in FUTA. It found out that human resources unit as a pivotal unit in facilitating competitive
advantage should laid more emphasis on training and development of staffs, also training and development
should be a kind of routine activities for staffs irrespective of their cadre be it a junior staff or a senior staff and
as a result, the best potential (skills, knowledge and attitude) in them would be identify to achieve better
performance. The study also conclude that promotion exercise of staffs is free from biased and it goes a long
way in bringing out the best out of them. When a staff is being promoted as at when due better performance
would be achieved and this drastically reduce labour turnover.
5.1 Recommendation
From the result of the study conducted, it was discovered that human resource department has a lot of
impact on the employee and the organisation at large. This is because it regulates the activities of the
organisation in order to implement an effective policy on the employees. Based on the findings, the study
recommends that management should put more effort in training of staff by sending them for workshops and
conferences so that the largest percentage (56.1%) who have not benefitted any training from the University
may benefit as well and as a result, their skill, knowledge and attitude would be harnessed. Also management
should ensure that staff are promoted as at when due so that the remaining (7.9%) who felt the promotion
exercised does not have a significant effect on labour turnover can as well be promoted as at when due.
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