THE INFLUENCE OF HUMAN RESOURCES STRATEGIES ON EMPLOYEE SELF-REPORTS PERFORMANCE: A CASE STUDY OF CADBURY PLC, LAGOS STATE.
ABSTRACT
The study examined the influence of human resources strategies on employee self- report performance, a study of Cadbury Nigeria Plc, ikeja, Lagos.
It geared towards exploring some predicting variables of human resources strategies on employee self- report performance among employee of Cadbury Nigeria Plc. 122 Cadbury Plc employees, which comprises of 62 males and 60 females from different department completed the questionnaire.
100% respondents duly participated in the survey. A well- developed questionnaire was designed to elicit information from the respondents.
The data collected were analyzed using the descriptive statistics technique and the analysis of variance (ANOVA) was employed to test the stated hypotheses at 0.05% significance level.
Result from the study indicated that compensation strategy, recruitment and selection strategy, training and development strategy and strategic human resources alignment are key variables of human resources strategies that significantly influence the employee self-report performance.
Also companies with sound the human resources strategies naturally tend to perform better than their peers from small and large enterprises.
Findings were discussed and relevant recommendations were made for further studies.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Contemporary organizations are constantly undergoing the pressure to improve their service delivery and productivity. The precariousness of the external environment and the rapid rate of technological advancement increasingly requires innovative means of improving business performance in totality and as well as having a competitive advantage over rival firms. People are recognized as the core determinants of competitive advantage and the need for effective manpower management has become more important than ever before.
The task of effective human resource management in the 21st century has gone beyond the HR department of an organization alone. The task of exploring and harnessing the potentials of people in an organization for maximum performance is now being faced by senior managers, line managers and HR professionals. However, organizations are facing the challenges of providing an ideal occasion for diverse HR practices to prove its ability to contribute towards organizational performance and to particularly enhance the performance of human resource (employees).
HR in organizations in this present century is seen has been a vital component in the enhancement and sustenance of employees’ performance (Bowen, 2004). HR is believed to affect knowledge, skills, attitudes, abilities and behaviour of employees, which further affects the performance of an organization. Research has showed that human element is important asset organizations must possess to gain competitive advantage in the industry they are operating in. Research further evidenced that HR plays a decisive role in employees performance (Dietz and Boon, 2005; Coonway and Shanna, 2003).
Two factors have been identified to as important factors to explaining the linkage between HR and employees’ performance. Firstly, the alignment of HR with organization strategy (strategic fit) and secondly, the alignment of various HR practices, such as career opportunities, training and appraisal within the organization (internal fit). When HR within an organization is well aligned and employees know what is expected of them, they will invariably act similarly and have uniform expectations about work and behaviour (Barons & Kreps, 1999).
Innovative HR practices according to Soms (2006) is the intentional introduction or change of HR programs, policies, strategies, practice or system designed to influence and adapt employees’ skill, behaviour and interaction of employees and have the potential to provide the foundation for strategy formulation and the means for its implementation that is perceived to be new and create current capabilities and competencies. Scholars have suggested various HR design system to achieve organizational goals as well as determining the best set of complementing HR practices that will indeed boos the performance of employees. However, several limitations ranging from different levels of analysis, size of firm, union status of organization and business environment has impeded the acceptability of several advancements.
1.2 STATEMENT OF PROBLEM
With the increasing significance of the ‘human factor” in an organization, HR issues have become important to organization that identifies people as their most essential advantage in achieving organizational goals, inclusive of the enhancement of employees’ performance.
A set of issues deeply in need of concentration is the identification of strategic HR practices. Steadiness in the classification or determination of HR practices is very low. An evaluation of the universal perspective of theorizing HR employees’ performance shows there is still much to be learnt about the combination of HR practices that will boost the performance of employees. The impression given by Becker and Gehart (1996) reveal that studies greatly as to the HR practices and strategies identified as the “best” and sometimes even as whether HR practices and strategies is likely to positively or negatively affect employees’ high performance.
Little is known about how and through which HR strategies influences employees’ performance. Intermediate processes that ultimately affect performance outcomes are referred to as the “black-box” of the HR outcome link (Soms, 2006). Unlocking the “black-box” means identifying the HR strategies that are relevant to employees’ performance. This remark is concerned with the explanation of the mechanism linking HR strategies to key aspects of employees’ performance in particular and organizational performance in general. Several authors identified the lack of theoretical models to decipher this shortcoming. It is however pertinent to give attention not only to traditional performance outcomes but also to intermediate and process-related criteria that shows the path towards achieving sound employees’ performance.
1.3 OBJECTIVES OF THE STUDY
The main objective of the study is to examine the influence of human resources strategies on employees’ self report performance using Cadbury Plc, Lagos state as case study.
The specific objectives of the study are
To examine the influence of compensation strategy on employees’ self report performance in Cadbury Plc. To examine the influence of recruitment and selection strategy on employees’ self report performance in Cadbury Plc. To examine the influence of training and development strategy alignment on employees’ self report performance in Cadbury Plc. To examine the influence of strategic human resources alignment on employees’ self report performance in Cadbury Plc. To examine the influence of job rotation strategy on employees’ self report performance in Cadbury Plc.
1.4 RESEARCH QUESTIONS
The study attempts to provide satisfactory answers to the following research questions.
What is the influence of compensation strategy on employees’ self-report performance in Cadbury Plc? What is the influence of recruitment and selection strategy on employees’ self-report performance in Cadbury Plc? What is the influence of training and development strategy on employees’ self-report performance in Cadbury Plc? What is the influence of strategic human resources alignment on employees’ self-report performance in Cadbury Plc? What is the influence of job rotation strategy on employees’ self-report performance in Cadbury Plc?
1.5 RESEARCH HYPOTHESES
Five (5) hypotheses are developed based on the specific objectives of the study.
H1: Compensation strategy has no significant influence on employees’ self-report performance in Cadbury Plc. H02: Recruitment and selection strategy has no significant influence on employees’ self-report performance in Cadbury Plc. H03: Training and development strategy has no significant influence on employees’ self-report performance in Cadbury Plc. H04: Strategic human resources alignment has no significant influence on employees’ self-report performance in Cadbury Plc. H05: Job rotation strategy has no significant influence on employees’ self-report performance in Cadbury Plc.
1.6 SIGNIFICANCE OF THE STUDY
Employees are the most important asset any organization can have to achieve its stated targets. The performance and productivity of employees greatly depends on the kind of HR policies and strategies adopted in such an organization. When an organization practices friendly and attractive HR strategies, employees will exude greater performance in their work, which will lead to the overall accomplishment of the organization’s vision and mission statement.
This study through its findings will be use to the management team, board of directors, chief executive officers, general and line managers, HR officers of various organizations in the private sector as they will be informed with the best HR strategies that they can adopt to ensure greater performance and productivity of their employees, with the overall aim of achieving their stipulated objectives. Government at various levels (federal, state and local) will equally benefit ascertaining and implementing the effective HR strategies to enhance civil servants’ performance.
Future researchers will find this study useful in their prospective research undertakings.
1.7 SCOPE OF THE STUDY
The study is delineated to examine the influence of human resources strategies on employees’ self-report performance in Cadbury Plc, Ikeja. The human resources strategies considered in the study are but not limited to strategic human resources alignment, recruitment and selection, training and development, performance appraisal, compensation, career planning, employee participation and job rotation.
1.8 LIMITATIONS OF THE STUDY
During the course of carrying out the study, several limitations were encountered. They were:
Financial Constraint: Due to limited funds, the study only covered Cadbury Plc in Lagos state as a case study. Other organizations could not be considered.
Time Constraint: The time frame given to conduct this study is relatively short considering the other academic commitment and dedication of the researcher.
Difficulty in obtaining Data from Respondents: The respondents who were employees of Cadbury Plc were quite reluctant to participate in the survey because they felt they might be disclosing the secrets of their organization.
1.9 METHODOLOGY
The study employed the survey research design in conjunction with the simple random sampling technique to select 350 employees of Cadbury Plc. A questionnaire was constructed by the researcher and validated by two HR professionals, was administered to the respondents. The data generated was analyzed using the descriptive statistics (tables, frequencies and percentages).
Furthermore, a model was specified in which employee self-report performance was taken as the dependent variable. The independent variables incorporated in the model are strategic human resources alignment, recruitment and selection, training and development, compensation, performance appraisal, employee participation, job rotation and career planning. The multiple regression analysis was then used to empirically estimate the influence of the stated independent variables on the dependent variable at 5% significance level.
1.10 ASSUMPTIONS
The study is based on the following assumptions:
All the respondents that participated in the study are employees of Cadbury Plc. All the information obtained from the respondents is true, accurate and genuine.
1.11 DEFINITON OF TERMS
Career Planning: This refers to the strategy adopted by an organization to encourage employees to pursue their personal development.
Compensation: This refers to salaries, commission, fringe benefits, allowances, bonuses and other financial and non-financial rewards, employees are entitled to.
Employee Participation: This refers to the organizational programs that encourage joint decision making by employees and their superiors.
Employee Self-Report Performance: This refers to the personal assessment of the employees by themselves. Here, employees rate and judge their performance personally.
Human Resource Strategy: This refers to any intentional introduction or change of HR program, practice or system to influence the skills, abilities and behaviour of employees, thereby achieving the stated objectives of the organization.
Job rotation: This refers to a work system adopted by organization in which employees are rotated among different jobs within an organization.
Performance Appraisal: This refers to the measurement of employees’ performance on the basis of objective and quantifiable results.
Recruitment and Selection: This refers to the inflow of chosen skill aimed at enhancing the human resources capabilities of an organization.
Strategic Human Resources Alignment: This refers to the extent at which the human resources strategies adopted by an organization align with its stated vision and mission.
Training and Development: This refers to the tool to develop the knowledge and skills of employees with the aim of improving their performance.
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