ABSTRACT
The study investigated the effect of human resources practices on performance (A case study of Honda manufacturing company Sango-Ota. The study has some peculiar objective which include; Is there an effect of Technology Embracement on the performance of Honda Manufacturing Company Sango-Ota?;What is the influence of employment security on the performance of employees?;What is the impact of contingent compensation on workers’ performance in Honda Manufacturing Company Sango-Ota?;Is there an influence of Extensive training on the performance of employees in Honda Manufacturing Company Sango-Ota?;What is the impact of frequent feedback on the performance of Honda Manufacturing Company Sango-Ota?
The study made use of cross-sectional survey design. The sample space is 240 staff of Honda Manufacturing Company Sango-Ota while the sample size or unit is 159 staff. The questionnaire was use to source for primary data, that was used in the study. The simple percentage and frequency table used for the demographic feature and the simple linear regression for the hypothesis formulated.
The study employed simple linear regression for the two hypothesis. Hypothesis one results indicate that extensive training has significant impact on productivity at 0.01 (p>0.05).Hypothesis two indicate that frequent feedback does not have significant impact on performance at 0.09 (p
The study recommend that company should sectionalize the training and development of their workers based on their department so has to establish speed in training and equip their company with the needed technology that will aid production capacity of the staff in the company.
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The focus of this study is to examine the effect of human resource practices on performance using Honda Manufacturing Company Sango-Ota as a case study. Human management is one of the most important determinant of the performance of an organization and it however important to carry out a study that address the impact of the practices of human resources on the performance of Honda manufacturing company. Most employees in Honda manufacturing company often complain about job insatisfaction and how much their work environment is not conducive, these complain could be avoided by effective human resource practice and this propels the need to carry out a study on the effect of human resource practices on performance of Honda Manufacturing Company.
It is however important for Honda Manufacturing Company to adopt human resource practices such good wages and salary, employees’ incentives, and conducive work environment in order to foster employees’ job satisfaction which in turn influences the performance of the organization.
Human resources (HR) are considered the most valuable asset in an organization but they make a better bottom line only for a few organizations (Wimbush, 2005). The extent to which, if any, human resource management (HRM) impacts on organizational performance has emerged as the central research question in the personnel/HRM field. Although initial results indicate that some human resources practices may have a positive effect on organizational performance, most scholars suggest that more conceptual and empirical work is required (Zhu, 2004).
Human Resource Management can be described as a strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations (Armstrong, 2010). It has a strong conceptual basis drawn from the behavioral sciences and from strategic management, human capital and industrial relations theories. This foundation has been built with the help of a multitude of research projects.
At the conceptual level, according to the resource-based view of the firm, which poses that superior performance is the result of the idiosyncratic mix of corporate resources, HR practices may lead to higher firm performance and be sources of sustained competitive advantage because these practices are often unique, causally ambiguous, and difficult to imitate (Voss et al. 2005). Essentially, as confirmed by a growing body of empirical evidence, not every HR practice can be a source of sustained competitive advantage (Barringer et al., 2005). Research has begun to isolate a few critical HR practices that seem to have a significant contribution on firm performance.
Organizations can improve the quality of current employees by providing comprehensive training and development activities. Considerable evidence suggests that investments in training produce beneficial organizational outcomes (Hamon, 2003). The effectiveness of skilled employees will be limited, however, if they are not motivated to perform their jobs. Organizations can implement merit pay or incentive compensation systems that provide rewards to employees for meeting specific goals. Incentive compensation and performance management systems enhance the performance of employees and organizations (Dessler, 2008). Performance management as a process explicitly recognizes that in today’s globally competitive industrial environment, every employee’s efforts must focus on helping the company to achieve its strategic goals (Dessler, 2008).
Organizational performance (OP) is an indicator which measures how well an enterprise achieves their objectives (Hamon, 2003). Organizational performance is concerned with product or service quality, product or service innovation, employee attraction, employee retention, customer satisfaction, management/employee relation and employee relation (Delaney and Huselid, 2016). Human resources have been identified to be both valuable and a source of competitive advantage (Legge, 2005). According to Bontis (1999), the human elements of the organization are those that are capable of learning, changing, innovating and providing the creative thrust which if properly motivated can ensure the long-term survival of the organization. Delery (2008) observed that the methods used by an organization to manage its human resources can have a substantial impact on many organizationally relevant outcomes.
When organizations face challenges such as an economy recession, it depend thoroughly trained professionals who react quickly to changes in the environment and create strategies for success. Human resource management (HRM) is responsible for carefully selecting and training people with the necessary skills to pursue the strategy effectively. Some external factors can be predicted; others, such as the collapse of large banks and insurance companies, can seemingly come out of nowhere (P.Robbins, 2010).
According to Noe et al. (2011) human resource management is critical to the success of organizations because human capital has certain qualities that make it valuable. In terms of business strategy, an organization can succeed if it has a sustainable competitive advantage (is better than competitors at something and can hold that advantage over a sustained period of time). Therefore, we can conclude that organizations need the kind of resources that will give them such an advantage.
Employees are one of the most important assets of an organization as they contribute to its growth and success (Danish and Usman, 2010). Malik et al. (2010) concluded that in the era characterized by rapid and continuous change, knowledge capital must be retained in order for organizations to be productive and responsive to the needs of their stakeholders. Likewise, universities as training and research institutions need to attract, retain and develop their employees. Universities need employees who are well trained and motivated so that they are committed to their work of conducting research and training for the development of the nations (Lew, 2009). Research literature has shown that effective application of some human resources management (HRM) practices enables university employees to be committed to their work for good performance of the universities (Chen et al., 2009). Therefore, this study focus on the effect of human resource practices on performance (A Case Study of Honda Manufacturing Company Sango-Ota).
1.2 Statement of the Problem
Increased employees’ turn over, lack of job satisfaction, poor work environment, employees’ loyalty and commitment to the organization are some the challenges facing manufacturing companies in Nigeria. Most employees are not loyal to the organization they work with because of the job insecurity they experience in the organization. The adoption of effective human resource practices can help in proffering solutions to these problems and eradicate them.
After review of previous empirical studies on the subject under study, the study observed the following gaps; other studies did not focus on the impact of human resource practices on the performance manufacturing companies. Previous studies do not dwell on the connection between human resource practice and organizational performance.
Recruiting and selecting high potential employees doesn’t guarantee that they will perform effectively (Danish and Usman, 2010). The effectiveness of individuals who are knowledgeable on what to do and are not skilled on how to carry out their duties is usually very low. It is however important for organizations to equip and train their employees so as to impact in them the knowledge and skills on how to properly discharge their duties.
The investment required for proper training of staff can be very high and it is important for an organization to see the input of the investment made on training employees, this can only be seen through the effectiveness of the employees. The combination of both extrinsic and intrinsic motivators is the yards stick in establishing the reward system in an organization. An extrinsic motivators involves rewarding an employee based of the performance and input into the organization, meeting the proposed target is a prerequisite for received the deserved compensation. When employees are of the opinion that their responsibility is challenging, interesting and important, the intrinsic motivation is provided to the employees. Responsibilities that warrants the involvement of freedom or autonomy to take actions, growths and advancement opportunities also attract intrinsic motivation (Dessler, 2008).
One of the most valued motivator of employee is known as Employee empowerment, the feeling of been valued is seen when employee are given the opportunity to take part in the decision making in an organization. This act also fosters the commitment and loyalty of employees to an organization. The competiveness of the market has influence the desire of organization to work with individuals who are effective and productive in order for the organization to cave an indelible niche in the global market.
According to Barringer et al., (2005), the security of any employee in organization is dependent on whether they are productive or not i.e. Job security is determent by employees’ performance.
So many researches has been carried out on the relationship between human resource management practices and organizational performance in both developed and developing countries. The result obtained from each of these studies reveal that there is a relationship between human resource management practices and organizational performance. Unfortunately, very few studies has been carried out on the influence of human resource practices on the performance of manufacturing organization.
These problems necessitate the need to carry out a study on the effect of human resource practices on performance (A Case Study Of Honda Manufacturing Company Sango-Ota).
1.3 Research Questions
The relevant research questions related to the study of the effect of human resource practices on performance (A Case Study Of Honda Manufacturing Company Sango-Ota) will include the following:
1. Is there an effect of Technology Embracement on the performance of Honda Manufacturing Company Sango-Ota?
2. What is the influence of employment security on the performance of employees?
3. What is the impact of contingent compensation on workers’ performance in Honda Manufacturing Company Sango-Ota?
4. Is there an influence of Extensive training on the performance of employees in Honda Manufacturing Company Sango-Ota?
5. What is the impact of frequent feedback on the performance of Honda Manufacturing Company Sango-Ota?
1.4 Objectives of the Study
The general objective of this study will be to examine the effect of human resource practices on performance (A Case Study Of Honda Manufacturing Company Sango-Ota). The specific objectives for this study include the following:
i. To ascertain if there is an effect of Technology Embracement on the performance of Honda Manufacturing Company Sango-Ota.
ii. To examine the influence of employment security on the performance of employees.
iii. To determine the impact of contingent compensation on workers’ performance in Honda Manufacturing Company Sango-Ota.
iv. To find out if there is an influence of Extensive training on the performance of employees in Honda Manufacturing Company Sango-Ota.
v. To survey the impact of frequent feedback on the performance of Honda Manufacturing Company Sango-Ota.
1.5 Research Hypothesis
The research hypothesis for this study include the following:
H1 – There is a significant influence of Extensive training on the productivity of employees in Honda Manufacturing Company Sango-Ota.
H0– There is no significant influence of Extensive training on the productivity of employees in Honda Manufacturing Company Sango-Ota.
H2 – There is a significant impact of frequent feedback on the performance of Honda Manufacturing Company Sango-Ota.
H0 – There is no significant impact of frequent feedback on the performance of Honda Manufacturing Company Sango-Ota.
H2 – There is a significant impact of contingent compensation on Worker’s performance of Honda Manufacturing Company Sango-Ota.
H0 – There is no significant impact of contingent compensation on Worker’s Performance of Honda Manufacturing Company Sango-Ota.
H2 – There is a significant impact of employee security on Worker’s performance of Honda Manufacturing Company Sango-Ota.
H0 – There is no significant impact of frequent feedback on Performance of Honda Manufacturing Company Sango-Ota.
1.6 Significance of the Study
The study on the effect of human resource practices on performance will be relevant to management of organizations, Human resource department and researchers.
To the management of organizations, there is a need to try to distinguish themselves by creating their own niches or images, especially in transparent situations with a high level of competitiveness and the accomplishment of this goal will only be possible through the collective input of effective workers. This study will emphasize the importance of human resource management in ensuring that the employee in an organization are well trained and equipped towards achieving the mission and vision of the organization.
To the human resource department, this study will elucidate their responsibility in training and equipping workers towards achieving the mission and vision of the organization. The most neglected Human Resource practices which employees believe that could help to perform better than before will also be addressed in this study.
To researchers, this study will enhance the existing body of literature by contemplating the areas of the literature that have not yet been examined or considered and incorporating these factors into the current study. The study will thus form the basis for further studies in the field.
1.7 Scope of the Study
The scope of this study is restricted toexamine the effect of human resource practices on performance (A Case Study Of Honda Manufacturing Company Sango-Ota). A questionnaire was used for the purpose of this study and the sample population are employees in different departments in Honda Manufacturing Company Sango-Ota. The researchers restrict this study to 150 employees in different departments in Honda Manufacturing Company Sango-Ota because the information obtained for them can be used to establish a conclusion on this study. The data collection instrument for this research work is mainly based on the use of data from primary sources, i.e. questionnaires administration. This study would be carried for four (4) months in order to get the required information from the respondents and effective analyze the data obtained statistically.
1.8 DEFINITION OF TERMS
Human resources: is the division of a company that is focused on activities relating to employees. These activities normally include recruiting and hiring of new employees, orientation and training of current employees, employee benefits, and retention. Formerly called personnel.
Human resource management (HRM) is the practice of recruiting, hiring, deploying and managing an organization’s employees.
Organizational performance: comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives).