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Abstract
The Study Has Examined the main purpose of this study is to investigate the relationship between Human Capital Management (HCM) and organizational productivity in selected commercial Banks in Port Harcourt. the survey research design was adopted. For this study our population / respondent is drowned from 3 commercial banks in Port Harcourt metropolis comprising of Zenith Bank, Gt Bank, First Bank Plc, a totality of (50) respondent comprising of both top and middle level managers. The Taro Yemen’s formula was used to determine the sample size of 44. The method used in this study is the questionnaire method but, subsequently the interview method was used to fill the gap of the questionnaire method. The method used to analyze the data was simple descriptive method stated in tables and expressed in percentage. It was revealed that problems can arise spontaneously on the impact of personnel aspect on organizational growth. Based on the finding of the study. We recommended that companies should endeavor to have a strong corporate governance to solve the solution of weak human resource management to make a very good organizational performance, the human capital manager in companies should ensure that, there is need for appropriate staffing for the company to know when and how to sort for employees to meet their various needs in the organization and companies should enact policies for recruiting and training the best employees to attain the best of their services to the organization ensuring they are of high performers.
Table of Contents
Title Page i
Declaration iii
Certification iv
Dedication v
Acknowledgement vi
Abstract vii
Table of Contents viii
CHAPTER 1 1
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of the Problem 2
1.3 Objectives of the Study 3
1.4 Research Questions 3
1.5 Significance of the Study 4
1.6 Scope of the Study 4
1.7 Limitations of the Study 4
1.8 Definition of Terms 5
CHAPTER 2 7
LITERATURE REVIEW 7
2.1 Conceptual Framework 7
2.1.1 Concept of human capital management 7
2.1.2 Dimensions of Human Capital Management 9
2.1.3 Concept of Organizational Productivity 13
2.1.4 Measures of Organizational Productivity 14
2.2 Human Capital Theory and the Resource-Based View 17
2.2 Theoretical Review 18
2.2.1 Goal Theory 18
2.2.2 Control Theory 19
2.3 Empirical Review 20
CHAPTER 3 23
RESEARCH METHODOLOGY 23
3.1 Research Design 23
3.2 Population of the Study 24
3.3 Sample/ Sampling Design 24
3.4 Sample Size 25
3.5 Method of Data Collection 26
3.6 Method of data analysis 26
CHAPTER 4 27
DATA PRESENTATION AND ANALYSIS 27
4.1 Data Collection 27
4.2 Data Analysis 28
4.3 Summary of Findings 32
4.4 Discussion of Findings 33
5.1 Summary 36
5.2 Conclusions 36
5.3 Recommendations 37
References 39
Appendix I 41
Appendix II 42
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
Productivity involves goal attainment. It is the successful transfer of input to output at the lowest possible cost. Productivity implies both efficiency and effectiveness.
According to Nwachukwu, (1988) the essence of all motivational techniques to increase employee productivity motivated employee. Osuala, (1983) noted that unmotivated employees tend to be absent and tardy more frequently, they are difficult to supervise, represent a real financial burden to the organizations and their work in most cases has to be reduced and thereby increasing their organizational services costs.
Mah’s (1978) defined productivity as the measure of how well resources are brought together in organization and utilized for accomplishing a set of goals. It involves reaching the highest level of performance with the least expenditure of resources.
The above definition is two-tie. The first involves a set of result or performance. Performing or accomplishing a set of result refers to the effectiveness in reaching a mission, a planned achievement or a needed value without serious regard for the cost incurred in the process. Certainly, accomplishing a set of result is by far the most important focus of the productive concept because without it there is no productivity. The second part involves consuming resources without which achievements are not likely to happen and productivity cannot exist. It specifies the number type and level of resources needed, e.g. plant capacity, cost, raw materials, personnel, facilities, capital, technology. How well these resources are brought together refers to the efficiency of achieving results with minimum exposure of the resources. High productivity suggests minimum use of resources. One construct that can enhance organizational productivity is human capital management.
Human Capital Management (HCM) is an important factor that aids or supports the productivity of any organization. Human capital practices have positive effect on organizational performance (in terms of growth), that is why scholars suggested that more conceptual and empirical work should be carried out (Brewster, 2004).
Stoner et al (2005) conceived it as the management function through which manager’s recruit, select, train and develop the organizational members. Human Capital Management (HCM) is concerned with getting better results (growth) with the collaboration of people. This clearly underscored the important status of the human factor at work. Observably, studies relating to human capital management and organizational productivity appear scanty. This is the gap this study fills. Consequently, this study investigates the relationship between human capital management and organizational productivity in the banking system.
1.2 Statement of the Problem
Organization from both private and public sector, big and small enterprises are increasingly embracing the practice of Human Capital Management (HCM) that this would translate into the organizational productivity. But most organizations have failed to recognize the great impact of Human Capital Management (HCM) leading to the closure of many organizations.
The associated problems are: The inadequacy of adapting and accommodating the changing policy, pattern and systems of Human Capital Management (HCM). Improper and inefficient principles of selecting, recruiting, placement, training and developing of the organization employees and negligence of acapable Human Capital Management (HCM) by some organizational managers.
1.3 Objectives of the Study
The main purpose of this study is to investigate the relationship between Human Capital Management (HCM) and organizational productivity in selected commercial Banks in Port Harcourt. Accordingly, the following objectives will be achieved:
- To investigate the relationship between personnel management (aspect) of Human Capital Management (HCM) and organizational productivity in selected commercial Banks in Port Harcourt.
- To investigate the relationship between welfare aspect of Human Capital Management (HCM) and organizational productivity in selected commercial Banks in Port Harcourt.
- To investigate the relationship between industrial relations aspect of Human Capital Management (HCM) and organizational productivity in selected commercial Banks in Port Harcourt.
- To investigate the relationship between Human resource planning and organizational productivity in selected commercial Banks in Port Harcourt.
1.4 Research Questions
The following research questions are posed to guide this study:
- Is there any relationship between personnel aspect and organizational productivity in selected commercial Banks in Port Harcourt?
- Is there any relationship between welfare aspect of Human Capital Management (HCM) and organizational productivity in selected commercial Banks in Port Harcourt?
- Is there any relationship between industrial relations aspect of Human Capital Management (HCM) and organizational productivity in selected commercial Banks in Port Harcourt?
- Is there any relationship between Human resource planning and organizational productivity in selected commercial Banks in Port Harcourt?
1.5 Significance of the Study
This study would be beneficial in number of ways. Firstly it will assist academicians and scholars interested in issues pertaining to Human Capital Management (HCM) and its relationship to organizational growth, both in public and private sector, especially in modern banking system.
Secondly, to practicing managers in the formulation of policies, standards, guidelines and procedure for handling difficult issues on Human Capital Management (HCM) so that it will positively relates to the growth of the organization in its business operation. It is also relevant to state here emphatically that this article also stand as an increment to the body of knowledge.
1.6 Scope of the Study
This study is delimited under the following;
Content Scope: This study examines the relationship between Human Capital Management (HCM) and organizational productivity in selected commercial Banks in Port Harcourt.
Geographical Scope: The geographical scope of this study covers the selected commercial banks in Port Harcourt e.g Zenith Bank, First Bank, GT Bank.
Unit of Analysis: This study is macro based analytical study.
1.7 Limitations of the Study
There are some constraints or barriers imposed on the study by the nature of the problem and research situation. These factors or limitation are outside our control, but we tried to adjust or adapt the study to accommodate such factors. They include;
- Adequate materials
- Finance (funds)
- Time
- Uncompromising attitude of correspondence
- Transport and distance
1.8 Definition of Terms
The following terms are derived from the conceptual framework and are defined as follows:
CAPITAL: It is the term used in establishing and maintaining any organization. It could be finance, humans etc.
EXPANSION: Expansion is the increase in productivity of the organization and also further establishment of various branches of the organization in various locations.
GROWTH: Growth is the positive increment in size and scope of an object due to some changes.
HUMAN: Is all labor force required in appropriate number with skills needed to carry out a certain task or activity.
HUMAN CAPITAL MANAGEMENT: Human Capital Management (HCM) is a process of bringing qualified people and organization together, developing and motivating them so that the goals of the organization or establishment will be achieved.
INDUSTRIAL RELATIONS ASPECT: It is the process of solving various disputes or grievances that may occur within the organization. This includes union management relations, joint consultation, collective bargaining etc.
ORGANIZATION: Is a group of people coming together with a special purpose or interest to achieve.
PLANNING: Is a process of forecasting the future.
PROFITABILITY: Is the act or an increment in an organization net profit, revenue, and other final data that placed an organization in an optima position of achieving its stated goals.
WELFARE ASPECT: It deals with the working conditions and amenities such as canteens, rest and launch rooms, housing, transport, medical assistance etc.
HUMAN RESOURCE PLANNING: Human resource planning is the process by which management ensures that they have the right number of people occupying strategic positions, capable of effectively and efficiently completing those tasks that will help the organizations in achieving its goals.
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
In today’s competitive business world, it is understood that organizations can only compete with their rivals by innovating. Organizations can only innovate by managing their human resources well (Kuvaas, 2006). Subordinate Job Performance has to do with accomplishment standard of accuracy, completeness, cost and speed. Performance is seemed to be the fulfillment of an obligation in a manner that releases the performer from all liabilities under the contract. This means that an employee must be properly, evaluated in term of their productivity, skills taken decision and total commitment to their job so as to enable the organization to achieved expected goals (Kuvaas, 2006). Fringe benefit is one of the construct that can enhance subordinate job performance in an organization today.
According to Mathis and Jackson (2003), fringe benefits are forms of indirect compensation given to an employee or group of employees as a part of organizational membership. Bratton and Gold (2009) define them as that part of the total reward package provided to employees in addition to base or performance pay. Fringe benefits focus on maintaining (or improving) the quality of life for employees and providing a level of protection and financial security for workers and for their family members. Like base pay plans, the major objective for most organizational fringe compensation programs is to attract, retain and motivate qualified, competent employees (Bernardin, 2007). Mathis and Jackson (2003) continue to state that an employer that provides a more attractive benefits package often enjoys an advantage over other employers in hiring and retaining qualified employees when the competing firms offered similar base pay. In fact, such benefits may create “golden handcuffs,” making employees more reticent to move to other employers. Some common examples are; retirement or pension plans, medical and dental insurance, education reimbursement, time off, paid vacation and use of company car.
According to a study carried out by the US Chamber of Commerce in (2006), fringe benefits in the U.S., were not a significant part of most employees’ compensation packages until the mid-twentieth century. For example, in 1929, benefits comprised only about 3 percent of total payroll costs for companies. However, employee benefits in the U.S. now comprise approximately 42 percent of total payroll costs. Several things account for the tremendous increase in the importance of employee benefits in the U.S. In the 1930s, the Wagner Act significantly increased the ability of labor unions to organize workers and bargain for better wages, benefits, and working conditions. Labor unions from the 1930s to 1950s took advantage of the favorable legal climate and negotiated for new employee benefits that have since become common in both unionized and non-union companies.
Fringe benefits have generally constituted a higher proportion of total employee compensation in Europe than in the United States. In Europe, they are most often the result of legislation, whereas in the United States collective bargaining has been more important in gaining such benefits for workers. The prevalence of fringe-benefit programs increased sharply during World War II because controls on this type of compensation were less stringent than controls on wages (Martocchio, 2006).
According to Long (2006), Benefits are a form of indirect pay within a compensation system. They are rewards (other than wages, salaries or performance-related payments) that employees receive in return for their continued service to the organization. They are designed to protect employees and their families from loss of income due to health problems or other work-related financial disruptions, and can improve the employees‟ general quality of life through special programs and services in the workplace.
In many organizations in East Africa, the approach towards pay and benefits differentiates between staff at different levels of employment hierarchy. The factors which affect employees‟ salaries and wages can be categorized into two; those controlled by the employer and those imposed from external forces such as the government. In both cases, the salaries and wage components are identified among others as; fringe benefits given as a result of being an employee of an organization in the form of hardship allowance in remote area, house rent allowance, medical benefits, provident funds, gratuity funds, pension funds, superannuation benefits in the form of group linked insurance scheme, accident and death compensation while on duty, statutory funds (wage deductions), leave with pay, education allowance, and company cars. Fringe benefits are also called perquisites and are either provided by the employer on his own initiative or they are the result of a collective bargaining agreement or state legislative. They are provided to motivate the workers and retain them for organizational efficiency and effectiveness (Monappa, 1999). From the foregoing therefore, the study was determined to examine the relationship between fringe benefit and subordinate job performance in some selected hospitality firms in Port Harcourt, Rivers State.
1.2 Statement of the Problem
Numerous surveys and experience of human resources professionals have shown that while employees are concerned about how to earn more pay and enjoy attractive conditions of service, employers on the other hand would be striving to cut costs so as to post impressive profit at the end of the accounting period (Milkovitch and Newman, 2004). Meanwhile, studies have shown that provision of motivators has been resulting in employees’ increased interest in the job, enthusiasm and increased productivity at work and absence of motivators has been the other way round (Mathis and John, 2003).
Research into employee benefits and organizational commitment is becoming more important because some researchers have examined the relationship between them (Christoph, 1996) and also the relationship between employee benefits, motivation and productivity (Hong, et al., 1995). There is however, still some debate over fringe benefits on whether they facilitate in employee productivity leading to organizational performance and do benefits impact on an organization‟s ability to attract, retain and motivate employees leading to productivity and improved organizations‟ performance (Milkovitch and Newman, 2004).
From the initiation of globalization, the foremost confront for manager is to expertise different strategies to boost firm’s performance (Habib, Khurram & Idress, 2010). For the strength of an organization job satisfaction plays a vital role which has significant effect on subordinate performance. And the word performance we used to pass on the individual aptitude to be inspired, stirring, pioneering and to determinant to achieving the goals on an organization (Walumbwa & Hartnell, 2011).
Given the absence of empirical evidence on the relationship between employee benefits and productivity and the escalating cost of benefits, it is clear that there is a research gap and that further research needs to be carried out, in order to find out whether fringe benefits really do have any effect on subordinate job performance on selected hospitality firms in Port Harcourt.
1.3 Objectives of the Study
The main objective of the study is to examine the relationship between fringe benefit and subordinate job performance in hospitality firms in Port Harcourt. The specific objectives area follows:
- To examine the relationship between employment security benefits influence subordinate job performance in selected hospitality firms in Port Harcourt.
- To examine the relationship between health protection benefits have an effect on subordinate job performance selected hospitality firms in Port Harcourt.
iii. To examine the relationship between retirement benefits have an effect on subordinate job performance.
Iv. To examine the relationship between recognition influences employee subordinate job performance.
1.4 Research Questions
The following research questions are posed to guide the study:
- Does employment security benefits influence subordinate job performance in selected hospitality firms in Port Harcourt, Rivers State?
- Does health protection benefits associate with subordinate job performance in selected hospitality firms in Port Harcourt, Rivers State?
iii. Do retirement benefits associate with subordinate job performance in selected hospitality firms in Port Harcourt, Rivers State?
- Does employee recognition enhance subordinate job performance in selected hospitality firms in Port Harcourt, Rivers State?
1.5 Research Hypotheses
The following hypotheses were formulated to guide the study:
H01: There is a significant relationship between employee security benefit and subordinate job performance in selected Hospitality firms in Port Harcourt, Rivers State.
H02: There is a significant relationship between health protection benefit and subordinate job performance in selected Hospitality firms in Port Harcourt, Rivers State.
H03: There is a significant relationship between recognition and subordinate job performance in selected Hospitality firms in Port Harcourt, Rivers State.
H04: There is a significant relationship between health protection benefit and subordinate job performance in selected Hospitality firms in Port Harcourt, Rivers State.
1.6 Significance of the Study
There is some debate over fringe benefits on whether they facilitate organizational performance and whether they impact on an organization’s ability to attract, retain and motivate employees. Conventional wisdom also says that fringe benefits can affect recruitment and retention, but there is little research to support this conclusion. This statement indicates that there is a gap which has not been explored and therefore this study was undertaken to seek to establish whether fringe benefits really do have an effect on subordinate job performance and make appropriate recommendations on how to address the problem.
The researcher benefitted from the study as it added on to the growing body of knowledge on the roles of fringe benefits in organizations. The study will also act as a source of reference for further studies to be done on human resource in most organizations in Nigeria.
Employees will also benefit much from this study. Fringe benefits being one of the huge components in determination of organization performance, most of the employees will use the recommendations given to enhance high level of cooperation in their various job groups.
The study will also help the Government and other employers with information which will help them come up with policies and legislations on the administration of fringe benefits. Future researchers will also benefit from this study because it will provide them with relevant information on the topic.
1.7 Scope/Limitation of the Study
The study is delimited under the following heading: content scope, geographical scope and unit of analysis.
Content Scope: The content scope of this study involves an investigation to ascertain the relationship between fringe benefit and subordinate performance. The dependent variable is subordinate job performance, measures by executing defined duties, meeting deadlines, team input and achieving departmental goals. While independent variable is fringe benefit measure by employment security, health protection, retirement benefit and employee recognition.
Geographical Scope: This study is delimited in Port Harcourt Metropolis with special reference to some selected hospitality firms.
Unit of Analysis: The unit of analysis in this research involves the individuals at the time of carrying out the study. The scope of this study is to ascertain the relationship between fringe benefit and subordinate performance. Hence it is a micro level study.
In carrying out an investigation of this native the researcher must of necessity be faced the following constraint.
Firstly, The time constraint’s the time frame provision for this study was short.
Secondly, Financial constraints. Usually, a study of this nature involved some level of expenditure therefore, finance was also a limiting factor.
Thirdly, Poor response from the respondent and inability to access the entire population of the study. In the next segment significance of the study will be discussed. Lastly, poor measurement instrument.
In the next segment, definition of the study will be discussed.
1.8 Definition of Terms
Annual leave: Annual leave is a period of time off work that an employee is entitled to after every 12 consecutive months of service with an employer (Shellengarger, 2001).
Compensation: Workers’ compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee’s right to sue his or her employer for the tort of negligence (Neil, 2000).
Fringe Benefits: Fringe benefits are forms of indirect compensation given to an employee or group of employees as a part of organizational membership (Mathis and Jackson, 2003).
Overtime: Overtime is the payment over and above the normal salary and wage rates where the premium may be one and a quarter to two times (Tyson, 1999)
Performance: The action or process of performing a task or function.
Retirement benefits: This is the amount paid regularly to a person, typically following retirement from service. There are many different types of retirement benefits, including defined benefit plans, defined contribution plans, as well as several others (Neil,2000)
Subordinate: A person under the authority or control of another within an organization.