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Assessment on the Effect of Human Resources Management Practice on Employee Performance
Chapter One
Introduction
1.1 Background to the Study
Human Resources Management (HRM) Practice is one of the fundamental
pillars of organizational activities, which are very crucial in achieving
organizational objectives. Managers worldwide have realized that the effective
management and development of organizational human resources (HR) is very vital
to the accomplishment of organizational objectives. Therefore, organizations
invest huge amounts of capital in coordinating the core activities of human
resources practice and to procure, train, develop, retain, integrate and
compensate employees. The performance of employees is a function of effective
and efficient human resources management practices while human resources
management practice is designed to maximize employee performance in the service
of an employer's strategic objectives. There is no doubt that the most
important resources of every organization are human resources, since they
create and use other resources of the firm. They constitute what economists
call the human capital of an organization by which they mean; the knowledge,
skill and capabilities embedded in individuals. Human resources are crucial
sources of productivity gains and economic productivity. Organizations that
have effective human resources management practice hire the right people, train
them well, create an internal organization that allow them to fully express
their potential and reward them appropriately by putting the right incentive in
place. The firm will be rewarded with superior performance. Prefers argues that
this is the source of competitive advantage (Mc-Shane H 2009). Human resources
management practices is a contemporary umbrella term used to describe the
management and development of employees in an organization.
Also called personnel or talent management (although these terms are a
bit antiquated), human resource management involves overseeing all the
activities related to managing an organization‟s human capital. It also entails
developing and administering programs that are designed to increase the
effectiveness of an organization or business. It includes the entire spectrum
of creating, managing and cultivating the employer-employee relationship
(Armstrong 2008). Human Resources management practice is considerably different
and, therefore, depends on the country‟s level of economic development and
standard of living indices. Some scholars try to separate Human Resources
Management Practice (HRMP) from strategic Human Resource Management (SHRM) but
conclusively those two areas consist of various practices used to manage
employees in organization such as selection, training, appraisal and reward.
The aim is to enable an organization to achieve its objective. Although, in
developed countries the attention given to human resources specialty is quite
pervasive compare with the developing nations. The growth of knowledge based
society along with the pressure of opening up emerging markets, has led global
companies to recognize now more than ever that human resources and intellectual
capital are as significant as financial assets in building sustainable
competitive advantage. Good HR in a multinational company comes down to getting
the right people, train and compensates employees to cohesive network of
leveraging good ideas to the survival of organization. It was considered a
solution to multinational companies to find a way to emulate companies that have
a decade of experience in recruiting, training and retaining good employees
across the globe. If companies are to handle the challenges of globalization
and shift to a knowledge-based economy, they must develop a system that work,
the system that consider people as the most valuable resources, (Helen &
John 1994).
The nature of the electricity distribution business requires the
presence of adequate human resources in all operational location. Such human
resources are expected to be not only adequate but qualified, skillful and also
motivated to effectively perform their duties and responsibilities to achieve
overall organizational objectives. In the same vein, global competition has
increased the importance of improving employee performance and looking globally
for the best human resources management practice, as Peretomode and Peretomode
(2011) rightly posit, “The effective and efficient performance of the
organization is the function of qualified and competent employees working in
the organization”. The challenge of globalization and changes in economic
perception gave birth to the reforms in the Nigerian Electricity Power Sector,
the reform that saw the federal government enact the Electric Power Sector
Reform Act 2005 (EPSRA 2005) The Act under the new regime, the Nigerian
Electricity Regulatory Commission (NERC), is to serve as the main regulatory
body of the electricity power sector. The existence of the NERC is brought
about by the Act, which repealed the National Electric Power Authority (NEPA).
The previous Monopolistic state-owned enterprises (NEPA) was unbundled to
eleven (11) Distribution Companies, Six (6) generation company and one (1)
transmission company (EPSRA 2005). Kano Electricity Distribution Company
(KEDCO) is one of the major Distribution Companies that operates in the
Northwest Geopolitical Zone of Nigeria. The company by law is mandated to
generate, distribute and market electricity in three states of Jigawa, Kano and
Katsina. The Company is among the 11 Electricity Distribution Companies that
are recently privatized. KEDCO in particular was taken over by Sahelian
Consortium SPV on 1st November, 2013, as part of power sector reforms. It
became public liability company on November 7th, 2005, with the implementation
of EPSRA (2005). As a Distribution Company its core business activities are as
described under section 67 of the EPSRA (2005) as follows; connect the customer
for the purpose of receiving a supply, installation, maintenance and funding
Meters. Billing and collection, and such other distribution service may be
prescribed for the purposes of this section. The company discharges its
function of distribution and marketing electricity through nine regional
offices located across three states EPSRA (2005), an arrangement expected to
encourage private sector participation in the Nigerian electricity industry
with Government retaining 40% through bureau of public enterprises and private
sector with 60 % shares, autonomously operated, controlled and managed by the
private sector (Ajugmobia 2013).
NB: The Complete Thesis is well written and ready to use.
