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Full Project – The effect of personnel management on organizational performance

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CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The general management with its wide range of responsibilities like material management, manpower management, financial management, etc., should give its maximum attention on the human resources which requires utmost care. Personnel require welfare sources, staff development programmes, career progress and such type of many more needs which increase their efficiency to bring best results to organization.

The organizational performance and effectiveness depend on the behavior, performance: activities of its people. People are to be managed, developed and treated as an asset for the welfare of the organization. These people or in other words in manpower or human resources are the ‘personnel’ within whom the management is expected to maintain cordial relations. Personnel in other words are group of people collie together to accomplish certain tasks to achieve certain goals through their efforts and these efforts are facilitated by any agency or an organization which we call ‘personnel management, (Makinde, 2014).

The business world has become intensely competitive, survival and sustainability have become a reality for many business organizations. The competition has been born out of the rapid growth of technology and the overload of information available to business organizations today. This has made has improved the quality of products and services being offered by business organizations today (Makinde, 2014). With these increase in competition, businesses have been forced to develop areas of core competencies which they can use as areas of competitive advantage. As such, the employees of business organizations have become valuable assets to organizations and sources of competitive advantages which imply that their management and handling is pertinent to the success and sustainability of any business organization (Versailes, 2015). More so in Nigeria, with the scramble for talents high amongst business organizations especially in the banking industry, there is a need to for organizations to appropriately direct their human resource to meet their needs. Thus human resource planning has become a vital management tool for organizational performance (Iraniwo, 2016).

Personnel management includes the function of employment, development and compensation- These functions are performed primarily by the personnel management in consultation with other departments. Personnel management is an extension to general management. It is concerned with promoting and stimulating competent work force to make their fullest contribution to the concern.

Personnel management exists to advice and assists the line managers in personnel matters. Therefore, personnel department is a staff department of an organization.

Personnel management lays emphasize on action rather than making lengthy schedules, plans, and work methods. The problems and grievances of people at work can be solved more effectively through rationale personnel policies which is based on human orientation. It tries to help the workers to develop their potential fully to the concern. It also motivates the employees through its effective incentive plans so that the employees provide fullest co-operation. Personnel management deals with human resources of a concern. In context to human resources, it manages both individual as well as blue- collar workers.

1.2 Statement of Problem

The increase in the number of employees traceable to industrial revolution era and complexity in management constitute major problem in every business organization. Due to poor span of control a manager who used to manage twenty (20) instead of five (5) workers. This requires a lot of specialist skill and methods; hence there is need for personnel functions.

In view of the above, can an organization do without personnel management, in the area of human relations in an organization? This can be referred to as the interaction between management and workers, and the outside world, such as government, supplier’s contractors and all the external environment of an organization. Organization must improve the working performance and productivity, skills and ability of its employees.

The problems are how can effective training be determine? What particular training need is suitable for a particular work? Could it be right spoken then to say personnel unit in conjunction with employees department should handle training? What are the impacts by the personnel department as a vital unit in the achievement of overall objective of the organization? And how can we improve the uncongenial that use to occur between management and workers?

1.3 Objectives of the Study

The main objective of the study is to examine the effect of personnel management on organizational performance. However, the following are the specific objectives.

To ascertain the impact of personnel management on organizational performance.
To determine the basic personnel management functions on performance of the workers in an organization.
To elucidate some problems faced by a personnel manager in an organization.
To access the relationship between personnel management and organizational performance.

1.4 Research Questions

In an effort to get to the root of the effect of personnel management on organizational performance, this research is addressed to answer the following questions.

Does personnel management practice has any impact on organizational performance?
Does personnel management have any function in the organizations performance?

Are personnel managers faced with any problems in the organization?

Is there any relationship between personnel management and organizational performance?

1.5 Research Hypotheses

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

H0: There is no impact of personnel management on organizational performance.

H0: Personnel management does not have any function in the organizations performance.

H0: Personnel managers are not faced with any problems in the organization.

H0: There is relationship between personnel management and organizational performance.

1.6 Significance of the Study

The study will give a clear insight on impact of personnel management on organizational performance. The study will be beneficial to organizations and management of the organizations and the students. The study will serve as a reference to others researcher that will embark on this topic. The knowledge of the influence of effective management system practice will reduce the intractable problems usually associated with the organization under performance and thereby eliminate wastage and enhance productivity. This study will thus be significant in three:

It will help other researchers interested in the subject matter here in Nigeria and other developing countries.
It will complement existing literatures on the influence of effective management system practice

1.7 Scope and Limitation of the Study

The scope of the study covers the impact of personnel management on organizational performance. The researcher encounters some constrain which limited the scope of the study;

Availability of Research Material:The research material available to the researcher is insufficient, thereby limiting the study
Time:The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
Organizational Privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.

1.8 Definition of Terms

Personnel Management: Personnel management is an administrative function of an organization that exists to provide the personnel needed for organizational activities and to manage the general employee-employer relationship.

Organizational Performance: Organizational performance comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives).

Personnel: people employed in organization.

Performance- The action or process of performing a task or function

Management: The use of limited resources combined with forecasting, planning, leadership and execution skills to achieve predetermined specific goal.

Organization- An organized group of people with a particular purpose, such as a business or government department.

1.9 Profile of Company Studied

The Bank First Bank of Nigeria Plc was created by Sir Alfred Jones, a shipping magnate, in 1894. First Bank of Nigeria Plc has provided excellent banking services and contributed to the economic advancement and development of Nigeria for over 113 years. Incorporated as a limited liability company with its head office originally in Liverpool. First Bank commenced business on a modest scale in the premises of Elder Dempster and Company Limited in Lagos under the name Bank of British West Africa (BBWA) with paid-up capital of £12,000.00 (Twelve Thousand Pounds). This was after absorbing its predecessor, the African Banking Corporation, which was established in 1892, the Bank also acquired its first competitor, the Bank of Nigeria (previously called Anglo-African Bank) which was established in 1899 by the Royal Niger Company.

In its early years, the Bank worked closely with the colonial governments of British West Africa by performing the traditional functions of a central bank, including the issue and distribution of specie in the West African sub-region. Consequently, the Bank recorded impressive growth, opening its first branch office in Accra, Ghana in 1896, and a second branch in Freetown, Sierra Leone, two years later (1898). These marked the beginning of the Bank’s international banking operations.

By 1963, the Bank had 114 branches in West Africa, 59 of these were in Nigeria, 41 in Ghana, 11 in Sierra Leone, 1 in The Gambia and 2 in Cameroon. In 2002, the Bank established a wholly owned banking subsidiary in the United Kingdom, FBN Bank (UK) Limited, regulated by the Financial Services Authority (FSA). In this respect, the Bank is the first Nigerian bank to own a banking subsidiary in the UK. It also has a representative office in South Africa.

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