HUMAN RESOURCE MANAGEMENT AND ORGANIZATIONAL PRODUCTIVITY IN MANUFACTURING FIRM (2025, Study notes of Human Resource Management

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HUMAN RESOURCE MANAGEMENT AND ORGANIZATIONAL

PRODUCTIVITY IN MANUFACTURING FIRM (2025)

ABSTRACT

This study was carried out to investigate human resource management and organizational productivity in manufacturing. Specifically, the study aimed at examining the relationship between employee training and development, employee compensation and reward management, proper staffing, performance appraisal, and productivity in manufacturing firms. The study employed the survey descriptive research design. Questionnaire was used for data collection which was raised against a four Likert scale of Strongly Agree(SA), Agree(A), Strongly Disagree(SD) and Disagree(D) while the data collected were analyzed using mean and standard deviation. The hypothesis test was conducted using the ANOVA statistical tool, (SPSS v.23). A total of 155 respondents were conveniently selected as sample size comprising of staff of the four(4) selected manufacturing firms in Port- Harcourt, Rivers State. Out of the 155 respondents, 153 responses were received and validated from the survey. From the responses obtained and analyzed, the findings revealed that there is a significant positive relationship between employee training and development and productivity in manufacturing firms in Port-Harcourt, Rivers State. The study also unveiled that there is a significant positive relationship between employee compensation and reward management and productivity in manufacturing firms. The study therefore recommends that manufacturing companies should ensure that the company’s compensation system

must include policies, procedures and rules that provide clear and unambiguous determination and administration of workers compensation. To mention but a few. Keywords: Human Resource, Management, Employee, Productivity. CHAPTER ONE INTRODUCTION 1.1 Background to the study. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training (Bae & Lawler, 2012). Human Resource Management is also a complete and systematic approach to managing people, as well as the workplace culture and environment. Effective human resource management as posit by Carison & Seaman (2006) allows employees to contribute effectively and productively to the overall corporate direction as well as the achievement of the organization's goals and objectives. Human Resource Management is shifting away from conventional personnel, administration, and transactional functions that are increasingly being outsourced. HRM is today expected to contribute value to the strategic use of people and to have a quantifiable influence on the business through employee initiatives. According to Golding (2010), h uman resource management's new function entails strategic direction as well as HRM metrics and measurements to show. The quantity of organizational resources and their successful application determines the achievement of organizational goals. The human resource is one such vital organizational resource for accomplishing organizational objectives and goals.

Human resources, also known as human capital, are used to achieve a firm's goals through usage, harnessing, development, and direction. It is also about the development of values and attitudes. As a result, human resource development is a universal standard rather than a point of view. There is no industry, corporation, organization, commercial enterprise, nation, or other entity that can improve political, economic, and social stability, product quality, and profitability without appropriate human resources ( (Armstrong, 2008). Lack of trained labor, intense rivalry among enterprises, technical issues, low productivity, to name a few, all contribute to a high rate of bad performance and poor product implementation, limiting product expansion and productivity growth. As a result, the purpose of this research is to look at human resource management and organizational productivity in a manufacturing firm in Port Harcourt, Rivers State, Nigeria. 1.3 The purpose of the study The primary objectives of this study is to investigate human resource management and organizational productivity in manufacturing firms in Port Harcourt, Rivers State, Nigeria. Specifically, the study seeks to: i. Examine the relationship between employee training and development and productivity in manufacturing firms in Port-Harcourt, Rivers State. ii. Examine the relationship between employee compensation and reward management and productivity in manufacturing firms in Port-Harcourt, Rivers State. iii. Examine the relationship between proper staffing and productivity in manufacturing firms in Port-Harcourt, Rivers State.

iv. Examine the relationship between performance appraisal and productivity in manufacturing firms in Port-Harcourt, Rivers State. 1.4 The research questions The following questions guide this study: i. What is the relationship between employee training and development and productivity in manufacturing firms in Port-Harcourt, Rivers State? ii. What is the relationship between employee compensation and reward management and productivity in manufacturing firms in Port-Harcourt, Rivers State? iii. What is the relationship between proper staffing and productivity in manufacturing firms in Port-Harcourt, Rivers State? iv. What is the relationship between performance appraisal and productivity in manufacturing firms in Port-Harcourt, Rivers State? 1.5 The research hypotheses The following null hypotheses are formulated and tested in this study: H0 1 : There is no significant positive relationship between employee training and development and productivity in manufacturing firms in Port-Harcourt, Rivers State. H0 2 : There is no significant positive relationship between employee compensation and reward management and productivity in manufacturing firms in Port-Harcourt, Rivers State. H0 3 : There is no significant positive relationship between proper staffing and productivity in manufacturing firms in Port-Harcourt, Rivers State.

This study will further add to existing literature on this topic and shall serve as a benchmark for further research to scholars, researchers and students who may wish to carryout further studies on this study domain in the future. 1.8 Limitations of the study. Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection (internet, questionnaire, and interview), which is why the researcher resorted to a moderate choice of sample size. More so, the researcher will simultaneously engage in this study with other academic work. As a result, the amount of time spent on research will be reduced. 1.9 Definition of terms. Human Resources: This is the strategic and coherent approach to the management of an organization‟s most valued assets-the people working there. Management: In all business and organizational activities is the act of getting people together to accomplish desired goals and objectives efficiently and effectively. Management can also be referred to the person or people who perform the act(s) of management. Organizations: Organizations can be viewed as a system; it is a group of one or more people or entities. Productivity: This is the measure of how well an operational system functions; an indicator of efficiency, and effectiveness of a single firm or department. CHAPTER TWO LITERATURE REVIEW

2.1 THEORETICAL REVIEW

Resource-Based Theory By Porter (1985) Porter (1985) proposed the resource-based theory, which contends that organizations, institutions, and groups, among other sects, get their effectiveness from the presence of joint and numerous or various components of resources controlled by the organization. An organization's resources comprise its human, financial, material, and capital resources, which contain critical knowledge and skills, talent, and technological know-how. Despite the fact that all of these resources are critical to the survival and success of organizations, human resources take center stage in the utilization of all other resources (Porter, 1985) and thus require effective and efficient management systems to aid in their performance and utilization of other organizational resources. This is especially true given the scarcity and firmness of efficient human resources. Thus, human resource management necessitates the presence of policies that strive to aid in their performance at work. Recruitment and selection of highly qualified human resources, incentive and pay systems, and training and development programs are examples of such processes. HR practices, in general, seek to gain a competitive edge (Wright & McMahan, 2012). According to Lado and Wilson (2004), Mueller (2003), and Wright and McMahan (2012), human capital is the most crucial organizational resource for achieving organizational goals. Recognizing human resources as one of the most significant organizational resources necessitates the application of certain management procedures. Significantly, human resource practices have been focused on areas such as recruiting and selection, incentive and pay systems, training and development, and employee welfare (Armstrong, 2008). Following the push provided by resource-based theory to HR,

a tool for achieving the level of competitiveness that organizations require, as effective human resource practices put employees on the radar of effective and efficient performance. Following this theory's recognition of human resources as essential resources in organizations, it is used as the foundation for analysis and subsequent discussions to investigate human resource management and organizational productivity in manufacturing firms in Port Harcourt, Rivers state, Nigeria. According to the human capital theory, people resources are the most important resource in companies since they fulfill all other activities and obligations that contribute to the achievement of goals. In organizations, human resources act as a growth engine. They are in charge of directing machinery and technology, as well as managing human resources, developing policies and plans, and developing organizations. As a result of the crucial responsibilities that HR plays, it is critical for the creation of HR management measures in organizations such as manufacturing enterprises in Port Harcourt, Rivers state, Nigeria. This idea consequently provides impetus to the notions of human resource practices and policies in organizations, seeing human resources as critical to organizational performance. Human resource policies are necessary to guarantee the efficacy and efficiency of human capital performance in enterprises. Most businesses in Nigeria and throughout the globe have thus implemented numerous methods, procedures, and policies in regard to human capital management, and manufacturing enterprises in Port Harcourt, Rivers state, Nigeria are no exception. This theory is used to investigate how diverse HR practices in manufacturing enterprises in Port Harcourt, Rivers state, Nigeria impact productivity due to its acknowledgment of human capital and the existence of policies for their effective productivity.

2.2 CONCEPTUAL FRAMEWORK

Human Resource Management Human resource management is a discipline, a professional speciality that has emerged in recent years as a broad spectrum, including and synthesising diverse fields such as people management, organizational behavior, industrial and labor relations, and so on. According to Chris (2010), human resource management is the role inside a company that focuses on recruiting, management, and directing the people that work there. Line managers can also do human resource management. Compensation, recruiting, performance management, organizational growth, safety, wellness, benefits, employee engagement, communication, administration, and training are all examples of human resource management challenges (Chris, 2010). Human resource management is also a systematic and all-encompassing approach to managing people, work environments, cultures, and environments. Human resource management that is successful allows employees to contribute effectively and productively to the overall corporate direction as well as the achievement of the organization's goals and objectives (Chris, 2010). Renses Lickert (2005), quoted in Golding (2010), describes the critical significance of human resources in an organization as a component of management success or failure as follows: All of the actions of any organization are launched and determined by the people who comprise the institution, plant, and offices. Of all management tasks, managing the human component is the fundamental and most significant responsibility since everything else is dependent on how it is done. Human resource management refers to the policies and practices involved in carrying out the human resources aspect of a management position, such as human resource planning, job analysis, recruitment, selection, orientation, compensation, performance appraisal,

It is important to note that it is the individual who determines and chooses which type of organization's human resources she wants to belong to, which means that people are not forced to belong to an organization's human resources; rather, it is a person's determination, zeal, expertise, and ambition that make one belong to the organization's work force. As a result, human resources are an organization's most valuable asset. It accounts for a larger and more fair proportion of the organization's resources. Human resources are directly related to an organization's success and so must be managed; manpower planning is the process by which management seeks to provide for its human resources to fulfill its job. History of Human Resource Management Human Resources Management is a purposeful and cohesive approach to the management of an organization's most valuable assets: the people who work there and contribute individually and collectively to the fulfillment of the business's objectives. As a description of the processes involved in managing people in businesses, the terms "Human Resources Management" and "Human Resources" (HR) have essentially superseded the word "Personnel Management." Human Resource Management is rapidly developing. Human resource management is both an academic theory and a corporate practice that tackles both the theoretical and practical aspects of workforce management (Boxall, 1992). Human Resource Management has its origins in the late and early 1900s, when people' employment became less labor intensive and more dependent on machines. The function's early evolution may be traced back to at least two separate motions. One part dates back to the late 1800s, when companies like Cadbury in Bourneville understood the significance of caring after the wellbeing of their employees and their families. During World War I, the employment of women in

industries led to the establishment of "welfare officers." Meanwhile, in the early 1900s, the notion of human resources arose in response to the desire for more efficient working methods within highly automated companies, such as the Ford Motor Company, as a counter to the efficiency focus of taylorism or scientific management. By 1920, psychologists and employment specialists had launched the human relations movement, which saw people as psychologically suited with corporations rather than replaceable pieces. After the Second World War, bigger firms arose in the mid-twentieth century and hired employees who were able to use new selection, training, leadership, and management development strategies established by the armed forces. Similarly, several of Europe's biggest multinational corporations devised innovative techniques to staff development while drawing on comparable ideas already utilized in civil service training. Gradually, more complicated regulations and processes emerged, necessitating greater central management through a personnel department comprised of experts and generalist teams. Throughout the middle of the twentieth century, the function of what became known as human resources expanded. Tensions existed between academics who advocated for either a soft or a hard human resource. Those dealing with so-called "soft human resources" emphasized topics such as leadership, cohesiveness, and loyalty, all of which play essential roles in organizational performance. In the 1960s, proponents of "hard human resources" advocated for more statistically rigorous management practices. The title and conventional role of personnel a function were gradually overtaken in the later part of the last century by the rise, at least in bigger businesses, of strategic

2. HR are rare in the sense that a person with high level of the needed skills and knowledge is not common. An organization may spend several months searching for talented employee.
3. HR cannot be imitated. It will be impossible to find and employ HR that can do precisely the same thing so that advantage of a competitor could easily be eliminated.
4. HR have no good substitutes: Proper training and motivation will cause employees to learn, develop their abilities, and care about customers. It is difficult to imagine another resource that can match committed and talented employees. Objectives of Human Resource Management Human Resource Management core objective is corporate survival through the achievement of personnel satisfaction. Ivancevich (2004) affirmed that the contributions HRM makes to organizational effectiveness include the following:
5. Helping the Organization Reach its Goal: Since every business issue has HR implications, it is the objective of the HR function to ensure that the organization has the pole that will bridge the gap between where the organization is and where it wants to be.
6. Efficiently Employing the Skills and Abilities of the Workforce: The HR function seeks to develop an organizational climate that will ensure the skills and abilities of the workforce.
7. Providing Well-Trained and Well-Motivated Employees: It is the objective of the HR function to ensure that organizational employees are well trained and well motivated so that they can perform at optimal levels.
8. Increasing Employee’s Job Satisfaction and Self-Actualization: To ensure that employees are productive by matching them to jobs that meet their abilities and also ensuring that they are equitably treated.

5. Achieving Quality of Work Life: This is closely related to increasing employee‟s satisfaction and self-actualization. Quality of work life generally refers to several aspects of the job experience. These include factors as management and supervisory style, freedom and autonomy to make decisions on job satisfaction, physical surrounding, job safety, satisfaction working hours and meaningful tasks.
6. Communicating HRM Policies to all Employees: To communicate HRM policies, programmes and procedures in the fullest sense to all employees in the organizations. This also include communicating with top-management people to illustrate what it can offer on these areas in the form of support, counsel, and techniques and to increase its contribution to the overall strategic mission and goals of the organization.
7. Maintaining Ethical Policies and Socially Responsible Behaviour: In carrying out the HR functions, the HR managers is to show by example that each employee is important and will be treated ethically. i.e. an assurance that any activity engaged in by the HRM area will be fair, truthful, and honourable, people will not be discriminated against and other basic rights will be protected. These ethical principles should apply to all activities.
8. Managing Change: The fast pace of change taking place in the workplace is giving new meanings to the employment relationship. What these change mean to the HR manager is that new, flexible approaches must be initiated and used effectively without jeopardizing the survival of the organization. Human Resource Management Practices in Manufacturing Firms Recruitment and Selection

Compensation and Reward Management Staff compensation, sometimes known as "pay," influences how much and how well employees work (Yoder & Staudohar, 1982). The majority of workplace disagreements may be explained by low pay and other pay-related difficulties. Pay discontent can lead to decreased work performance, increased grievances, chronic absenteeism, and increased labor turnover. Excessive pay expenditures, on the other side, might impair an organization's competitiveness and capacity to generate jobs (Pattanayak, 2010). A good pay scheme should strike a balance between employee happiness and competitiveness. Pay is a contractual phenomena since the payment of salaries and wages indicates the existence of a connection and transaction between employees and employers. It is a remuneration or a quid pro quo given to employees in exchange for their services. Staff pay, often known as compensation, refers to the entirety of both financial and non-financial benefits received by an employee in exchange for his or her labor or services to an employer or organization. It comprises basic compensation, incentives, and a slew of financial and non-financial perks (Banjoko, 2006). "Compensation is the amount of money that employees receive in exchange for their contributions to the organization" (Pattanayak, 2010). According to Flippo (1984), compensation refers to the sufficient and equitable reward of employees for their contributions to the organization's goals. Flippo defined three types of remuneration: base wage or salary (to attract competent candidates), variable compensation (to incentivize work performance), and supplemental fringe perks (to retain talented staff). The essence of excellent pay systems is therefore to recruit, motivate, and retain qualified employees. Armstrong in 2009 provides a thorough explanation of the concepts of complete recompense and total reward. Training and Development

The term "training" has been defined in a variety of ways. According to Obisi (1996), quoting Steinmetz (1969), training is defined as a short-term process that employs a systematic and organized approach to teach non-managerial staff technical knowledge and skills for a specific goal. As a result, training is targeted and directed. According to Fajana (2002), training is the process of acquiring skills and learning concepts, rules, or attitudes in order to maximize effectiveness on a certain profession. Training, according to Armstrong (2001), is the formal and systematic alteration of behavior via learning that occurs as a result of education, teaching, development, and planned experience. The term "development" has been defined in a variety of ways. According to Obisi (1996), quoting Steinmetz (1969), development is a long- term educational process in which managerial employees obtain conceptual and theoretical knowledge for general purposes through a systematic and coordinated approach. As a result, development is broad, ad hoc, and all-encompassing. Management development, according to Armstrong (2001), is focused with increasing managers' effectiveness in their current jobs and preparing them for bigger responsibilities in the future. As a result of the foregoing, we can clearly infer that, although training is geared for non-management individuals, development is designed for managerial personnel. Promotion, Transfer and Staff Separation Promotion denotes a change from a lower level of responsibility to a greater degree of responsibility, frequently with a rise in compensation. According to Rao (2005), promotion is an employee's upward migration from one position to another that is greater in compensation, responsibility, and organizational level. A promotion is an employee's progression or upward mobility within an organization to a position