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TITLE PAGE
DETERMINANTS OF EFFECTIVE HUMAN RESOURCE MANAGEMENT IN PROTEA
HOTEL RESORT, ENUGU
LINGE ADAMU PEKAMAH PG/MBA/09/53672
A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
AWARD OF MASTER OF BUSINESS ADMINISTRATION (MBA) DEGREE IN MANAGEMENT.
DEPARTMENT OF MANAGEMENT FACULTY OF BUSINESS ADMINISTRATION
UNIVERSITY OF NIGERIA ENUGU CAMPUS
SUPERVISOR: MR. C. O. CHUKWU
APRIL 2011
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APPROVAL PAGE
This thesis has been approved for the Department of
Management, Faculty of Business Administration,
University of Nigeria, Enugu Campus.
By
_________________________ ________________________ MR. C. O. Chukwu Date (Supervisor)
_________________________ ________________________ Prof. Ewurum Date (Head of Department)
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CERTIFICATION
I, LINGE ADAMU PEKAMAH, a Postgraduate student in
the Department of Management with Registration Number of
PG/MBA/09/53672 has satisfactorily completed the
requirement for research work for the degree of master of
Business Administration in Management.
The work incorporated in this thesis is original and has
to the best of my knowledge not been submitted in part or in
full for any other Diploma or Degree of this or any other
institution of higher learning.
_________________________ _______________________ Linge Adamu Pekamah Date (Researcher)
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DEDICATION
This work is dedicated to all men of goodwill whose
uprightness remain the only source of hope for our failing
generation.
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ACKNOWLEDGMENT
First of all, my greatest thanks, honour and adoration go
to Almighty God for his grace, blessing, mercy and protection
throughout my study in the University of Nigeria.
I humbly want to express my profound gratitude to
actualization of this project in MBA Management.
I wish to acknowledge my indebtedness to my Brothers,
Sisters, and Mentor – Mr. Linge Tata Sule (Moh).
I am deeply indebted to my able, dedicated and ever
caring supervisor, Mr. C. O. Chukwu whose guidance, advice,
and encouragement have incredible impact on my study and
made this work a success. My gratitude also goes to my HOD –
Dr. Ewurum and other bunch of intellectuals in the
Management Department among whom are Mr. Chukwuemeka
Nnadi, Prof. B. I Chukwu, Mr. S. N. Kodjo, J. U. J Onwumere
and other lecturers in management science for their sincere
contributions during my course of study.
My appreciation goes to my beloved brothers and sisters
Miss Leinyuy Edel, Linge Marie, Chunje, Linge, Isa, Linge
Richard, Linge Ayuba, Linge Abdu prendap, Linge Sidiki, Linge
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Enusa, Linge Beginsu, Nah Dairu. Also my greetings goes to
my friends Viginie Jean Marie, Thomas Oben Ashu, Itoro
Essien, Cy Onyemaechi, Obaje Sunday, Mr. James, Okolo
Victor.
I also acknowledge the untiring moral and financial
support from Dr. Makazi, Mr. Isa Agaie, Mr. Gaji, Mr. Ivo
Leinyuy, Mr. and Mrs. John Maduka, Mr. Tita Nkanghamih
Cletus. I pray to the God Almighty to guide, protect, bless and
reward them in one way or the other for their contributions
towards my success in life.
Generally, I am highly indebted to all individuals, groups,
organizations that have contributed in one way or the other to
the production of this work.
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TABLE OF CONTENTS
Title Page … … … … … … … … … i
Certification Page … … … … … … … ii
Dedication … .. … … … … … … iii
Acknowledgments … … … … … … … iv
Table of Contents … … … … … … … v
List of Tables … … … … … … … … xi
Abstract … … … … … … … … … xii
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study … … … … … 1
1.2 Statement of the Problem … … … … … 7
1.3 Objectives of the Study … … … … … … 8
1.4 Research Questions … … … … … … 9
1.5 Research Hypotheses … … … … … … 10
1.6 Significance of the Study … … … … … 10
1.7 Scope of the Study … … … … … … 11
1.8 Limitations of the Study … … … … … 12
Definition of Terms … … … … … … 13
References … … … … … … … 14
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CHAPTER TWO: LITERATURE REVIEW
2.1 Meaning of Human Resources … … … … 15
2.2 Meaning of Management … … … … … 18
2.3 Definition and Meaning of Human
Resources Management … … … … … 27
2.4 Hospitality Industry … … … … … … 33
2.5 Determine the Effective Human Resource Need
in the Hospitality Industry … … … … … 36
2.6 Human Resources Functions … … … … 52
2.7 Human Resources Utilization … … … … 56
2.8 Human Resources Planning … … … … 58
2.8.1 Recruitment … … … … … … … 60
2.8.2 Selection … … … … … … … … 60
2.8.3 Job Offer … … … … … … … … 61
2.8.4 Placement … … … … … … … … 62
2.8.5 Induction … … … … … … … … 62
2.9 Human Resources Training and Development … 63
2.9.1 On-The-Job Training … … … … … 64
2.9.2: Off-The-Job Training … … … … … … 65
2.10 Compensation (Remunerations and Rewards) … 66
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2.11 Discipline and Termination … … … … … 67
2.12 Human Resource Management Objectives … … 69
2.13 Determining Human Resource Need of
Organization … … … … … .. … … 76
2.14 Benefits of Human Resource
Management to Organizations … … … … 84
References … … … … … … … 87
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction … … … … … … … 95
3.2 Research Design … … … … … … … 95
3.3 Population … … … … … … … … 95
3.4 Sample Size Determination and Sampling
Techniques … … … … … … … 96
3.5 Sources of Data … … … … … … 97
3.5.1 Primary Source … … … … … … … 97
3.5.2 Secondary Data … … … … … … … 97
3.6 Area of Study … … … … … … … 98
3.7 Reliability of the Research Instruments … … 98
3.8 Validity of the Instruments … … … … … 99
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3.9 Data Collection and Procedure … … … … 99
3.10 Data Analysis Technique … … … … … 99
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Presentation and Analysis of Data … … … 100
4.2 Test of Hypothesis … … … … … … 108
CHAPTER FIVE: SUMMARY, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings … … … … … 112
5.2 Conclusion … … … … … … … … 113
5.3 Recommendations … … … … …. … 114
Bibliography … … … … … … … 116
Appendix … … … … … … … … 119
Questionnaire … … … … … … … 120
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LIST OF TABLES
Table 4.1: Administration of Questionnaires … 100
Table 4.2: Sex Distribution of Respondents ... … 101
Table 4.3: Status of Respondents … … … 102
Table 4.4: Responses to the Industry Having Policies on Human Resources Management ... … … … … 102 Table 4.5: Human Resources Policies of the Industry … … … … … … 102 Table 4.6: Types of Staff Training and Development Programmes … … 103
Table 4.7: Responses to Training and Development Being Effective In the Industry … … … … … … 104
Table 4.8: Compensation Policies … … … 105
Table 4.9: Responses to Compensation/Rewards
Being Effective in the Industry… … 105
Table 4.10: Disciplinary Measures in the Industry… 106
Table 4.11: Social Security Schemes in the Industry … … … … … 107
Table 4.12: Responses to Employees Being Adequately Compensated When Discharged … … … … 107
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ABSTRACT
The aim of this study is on Determinants of effective Human Resource Management in Protea Hotel (Nike Lake Resort Enugu State). Ineffective employee training and development programmes which makes employees inequipped are some of the hindrance that prevent the effective human resource management in an organization. The study examined the recruitments, section, training, development and management of employee. Methods was based on the used of questionnaire and secondary data from the organization. It was revealed that Protea Hotel adopt on the job method of training which improved workers productivity. The hotel cannot improve service delivery without investing on human resources. One of the major recommendation amongst others was that retire staff should not suffer after being disengaged from work.
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DETERMINANTS OF EFFECTIVE HUMAN RESOURCE MANAGEMENT IN PROTEA
HOTEL RESORT, ENUGU
LINGE ADAMU PEKAMAH PG/MBA/09/53672
DEPARTMENT OF MANAGEMENT FACULTY OF BUSINESS ADMINISTRATION
UNIVERSITY OF NIGERIA ENUGU CAMPUS
APRIL 2011
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CHAPTER ONE
INTRODUCTION
1.8 BACKGROUND OF THE STUDY
Human Resources are easily recognized as the most
important resources required for the production of goods and
services, as well as the key to rapid socio-economic
development and efficient service delivery. (Churchman,
2004:64), human resources include all the experience, skills,
judgment, abilities, knowledge, contacts, risk taking and
wisdom of individuals and associates within an organization.
Without an adequate skilled and well motivated workforce
operating with a sound human resources management
programme, there will not be development. Any organization
that underrates the critical role and under plays the
importance of people or human resources in goal achievement
can neither be effective nor efficient.
The realization of the value of human resource in any
organization has in recent time led to a more human focused
approach in managing organizations. Thus, human resources
management has gained prominence in business
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management. Human resources management is a modern
term for what has been traditionally refereed to as personnel
management. A strong tendency to adopt the term ‘human
resources management’ as a substitute for ‘personnel
management’ has developed and grown stronger (Ikeagwu,
1998:96). Human resources management embraces those
activities designed to provide for and co-ordinate the human
resources of an organization. It involves management
decisions and practices that directly affect or influence the
people who work in the organization (Ugbaja, 2002:78).
The burden of human resources management rests
squarely with line and functional managers who as
departmental heads, design and utilize the elements of human
resources process in their departments and units. Indeed
every manager should be well acquainted with human
resources management process and procedures should not
only co-operate maximally with the director of human
resource, as a specialist but also apply relevant elements and
procedures of the process, in most effective manner, at various
levels of the organization. This is the only way the work force
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can be effectively engaged for the achievement of
organizational goals (Eze, 2002:33). They are particularly keen
to employing individuals who can operate flexibility and adapt
to different tasks as opposed to keeping rigidly defining job
demarcations. They must also be able to adapt to rapidly
changing work arrangements.
Some of the human resources challenges that face most
organizations are in recruitment, performance appraisal,
training and development, motivation and compensation
management, etc. Recruitment has become an important
element in human resources management. The challenge does
not end with recruiting the right people but how to ensure
effective appraisal of employees’ performance by stating and
communicating clear performance standards to employees at
the beginning of and throughout, the review period by the
manager. By evaluating employees, factors such as experience
and training of the employee, job description and employees
attainment of previously set goals and objectives has to be
taken into consideration by the manager. With respect to
training and development, the challenge is developing and
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implementing suitable training programme so that the
employees are well equipped to handle challenges ahead
(Nelson, 2005:2). Offering the best possible compensation
package is in itself a challenge. But, the real challenge is how
to incorporate all these elements which are Recruitments,
selection, placement, training, performance, appraisal,
motivation, compensation, induction, training and
development in human resources management and use them
in achieving the ultimate goal of the organization, which
requires exceptional performance. Many hospitality industries
have one or a few of these elements which are recruitment,
performance appraisal, motivation, compensation, training
and development but very few operate the whole package. So
completely developed human resources management remains
an unusual management style. It is against this background
that this study will emphasize on the Determinants of effective
human resources management in the hospitality industry.
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PROTEA HOTEL ENUGU (NIKE LAKE RESORT)
Protea Hotel (Nike Lake Resort) is a three star
International Party government owned hotel. The land on
which the hotel is situated is owned by Nike people. The hotel
was built during the regime of Governor Jim Ifeanyichukwu
Nwobodo, the first civilian governor of Enugu State who ruled
from 1979 to 1983. At the on set, the original name of the
hotel was not Protea Hotel but Nike Lake Resort.
Governor Jim Nwobodo took up the project immediately
after visiting Italy where the signed the contract with an Italian
firm. He received assistance from the former Anambra State
government. Governor Jim Nwobodo after laying the
foundation could not continue as a result of the inability of the
government of Nigeria to assist him in doing the work, when
his tenure was over the contract was taken by the next
Military Governor Akonobi and the project was commissioned
by General Sani Abacha (the third president of the Federal
Republic of Nigeria.
The hotel was managed by the Enugu State government
until later in year 2000, when a foreign consortium, Protea
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Hotel took over the hotel. This body (Protea) practically
contributed generously in making it possible to complete and
bring the dreams of the state government to actualization. The
board of directors of Protea hotel (Nike Lake Resort) is made
up of some politicians, businessmen and wealthy individuals.
From the year 2000 when the management by Protea started,
there arose a need for a white man to be the general manager
of the hotel to reshape the hotel the way it will appeal to the
guests and the management team now ranges from the general
manager to other classes of staff. Protea hotel pays the state
government dividends for the profit made. Today, Protea Hotel
continues to receive some assistance from the state
government for its renovation programme but more often than
not, the major funding comes from the hole itself.
♦ Furthermore, Protea Hotel (Nike Lake Resort) as the
name implies comprises both hotel and lake. The hotel is
affiliated to Protea Hotels South Africa.
The hotel is affiliated to Protea Hotels South Africa.
Protea Hotel is classified as a three-star international hotel.
This classification was made after the quality of services and
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facilities available within the hotel were graded by General
Sani Abacha (the third president of the Federal Republic of
Nigeria. The lake side and other facilities constitute the
interior of the hotel complex. The indices used for the above
classification is that they offer good services and
accommodation facilities for moderate guests and they cater
for international travelers who cherish privacy.
Protea Hotel, Enugu is a quite hospitality outfit located
on the outskirt of Enugu town. It has a good number of room
configurations that serve the interest of various categories of
guest/visitors. The decoration and luxury of the hotel are the
first among equal in Enugu State. The hotel has remained one
of the leading hotels in the State and has its facilities
upgraded.
1.9 STATEMENT OF THE PROBLEM
Unfortunately, most organizations (hospitality
organizations inclusive) have not imbibe effective human
resource management culture. This poses challenges to them
on account of the following:
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i. Ineffective recruitment and selection policies arising from
inability to identify employee requirement and need(s).
ii. Ineffective employee training and development
programmes which makes employee(s) unequipped to
handle the challenges ahead.
iii. Culture diversity and the anticipated problem(s) it poses
to human resource management.
iv. Inadequate employee compensation which leads to low
productivity succinctly, one can say that it is one of the
engine room for motivation (other motivating factors are
social security schemes, job security and satisfaction
etc).
v. Globalization challenges in hospitality industry.
1.10 OBJECTIVES OF THE STUDY
In view of the above, the objectives of the study will
include;
i. To examine the recruitment, selection and placement of
employees in the industry.
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ii. To examine employee training and development
prorgammes in the industry.
iii. To examine management employee relations in the
industry and to determine how it affects workers
productivity.
iv. To examine the compensation, reward policy and social
security schemes of the industry.
v. To determine the impediments to effective human
resource management in Protea Hotel.
1.11 RESEARCH QUESTIONS
The following questions will be addressed in this study;
1. Is the human resource policy effective in the industry?
2. To what extent are employees train and develop in the
industry?
3. To what extent is compensation reward policies and
social security scheme effective in the industry?
4. What are the impediments to effective human resource
management in Protea Hotel?
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5. To what extent does management relationship affect
workers productivity?
6. To what extent is employment process effective in the
industry?
1.12 RESEARCH HYPOTHESES
The following hypotheses are put forward for this study;
i. HO: Human resource policies is not effective in the
industry.
HI: Human resource policy is effective in the industry.
ii. HO: Employee are not properly train and develop in the
industry.
HI: Employee are properly train in the industry.
iii. HO: Compensation, reward policies and social security
system are not effective in the industry.
HI: Compensation, reward relationship and social
security system are effective in the industry.
iv. HO: Labour management relationship does not affect
worker productivity in the industry.
HI: Labour management relationship affect workers
productivity in the industry.
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v. HO: Employment process is not effective in the industry.
HI: Employment process is effective in the industry.
vi. HO: There are no impediments to effective human
resource management in the industry.
HI: There are impediments to effective human resource
management in the industry.
1.13 SIGNIFICANCE OF THE STUDY
The significance of this study can be viewed from two
major standpoints-academic and practical.
For the academic significance, this kind of study will
provide meaningful information to the existing staff and the
entire members of the public especially students who may
likely wish to take up an appointment with the industry. It is
intended to serve as an eye-opener to the individual staff to
equip themselves with proper educational qualification before
taking up an appointment with the industry so that they can
aspire to the highest post in the industry.
In the practical significance, the work has practical
implications for hotel operators; human resources managers
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in the hospitality industry, workers in the hotel industry and
employers of labour in general. This is necessary as the study
will provide information on recruitment, selection and training
of workers in these areas. It would also help to bring ideas
which include flexibility, customer orientation, a focus on
quality and a strong sense of employed commitment to the
industry.
With regards to the nation, the research will show the
proper benefits of human resources management practices in
the hospitality industry to the economy of the nation.
1.7 SCOPE OF THE STUDY
This project is a study of the Determinant of effective
human resources management in organization which are
recruitment, selection, training, placement, performance
appraisal, of a given hospitality Industry namely Protea Hotel
Enugu (Nike Lake Resort). Data shall be collected from the
employees of the Industry to enable the researcher draw
acceptable conclusions on the various questions raised in this
research work.
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1.8 LIMITATIONS OF THE STUDY
However, the researcher work was confronted with a lot
of difficulties. These are.
(a) The employee does not cooperate easily with the
researcher during the questionaring and interview. A
good number could not oblige and so denied information
for the study.
(b) The study could not be extended to include more than
one hospitality industry or company because of the
reliability of the researcher to finance on extensive study
that would involved more companies located in various
part of Nigeria.
(c) It is difficult to carryout this study in the face of pressure
put on the researcher by other academic work. Carrying
out this study when other academic work were becoming
tedious made the study a difficult exercise.
DEFINITION OF TERMS
Determinant: Something that controls or influence what will
happen
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Effective: This means having a particular role or result in
practice.
Organization: Is the study of structure, function and
performance of individuals and groups within the
organization.
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REFERENCES
Barney, J. B. (1995:50), Looking Inside for Competitive
Academy of Management Executive. Eze F. C., (2002:26), Human Resources Management in Nigeria.
The Key Component. Enuug: Mekanand Publications.
Nwatu, R. (2000:72), Human Capital Investment. Lagos: Cassel Ltd.
Ugbaja, C. O. (2002:16), Human Resources Management.
Lagos: Ilupeju Press.
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CHAPTER TWO
LITERATURE REVIEW
In this chapter, the researcher reviews some relevant
literature on the subject matter.
2.1 MEANING OF HUMAN RESOURCES
Human resources are clearly the most important asset of
any organization and a resource which needs to be managed.
People are individuals who bring their own perceptions,
attributes, feelings towards the organization’s systems and
styles of management, their duties and responsibilities and the
conditions under which they are working. Whatever the nature
of the work of the organization, a manager achieves results
through the performance of other people. Recognition of the
needs and wants of staff and of the nature of their grievance is
a positive step in monitoring them to perform well. The
efficiency of staff, their commitment to the aims of the
organization, the skills and attitudes they bring to bear on the
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quality of service offered are fostered by good human
relationship and effective human resources management
policy and practice. The effective management of people in
influenced by the philosophy of top management and the
attributes which they bring to bear on relationship with staff,
and the problems which affect them (Laurie, 2004:747).
According to (Barney, 1995:50), human resource
includes all the experience, skills, judgment, abilities,
knowledge, contacts, risk taking and wisdom of individuals
and associates within an organization. Without an adequate
skilled and well motivated work force operating within a sound
human resources management programme, development is
not possible. A manager or an employee, whether in the
private or public sector, which underrates the critical role and
underplays the importance of people in goal achievement can
neither be effective nor efficient. (Dieke, 2001:16) human
resource can be described as the pool of human capital under
and organization’s control in a direct employment relationship.
Human resources are important source of sustained
competitive advantage in the international hospitality
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industry. (Onah, 2003:6) views human resources as the
financial technological and other resources that are managed
in organizations. The quality of human resources in hospitality
industry will allow enterprises to gain a competitive edge and
deliver added value with their services, because hospitality
industry is a high-touch, high tech, high involvement industry
where it is the people who make the difference.
Though human resources have been part of business and
organizations since the first days of agriculture, the modern
concept of human resources began in reaction to the efficiency
focus of Taylorism in the early 1900s. By 1920, psychologists
and employment experts started the human relations
movement, which viewed workers in terms of their psychology
and fit with companies, rather than as interchangeable parts.
This movement grew throughout the middle of the 20th
century, placing emphasis on how leadership, cohesion and
loyalty played important roles in organizational success.
Although this view was increasingly challenged by more
quantitatively rigorous and less “soft” management techniques
in the 1960s and beyond, human resources development had
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gained a permanent role within organizations, agencies and
nations, increasingly as not only an academic discipline, but
as a central theme in development policy.
2.6 MEANING OF MANAGEMENT
At this point, it is pertinent to understand the meaning of
management from the restricted perspective before applying
the concept of human resources. According to (Robert, 1994:5)
management is the process by which scarce resources are
combined to achieve given ends. This describes an activity
which can be better described by the word managing.
Management could be considered to be a process whereby a
suitable environment is created to be organized to accomplish
desired goals. To achieve this, the manager must coordinate
several interrelated functions namely, planning function which
includes the forecasting and selecting of objectives with the
policies, programmes and procedures for achieving them.
Organizing function, involves grouping the activities needs to
achieve the objectives and assigning them to managers,
ensuring effective delegation of authority and providing co-
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ordination of authority relationships. Staffing function,
involves having people in positions needed in the organization
structure, defining of personnel requirements for each job,
appraising and selecting candidates, training and developing
them. Directing function, involves guiding and supervising
subordinates. In controlling function, performance should be
measured and deviations from plans corrected or accounted
for. According to (Eze, 2002: 26), Management is a process by
which organization set and achieve their goals through
planning, organizing, controlling and co-ordination their
human and material resources (men, money and materials).
Human resources constitute a critical factor in this process.
(Eboh, 2002:8) defines it as the co-ordination of an
organization’s resources aimed at achieving a predetermined
goal or objective. It could be referred to as group of people in
an organization. This is because for them to come together
requires the co-ordination of the various recourses; human,
material, financial and information. Indeed, organizations
would have remained a mere figment of imagination without
management because that would rob it of the backbone upon
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which it is built. In an organization, human resources is the
human labour that translates the organization’s inputs into
output. These are the employees of an organization. According
to (Akpala, 1990:1) Management is the process by which an
organization’s resources of men, money and materials are
combined and utilized in other to produce output and achieve
other goals of the organization.
(Glassman, 1998:51) defines it as a process through
which organization seek to utilize their resources to achieve
their established goals and objectives. To achieve this, the
manager must co-ordinate several interrelated functions which
include planning, organizing, directing and controlling. An
organization’s three main resources of men, materials and
money are co-ordinate for specific purposes in the process of
management. It could also be defined as the art and science of
getting things done through others, generally by organizing
and directing their activities on the job. A manager is therefore
someone who defines, plans, guides, assists and assesses the
work of others, usually people for whom the manager is
responsible in an organization. In the early 1900s, the
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professional status of management got a big boost from the
concept of scientific management. Frederick Taylor was “the
father of scientific management”. Taylor believed that
managers could improve the productivity of workers if they
understood workers task and then properly plan each task for
each workers. “Taylorism,” as scientific management came to
be called, led to legions of efficiency experts doing time and
motion studies in organizations. This led to the redesign of
work through establishing and maintaining high level of
quality products and services. Many of which were introduced
by Taylor or those who extended his work. Today, the quest for
better management practices continues with as much
intensity as ever with more intensity than in many eras.
Infact, business now occurs on a more international scale
than in the past, so competition is tougher than ever.
Customers become more sophisticated and demanding with
each passing year. Technology creates (and destroys)
companies and even industries more quickly than ever. So
managers face challenges as great as or greater than they did
in any other time. Despite all these business will always need
36
managers because no business can manage itself. Economic
and competitive conditions will always present challenges (a
business must always do better no matter how well it is
doing). Those who understand the job of the manager and
dedicate themselves to doing it well will always have a
business to manage and will be prepared to deal with the
challenges.
Six business principles every manager must know:
7. Value for customers
8. Organization
9. Competitive advantage
10. Control.
11. Profitability
12. Ethical practices.
� Value for Customers: A business exists to create value
for some kind. It takes raw materials or activities and
increases their value in some way, transforming them
into products or services that customers will buy. Value
is what customers pay for. Customers buy things that
they value. A business and its managers must create
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value for customers. This can be done in almost limitless
ways because human desires are limitless. But a single
business cannot serve limitless desires. Instead, it must
create a specific kind of value in a specific way. In other
words, management must decide what the business will
do, and then organize itself accordingly.
� Organization: An organization must have goals and the
resources (human, material and financial) to meet those
goals. It must keep track of what it does and how well it
does. Each department has to perform its function
properly. Employees must be assigned specific tasks that
move the outfit towards its goals. Management is
responsible for keeping the company organized. The
employees (human resources) and all other resources of
the business, such as equipment, floor space and money
must also be organized. Managers achieve organization
by means of structure. For example, the company’s
financial structure organizes the way it handles money.
The sales force can be structured into sales teams by
geography, by products, or both. Companies achieve
38
organization in various ways. Some take a highly
structured, almost military approach, with strict
hierarchies, sharply defined duties, and formal protocol.
Other outfits take amore informal approach, which allows
people greater leeway and creates a more unstructured
environment. A highly structured company will become
disorganized if management fails to manage properly.
And even a loose structured company will be organized
as long as management does its job.
� Competitive Advantage: To succeed in particular
market, a company must do something better than other
companies in that business. Doing something better
creates a competitive advantage. That “something” may
be only one aspect of the product or service, as long as
customers value it highly. For example, a company can
gain a competitive advantage by offering the widest
selection of products, rock bottom prices, high quality,
and great service. Managers decide what basis the
company will compete on, and they must be quite clear
about this. For example, despite advertising claims, no
39
company can really provide both the highest quality and
the lowest price, at least not for long. It can offer the
highest quality in a certain price range, but not at the
lowest price. So management must decide whether it
wants to complete on quality, price, service or
convenience of location, etc. Then the company should
be managed so that it does complete on that basis by
delivering that advantage to customers.
� Control: After management decides how to create value,
organize the business and establish a competitive
advantage, the outfit must be controlled. Employees
must know the company’s goals and be assigned tasks
that will move everyone towards those goals. These
controls are based mostly on information that supports
them on proper management.
� Profitability: A business has to make money to earn a
profit on its operation. The most basic goal of
management is to make money for the business owners.
Regardless of how well they do anything else, managers
who lose money for their owners will not keep their jobs
40
for long. Whatever a business does, its overall goal must
be profitability.
� Practicing Ethical Practices: Today’s competitiveness
and the drive for profits have been blamed for an
upswing in dishonesty and greed in business. It is worth
nothing here that integrity has always been a
fundamental principles of business, if not other reason
than the lack of it destroys companies.
The principles summarized underline everything a
manager does. That is, all the activities of management have
one collective aim: to make these concepts real for the
company and its employees and customers. Management must
create a specific kind of value for customers, keep the
company organized, decide what basis the company will
compete on, control and know the company’s goals and assign
tasks that will move everyone towards those goals. The most
basic goal of management is to make money for the business
owners and hold themselves to the highest ethical standards.
41
Human resources management has a primary goal in my
organization and that is to facilitate organizational
performance through increased productivity. Productivity,
according to (Byars, 1999:22) is the efficiency with which an
organization uses its resources like labour, capital materials to
achieve its goals.
2.7 DEFINITION AND MEANING OF HUMAN RESOURCES
MANAGEMENT
It is evident from reviewing the literature that the
meaning and theoretical significance of human resources
management is contested. Human resources management
emphasizes the calculative quantitative and strategic
management aspects of managing the work force in a rational
way. Human resources management integrates human
resources into strategic management, it seeks behavioural
commitment to organizational goals, with a focus on the
individual and the emphasis is on a full and positive
utilization of human resources. Therefore, human resources
42
management can be viewed as an approach to managing the
work force (Bratton 1999:21).
According to (Ugbaja, 2002:5) human resources
management involves all management decisions and practices
that directly affect or influence the people who work in the
organization. Such decisions include deciding to hire and fire,
to train and develop as well as to compensate, motivate and
attract more employees. He further states that human
resources management entails management relying less on
hierarchy instruction and command but becoming more
participative and open. Its objectives is to promote-co-
operative relations between management and employees.
Thus, human resources management requires a package of
measures including to employee involvement, relating pay to
performance, care with selection, training and fair treatment of
employee.
According to (Robert, 1994:360), human resources
management is that part of the process of management that is
concerned with the maintenance of human relationships and
ensuring the physical well being or employees so that they give
43
the maximum contribution to efficient working. It is obvious
closely related to the management process as a whole and
each functional manager and supervisor must apply the
principles effectively. It is essential that every manager and
supervisor be aware of the principles of human resources
management and a close link with the human resources
department should be maintained. Human resources manager
have to advise the managing director on the formulation of
policy and see that procedures to carry it out are effected. The
problem of overall organization and manpower planning, then
the operations necessary to implement the plan, that is,
recruitment and selection, training and development, wage
and salary administration all these are to be considered. Other
aspects of human resources management include industrial
relations and the law of employment, welfare and safety, and
other employee services.
Human resources management is a modern term for
what has traditionally been referred to as personnel
management though much wider in scope. The human
44
resources model uses certain policies for the practice of
management. They are:
� The manager’s basic task is to make use of the untapped
human resources.
� He must create an environment in which all members
may contribute to the limits of their ability.
� He must encourage full participation of important
matters, continually broadening subordinate self
direction and control. The human resources manager is
an extension of the traditional type manager. Though the
modern human resources management has a lot of
improvement over the olden human relations (Ogbo and
Adibe, 2006:156).
A move to combine human resources management and
personnel management into one has been made. This follows
the views by some authors that human resources management
is somewhat different from the traditional personnel
management on the grounds that personnel management
appears to be more clerically oriented and much narrower
45
than human resources management. Personnel management
is work force centered. It under undertakes to recruit, select,
train and place employees on job, arranges for them to be
paid, explains to employees the expectations of management
and justifies the actions of management on issues. Where
such management actions are likely to produce unwelcome
employee response, it seeks to modify them and make then
acceptable.
The analysis of the distinction between human resources
management and personnel management is provided by (Eze,
2002:37) who states that there is very little differences in fact
between the two. The implication of the foregoing is that
human resources management in Nigeria calls for skills in the
management of chance. The human resources manager is
required to be a specialist with adequate training, knowledge
and experience so as to be able to provide top management,
functional and line managers in the work organization with
good practice guide to human resources in the short run as
well as in the long run and to maintain a climate in which
changes in the advantage of the organization, can be achieved.
46
The personnel administrator of yester-year operating basically
a reactive and negative role of dealing adhoc with personnel
problems and keeping records has given way to the present
day human resources manager concerned with the whole field
of personnel and industrial relations.
Also according to (Legge, 1999:112) who states that there
is very little difference between the two, but there are some
differences that are important. First, the human resources
management concentrates more on what is done to managers
rather than on what is done by managers to other employees.
Secondly, that there is a more proactive role for line managers.
Thirty, there is top management responsibility for managing
culture. But as (Nwatu, 2000:72) observes, human resources
management assumes a different position and tackles
organizational problems from another direction. It is
concerned mainly with management needs for human
resources that will be provided and deployed, that places
emphasis on demand rather than supply. It takes on such
activities as planning, monitoring and control rather than
47
mediation. Human resources management is resources
centered.
Finally, (O’Donnell, 1991:31) defines human resources
management as the process of accomplishing organizational
objectives by acquiring, retaining, terminating, developing and
properly using the human resources in an organization. The
acquisition involves recruiting, screening, selecting and
placing personnel on the jobs.
2.8 HOSPITALITY INDUSTRY
Hospitality Industry is an industry which caters for
accommodation, feeding and welfare needs of
travelers/strangers (tourists) during their visits, when they are
away from their homes. Hospitality Industry is concerned with
the essentials of food and housing, offering entertainment,
providing myriad of services and meeting other needs and
profit making. Hospitality then includes hotels and
restaurants that offer shelter/food or both to people away from
their homes (Powers, 1992:407).
48
The word “hospitality” is an English Version of the Latin
noun hospitium/hospitalitas which stems from “hospes”
meaning both host and guest. Hospitality refers to both host
and guest tied up in a mutual relationship and is concerned
with the welcoming of strangers (guests). Hospitality could also
be defined as courteous and generous reception of guests and
strangers; from this definition one can infer than the business
of hospitality is serve. Service is all actions and reactions that
customers perceive they have purchased. In hospitality,
service is performed for the guest by the server. In either case
it is intangible and the guest and server are both part of that
transaction (Okoli, 2007:20).
Between 2004 and 2014, the hospitality industry is
expected to add 17 percent in wages and salary jobs in food
services and drinking places are expected to increase by 16
percent between 2004 to 2014, compared to 14 percent growth
projected for wage and salary employment in all industries
combined. Food services and drinking places provided many
young people with their first jobs in 2004 to more than 21
percent of workers in these establishment were aged 16 to 19,
49
about five times the proportion for all industries. The
accommodation and food services sector makes up
approximately 80 percent of all employment nationally. Two
out of five workers in the industry are part time, more than
twice the proportion for all industries.
With the hospitality industry’s growth rate increasing,
the importance of finding good employees, especially youth
workers is high priority. Historically, the hospitality industry
has drawn heavily from the youth labour pool to meet their
workforce needs, but in recent years the industry has been left
with an insufficient pipeline of new workers to satisfy demand.
Faced with a shrinking pipeline of workers, the hospitality
industry is increasing its recruitment efforts towards youth
and developing targeted strategies for previously untapped
labour pool. High turnover is a key challenge in the hospitality
industry. The restaurant, hotel and lodging sector have
difficult retaining skilled workers because of the negative
image that the industry faces.
50
Employers have difficulty finding workers who possess
basic “soft skills, which are often a prerequisite for success in
a customer service oriented field. English proficiency is a key
challenge because a large percentage of the hospitality
workforce does not speak English as their primary language.
Employers seek language training programs that allow
workers to effectively perform their job, which includes
providing quality customer’s service and understanding safety
requirements. Many employers provide internal training
programs for entry level workers, which makes it difficult to
monitor the content of training and the skills acquired.
Sources: U.S. Bureau of labour statistics, 2006:07 career
guide to Industries.
2.5 DETERMINING HUMAN RESOURCE NEED OF
ORGANIZATION
Determinants of effectives human resource management
of organization can be classify into:
♦ Determinants of Horizontal Fit: Human Resource factors.
♦ Determinants of both types of fit: Persons factors
51
According to Wright and McMahan (1992:298), Fit means
The pattern of planned human resources developments and
activities intended to enable the firm to achieve its goals”.
Scholars suggest that there are two kind of fit: horizontal fit
and vertical fit.
Horizontal fit refers to the congruence among the various
HRM practices (Baird and Meshocilam 1988), and vertical fit
refers to the alignment of HRM practice with the strategic
management process of the firm (Schuler and Jackson 1987).
In general, vertical fit is viewed as a critical step towards
attaining the organizational goals through initiating some
human resource activities that are aligned with firm
objectives, while horizontal fit is essential when making good
use of these resources.
Determinants of horizontal Fit: HR function factors.
There are three HR functions related factors that influence
horizontal fit. These are:
(1) HR policy
(2) Option of HR practices
(3) The investment or budget of HRM.
52
In general, horizontal fit of HRM refers to the congruence
of a bundle of HR practices within the system (Baird and
Meohoulam 1988). Specifically, horizontal fit is concerned
about the composition and arrangement of the HRM system,
and the organizational policies towards HRM matters for
achieving a high level of fit among independent HR practices.
Factually, HR policy directed clearly to or emphasizing the
compatibility among a variety of HR practices facilitates a time
turning process within the system. If certain functions are
considered less important than others, according to the HR
policy, less resources/budget will probably be given to these
functions, making them poorly operated or less effective,
relative to other institutional functions. For example, if a firm
install a HR policy that places more attention on some aspect
of HR practice, such as training or compensation, while
discriminating against some others, such as a high quality
selection process the overall fit among HR practices will be
poorly excised. This action consequently, will bring higher
costs and negatives performance. Therefore, the following
proposition is suggested.
53
Proposition la: Horizontal fit will be enhanced if the HR
policy of a firm places more emphases on the balance of a
variety of HR practices. Another aspect that will influence HR
horizontal fit is the option of HR practices available for
implementation by the HR department and the firm. Regarding
the HR function as a whole, if there are more option in the
practical activities in managing human resources, there will be
more freedom to choose the most optimal ones. This is
especially important in today’s highly competitive and
uncertain business world. Bhattahourya and Wright (2005)
suggested that the real option view could be especially useful
to account for this issue. They argued that although a firm’s
human resources, as an asset, can provide value and
competitive advantages, the uncertainties and risks associated
with HR assets, cannot be ignored. However, firms can
manage these uncertainties through HR options which are
capabilities generated by certain HR practices and their
combinations. In sum, the scope of choices for HR activities
can be enlarged if there are a series of options of them. This
54
will increase the probability of realization of horizontal fit.
Thus, the following relationship is proposed.
Proposition Ib: Horizontal fit will be enhanced if more
options on HR activities are available for a firm. The
investment of the firm in its human resources management is
a key factor influencing horizontal fit. According to resources
dependence theory (Pfetter and Salancik 1978), resources is
critical for organizational existence and development.
Internally, the development of various HRM functions depends
on resource provision from the organization (ISU, 1990). The
amount of investment or budget devoted to HRM represent the
resources available for the HR department. This is critical if
the HR department is to design or implement high quality HR
practices. For example, some effective HR practices require the
involvement of outside experts or licensing expertise from
other organizations. The establishment of an ethical HR
system by experimentation or reform requires investment as
well under these circumstances, resources or system.
Proposition 1C: Horizontal fit will be enhanced if more
investment (larger budget) is provided for HRM activities.
55
DETERMINANTS OF BOTH TYPES OF FIT: PERSONAL
FACTORS
Ability and skills of organizational members are
important for successful implementation of organizational
goals and strategies (Lado and Wilson, 1994) as a major
function, the HR system and practices are crucial in
facilitating the achievement of business strategy through the
management of people. Therefore, this is necessary to identify
the impact of personnel factors on HRM based on prominent
characteristics of the HR function. First, based on the
competency perspective, managerial competence are important
organizational dimensions, which add value to an organization
through its determination on the acquisition and arrangement
of business resources process of resources transformation to
valuable products or services as well as the value delivery
process to organizational stake holders (Lado, Boyd and
Wright 1992). The capability of HR managers is critical in
designing an international consistent as well as a compatible
strategic HR system. Secondly, HR managers have been found
to play significant roles in the business strategic making
56
process (Dutton and Ashford 1993), But with a common view
of the HR function as an advisory or support department, and
hence as a cost centre. It is vital for top level managers to
express recognition and support of the HR function, if the HR
function is to add value to the organization. Third, as the
target of HRM, employees should be allowed to influence the
performance of the HR function through the interaction of
their knowledge and skills with HRM practices and the
strategies implemented in the firm. In sum, the three aspects,
the HR managers capability, the top manager’s ability and
support and the employees’ knowledge and skills will affect
both the horizontal fit of the system and the vertical fit of HRM
practices and firm strategy.
HR Manager Capability: The capability of a HR manager
matters to the effectiveness of the design and implementation
of a HRM system. In general, a HR managers capabilities
include the utilization of business knowledge to facilitate HR
issues, the ability to initiate changes or help employees to plan
for changes, and the capability to coordinate HR redirection
57
corresponding to the strategic changes of the firm (Wei and
Lau 2005). The more capable the HR manager, the more likely
this manager will be able to decision any incongruence or
problems of the HR system, and thus be able to initiate
adjustments to rectify the incompatibility of the system. The
scope of the capability of the HR manager is important. A wide
scope of abilities and skills of a HR manager will help to
accommodate a much broader variety of HR practices that are
necessary for achieving the horizontal fit of contemporary
complex institutions.
The capability of a HR manager influences the
establishment of the vertical fit, due to the nature of vertical fit
as the arrangement of HR packages based on the firm’s
strategy. The design of a sophisticated HR system can be well
accomplished only if the firm strategy is comprehensively
understood by the manager (Huselid, et al, 1997).
Therefore, the capability of a manager, especially in
terms of ability in understanding and analyzing the business
strategy, will influence the achievement of vertical fit. In sum,
the capability of the HR manager is positively associated with
58
the realization of both types of fit. The following proposition is
then suggested.
Proposition 2a: Both horizontal fit and vertical fit will be
enhanced if the capability of HR manager is high so as to
understand and design an internally consistent HR system
congruent with the firm’s strategy.
Ability and support of Senior Managers: Ability and
support from senior managers is also critical for a firm to
acquire both horizontal fit and vertical fit. According to the
competency based perspective, organizational competences
can be employed as potential sources of competitive
advantage. As an important type of organizational
competences, managerial competences refer to the ability of
strategic leaders to create and enact the strategic vision of an
organization (Lado and Wilson 1994). The ability of top
managers in the business strategic process is key to the
competitive advantage of an organization in the marketplace.
Top-level manager have an important role in the
implementation of business strategy, and consequently, they
impose their knowledge and insights from both strategic and
59
business perspectives. The relationship between their
enactment of strategy and functional performance reflects the
connection between strategy and the HR system, which is
vertical fit.
Additionally, the support of top managers for the HR
functions to adopt a series of internally compatible HR
practice has impact on the fit of the HR system itself and on
the HR system with the firm’s strategy. Nevertheless, there are
numerous debates on the value or significance of the HR
department in organizations, due to the ‘cost’ nature and the
difficulty in identifying the immediate contribution of the HR
function under some circumstances. It becomes less likely
that horizontal fit and vertical fit will be obtained if there is a
lack of conceptual consent and/or insignificant resources
prior research evidence (e.g Tsui 1990) also indicates that top
executives are one of most important constituencies on HRM
and the priorities of top management have significant
influences on HRM policies and practices (Kane and Palmer,
1995). The logical conclusion is that the ability and support
60
given by senior managers impacts both horizontal fit and
vertical fit. Hence, the following proposition is suggested:
Proposition 2b: Both horizontal fit and vertical fit will be
enhanced if top managers are capable and supportive of a HR
system that is internally consistent and congruent with a
firm’s strategy.
Employee Knowledge and Skills: - Employee knowledge and
skills also influence the HR system fit. Since the effects of the
design and implementation of a firm’s HR activities are
embodied through all employees, their knowledge and skills
directly affect the quality and performance of the HR system
(Wright and Snell 1998). Arguably, more knowledgeable and
skillful employees will have competences to understand and
enact a variety of HR practices, such as those designed for a
firm’s specific strategy. Conversely, if the knowledge and skills
of employees are limited, it is likely their behaviour and
performance will be adversely affected, and their acceptance
and utilization of HR practices will be impeded. Therefore, it
becomes difficult to expect the employees to accomplish the
services of HRM activities internally consistent, or congruent
61
with the corporate strategy. A lower level of desirable
knowledge and skills exercised by employees will accordingly
hinder efforts to change their behaviour in an effective way to
accomplish their job and the HR practice, Thus, the following
proposition is provided.
Proposition 2c: Both horizontal fit and vertical fit will be
enhanced if employees poses a high level of knowledge and
skill.
DETERMINANTS OF VERTICAL FIT: FIRM LEVEL
FACTORS
Personnel factors influences both horizontal and vertical
fit. It is suggested that other factors, however, especially some
firm level factors, are pertinent for firm seeking vertical fit.
Primarily the nature of the strategies a firm chooses and value
and culture system of a firm are proposed to be two major
determinants that influence the extent of vertical fit that a firm
can ultimately realize. These two factors are sequentially
illustrated as follows.
62
� Nature of Strategy
The nature of strategy impacts vertical fit. This
relationship is because different strategies have unique
implications on diverse HR practices and will influence the
achievement of vertical fit (Schulor and Jackon, 1987). HR
practices are designed and arranged to reinforce functional
implications of the various generic strategies defined by Porter
(1985). For example, it will be more effective for firms adopting
a cost leadership strategy to formulate confirm, objective
criteria on performance evaluation than firms using a
differentiation strategy. The clear goal of cost leadership
strategy (minimizing production costs) add to the explanation;
composed with the complexity and uncertainty of objectives of
differentiation strategy. There is empirical evidence to support
these perspectives.
A recent study undertaken by Martell, Gupta and Carroll
(1996) demonstrated the effects of different HR practices and
business strategy on firms performance specifically,, these
researchers found out that training has higher positive effects
for firms adopting a cost leadership strategy then with
63
differentiation to a higher extent of creativity and flexibility
needed, which is not likely to be learned through pre-defined
training. Therefore, it will be easier for an organization to
achieve the strategy matching HR arrangement if the goals
defined by a certain strategy are less uncertain and clearer.
The following proposition is then suggested:
Proposition 3a: Vertical fit is influenced by the nature of
strategy a firm adopts, specifically, the less uncertain and
clear of the strategic goals; the vertical fit will be better
achieved.
� Value and Culture
Value and culture of a firm impact the vertical fit,
organizational culture and values shape the HRM practices
(Bowen and Ostroff 2004). The influence of value and culture
on vertical fit is mainly reflected in how quick or good the
strategy can be merged into designing of HR practices is
affected by corporate values and culture, partly because the
HR system takes on an adversary or consultancy role in the
management structure of a firm. If the contribution of the HR
function is deemed as minor or unimportant, it is difficult to
64
induce the efforts of the HR managers to design a series of HR
practices according to corporate strategy. Even if the HR
department is self motivated to provide a set of strategy
compatible HR arrangement, the adoption and implementation
of these HR activities may become problematic due to lack of
enough support from the top level managers who are
representatives of the value and the unique culture of a firm
(Wei and Lau 2005).
Furthermore, the importance of value and culture of a
firm for vertical fit can be reflected in the speed of achieving
vertical fit. Indeed, the HR system of an organization is
relatively stable and difficult to change quickly due to inertia
(Wright and McMahan 1992). Consequently, when a new
strategy is formulated, the adjustment or redesign of the
former HR system cannot emerge automatically. However, the
values and the culture system of an organization that
emphases a quick following of those functional departments
with renewed strategy will benefit the vertical fit process, with
an immediate adjustment toward designing and adopting an
optimal HR practice arrangement. Similarly, an organizational
65
atmosphere advocating a higher extent of fit between strategy
and HR practices will be advantageous to the realization of
vertical fit for an organization. Hence, the following proposition
is suggested.
Proposition 3b: vertical fit is influenced by the value and
culture system of an organization. Specifically vertical fit will
be better achieved with values and culture system promoting
the design of a strategy compatible HR practices and a timely
adjustment of HR practices following the strategic change.
Developing an effective HR system that is compatible with
organizational strategy is critical for the functioning and
success of a firm in the competitive business arena. Indeed,
the increasing complexity of contemporary corporate life has
elevated the importance of shedding traditional beliefs that
were the concerns of personnel managers, and to shape news
mindset, proactive attitudes and professional identifies
orientations that have placed greater emphasis on the
utilization of human resource. In this process, achieving both
types of fit is necessary for firms striving for good performance.
This provides a conceptual model on the conditions that of
66
firm might employ to establish both fits, with propositions
related to three independent factors within the organization.
Specifically, the HR function related factors are relevant to the
horizontal fit, while the firm level factors to vertical fit.
Traditionally, the HR department was viewed as an entity
that served the sole of stating, compensating and training of
personnel. With the increasing important of human resources
in modern business the management of people is highlighted
to be strategic. This means, a systematic and long-term view
needs to be taken in the management of human capital so as
to enhance the organizational competitiveness. Indeed, the HR
plans and system need to be developed on the long-term plan
of the firm and when of a high quality the HR system will
feature the internal consistency of various HR practices.
2.6 HUMAN RESOURCES FUNCTIONS
According to (Robert, 1994:360) the functions of human
resource management evolve in line with changes in the
cultural and social environment. The human resources
function is now highly specialized and perhaps can be said to
67
be at the centre of conflict between labour and capital. They in
effect overeat in the boundary between the workforce and the
organization. Internally (within the organization) a human
resources manager is concerned with integrating the
workforce, motivating, training and extending the skills of the
worker. Externally, he is concerned with labour shortages,
union policies on strikes, influencing educational institutions
and the legal frame work.
(Lloyd, 1991:6) describes human resources function to
those tasks and duties performed in both large and small
organizations to provide for and co-ordinate human resources.
Human resources functions are concerned with a variety of
activities that significantly influence all areas of an
organization and include the following:
� Ensuring that the organization fulfills all of its equal
employment opportunity and other government
obligations.
� Conducting job analysis to establish the specification
requirements of individual jobs within an organization.
68
� Forecasting the personnel requirements necessary for the
organization to achieve its objectives.
� Developing and implementing a plan to meet these
requirements.
� Recruiting the personnel required by the organization to
achieve its objectives
� Selecting and hiring personnel to fill specific jobs within
an organization.
� Orienting and training employees.
� Designing and implementing management and
organizational development programs.
� Designing systems for appraising the performance of
individual employees.
� Assisting employees in developing career plans.
� Designing and implementing compensation systems for
all employees.
� Serving as an intermediary between an organization and
its union(s).
� Designing discipline and grievance handling systems.
69
� Designing and implementing programs to ensure
employee health and safety.
� Providing assistance to employees with personal
problems that influence their work performance.
� Designing and implementing employee communication
systems.
Also according to (Lawrence, 2000) human resources
management’s objective, on the other hand, is to maximize the
return on investment from the organization’s human capital
and minimize financial risk. It is the responsibility of human
resource managers in a corporate context to conduct these
activities in effective, legal, fair, and consistent manner.
Human resources management serves these key functions:
� Recruitment and selection.
� Training and development (people and organization).
� Performance evaluation and management.
� Promotions
� Redundancy
� Industrial and employee relations.
70
� Record keeping of all personal data.
� Compensation, pensions, bonuses etc in Liaison with
payroll.
� Confidential advice to internal “customers” in relation to
problems at work.
� Career development.
2.7 HUMAN RESOURCES UTILIZATION
Human resources in organizations are employed for most
efficient role performance. Policies of recruiting, selecting,
training and allocation are designed to get the best
performance out of people. (Byars, 1999:52) however, remarks
that such policies do not automatically ensure that the
individual needs which these people bring to the organization
they expect to fulfill through organizational membership will
be met.
Management has an obligation to adopt policies and
practices which ensure organization’s effectiveness and as well
provide for the fulfillment of at least, minimum needs for
security, maintenance of self esteem and opportunity to grow
71
and develop, which are the needs which an individual brings
to an organization and experts to be fulfilled. The allocation
and effective utilization of human resources may also be
pursued through two strategies which are fundamentally
different and are based on different arrangements. One
strategy puts its emphasis on selecting the right man and
placing to the right job. This strategy goes through the
functions of recruiting, selecting, training and placing people
to job. The selection is done from the total pool of human
resources and then trained. In this case people who already
meet organizational requirements or who can be trained to
meet them are found. The other strategy puts the emphasis on
redesigning the job and its physical environment to fit the
limitations and capacities of human beings. The ideal situation
requires the job to be designed in such a way that any person
could perform it (Reckit, 2004:42).
Human resources are also utilized through authority
influence and the psychological contract. According to (Legge,
1999:128) a psychological contract implies that the individual
has a variety of expectations of him. The expectations cover
72
the amount of work he performs and the pay he receives. They
also involve the right, privileges and the obligation between
workers and organization. The organization implements the
contract through the concept of authority. When an individual
decides to join an organization, he commits himself to
accepting the authority system of that organization. Because
he consents, he grants to the person in authority the right to
dictate to him. (Legge, 1999:128) expresses that the worker
implements the psychological contract through his perception
that he can influence the organization. By agreeing to the
basis of consent, and by accepting the system by which people
have come to be in positions of authority he acquires his sense
of influencing the situation. Thus, the organization enforcing
its views of the contract through authority while the employee
enforces it through upward influence.
2.8 HUMAN RESOURCES PLANNING
According to (Cole, 2002:141) planning the resources of
the organization is a key responsibility of every senior
manager. Arguably, the most important single resources is
73
people. It is important therefore to ensure that sufficient
number of appropriate caliber of people is available to the
organization in pursuit of its objectives. Every organization
has to make some attempts to acquire, train, redeploy and
dismiss employees in the course of its activities. Therefore,
human resource planning is concerned with identifying the
organization’s demand for human resource and devising
means to ensure that a sufficient supply of labour is available
to meet demand or it could mean a strategy for the
acquisition, utilization, improvement and retention of an
enterprise’s human resources. There are four categories of
staff that are important in human resource planning. These
are existing staff, new recruits, potential staff and leavers.
Each of these categories requires different decisions to be
made by the managers concerned and some of these activities
are recruitment, selection, placement, training, performance
assessment or appraisal, promotion, termination of
employment and so on.
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2.8.1 Recruitment
According to (Eze, 2002:70) Recruitment is the process of
finding and attempting to attract job candidates who are
suitably qualified and therefore capable of filling vacancies inn
job positions effectively. It is only after individuals have
applied that the best qualified as adjusted from the face value
of the application can be selected for other relevant processes.
Recruitment information can be sourced through
advertising, employment agencies, labour unions, schools,
institution, etc. There are two sources from which an
organization can effect recruitment. According to (Nwatu,
2000:101), these include internal and external sources.
Internal recruitment entails inert-departmental transfer while
external recruitment is from among job seekers, employment
agencies, educational institutions, etc.
2.8.2 Selection
According to (Eze, 2002:74) Selection is the process of
determining which job candidate or applicants suit the needs
of the organization best. Through recruitment process, a pool
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of potential candidates is assembled and ground is set for this
second stage. The following constitute the usual component.
� Application form.
� Shortlist of candidates.
� Selection tests.
� Interview.
� Follow up of references.
� Medical examination.
2.8.3 Job Offer
Suitably qualified and successful candidates are
ultimately offered the jobs. According to (Azih, 1995:680) in
making the offer, the following be noted:
i. The wages/salary offered should be appropriate to the job
and attractive to the candidate.
ii. It must also be consistent with earnings of present
employees and what is paid in similar organizations for
the same position.
iii. The job must be stated as well as the conditions of
employment and references.
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Accordingly, the purpose of reference is to obtain
confidence factual information about a prospective employee
and opinion about his character and suitability for the job.
2.8.4 Placement
This is the deployment of successful candidates to their
appropriate positions and it represents the final stage in the
employment process (Azih, 1995:69). It is sequel to the
candidate meeting other conditions tied to the job for example,
successful medical examination.
2.8.5 Induction
The purpose of induction is to bring the new entrant to
understand the system which is expected would be strange to
him. Secondly, it introduces the new employees to the values,
interest and goals of the organization. Thirdly it affords the
new entrants a chance to understand all the opportunities
available to him in his new employment abode. Finally, the
subsisting conditions of service of the company are given to
the employee at this stage.
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2.9 HUMAN RESOURCES TRAINING AND DEVELOPMENT
Human resources, once acquired, need careful attention
for their full potentials to be realized. The employees as well as
the organization concerned will benefit tremendously from
opportunities to enhance knowledge, skills and abilities
through education, development and training. Human
resources development is a framework for the expansion of
human capital within an organization or (in new approaches) a
municipality, region, or nation. Human resources development
is a combination of training and education, in a broad context
of adequate health and employment policies that ensures the
continual improvement and growth of the individual, the
organization and the national human resourcefulness. Adam
Smith states, “The capacities of individuals depend on their
access to education”. Human resource development is the
medium that drives between training and learning in a broadly
fostering environment (Kelly, D. 2001). Human resourced
development framework views employees, as an asset to the
enterprise whose value will be enhanced by development; it
emphasizes developing individual potential and skills (Elwood,
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Olton and Trott: 1996). The objective of human resources
development is to foster human resourcefulness through
enlightened and cohesive policies in education, training,
health and employment at all levels, from corporate to national
(Lawrence, 2000). This is why organizations should pay
adequate attention to staff development and training.
2.9.1 On-The-Job Training
According to (Eze, 2002:102) this method assigns
employees to specific jobs where while performing under the
close instruction of competent and sufficiently experienced
immediate supervisors, they gain experience and learn the
relevant skills. The following methods are used:
i. On-the-job Instruction: This approach is very effective.
It develops a strong link between the trainee and the
superior. But pressure of work, noise and bustle in the
work place, constitute problem.
ii. Coaching: This is highly effective, being job related. The
manager, on one basis teaches the trainees by example.
But coaching is subject to work pressure and may be
done on piece meal bases.
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iii. Job Rotation: This involves moving one employee from
one job to the other in order to broaden their experience.
2.9.2: Off-The-Job Training
According to (Eze, 2002:103) this method involves:
i. In-House Lectures and Talks: This approach is very
useful in giving employees factual information. But it is
not participative, but it is being more of a one way affair.
ii. Group Discussions: This is an in-plant approach, which
is useful for generating ideas and solutions, but it
requires adequate leadership.
iii. Role-Playing Exercise: An in-house approach suitable
for developing social skills. It needs to be carefully
planned and organized, as tactful feedback is not easy.
iv. Skills Development Exercise: This is also an in-house
that can be used for communication skills and manual
operations. It is a good way to practice and develop new
skills. But it calls for very careful organization.
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v. College Courses (Long): This is an external approach
which leads to qualifications and facilities matching
theory with practice.
vi. College Course (Short): This again is done externally. It
supplements in-house training and it does so,
independent of internal politics. But this may not meet
the extract needs of clients.
Whichever method is used, staff training and
development arrangements must be carefully planned.
2.10 COMPENSATION (REMUNERATIONS AND REWARDS)
The administration of wages and salaries as well as fringe
benefits and welfare services represent another major function
in human resources management. Rewards are meant to
compensate employees for jobs performed and to motivate
them. Formulation of wage policies should;
i. Satisfy both economic and psychological needs of the
employees.
ii. Attract component personnel to the organization.
iii. Motivate employees to enhance their productivity and
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iv. Retain employees in the organization.
Fringe benefits are given to works apart from their basic
salary. It can be in the form of cash or non-cash. Adoring to
(Ugbaja, 2002:52) these include;
i. Payment for time not worked for example leave grant.
ii. Hazard protection for example illness, injury, permanent
disability, death, etc.
iii. Medical, housing, rents, transports allowances, etc.
iv. Legally required payments such as insurance, old age,
Medicare, etc
Fringe benefits an instrument used in settling disputes
between management and employees.
2.11 DISCIPLINE AND TERMINATION
Discipline and termination are important features in
human resources management. According to (Ogechukwu,
2003:12) the essence of discipline is to ensure that employees
do not break organizational rules and regulations by adhering
strictly to the prescribed codes of conduct. Indiscipline is not
condoned by management but is discouraged through
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disciplinary measures which, among other thing, include
query, warning, suspension, demotion and termination.
Termination may not be a disciplinary measure but may
be due to non-performance or old age. At certain points,
employees may wish to leave the organization on voluntary
basis. This is known as employee turnover. (Ikeagwu,
1998:102) says those turn over, voluntary or involuntary, is
another issue of importance to human resources manager.
Voluntary turnover, the department of current employees for
other work opportunities, may be due to personal
characteristics of the employees, economic condition, poor
working condition, job dissatisfaction, among others.
Voluntary turnover adversely affects the organization as
employees with best work experience and skills are lost to
competing employees.
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2.12 DETERMINANTS OF EFFECTIVE HUMAN RESOURCES
MANAGEMENT IN THE HOSPITALITY INDUSTRY
Human resource management in the hospitality Industry
is all about an attempt to ensure that the right people are in
the right jobs at the right time. In a situation where the right
people are fixed in the right jobs at the proper time, there will
be proper functioning of the Industry in such a way that an
employee in a particular section will know his or her duty and
carryout such activities for the good and wellbeing of the
industry. This shows that the performance of each worker in
the industry is geared towards the improvement of the sector.
In this regard, each individual that is employed as a worker in
the hospitality Industry is expected to put all his or her effort
to perform the duties which are assigned to him to do in order
to contribute to the total wellbeing of the organization in
particular and the tourism Industry in general.
The economic concept of tourism include personal travel
(for leisure and other purposes) as well as business trips,
domestic and international traveling. The industry’s direct or
“face-to-face” service to tourists represent between three and
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four percent of the Gross Domestic Product in most of the
world economic and employs about three to ten percent of the
world’s total labour force. Currently, the industry is growing
worldwide by about three percent annually. Therefore, as the
hospital is growing, the effectiveness of the human resources
management expertise is highly needed because of the delicate
services needed by the tourists, the type of employees
available in the industry and also the seasonality of the
businesses that leads to a large pool of temporal labour. To
ensure the employment of reliable and efficient employees that
are concerned with and committed to the achievement of
organizational goals, the human resource manager recruits,
selects and trains them.
The prospective employer will after going through the
rules of the industry, will be in a better position to make wise
and professionally guided decisions on: what jobs he requires
to be done; the job specification for any duty he has identified;
the description of the person or persons who can most
effectively do the job, how to look for prospective applicants;
how to construct an effective advertisement; how best to
85
interview prospective employees; how best to select; how best
to motivate, sustain and impact the successful candidates in
other to harvest their resources to the best advantage of the
Industry. Recruitment, selection, training and placements
exercise are at the heart of any organization and they have to
be well done to pave the way for the effectiveness of the
organization (Onah, 2003:84).
Moreover, for a hospitality Industry to function well,
there is the need for the Industry to satisfy the employee’s
needs in terms of rewarding, proper appraisal, promotion,
training and compensating their efforts. Also, there is need for
the both employers and employees to join hands together to
improve the welfare of the Industry. They are expected to work
in harmony in carrying out their activities and also depend on
each other for the achievement of the particular goals of the
Industry.
According to (Wheelhouse, D. and Longstreet, C. 2004)
Management in the hospitality industry should match the
industry’s policy, procedures and practices with the values by
which they operate. An industry’s values are put into practice
86
in several ways: the choice of measurements that will be used
to gauge performance and success, the treatment of
employees, the allocation of wages and benefits, and the kinds
of performance that will be recognized, rewarded and talked
about.
Regardless of what an industry says its philosophy is,
what it measures is one of the biggest determinants of what its
values really are. If food costs, labour costs, and inventory
turnover are all it measures, talks about and uses to evaluate
performance, people will adapt to that and the industry ensure
will be control oriented. The frequency of measurement also
has a profound impact on the organizational culture in
communicating the true values of the industry. An
organization must decide whether its systems are there for the
convenience of the guest or the accounting office. Are
bartenders, front desk agents and cashiers part of guest
services or are they really data entry clerks? Is the first priority
of the economy maintaining the account records or helping
guest? If the employees believe that first priority is keeping
proper inventory and accounting records, in reality “service” is
87
not their philosophy. If they want service, they must place
equal or greater emphasis on measuring services. This may
mean evaluating guest satisfaction by measuring repeat
business, responding to guest reactions, comments and
suggestions and even conducting guest surveys and gaining
other guest feedback.
How management treats the employees will also
communicate how guest should be treated. For guest
satisfaction to be achieved, employee satisfaction should be
measured, since their behaviour is part of the product.
Employees must be happy and content themselves before they
can make gusts happy. When people feel good about them and
are comfortable with their skills, they are more willing and
able to perform in public. The happier they are, the likelier
they are to go out of their way to help a guest or co-worker. If
your human resources strategy is working, you won’t need a
customer service training programme to teach workers to
smile. On the other hand, employees in uncomfortable
situations will generally tend to be rude to guests and one
another. Employee’s turnover, absenteeism, attitude surveys
88
and accident rates are all indicators for measuring employee’s
satisfaction. When managers know that employers condier
achieving guest and employee satisfaction to be as important
as achieving financial results, they are likelier to give proper
emphasis to service and the importance of their employees in
achieving successful service. When that happens, employees
know that management means it when it says, “Our
employees are our greatest assets”.
Compensation policies will also communicate the values
of a company. If a company wants to emphasis service,
employees who are on the service line should be adequately
compensated. If front desk agents, cashiers and telephone
operators earn minimum wage, while clerks in accounting, the
storeroom, or the mail room are paid substantially more, this
communicates that services is not the company’s top priority.
Value can be reinforced through recognition programs and the
rewards provided to employees. When employees perform
consistently according to your values, they should be
recognized and rewarded. These employees should be turned
into heroes who become role models for others to follow.
89
Others who see them being rewarded will know what’s
important to the company and what it takes to get ahead and
they will want to follow suit. It is only when everyone
understands what the goals and values are and can see that
the company really does operate by them that they can begin
to identify with and commit to them.
The human resources policies and procedures are
practical application of the industry’s mission and values. In
essence they are the translation of a philosophy statement into
a working operation. No area of management communicates
and controls the values more forcefully than the development
into a working operation. No area of management
communicates and controls your values more forcefully than
the development and day to day administration of the
industry’s policies and procedures. These are the rules of the
organization, what they require and permit, who to recruit,
select, train, compensate, discipline and terminate his/her
employment. Also, one of the most effective ways of reinforcing
values is to talk about the people who best represent them.
Every organization culture is characterized by traditions and
90
legends of which all employees quickly become aware. The
process, sometimes known as story telling, has a powerful
influence on the behaviour and attitudes of workers, because
it summarizes the believes and values of the company.
It is to this end that the human resources strategy of a
hospitality industry should direct and dictate all its personnel
programs. You cannot borrow ready made programs from
another employer and expect them all to support your culture.
You own human resources strategy should control every
program and event being implemented. How the strategies are
used by the management in recruitment, interviewing,
evaluating, hiring, training rewarding, promoting, firing will
communicate and reinforce the organizational culture.
2.13 HUMAN RESOURCE MANAGEMENT OBJECTIVES
The objectives are the ends (HRM) intends to achieve, its
reasons for existence, the function of pursuing these ends of
objectives reflects the contribution of HRM to organizational
effectiveness. These objectives of HRM functions according to
Invancevich and Glueck (1983:9) are as follows:
91
♦ To help the organization reach its goals
♦ To employ the skills and abilities of the workforce
efficiently.
♦ To provide the organization with well trained and well
motivated employees.
♦ To increase to the fullest the employee’s job satisfaction
and self actualization
♦ To develop and maintain a quality of work life which
makes employment in the organization a desirable person
and social situation.
♦ To communicate HRM policies to all employees.
♦ To help maintain ethical policies and behaviour
♦ To manage change to the mutual advantage of individuals,
groups, the enterprises, and the public.
The above mention objectives of the HRM function are
briefly discussed as follows:
1. To help the organization reach its goals.
Bratton and Gold (1999:11) states this purpose in the
following manner – individuals, therefore, become Human
Resource by virtue of the roles they assume in the work
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organization (which are) designed to maximize particular
employee, contribution to achieving organizational objectives.
In the same vein, Steers and Nordon (2006) states that “the
responsibility of human resource or managers … is to make it
happen, to maximize consumer benefit and the company’s
bottom line”.
2. To employ the skills and abilities of the workforce
efficiently
Convey (1990:83) states this purpose as follows
“proactive people (or human resource management) focus their
efforts in the circle of influence. They work on the things they
can do something about. The nature of their energy is positive,
enlarging and magnifying causing their code of influence to
increase”. Drucker (1979:24) states this purpose some what
differently. He said the purpose is to make effective executives
(or human resource management) build on strength, their own
strengths, the strengths of their superior, colleagues, and
subordinates, and on the strengths in the situation, that is, on
what they can do.
93
3. To provide the organization with well-trained and
well motivated employees
Training and motivation are measure of effectiveness.
They provide organization with highly skilled and loyal
employees (Bratton and Gold, 1999:5). Covey (1990:52)
phrases it thus – “Because they are based on principles, they
bring the maximum long-term beneficial results possible. They
become the basic of a person’s character creating an
empowering centre of correct maps from which an individual
can effectively solve problems, maximize opportunities, and
continually learn and integrate other principles in an upward
spiral growth”. This is effective manpower planning.
4. To increase to the fullest the employee’s job
satisfaction and self-actualization
Ivancevich and Glueck 1983:7) posit that effective human
resource management is action oriented … it emphasis the
solution of employment problems to help achieve
organizational objectives and facilitate employee development
and satisfaction. Tyson and Bell (1986) put it this way-the new
HRM model, with its proactive approach towards labour
94
management envisions the human resource specialist as an
architect and an intellectual partner in the management team.
5. To develop and maintain a quality work life which
makes employment in the organization a desirable
personal and social situation
Steers and Nordon (2006:4) put it this way: “society asks
and often demands that (organizations) pay fair wages, provide
safe and equitable working conditions for their employees,
follow all pertinent laws and regulations in the country,
protect the environment, act in socially ethical norms and
professional standard”. This is necessary beucase of the lack
of a high quality of life in all workplaces, Jack Goldner, of the
AFL-CIO Unions for professional employees.
6. To communicate HRM policies to all employees
Nigerian Institute of Management (NIM)’s communication
skills for managers for the NIM-NYSC partnering for
professional excellence (2009) states – “Indeed, all the
functions of management cannot be performed without
communication the role that information technology (IT) …
plays in decision-making, transmission and implementation in
95
enormous. Koontz et al (1980:274-275) states that policies
were identified as guides to thinking in decision-making …
“The most logical source of policy is top management, which
originates it for the express purpose of guiding subordinates in
their operations. Originally policy flows basically from the
objectives of the enterprise, as these are defined by the top
executive authority”.
7. To help maintain ethical policies and behaviour
Management consultant and writer Kent Hodgson has
helpfully taken managers a step closer to ethical decision by
identifying seven general moral principles.
♦ Dignity of human life
♦ Autonomy
♦ Honesty
♦ Loyalty
♦ Fairness
♦ Humanness
♦ The common good.
96
He calls them ‘the magnificent seven to emphasize their
timeless and worldwide relevance. Both the justice and care
perspectives are clearly evident in the magnificent seven,
which are more detailed and hence practical.
Importantly, according to Hodgson, there are no absolute
ethical answers for decision makers. The goal for managers
should be to rely on moral principles so their decisions are
principled, appreciate and defensible (chapter 6 in Hodgson
1992:66-77). Managers require a supportive organizational
climate that translates general moral principles into specific
do’s and don’ts and foster, ethical decisions.
Codes of ethics can have a positive impact if they satisfy
these four criteria:
♦ They are distributed to every employee
♦ They are firmly supported by top management
♦ They refer to specific practices and ethical dilemmas
likely to be encouraged by target employees (e.g. sales
person paying kickbacks, purchasing agent receiving
payoffs etc.
97
♦ They are evenly enforced with reward for compliance and
strict penalties for non-compliance (Steel et al, 1990:233-
242). In addition to developing the above meaningful code
of ethics for improving on the job ethics, others are:
♦ Behave ethical yourself; managers are potent role models
whose habits and actual behaviours send clear signals
about the important of ethnical behaviour is a top to
bottom proposition.
♦ Screen potential employees, surprisingly employers are
generally lax when it comes to checking references,
credentials transcripts and other information on
applicants, resumes. More diligent action in this area can
screen out those given to fraud and misrepresentation.
Integrity testing is fairly valid but is no panacea (Ones
and Viswesvaza 1998:248).
8. To manage change to the mutual of individuals
groups, the enterprise and the public.
Schumpeter (1947:151) emphasizes the significance of
“change” in the essential role of the entrepreneur in creating
profits.
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2.14 BENEFITS OF HUMAN RESOURCE MANAGEMENT TO
ORGANIZATIONS
The benefits of human resources management to
organization are numerous. Good human resource
management strategies make a lot of difference in the output
given by the employees.
The key functions of human resources management
include recruiting people, training them, performing appraisal,
motivating them as well as workplace communication,
workplace safety and much more. The benefits of these
functions to organizations will be explained as follows:
i. Recruitment and Training: This is one of the most
important responsibilities of the human resource
management team. The human resource managers work
out plans and strategies of hiring the right kind of people.
They design the criteria suitable for a specific job
description. Their responsibilities also include formulating
the obligations of an employee and the scope of tasks
assigned to him. Based on these two factors, the contract
of an employee with the organization is developed. When
99
required, they also provide training to the employees
according to the requirements of the organization. An
organization cannot build a good team of working
professionals without the help of a good human resource
management team.
ii. Performance Appraisals: Human resource management
encourages every individual in the organization, to work
according to his potential and also helps him increase his
potential. The management team communicates with the
employees, all the necessary information regarding their
performances and also defines their respective roles from
time to time. This helps the employee to form an outline of
their anticipated goals in much dearer terms and thereby,
helps them execute the goals with best possible efforts.
Performance appraisals taken from time to time also help
in motivating the employees.
iii. Maintaining Work Atmosphere: - The performance of an
individual in an organization is largely driven by the work
atmosphere or work culture that prevails at the workplace.
A good environment can bring out the best in an employee.
100
A congenial atmosphere gives the employees job
satisfaction as well. A good work environment is one of the
benefits employees can get from human resources
management.
iv. Managing Disputes: - There are several issues on which
disputes may arise between the employees and the
managers in an organization. In such a scenario, it is
human resource department which acts as a consultant
and mediator to sort out the issues in an effective manner.
v. Developing Relations: - The responsibility of establishing
good public relations has with the human resource
management to a great extent. They organize business
meetings, seminars and various official gatherings on
behalf of the company in order to establish relationships
with other business sectors. Sometimes, the human
resources departments play an active role in preparing the
business and marketing plans for the organization. Any
organization without a proper setup for human resources
management is bound to suffer from serious problems
while managing its regular activities. For this reason, a lot
of stress is given these days for the setup of an effective
human resource management system.
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108
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 INTRODUCTION
Research methodology is a presentation of the detailed
account of how the study was carried out.
This chapter describes the area of study, population of
study, sources of data, determination of sample size,
instrument and method of data collection, data presentation
and analysis.
3.6 RESEARCH DESIGN
The research design embodied the blue print for
collection, measurement and analysis of the data related to the
research questions. Thus, the methodology used for collection
of data was mainly survey method, based on the Primary and
Secondary sources of data collection.
3.7 POPULATION
The population of the study involves the members of the
staff of the Industry. They were altogether 129 as at the time
of this study.
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3.8 SAMPLE SIZE DETERMINATION AND SAMPLING
TECHNIQUES
Given the population, the sample size was determined
using Yaro Yamani (1964:240) techniques as shown below;
n = N 1 + N(e)2 Where N = population
e = margin of error (0.08)
1 = Constant
Solution
n = N 1 + 129 (0.8)2
129 1 + 129 (0.0064)
129 1 + 0.83
129 1.83
= 70.49 ≈ 70. Therefore, 70 staff of the Industry were randomly selected
from the study population.
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3.9 SOURCES OF DATA
The researcher used questionnaire and personal
interview for data collection. Also library research was done in
this study. One set of questionnaire was constructed. The
sources in which data was gathered were both primary and
secondary sources.
3.5.1 Primary Source
The primary data for the study were obtained through
questionnaire, oral interview, as well as observed of activities
in and around the organization.
The interview was directed by management and staff of
Protea Hotel, Nike Lake Resort, Enugu.
3.6.2 Secondary Data
The secondary data used in this study consist of
information obtained from Protea Hotel annual reports,
journals, textbooks, magazines internet, university of Nigeria,
Enugu Campus Library.
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3.7 AREA OF STUDY
The area of study is Protea Hotel Enugu (Nike Lake
Resort) consisting of the following units:
♦ Accounts
♦ Sales
♦ Personnel
♦ House keeping
♦ Kitchen
♦ Restaurant
♦ Laundry units and so on.
3.7 RELIABILITY OF THE RESEARCH INSTRUMENTS
As an insider, the researcher obtained valid information
through oral interview. With carefully constructed
questionnaire, it was possible to obtain reliable responses
from the respondents. According to Uzoagulu (2005), reliability
of a test instrument is the consistency of test in measuring
whatever it supports to measure, when a test instrument is
dependable, and stable in measurement, it can be regarded as
a reliable instrument.
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3.8 VALIDITY OF THE INSTRUMENTS
The questionnaire and interviews were fashioned out
after the research questions were formulated. The researcher
took time to construct the questionnaire so that the
respondents answer with ease and without bias.
Thereafter, the questionnaire items were submitted to the
project superior who criticized, corrected and approved the
amended copy.
3.9 DATA COLLECTION AND PROCEDURE
The researcher personally visited the Industry.
Questionnaires were distributed in each unit to respondents.
Some completed theirs on-the-sport while those who could not
were given three days; the researcher went round and
retrieved the questionnaires. Out of the 70 copies distributed
40 were retrieved.
3.10 DATA ANALYSIS TECHNIQUE
Generally, data analysis is research surveys requires
various statistical techniques ranging from descriptive to
analytical method. The data collection in research survey was
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analyzed by means of percentage (%) and presented on tables.
The term percentage refers to the proposition of responses to a
questionnaire time, mathematically represented by the
formula;
E x 100% N 1 Where F = Frequency of a particular response
N = Total number of respondents
1 = Constant
% = Percentage
In testing the hypotheses, the sample proportion (Z) test
is applied. This entails using observed data to compute the
value of Z as shown below;
Z = P – P0 P0 (1 – P0) N
Where
P = Proportion of positive responses to variable of
interest.
PO = Probability of rejecting HO (i.e. 0.5).
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N = Total responses.
1 = Constant
The computed Z is the compared with its critical value at
P α 0.05 which is 1.96 for a two tailed test.
Decision Rules
Reject HO and HI if the computed Z is more than its
critical value (1.96), and vice versa.
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CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 PRESENTATION AND ANALYSIS OF DATA
In this chapter, the researcher presents and analyses the
data collected from the respondents.
Table 4.1:Administration of Questionnaires
Questionnaires No %
a. Distribute 70 100
b. Returned 50 71.4
c. Not returned 20 16
d. Discarded 2 1.6
e. Analyzed 48 69
This distribution indicates that 71.4% of the
questionnaires were returned. 16% were not returned. 1.6%
jaws discarded. Hence, 69% were analyzed.
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Table 4.2:Sex Distribution of Respondents
Sex No %
a. Males 22 45.8
b. Females 26 54.2
Total 48 100
The table shows that 45.8% of the respondents are males
while 54.2% are females.
Table 4.3:Status of Respondents
Status No %
a. Management staff 12 25
b. Intermediate staff 20 41.7
c. Junior staff 16 33.3
Total 48 100
This indicates that 25% belonged to management staff in
the Industry. 41.7% were intermediate staffs while 33.3% were
junior staffs in the Industry.
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Table 4.4: Responses to the Industry having Policies on
Human Resources Management
Options No %
a. Yes 48 100
b. No - -
Total 48 100
From the table above, it can be seen that the respondents
affirmed that the Industry have policies on human resources
management. The implication is that they have personnel
management department.
Table 4.5: Human Resources Policies of the Industry
Policies No %
a. Employment Procedures 6 12.5
b. Training and development 10 20.8
c. Compensation 4 8.3
d. Labour Relations 3 6.3
e. Social Welfare/Security scheme. 6 12.5
f. Discipline/termination 8 16.7
g. All of the above 11 22.9
Total 48 100
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This shows that 12%, 20.8%, 8.3% and 6.3% of the
respondents affirmed that employment procedures, training
and development, compensation, labour relations policies exist
in the Industry. 12.5%, 16.7% of the respondents also affirmed
that social welfare/security schemes, discipline/termination
policies exist in the Industry. But 22.9% of the respondents
affirmed that all the policies related to human resources exists
in the industry.
Table 4.6: Types of Staff Training and Development
Programmes.
Types No %
a. On-the-job 48 100
b. Off-the-job - -
c. All of the above - -
Total 48 100
From the table, it can be seen that the respondents
affirmed that the method of training in the industry is through
internal training which is on-the-job training which allows the
learner to practice with the actual tools in the environment of
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his/her job. This implies that staff training and development
programmes exist in the industry.
Table 4.7: Responses to Training and Development being
Effective in the Industry
Options No %
a. Yes 32 66.7
b. No 16 33.3
Total 48 100
66.7% of the respondents agreed that staff training and
development programmes are effective in the industry while
33.3% of the respondents disagreed. As a matter of fact, the
hospitality industries is highly competitive and required skilled
and experienced individuals consequently, so every time a
workers is made to do a thing the way it is wanted to be done
the worker is first of all trained.
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Table 4.8: Compensation Policies
Options No %
a. Wages and Sales 48 100
b. Fringe benefit 48 100
c. Promotion 48 100
Total 48 100
All the respondents indicated that wages and salaries,
fringe benefits and promotion constitute the
compensation/rewards for employees. It is a technique of
motivation and reward for excellent performance in the
industry.
Table 4.9: Responses to Compensation/Rewards being
Effective in the Industry
Options No %
a. Yes 38 79.2
b. No 10 20.8
Total 48 100
121
79.2% of the respondents agreed that staff training and
development prorgammes are effective in the industry while
20.8% of the respondents disagreed. This motivates workers to
perform their duties very well.
Table 4.10: Disciplinary Measures in the Industry
Options No %
a. Warning
b. Suspension
c. Demotion
d. Dismissal
e. Compulsory retirement
f. All of the above 48 100
Total 48 100
All the respondents indicated that the disciplinary
measures in the industry included warning, suspension,
demotion, dismissal, compulsory retirement. Warning is
usually given to first offenders or for minor offences. Others
are for serious offences.
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Table 4.11: Social Security Schemes in the Industry
Options No %
a. Gratuities
b. Pensions
c. Health Insurance
d. All of the above 48 100
Total 48 100
All the respondents affirmed that their social security
schemes include gratuities, pensions and health insurance
schemes. The official retirement age approved by federal
government is 65 years. The Industry has pension schemes on
retired staffs and they also pay gratuities as benefit.
Table 4.12: Responses to Employees being adequately
compensated when Discharged
Options No %
a. Yes 26 54.2
b. No 22 45.8
Total 48 100
123
54.2% of the respondents agreed that employees are
adequately compensated when their appointment is
terminated while 45.85 disagreed. Termination or dismissal of
an employee’s appointment depends on the nature of the
offence. If it is dismissal, there will be no benefit and if it is
termination, there will be benefit.
4.2 TEST OF HYPOTHESES
The validity of the hypothesis stated in chapter one shall
be tested.
Hypothesis 1
HO: Human Resources policies is not effective in the
industry.
HI: Human resources policies is effective in the industry.
Table 4.4: Hypothesis Testing
P = 48 = 100% = 1
PO = 0.5
N = 48
124
Z = P -PO Po (1-Po) N
Z = 1 – 0.5 0.5 (1-0.5) 48 5.0 0.25 48 0.5 0.072 = 6.9
Based on the decision rule, we accept HI and reject HO
because 6.9 is greater than 1.96 that is 6.9 > 1.96.
Hypothesis 2:
HO: Employees are not properly trained and development in
the industry.
HI: Employees are properly trained and developed in the
industry.
125
Table 4.7: Hypothesis Testing
P = 32 = 66.7% = 0.67
PO = 0.5
N = 48
Z = 0.67-0.5 0.5 (1-05) 48 0.17 0.25 48 0.17 0.072 = 2.4 Based on the decision rule, we accept HI and reject HO
because 2.4 is greater than 1.96 that is 2.4 > 1.96.
Hypothesis 3:
HO: Compensation, reward policies and social security system
are not effective in the industry.
HI: compensation, reward policies and social security system
are effective in the industry.
126
Table 4.9: Hypothesis Testing
P = 38 = 79.2% = 0.79
PO = 0.5
N = 48
Z = 0.79-0.5 0.5 (1-0.5) 48 0.29 0.25 48 0.29 0.072 = 4.0 Based on the decision rule, we accept HI and reject HO
because 2.4 is greater than 1.96 that is 2.4 > 1.96.
127
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 SUMMARY OF FINDINGS
Based on the data collected, analyzed and presented, the
researcher was able to make the following findings:
♦ The respondents affirmed that the industry have human
resources management policies. The policies relates to
employment procedures, training and development
progrmames, compensations, labour relations, social
welfare/security schemes and discipline/ termination.
♦ That the industry adopt internal training method like on-
the-job training which allows the learner to practice with
the actual tools in the environment of the job.
♦ That wages and salaries, fringe benefits, social
welfare/security, promotion constitute the
compensation/rewards for employees in the industry,
which serves as motivational tools.
♦ That the industry has disciplinary measures which
include warning, suspension, demotion, dismissal,
compulsory retirement.
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♦ The industry has pension schemes on their retired staff
and they also pay gratuity as benefit to their retired
staffs.
5.4 CONCLUSION
From the foregoing research findings, the researcher
reached the following conclusion:
The industry adopts human resources management
policies. Some of these policies are common to the industry
while others are peculiar to them. This tends to hamper staff
performance and thus has translated into low productivity.
Staff training and development programmes like on-the-
job training is more effective in the industry because the
learner is allowed to practice with the actual tools in the
environment. However, compensation policies are effective in
the industry being a technique of motivation and reward for
excellent performance in the industry. Employees in the
industry are adequately compensated when their appointment
is terminated depending on the nature of the offence. If an
129
employees is dismissed, there will be no benefit but if it is
termination, there will be benefit.
Finally, the industry has pension schemes on retired
staffs and they also pay gratuity as benefit.
5.5 RECOMMENDATIONS
Human resources management practices in the
hospitality industry will be more effective and efficient if the
following measures are taken;
i. Human resources planning should be very thorough.
Recruitment, selection and placement should be based
on qualification performance and competence
respectively.
ii. Training and development prorgamme should be well
designed and implemented to reflect manpower needs of
the industry. Competent trainers should always be
employed and such programmes should be a regular
practice.
130
iii. Compensations should be motivating and inspiring to
staffs. The calls for adequate salaries and frings benefits
that should be regularly reviewed upwards to keep step
with rising costs of living. Promotions and conversions
should be regular and prompt. There should be no delays
in paying workers their entitlements.
iv. Retirees should be adequately protected under effective
social security schemes. Gratuities and pensions should
be effectively administered so that retired staffs will not
suffer after being disengaged from work.
131
BIBLIOGRAPHY
A. TEXT BOOKS
Akpala, A. (1990), Management: An Introduction and the Nigerian Experience. Enugu: Precision Printers and Publishers.
Azih, B. (1995), Human Resources Management. Lagos: Intec.
Barney, J. B. (1995), Looking Inside for Competitive Academy of Management Executive.
Bratton, J. and Jeffrey G. (1999), Human Resources
management; Theory and Practice 2nd Edition. London: Macmillan Press Ltd.
Byars, V. (1999), Human Resource Development. London:
Cassel. Cole, G. A. (2002), Personnel and Human Resource
Management. 5th Edition. London: Cornwall. Eboh, E. F. (2002), Management Theory; Models for Decision
Making. Enugu: Computer Villa Publishers. Eze, F. C. (2002), Human Resources Management in Nigeria.
The Key Component. Enugu: Mekanand Publications. Glassman, D. (1998), Management Theory Process and
Practice. New York: Dell Publishing Company. Laurie, J. Mullins (2004), Management and Organizational
behaviour, 7th Edition: Prentice Hall Legge, F. (1999), Personnel Management. London: cassel Ltd. Lloyd, L. B. and Leslie, W. R. (1991), Human Resources
Management. 3rd Edition.
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Nwatu, R. (2000), Human Capital Investment. Lagos: Cassel
Ltd. O’Donnel, C. (1991), Management. New York: McGraw-Hill
Books Inc.
Ogbo, A. and Adibe, T. (2006), The Concept of Industrial Management in Nigeria. First Edition. Enugu: De-Verge Agencies Ltd.
Ogechukwu, P. (2003), Manpower Planning and Development.
Enugu: Ochumba Press. Okoli, C. (2007), Event Management: Spotlight on Tourism and
Hospitality. Owerri: Webs Media Communications. Onah, F. O. (2003), Human Resource Management. Enugu:
Fulladu Publishing Company. Reckit, C. A. (2004), Managing People at Work Place, New
Delhi: Vikas Publishing Company. Robert, C. A. (1994), Modern Business Administration. 6th
Edition London: Pitman Publishing. Powers, T. (1992), Introduction to the Hospitality Industry. 2nd
Edition. London: John Wiley and Sons Inc. Ugbaja, C.O. (2002), Human Resources Management. Lagos:
Ilupeju Press. B. ARTICLE Dieke, P. U. C. (2001), Human Resource in Tourism
Development African Perspective. Ikeagwu, E. (1998), Personnel/Human Resources Management.
UNEC: Department of Management.
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C. PUBLIC DOCUMENT
Bureau of Labour Statistics, 2006-07, Career Guide to Industries.
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Toward a Closer Integration of Vocational Education and Human Resources Development. Journal of Vocational and Technical Education, Vol. 12, No. 2, P. 7. Retrieved from http://en.wikipedia.org/wiki.humanresources.
Kelly, D. (2001), Dual Perceptions of Human Resources
Development. Issues for Policy: SME’s Other Constituencies and the Contested Definitions of Human Resources Development.
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Development; An Integrated Approach. Reprinted in the Special Edition of Annals of the American Academy of Political and Social Science. World Literacy 2000. Vol. 520.
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Wheelhouse, D. and Longstreet, C. (2004), Managing Human
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134
APPENDIX
Department of Management, Faculty of Business Administration, University of Nigeria, Enugu Campus. 20th April, 2011. Dear Respondent, This questionnaire being presented for your completion is purely for academic research purpose in fulfillment of the requirements for an award of MBA degree in management of the University of Nigeria. It is designed to gather information relating to Determinants of effective human resources management practices in the hospitality industry with your hotel as the case study. It is also my request, therefore, that you sincerely answer these questions as the success of this work depends on your willingness to do so. Thank you.
Yours sincerely, Linge Adamu Pekamah
135
QUESTIONNAIRE Please, tick whichever applies to you.
Q.1 Sex (a) Male [ ] (b) Female [ ]
Q.2 Which categories below do you belong to in your organization?
(a) Management staff [ ] (b) Intermediate staff [ ] (c) Junior Staff [ ]
Q.3 What is your highest academic/professional qualification (a) WASC [ ] (b) OND [ ] (c) HND [ ] (d) B.Sc [ ] (e) Masters Degree [ ] (f) Others [ ]
Q.4 Does the industry have policies on human resources management?
(a) Yes [ ] (b) No [ ]
Q.5 If ‘yes’ what are the policies about? (a) Employment Procedures [ ] (b) Training and development [ ] (c) Compensation [ ] (d) Labour relations [ ] (e) Social welfare/security schemes [ ] (f) Discipline/termination [ ] (g) All of the above [ ]
Q.6 What type of training and development prorgamme does the industry have?
(a) On-the-job training [ ] (b) Off-the-job training [ ]
136
Q.7 Do you agree that training and development prorgamme is effective in the industry?
(a) Yes [ ] (b) No [ ]
Q.8 What constitute compensation/rewards for employees? (a) Wages and Salaries [ ] (b) Fringe benefits [ ] (c) Social welfare/security schemes [ ] (d) Promotion [ ] (e) All of the above [ ]
Q.9 Do you agree that compensation/rewards are effective in the industry?
(a) Yes [ ] (b) No [ ]
Q.10 What are the disciplinary? (a) Warning [ ] (b) Suspension [ ] (c) Demotion [ ] (d) Transfer [ ] (e) Dismissal [ ] (f) Compulsory retirement [ ] (g) Others [ ]
Q.11 What are the social security schemes in the industry? (a) Gratuities [ ] (b) Pensions [ ] (c) Health insurance [ ] (d) Others [ ] Q.12. Are employees adequately compensated when their
appointed are terminated? (a) Yes [ ] (b) No [ ]