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CHAPTER ONE

INTRODUCTION

Human resource management and practices is

concerned with the right management of people since all

organizations are made up of people working to achieve the

organizational goals. And qualified people are needed for the

effectiveness and success of the organization.

Human resource management originated from

personnel management. Personnel management emerged

because of the poor condition of the service of earliest

workers; it was pitiable and highly revolting. A worker was a

defenseless operator. He was a pawn in the hands of his

employer. However in 1840s common humanity and political

pressure combined with enlightened self-interest among few

of the larger employer to make aware of alternative ways of

managing their workforce other than coercion, sanctions and

monetary reward. This emerged because of the drastic

changes in technology, the growth of organizations, rise of

unions and government intervention resulted in the clear

development of personnel management. Human resource

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management evolved because there were some lapses in

personnel management, it evolved to end suspicion and

discord which was in personnel to usher in friendly

cooperation.

Human resource practices play a major role in survival

and prosperity of an organization. These activities are

employee recruitment, employee selection, out placement,

training & development, performance appraisal, reward

systems labour relations. This activity if done properly

enhances the effectiveness of an organization.

1.1 STATEMENT OF THE PROBLEM

The following problems have been discovered to exist by

the researcher.

(i) The problem of manpower planning, which has

militated against the achievement of organizational

goals. This problem is seen in the way some

organizations conduct their recruitment and selection

exercises.

(ii) The problem of training and development, which has

dragged too long in the sector. This problem occurs

because some organizations do not know how to design

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its program to suit the climate of the organization for

which training is required, the particular characteristics

of the personnel to be trained, the department needs

and assessment of available economic resources that

can be allocated to training.

(iii) Management labour relationship has also been

identified as a problem because some managers do not

respect the feelings, perceptions, opinions etc. of the

employees on strategic issues.

1.2 OBJECTIVES OF THE STUDY

People (human resources) comprise the key or dominant

factor in every situation and in every organization. They are

the essential competitive requirement that needs and

demands careful planning attention, hard work and

evaluation by top managers.

Human resource management is the strategic and

coherent ways of managing organizations most valued assets,

the people working there who individually and collectively

contribute to the achievement of organizational objectives.

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The objectives of the study are to achieve the following:

(i) The extent to which manpower planning policies are

carried out in small-scale businesses and how it

impacts in the attainment of corporate goals.

(ii) To evaluate the role of training and development of staff

in achieving the organizations ultimate objectives.

(iii) To also examine the degree of management labour

relationship hence system approach to management

and the achievement of the supra goal of organizations.

1.3 RESARCH HYPOTHESIS

The following hypotheses are formulated:

a. Ho: Conscious and effective manpower planning does

not aid in achieving the long term goal of any

organization

Hi: Conscious and effective manpower planning aids in

achieving the long term goal of an organization.

b. Ho: Effective mobilization of human resource through

training and development policies does not lead to

increased productivity.

Hi: Effective mobilization of human resource through

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good training and development policies lead to

increased productivity.

c. Ho: Effective management – labour relationship does

not lead to increased staff morale.

Hi: Effective management – labour relationship leads to

increased staff morale.

1.4 SIGNIFICANCE OF THE STUDY

The significance of this research study is to improve

small scale businesses in Nigeria. And to encourage small

scale sector to employ human resource practices in the

system, to improve the overall performance of the company.

Thereby boost the economy.

1.5 SCOPE OF STUDY

The research is expected to cover selected small-scale

businesses from three sectors of the Nigeria economy

namely: Trading, Service, Manufacturing.

The indigenous companies to focus on are:

(a) Green season (Trading)

(b) Ok Danison & sons (service)

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(c) SA&C (manufacturing).

1.6 LIMITATION OF THE STUDY

The scope has been limited to the above selected

organizations because they represent the different sectors

were most people occupy and wish to venture.

The study is limited to the above because they not only

represent the back bone of Nigerian economy; But not

withstanding government policies (unfavorable), political

instability, economic downturn and legislations est. they still

strive to break even.

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REFERENCES

Bratton, Jar Gold, J. (1991), Human Resources Management, Theory and Practice, Great Britain.

Onah F.E (2000), the Impact of Economic Globalization of

Nigerians Sector.

Chukwuemeka Nnadi (2010) Human Resource Management.

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CHAPTER TWO

REVIEW OF RELATED LITERATURE

INTRODUCTION

This work looked at the various books related to human

resource practices and small businesses. A

deductive empirical research cannot be completed without

making references to the previous works done by many

researchers and other author‟s views.

Here, the researcher will use mostly authorized

textbooks, journals, papers presented on the subject matter,

the internet, periodicals, Newspapers. Etc. these will help the

researcher get to the grassroots and be able to come up with

something educating.

2.1 SMALL SCALE BUSINESSES

The concept of small scale business has perhaps

enjoyed more controversy in the literature than possibly any

other concept could. Ekpenyon (1999] defined small scale

enterprises as “those enterprises that have relatively little

capital investment that produce in small quantities and as a

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result control a small share of the market, that employ not

more than fifty workers and in which management,

marketing and entrepreneurial functions are vested in the

proprietor”. In united states, Hub barb et al (1998) states

that small scale business is one which is independently

owned and operated and not dominant at its field of

operation . In fact it is entrenched in the act that small

business should be defined by any of the criteria mentioned

earlier. In Japan, the fundamental law of medium and small

enterprises defines as small and medium sized any business

whose capital does not exceed 50 million yen and does not

employ more than three hundred persons.

However, in a research published by the Centre for

Management Development, Lagos, noted that small business

should not be considered in terms of number of employees,

sales, volumes, assets employed or a combination of the

above because of the inherent misconception that would be

embedded in such definitions. This assertion was supported

and better illustrated by Ezeife. .

“Ezeife” held that definitions based on number of

workers should be rejected unless the level of technology

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employed is also specified because it is possible computers,

robots and a few technicians to be employed in an industrial

venture.

Furthermore, Ezeife holds the view that the level of capital

involved as a basis for definition will have to respect time and

place. This is because, according to him, what passes for a

large scale today may be viewed as small scale in the future,

and what constitutes a giant enterprise in Nigeria may only

be classified as small in the USA. This implies that what

constitutes a small business enterprise may vary from one

country to another and from time to time.

2.2 HISTORICAL BACKGROUND OF SMALL SCALE

BUSINESSES

Small scale businesses have existed in Nigeria since the

era of barter trade. For the purpose of analyzing the

historical trend of small-scale businesses in Nigeria, adopt a

three – phase approach via:

(i) The pre – independence era

(ii) The post – independence era

(iii) The post oil boom and economic reconstruction era

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The Pre-Independence Era

Prior to 1960, small-scale businesses in Nigeria were

predominantly engaged in local raw material production and

trading. Thus, they were sole proprietorships supplying the

colonial companies with agricultural outputs like groundnut,

cotton, rubber, palm oil and kernel, cocoa, hide and skin est.

The export of these commodities was carried out by the

foreign enterprises.

Another aspect of small-sale businesses during this era was

trading in imported goods. The importation was done by the

big foreign outfits such as the United African Company (UAC)

and John Holt while the Nigeria small businesses acted as

distribution agents in the urban and rural areas. In addition

to their normal profits, these small businesses earned

commission based on their volume of sales.

The few of small-scale businesses in this era that still

existed diversified into several sectors of the economy e.g.

GMO Group of Companies. Other areas where small scale

businesses held in this era were fishing, wood work and

carpentry, weaving, pottery and black smiting.

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Post – Independence and Oil Boom Era.

This era was characterized by significant diversification

of activities on the part of the small-scale businesses across

the various sectors of the economy as well as increased

involvement of the government in the infrastructural and

industrial development of the economy. Nigerian entrepreneu

r ventured into block-making, metal work, direct importation

of foreign goods, mechanic workshops, cottage industries.

This era witnessed governments awakening to the

development of the informal business sector, as evidenced by

the establishment of the Nigeria commerce and industry

(NBCI) in 1973 to address the funding needs of indigenous

enterprises. According to Owualah (1999), the small-scale

industries credit scheme (SICS) was introduced in the second

national development plan period (1970-74) to grant loans to

small scale businesses, and small-scale industries in Nigeria,

the Centre for Management Development (CMD) in 1978,

promoted the formation of the Nigerian Association of small-

scale industries (NASSI), which as at 31st December 1998

had a membership of 183 enterprises in Lagos.

This era, witnessed a boost in the activities of small

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business sector in Nigeria.

Post Oil Boom and Economic Reconstruction Era.

The collapse of oil prices in the early 1980s with the

attendant down turn in Nigeria‟s economic fortunes made it

imperative for the economy to initiate policies to revamp the

economy. Accordingly, the structural adjustment program

was adopted in 1986. This era, which represents the third

phase in the evolution of small scale businesses, was

characterized by a gradual elimination of enterprises whose

cost structure was not sustainable. Conversely, it opened up

real opportunities for micro industries whose costs are

broadly competitive in the local market. Thus, small

businesses demonstrated capability to capitalize on the

opportunities offered by market oriented deregulation policies

of the adjustment program.

Many indigenous enterprises were established in the

areas of food processing, garment making and fashion

designing, cosmetics, footwear, fruit drinks, soaps and

detergent making, printing and painting as substitutes to

imports. Also, several small businesses were set up in the

areas of consultancy dry-cleaning, refuse management etc.

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on self –employed basis however; government promotional

efforts to small-scale businesses did not decline with

economic fortunes.

Thus, agencies like National Directorate of Employment

(NDE) – 1987; National Economic Reconstruction Fund

(NERFUND) 1989; People‟s Bank – 1990; Community Banks

– 1990; family Economic Advancement Program (FEAP) –

1994; and poverty Alleviation program (PAP) – 1999, engaged

in assisting small scale businesses with micro credits.

According to World Bank Report (1995) on Small and

Medium Scale enterprises in Nigeria, it is estimated that 70%

of the total number of 220,000 establishments in 1991 are

small and medium scale enterprises. The report further

indicated that 70% of industrial employment was also

provided by the sector.

2.3 PROBLEMS AND CHALLENGES OF SMALL SCALE

BUSINESSES.

According to John A. Ezeh (1999) there are many

problems both remote and immediate that confront small

business entrepreneurs. Problems which are remote and

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general in nature include.

1) Entrepreneurship development program.

2) Limited Fund available to small business owners.

3) Credit facilities and access to raw materials.

4) Inadequate technical and managerial known how.

Entrepreneurship all over the world has unique problems

confronting them. Such problems include.

(i) Experience show that entrepreneurs do not respond

spontaneously to available business opportunities

despite various incentives and inducements.

(ii) Government supports are not easily available to

entrepreneurs rather they create unnecessary obstacles.

(iii) There is general problem of identification and

development of entrepreneurs.

(iv) Entrepreneurs lack project counseling.

(v) Restricted markets – due to inadequate capital.

(vi) Non-enforcement of official guidelines.

(vii) Lack of managerial skill on the part of entrepreneurs

themselves

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Causes of Small Business Failure

Lack of capital

The unplanned attitude of small business owners in terms of

capital, before launching into their ventures, can be said to

be the chief cause of many failure of the small business

enterprises.

One – person management

A typical Nigerian small business enterprise is anchored

around the owner of the outfit. He is the cashier and the

accountant the marketing officer as well as the general

manager. In this case of one-person management, failing

health on the part of the owner-manager could also spell

disaster for the business.

Bad business plan

Most small business owners had dabbled into their

ventures; head long, without first of all charting the course

they would follow. . S.I. Owualah (1998) paints a vivid

picture of hopelessness of an unplanned business when he

wrote that a small business firm without a business plan is

comparable to a shop or an aircraft without a wider or

radar”.

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Poor Management

Lack of effective, competent and dedicated management is

yet another cause of small business failures. The success or

failure of any business enterprise depends on how it is

managed.

Other factors include

Shortage of raw materials, government instability,

catastrophes including fire disaster, domestic crisis.

2.4 THE FUTURE OF SMALL SCALE BUSINESSES IN

NIGERIA.

We have on our hands as entrepreneurial boom, the like

of which we have not seen in a century the most important

economic event of the last few years, infarct, is the

emergence of entrepreneurial development program.

This was how professor peter Drucker an

internationally renowned management expert, reacted in

1993 to a reporter‟s question which sought to know whether

it was still possible to start new companies and succeed.

Drucker maintained that most of the 20 million additional

jobs on the United States are in small enterprises.

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The future of small businesses in Nigeria lies partly with

the owners and partly with the government – Federal, State

and local.

Fajemirokun (1990) lends credence to this view as he

observed that although some faults in government policies

towards indigenous enterprises have been noted, instead of

shifting responsibility it would do a Nigerian businessman a

world of good to look within himself and face up to his short

comings. He further observed that there is no doubt that

the indigenous Nigerian businessman has tremendous

opportunities to tighten his belt and work harder to remove

these anomalies.

Success as a business man depends on your willingness to

accept responsibility for your work. Your power comes from

your own actions rather than actions of others. Even though

the risk of failure is always present, business men takes risk

by assuming responsibility for their action.

No man is an island you must work with people, the

relationship with the work force determines to a large extent

the success of that business.

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2.5 OVERVIEW OF HUMAN RESOURCE MANAGEMENT.

Human beings are the active agents who accumulate capital,

exploit material resources, build social economic and political

organization, and carry forward national development.

Ivancevich Glueck defines human resources

management as the function performed in an organization

which facilitates the most effective use of people (employees)

to achieve organizational and individual goals, or

organizational effectiveness.

D.U. Akanwa (1997:3) defines human resource as

supply of required staff of people with various qualitative

skills which when applied organizational or institutional,

objectives will be achieved.

Waye F. Cassio (2002:5) states “organization are

managed and staffed by people” without people organization

will not be achieved or exist.

Human resource management refers to the concepts,

theories, policies, programs and other activities that are

concerned with the acquisition and utilization of men

towards the achievement of organizational goals. It is also

viewed as the strategic and coherent ways of managing

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organizations most valued assets, the people working there

who individually and collectively contribute to the

achievement of the objectives of the organization.

Effective human resource management is action oriented.

It is not focused on record-keeping, written procedures or

rules. Human resource management emphasizes the solution

of employment problems to help achieve organizational

objectives and facilitate employee development and

satisfaction. Solution of Employment problems involves the

methods of personnel selection that are most likely to ensure

the employment of reliable, effective and efficient officers for

management positions in organizations that are concerned

about the achievement of the organizations objectives.

(Fatiregun 1999: 131) emphasizes that recruitment selection

and placement 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. He defines recruitment as

that process of assessing a job, announcing the vacancy,

arousing interest and stimulating people to apply; selection is

the exercise of choosing for excellence through the process of

rejecting or matching of the applicants against the attributes

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which expect will make for success on the job and secondly

matching of the candidate against the others until we have

rank ordered all of them in order of relative suitability and

placement as the process of appointing or investing an

appointee with the authority to perform a role or legitimatized

power to function in a role.

The Relationship between Human Resources

Management and Small Scale Businesses

The activities of small-scale businesses have been on an

increase in recent times. This is owing to the fact that some

entrepreneurs have tried to break some barriers and

functional walls in order to register tremendous success.

However, it is worth noting, from this point of view, that they

couldn‟t have done this without an effective and efficient

human resource management. Every plan, strategy and

work, are done with and through people, human resource

management can be said to be inseparable from small-scale

businesses.

Some of the relationships identified by the researcher are in

the following areas.

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1) Recruitment: Any success story, which an organization

tells, first starts with the caliber of labor force employed

or attracted and retained by such organization. Therefore

successes recorded by small-scale entrepreneurs are

consequent upon the reliability and validity of the

recruitment exercise being taken.

2) Environmental Analysis: This is another area where the

human resource department of any given organization

strives to get under control. This area, which is the core

area or key factor for success, included analysis of both

the internal and the external environments. Also

included here is the SWOT analysis comprising of the

strength and weaknesses, opportunities and threats

inherent in any given organization. The human resource

department has done tremendously well in these areas

hence small – scale entrepreneurs survive in the hardest

storm.

3) Motivation: - This is one aspect of human resource that

should not be taken for granted. In recent times. It has

made sure that employees are well-taken care of, well-

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remunerated, well trained and making work Life more

and more desirable. They do this because a well –

motivated employee improves his performance and

increases his productivity to the benefits of the parent-

organization. Motivation matters most in the lives of both

the entrepreneur and the human resource department.

4) Manpower: This is another area where the human

resource department does not overlook or sleep over. For

any small-scale business to do well, its manpower must

be well planned and executed. This means that from the

point of conception to the point of execution must be

done with meticulous attentions. This is because any

mistake here, will adversely affect the ultimate goal of the

business. Therefore, human resource management

strives to make a perfect forecast so as to strike a

balance between the demand for and supply of

manpower.

5) Training & Development: This is another area where

human resource management and small scale

businesses are related. This relationship stems from the

fact that trained and retrained employees contribute

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immensely to the overall achievement of the ultimate goal

of any given organization. And since organizations do not

have any choice in whether to train or not, it is

imperative that employees be trained and developed. This

topic will still be extensively discussed since it is very

crucial to Human resource.

There are still, other areas where human resource

management and small scale businesses share things in

common. They include areas like rewarding, selection,

compensation, Empowerment, work force flexibility,

productivity and Gaining competitive advantage.

Importance of Human Resource Management

The three general goals traditionally associated with

human resource management, according to Ivan Cevich are

Attracting applicant

Retaining desirable employees

Motivating employees.

Training & retraining employees.

The increased strategic importance of human resource

management means that human resources specialist must

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show that they contribute to the goal and missions of the

firm. The actions, language, and performance of the human

resource management function must be measured,

communicated and evaluated.

The new strategic positioning of Human Resource

management means that accountability must be taken

seriously. The era of accountability for human resource

management has resulted from concerns about productivity,

from wide spread downsizing and redesigning of

organizations, from the need to effectively manage and

increasingly diverse work force and the need to effectively

use all the resources of an organization to compete in an

increasingly complex and competitive world.

Human Resource management and every other function

must work together to achieve the level of organizational

effectiveness required to compete locally and internationally.

Some of them are:

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1 Helping the organization reach its goals.

2 Employing the skills & abilities of the workforce

efficiently.

3 Providing the organization with well – trained and well-

motivated employed

4 Increasing to the fullest the employees‟ job satisfaction

and self actualization.

5 Developing and maintaining a quality of work life that

makes employment in the organization desirable.

6 Communicating Human Resource Management policies

to all employees.

7 Helping to maintain ethical policy and socially

responsible behavior.

8 Managing changes to the natural advantage of

individuals, groups, the enterprise and public.

Ivance rich (1998) added the following importance of human

resource management to an organization.

- Productivity

- Legal compliance

- Gaining competitive advantage

- Work force flexibility

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Effective management of human resources has a great

impact in the firms over all direction and ultimately its

bottom line. The term bottom line according to IVance rich

refers to the organizations survival growth, profitability,

competitiveness and flexibility on adapting to changing

conditions.

2.6 MANAGEMENT TRAINING AND DEVELOPMENT

The oxford English defines training as a discipline and

instruction directed to the powers or formation of character,

education, rearing, bringing up; a systematic instruction and

exercise in some arts, profession or occupation with a view to

profession. In other words, training is discipline and

instruction which improve character through exercise to

achieve objectives or goals efficiently. Roma Herzog (1997:

25) affirms that training is a continuous exercise and is not

done once to new employees. It is used continuously in every

well-run establishment. Adequate training is continuous

reading, learning and exercise or practice. Learning

understands the key concepts and terminologies as well as

their sequence and interrelationships on providing the

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framework for the course under study. It is a friendly

associate that continues to keep employees fit.

According to chukwuemeka Nnadi (2010) training is an

investment commitment directed in improving the resource

force of employees or prospective employees to facilitate

employment and selection in work place environment. For

people to become or leverage into human resources a lot of

investment on training and development must have taken

place on them to equip them to play their roles effectively as

employees in organizations. The roles they play qualify them

as employees or members of business organization.

The investment commitment includes the following.

- Acquisitions of current knowledge and techniques:

Knowledge is multiplying ever faster and at the same

time, it is becoming obsolete at an unprecedented rate.

Training being a renewal process, strives to prepare a society

or people to be information, knowledge and skill based. That

is sharpening the vision of the society or people that every

willing person enjoys the opportunity to participate in the

knowledge revolution of every age. This means being

prepared for life-long learning, having the will to play in the

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premier division in the world wide competition for knowledge

which above all, implies an enlightened attitude to

technology.

_ The usefulness of any skill expires in time.

Peter hull states that „every employee in a hierarchy

tends to rise to his or her level of incompetence; he or she

becomes redundant and imposes avoidable cost on the

organization‟.

Drucker puts it differently – “what exists is getting old”. That

is why human resource management being individually

oriented treats each employee as an individual and offers

services and programs (or training) to meet the individual‟s

need, in terms of re-branding him Nnadi (2010). This

provides the redundant employee a training opportunity to

acquiring technique skill or knowledge which is essential to

regaining competence and building a healthy self-confidence

which based on developed and tasted powers of thought and

action.

- Reading culture

Peter and Hull state that through reading the reader

conquers incompetence. By conquering incompetence in

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yourself and by understanding incompetence in others, you

can do your work easily, gain promotion and make more

money. You can become a leader of men or manager of

employees. You can avoid pain. You can enjoy your leisure.

Training also on regular and periodic basis, will enhance the

staff members job fit whether oriented around job content,

basic skill, attitudes and interpersonal relations and ensure

effective adaptation to the demands of the job (Howell 2001)

Training has proven so indispensable, so quickly and

with so little opposition, so little disturbance, so little

controversy without training institutions and business

enterprises will be doomed to decline for lack of vision and

lack of productive effort. Only superior management

competence and continuously improved management

performance can keep employees progressing, can prevent

their becoming smug, self satisfied and lazy.

Major value of Training

- Increased productivity

- Heightened moral

- Reduced accident

- Increased organizational ability and flexibility

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- Reduced supervision

- Provides opportunity and challenges to managers and

employees.

Development

Development is “the systematic process of training and

growth by which individuals gain and apply knowledge,

skills, insight and attitudes to manage work organization

effectively” while training is concerned with imparting specific

skills for specific purpose. Development is more broadly

based, being involved with the long term development of the

individual intellectually, psychologically, socially and

physically.

There are two levels of development:

They are the individual and societal level, for the study I will

discuss on individual level.

“Flippo” states that the first cardinal principle upon which a

management development program should be based is self –

development, the firms developmental efforts should be

geared to individual differences. Furthermore, executive

development is a long-range process with individual program

running into years. He insists that development is more

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closely akin to education than mere taking a course, reading

a book, holding one job or attending a University – sponsored

conference or pursuing a specific training in skills.

At the individual level development implies:

1. Increased skill and capacity to earn income

2. Greater freedom of action, creativity, self-discipline,

responsibility and

3. General material and psychological well-being.

UNEP (1997) defines development as meeting the needs

of the present without compromising the ability their own

need. In other words, it means to improve, make progress,

change for the better, earn higher income or enjoy better

living standard.

2.7 MANPOWER MANAGEMENT

This has been referred to as people humanity and

society with all its inspirations, needs and capacities.

As an economic resources however the term can be equated

to aggregate skills and attitudes emanating from and

consequent upon the quality and content of the education

and training providing a labour force with defend planning

and organizing ability.

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There are types of labour force; low, intermediate and

high level. Usually low level manpower is unskilled always

drifting and mental intermediate - term often comprise the

orders of technicians, supervisors, foreman and such other

trade men whose training background range from trade

centers to polytechnics. On the other hands high level

manpower is the professional management cadre, comprising

of executive administrators, professionals and experienced'

long trained craft men whose inadequate academic

background remedied by long experience in job. Often the

products of higher institution earning the higher trained

individual have been considered "the produce producer".

The above reveals "manpower" as the quality and

quantity of labour of any given nation. Manpower

development is the conscious and deliberate effort of raising

both quality and quantity of labour forces deemed necessary

for organizational or national development.

Manpower development is of a high economy to the

developing nation but more too developed countries, this is

due to the fact that availability of the high level manpower in

a nation is the prerequisite for increasing control over her

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own destiny.

The confirmation of a nation's recognition of the role of

skilled manpower in technological and economic growth

illustrates with the case of Nigeria government. It was partly

due to the need to develop her high level manpower that the

government in 1963 sets up the Ashby Commission, it is

therefore clear that Increase manpower development is one of

the features of the Nigeria drive toward more rapid

development.

To manage manpower the management should

formulate policies that will help to improve the welfare of the

workers. E.g. provision of canteen where meals are

subsidized, free medical care, housing equipment, transport

allowance, the formality for obtaining this loan should not be

too rigid to frustrate employee‟s attempts to obtain one. The

focus of welfare policy is to raise the employee's moral and

commitment to the enterprise.

The approach is based on the total quality management

(TQM) and excellent companies are copying these ideas,

because it is the latest fashion in the management circle.

Management should develop personnel environment that

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should nurture and sustain an environment within which

people are motivated towards producing effective effort and

co-operation with management. The success of any

organization should rest on well-conceived, designed and

articulated personnel policies and the implementation of

system and procedures, to achieve enterprise goal. Evidence

from research findings shows that lack of well formulated

personnel policies, in the long run has debased employee‟s

motivation and organizational performance.

2.8 HUMAN RESOURCE PRACTICES IN SMALL SCALE

ENTERPRISES

Small-scale enterprises are important for modern

economy and it is widely recognized that they contribute to

employment growth (Drucker 1995)

Human resource management (HRM), involves practices that

ensure that employees collective knowledge, skills and

abilities contribute to business outcomes (Schuler, 2000).

The traditional conceptualizations of HRM focus on

managing, measuring and controlling organizations

workforces. Tactical or technical HRM includes selection

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testing, training, performance measurement and

administration of benefits. Huselid et al (1997) identified

empirically a second dimension of HRM activities. Strategic

HRM includes employee participation and empowerment,

communication, team based work design and development of

managers of the organization.

Arthur (2000) identified two types of human resource

systems similar to those found by Huselid et al (1999),

commitment and control. The human resource system that is

based on commitment is focusing on psychological link

between organizational and employee goals. It is associated

with involvement in managerial decision, participation,

providing training and rewards.

A human resources system that is based on control

focuses on directly monitoring and rewarding employee

behavior or the specific outcomes of that behavior.

The theoretical literature suggests that HRM practices

increase productivity by increasing employee‟s skills and

motivation. Moreover, HRM practices contribute to business

objectives through strategic innovation or technical

competence. HRM is an investment, and thus, it costs time

37

and money. Moreover, HRM can only have effects when

employees stay on the company for a certain period of time;

otherwise the companies suffer a loss because of the

investment in HRM. Thus, the benefits of HRM must exceed

costs invested in HRM.

With respect to small-scale enterprises, the literature on

personnel issues is more conceptual than empirical/ data

based. (Kurako 2001). However, a few studies, have analyzed

whether HRM practices were used in small firms.

Gother (2007) found that many HRM practices of small

and large manufacturing firm were similar. However, bigger

firms used external sources of recruitment, written tests, and

panel interview more frequently. In small firms, employee‟s

ability to inspect their own work was more important than in

large firms.

The four major areas of HRM:

Training/development of employees

Decision – making involvement

Support for personal initiative

Goal communication

38

A firm needs a well-motivated, skilled workforce if it is

to compete effectively in the global market place, and there is

growing empirical evidence linking HRM activities and

organizational performance.

Recruiting and keeping good employees represent a major

challenge for many small firms.

2.9 DEFINITION OF TERMS

1. Competence: Competencies have been defined as an

underlying characteristic of a person, which results in

effective or superior performance; they include personal

skills, knowledge, motives, traits, self-image and social

role. They can be used in an integrated way for

selection, development, appraisal and reward activities,

etc.

2. Grievance: This is a complaint that has been formally

presented to a management representative or to a union

official. Grievance stems from 'Dissatisfaction', which is

anything that disturbs an employee, whether or not the

unrest is expressed in words. From this, it turns out to

he 'Complaint' which is a spoken or written

39

dissatisfaction brought to the attention of the

supervisor and/or shop steward.

3. Concept: A concept is an abstract idea, which can be

used to describe situations, events, and individuals. Its

purpose is to simplify thinking by including a number

of events under one general topic (heading), e.g. Belier,

Authority, Predestination, Attitude, Role, Value etc.

4. Theory: A theory is a statement of invariant

relationship among measurable phenomenon with the

purpose of explaining and predicting the phenomenon.

It is higher-level law because is also explains and

predicts the property of the phenomenon.

5. Credence: belief in something as true

6. Spontaneously: something acting naturally, without

being made to do so

7. Conversely: act of holding a conversation

8. Burgeoning: growing rapidly

9. Indigenous: something occurring naturally in a place

10. Revamp: change something to improve its appearance

REFERENCES:

40

Barrock, G (1981) "Economics of Small Firms: Return from

The Wilderness". Basil Blackwell Publishers, Oxford. Chukwuemeka Nnadi (2010) “Human Resource Management”

A practical guide. Drucker, b.F. (1954) “The Practices of Management”. Harper

and Brothers, New York. Ekpeyong D. B. (1989) "Entrepreneurship

Development Programme: Which Model For Nigeria: Management in Nigeria. Jan - Feb.

Ezeh .JA (1999) "Fundamentals Of Small Business

Management". Glanic Book Ventures. Emene, Enugu. Nigeria. Pp 64-66.

Fajemirokun, H. (1970) “The Indigenous Nigerian

Businessman, Past, Present and Future”. Management in Nigeria, vol. 6, No. 6 (May/June). Firms in Nigeria, Business Times, Monday, Nov. 7.

Nwaolai, C. (1983) "Reasons for the Predominance of Small Oshagbemi, F. A (1983)"Small Business Management III

Nigeria". Longman Publishers, Lagos. Owualah, S. I (1999) "Entrepreneurship in Small Business

Firms", C-Mag Investment Ltd. Lagos. Parris, A. W. (1968) "The Small Business Fredrick, A.

Prayer Publishers, New York. Ukpanah, S. J. (1971) "Some Management 'Pre-requisites For

Small Scale Industries Development", Management In Nigeria, vol. 6. May/June.,

41

CHAPTER THREE

RESEARCH METHODOLOGY

INTRODUCTION

In this chapter, the researcher wishes to have a brief outline

of what she intends to do. First, the researcher wants to

explain plainly the type of research design she has chosen in

other to demonstrate how the variables of the proposed study

will be observed, controlled or manipulated to generate

necessary data for her study. Second, the researcher wishes

to state categorically, the data source(s) for her study. She

also intends to give the accurate information on her

population of study, which will state the characteristics of

her subjects. The sample size will also be determined by the

researcher based mainly and strictly on the responses from

the available questionnaires. The sample procedure will

however, be determined to ensure that each employee in the

study' population (category) has an equal opportunity or

chance of being selected. And finally, the researcher shall not

hesitate to state categorically, his tools of analysis, using

some statistical tools for analysis.

42

3.1 RESEARCH DESIGN.

The research design, serves as the master plan of the

method(s) and procedure(s) that should be used to collect

and analyze data needed by the researcher. It is regarded as

a 'mental image'. The appropriate design the researcher has

decided to use is the Survey Research Design. This will focus

on the study population. Data are collected from sources for

intensive study and analysis. A sample is selected from a

subset of the population using available methods of

sampling.

The methods used included questionnaires, personal

interviews, through phone and observations. The researcher's

purpose of using the research design is to demonstrate how

the variables of the proposed research will be observed,

controlled or manipulated to generate necessary data for his

study. The researcher also intends it to serve as a guide for

data collection.

3.2 SOURCES OF DATA

The source of data for this study is mainly through

questionnaires, which is a secondary form of data collection.

43

Questionnaire consists of a set of questions designed to

gather information and/or data for analysis, the results of

which are used to answer the research questions or used for

the test of relevant hypotheses. The researcher also used the

methods of observation and personal interviews (where it was

necessary) to gather and analyze his data this he did to make

sure that there was reliability, consistency and validity in the

data.

3.3 POPULATION OF THE STUDY

The population of study has been narrowed down to persons

that have knowledge of the phenomenon being studied. They

include, age, sex, occupation, ethnic group or nationality,

income level, education, residence, level of management, etc.

3.4 DETERMINATION OF SAMPLE SIZE

The researcher has determined the sample plan and size in

order to make inferences or predictions about the

phenomena; and how representative the data are. However,

the sample size was drawn from the Human resource

departments' record of the companies to be 145.

44

3.5 SAMPLING PROCEDURE

The sample frame for this research covers the list of the

selected companies. In order to ensure effective selection of

the sample the researcher has chosen the random sampling

method to achieve optimal objectives of the study. The basis

for the choice of this random sampling is to ensure that no

element of bias is expressed by the researcher in his

selection of respondent.

3.6 COLLECTION DATA:

The questionnaires were taken to the three companies

and distributed. However, for some staff, the responses were

received on the phone and answers circled/ticked as they

responded to questions read out from the questionnaires.

3.7 TOOLS OF ANALYSIS:

The data collected were duly analyzed using statistical

tools like percentages and with test of hypothesis for sample

proportions.

45

CHAPTER FOUR

4.0 PRESENTATION AND ANALYSIS OF DATA

In this chapter, the researcher focuses attention on the

data collected from 145 staff of the selected companies. The

data were collected with the use of the questionnaire and

were analyzed using percentages and chi-square test

technique.

4.1 DATA ANALYSIS AND INTERPRETATION

The following questions were posed to the respondents.

The question states

QUESTION 1

Does effective mobilization of human resources through

training development programme leads to increased

productivity.

46

TABLE 4.1 TRAINING AND DEVELOPMENT LEAD TO INCREASED PRODUCTIVITY.

OPTION NUMBER OF RESPONDENT

PERCENTAGE (%)

Yes

Not Sure

115

30

97

21

Total 145 100

The table above shows that 115 respondents representing

79% indicates that effective human resource practices

through training increase productivity while 30 respondents

representing 21 percent is not sure, it is obvious that

effective human resource practices through training and

development leads to increase in productivity.

QUESTION 2

Has Manpower planning impacted positively on the overall

growth of the company?

TABLE 4.2 CONSCIOUS AND EFFECTIVE MANPOWER PLANNING AIDS IN ACHIEVING LONG TERM GOALS OF AN ORGANIZATION.

OPTION NUMBER OF RESPONDENT

PERCENTAGE (%)

Yes

No

Not sure

119

16

10

82

11

7

Total 145 100

47

This shows that 119 respondents representing 82%

were of the opinion that there is manpower planning has

impacted positively on the overall growth of the company,

therefore conscious and effective manpower planning helps

in achieving results.

QUESTION 3.

Does effective management – labour relationship lead to

increased staff morale.

Table 4.3 Effective management – labour relationship leads

to increased staff morale.

OPTION NUMBER OF RESPONDENT

PERCENTAGES

Yes

No

Not sure

145

-

-

100

-

-

Total 145 100

From the above it is obvious that effective management-

labour relationship increase staff morale.

QUESTION 4

Does employee appraisal and evaluation have positive on

companies‟ performance?

48

Table 4.4: Employee appraisal effect

OPTION NUMBER OF RESPONDENT

PERCENTAGE (%)

Yes

No

134

11

92

8

Total 145 100

With regard to analysis as given by the respondents on the

above question, majority i.e. 134 respondents representing

92% confirms that employee appraisal have positive impact

on the performance of the establishment.

4.2 ANALYSIS OF DATA ACCORDING TO THE

RESEARCH HYPOTHESIS

The Chi-square method will be used in testing the

hypotheses. This method is used to test the relationship

between variables. It requires the determination of the null

hypothesis (H0) and alternative (Hi) hypotheses.

The test should clearly show the difference between the

expected and observed variable (Frequencies) the formula for

Chi- Square (X2) test is:

X2 = ∑ (0-E) 2

E

49

Where

0 = Observed Frequency

E = Expected Frequency

HYPOTHESES ONE

H0: Effective mobilization of human resources through good

training and development policies and programme does not

lead to increased productivity.

H1: Effective mobilization of human resources through good

training and development policies and programme leads to

increased productivity.

OPTION NUMBER OF RESPONDENT

PERCENTAGE (%)

Yes

Not sure

No

115

30

-

79

21

-

Total 145 100

50

This is tested using chi-square as shown.

0 E 0-E (O-E)2 (O-E)2

E

115 72.5 42.5 1806.3 24.92

30 72.5 -42.5 1806.3 24.92

TOTAL 49.84

1. The chosen level of significance is 5% (0.05).

2. The critical value from the table choose at 5 % level of

significance is 1.65.

3. Decision rule. If the calculated value is greater than the

critical or tabulated value, reject Ho, and accept H1.

The tabulated is 1.65 and the calculated is 49.84. Therefore,

based on the rule, the researcher rejects the Null hypotheses

(Ho) and accepts the Alternate Hypotheses (H1). This means

that through mobilization of human resources through good

training and development programme and policies, lead to

increased productivity.

HYPOTHESES TWO

51

H1: Conscious and effective manpower planning aids in

achieving the long-term goal of an organization.

OPTION NUMBER OF RESPONDENT

PERCENTAGE (%)

Yes

No

Not sure

119

16

10

82

11

7

Total 145 100

CHI – SQUARE TEST

0 E 0-E (O-E)2 (O-E)2

E

119 48.3 70.7 4998.5 103.5

16 48.3 -32.3 1043.3 21.60

10 48.3 -38.3 1,466.9 30.37

TOTAL 155.47

The tabulated value is 1.65 and the calculated value is

155.47. Therefore, the researcher rejects HO and accepts H1.

By this it means “Conscious and effective manpower

planning aids in achieving the long-term goal of an

organization.

52

CHAPTER FIVE

SUMMARY OF FINDINGS, RECOMMENDATIONS AND

CONCLUSIONS

5.1 SUMMARY OF FINDINGS

The study aimed at finding out whether or not human

resource practices has played an important role in small

business. The study also aimed at finding out if human

resources are practiced in the management of small business

and the various practices management employ in running

the small scale business.

From the result of the study we find out that most

organizations neglect human resource practices and are not

giving room to operate.

5.2 CONCLUSION

The research finding shows that training and development,

man power planning and management – labour relationships

53

play a very important role in management of small – scale

businesses.

5.2 CONCLUSION

The research finding shows that training and Development,

man power planning and management - labor relationships

play a very important role in management of small-scale

businesses.

5.3 RECOMMENDATION

Organizations should intensify efforts in the training

and development of employees. Employees should be seen as

investments worth investing in and not liabilities. The idea is

to make employees a force that contributes to the company‟s

competitive advantage.

The researcher also recommends that organizations

should encourage innovation, creativity and a holistic

organization perspective, quoting Derek Torrington and

Laura Hill (Human Resources Management, 4th edition 1998).

According to Jeff Nuorio, a United State-based human

resource expert, “employees who are encouraged to create

54

and not merely produce make for a more powerful workforce

and as a result, a more effective company”.

Management should give free hands to human resource

department to operate and should not interfere in its

activities such as staff appraisal, selection and recruitment

55

REFERENCES

Buckley, Jard Kemp, N(1997) “ the strategic role of management development, Management Education and Development vol.18 pt 3, pp 157-74

Journals of Management Education and Development (1994)

“Anticipatory learning: learning for the twenty-first century,‟ vol12, no6.

Watkins, J. (2000) “management development policy in a fast

changing environment: the case of a public sector service organization,”

Management Education and Development, vol18, pt3, Pp 181-93.

Raskas, D.F and Hambrick, D.C (1994) “Multi functional Management the Options Organizational Dynamics, vol. 21.

Autumn.

56

BIBLIOGRATPHY

Armstrong, Michael (2001) “Personal Management Practices” 2nd edition, Macmillan book company, New York.

Asika, Nnamdi (1991) “Research Methodology in the Behavioral Sciences” Longman Publication.

Iyania, O. (1992) Activating the potentials of management in Nigeria, Management in Nigeria October – December, Vol.28 No. 4, (pp.a).

John A. Ezeh (1999) “Fundamental of small Business Management”. University of Nigeria

Nwaoki .C. (2001)”Reasons for the predominance of small firms in Nigeria, Business Times, Monday, Nov7

Obisi C (1999) “personnel Management”. Freeman Production. Helman, C. (2001) Culture, Health and Illness Newstrom N. John (1990) “Evaluating the Effectiveness of

Training Methods”. Personnel Administrator.

Lawler D.J (2009) “Organizational Behaviour. The Psychology of Effective Management”. New Jersey, Prentice Hall

luston, J.T (2003)”Industrial Relation System”. New York, Hull.

57

QUESTIONNAIRE

Department of Management University of Nigeria Enugu Campus.

Dear Respondent,

The questionnaire is designed to help the researcher analyze

the ROLE OF HUMAN RESOURCES PRACTICES IN

EFFECTIVE MANAGEMENT OF SMALL SCALE

ENTERPRISES. It will be highly appreciated if you could

complete the questionnaire as best as you can. Please you

are assured that the information is purely for academic

purposes and would be treated with utmost confidentiality.

Yours faithfully,

Ijeoma Emesiani

58

PART A

Sex (a) Male (b) Female

Age (a) 20-29 (b) 30-39

(c) 40-49 (d) 50-59

(c) 60-69 (f) above 69

Education attainment (a) primary Education

(b) Secondary Education (c) tertiary Education

(d) No Formal Educational

PART B

1. Do you think effective human resources is practiced in

your Organization? (a) Yes (b) No (c) Not sure

2. Is human resource department in your organization

given free hand to operate? (a) Yes (b) No

(c) Not sure

3. In your opinion is your appraisal process fair? (a) Yes

(b) No (c) Not sure

4. Is appropriate training giving to staff? (a) Yes (b) No

(c) Not sure

5. Does effective Human resource practice staff? (a) Yes

(b) No (c) Not sure

59

6. Does Effective Manpower Planning help in achieving

result to your best knowledge? (a) Yes (b) No

(c) Not sure

7. Do you think that human resource if practiced would

improve productivity? (a) Yes (b) No

(c) Not sure

8. Appraisal to the staff does it have any positive effect on

performance of the employee (a) Yes (b) No

(c) Not sure