Post on 24-Jun-2020
University of Nigeria Research Publications
ODUCHE ,Ebele. P
Aut
hor
PG/MBA/03/37245
Title
The Application of Strategic Human Resources Management (SHRM) in the Banking Industry.( A
Study of First Bank of Nigeria PLC and United Bank for Africa Group PLC)
Facu
lty
Business Administration
Dep
artm
ent
Management
Dat
e
June, 2006
Sign
atur
e
THE APPLICATION OF STRATEGIC HUMAN RESOURCES MANAGEMENT (SHRM) I N THE BANKING INDUSTRY.
A STUDY OF FIRST BANK OF NIGERIA PLC AND UNITED BANK FOR AFRICA GROUP PLC.
PRESENTED BY
ODUCHE, EBELE P. PG/MBA/03/37245
A PROJECT REPORT SUBMITTED I N PARTI, FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD
OF MASTERS OF BUSINESS ADMINISTRATION DEGREE I N MANAGEMENT.
DEPARTMENT OF MANAGEMENT FACULTY OF BUSINESS ADMINISTRATION
UNIVERSITY OF NIGERIA, ENUGU CAMPUS.
b
TITLE PAGE
THE APPLICATION OF STRATEGIC HUMAN RESOURCES
MANAGEMENT (SHRM) I N THE BANKING INDUSTRY
A STUDY OF FIRST, BANK OF NIGERIA PLC AND UNITED
BANK FOR AFRICA GROUP PLC.
CERTIFICATION
ODUCHE, EBELE P., a postgraduate student in the department of
Management with the registration number PG/MBA/03/37245, has
satisfactorily completed the requirements for the course and research work
for the Degree of Masters of Business Administration (MBA) in
Management.
~ j & e project report is an embodiment of original work and has not been 1 submitted in part or full any other Diploma or Degree of this or any other
University.
or. 1 . 3 . ~ Ewurum Hea of Department
DEDICATION
This research work is dedicated to my heavenly Father, who has been my
help in ages past and also to my dearly beloved parents Ven & Mrs K.1
Oduche (Rtd) for their love, support and encouragement throughout the
course of this work.
I give \hai~l,:s to God AlmiglW, tllc founbin of all knowledge and the
source of all wisdom for His guidance throughout the period of this course.
I would also like to recognize and acknowledge the contributions of the
following to the success of this work. First and foremost to my Supervisor
Dr. U.J.F. Ewurum, for his valuable suggestions and constructive criticisms
that brought the best out of me. To my project guardian, Mr. Stanley Uzoh,
for his encouragement and assirt ,, ance.
My special thanks goes to all First Bank of Nigeria PIC (FBN) and United
Bank for Africa PIC staff for giving me access to information and responding
to my structured interviews and questionnaires.
I am also indebted to the University of Nigeria Enugu Campus (UNEC) and
the Institute of Chartered Accountants (ICAN) for allowing me to make use
of the books and materials in their libraries.
I also had the support and words of encouragement from my friends and
well - wishers, which include, Chinwe Anyaegbunam, Ngozi and Uzoma to
name a few.
Finally my special thanks go to my dearly beloved siblings, Mrs. Chi-Chi b
Oguine, Mrs. Ogo '~adumere, Engr. K.C Oduche, Mr. Okey Oduche and
Barr: Chinwe Oduche for their love and support. I want to say that I am
really very proud of 'you all.
ODUCHE EBELE P.
JUNE 2006
IV
T d k 4:l
-PaI~le 4:2
Table 4.3
Table 4.4
Table 4.5
Table 4.6.
Table 4.7
Table 4.8.
Table 4.9
Sex and age dirtrlbu'ion of respondents
Total number of respondents
Understanding of SHRM
Are you aware of the presence of SHRM in your
bank?
Have you observed any form of link between HR
and the strategic goals and objectives of the bank?
HR Management can play a role in environment
scanning that is, identifying and analyzing external
opportunity and threats that may be crucial to the
company's success.
The strengths and weaknesses of your bank's HR
can have a determining effect on the viability of the
bank's strategic options.
Do you believe that SHRM acti~vities contribute to
the achievement of business objectives?
SHRM activities contributions towards the
attainment of overall corporate goals and
objectives.
Table 4.10. Does the relevant officialslmanagement team in
b your Bank recognize SHRM as a veritable
instrument in the achievement of business
. objectives?
Table 4.11 How effectively, efficiently and adequately have e
SHRM been applied in achieving overall business
objectives?
Table 4.12 To what extent has the applied SHRM yielding or is
yielding result in respect to its main objecti~ves?
Table 4,13. Has the application of SHRM in any way made
positive impact in your bank activities?
Table 4.14. The extent of the impact made by the application of
SHRM.
Table 4.15. What factors are responsible for the non-application
or ineffective application of SHRM in the banking
sector?
. ABSTRACT
This is a research project carried out to evaluate the extent of the
application of Strategic Human Resources Management (SHRM) in the
banking industry.
A sample size of 200 respondents all selected from First Bank of Nigeria PIC
and United Bank for Africa Group PCC was used in this study. Both primary
and secondary data were collected and analyzed using questionnaires and
related books on the subject matter.
The researcher based on the data collected and analyzed, found out that:
o SHRM activities contribute to the achievement of business objectives.
o Majority of the relevant officers and management team in the banks
understands what SHRM is all about, and they also recognize is as a
veritable instrument in the achievement of business objectives,
however, they have not been able to effectively and efficiently apply
it in the achievement of business objectives.
o SHRM so far applied have yielded or yields great results.
However, the researcher recommends that SHRM should be efficiently,
effectively and adequately applied. I n other words, there should be
strict/timely adherence to the formulated strategies.
Since strategic management is an on-going process, efforts should be
made to constantly review, revise and evaluate strategies formulated to
reflect current trends. I n other words SHRM should not be viewed as static.
vii
Hence,. mere knowledge of SHRM is not enough, but it's effective and
efficient applicati'on is what counts. Therefore managers and responsible
officers should not just be satisfied with the head knowledge of SHRM, but
should be majorly concerned with its application. This is important as this
will enable them reap the benefits associated with the application.
Viii
........... STRATEGIC HUMAN RESOURCES MANAGEMENT 7
PROFILE OF CASE ORGANIZATIONS ............................. 8
........................................ FIRST BANK OF NIGERIA PLC
.......................... UNITED BANK FOR AFRICA PLC (UBA) 9
REFERENCE .................................................................... 11
CHAPTER TWO
REVIEW OF RELATED LITERATURE ............................... 12
INTRODUCnON ............................................................ 12
HUMAN RESOURCES MANAGEMENT ............................ 12
THE ACTIVITIES OF HUMAN RESOURCES MANAGEMENT 13
HUMAN RESOURCES MANAGEMENT ROLES AND POLICIES 15
THE STRATEGIC MANAGEMENT PROCESS ..................... 15
STRATEGIC MANAGEMENT AN ONGOING PROCESS ...... 18
THE CHARACTERISTICS OF STRATEGIC DECISIONS ...... 19
........... THE FIVE TASKS OF STRATEGIC MANAGEMENT 20
THE BENEFITS OF A STRATEGIC APPROACH TO MANAGING ............................ ............ ................................ 20
AN OVERVIEW OF STRATEGIC HUMAN RESOURCES MANAGEMENT (SHRM) ....................................................... 2 1
2.6.1 THE REALITY OF HR STRATEGY ........................................ 24
. 2.7 THE BENEFITS OF STRATEGIC HUMAN RESOURCES ........ 25
2.8 THE CHALLENGES OF STRATEGIC HUMAN RESOURCES ... 28
2.9 STRATEGIC HUMAN RESOURCES MANAGEMENT MODELS 30
2.9.1 THE MATCHING STRATEGIC HUMAN RESOURCES MODEL 30
2.9.2 THE RESOURCE - BASED MODEL ....................................... 34
2.10 DIMENSIONS OF STRATEGIC HUMAN RESOURCES MANAGEMENT .............................................................. 37
.............................................................................. SUMMARY 43
REFERENCE ........................................................................ 44
CHAPTER THREE
RESEARCH METHODOLOGY ................................................... 48
RESEARCH METHOD ............................................................. 48
METHOD AND SOURCE OF DATA COLLECTION .................. 48
QUESTIONAIRE DESIGN ........................ ................ .............. 49
INTERVIEW METHOD .......................................................... 49
LIBRARIES ........................................................................... 50 b
THE POPULATION FOR THE STUDY .................................. 50
0
3.7 PROCEDURE FOR DATA GATHERING ................... .. ........ 50
3.8 VALIDITY AND RELIABILITY OF DATA INSTRUMENT ...... 50
3.9 DETERMINATION OF SAMPLE SIZE ................................... 5 1
3.10 METHOD OF DATA ANALYSIS ............................................ 52
REFERENCE .................................................................... 53
CHAPTER FOUR
4.0 ANALYSIS AND INTERPRETATION OF DATA ...................... 54
................................... 4. 1 QUESTIONAIRE ADMINISTRATION 54
4.2 RESEARCH INFORMATION ................................................ 56
CHAPTER FIVE
5 . 0 SUMMARY OF FINDINGS. RECOMMENDATIONS AND CONCLUSIONS ............................................................ 67
5.1 SUMMARY OF FINDINGS .................................................... 67
5.2 RECOMMENDATIONS ......................................................... 68
5.3 CONCLUSION ...................................................................... 69
5.4 . AREAS FOR FURTHER RESEARCH ..................................... 69
BIBLIOGRAPHY ............................................................... 7 1 0
APPENDIX
xii
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Strategic Human Resources Management (SHRM) is concerned
with the contributions human resource strategies make to
organizational effectiveness, and the ways in which these
contributions are achieved. (Jeff Ericksen, Lee Dyer: 2004).
Therefore, the aim of Strategic Human Resources Management is
to ensure that the culture, style and structure of the organization
and the quality, commitment and motivation of its employees,
contribute fully to the achievements of business objectives.
~ccording to Michael Armstrong: 1992, a strategic orientation is a
vital ingredient in human resource management. It provides the
framework within which a coherent approach can be developed to
the creation and installation of Human Resources Management
policies, systems and practices.
Strategic Human Resources means accepting the HR function as a
strategic partner in the formulation of the company's strategies as
well as in the implementation of those strategies through HR
activities, such as recruiting, selecting, training and rewarding
personnel. Whereas Strategic HR recognizes HR's partnership role
in the strategizing process, the term HR strategies refers to specific
HR courses of action the company plans to pursue to achieve its
aims. (Siddharth Chaturvedi, 2002).
By design, the perspective demands that HR managers become
strategic partners in business operations playing prospective roles 1
rather than being passive administrators reacting to the 0
requirements of other business functions. According to Siddharth
Chaturvedi:' 2002, Straegic HR manages need a change in their
mindset from seeing themselves as relationship managers to
resource managers knowing how to utilize the full potential of their
human resources. HR professionals become strategic partners
when they participate in the process of defining business strategy,
when they ask questions that move strategy to action and when
they design HR practices that align with the business strategy. By
fulfilling this role, HR professionals increase the capacity of a
business to execute its strategies.
In the modern business scenario, HR has to practice and HR
professionals should identify the potential of multiskilling their
resout-ces. the new HR role is to viewed from the strategic
perspective wherein HR plays an important and vital role whilst
designing and delivering the HR strategy for the organization the
approach of HR planning activity is no more in isolation but very
much aligned to the strategy of the organization as a whole.
Delivering a strategic impact, the HR strategy needs to be in sync
with the business objectives and the systems and processes
incorporated must also support, demonstrating the required
results.
Siddharth further stated that HR management is in a unique
position to supply competitive intelligence that may be useful in
the strateyjc planning process. HR also participates in the strategy
formulation process by supplying information regarding the
company's internal strengths and weaknesses.
1.2 STATEMENT OF PROBLEM
All scientific research is necessitated by a perceived problem. As
such the desire and quest to set out and research on this topic - "The Application of Strategic Human Resources Management in the
Banking Industry" was aroused.
I n other words, it is implied by the mandate of this research
project that Strategic Human Resources Management approach is
being adopted in the banking industry. But there is more to this,
which is determining the extent at which this strategic approach
have been applied and appreciated by the industry, as well as
determining the resultant effects. Until this is done, there cannot
be a genuine conviction and affirmation that all efforts put in place
for the realization and actualization of such strategies can achieve
the set objectives.
As earlier stated, Strategic Human Resources Management is
aimed a t ensuring that the culture, style and structure of the
organization and the quality, commitment and motivation of its
employees, contribute fully to the achievement of business
objectives. Hence determining the extent to which these aims are
achieved is dso of paramount importance.
b
1.3 OBJECTIVES OF THE STUDY
The researsher has the following stated objectives as a focus to
illuminating the Application of Strategic Human Resources
Management as a tool for improving business performance in the
banking industry. 3
0
To appraise how SHRM activities contribute to the achievement
of business objectives as well as assessing the extent at which it
is being recognized in the banking industry.
To determine the extent of the application of SHRM in the
banking industry.
To determine the extent at which the applied SHRM has yielded
or is yielding result in respect of its purpose of application.
To ascertain whether the application of SHRM has in any way
made impact in the banks' activities.
Consequently, the following Research questions are
poised:
u Do SHRM activities contribute fully to the achievement of the
business objectives?
o Is SHRM recognized as a veritable instrument in attaining the
business objectives in the banking industry? 0
How effectively, efficiently and adequately has SHRM been
applied in the banking industry? b
u To what extent has the applied SHRM yielded or is yielding
result in respect of its main objectives?
u Has the application of SHRM in any way made any impact in the
banking industry? 4
1.4 SIGNIFICANCE OF THE STUDY
The research features a study of two commercial banks. It will
evaluate the central trends peculiar to the application of SHRM in
the two banks.
The significance of this study cannot be overestimated. I t is
significant because data so generated from the study is sufficient
to expand further fields of knowledge of this topic from many other
dimensions. The study also presents sufficient challenges to
academics to increase their research interests in the field of
knowledge.
Subsequently, business ,organizations in general and the banking
industry in particular will benefit from this study in that they will
learn more about the implications of proper application of SHRM, in
order to improve business performance, which will be beneficial in
the following ways:
Firstly they will be able to easily adapt to change as the time from
the conception to the execution of a strategy is shortened owing to
the translation of business strategies into HR practices, which is
the essence of SHRM.
*Secondly, they will be able to better meet customer's demand, as
its customer's service strategies have been translated into specific
policies and practices.
Thirdly, they will be able to achieve better financial performance
through its more effective execution of strategy. F
0
1.5 DEFINITION OF TERMS
15.1 STRATEGY
The word "Strategy" was first used in English in 1656 and comes
from the Greek noun 'Strategus'; meaning "Commander in Chief".
The development and usage of the word suggests that it is
composed of Stratos (army) and Agein (to lead) and in its military
context means "to produce large - scale operations. (Aktouf, 1996,
cited from John Bratton & Jeffrey Gold 1999)
In business circles, strategy is adapted to mean "a general
programme of action and a deployment of emphasis and resources
towards the attainment of comprehensive objectives (Koontz and
OtDonnell, 1976, cited from Ezeh and Onudugo, 2002). It is a
"grand design" deployed by an organization towards the realization
of its goals. While the goals and objectives indicate where an
organization is going, strategy clarifies the "how" of how to get the
organization there. (Fubara 1999, Onudugo 2000, cited from Ezeh
and Onudugo, 2002).
According to Alan Price, 1997, " a strategy is the means by which
an orgariization seeks to meet its objectives. It is a deliberate
choice, a decision to take a course of action rather than reacting to
circumstances. It focuses on significant long - term goals rather
than day - to - day operating matters.
1.5.2 H i M A N RESOURCES MANAGEMENT . This is the process of accomplishing organisational objectives by
acquiring, retaining, terminating, developing and properly using
human resource in an organisation. The acquisition involves
retaining, screening, selecting and placing personnel. It includes all
the activities that managers engage in to attract and retain
employees and to ensure that they perform at a high tevei and
contribute to the accomplishment of organisational goals. (John
Bratton and Jeffrey Gold, 1999).
1.5.3 STRATEGIC HUMAN RESOURCES MANAGEMENT (SHRM)
SHRM has been defined as "the linking of human resources with
strategic goals and objective in order to improve business
performance and develop organisational culture that foster
innovation and flexibility". Strategic HR means accepting the HR
function as a strategic partner in the formulation of the company's
strategies as well as in the implementation of those
Strategies through HR activities such as recruiting, selecting,
training and rewarding personnel. (Siddharth Chaturvedi, 2002).
1.6 PROFILE OF CASE ORGANISATIONS
1.6.1 FIRST BANK OF NIGERIA PLC:
First Bank of Nigeria PLC, for over a century has distinguished itself
as a leading banking institution and a major contributor to the
economic advancement and development of Nigeria.
Founded in 1894 by a shipping magnate from Liverpool, Sir Alfred
Jones, the Bank commercial as a small operation in the office of
Elder Dempster and Company in Lagos.
e
Currently with 358 branches spread throughout the Federation, the
Bank maintains the largest branch network in the industry.
To satisfy the needs of its customers, First Bank has diversified into
a wide range of banking activities and services. These include
Corporate, Retail and Mortgage Banking, Registrarship, Private
Equity Financing, Trusteeship and Insurance Brokerage. In
addition, as part of it's strategy of progressive internationalization
in November 2002, the Bank became the first financial institution in
Nigeria to establish a subsidiary bank in the United kingdom.
The Bank has continued to be a leader financing long-tern
development of the economy, which was demonstrated in 1947
when the first long-term loan was advanced to the then
Government.
The Bank has improved tremendously judging from a number of
parameters including number of branches, growth in deposit base,
asset size and size of loans and advances.
Furthermore, its track record of profitability and reliability in sound
banking has continually placed the Bank in its leadership position.
InJine with its mission statement "remain true to our name by
providing the best financial services possible", the Bank will
consistently transform itself as it forges ahead in its second century
of qualitative banking to the nation.
1.62 UNITED BANK FOR AFRICA PLC (UBA)
United Bank for Africa PLC (UBA) is a Public Limited Company
incorporated and licensed to do the business of banking under the
laws of Nigeria. UBA with its subsidiaries is one of the leading and
oldest financial services groups Nigeria and sub-Saharan Africa.
UBAts vision is "to be the undisputed leading and dominant full
service bank in Nigeria" and the mission is "to provide first class
service to our customers, delivered by well trained and highly
motivated people aided by the best technology, while generating
superior returns to our shareholders and positively impacting the
communities served".
UBA1s legacy includes:
t~ The first Bank to be listed on the Nigerian Stock Exchange.
D The first Nigerian bank to open a branch in the United States of
America.
The first and the only Nigerian bank to issue Global Depository
Receipt (GDR), which makes its shares easily accessible and
tradable to institutional investors internationally.
o The first Nigerian bank to establish a branch on a university
campus.
With over 250 outlets across Nigeria as well as two outlets across
Nigeria as well two outlets in New York and Grand layman Island,
UBA has become one of the leading international banks in Africa 9
and poised more than ever before to bring banking services closer 0
to its numerous customers.
United Bank for Africa provides a wide range of financial services
to individuals, national and multinational companies, multilateral
institutions, Governments and non - governmental organisations
as well as small and medium scale businesses. These include retail,
investment and wholesale services.
Services are enhanced through the application of cutting edge
technology and simplified .processes by well trained, competent
and highly efficient personnel of the transaction-banking group.
REFERENCES: 0
I. Alan Price (1997): "Human Resource Management
in a Business Context.
Int'l Thomson Business Press
(website)
2. Bratton I, Gold I. (1999): "Human Resource Management,
Theory and Practice
Macmillan Press Ltd. (USA)
3. Chaturvedi Siddharth (2OOZ):"Strategic Human Resource
Management", Article in the website
4. Ericksen I, Dyer L. (2004): "Toward a Strategic Human
Resource Management Model of High
Reliability Organisation Performance".
School of Industrial and Labour
Relations (ILR) Cornell University.
N.Y.
5. Ezeh LA, Onudugo V. (2002): "Business Policy and Strategic
Management, 1:ssues and Trends.
b Kinsmann Publishers, Enugu.
CHAPTER TWO
2.0 REVIEW OF THE RELATED LITERATURE
2.1 INTRODUCTION
I n any study, such as this, it is always imperative to critically
review written opinion of other people, materials and texts that
have relevance and reference to the topic of discussion. This
chapter therefore, is aimed at reviewing some of the most
important literature on the topic "The application of strategic
Human Resource Management in the Banking Industry".
However, before this is carried out, the research will attempt to
carry out a conceptual overview of Human Resources Management
and Strategic Management process, as well its characteristics. This
will enable us to understand the real concept of human resources
and strategic management, before reviewing Strategic Human
Resources Management and analyzing its benefits, challenges,
processes, models and dimensions.
2.2 HUMAN RESOURCES MANAGEMENT
Availability of resources is a vital need for the survival of any
hu-man venture. These include human, material and financial
resources, which are very useful in the production chain. Out of all
these resources, the human component appears to be the most
vital. This is because human beings articulate and activate other
resources. I n the economy of nations human beings constitute a
very essential aspect of growth and development. '
Generally speaking, the importance of human resources in
organization cannot be over emphasized because human beings 12
are responsible for the overall management and image of the . organization.
Fredrick Harbison (1973, p,3.) defined HR as the energies, skills
and knowledae of people which are or which potentially can or
should be applied to the production of goods and services.
Beer and Spector (1985) emphasized new set of assumptions in
shaping the meaning of HRM. These include:
Proactive system wide interventions, with emphasis on a fit
linking HRM with strategic planning and cultural change.
People are social capital capable of development.
Coincidence of interest between stakeholders can be
developed.
Seeks power equalization for trust and collaboration.
Open channels of communication to build trust and
commitment.
Goal orientation.
Participation and informed choice.
2.2.1 THE ACnVITIES OF HRM
Intense competition pressures organizations to carefully examine
their costs and to explode every possible source of competitive
advantage. Whether the organization is facing increasing
.international competitive or simply more intense pressure to
improve the bottom line, HR has a great opportunity to meet new
and old chgllenges as a business partner. The HR function must
become a partner in developing an organization's strategic plan,
for human resources are a key consideration in determining
strategies that are both practical and feasible. (Lawler 111, E.E, and 13
Mohrman S.A (1997) cited from H. John Bernardin, et all 1998). . This HR partnership must evolve out of the major activities of the
HR function.
Increasingly in both UK and Europe at the beginning of the new
millennium, successful organizations are tying HRM closely to the
fundamental business practices that manage the rest of their
activities. Thankfully, the days when personnel management was
an administrative after thought are largely gone, although the
nature of the function will depend on the type of business it sits in,
the size and complexity of the business activity and the culture and
traditions of the organization.
The largest private and commercial organization will usually have 2
Human Resources Director on its main Board either as a stand-
alone role or as part of a broader Resources directorate or
function. The Director will in turn manage a large and often
powerful function deeply with every aspect of people management
from 'Hiring to firing". In this kind of organization, HRM is at the
center of business decision making; the Managing Director or Chief
Executive will work closely with the HR Director on key business
decisions involving him or her at the outset of policy - formulation,
not as an afterthought, or only to be included when things go
wrong. This is the essence of Strategic Human Resources
Management, and it will be found in major UK and European
companies from Ford to ICL, from Virgin to Marks and Spencer. To
justify its e~istence, this branch of management requires more
than just effective management of a collection of HR related
functions. I n business jargon, it needs to be seen to be "adding
value" to the organization's bottom line, its profitability or 14
effectiveness. I t is highly influential in affecting key business 0
decisions and forming strategies about new products and markets.
It helps secure HR in the right quantity and of the right calibre to
bring these strategies to function. It provides effective in- house
management and regulation of the resources so that they are
nurtured and developed and most importantly retained within the
organization.
2.2.2 HRM ROLES AND POLICIES
I n general, line managers will perform the day-to-day management
activities, with activities requiring specialist knowledge and
expertise conducted by consultants. HRM directors formulate the
overall HR strategy and ensure that HR policies are created to
implement it.
Human resources management policies provide guidelines on what
should be done within the organization and define rules of
behaviour. Policies are therefore, very important in establishing the
ground rules on how members of the organization conduct
themselves. Policies also help ensure consistency and fairness of
treatment for all. They form a framework within which all members
of .the organization operate.
Policies can be formulated for many areas but most organizations
Will have a general HRM policy stating the attitude of the
organization to the people it employs.
. 2.3 THE STRATEGIC MANAGEMENT PROCESS
Strategy is grounded in the array of competitive moves and
business approaches management depends on to produce 15
successful performance. Strategy in effect, is management game 0
plan for strengthening the organization's position, pleasing
customers and achieving performance targets. Managers devise
strategies to guide how the company's business will be conducted
and to help them make seasoned, cohesive choices among
alternative courses of action. The strategy Managers decision
indicates that "among all the paths and actions we could have
chosen, we decided to follow this route and conduct our business
in this manner". Without a strategy, a manager has no thought out
course to follow, no roadmap to manage by, no unified action
program to produce the intended results. (Arthur A. Thompson et
al 1996.)
Management's game plan involves every major function and
department - purchasing, ,production, finance, marketing, Human
Resources, R & D. Each has a role in the strategy. The strategy
making challenge is to mold business decisions and competitive
actions taken across the company into a cohesive pattern. The
prevailing pattern of moves and approaches indicates what the
current strategy is: new moves and approaches under
consideration signal how the current strategy may be embellished
or recast.
It is pertinent to note that the ultimate end of strategy is to make
a firm survive in the face of competition and change. b
According to Authur A. Thompson et al, ibid 1996, crafting and
implementing strategy are core management functions. Among the
entire things managers do, few affect company performance more
fundamentally than how well its management team charts the
company's long-term direction, develops competitively effective 16
strategic moves and business approaches and execute the strategy
in ways that produce the targeted results. Indeed, good strategy
and good strategy execution are the most trustworthy signs of
good 'management.
There's a strong case for linking "good management" to how well
managers craft and execute strategy. Managers must combine
good strategy-making with good strategy execution for company
performance to approach maximum potential. The better
conceived a company's strategy and the more proficient its
execution, the greater the chance the company will be a solid
performer. Powerful execution of a powerful strategy is not only a
power recipe for business success but also the test of excellent
management.
The existence of strategy enables a systematic approach to be
made so that the strengths of the business can be used to the
greatest possible advantage, (Akinola E.0, 2000)
According to Kaplan Robert S., et al, 2001, the strategic planning
process should use initiatives to help the organization its
strategic objective not as ends in themselves.
Developing and implementing a strategy that allows managers to
exercise more control over the firm's direction and to chart a
course that enhances the firm's performance are the objective of
strategic management. (Garth S. et al, 2001)
Strategic planning as defined by Mathis Robert L. et all 1994 is the 0
process of identifying organization objective and the actions
needed to achieve those objectives.
2.3.1 STRATEGIC MANAGEMENT AN ONGOING PROCESS.
The new term strategic management comes to replace to old
nomenclature of strategic formulation by recognizing that in
addition to formulating strategies one has to implement, evaluate
and as a result dictate, change strategies on a continuous basic.
Strategic management can be seen as the process by which top
management determine the long-run performance of the
organization by ensuring careful formulation, proper
implementation and continuous evaluation of the strategy.
The additive, which the suffix "management" brought to the
vocabulary. of strategy formulation, is the issue of continuity. It
came to underscore the fact that strategy formulation is not a one-
short event rather it is a series of event which ensure that the
organization remains focused amidst change and competition. It
brings all the managerial functions of planning organizing, directing
and controlling to bear on the design and Implementation of
strategy. (Arthur A. Thompson et all ibid 1996.)
According to Hitt Michael A. et all 1999, the pursuit of
competitiveness is at the heart of strategic management and the
choices made when designing and using the Strategic Management
process. Firms are in competition with one another- to gain access
to the resources needed to earn above average returns and to
provide superior satisfaction of stakeholders' needs. Effective use
of the inter dependent parts of the strategic management process 18
results in selecting the direction the firm will pursue and its choices . to achieve the desired outcomes of strategic competitiveness and
above-average returns.
The strategic Management is intended to be a rational approach to
help a firm respond effectively to the challenges of the new
competitive landscape. This process calls for a firm to study it's
external and internal environments to identify its marketplace
opportunities and threats and determine how to use its core
competencies in the pursuit of desired strategic outcomes. With
this knowledge, the firms form its strategic intent so it can
leverage its resources, capabilities, and core competencies and win
battles in the global economy.
A firm's strategic inputs provide the foundation for its strategic
actions to formulate and implement strategies. As strategic actions,
both formulation and implementation are critical to achieving
strategic competitiveness and earning above- average returns.
Gb
2.4 THE CHARACTERISIICS OF STRATEGIC DECISIONS
Gerry Johnson, et all 1984 specifically enumerated the
characteristics usually associated with the words "strakyy and
"strategy decisions. These are:
Strategic decisions are likely to be concerned with or affect
the long-term direction of an organization.
Strategic decisions are normally about trying to achieve some
advantage for the organization.
Strategic decisions are likely to be concerned with the scope
of organization's activities.
Strategy can be seen as the matching of the activities of an organization to the environment in which it operates.
19
. 2.4.1 THE FIVE TASKS OF STRATEGIC MANAGEMENT
According to Arthur A. Thompson, et all ibid, the strategy-making,
strategy-implementing process consists of five interrelated
managerial tasks namely:
I. Forming a strategic vision of what the company's future
business make up will be and where the organization is
headed - so as to provide long-term direction, delineate what
kind of enterprise the company is trying to become, and
infuse the organization with a sense of purposeful action.
2. Setting objectives - converting the strategic vision into
specific performance outcomes for the company to achieve.
3. Crafting a strategy to achieve the desired outcomes.
4. Implementing and ,executing the chosen strategy efficiently
and effectively.
5. Evaluating performance and initiating corrective adjustment
in vision, long term direction, objectives, strategy, or
implementation in light of actual experience, changing
conditions, new ideas and new opportunities.
2.5 THE BENEFITS OF A STRATEGIC APPROACH TO MANAGING
The advantage of first-rate strategic thinking and conscious
strategy management (as opposed to freewheeling improvisation,
gut feel and hoping for luck) as stated by Arthur A. Thompson, et
el, ibid, include:
I. Providing better guidance to the entire organization on the
crucial point of "what it is we are trying to do and achieve".
2. Making more managers more alert to the winds of change,
new opportunities and threatening developments.
3. Providing managers with a rationale for evaluating
competing budget requests for investment capital and new
staff - a rationale that argues strongly for steering resources
into strategy - supportive, results - producing areas.
4. Helping to unify the numerous strategy-related decisions by
managers across the organization.
5. Creating a more proactive management posture and
counteracting tendencies for decision to be reactive and
defensive.
The advantage of being proactive is that trial blazing strategies can
be the key to better long-term performance.
2.6 AN OVERVIEW OF STRATEGIC HUMAN RESOURCES
MANAGEMENT (SHRMI.
I n today's intensely competitive and global marketplace
maintaining a competitive advantage by becoming a low cost
leader or a differentiator puts a heavy premium on having a highly
committed or competent workforce. Competitive advantage lies not
just in differentiating a product or service or in becoming the low
cost leader but in also being able to tap the company's special
skills or core competencies and rapidly respond to customer's
needs and competitor's moves. I n other words, competitive
advantage lies in management's ability to consolidate corporate-
wide technologies and production skills into competencies that
empower individual businesses to adapt quickly to changing
opportunities. (Siddharth Chaturvedi, 2002).
I n a growing number of organizations, human resources are now
viewed as a source of competitive advantage. There is greater
recognition that distinctive competencies are obtained through
highly developed employee skills, distinctive organizational
cultures, management processes and systems. This is in contract
to the traditional emphasis on transferable resources such as
equipment. Increasingly, it is being recognized that competitive
advantage can be obtained with a high quality workforce that
enables organizations to compete on the basis of market
responsiveness, product and service quality, differentiated
products and technological innovation.
SHRM as previously defined is the linking of human resources with
strategic goals and objectives in order to improve business
performance and develop organizational culture that foster
innovation and flexibility. Hence strategic HR means accepting the
HR function as a strategic partner in the formulation of the
company's strategies, as well as in the implementation of those
strategies through HR activities such as recruiting, selecting,
training and rewarding personnel.
HR management can play a role in environmental scanning i.e.
identifying and analyzing external opportunities and threats that
may be crucial to the company's success, as further stated by
Siddh'arth Chaturvedi. Similarly HR management is in a unique
position to supply competitive intelligence that may be useful in
the strategis planning process. HR also participates in the strategy
formulation process by supplying information regarding the
company's internal strengths and weaknesses. He noted that the
strengths and weaknesses of a company's human resources can
have a determining effect on the viability of the firm's strategic 0
options.
Siddharth Chatuvedi further stated that the new HR role is to be
viewed from the strategic perspective wherein HR plays an
important and vital role whilst designing and delivering the HR
strategy for the organization. The approach of HR planning activity
is no more in isolation but very much aligned to the strategy of the
organization as a whole. Delivering a strategic impact, the HR
strategy needs to be in sync with business objectives and the
systems and processes incorporated must also support,
demonstrating the required results. . . - 7_:i~y' 4 . 4 , ~ $
. .
.'-"Qp,Fy
According to Bowey (1974) strictly defined, manpower planning is
the activity of management, which is aimed at coordinating the
requirements for, and the availability of, different types of
employee. Usually this involves ensuring that the firm has enough
of the right kind of labour at such times as it is needed. It may also
involve adjusting the requirements to the available supply.
Human Resources planning can also be viewed as the process of
setting human resources goals, devising and implementing
programme of action to achieve such goals and evaluating the
success of the programs Gephart, R.P et all 1984.
According to Mathis Robert, 1994, the strategic role of HR
emphasizes that the people in an organization are valuable
resources representing a significant investment ,of organizational
efforts. These human resources can be a source of competitive
strength if they are managed effectively.
Strategically then, human resources must be viewed in the same D
context as the financial, technological and other resources that are
managed in organizations. At the same time that jobs are
eliminated and experienced workers become unemployed in some
industries, shortages of qualified people in other industries and
occupations have occurred. Therefore, the supply and demand
must be viewed from a strategic standpoint.
Therefore, effective human resource planning is a process of
analyzing an organization's human resource needs under changing
conditions and developing the activities necessary to satisfy these
needs. (Pattanayak Biswajeet, et all 1997)
2.6.1 THE REALITY OF HR STRATEGY
Organizations vary considerably in the formality of their
strategic planning, which range from detailed 200-page documents
to unwritten 'orientations. The greatest difficulties are experienced
in large, diversified organizations with a wide rage of interests.
I n fact, human resource strategy may only be unproblematic in the
idle circumstances described by Guest 1987, cited from Alan Price,
199,7.
I t should take place within a purpose built modern location, a
green field site employing carefully selected "green" labour.
'Such staff would have no previous experience of the industry in
which the company operates and therefore would be
untarnished by an "undesirable industrial subculture. They
would not be hide-bound by traditional but outmoded ways of
doing things.
The organization requires highly professional management, P
preferably Japanese or American.
Employees should be given intrinsically rewarding work rather
than, uninteresting function for which pay is the sole motivation.
Workers should have security of employment and not be
constantly in fear of losing their jobs.
Guest acknowledges, that these conditions are difficult to achieve
in practice since most organizations, Japanese transplant factories
excepted, have pre-existing staff, buildings and equipment, which
cannot be discarded. They bring with them patterns of power and
behaviour, which may be contrary to the HR philosophy.
2.7 THE BENEFITS OF STRATEGIC HUMAN RESOURCES
The process of formulating HR strategies and establishing
programs or tactics to implement them is called Strategic Human
Resource (HR) Planning. When done correctly, strategic HR
planning provides many direct and indirect benefits for the
company (Luis R. Gomez - Mejia et all 2002), namely:
I. ENCOURAGEMENT OF PROACTIVE RATHER THAN
REACTIVE BEHAVIOUR.
Being "proactive" means looking ahead and developing a
vision of where the company wants to be and how it can use
human resources to get there. I n contrast, being "reactive"
means responding to problems as they come up. Companies
that are reactive may lose sight of the long-term direction of
their business; proactive companies are better prepared for
the future.
EXPLICIT COMMUNICATION OF COMPANY GOALS . Strategic HR planning can help a firm develop a focused set
-of strategic objectives that capitalizes on its special talents
and know-how.
STIMULATION OF CRITICAL THINKING AND
ONGOING EXAMINATION OF ASSUMPTIONS.
Managers often depend on their personal views and
experiences to solve problems and make business decisions.
The assumption on which they make their decisions can lead
to success if they are appropriate to the environment in
which the business operates. However serious problems can
arise when these assumptions no longer hold.
The strategic HR' planning process can help a company
critically reexamine its assumptions and determine whether
the programs that follow from these assumptions should be
modified or discontinued. However, strategic HR planning
can stimulate critical thinking and the development of new
initiatives only if it is a continuing and flexible process rather
than a rigid procedure with a discrete beginning and a special
dead line for completion.
IDENTIFICATION OF GAPS BETWEEN CURRENT
SITUATION AND FUTURE VISION
Strategic HR planning can help a firm identify the difference
between "where we are today" and "where we want to be".
By forcing managers to think ahead, strategic planning can
serve as a catalyst for change and mobilize the firm's
resources to achieve or enhance a competitive edge in the
future. 26
5. ENCOURAGEMENT OF LINEMANAGER'S
PARTICIPATION.
Like most HR activities, strategic HR planning will be of little
value unless line mangers are actively involved.
Unfortunately top management (including HR professionals)
sometimes tends to see strategic planning as its dm&,
with line managers merely responsible for implementation.
For HR strategy to be effective, line managers at all levels
must buy into it. I f they do not, it is likely to fail.
6. IDENTIFICATION OF HR CONSTRAINTS AND
OPPORTUNITIES.
Human resources play a major role in the eventual success or
failure of any strategic business plan. When overall business
strategy planning is done in combination with HR strategic ,
planning, firms can identify the potential problems and
opportunity with respect to the people expected to
implement the business strategy.
7. CREATION OF COMMON BONDS.
A well developed strategic HR plan with involvms~-..t at all
levels can help the firm create a sense of shared values and
expectations. This is important because a substantial amount
of research shows that, in the long run, organizations that
have a strong sense of "who we are" tend to outperform
those that do not. A strategic HR plan that reinforces, adjusts
or redirects the organizations' present culture can foster
values such as a customer focus, innovation, fast growth and
cooperation. 27
2.8 THE CHALLENGES OF STRATEGIC HUMAN RESOURCES.
In developing an HR strategy, the organization faces several
important challenges (Luis R. Gomez - Mejia et a\, ibid 2002) such
as:
1. MAINTAINING A COMPETITIVE ADVANTAGE
Any competitive advantage enjoyed by an organization tends
to be short-lived because other companies are likely to
imitate it. This is as true for HR advantages as for
technological and marketing advantages. The challenge from
an HR perspective is to develop strategies that offer the firm
a sustained competitive advantage.
2. REINFORCING OVERALL BUSINESS STRATEGY
Developing HR strategies to support the firm's overall \
business strategy is a challenge for several reasons. First, t ~ p
management may not always be able to enunciate clearly the
firm's overall business strategy. Second, there may be much
uncertainty or disagreement concerning which HR strategies
should be used to support the overall business strategy.
Third, large corporations may have different business units,
each with its own business strategies. Ideally each unit
should be able to formulate the HR strategy that fits its
business strategy best. Thus, diverse HR strategies may spur
feelings of inequity and resentment.
&VOIDING EXCESSIVE CONCENTRATION ON DAY- *
TO- DAY PROBLEMS.
So'me managers devote most of their attention to urgent
problems. They are so busy putting out fires that they have
no time to focus on the long term. Nonetheless, a successful
HR strategy demands a vision tied to the long-term direction
of the business. Thus, a major challenge of strategic HR
planning is prodding people into stepping back and
considering the big picture.
4. DEVELOPING HR STRATEGIES SUITED TO UNIQUE
ORGANIZATIONAL FEATURES.
No two firms are exactly alike. Firms differ in history, culture,
leadership style, technology and so on. The chances are high
that any ambitious HR strategy or program that is not
molded to organizational characteristics will fail. And therein
lies one of the central challenges in formulating HR
strategies; creating a vision of the organization of the future
that does not provoke a destructive clash with the
organization of the present.
5. . COPING WITH THE ENVIRONMENT.
Just as no two firms are exactly alike, no two firms operate in
an identical environment. For instance, some must deal with ' rapid change, as in the computer industry; others operate in
a relatively stable market, as in the market for food
processors. A major challenge in developing HR strategies is
crafting strategies that will work in the firm's unique
environment to give it a sustainable competitive advantage.
6. SECUWNG MANAGEMENT COMMITMENT
HR strategies that originate in the HR department will have
little chance of succeeding unless managers at all levels - including top Executives support them completely. To ensure
managers' commitment, HR professionals must work closely
with them when formulating policies.
7 . TRANSLATING THE STRATEGIC PLAN INTO ACTION,
Often a strategic plan that looks great in paper fails because
of poor implementation. The acid test of any strategic plan is
whether or not it makes a difference in practice. I f the plan
does not affect practice, employees and managers will regard
it as all talk and no action.
8. ACCOMMODATING CHANGE I
Strategic HR plans must be flexible enough to accommodate
change. A firm with an inflexible strategic plan may find itself
unable to respond to changes quickly because it is so
committed to a particular course of action. The challenge is
to create a strategic vision and develop the plans to achieve
it while staying flexible enough to adapt to change.
STRATEGIC HUMAN RESOURCES MANAGEMENT M O D E B
According to John Bratton et al 1999, some of the successful
models used in Strategic HR Management are:
THE MATCHING STRATEGIC HRM MODEL
The practice of strategic HRM here is concerned with the challenge
of matching the philosophy, policies, programs practices and
process, the five P's (see fig 2.1), in a way which will stimulate and 30
reinforce different employee role behaviours appropriate for each
competitive strategy. It is also argued that HR systems and
organizational structure should be managed in a way that is
congruent with organizational strategy.
In the Devanna et al model, human resource management strategy
and structure follow and feed upon one another and are influenced
by environmental forces (figure 2.1). This basic model constructed
the "bare bones of a theory" on SHRM. HRM is seen to be
'strategic' by virtue of its alignment with business strategy and its
internal consistency.
I n the matching model, the relationship between business strategy
and HRM strategy is said to be "reactive" in the sense that HRM
strategy is subservient to 'product market logic' and the corporate
strategy. The latter is assumed to be the independent variable. As
Miller (1978) emphasizes.
HRM cannot be conceptualized as a stand alone corporate issue.
Strategically speaking it must flow from and be dependent upon
the organizations' (market oriented) corporate strategy (cited in
John Bratton et a\ 1999 p.49)
Political roc ll s
Figure 2.1 Devanna et al's matching model of strategic HRM.
Source: John Bratton et a/ (1999)
The matching model can be critiqued about on conceptual and
empirical grounds. I n the first area, the conceptual, the matching
model is predicated upon the rational view of strategic decision
making grounded in clearly definable predispositions, choice and
action, That is, 'internal strategy - a carefully planned approach to
how people at work are to be deployed, developed, motivated and
controlled -is derived from 'external strategy' - a chosen approach
of competing in the market place. I n other words, it assumes that
organizational controllers act rationally. But as many critical
organizational theorists attest, strategic decisions are not
necessarily based on the output of rational calculation. The
assumption that business - level strategy and HRM strategy has
such logical linear relationship is questionable.
A second problem is with the prescriptive validity of the model.
Some HRM theorists have questioned whether the fit metaphor is
necessarily a desirable goal to achieve. In periods of market
turbulence and financial stringency, there is a tendency for
corporate management to improve profitability by downsizing,
decentralizing decision making and applying more demanding
performance outcomes at the unit level. Also a multidivisional
company pursuing a strategy of acquisition, asset stripping and
downsizing might "logically" adopt a set of HRM strategy that
inciudes compulsory lay-off and a compensation system based on
short-term performance results. I n such a case, the business
strategy and HRM strategy might 'fit', but these HRM policies
although consistent with such a business strategy are unlikely to
generate employee commitment. I n other words, achieving the
goal of' 'close fit' of business and tiRM strategy can contradict the
core 'soft' HRM goals of commitment, flexibility and quality.
Furthermore, the matching model is essentially 'unitary' and it
trends to assume that workers are unproblematic and will comply
with management's perception of the 'needed role behaviours'.
Advocates of tight fit between business and HRM strategies tend to
ignore the realities of the workplace and the possibility that
workers and their unions might influence strategic planning.
2.9.2 TJE RESOURCE - BASED MODEL
The resource - based model of SHRM draws attention to the
strategic value of the work force and to the issues of workplace
learning. Thus it appears ' to embrace a 'sow view of human
resource management. The genesis of the resource - based model
can be traced back to Selznick (1957) cited from John Bratton et al
(1999) who suggested that work organizations each possess
'distinctive competencies' that enables them to outperform their
competitors and to Penrose (1959) who conceptualized the firm as
a 'collection of productive resources'. She distinguished between
'physical' and 'human resources', and drew attention to issues of
learning including knowledge and experience of the management
team. Moreover, Penrose emphasized what many organizational
theorists take for granted that organizations are 'heterogenous'
(Pehrose 1959, cited in John Bratton 1999.)
Putting it in terms of simple SWOT analysis, the matching model
emphasized the strategic significance of external "Opportunities"
and "Threats," the resource - based perspective emphasizes the
strategic importance of internal 'strengths' and 'weaknesses'. This 34
model summarized in fig 2.2 suggests that work organizations 8
achieve sustainable competitive advantages by implementing
strategies that exploit their internal strengths through responding
to environmental opportunities, while neutralizing external treats
and avoiding internal weaknesses.
Figure 2.2: The relationship between resource endowments
and sustained corn peti tive advantage.
Source: Barney 1991 cited from John Bratton el a1 1999
- Firm resources heterogeneity Finn resources i~nmobility
Value rareness imperfect limitability
llistory Ikpendent Casual ambiguity Social complexity Substitutability
+ )
Suqtaincd ccm~pctitive advantage
LIMITATIONS WITH THC RESOURCE - BASED MODEL ------- e
As with contingent matching approach, the resource - based
approach to strategic HRM can be critiqued on both conceptual and
empirical grounds. One problem is that the term itself, 'resource - based' appears to mean different things to different authors. Some
competing terms include 'distinctive competence', 'dynamic
capabilities' 'core competencies' and so on. The definitions range
from narrow specific interpretations to very broad descriptions and
are 'sometimes tautological; resources are defined as firm
strengths and firm strength are then defined as strategic
resources; capability is defined in terms of competence and
competence is then defined in terms of capability (Nanda, 1996
cited from John Bratton et al 1999).
The prescriptive message of the resource - based approach is
based upon the familiar assumptions in Mc Gregors "Theory Y - that workers have talents which are rarely fully utilized in the
workplace and could therefore be seen as no more than 'good
intentions and whistling in the dark'. The prescriptive validity of the
resource - based approach has been questioned by some theorists.
For some, this perspective on strategic HRM makes the mistake it
accuses the matching models of making; that is trying to ascribe
preeminence. to the inside-out perspective of strategy.
dnother problem with the resource - based SHRM model stems
from its implicit acceptance1 of a unitary perspective of the post
industrial workplace in which goals are shared and levels of trust
are high. As is the case with the matching model, advocates of the
resource - bascd SHRM perspective omit the dynamics of 0
workplace trade unionism in the strategic equation.
2.10 DIMENSIONS OF STRATEaIC HRM
I n addition, focusing on the validity of the matching and the
resource - based SHRM models that have just been discussed,
researches have identified a number of important themes
associated with the notion of strategic HUM that are briefly
discussed here namely .
I RE-ENGINEERING AND STRATEGIC HRM
Both models of HRM emphasize the importance of
organizational and job redesign. A new word for the re-
design of work organizations is "Business process R.e-
engineering (BPR) as given by Hammer and Champy. They
defined BPR as:
The fundamental rethinking and radical redesign of business
process to achieve dramatic improvements in critical,
contemporary measures of performance, such as cost,
quality, service and speed (1993) cited from John Bratton et
al 1999.
Hammer and Champy argue for a new approach to
organizational design, work processes and management.
Firstly, the hierarchy of the corporation is 'flattened' as many
middle-management positions give way to 'enabling'
information technology and self-managed work teams.
Secondly, work is redesigned into self-managed teams and
managerial accountability is shifted to the 'frontline': 3 7
have become increasingly more self -managed.
Thirdly, information technology is a 'critical enabler that
allows organizations to do work in 'radically' different ways.
Fourthly, serious management makes an 'unwavering'
commitment to radical change, including cultural change, set
ambitions goals and initiate the re-engineering process. The
elimination of many middle management positions, the
vertical and horizontal compression of job assignments and
self managed work teams draws attention to 'strong'
leadership and corporate culture, and the critical role of
HRM. I n essence, BPR puts the HRM techniques that seek to
make workers' behaviour and performance more congruent
with the organization's, culture and goals.
Finally re-engineering as a social construct, displays the
inherent power of corporate leaders to shape and define
reality.
LEADERSHIP AND STRATEGIC HRM
The concept of management leadership permeates and
structures the theory and practice of work organizations and
hence the way we understand SHRM. I n the management
texts, leadership has been defined in terms of traits,
behaviour, contingency, power and occupation of an
administrative position.
38
Ai!.~r ;; ccmp1x3wrsive r-c!!ir;v! uf the leadership iiterat-urc, 0
Y!A.I (1990) affirms that m y definition of leadership is
' a t W x x y and very subjective' and goes on to define
leadership as:
7he process wherein an individual member of a group
or organization influences the interpretation of events,
the choice of objectives and strategies, the organization
of work activities, the motivation of people to achieve
the objectives, the maintenance of cooperative
relationships, the development of skill and confidence
by members, and the enlistment of support and
cooperation from people outside the group or
organization (cited from John Bratton et a1 1999)
The concept of leadership is a central building block of the
'soft' HRM model's concern with developing a 'strong'
organizational culture and building a high level of worker
commitment and cooperation. Of many management gurus,
Peter Senge (1990) makes the most explicit link between
strategic HRM, workplace learning and leadership when he
writes that 'leaders are designers, stewards and teachers'
. and that a learning organization will remain only ' a good
idea', an intriguing but distant vision until the leadership skills
required are more readily available. Thus, it would be seen
that a key constraint on the development of a resource-
based SHRM model and a 'learning organization' is leadership
comp~tencies. Barney (1991) emphasizes that the resource-
based SHRM requires leaders that develop the organizations
"rare and non-substitutional human assets. (Cited from John
Bratton et 81 1999). 39
In e ~ p r ~ >.,...rice, thc 'trst-~sformational' leader extols to employees
the nced for workirq t x j ~ n d contract for the 'common' good.
This leadership style emphasises the importance of vision
building and the ability to communicate this vision and,
simultaneously, enthuse subordinates to make their vision a
reality. The general assumption is that 'enlightened'
leadership will result in higher productivity and effectiveness.
3. WORKPLACE LEARNING AND STRATEGIC HRM
Within most formulations of strategic HRM, employee
development has come to represent a key 'lever' that can
help management achieve the substantive HRM goals of
commitment, flexibility and quality.
Workplace learning is an interdisciplinary body of knowledge
and theoretical inquiry that draws upon adult learning and
management theory. In practice, it is that part of the
management process that attempts to facilitate work-related
continuous learning at the individual, group and
organizational level. Workplace learning occupies center 1 stage in the 'soft' resource- based SHRM model. Individual,
team and organizational learning can strengthen and thus act
as the engine for sustainable competitive advantage.
From a managerial perspective, it is suggested that an
organjzation's investment in workplace learning acts as a
powerful signal of its intentions to develop its 'human assets';
this can help develop commitment to the organization rather
then compliance. 40
. 4. TRADE UNION AND STRATEGIC HRM
I n the literature, the new HRM model is depicted as
"unitary"; it assumes that management and workers share
common goals and differences are treated and resolved
rationally. According to the theory, if all workers are fully
integrated into the business, they will identify with their
company's goals and management's problem, so that what is
good for the company and management is perceived by
workers as also good for them. Critical to achieving this goal
is the notion of worker 'commitmentt to the organization.
Much of the critical literature also presents the new HRM
model as inconsistent with traditional relations and collective
bargaining, albeit for very different reasons. Critics argue
that HRM policies and prati~ces are designed to provide
workers with a false sense of job security and obscure
underlying sources of conflict inherent in employment
relations.
Yet other industrial relations scholars, taking a more ! traditional "Orthodox pluralist" perspective, have argued that
independent trade unions and variants of the HRM model
cannot only co exist but are even necessary to its successful
implementation and development. "key argue that trade
unions should become proactice or change 'champions',
activgly prornotinq the more positive elements of the 'soft'
FIRM model. Such a union strategy would create a
'partnership' bctwcen management and organized labour
mutual gains for both organization and workers (Betcherman e
et al, 1994; Guest, 1995; Verma, 1995; cited from John
Bratton et al 1999)
SUMMARY
I n chapter 2 we have been able to review some of related
literature on the topic Strategic Human Resources Management
(SHRM).
The strategic management process was reviewed as well as an
overview of Strategic Human Resources Management. The benefit
of SHRM which includes encouragement of proactive rather than
reactive behaviours, explicit communication of company goals,
creation of common bonds etc were analyzed.
The challenges of SHRM were also analyzed which includes
maintaining a competitive advantage, reinforcing overall business
strategy; coping with the environment etc SHRM model as well
different dimensions were also given.
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Haward Business school
Publishing Corporation USA.
21. HoweS.(l995): EssentialElementsofHRM
DP Publications L td Aldine place,
London.
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
This chapter presents the researchers methodology and processes
involved in carrying out the research project. The chapter is
divided into subsections as presented below:
3.1 RESEARCH METHOD
The type of method to be used in any research undertaking is
determined substantially by the nature of the research problem
and purpose of the study. The researcher regards the use of
descriptive or normative method of research as logically sound and
adequate for getting solution to the problems posed by the study.
3.2 METHOD AND SOURCE OF DATA COLLECTION
The researcher made use of multiple data gathering technique in
order to adequately cover research questions and to achieve
precise and reliable result.
The explanatory survey method which embraces questionnaire and
interview was used as primary data gathering instrument, since
researchers consider it to be the most suitable technique for
discerning the kind of information needed by users as well as the
source on which most researchers commonly rely. The researcher
thds used questionnaire and personal interview for the purpose of
primary data collection.
3.3 QUESTIONNAIRE DESIGN
Prudence and conscious effort were employed during the
questionnaire design. The structure is a multiple-choice question.
Thus, it gives the respondents the opportunity of answering "Yes"
or "No" or choosing from a range of answer by ticking the
appropriate choice answer.
A space was made available in form of an open-ended question,
designed to enable respondents express their personal views about
how they wish to participate in the company's affair and how the
application of strategic Human Resources Management can
improve. Such questions may not have been expressed in the
close-ended questions.
Section A of the questionnaire was constructed to secure certain
official but personal information on respondents.
Section I3 is the academic questionnaire proper responsible for the
researcher's validity.
3.4 INTERVIEW METHOD
This method was used to extract responses to questions that were
not included in the questionnaire, but which are vital to the
research. Personal structured and unstructured interviews were
conducted with the admin manager and the human resource
management team of the two selected banks: First bank of Nigeria
PIC and United Bank for Africa Plc.
3.5 LIBRARIES
Materials from libraries and other research units, which included
books, journals, articles, notes, unpublished projects, dailies, were
used as the secondary source of data collection.
This was employed essentially to provide a theoretical framework
for the study. Both private and public libraries were consulted.
These in addition to personal interview compensated for inherent
weaknesses of the primary data gathering methods, thereby
enhancing research reliability.
3.6 THE POPULATION FOR THE STUDY
The population for this study was mostly drawn from the admin
department and human resource management team and other
staff of the banks in the two (2) selected banks in Lagos.
3.7 PROCEDURE FOR DATA GATHERING
Research questionnaires were given to the people scientifically-
selected for this study. They were requested to either circle or tick
the option that best suited their choice and also fill in the blank
spaces with whatever they felt were the answers.
I n order to avoid delay and at the same time ensure high
percentage return of questionnaires, they were distributed by hand
and collected after the respondents have duly completed them.
3.8 VALIDITY AND RELIABILITY OF DATA INSTRUMENT
Validity as used here is the degree or extent to which an
instrument actually measures what it is intended to measure. 50
Therefore, an instrument is valid to the extent it is tailored to
achieve research objectives. Thus, the instruments for this
research was validated by ensuring that the questions were
structured in a manner that will enable the research obtain
information relevant to the purpose and objective of the study.
I n order to maximize reliability of the instrument used for the
research, the investigator ensured that questions were not
ambiguously presented to respondents in a manner likely to
communicate different meaning that could generate inaccurate and
inconsistent responses. +- * I ~ -
YFI( ? p := ""cop I rrne
A P b 3.9 DETERMINATION OF SAMPLE SIZE
To determine a sample size, the researcher conducted a pilot
survey in which 20 of the research questionnaire was administered
randomly on the administration and Human resources department
and the selected management staff of the selected banks.
Out of the number, 17 were correctly filled and returned. It was
therefore taken as a positive response. The remaining 3
represented both the ones that were rejected and the ones not
completed. These were regarded as negative responses. The
percentage of response therefore is 85 and 15 respectively.
To calculate the optimum sample size, the researcher applied the
Freud William Model of sample size determination, calculated at
95% confidence level and 5% standard error, the formulae is:
Where:
N= Sample size
P= Percentage of positive response
Q= Percentage of negative response
E= Percentage of error
Z= Normal variant for the desired level of confidence
Substituting and solving for 'N"
N= (1.96)~ (85.151
sZS = 3.8416.1275
25
= 4898.04
25
=195.92
With this outcome, the researcher decided to approximate the sample to
200 for easy administration.
3.10 METHOD OF DATA ANALYSIS
Data collected will be coded, grouped into frequencies, computed I
and arranged into tables for easy references and analysis.
Presentation methods to be used include simple percentages,
tables and pie charts.
REFERENCES
I. Fruend and William, in Uzoh Stanley (2000):
'Xn Appraisal of Public Relations
Programmes/Strategies in the Enhancement
of the Revenue Base of a Local Government
area': An Unpublished PGO, Project Report,
Department of Marketing, Bus. Admin. Fac.
UNN
2. Uzoh, Stanley 1.L (2002): "An Appraisal of Public Relations Inputs
(Instruments/Strategies) in the A wareness
Creation of HI V/AIDS in Nigeria.
an Unpublished PG, Project Repottj
Department of Marketing, Bus. Admin.
Faculty UNEC.
CHAPTER FOUR
4.0 ANALYSIS AND INTERPRETATION OF DATA
To analyze the data collected, this chapter is divided into two
sections viz, questionnaire administration and test of hypothesis.
These sections are hereby presented in a chronological sequence
in line with the research objectives, questions and hypothesis. The
study seeks to determine the extent to which Strategic Human
Resources Management is being applied in the banking sector.
4.1 QUESTIONNAIRE ADMINISTRATION
SEX AND AGE DISTRIBUTION OF RESPONDENTS
The table below summarizes the distribution of respondents by Sex
and age.
TABLE 4.1 SEX AND AGE DISTRIBUTION OF
RESPONDENTS
I Age range in years \ Female \ Male 1 Total !
I n table 4.L, a summary of the distribution of questionnaires by sex
-
20-29
30-39
40-49
50
60 and above b
and age consideration was tabulated. The table indicated that 65
out of the 200 questionnaires retrieved were female while the
No
5
25
30
5
65 I
O/O
-
No
11
47
62
15
135
No
16
47
92
20
200
O/O
-
%-, --
I.
1.
.. II.
remaining 135 (67.5%) represented the male. Further, the analysis
revealed the percentage of age range in years for both female and
make respondents, respectively.
On the whole, the questionnaires were administered on the two
categories of respondents.
The HR/Admin management team and selected management staff
of FBN PIC
The HR/Admin management team and selected management staff
of UBA PIC.
The total number of respondents and questionnaires administered
were presented in table 4.2 below:
Table 4.2 shows the total number of respondents of this research
study. Out of a total of 200 questionnaires administered, 120 were
from FBN, while 80 were from UBA Plc. Furthermore, out of the
200 questionnaires distributed to the two banks 200 were retrieved
and found useable. This means that 100% of the questionnaires
distributed were useable.
This means that 100% of the questionnaires distributed were
useable.
55
TABLE 4.2: TOTAL NUMBER OF RESPONDENTS:
RESPONDENTS
First Bank of
Nigeria PIC
United Bank for
Africa PIC
NO OF COPIES
ADMINISTERED
120
80
200
NO OF USEABLE
RESPONSE COPES
RETRIEVED
120
80
200
Rate %
---- 100%
.---- ----
100 --
SECTION B 0
4.2 RESEARCH INFORMATION_
To be able to appreciate the influence of SHRM in the achievement
of the bank's overall business objectives, the researcher would
know whether they really understand what SHRM is all about, if
they engage in SHRM activities and the extent to which these have
contributed to the achievement of business objectives of the bank.
The answers to the aforementioned are addressed in the tables
below.
TABLE 4.3: UNDERSTANDING OF SHRM -- 1 RESPONSE VARIABLES 1 NO OF RESPONDENTS \ PERCENTAGE 1
Source: Response to question No 2. (FBN and UBA PIC)
Yes
No
Neutral
Total
Table 4.3 indicates that the staff of FBN PIC and UBA PIC has full
understanding of what SHRM is all about. This is demonstrated by
the respondents who all (10O0/0) affirmed to this assertion.
TABLE 4.4: ARE YOU AWARE OF THE PRESENCE OF
200 - - 200
SHRM I N YOUR BANK?
100
-- - -
100
I 1 Neutral I - I - ---I
RESPONSE VARIABLES
Yes
I I I
Source: Response to question No 3 by FBN PIC and UBA PIC staK
RESPONDENTS
200
Total
PERCENTAGE -- -
200 100
Table 4.4 shows that all the selected staff of both banks under
study is aware of the presence of SHRM in their bank. This is
demonstrated by respondents (200) who all (100%) affirmed to
the assertion.
TABLE 4.5: HAVE YOU OBSERVED ANY FORM OF U N K
BETWEEN HE AD STRATEGIC GOALS AND
OBJECTIVES OF THE BANK?
I RESPONSE VARIABLES 1 RESPONDENTS ( PERCENTAGE I I 1 FDN PLC ( UBA PLC 1 TOTAL I
Table 4.5 goes a long way to buttress the fact that HR and
strategic goals and objectives of the banks are linked. This is
substantiated by the fact that 95 respondents from FRN PIC
representing 79% are of the view.
While from UBA Plc, 70 respondents, representing about 88% are
also of the same view.
In totality, 165 respondents of FBN and UBA PIC representing 83%
went for the view that HR and the strategic goals and objective of
their banks.are linked.
Yes
No
Don't know
Total
Sources: Responses to question No 4
I I .-.
NO
95
10 .
15
120
O/o
79.2
8.3
12.5
100
NO
70
- 10
80
O/o
87.5
12.5
100
NO
10
25
200
O/o
165"=:?-.. .---.
5 I 12.3-(
1 0 0 \ J
TABLE 4.6: HR MANAGEMENT CAN PLAY A ROLE I N
ENVIRONMENTAL SCANNING, THAT IS, IDENTIFYING AND
ANALYSING EXTERNAL OPPORTUNITIES AND THREATS
THAT MAY BE CRUCIAL TO THE COMPANY'S SUCCESS.
RESPONSE VARIABLES
Table '4.6 shows that FBN PLC'slc staff strongly agree that HR
management play a role in identifying and analyzing external
opportunities ad threats that may be crucial to their organisation's
success. This can be substantiated by the fact that 100
respondents, representing about 83% are of the view while 40
respondents, representing 5O0/0 of UBA PIC staff are of the same
assertion. I n totality, 140 respondents representing 7O0/0 of the
total respondents are of the view that HR management can play a
role in environmental scanning i.e. identifying and analyzing
external opportunities and threats that may be crucial to the
com pany 's success.
Strongly agree
Agree
Disagree - ----- Total L-
RESPONDENTS
FDN PLC
PERCENTAGE
UBA PLC 1 TOTAL -7
Source: Response to question No. 5
NO
100
20 -
120
O/O
83.33
16.67
100
NO
40
35
5
80
O/o
50
43.75
6.2 5
100
NO
140
55
200 --L- ---A
---- O/o
.--- -.-- 70 i ---4 19.25 s--'z--\ - - - - -- - i 100 1
-- --
TABLE 4.7: THE STRENGTHS AND WEAKNESSES OF YOUR
BANK'S HR CAN HAVE A DETERMINING EFFECT ON THE
VIABILITY OF THE BANK'S STRATEGIC OPTIONS
Table 4.7 indicates that the respondents from FBN PIC strongly
-
agree that the strengths and weaknesses of their HR can have a
determining effect on the viability of their strategic opti~n. This can
RESPONSE VARIABLES
- -
Strongly agree
Agree
Eg ree
be proved by the fact that 75 respondents representing 62.S0/0
120 I00 Vo ta' 1-1
supported the assertion. On the other hand, 35 respondents,
80 100
representing 43.8% from UBA PIC agree to the assertion. On the
Source: Response to question No. 6
- ---- - - - PERCENTAGE
- UBA PLC TOTAL
1 No
35
40 ---.
5 6.2
RESPONDENTS
FDN PLC
whole, 110 respondents, representing 55O/0 of both categories of
No
75
33
12
respondents are of the same assertion that the strengths and
O/o .--
62.5
27.5
10.0
weaknesses of their HR can have a determining effect on the
visibility of their strategic option.
TABLE 4.8: DO YOU BELIEVE THAT SHRM ACIXVITIES
CONTRIBUTE TO THE ACHIEVEMENT OF BUSINESS
OBJECTIVES?
PERCENTAGE - -- - - ..
UBA PLC TOTAL
Source: Response to question No. 7
Strongly agree
Agree
Disagree
Total ---
From table 4.8 it can be deduced that 100 respondents,
representing 100% of the total respondents from the two banks
are of the view that SHRM activities contribute to the achievement
of business objectives.
TABLE 4.9: SHRM ACTIVITIES CONTRIBUTIONS TOWARDS
80
80
10
THE AlTAINMENT OF OVERALL CORPORATE GOALS AND
66.7
25.0 -
8.3
OBJECTIVE
- 40
35
5
120 -
80 100
RESPONSE VARIABLES
Positively affects
performance --- Reduces labour
turnover
%%ides competitive
intelligence
I I
PERCENTAGE
50
43.8
100
RESPONDENTS
FDN PLC UBA PLC
NO
4
6
20
------ ------
120 50 .
200
TOTAL
NO
2
O/o
3.33
5.0
16.67
\ 65
100 1
NO
e O/o
2.5
2
I0
6.2
32.5
O/o ---.--
' 3 1 i
-- -. . .
2.5 8 4
t --.-
15 -.
7.5 1
Source: Response to question No. 8
Provides a more careful
and systematic
approach
A l l o f the above and
more 1 -
Table 4.9 above shows that SHRM activities make all the
mentioned contributions and more towards the attainment of the
overall business goals and objectives. This can be substantiated by
the f ad that 140 of the respondents representing 7O0/0 of the
questionnaire administered agree to the assertion.
TABLE 4.10: DO THE RELEVANT OFFICERS/MANAGEMENT
TEM I N YOUR BANK RECOGNIZE SHRM AS A VERITABLE
INSTRUMENT I N THE ACHIEVEMENT OF BUSINESS
OBI ECTIVES?
PESPONSE VARIABLES \ RESPONDENTS 1 PERCENTAGE 1
10
120
8.33
100
.--
I--
Source: Response to question no 9
- - - .. -- . .- - - FDN PLC '77
L
Table 4.1Q indicates that the relevant officers/management team
recognizes SHRM as a veritable instrument in the achievement of
business objectives. This can be substantiated by the fact that 85
6
80
respondents, representing 70.8O/0 of FBN PIC staff supported the 6 1
7.5
I
Very greatly
Greatly ,
~ o t greatly
loo
NO
45
30
5
1
i I
)I 200 100
. -. . - - .-.--..A
80
NO
85
23
10
O/o
56
38
6
O/o
70.8
20.8
8.4
120 100 100 200 loo---\ _I --.--.-. J
NO
130
55
15
-I
O/o -- ..
65
27.5
7.5
opinion. While 45 respondents, representing 56% of the 0
respondents from UBA PIC are of the same assertion too. In totality
130 respondents, representing 65% of the total respondents from
the two banks were of the view that the relevant
officers/management team of the banks recognize SHRM as a
veritable instrument in the achievement of business objectives.
TABLE 4 . : HOW EFFECTIVELY, EFFICIENCY AND
ADEQUATELY HAVE SHRM BEEN APPLIED I N ACHIEVING
OVERALL BUSINESS OBJECTIVES.
/ RESPONSE VARIABLES 1 RESPONDENTS \ PERCENTAGE - 1 I
NO O/o I NO O/o NO O/o
Very greatly 5 . 4 5 6.25 10 5 --- Greatly 25 . 21 15 18.75 40 20
-- Not greatly 90 75 60 75 150 75
Total 120 100 80 100 I 11, _ _ - .
Source: Response to question No. 10
From table 4.11 it can be seen that SHRM have not been
effectively, efficiently and adequately applied in achieving the
overall business objectives. This can be proved by the fact that 90
and 60 respondents from FBN PIC and UBA Plc, representing 75%
and 75% respectively agreeing that SHRM have not been greatly
.applied. I n totality, 150 respondents representing 75% of the total
respondents also agree that SHRM have not been greatly and
effectively applied in achieving corporate objectives.
TABLE 4.12: TO WHAT EXTENT HAVE THE APPLIED 0
SHRM YIELDED OR I S YIELDING RESULT
I N RESPECT TO ITS MAN OBJECTIVES?
( RESPONSE VARIABLES ( RESPONDENTS 1 PERCENTAGE I
Table 4.12 shows that the applied SHRM have very extensively
Very Extensively
Extensively
Not extensively
Total
yielded result in respect to its main objective. The assertion is
substantiated by the fact that 115 out of the total respondents
Source: Response to question No. I I
representing about 58% of the entire questionnaire administered
FDN PLC
were of the same view. This can better still be represented by a pie
NO
78
32
10
120
chart,
O/o
65 -
26.67
8.33
I00
UBA PLC
NO
37
38
5
80
TOTAL ---- - - . - -. --
NO O/o
115 57.5
O/o
46.25
47.50
6.25
100
----.-
70 - -. 15
200
.-,--- --
35 i , --.-- - . - 7.5
,-----
100 I L
TABLE 4.13: HAS THE APPLICATION OF SHRM I N ANY 0
WAY MADE POSITIVE IMPACT I N YOUR
BANKS ACTIVITIES?
( RESPONSE VARIABLES \ RESPONDENTS 1 PERCENTAGE I I
FDN PLC
Source: Response to question No. 12
UBA PLC TOTAL --I Yes
No
Don't know
Total
Table 4.13 above indicates that the application of SHRM has made
positive impact in the two banks under study. This can be
substantiated by the fact that 112 respondents, representing
93.3% of the respondents from FBN PIC support the opinion. While
80 respondents representing 10O0/0 of the respondents from UBA
PIC are also of the view. On the whole 192 respondents i , I
representing 96% of the total respondents are of he same
assertion that the application of SHRM has positively impacted on
the banks' daily activities.
NO
112
8
120
O/o
93.33
6.67
100
NO
80
-
O/o ----,
100
NO
- 80
-- - .. -- O/o
--- -- - --- 100
- 1 192
. 96
. --. - --- i
TABLE 4.14: THE EXTENT OF THE IMPACT MADE BY *
THE APPLICATION OF SHRM.
- . -. - ,- .
NO O/o NO O/o NO O/o -- - -- - . .- -. - - -- - .
Very Strong impact 62 52 46 57.5 108 54
Strong impact 44 37 30 37.5 74 37
NFAK impact 14 12 4 5 18 9 . . .- .
Total 120 100 80 100 200 100 I I
Source: Response to question No. 13
Table 4.14 above indicates that SHRM so far applied made a very
strong impact in the activities of the banks under study. This can
be substantiated by the fact that 108 respondents, representing
54% of the total respondents from the two banks are of the same
opinion that the application of SHRM also makes very strong
impact in the day-to-day activities of the banks.
TABLE 4.15: WHAT FACTORS ARE RESPONSIBLE FOR
THE NON-APPLICATION OR INEFFECTIVE APPLICATION
OF SHRM I N THE BANKING SECTOR?
RESPONSE VARIABLES
Ignorancie of SHRM
Lack of interest in
SHRM . Lack of clarity and
lucidity of the benefits
RESPONDENTS
FDN PLC
PERCENTAGE
NO
10
14
30
O/o
8.3 '
11.7
25
UBA PLC
NO
2
8
20
. . . - .- . - TOTAL
O/o
2.5
10
25
NO
12
22
50
-- ...- O/o ----. 6
li
25
--d
Table 4.15 above shows that all the aforementioned reasons and
more could be responsible for the lack of effectiveladequate
application of SHRM in the banking industry. This can be
substantiated by the fact that 54 respondents from FBN Plc
representing 45% of the respondents are of the opinion, while 40
respondents from UBA Group PIC representing 5O0/0 of the
respondents are also of the same opinion. Hence in totality 104
respondents representing 52% of the total respondents from both
are in support of the assertion.
of SHRM.
SHRM believed' to be
unrealistic.
All of the above and
more.
Source: Response to question No. 14
12.5
50
12
54
-
30
104
- - 15 - 1
- ..-. 52
--
10
45
10
40
CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, RECOMMENDATIONS AND
CONCLUSIONS
The various data gathered has been presented and analyzed in
chapter four. This chapter therefore will discuss issues generated
from the analysis and make recommendations accordingly.
5.1 SUMMARY OF FINDINGS
The researcher in the course of this study found out the following:
1. The banking industry in Nigeria is aware of SHRM.
2. Majority of the major officers and management team in the
banks studied understands what SHRM is all about.
3. Also, majority of the management team of the banks recognizes
SHRM as a veritable instrument in the achievement of business
objectives.
4. SHRM activities contribute to the attainment of business goals
and objectives.
5. SHRM have not been effectively, efficiently and adequately
applied in achieving overall business objectives.
6. SHRM so far applied have yielded or yields great result in the
banking industry.
7. The application of SHRM has made great impact in the bank's
activities.
.8. Some of the factors that may be responsible for the non-
applicationlineffective application of SHRM in the banking
industry,.
5.2 RECOMMENDATIONS
Based on the data analysed and findings made, the researcher
would like to make the following recommendations:
1. All the relevant officerslmanagement team should have an in-
depth knowledge of what SHRM is all about.
2. All the relevant officerslmanagement team of the bank should be
involved in SHRM, Le., all concerned should be made to
participate and contribute to SHRM policies and strategies.
3. SHRM should be efficiently, effectively and adequately applied. I n
other words, there should be strict/timely adherence to the
formulated strategies. 'mu; ' \ I TY N ! ~ ~ ~ ~ ~
f- dOD#b,
4. Effort must not be relented or discouragement entertained as
great result has yielded from SHRM so far applied,
5. Since strategic management is an on-going process, efforts
should be made to constantly review, revise and evaluate
strategies formulated to reflect current trends. I n other words
SHRM should not be viewed as static.
5.3 CONCLUSION . From the analysis of the data and findings, the
researcher would like to conclude a s follows:
1. Mere knowledge of SHRM is not enough, but it's effective
and efficient application is what counts. Therefore managers
and responsible officers should not just be satisfied with the
head knowledge of SHRM, but should be majorly concerned
with it's application. This is important as this will enable
them reap the benefits associated with its application.
2: For SHRM to be effective all the relevant officers and
management team must be involved and duly consulted as
strategy formulation is being done.
3, Finally, there must be room for review and re-evaluation of
formulated strategies to be able to keep abreast with the
current trends in the industry, and also to take competitive
advantage.
AREAS FOR FURTHER RESEARCH
1) Akinwala Abiodum E.J. (1999): Human Resources Management
an overview, Concept Publication limited (Lagos). Pages 77 - 104
2) Alan Price (1997): "Human Resource Management in a
Business Context. Int'l Thomson Business Press (website),
Chapter 6.
3) Cheatle Kelvin (2001): Mastering Human Resources
Management, Pal Grave Master Series, Chapter 19, 69
4) ~ussel' Joyce C. A. (1998): Human Resources Management
(second Edition), an experimental approach, Irwin/Mc Graw - Hi\\ (Singapore), Chapter I.
5) sally Howe (1995): Essential Elements of HRM, DP publications
Ltd Aldine place, London, Chapter I.
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S d ~ n e r G., Shepard AmI Podlny I. (2001): Strategic management "
John Wiley and sons Inc.
Uzuh, Stanley I. L (2002): 'An Appraisal of Public Relations Inputs (Instruments/Strategies) in the Awareness
Creation of HIV/AIDS in Nigeria b
An Unpublished PG, Project Report,
Department of Marketing, Bus. Admin.
Faculty UNEC.
Department of Management
Faculty of Business Administration
University of Nigeria
Enugu Campus
Dear Respondent,
REQUEST TO COMPLETE A OUESTIONNAIRE
The researcher is a post graduate student (MBA) of the above named
institution. Her research topic is "The Application of Strategic Human
Resources Management in the Banking Industry" (a study of First Bank
of Nigeria PIC and United Bank for Africa Plc). Could you please complete
the questionnaire, the information is strictly academic and would be
treated with utmost confidence.
Thanks for your anticipated co-operation.
Yours faithfully,
Oduche, Ebelechukwu P.
OUESTIONNARE 0
Please tick where a~propriate
SECTION A: PERSONAL DATA
1. Sex: (a) male (B) Female
2. Age (A) 20-29 years
(B) 30-39 Years [-I (C) 40-49Years 1-1 (D) 50-59 Years
(E) 60 and above r\ 3. Years in service
(A) 0-5 Year
(B) 6-10 Year \I (C) 11-15 Years 1-1 (D) 16 and above 1 1
4. Staff category
A) Management
(B) Senior
(C) Junior 0
5. Academic Qualification
(A) U~D/BA/BSC r\ (B) MA/MSC.MBA
. (c) P. H. D. n (0) Professional I] (E) Others 0
SECTION B: RESEARCH INFORMATION 0
1 Do you have Human Resources Department in your bank?
(a) Yes (1 (b) No[-\ (c) Don't knoq-1
Do you know what strategic Human resources management
(SHRM) is all about?
(a) ~eq-1 (b) No I\ (c) Don't know\( (d) Neural r\ Are you aware of the existence of SHRM in you bank
b) No a) Yes (1 ( (c) N e u r a l r l
Have you observed any from of link between HR and the strategic
goals and objective of the banks?
a) Yes (1 (b) No (1 (c) Don't k n o l l
HR management can play a role in environment scanning it
identifying' and analyzing external opportunity and treats that may
be crucial to the company's success.
(a) Strongly a g r e e r l (b) ~gr$-1 (c) ~isagrq-1
Do you believe that the strengths and weaknesses of your banks
HR can have a determining effect on the viability of the bank's
strategic option?
(a) Agree (-1 etc
7. Do you believe that SHRM activities contribute to the achievement
of busines~ objective?
(a) Yes (b) No
8. What contribution have SHRM activities made towards the
attainment of overall corporate goals and objectives?
(a) Positively affects performance
(b) Reduces labour turnover
(c) Provides competitive intelligence
(d) Provide a new carefu\ and systematic approach to
charge.
9. Do the relevant officers/management team in your bank recognize
SHRM as a veritable instrument in the achievement of business
objectives?
10. How effectively efficiently and adequately have SHRM been applied
in achieving overall business objectives.
(a) Very greatly El (b) Greatly El (c) Not greatly
I . To what extent have the applied SHRM yielding or is yielding result
in respect to its main objectives.
(a) Very extensively) (b) Extensively I\ (c) Not extensively (d) Not at all
12. Has the application of SHRM in any way made any impact in your
bank's day-to-day activities?
(a) ye d (b) NO El etc.
13. I f yes to what extent?
(a) Very strong impact I] (b) Strong impact n (c) Weak impact
14. What factors are responsible for the non-application ineffective
application of SHRM in the beach industry?
(a) Ignorance of SHRY-1
(b) Lack of interest in SHRM\]
(c) Lack of clarity and lucidity of the benefits of s ~ ~ 4 - l (d) SHRM believe to be u n r e a l i s t i c r ]
(e) All of the above and more T I