COMPARATIVE STUDY OF HUMAN RESOURCE MANAGEMENT PRACTICES IN PUBLIC SECTOR AND PRIVATE ORGANISATIONS SECTOR IN NIGERIA (A CASE STUDY OF FEDERAL MINISTRY OF LABOUR AND PRODUCTIVITY, ZENITH BANK PLC).

ABSTRACT

This  research work  seeks to compare the practice of Human Resources Management in Private and Public Sector Organisation in  Nigeria.     Here,  Zenith  Bank  and  Ministry  of  Labour  & Productivity Sector respectively. From the data collected, we discovered that as much as human resources management practices appeared to be the much needed solution to the organisation’s problem, much is still desired in the management cadre of these establishment.  In order to reap the full benefits of human resources management practice, organisation have to embrace every bit of it for maximum efficiency and effectiveness. Training and development made a lot of contribution towards the growth of organisations.  However for clearer understanding,t he data were presented in tables are frequency distribution and analyzed with frequency and percentage.  The Z test was used in testing the hypotheses. The major findings of the study reveals that; private and public organisations have human resources management policies.   Both have difference in employment procedures as well as training and development programmes. They also have slight differences in compensation policies and disciplinary measures. Workers in both types of organisations are unionized. Public sector

organisations pay retirees pensions while the other do not.

CHAPTER ONE INTRODUCTION

1.1  BACKGROUND OF THE STUDY

The beginning of management as a body of knowledge can be  traced  to  the  last  two  decades  of  the  19th  century when recognised attempts were made to investigate systematically the development of basic management principles. These were attributed to the scientific managment scholar pioneered by F.W. Taylor.   These earliest attempts at defining the scope of management were criticized as ignoring the “human side” of management. The critics argued that the organisation is a social system  and that instead of the focus on work and workplace technology, the human side of enterprise should be emphasized.

Human resource in essence is considered the most important of all resources of an organisation. It is due to the two important facts. Firstly, no organisation functions without  people operating in it and secondly, organisation objectives (such as profit maximization, gaining larger share of the market, etc) cannot be achieved without human beings who co-ordinate the activities of the organisation (Dada, 1995;5).

Thus, it takes human resources to organise and co-ordinate the activities of other factors of production before a result- oriented goal can be achieved in any business activities.

Human resources is traditionally called labour in the political economy and economics, one of the three factor of production. It was used as labour right management in the olden days organisations.

In  economics,  human  resources  in  the  beginning  were known as `human capital’. Then it was later realized that human are capitals which can be run through a particular tine, in fact they are social beings and things change day today for them. It can not be that if one person is told to work for a particular time till a year, it is not necessary that he will make it. There are many eventualities and circumstances that may stop him to do so. So this term was then decided to change. But still in macro-economic, they use this term for employees as a factor of production.

The socialist parties from the starting of human employment have played a role of working the human right.

They explained that humans themselves are not assets for a company but the work they produce themselves are assets for them. And that they should be treated on the basis of their potentials and hard work this act of theirs started the hiring and firing in a better manner.

This extreme arguments portray Africans slavery. They were seen as slaves and their potentials were taken as capitals by the developed nations of that time without paying them properly. This was then recognised by the United Nations.

The above information depicts that humans were regard as mere asset of the company. This situation give rise to a department which could proffer solution to this threatening situation. The purpose was that the human resources department most be more than one of just hiring and firing. It sees to employees problems. It was on this ground this department was established. Now human relations occupy a bigger position and are considered being an important part of a firm. It is believed or rather assumed that if the employees are not satisfied, they will not produce sufficient quality work.

The history of human resource has reflected prevailing beliefs and attitudes held in society about employees, the responses of employers to public policy and reactions to public policy and to trade union growth. One could argue that the human resources field dates back to the first working arrangements between master crafts, people and their apprentices. Before the industrial revolution, working arrangements involves close relationship between mentors and apprentices dedicated to learning a particular trade. Apprentices were always required to live in the shop or home of the master craftperson. If an apprentice was injured or sick, the master’s family was responsible for restoring the young worker’s health and welfare. Master and apprentice shared in good times and bad, in profit and loss.

However, this age old relationship came to an end with the advent of the industrial age. In one powerful stroke, the notion of work moved from guilds and home shops to stream-driven factories. The introduction of the assembly line brought a need for low- skilled employees capable of performing repetitive tasks. Management philosophy at the turn of the

century was epitomized by Henry Ford, who often worsened why workers brought their heads to work when all he really needed was their hand and feet.

Assembly line production required that large numbers of people come together for work, but these workers were interchangeable and, to some extent, expendable because   few still were required for most factory jobs. Employer’s attention focused  on  consumer  demands,  the  speed  at  which  new machines produced goods and the  process that drove production concerns that were sometimes placed well ahead of the need of employees.

It has been accepted to be a clear cut fact that some of the human sources challenges that face most organisation both public and private organisations are in recruitment, performance management, training and development, motivation and compensation management, etc. Recruitment has be come an important element in human resource management. That does not end with recruiting the right person but how to ensure effective management of employee’s performance. With respect to training and development, the challenge is developing and implementing

suitable  training programmes so that the employees are well- equipped to handle challenges ahead (Nelson, 2005:2) offering the best possible compensation package is in itself a challenge.

Training and development like any other business activity is expected to help achieve the goals of enterprises. It is an area in personal management, has received considerable emphasis in the recent  years.  This  is  an  activity of  great  importance  and  will continue to grow because of the demand of automation. Increased professionalism of workforce place new demands upon business firms, government and labour to assist in the development of qualified personnel for a rapidly changing environment.

Training  and  development  programme  describe  in systematic way the integration of specific units of instruction or training, with general development learning experiences for individuals or group under training.

It is noteworthy that Human Resource management is an extension of Human relations theories types of management though with slight different. The human resource movement believes that the social environment of employees through

informal  work  group  has  good  influence on  productivity. They discovered that beside the need for money, people have a need to feel that they are accepted and they belong. (Akpala, 1990:24) Human Resource management’s area of responsibilities include concern with employee;s morale, real understanding of the complexities on human innovation, proper Orientation and training, understanding of learning theory and behaviour modification, understanding of psychological process, personality theory, individual behaviour, impact of formal group and group dynamic.

However, for any organisation to forge ahead, it must identify and  analyse  problems  and  factors  surrounding  it  and  where human resources development can solve them economically, they should be planned for and executed.

Basically, on this background, this study is set to compare human resources  management  practice  in  Federal  Ministry of labour  and  productivity and  Zenith  Bank  Plc  both  public  and private organisation respectively.

1.2    STATEMENT OF PROBLEM

There are glaring evidence that human resources are poorly managed in most private and public sector organization. This is evidenced by constant strikes, protracted labour management disputes, work stoppage and the likes in most private and public organization. In the organizations under review, human resources planning is hardly conducted before recruitment and selection. This results often in poor recruitment and selection.

To make matters worse, some organization do not have employee training and development programmes, even when they do, the wrong persons are often sent on training and development, and often for courses that are not relevant to the organizations/the individual employees work scheduled.

Moreso, management – employee relation is not satisfactory in many organizations. further, the human resources practices in the public and private sector economy tends to differ, with one concentrating on profitability while the other seeks public interest.

Finally, many organizations do not have effective and efficient social securities schemes for their employees.

Based on the foregoing, this study seeks to compare the Human Resources management practices in private industry and the public sector as its focus.

1.3    OBJECTIVE OF THE STUDY

The major objectives of the study are as follows:

i)To make a comparative examination of recruitment, selection and placement of employees policies   in both private and public sector organizations.

ii)To  draw comparison on employee training and development programme in these organizations.

iii)To make a comparative assessment of compensation and reward systems in both types of organizations.

iv)To analyse comparative management – employee relation in both types of organization.

v)To compare social security schemes in both private and public organization.

vi)To bring to the fore, the cause of planlessness by some organizations in the recruitment and selection of employees.

1.4    RESEARCH QUESTIONS

The following questions will be addressed in this study:

1.In what ways do recruitment, selection and placement policies in the private sector differ from the public sector organizations.

2.What is the nature of training and development programmes in private sector and public sector organizations.

3.To what extent are compensation and reward systems in both private and public sector organizations comparable?

4.What  are  the  management-employee  relations  practices  in private and public sector organizations?

5.What is the nature of the social security schemes in both the public and private sector organizations?

1.5    HYPOTHESES

The underlisted hypotheses are formulated to guide this

study:

Ho1:The  recruitment,  selection  and  placement  policy in  public sector is not different from that of the private sector

organization.

Ho2:Training and development programme in public sector is not different from the training and development programme in private sector organizations.

Ho3:The compensation and reward systems in both private and public sector organizations does not vary to a large extent.

1.6    SIGNIFICANCE OF THE STUDY

This study is useful in many aspects. Firstly, management of corporate organizations will find it very useful in the sense that human resources management is now considered to be a matter of concern for corporate managers and directors. It is largely as a result of its challenges in various dimensions. The information provided in this study will be used by management to formulate and implement effective policies in respect of human resource planning, training and development, compensation and reward, management-employee relations as well as social security schemes. The recommendations will be useful here.

Secondly, the government will find the information in this work very important as it will help address the problem of human resources management in the public sector. These recommendations proffered will to a large extent provide useful guide on how this new concept will be implemented effectively in government organizations.

Thirdly, the study will also be useful for academic purpose. It will not only serve as a bank for those who will carry out related study in future but its findings can also provide the basis for further studies.

1.7    SCOPE AND LIMITATIONS OF THE STUDY

The focus of this study is on human resources management practice in private and public sector organizations. Thus, its scope includes human resources planning, training and development, compensations, management-employee relations and social security relations and social security relations and social security scheme. The organizations of focus are Federal Ministry of Labour and productivity and Zenith Bank Plc.

These establishments are located in Enugu metropolis. In carrying out the study, the researcher encountered some limitations.

Firstly, some of the employees of the organizations could not co-operate with the researcher. Their refusal to complete the questionnaires or be interviewed to complete the questionnaires or be interviewed limited the amount of primary information available for the study

Secondly, the researcher did not have much money at her disposal in the course of the study. Thus has the affect on frequent transport to the organizations.

Thirdly, there is the problem of limited time of the completion of the study. Because of academic pressure on the researcher.

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