IMPACT OF GLOBALIZATION ON HUMAN RESOURCE MANAGEMENT PRACTICES IN NIGERIA ORGANIZATIONS(A CASE STUDY OF MTN AND GLO TELECOMMUNICATIONS)

ABSTRACT

The emergence of globalization has brought in new opportunity to developing countries; greater access to developed countries markets and technological transfer hold out promises for improved productivity and broad based human resources. These developments have brought about global changes in the Business World today which in the area technological transfers, human capital development and improved well being of man kind has made globalization evolutionary. The human resource manager, has to be innovative, dynamic and abreast with the task of management to inculcate the right attitude to the human resource towards the quality of service delivery. This  will be  done taking cognizance of  operating environment and  infrastructural provision  in  major  globalized  companies  like MTN and GLO who are giant players in the telecommunications industry, a fast growing sector in Nigeria’s economy. The study, therefore, set out to investigate the impact of globalization on human resource management. In other to do this, MTN and Glo were comparatively x-rayed in terms of human resources management  policy,  human  resource  philosophy  and  operating  environment factors. The  overall objective was  to  reveal the  influence of  globalization on human resources policy of an organization, determine the extent to which the present human resource managers have applied the revolutionalized management theories and practices to new work position, ascertain if there are adequate infrastructure for the human resource to embrace technological changes, find out if the quality of service delivery changed in the wake of globalization vis-à-vis the telecommunications industry. The research design adopted on the study was the survey method. The instrument for data collection used was the structured questionnaire. A sample size of two hundred and ten (210) was used for both companies  using  Taro  Yemeni’s  formula.  The  pre  and  post  human  resources

development practices were compared and subjected to statistical analysis using chi-square statistics to test for significance. Out of the two hundred and seventeen (217) copies of the questionnaires distributed, two hundred and ten (210) copies were duly filled and returned by respondents in both companies with MTN having 110 while Glo had 100. The data collected from questionnaire was analyzed using chi-square method. The test of the hypothesis was performed using chi-square the t-test distribution at 0.05 level of significance. Result from the test of hypothesis showed that globalization has improved organization’s human resources policy and philosophy. More so, convincing facts emerged that infrastructural adequacy improved  the  embrace  of  technological  changes.  Furthermore,  the  quality  of service delivery improved in the wake of globalization.

CHAPTER ONE INTRODUCTION

        BACKGROUND OF THE STUDY

Globalization is the new phenomenon that has come of age to dominate the world since the nineties of the last century. It has acquired considerable emotive force. Some view it as a process that is beneficial – a key to future world economic development and also inevitable and irreversible in states with increased reliance on the market economy. Some see it as a process of structural adjustment spurred by the studies and influences of the World Bank and other International Organization Ofili (2004: 53).

Nnadi (2010:183) Observes that at the present time there is a greater need for effective international and cross – cultural communication, collaboration and cooperation, not only for effective practice of management, but also for betterment of the  human condition. The  emergence of Globalization has  brought in  new opportunities to developing countries, greater access to developed countries markets and technology transfer hold out promise for improved productivity and higher living standard. But, negatively, globalization has also thrown up some challenges  like  grooming  inequality,  volatility  in  finance  and  environmental

deteriorations, the introduction, has opened up economies, creating opportunities and better private partnership involvement within nations Moratt (2004: 25).

Globalization brought a change that is currently affecting the physiology of human society today through its imposition of constraints of policy –  making autonomy or independence of states vis-a-vis their capacities for the authoritative allocation of scare and critical societal of resources among other functions Aimiuwu (2004: 30).

A global change in the business world today in the areas of technological transfers; human capital development and improved well been of human kind has made   globalization   an   evolutionary   trend   and   the   epic-centre   of   most developmental and intellectual discourses Ohiorhenuwan, (1998: 98).

The impact of globalization on human resource has increased transfer of technology and changed the attitude of human capital. For instance, services have improved with ease, access to information at a limited time without having to make long  movements  and  manual applications  drastically  reduced  in  the  Business World. Nevertheless, the challenges brought about by these sheer socio-economic interconnectivity is  what compels the attention of this  research which will be carried out to discern and obtain as far as possible the extent to which results of this study will accord with these deduced generalizations and suggestions.

Essentially, the study therefore, will focus on the impact of globalization on human resource with particular reference to M.T.N. and Glo Nigeria organizations which are telecommunication companies in Nigeria.

Historical Background of MTN Nigeria

MTN Group Chief Executive, Phuthuma Nhleko and his management team led MTN’s expansion strategy in pursuit of new telecommunications licenses

across the rest of Africa and internationally and provide support to all MTN’s operations outside the South Africa.

As one of the most enterprising operators to enter the cellular area in Africa, MTN  has  duplicated  its  outstanding success  from South  Africa  in  its operations in Rwanda, Uganda, Swaziland, Cameroon and Nigeria. On May 16,

2001, become the first GSM network to make a cal following the globally lauded Nigerian GSM auction conducted by the Nigerian Communications Commission earlier in the year. Thereafter the company launched full commercial operations beginning with Lagos, Abuja and Port Harcourt.

MTN paid $285m for one of four GSM licenses in Nigeria in January

2001.  To  date,  more than US  $1.8 billion has  been invested building mobile telecommunications infrastructure in Nigeria. Aimiuwu (2004).

Since launch in August 2001, MTN has steadily deployed its services across Nigeria. It now provides services in more than 223 cities and towns, more

10,000 villages and communities and a growing number of highways across the country, spanning the 36 states of the Nigeria and Federal Capital Territory, Abuja. Many of these villages and communities are being connected to the world of telecommunications for the first time ever. Aimiuwu, (2004).

The company subsists on the core brand values of leadership, relationship, integrity, innovation and can-do. It prides itself on its and ability to make the impossible, connecting people with friends, family and opportunities. MTN Nigeria also recently expanded its network capacity to include a new numbering range with the prefix 0806 and 0703 making MTN the first GSM network in network in Nigeria to have adopted an additional numbering system, having exhausted its initial subscriber numbering range – 0803.

Historical background of GLO

Glo Nigeria was the Second National Operator (SNO) granted operation license by the Nigeria National Communication Commission (NCC) on August 12,

2002. The motive is to create an alternative network to the government owned NITEL, whose service delivery was ineffective. Globacom paid the mandatory 200 million dollars for the license before the August 30, 2002 deadline. The license involves the following;

National Carrier Services, Digital/Mobile Service, Long Distance Communication, and Fixed Wireless Access Service. Obligation to be  met by Globacom includes the provision of 150,000 digital lines on its mobile network within first 12 months of operation. In trying to meet the challenges of its predecessors in the GSM industry. Globacom signed interconnectivity agreement with MTN Nigeria and appointed 006 – 350 dealers nationwide. On Friday 29th August 2003, Globacom now known as Glo mobile, rolled out her own services at Abuja, Nigeria’s Federal Capital City (FCT). True to their billing system, they introduced per second billing system with a tariff of Sokoto per second for the pay- as-go subscribers.

Currently, so many products and promotion have been introduced like the

Glo classic, premium classic packs, 39 phones network.

        STATEMENT OF THE RESEARCH PROBLEM

Globalization  is  one  of  the  most  contested  topics  in  social  sciences, observers and theorists of globalization have variously argued that the rapid increase in cross-border economic, social technological and cultural exchanges can be civilizing, destructive or feeble. Intuitively, globalization is a process fuelled by, and resulting in, increasing cross – border flows of goods, services, money, people, information and culture.

The  world  human resources need  to  be  developed in  the  areas  of  new technologies to fit into the heart beat of the moment. In this era of globalization, Human Resource Management in  a  fast  IT  developing  nation  like  Nigeria  is becoming very complex; managers are faced with new technological applications while human resources are challenged with the techniques and abilities to adjust to those developments.

Consumers, wants to be abreast with the global trend of 3G (Third Generation) Phones, palm coders, e-technologies which is fast taking over the IT world. It has thus become imperative that consumers’ interest is of essence.

Nigeria, a developing nation, with incessant breakdown of her power generating  stations,  and   the   inherent   epileptic  power  supply  will   require consistency to effectively meet global standard of operation as such effort has to be made to ensure consistency. Also introductions from leading telecommunication companies have left Nigerians asking for better and quality access to inter-switch from one network to the other in terms of browsing on phones, ringing tones, wireless applications, Blackberry, e-care multimedia access etc. Everyone would therefore need to become familiar with computer applications and data processing whether at  home, office, school or factory. Nigeria need a new  generation of professionals and these individuals should not be experts in their fields only, but also  globally active. So,  it  is  believed that the  philosophy of  globalization if properly embraced and applied, will be able to address the vast challenges facing the human resource mix and will obviously re-position IT System in Nigeria.

Therefore, the main problem of this research is to investigate the impact of globalization on human resources policy in organization, applicability of revolutionalized  management  theories  to   new  work  position,  adequacy  of

infrastructures,  quality  of  service  and  cultural  challenges  in  the  wake  of globalization in the telecommunications industries.

        OBJECTIVE OF THE STUDY

The objectives of this research are as follows:

           To determine the level of influence of globalization on human resources policy of business organizations’.

           To find out the extent to which the present human resources managers have applied the revolutionalized management theories and practices to new work position.

           To find out if there are adequate infrastructure for the human resource to embrace technological changes.

           To find out if the quality of service delivery has changed in the wake of globalization in the telecommunications industry.

        STATEMENT OF THE RESEARCH QUESTIONS

The research questions for this study are clearly stated as follows:

           What is the level of influence of globalization on human resources policy of business organizations’?

           To  what  extent  have  the  present  human  resource  managers  applied  the revolutionalized management theories and practices the new work position?

        Are  there  adequate  infrastructures  for  the  human  resource  to  embrace

technological changes?

           Has the quality of service delivery changed in the wake of globalization in the telecommunications industry?

        STATEMENT OF THE RESEARCH HYPOTHESES

The hypotheses for this study are stated as follows:

           H0:    There is no relationship between the level of influence of globalization and an organization’s human resource policy.

        H0:    There is no relationship between the applicability by

human resource managers of revolutionalized management theories and practices and new position.

           H0:    The embrace of technological changes by human resource is not dependent on adequate infrastructure.

        H0:    There is no relationship between the quality of service

delivery in the telecommunications industry and globalization.

In  this  study,  H0:  Which  is  the  null  hypothesis  was  tested  to  arrive  at conclusions that would serve as basis for generalization.

        SCOPE OF THE STUDY

The telecommunication Sector of Nigerian economy is made up of companies like MTN, Globacom, Celtel, M-tel, Starcom, Reltel, Bourdex wireless, Accelon, NITEL and other companies too numerous to be mentioned. The telecommunication sector is broken down into the following service categories:

National Carriers, Mobile Telephony, Fixed Telephony (wireless), VSAT Networks, and Internet Service Providers (ISPS).

In other to carry out purposeful and directional research, and also for reasons of accessibility and availability of data, this research gave credence to telecommunication companies that  are  globalized  in  nature  and  falls  into  the service category of Mobile Telephony. It was based on this yardstick that MTN Nigeria Limited and Glo Nigeria Limited were selected as case studies and scope of this research.

        SIGNIFICANCE OF THE STUDY

           The  knowledge gap  here  will be  in  identifying the  barriers confronting modern   day   management   by   business   owners   and   advance   useful suggestions that may help the fast growing situation.

           The study will also prepare personnel managers with the right knowledge in the application of methodologies of management at any time.

        The study will awaken the minds of government in the provisional roles and

Public Private Partnership (PPP) and provision of infrastructures.

           The  study  will  also  awaken  the  employee  to  the  global  demands  and challenges of the new world order.

           The study will create the knowledge that will challenge the pro-activeness of individuals, government and other stakeholder in the IT industry about the price of globalization.

           The knowledge of this will benefit researchers, students of management, global management and international resource management who will apply the information positively in the fast changing and growing business world of the 21st century.

        LIMITATION/CONSTRAINTS OF THE STUDY

A study of this nature certainly have numerous drawbacks on its way: They include:

           Financial Constraints – Due to financial constraint, the study was carried out in MTN and Glo major friendship center in Enugu State. As such, this may not allow for wider generalization of the results of the study.

           Time Constraints – A study of this nature would normally require years to put together. That luxury of such time was not there for the work has to be carried out within a limited time frame.

           The indifferent attitudes of respondents and corporate bodies are a serious stumbling block.  Nigerian Corporate bodies  have  not  fully  developed a culture of providing relevant information on their activities for research purposes.

           Dearth of Materials – Though the topic is not a new topic in the broad area of management   and economics, getting recent textbooks and other research materials like journals and periodicals that addressed the issue of study are extremely difficult. Based on this, one will resort to internet sources which are bedeviled with numerous technical problems.

           Statistical Limitations – There is always a sampling error. The personnel interview mentioned has the limitation that respondent may give answers that first came to their minds.

        OPERATIONAL DEFINITIONS OF KEY TERMS

Globalization – This is defined as the movement of people, ideas, products, services, materials, information and technology from a parent company in one country to a subsidiary company in another country.

Human resource management – This  is  the  management of people at work. Management is the act of planning, staffing, leading, controlling, researching and developing and innovating. MNC – This means Multinational companies. TNC – This means Trans national companies.

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