INFORMATION TECHNOLOGY AS AN AID TO HUMAN RESOURCE MANAGEMENT IN NIGERIA CASE STUDY OF NIGERIA BREWERIES PLC 9TH MILE

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ABSTRACT

This     study was  based  on  the information  Technology  as  an Aid to the human Resource Management in Nigerian Breweries Plc

The research work was divided into five chapters. Chapter one dealt on the background information such as the purpose of the study. The research questions and the historical background of the Nigerian Breweries Plc. Relevant  texts  were  used  to  review  related  literature  in  chapter  two. Chapter  three  dealt  with  methods  of  data  collection  for  the  study population size and design of the questionnaire. Chapter  four  elect  with  the  presentation  and  analysis  of  research findings, while chapter five is conclusion and  recommendation. From the  study, it was  agreed  that there is a need to periodically measure the  IT literacy  level  in  the  company and    also  guidelines    as  regards  IT training/infrastructure/ policies   should be adopted . The study also  revealed that HR are not currently involved in IT issues and that  HR function is not prepared for the challenges of the global markets leveraging on it. Based on the finding, recommendations were made

CHAPTER ONE

1.1   INTRODUCTION

The role which technology plays in enhancing economic and business activities of both the private and public institutions cannot be overemphasized. The origin of hyormation technology dates back to 3000 BC, but technological advancement of modern days has brought a new face and applications of technological information system. While it has opened up opportunities that would have gone undiscovered or neglected it has saved many organizations millions of perpetrated fraud through its applications. The use of technology now makes such technical jobs such as accounting, data processing, modeling, construction, forecasting and other services more interesting, attractive and less cumbersome.

According to Wikipedia free encyclopedia “technology is the usage and knowledge of tools techniques, crafts word technologia- “technology is “art”, “skill” or the branch of knowledge of a discipline. In the narrow sense, technology can be described to mean the industrial processes that succeeded craft operations

Broadly speaking however, one can refer to technology as any process that deals with materials. It is also an off shoot of science.

What is information technology? The term information technology came out to break the monotonous conception that computers can only be used to do  numerical analysis and  solve  numerical equations. To  the  layman the computer is basically an accounting or engineering tool. At best use for storing

data and provide easy retrieval of such data when needed. According to Oliver and Chapman 91990:122), information technology “is the technology which supports activities involving the creation, storage, manipulation and communication   of   information   together   with   their   related   methods, management and applications. Computer however, plays a significant role in information technology.

According to Oliver and Chapman (1990:99), “a computer may be defined as a device that works under the control of stored programs, automatically accepting storing and processing data to provide information that is the result of the processing”.

Information technology is important to the operation of all organizations (both social and commercial) since it provides the means to efficiently achieve objectives. Information technology is a broad multidisciplinary subject. It includes the range of strategic managerial and operational activities involved with all those technologies that gather handle, distribute and use information (as exemplified by the internet). It involves a considerable human activity, and it is this aspect a considerable human activity from computing.

Those who study IT will require an understanding of the business and social framework of technology as well as the technical competence to feel comfortable with its deployment.

Information  is  required  in  any  organization for  planning,  controlling decision   making   stated   by   Art   Brooks   (2004:21)   “Human   Resources

Information technology is essential for companies to manage their benefits plans and their employee information.

Benefit management technology is no Longer a “nice to have” but a necessity to help HR manage both a sea of information and the money and the money spent on benefits plans as HR faces limited resources and constantly changing data”. This can be achieved through the use of the computer and the application of Management  Information  System  (MIS),  Electronic  Data  Processing  (EDP), Office Support System, Data Process system and Decision support system and packages.

Information processing now extends the capability of the system to commutation everywhere in the business research on the web to select best practices in all disciplines around the world in minutes. It then can be said to be the use of high performance accurate electronic tool (machine pad software) to assist not only in processing high volume of data but also storage of large information which enables easy communication across the business terms commonly   used   in   I.T.   includes   (MIS)   which   emphasizes.   Customer management (both internal and external) business volume, cost and profit control.

What is Human Resource Management

Background of Human Resource Management. (HRM)

Sine Mayo (1933:1) and his research group at Western Electrics Hawthorne plant discovered that the human aspects of work as opposed to physical or working conditions, determine productivity at work. Management

theorists, industrial psychologists, personnel management/human resource management professionals and managers in general have relentlessly sought the best ways to improve interpersonal relationships towards enhancing productivity. Since (HRM) ie human resource “Management has been described as the function of /in the organization which facilitates the effective use of people to achieve organization as well  as individual goals” (vancerich and Glueck. 1986:3), it can safely be posited that HRN) process is central to the search for the acceptable and effective model(s) for extracting beyond average performance from employees. Susan .I). it, (2010:2), in her article opined that “HRM is the organizational function that deals with issues related to people such as compensation, using, performance management, organization development safety wellness benefits, employee motivation, communication, administration and training”. These definitions are all geared towards effective and efficient deployment of human resources towards achieving the organizational goal.

The employee of managing people at work; closining effective tools and techniques for acquiring and utilizing human resources towards the achievement of the organizational goals is by no means an easy one.

Human Resources Management is a body of knowledge and industrial practice, procedures and programs employed in the acquisition and utilization of Human Resources towards the achievement of the adopted goals and objectives of organization.

HRM problems occurs before during and after organizational tenure of employees. It is complicated by the occurrence of individual differences, preferences, perception, personality, the task and that environment is constantly changing such that HR managers must rely on knowledge flowing across a number of discipline especially in the social and management science. HRM is a unique branch of knowledge, profession and infact the oldest of disciplines.

HRM can also be classified under staffing function which involves preparation of jobs, job analysis, job description, job requirement, job specifications, job standards, HR planning recruitment, selection, induction, placement and transfer Maintenance function which involves; motivation and emotion, leadership, target setting and appraisal, compensation, transferring and development labour relation function which includes’ (employee grievance and complaints, conflict and resolution industrial communication and joint consultation organization survey, career management and succession planning organizational development intervention)

Other issues which are planning the challenging notion of personnel management could be

i.       Declining of work ethics

ii.      Individuals development for self fulfillment

iii.     The increasing internationalization of commerce globalization iv.     Different abilities skills, talent, likes and dislikes.

v.       The   conflicts   between   social   responsibility   and   the   bottom-line accountancy

What is the common factor between IT and HRM

HRM like other disciplines has to take full advantage of the capabilities of the information highway through information technology.

According to Craig A. and Wendy C. 2010: 1 HRM on the internet “is an excellent resource for researching HR service capabilities, can be used conduct business which simplifies HRM

1.2   STATEMENT OF THE PROBLEM

The Human Resource function is yet to take full advantage of the capabilities of information technology, they regard it as a storage and word processing medium and best still keeps their record manually along side the computer database. This still leads to inefficiency in HR management.

If a company aspires to compete in the global environment, (to be world class) without taking full advantage of IT, then their aspiration both in terms of HR and other resource management can never be met.

1.3   PURPOSE OF THE STUDY

The purpose of this study is to examine the effect IT literary has on

Human Resource Management policies and practices.

1.4   RESEARCH QUESTION

This research work tends to answer the following question:

1.      Can IT literacy level be measured?

2.      Is there a standard for measuring IT literacy in the company?

3.      Is       there       any       guideline       adopted       as       regards       IT

training/infrastructure/policies in the company?

4.      Is the guideline available to all (HRM)?

5.       Are HRM personnel part of the making and adopting of IT policies and practices?

6.       Are   IT   personnel   involved   in   the   planning,   procurement   and implementation of IT software that guide and direct HRM policies and practices?

7.       Is IT used in the communication and implementation of HRM policies and practices?

8.       Is HRM able to deal with the challenge of global markets, to embrace new technology to innovate, provide leadership in managing chance and meet new challenges?

1.5   SCOPE OF THE STUDY

Information technology serves as the central part of the business, linking customer services (sales), marketing. Human Resource finance and production. The impact of IT is felt in all aspects of business activities.

This study is meant to cover the impact of IT in all aspect of business activities which will not be possible be possible because of its wide scope. This

study will be based on how IT would assist Human Resource. To maximize company output.

The  selection  is  based  on  convenience reasoning  and  not  based on statistical sampling.

1.6   LIMITATIONS OF THE STUDY

It will not be an easy task getting adequate and sophisticated information and data from blue dip companies because of their high level of secrecy which is geared toward preventing the disclosure of their secrets to their competitors. Jones A., said (1984:7) “the success of any operations is the secretes. Failure to make them a secrete is failure to make them a success”. Therefore, in this case, availability of required data may not be gotten at 100% level as expected.

“there may be limitation due to funds required to carry out the research in trying to obtain primary information

The objective may not be fully adieved due to the wide scope of IT and

HRM.

1.7   STATEMENT IS HYPOTHESIS

This  study  is  exploratory  therefore  the  researcher  did  not  consider testing of hypothesis as a case.

1.8   SIGNIFICANCE OF THE STUDY

It will be of importance to HR department. Department as information and communication technology have been seen in many ways to assist in process  reengineering.  Also     workflow  designs  have  helped  to  simplify

bureaucratic bottlenecks experienced in day-to-day decision making processes in the HR function.

Therefore, taking full advantage of the facilities provided by IT can completely  relieve  the  HR  function  of  routine  tasks  of  leave  and  loan processing, communication of policies computation of salaries and adjustment employee medical database, security and protocol, manpower recruitment and training.

Annual leave processing presently takes about two weeks and for leans takes even longer time. The applicant is completely in the dark during this period and therefore relies on the speculation that “it will soon be ready”. With IT, the story has changed.

1.9   METHODOLOGY

Primary  and  secondary  data  gathering  technique  will  be  used  in collecting data. Personal structured interview will also be used. Effort shall be made by the researcher to study every available document.

1.10 AN OVERVIEW OF THE NIGERIA BREWERIES PLC (NBL)

The Nigeria Breweries plc, the pioneer and largest brewing company in Nigeria was incorporated on the 16’th November 1946 under the companies ordinance, cap 38 as Nigeria Brewery limited. On the 7th  January 1957, the name of the company was changed to Nigeria Breweries limited. In 1990, when the companies and Allied Maters Act of that year came into force, the name of the company was further changed to Nigeria Breweries PLC.

Nigeria Breweries PLC is a subsidiary of Heineken International B.V which has a 54.10% interest in the equity of Nigeria Breweries PLC, recorded a landmark when the first bottle of STAR larger beer rolled off the botting lines in its Aba Brewery which was commissioned in 1957 Kaduna Brewery in 1993 and Ibadan Brewery in 1982. in September 1993, the company acquired its fifth brewery sited at Ama in Enugu was commissioned. Ama Brewery is the larges brewery in Nigeria and one of the most modern worldwide. However, operations at Enugu was discontinued in 2004, leaving the company with five operational breweries.

Thus, from its humble beginning in 1946, the company now has five breweries from which its high quality products are distributed to all parts is this great country.

The company consolidated its principle activities of brewing and marketing larger, stout and non-al-coholic malt drinks

COMPANY EQUITY

With  about  66,469  shareholders, the  authorized share.  Capital  of  Nigeria Breweries PLC as at 31 December 2002 in the tune of N2 billion. The issued and fully paid up share capital was 3, 781 203, 934 ordinary shares of 50k each. Of the registered members, only the Heineken Group having 2,045, 630,

426 shares (representing 54.10%) held more than 10% of the issued share capital as at 31 December 2002. the remaining 1, 735, 573, 498 shares were held  by  Nigerian  citizens (representing 45.9%) amongst  who  are  company employees of various categories.

As at 31st December 2008 with about 129,000 shareholders, the equity grew to authorized share capital of N4 billion, divided into N8 billion shares of

50 kobo each. The used capital standing at N, 781. 281, 170 divided into

7,562, 562, 340 ordinary share with Heineken N.V. Group Still maintaing their holding of  54.10%: 45.90%  by  ordinary Nigerians, foreign individuals and associations.

The company’s turnover for the financial year ended 31st December, 2008 was N145.5 billion. The operating profit was N36.8 billion and it paid out a total  dividend  of  N25.7  billion,  that  is,  3.40  kobo  per  50  kobo  share  as compared to N2.10 kobo paid per 50 kobo share in 2002.

Nigeria Breweries PLC is a model of success in the private sector. The company’s successful operations can be traced to good product quality efficient management of operations and strategic penetration into the market environment. Other are proper understanding of customer attitudes and habits and high social responsibility profile at national and zonal levels.

Brand Portfolio

Nigeria breweries has a rich portfolio of high quality brands: Star larger beer (1949); Gulder Larger Beer (1970); Maltina (1976); which now has three verities, namely maltina classic Maltina straw berry, and Maltina with pineapple; maltina Sip- it (2005), which was packaged in trapaks; legend extra. Sout (1992); Amstel Malta (1994) and the Schweppes range of carbonated soft drinks (Schweppes Bitter Lemon, Schweppes Tonic Water and Schweppes soda water) Launched in December 1996 this was followed in November 1997 with

the  introduction  of  crush  orange.  In  June  1998,  the  company  launched

Heineken larger beer into the Nigerian market.

The Nigeria Breweries operates many related companies, including beverage- related manufacturing companies making corks, labels, bottles, packaging crates and a logistics network, including transport companies ware housing companies and retail sales.

EXPORT

Nigeria breweries plc has an increased export business that dates back to 1986. presently they export to the U.K., U.S.A, Itaily, Netherlands, Germany, Ireland and Kenya.

Research and Development

Nigeria Breweries PLC keeps pace with key international developments, thereby ensuring that its systems, processes and operational procedures are always in conformity with proven best practices in most parts of the world. It is in line with this policy that the company established a Research and Development centre in 1987 to improve its research activities on all aspects of the brewing operations.



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