THE CHALLENGES OF GLOBALIZATION ON HUMAN RESOURCE MANAGEMENT (CASE STUDY OF FBN NBC CMD ASCON ITF NIPSS)

ABSTRACT

The aim of this study is to identify the challenges facing human resource management in this age of globalization with a view to projecting the needs of human resource departments in every organization  whether  publicly  or privately  owned.  Human resource management is an essential factor in the attainment of organizational objectives especially in any manufacturing and technological country or environment.    In  order  to highlight  the foregoing  objective,  the survey method of research was employed in the study. Both primary and secondary sources of data were utilized in gathering relevant information. The primary sources consist of the questionnaire  and oral  interview  while  the  secondary  sources  were  gathered  from existing literature on the subject matter of the study.

Tabular presentation of data analysis was used whereby the effect

and relationship of one data analysis was used whereby the effect and relationship of one data with another was being quantified by simple percentile presentation. The study has proved that the challenges  of globalization  on human  resources management  are; inadequate funding, non computerization of human resource department,  rapid  spread  of shocks  and disturbances  due  to civil unrest, multicultural behavior and draconian religious laws.   Finally, the study made a case for the development of human resource departments  and  management  beyond  the  existing  level  in  the country and its learning in tertiary institutions. Pursuant to the recommendations, organizational operators should liaise with the government to ensure that the curriculum  of various  institutions  is

developed to incorporate the increased importance of the human resource management and at the same time to see to the adequate funding of the program.

CHAPTER ONE INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The   world   is   now  a   global  village.  The   systematic integration of individual, autonomous nations into the global market has been on since the mid – I9th century to World War I, assuming unprecedented dimension in the 1980s.

The 21st century has brought about profound changes in the ways in which the world’s citizens interact with each other. The emerging and accelerating trends of the global economy and  information  technology  have  been  working  to  bring  the globe together.

The world is experiencing ever stronger links within the global market caused by power forces of information technology and increased integration of trade and capital flows.

This “globalization” can be seen as an inevitable technologically driven process that is increasing commercial, social   and   political   relations   between   people   of   different countries. These countries themselves, at various stages of development are, as  it were, forced to  take account of ever

increasing interconnection of economies in the management of their economies.

Governments of countries have to prepare    their economies, reform policies undertake structural economic adjustments on a rigorous and consistent basis before they can reap the benefits of globalization.

The 21st century has brought about profound changes in the ways in which the Worlds citizens interact with each other. The emerging and accelerating trends of the global economy and information technology have worked to bring the globe together.

From the human resource management perspective, this inevitable process has created increased competition for human capital. This is perhaps the most significant challenge of globalization on human resource management.

As multinational corporations expand into other countries and compete for workers in the public sector, employees and their skills are a prime resource that may become increasingly scarce. Since public sector salaries often lag behind those of the of  the  private  sector,  it  becomes  incumbent  upon  the  public sector to develop strategies for the recruitment, retention, development, performance and compensation of its workforce, how  can  the  public  sector position  itself  as  the employer  of

choice in a potentially increasingly competitive market for employees, and how can it ensure that the workforce it develops will have the skills to succeed in the global workforce?

Many countries of the world are experiencing a tight labor market, requiring employers to develop innovative strategies to attract good employees.

Recruitment efforts that traditionally focused on enticing individuals accept jobs now must focus on finding those individuals to entice.

This can be especially difficult for the public employer who is competing with other employers within the public sector, as well as the often- higher – paying private sector. It is no longer enough to develop and post a job opening; jurisdictions competing globally must position themselves as the employer of choice. Art increasingly popular method of positioning an organization as an employer of choice is the concept of organizational branding in global human resource management. Creating an organizational brand establishes an image that is aligned with the organization’s mission, and transforms the concepts of the organization into tangible standards, and statement.  Branding  can  be  a  powerful tool  to  articulate  the character and qualities of the organization’s values and mission of globalization on Human Resource Management.

Strategies to reach a wide audience with the organization’s message  include  using  Human    Resource  Management  too such as the internet job positing site to reach out to large audiences; and government web pages to provide  potential job candidates with more information on the job and the organizational culture than would normally be available through conventional job listings.

The concept of streamlining the hiring process is one that organizations seeking to position themselves as employers of choice would be well served to embrace. Traditionally, hiring in the public sector in Nigeria is and has been a lengthy process including extensive applications and time-consuming Screening.

Ensuring a good fit between an employees skill and the skills required for current and future job is also critical. Organizations may find it helpful to identify the unique competencies required for specific jobs, and conduct skill assessments to ensure a good return on the recruitment investment. The following competencies may be relevant for human resource managers in a globalized environment.

   Integrity,

   Vision and leadership,

   Capacity for policy analysis,

   Judgment and capacity for decision-making,

   People empowerment,

   Managing performance,

   Building trust, and

   Accountability.

Organizations  may  want  to  consider  using  the competencies  not only  in  the  recruitment  phase, but also  to measure performance and results. Given the challenges of creating and maintaining a high performing workforce in a global environment, employers who are successful in identifying and recruiting   quality   candidates   must   immediately   turn   their attention to retaining those employees. Employers seeking top performers must be prepared to ensure their commitment and loyalty.

This could be possible by offering benefit focused on the quality of life issues face  by today’s workforce such as flexible or shortened work schedules, educational reimbursement, elder care benefits, and employee conveniences such as on-premise laundry   and   dry   cleaning   services,   vehicle   maintenance services, and on-site or nearby fitness centre. They are typically of little or no cost to the employer, but provide employees with life – enriching options that can add greatly to their lives.

In a global environment, an organization must ensure that its  workforce  is  equipped  and  flexible  enough  to  adapt  and excel, and that its culture supports excellence. Organizations seeking to position themselves as employers of choice in the competitive global marketplace must attend to the professional growth of their workers while creating a climate that embraces change. Training and development efforts should focus on aligning learning with organizational strategies, linking learning to  day–to–day activities  and  performance;    identifying  critical employee-development needs; and creating a continuous- learning and knowledge-sharing environment. Specific development programs may he used to create career path profiles,  deliver  tailored  training,  or  support  participation  in career- enhancing programs such as professional certification.

The opportunity to gain credentials through an employer- approved program, or obtain an advanced degree or other qualification is a career and professional enhancement that may serve  to  position  an  organization  as  an  employer  of choice. Employer  support  for  such  programs  may  not  have  to  be financial, often being allowed the flexibility of taking additional time  off, or the ability to  use employer- sponsored computer equipment to complete such programs is sufficient.

An  organization  that designs and  delivers   program  to increase employee performance, address workforce planning issue, enhance individual professionalism, or deliver skills – based  training  would  be  considered  an     organization  that focuses on the professional growth of its workforce.

In  the  global  environment,  high  performing  employees have the ability to seek employment with organizations whose values closely fit their own personal values. Thus, organizations that offer a works environment, salary and benefits packages that  are  closely  tied  to  the  needs  and  wants  of  potential applicants are far more successful than other organization.

According  to  a  study  by  human  resource  Consultant Tavers  Perrin,  top  performers  look  for  the  following organizational attributes:

   Challenges,

   Changes on the job,

   Opportunities for growth with the employer,

      Rewards system (e.g., salary increase, bonuses) based on performance,

   Autonomy to complete work assignments

Competency-based pay systems that reward results can create  a  positive  workplace  and  foster  positive  employee

morale. Compensation strategies such as pay for-performance, which  allows  organizations,  design  a  more  flexible compensation.

System  integrating  performance,  objectives, compensation, and organizational goals; broad banding, developed so that organization operating in fast changing and highly competitive environment can simplify complex and rigid classification  and compensation  systems; sill-based  pay; and gain-sharing/group bonus plans in which monetary savings from improved performance are shared between the organization and employees are all examples of systems that can be designed to support the organization’s strategic goals and missions.

The process of globalization is inevitable, flowing naturally from advances in communications transportation and other technological changes. The emergence of globalization has created many new situations and challenges that need attention. Issues including:

1. Economic disparity,

2. Shifting social norms,

3. Integrating multicultural concerns.

Depleted domestic workforces are among the priorities to be addressed in the hypotheses. While the most unattractive employment attributes for these top-performers include:

 Rules,

 Regulations,

 Policy manuals

 Long meetings,

 Job descriptions and duty statement.

Clearly  and  of  a  truth,  the  organizational  culture  is important in attracting top quality human capital in the global environment. Winning the war for talent is not just about offering competitive compensation and benefits packages. To compete in the global marketplace, an organization must ensure that its compensation, reward  and  incentive    strategies support  their strategic goals and mission.

As globalization has a great and greater impact and challenge human  resource management professionals will be called on to respond with greater flexibility to the competition for human capital.  Current development in Nigerian economy calls for proper investigation of those variables, which are normally used as references for explaining the working of any system and the formulation and implementation of variable economic polices in an organisation as applied to Human Resource Management.

1.2    STATEMENT OF PROBLEM

The nation’s economies that grow most rapidly today are those  that  have  successfully  increased  their  participation  in global Human Resource and economic activities. In the 1980s, a period when most countries of the world were undergoing stringent Human Resources Management conditions, these nations economies were enjoying relative boom in capital investment and increased industrial output because they took the following steps on:

1.      How to make human resources continuously relevant in the ever increasing change of globalization,

2.      How to cope with the trend in information and technologies in the current globalization,

3.      How  to  sustain  the  inherent  costs  and  influences  of globalization,

4.      How to re-orientate the thinking of modern managers to keep pace or align with global trend

They are today increasingly more exposed to new ideas, technologies and products, as well as being characterized by improved resource allocation and efficient production. But some countries of the world particularly third world nations (developing or underdeveloped), e.g. Nigeria (like most countries in Africa) have neither witnessed or felt the effect of global Human Resources Management nor its challenges until in recent times.

It  is  important  to  draw  attention  to  the  fact  that  a  major change has occurred, and is occurring in the world production, investment  and   trade  system  due  to  changes  in  Human Resource Management styles and Nigeria’s situation is not keeping abreast  of the process to make her benefit from these changes.

The Nigerian situation naturally leads one to ask the question as regards what can be done to address relatively quick challenges faced by Human Resource Management practice in Nigeria in this age of globalization.

1.3    OBJECTIVE OF THE STUDY

This study is designed to make a case for addressing the effects (if any) of globalization on:

1.   Human Resources Management and its benefits,

2.    To  determine how best to  understand, plan, co-ordinate, monitor  and  evaluate  global  Human  Resources Management Practice,

3.   To  ascertain  the extent to  which globalization  of Human

Resources management will benefit Nigeria,

4.   To  find  out  the  challenges  of  globalization  of  Human

Resources Management in Nigeria.

1.4    SIGNIFICANCE OF THE STUDY

This study will provide a resource material to all students of   Management,   Administrators,   Practicing   consultants   in Human Resources Management, ASCON, CMD, ITF, NIPSS, NBC, etc.

By the time this study is completed, adequate awareness would have been created as to the effects of globalization on Human Resources Management whether in the private or public sector, developed, underdeveloped or developing country, with particular reference to the Nigerian situation using existing multinationals   and   home   based   organizations   who   have standard and broad based HRM outfits.

A careful application of the conditions made in this work will help countries or organizations in a country to determine their true state of affairs at the end of any given period.

The basic assumption in this research work  is that the globalization of Human Resources Management is the pivot of a country’s growth and is being tested in the followings research questions and hypotheses.

Human Resource Management is a new title in Administration and management. The term has replaced such obsolete labels as personnel management, Labor Management, or Manpower Development and Management. The new Encyclopedia Britannica (1974) defines Human Resource Management as the management of people in working organizations as distinguished from Financial or material Management.  Human  Resource  Management  identifies  the entire   scope   of   management   polices   programs   in   the recruitment, deployment, leadership, reward, sanction and direction of human resources in an organization.

The use of the term human Resource Management dates back to 1960 when public Administrators started using the term to refer to a subsystem of management instead of using the age long practice or regarding it simply as important economic resource for production. Subsequently, scholars agreed that how people think about work, and what they consider to be important goals  in life do greatly determine their organization’s performance, and this led to improved personnel practices and proper harnessing and development of Human Resource Management.

The events that influenced and helped to shape Human

Resource Management over time are the activities of Labor and

Government Legislations in the Western Europe and the United States of America. In the late 1920s, Labor Unions, especially in the USA took the initiatives to improve wages, work hours and other aspects of working conditions for the workers.

Consequently o these matters, labor Unions engaged the Employers and Management in a series of running battles in the form of industrial disputes, which paralyzed some industrial activities and force many others to wind up. It was when management came to accept the permanence of labor unions, as well as the influence they had no corporate organizational policies that organizations began to develop their own Human Resource Management policies.

The results of the work of Behavioural scientists, like Chester Bernard, Peter Druker and many others, Espoused management theories required to achieve the coordination and cooperation necessary for effective human resources management especially in large organizations. The real impact that finally shaped Human Resources Management were Government landmark legislations in the United States in 1960s, especially such laws as the Equal pay for Equal Work Act of

1963, the Civil Rights Act of 1964 and the Age Discrimination Act of 1967. These developments help to shape the understanding   of   personnel   Administrators   that   both   the

employers and employees were inseparable participants in an organization. Each has  definite  needs and obligations, which require consideration and fulfillment. For instance, the employer wants efficient methods of production, high productivity, quality workmanship, cooperation, good morale and organizational peace. The worker on the other hand, wants job and economic security, fair wages for work done, desirable working conditions, opportunity for advancement, self-expression through participation and a sense of equity stemming from his productive role in the organization and the society at large.

Human Resource Managers have always been faced with the problems of how to choose the best strategies that would facilitate workers optimum contributions to realization of the organizational goal, hence the need to constantly up-date their knowledge and skills in the practice. It is in realization of this that the   institute   of   personnel   management   of   Nigeria   was established in 1968 as the professional body to cater for Human resources Development. Subsequently, Decree No. 58 of 1992 chartered the institute.

Given the above background, it could be seen that Human Resource Management has indeed come a long way. Little wonder it is now recognized as the most important of all the resources in any organization. Therefore, all organizations, be it

in  the  public  or  private  sector  can  only  achieve  their  goals through   the activities of human resources engaged by that organization.  This   however  depends   on   the   efficient   and effective management of the Human Resources employed. Let us go a little further to consider the topic, which this research postulates.

1.5    RESEARCH QUESTIONS

1.      Do you subscribe to the fact that the inevitable process, which created increased competition for human capital, is the most significant challenge facing human resource management? With the issue of integrating multicultural concerns coming into the picture? (This includes the existence  of  cultural  believes  and  draconian  religious laws),

2.      Do  you  think  that  lack  of  encouragement  of  research activities affects globalization of Human Resources Management in Nigeria?

3.      To what extent will inadequate funding affect globalization of  Human  Resource  Management  in  a     country  like Nigeria?

4.      Are  you  of  the  opinion  that  globalization  of  Human Resources Management can bring any positive change in the economy of a country like Nigeria?

1.6    HYPOTHESES

1.     Ho:   Multicultural concerns cross-cultural behavior and draconian religious laws cannot pose as challenges to globalization on Human Resources Management in the country.

HI: Multicultural concerns cross-cultural behavior and draconian  religious  laws  pose  as  challenges  to globalization on Human Resources Management.

2.      HO: Rapid spread of shocks and disturbances due to civil unrest is a challenge of globalization on Human Resources Management and the strategy of the “North” to retain economic power in order to continue the marginalization of the “South”.

HI: Rapid spread of shocks and disturbances due to civil unrest does not constitute a challenge of globalization on Human Resources Management and the strategy of the “North” to retain economic power in order to continue the marginalization of the “South”.

3.   Ho:  Non-computerization,  inadequate  funding  and availability of foreign expatriates to compensate depleted domestic work force cannot be regarded as challenge to globalization on Human Resources Management in the country.

Hi: Non-Computerization, inadequate funding and availability of foreign expatriates to compensate depleted domestic work force can be regarded as challenge to globalization on Human Resources Management in the country.

1.7 SCOPE OF THE STUDY

The  scope  of  this  research  work  covers  the  corporate sector of the Nigerian economy, dealing mainly with large organizations and multinationals in which there are already existing   and   well   established   HRM   practices   that   are comparable  with,  if  not  meeting  international  standards  and which fully represent the Nigerian situation as far as the private sector.   This   research   work   is   meant   to   accentuate   the challenges of globalization on Human Resources Management, which is the proposition of the topic postulates.

1.8    LIMITATION OF THE STUDY

The study of this research topic is limited to Nigeria. This study is expected to aid corporate sections of the Nigeria economy along with other initiatives, to help the country meet up with the process of globalization which is an imperative. The availability and acquisition of materials, i.e, published articles, write ups, printed papers and other necessary sources of information with which to carry out thorough investigation and analysis of the subject matter are not easily available.

This is due to the fact that the issue of globalization is rather very fresh and as such not so much enquiries have been carried out in that area of endeavor. In addition, the economic factors in the country mainly characterized by the ever depreciating value of the naira with the attendant inflammatory upsurge which erodes the purchasing power of an average Nigerian have contributed in no small measure to the limitation of  adequate  resources  needed  by  the  researcher  to  explore wider avenues in soliciting relevant information to justify the envisaged coverage of the study.

Consequently, all the economic factors within the country and the ever depreciating value of the naira with its attendant inflationary upsurge which erodes the purchasing power of an average Nigerian have contributed in no small measure to the limitation  of  adequate  resources  needed  by  the  research  to

explore wider avenue in soliciting relevant information to justify the envisaged coverage of the study.

1.9    DEFINITIONS OF TERMS

   ASCON6

Administrative Staff College of Nigeria

   CMD

   Center for Management Development

   FBN

   First Bank of Nigeria,

   ITF

   Industrial Training Fund

   NBC

Nigerian Bottling Company.

   NIPSS

National Institute for policy Strategic Studies

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