THE IMPACT OF HUMAN RESOURCE MANAGEMENT IN UTILITY ORGANIZATIONS IN NIGERIA (A STUDY OF POWER HOLDING COMPANY OF NIGERIA ENUGU)

ABSTRACT

This research work is “An  Assessment of the  Impact of  Human Resource Management in Utility Organizations in Nigeria: A Study of Power Holding Company  of  Nigeria  (PHCN)  Enugu”.  This  study  attempted  to  determine whether  the  public  sector  environment  and  the  policy  framework  of  a developing  country  like  Nigeria,  adopted  and  practiced  effective  human resource management. The principal objective was to determine on how to improve the human resource management process in the utility sector and identify strategies which the government could adopt so as to effectively apply human resource management in the public sector. The purpose of the study included; Identifying the human resource management process in the utility sector. Determining how  to  improve on  the  human resource  management process in the utility sector, Identifying benefits derived from effective human resource management, Identifying strategies which the government could adopt to effectively apply human resource management in the public sector.  In order to answer all these, a survey research was conducted by the researcher; a sample size of 257 was drawn from three Business units of the PHCN in Enugu metropolis. In the data analysis the following were some of the findings; That human resource management process was not properly followed in the power sector, That to improve in the human resource management process in the power  sector;  the  government  has  to  be  sincerely  committed,  That  high employee performance, quality service delivery and good employee relations are part of the benefits obtainable from effective human resource management, That    institutionalizing    human    resource    management    and    creating implementable human resource management policies are part of strategies which the government could adopt in effectively applying human resource management in the power sector. Based on these findings, the researcher made the following recommendations: Efforts should be made to de-personalize and de-politicize the human resource management process, Government should invoke the political will and sincerely commit itself to the effective application of the human resource management process in the power sector. -Efforts should be made by the legislators to institutionalize the human resource management policies in the public sector, Government should ensure a regular financial audit made public to Nigerians and a regular scrutiny of all the activities going on in the power sector to ensure standardization and accountability in the sector.  Conclusively,  human  resource  management  involves  working  with people so that they and their organizations reach full potentials even when change   precipitates   the   need   to   acquire   new   skills,   assume   new responsibilities, and form new relationships. Therefore, human resource management cannot be over emphasized.

CHAPTER ONE

INTRODUCTION

•      BACKGROUND OF THE STUDY

The term “Human Resource Management” HRM has been subjected to considerable debate. The concept is shrouded in managerial hype and its underlying philosophy and character is highly controversial because it lacks precise formulation and agreement as to its significance. Nonetheless, definition of the subject matter is given according to Bratton and Gold (1999:11) as that part of the management process that specializes in the management of people in work organizations. Human Resource Management emphasizes that  employees are  critical  to  achieving sustainable competitive advantage, that human resources practices need to be integrated with the corporate strategy, and that human resource specialists help organizational controllers to meet both efficiency and equity objectives.

Naturally, the definition of human resource management would be incomplete without further explaining what the terms “human resources” and “management” are. First and foremost, people in work organizations, endowed with a range of abilities, talents and attitudes, influence productivity, quality and profitability. People set overall strategies and goals, design work systems, produce goods and services, monitor quality, allocate financial resources, and market  the  product  and  services.  Individuals, therefore  become “human resources” by virtue of the roles they assume in the work organization. Employment roles  are  defined and  described in  a manner designed to maximize particular employees’ contributions to achieving organizational objectives. (Dr. (Mrs.) Out D.O., NOUN).

The term “management” may be applied to either a social group or a process. And when applied to a process, conjures up in the mind a variety of images of managerial work. Management may be seen as a science or as an art. The image of management as a science is based on the view that experts have accumulated a distinct body of knowledge about management which, if studied and applied, can enhance  organizational  effectiveness.  This  view  assumed  that people can be trained to be effective managers. (Dr. (Mrs.) Out D.O., NOUN).

An alternative image of managerial activity is to view management as an art. This implies that managerial ability and success depends upon traits such as intelligence, charisma, decisiveness, enthusiasm, integrity, dominance and self-confidence. The practical implications of this view are quite different from the “management as science” approach.

Human resources management issues are particularly difficult for service and utilities companies, as these companies have roles that require very specialized skills and training. Companies often have difficulty finding workers wit the necessary skills to fill the various required roles. To complicate matters, some roles that are unique to the power and utilities industry require skills that have not been in high demand recently and are becoming scarce even in the utilities workforce, (KPMG, 2010).

Utility organizations play integral roles in creating wealth in both the developed and  developing worlds. Water and sanitation, for instance, are fundamental to human sustenance, health, and dignity, and by extension to economic opportunity. Affordable and reliable energy is integral to household productivity and the development  of  most  industries,  from  agriculture  to  finance  to health care to communications.

The ultimate goal of any credible and legitimate government is to ensure  sustained improvement in  the  standard  of  living  of  the citizenry. Towards this end, the government usually evolves development plans that will facilitate effective mobilization, optimal allocation and efficient management of national and human resources. In such efforts, priority is usually given to the provision of development facilitators, such as education, health and public infrastructure (Ademola and Afeikhena, 2004).

Traditionally, changes in the national and local business and regulatory  environments  have  had  the  greatest  influence  on utilities. However, current human resources issues and those emerging over the next three to five years are having an increasing influence. Some of these issues include:

•  Massive retirement across all ranks and skills set.

•   Recruitment  challenges  from  less  interest  in  the  power  and utilities sector.

•  Declining numbers and quality of middle management.

•   Wide  division between ages  of  workers and  changing worker expectations

•  Inadequate educational infrastructure to support industry needs.

•  Lack or narrow focus in workforce planning (KPMG, 2011).

People are the assets on which competitive advantages is built, whether in the public or private sector, whether in the corporate world or in the world of education. In the words of the latest theory on human resources management, people are an “inimitable” asset. People and their skills are the one thing that competitor organizations cannot imitate. In recent years, human resource development  has  become  a  key  feature  of  the  management  of service companies.

The economic downturn has created new and urgent human resource challenges and opportunity. Addressing these issues in more  innovative ways  can  help  utility  organization manage  the business impact of human resources changes as the economy recovers. An organizational transformation lead by an effective human resource management transformation can help utility organizations realize greater benefits from addressing these challenges and opportunity. (Consortium Research Program, 2006)

1.2  STATEMENT OF PROBLEM

The services provided by the Power Holding Company of Nigeria Plc are so vital to human comfort and business progress that both organization and individuals, Consider such services as prerequisite

to both personal and economic well-being and survival. However, the utility company has been adversely affected by some important issues which must be addressed to avoid the future collapse of the company. Some of the issues are outlined below.

One of the major problems facing the Power Holding Company of Nigeria   is   the   declining   numbers   and   quality   of   middle management. Due to  the  poor  recruitment policy in  the  public sector and poor working conditions in the services, the utility company has continued to suffer the mass exodus of skilled and quality middle managers. Solution to this issue requires the commitment and implementation of effective human resource management in the public utility service.

Another disturbing issue is inadequate educational infrastructure to support the industry needs. The infrastructural system in Nigeria is in a comatose state, so also is our educational system. Our higher institutions and technical colleges have been poorly funded and when funded, they were embezzled by top managers, leaving the educational and skill acquisition systems in Nigeria in poor state. This has led to poor skilled workforce in the utility industry, which has in turn produced poor quality services to the public. Only  a  committed  policy  formulation  and  implementation  of effective human resources management at the national, state and local level could address this disturbing issue.

Lastly, is the issue of lack or narrow focus in workforce planning and employee management. Poor workforce planning and employee management has led to massive retirement across all ranks and skills with no corresponding recruitment process. All this, if not adequate addressed, would result to incessant industrial actions and overall poor service delivery in the public utility services. However, an effective application and integration of human resource management would greatly impact positively on these issues.

1.3  OBJECTIVES OF THE STUDY

The objectives of the study include the following:

•       To identify the human resource management process in the utility sector.

•       To  determine  how  to  improve  on  the  human  resource management process in the utility sector.

•       To  identify  the  benefits  derived  from  effective  human resource management in the utility sector.

•       To identify the strategies that the government could use to effectively apply human resource management in the public sector.

1.4  RESEARCH QUESTIONS

The following question will be addressed in this study

•       What is the human resource management process involved in the utility sector?

•       How can the human resource management process in the utility sector be improved upon?

•      What are the benefits obtainable from the application of effective

human resource management in the utility sector?

•       What are the strategies governments could use to effectively apply human resource management in the public sector?

1.5  HYPOTHESES

The following hypotheses are put forward for this study:

Hypothesis One

Ho:   Human resource management processes are properly followed in the utility sector.

Hi:   Human resource management processes are not properly followed in the utility sector.

Hypothesis Two

Ho:   Government’s  sincere  commitment  to  the  application  of effective  human  resource  management  can  not  improve human resource management process in the utility sector.

Hi:   Government’s  sincere  commitment  to  the  application  of effective human resource management can improve human resource management process in the utility sector.

Hypothesis Three

Ho:  Effective  human  resource  management  does  not  help  to improve and maintain quality service delivery and good employee management in the utility sector.

Hi:   Effective human resource management helps to improve and maintain quality service delivery and good employee management in the utility sector.

Hypothesis Four

Ho:   Institutionalizing  HRM  and  creating  implementable  HRM policies cannot help apply human resource management in the public sector.

Hi:   Institutionalizing  HRM  and  creating  implementable  HRM policies can help apply human resource management in the public sector.

1.6  SCOPE OF THE STUDY

This research study will examine the major issues affecting utility organizations in Nigeria as regards to the power sector, particularly the Power Holding Company of Nigeria Enugu. The study would examine the impact of effective human resource management in the utility organization in Nigeria, which is the Power Holding Company of Nigeria.

1.7  SIGNIFICANCE OF THE STUDY

This research work is significant because the knowledge and application of effective human resource management would ensure the increase in quality service delivery in the utility sector and a good employee management that would bring about harmonious working relationships between the employers and employee in the utility sector.

It would equally assist the government in its policy formulation and implementation as it affects human resources management in the utility sector of Nigeria, so as to ensure the desired organizational effectiveness in the public utility service sector.

This research work will be of immense benefit to all various stakeholders in the Nigerian public utility sector, as it would ensure ways on how to address Nigeria’s power problems and resources management in the power sector of Nigeria.

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