CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The concept of human resource management (HRM) has attracted a lot of attention from academics and practitioners alike since it first emerged in the mid-1980s. The overall purpose of HRM is to ensure that the organization is able to achieve success through people. As Ulrich and Lake (1998) has remarked, HRM systems can be the source of organizational capabilities that allow firms to learn and capitalize on new opportunities.

Human resource management (HRM) is a critical field of study, well-recognized, and high-value activity. HRM is the effective and efficient use of workers to accomplish the organization’s objectives, and it is about handling coworkers, being the human side of business administration with strategies, practices, laws and processes that influence the organization’s workers (Arulrajah & Opatha, 2016: 153). Human resource management as a profession is concerned with the effective and efficient management of an organization’s employees (human resources) towards the achievement of desirable objectives and goals. It has displaced earlier models (e.g. personnel administration, personnel management) because of its emphasis on the integration of all traditional personnel functions (e.g. job design, recruitment and selection, human resource development, rewards systems, career management, etc) and their management towards organizational strategic outcomes and objectives. Human resource management involves a perception that employees are human resources (or even human capital), not unlike other organizational resources such as finance and technology, who need to be managed in similar (and different) ways in order to achieve productivity and profitability outcomes. Specific human resource management functions then provide the means by which employees are acquired (e.g. human resource planning, job design, recruitment and selection), developed (e.g. human resource development, reward and remuneration systems, performance and career management) and ultimately terminated (e.g. dismissal, retirement and redundancy programs) according to organizational requirements. It thus involves a human resource management strategy and a human resource management plan, consistent with overall organizational strategies, which subsequently feed into each of the related human resource functions.

A global increase in business challenges and sustainability have forced many businesses across the globe to engage in researches that are best suitable for identifying the best and most trending strategies available for implementation towards gaining a sustainable competitive market (Oyedokun, 2019).

Human resources management, personal administration, and manpower development are used interchangeable to mean a concerted effort to improve the talents, skills and the capabilities of the people and how these attributes are used to achieve the developmental needs of the state. The task of human resources management is to provide positive leadership, capable of encouraging and stimulating people to willingly make effective contribution towards the actualization of state or organizational goals, and by extension to satisfy their personal needs. This task is enormous given the complex nature of the people with their different talents, ambitions, different needs, values, potentials, knowledge, skills, abilities and cultures if these complexities associated with personnel are clearly understood and effectivly managed or harnessed, then the organization or the state will succeed, but if not the states is doomed (Ikeji, 2005 and Oba, 2005).

Efficient management of the human resource is essential for the attainment of the objectives of an enterprise. This is so because it is human that runs an organization. So organizational effectiveness and or the capacity of an enterprise to adapt and maintain itself, survive, grow in the face of changing situations depends greatly on how effective its workforce (human resource) can be managed and utilize. This is anchored on the fact that human resources are the greatest asset of a society which should be well managed and utilized. Now human are treated as a resource that is as something having peculiar physiological properties, abilities and limitations that require the same amount of attention as the property of any other resource (Sharma, et al, 2012).

In the dynamic and competitive business world of today, where the exchange of ideas is proficient, a sustainable competitive advantage is no longer deep-rooted in the organization’s physical resources but in the organization’s nonphysical human resources (Emeagwal and Ogbonmwan, 2018).

Human resources is all-embracing, i.e. all inclusive of persons who work now, or are likely to be productively employed sooner or later. The point here is that human resources management embraces virtually the whole population as its target. It envisages that the child, once it is able to express itself and comprehend communication, needs to be helped or enabled to understand its social and economic environment and to be fitted for participative roles in the development of that environment at, and through, and varying stages. It also requires that those actually in search of productive employment are made to be aware of the possibilities, the requirements for effective performance on the relevant jobs, including active preparation to successfully perform thereon (Ibok and Ibanga, 2014).Human resources management strategy and sustainability is one of the most important requirements for the sustenance of an economy, whether at micro or macro levels. It is a must for any society or enterprise that wishes to survive under complex challenges of a dynamic world.

In order to survive, the nation, state in the modern world, must devote a high proportion of its resources to managing by way of developing its human resources in terms of numbers, quality and mix. The mix in particular, must be continuously watched, analyzed, planned, and adapted in order to ensure optimum overall economic and social development. This therefore entails strategic management of human resources for sustainable development (Yesufu, 2000).

As enterprises around Africa face increased challenges due to globalization, many small and medium enterprises are seeking to gain competitive advantage at all cost, and are turning to more innovative ways of doing business through human resource management strategic practices (Sparrow, Schuler, & Jackson, 1994). Schuler and Jackson (1987) argued that human resource management strategic practices as a system that attracts, develops, motivates, and retains employees to ensure the effective implementation and the survival of the organization and its members. Human resource management strategic practices are also described as a set of internally consistent policies and practices designed and implemented to ensure that an enterprise human capital contribute towards the achievement of its business objectives (Delery & Doty, 1996). Likewise, Minbaeva (2005) viewed human resource management strategic practices as a set of practices used by enterprises or businesses to manage human resources through facilitating the development of competencies that are unique to the organization, creating complex social relations and generating organization knowledge to sustain competitive advantage. From this framework, it can be established that human resource management strategic practices among small and medium size enterprises must relate to specific practices, formal policies, and philosophies that are designed and developed to attract, develop, motivate, and retain employees who ensure the effective functioning and survival of the organization.

But even the best ideas for supporting sustainability will fall flat unless an enterprise workforce can put them into action (Lacy, Arnott and Lowitt, 2009). Lacy et al (2009) mention that the five levers: organizational change, leadership development, employee learning, performance management and employee engagement can help. These are key elements of human resource management practices and therefore remain key imperatives for achieving an organization’s sustainability.

Today, numerous studies have emerges on human resource management strategies by many scholars using different measures towards achieving a sustainable business goal. According to the research conducted by Mandip (2012), the author emphasized that “HR function will become the driver of sustainability within the organization by aligning its practices and policies with sustainability goals reflecting an eco-focus”. Also, Arulrajah, Opatha & Nawaratne (2015) confirmed that the ultimate aim of HRM practices is to improve the organizations’ sustainable performance. On this note, this study focuses on investigating human resource management strategies and sustainability of SAMCO Paper Company LTD. 

1.2 Statement of the Problem

Human resource management strategies such as compensation and motivation, hiring, training, performance appraisal, teamwork are very essential in achieving sustainable growth and development among business organisation in Limbe. Once these elements are not taken into cognizant, SMEs being the backbone of every economy are bound to collapse. The researcher observed that most of the business organisation that spring up around Limbe, do not sustain for long. Within one to four years of their existence, they wind up. This is quite worrying because most of the youth who have managed to have jobs are within one to three years of employments finds themselves again into the job market because the enterprises have collapses. Among the enterprises that have successfully adopted sustainability in a strategic way into their core business, the reported benefits include greater efficiencies, the ability to innovate, increased profits and business growth. What often goes unrecognized is that, like other business projects, sustainability initiatives require a good understanding of the human resource management strategies to be successfully  implemented and achieve their desired outcomes. The goal of every enterprise is to be able to match its competitors in the long run. However the blend of human resource management strategy and sustainability is still being given a relatively low priority on the executive agenda compared with other business issues. This suggests that there are low levels of awareness of its potential business benefits among enterprise owners, leading to a vicious circle scenario in which inadequate attention or resources are allocated to sustainability initiatives.

Therefore, many researchers focus was based on a shift from content to process or vice – versa in the application of HRMS activities and practical knowledge. However, this study focuses on the applied case of a particular company (SAMCO Paper Company LTD) and its employees perceived implementation of HRMS on the sustainability of the enterprise.

1.3 Research Questions

1.3.1        Main Research Questions

What human resource management strategies contribute to the sustainability of SAMCO Paper Company LTD?

1.3.2        Specific Research Questions

1. What are the human resource management strategies applicable to business organisation in Limbe?

2 What is the significant of HRM strategies on the growth and sustainability of SAMCO Paper Company LTD?

3 What are the challenges faced by SAMCO Paper Company to achieve sustainability despite the applicability of HRM strategies?

1.4 Main Objectives of the Study

To critical examine the applicability of human resource management strategies for the growth and sustainability of SAMCO Paper Company LTD in Limbe

1.4.1 Specific Objectives of the Study

1. To identify the human resource management strategies applied by SAMCO and other business organizations in Limbe
2. To examine the significant of HRM strategies on the growth and sustainability of SAMCO Paper Company LTD.
3. To investigate the challenges faced by SAMCO Paper Company to achieve sustainability despite the applicability of HRM strategies.