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Essay: Relationship between human resource management and organizational performance

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Human resource management plays a key role in organizational performance. Selection and recruitment, training and development , appraisal, rewards, career management, improving conditions, communication, negotiation are so many human resource management practices, these practices are largely used in the companies of today.

No doubt that organizations internationally and nationally are determined for achievement and high profit for the purpose of this, organizations have to get and apply their human resource management effectively and efficiently. Organizations have to be aware of human resource management more realistically and organizations have to keep their human resource up to date.

Consequently, managers play significant roles for the purpose of achieving Company’s goal and meet profit, this project therefore examines the influence of human resource management on organizational performance.

Human resource management is concerned with performing the same functional activities traditionally carried out by personnel function, human resource management approach performs these functions in a qualitatively distinct way. Human resource management focus on people management as a consistent view in which people are treated as valuable asset. Human resource management was seen to be strategic, tying people management to business objectives (Akosile, Olorunseun & James, 2014).

Daft defined organizational performance as the organization’s ability to accomplish its aims through the use of resources in a properly structured manner. Richardo also see organizational performance as the ability to achieve organizational goals and objectives.

Hodge and Williams suggested that performance of an organization has also been conceptualised using non-financial and financial measures from both perceptual and objective sources. This project will empirically investigate the relationship between human resource and organizational performance.


‘’Firms can gain competitive advantage through human resources, the functions of human resource management have become viewed as a component of management’s arsenal of strategic weapons’’ (Schuler & Jackson, 1999).

According to Michael Armstrong in 2006 indicated that there are two major roles of human resource management. These roles are;
Strategic role and Operational role

STRATEGIC ROLE; this emphasizes that the people in an organization are valuable resources representing a significant investment of organizational efforts. These human resources can be a source of competitive strength if they are managed effectively

OPERATIONAL ROLE; operational activities are both tactical and administrative in nature. Compliance with equal employment opportunity and other laws must be ensured, applicants must be interviewed, new employees must be oriented to the organization, supervisors must be trained, safety problems must be resolved, and wages and salaries must be administered.

This emphasis occurs in some organizations because of individual limitations and partly because of top management resistance to an expanded human resource role.

Both roles are captured in the following definition of thee field human resource management is the strategic and operational management of activities to enhance the performance of the organization. Moreover, cooperation among people who specialize in human resource management and other managers is critical to organizational success.

Human resource management is composed of several groups of inter related activities. All managers with human resource responsibilities must consider legal, political, economic, social, cultural, and technological forces when performing human resource activities.
The myriad of pressures from the environment affect the following groupings of human resource activities.


Human resource planning
Job analysis
Human resource information and assessment systems





Employee development
Career planning
Performance appraisal


Wages/salary administration


Health and safety
Employee rights and human resource policies
Union/management relations.


In spite of the importance of intangible assets on competitive advantage and organizational performance, not much has been structured on the nature of human resource management and its relationship with organizational performance.

Even where firms commits enormous financial resources to staff training and development, staff health care and other welfare programmes, one could not tell whether its impact on organizational performance is significantly worthwhile.

Besides, one thing is to acquire additional knowledge and skill, another thing is to have the required motivation to use the human resource acquired to bring about improved productivity.

Thus, the ability of the workforce to adapt the knowledge and skills acquired to their organizational operation depends on the leadership styles adopted by managers at various levels.


The main objective of this study is to examine the relationship of human resource management on organizational performance in Promasidor Nigeria limited. To achieve this, the research intends to;

  1. Examine the relationship between human resource management and organizational performance with educational/professional qualifications
  2. Examine the relationship between human resource management with the performance of promasidor Nigeria limited
  3. To determine how significant the relationship are If any, and proffer solutions to fill the identified gaps associated with human resource management in Promasidor Nigeria limited.


  1. Is human resource management essential in an organization in terms of productivity?
  2. Does human resource management contribute to organizational performance?
  3. Which measure should human resource management adopt to evaluate and determine employee package?


The following hypothesis were formulated

Ho: there is no relationship between human resource management and organizational performance

Hi: there is a relationship between human resource management and organizational performance


  • Human resource management; this is a management function that I concerned with obtaining and maintaining employee workforce that is most appropriate in size and quality for a business internal organizational structure.
  • Organizational performance; this is the organization’s ability to accomplish its aims through the use of resource in a properly structured manner.
  • Organization; organization is a systematic arrangement of people brought together to accomplish specific purpose.
  • Performance; the act of carrying into execution or action
  • Manager; a manager is someone whose responsibility is to carry out the management functions


The importance of this study is to know the relationship between human resource management and organizational performance, the advantages and pitfalls of human resource management on organizational performance. It will also enlighten managers on the relevance of human resource management on organizational performance and enable the employees to realize the need to equip themselves with necessary expertise and skill that meet the present and future challenges.

Also, this project will serve as a reference point for future researchers who may wish to carry out further research work on human resource management and organizational performance.


Promasidor is an African beverage and food products power house that caters up to 850million people. Motivated, dynamic and progressive, promasidor is a shining example of exactly how much can be achieved on this great continent.

Promasidor was found in 1979 by Robert Rose, who left the United Kingdom in 1957 for Zimbabwe to pursue his African dream. As chairman of Allied Lyons Africa for over 20 years, the travelled extensively across Africa and gained a unique and throughout the continent. In particular he noticed a lack of availability of the one highly nutritious product that he developed world take takes it for granted-milk.

He realised that with technology in the manufacture of milk powders advancing rapidly, there was an existing opportunity to provide milk powder in small portions that could be packaged in flexible sachets. It was found that removing the animal fat from the milk and replacing it with vegetable fat allowed for longer shelf life, this meant that for the first time, milk powder could be distributed across the vast of Africa continent, providing access to affordable milk to everyone in Africa. A passionate belief in this vision fuelled the pioneering concept of selling filed milk powder in small sachets and Promasidor began selling the cowbell brand in the Democratic of Congo in 1979. Today cowbell is sold in the majority of countries across the African continent.

Promasidor have enjoyed ongoing success for over 30 years. This success has been built on not only understanding the needs of the consumers, but also on the understanding of the needs of the employee suppliers and stakeholders.

Promasidor’s vision is to provide the opportunity to purchase their brand to everyone in Africa, because it firmly believe that everyone in Africa deservers that opportunity.

Quality! Their customers demand and deserve quality products, thus they fulfil their promise to provide products and service of consistently high quality.

Promasidor products includes: Cowbell milk, Miksi, Onga seasoning, Cowbell choco, Amila, Top tea, Loya milk e.t.c.

The head office is located at plot 3A and B, Cowbell way Isolo Industrial Estate, Oshodi-Isolo, Lagos.


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