THE EFFECT OF GLOBALIZATION ON HUMAN RESOURCES PRACTICE IN NIGERIAN ORGANISATIONS

ABSTRACT

The world as a unit where several of its parts have to have close contact and interaction with one another and to recognize themselves as sharing a common humanity, took a new turn in the fifteen century with the Spanish, Portuguese and the Dutch Voyages of discovery, a Phenomenon advance in maritime technology.  It is the result of that process or phenomenon that has come, generally to be referred to as globalization.

Globalization reflects man’s common humanity, a desire to explore and break barriers and to conquer both territory and forces, and to constrain them.

This research project seeks to determine the effects of globalizations, and this was a study of selected organizations – Nigerian Breweries Plc and ANAMMCO both located at Enugu.

A  sample  of  139  respondents all  randomly selected  from the  staff and management of Nigerian Breweries Plc. And ANAMMCO.  Both primary and secondary were used. At the end of the research study, it was gathered that globalization has made impact on human resource practice, and the aspects it has made such impact includes: the economic, political, social/cultural, and technological aspects, and the countries that stand to greatly benefit.

It is concluded that globalization is a dual-purpose, sword, which slashes the throat of the weak and strengthens the strong; which implies that it has come to stay and must be properly and adequately addressed.  It should be ensured that its fruits extend to all countries of the world, the fears that the growth that globalization brings in inherently destabilizing should be wiped out, the concern within the richer countries should be addressed that international competition does not hurt living standard, and the problems complicated by

rapid  business  expansion,  notably  environmental  degradation,  disease, migration, crime, unemployment and terrorism should be tackled.

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Modern business is full of challenges. To face these challenges, organizations should recognize the fact that human resources are inevitable. This is because of their role as the prime movers or initiators of all productive activities. According to  Donnelly et  al (1992:48), human resource management I the process of accomplishing organizational objectives by acquiring, retaining, terminating, developing and properly using the human resource practice in an organization. This acquisition involves retaining, screening, selecting and lacing personnel.

Retaining efficient individuals matters a lot to an organization relative in order to attain corporate its objectives. If capable and efficient personnel regularly leave an organization, it becomes a huge problem, as this may result to constant recruitment with its attendant consequences in relation to administrative costs.

Quality and productivity constitute the core of managing work organizations, people and operations because they are critical to costs, sales, competitiveness and profitability, Williams (1999:201).

To improve quality and productivity in organizations, most executives now   employ   human   resource   instrument   such   as   employees motivation programs, employee training and education, and changing the organisation’s culture, rather than technology – oriented solutions. The strategic importance of effective human resource practice is now globally recognized.

Improvements in the  firm’s completive position can work only if human resource practice is elevated and remains a crucial area in the strategic planning and implementation of plans.

Wider economic, technological, political and social forces shape humans resource management policies and activities. What happen in the global economy influences human resource management in the domestic economy. There is general agreement among business executives that the structure as well as the fundamental dynamics of global business have dramatically changed in the last three decades. These changes have impacted much on human resource management, Sisson, (2003:90).

The key question that immediately arises is what has changed in the global economy and  in  the  political and  social environments that impact on human resource practice.

In the 1960s, changing public policies covering productivity and employment law extended the personnel management function. Personnel management practice arose as the result of changes in the political economy.

In the 1980s, the context of human resource practice was profoundly influenced by the global political environment, Fasuyi, (2000:47).

In the 1990s, the processes of globalization have important consequences for high value businesses and strategic human resource management.

Globalization describes recent changes in the world economy and reflects trade flows, declining transportation costs, the portability of new and more integrated financial markets. Globalization refers to increasing global connectivity, integration and interdependence, in the economic, social, technological, cultural, political and ecological spheres.

Globalization has various aspects which affect the Nigerian organizations in several different ways such as: Industrial, Financial, Economic, Political, Informational, Cultural, Ecological, Social, Greater International travel and Tourism, Greater immigration, Including illegal immigration, spread of local consumer products to other countries, increase in the number of standards applied globally, etc. It is a strategic reality which a nation or organization cannot ignore.

It is against this background that this study examines the effect of globalization on human resources practice in Nigerian organizations.

1.2     STATEMENT OF THE PROBLEM

The Concept of globalization is intended to bring the entire universe closer  to  one  another  using  information technology devices.  This implies  using  information technology to  make  the  world  a  small village for ease of communication in international trade business and human relation etc. some schools of thought believe that this have been achieved to a great extent through the use of computer (information system).

Some schools of thoughts believe that this has been reasonably achieved through the use of computers (information technology systems). Other schools of thoughts who are in disagreement argue that computer technology is  a device which has succeeded in the displacement of human resource elements thereby rendering many people jobless.

The fundamental issue here borders on the displacement of human element in the product of goods and services and the consequences of such human resource element displacement?

1.3     OBJECTIVES OF THE STUDY

(i)      To  ascertain  if  globalization  has  more  positive  impact  on human resources than negative impact.

(ii)     To determine the effects of globalization on human resources practice in Nigerian Organisations.

(iii)    To examine the aspects of globalization that impacts on human resources practice.

(iv)    To determine if Nigerian Organizations stands to gain or lose from globalization.

(v)     To find out if there is a relationship between globalization and human resource practice in Nigerian Organisations.

1.4     RESEARCH QUESTIONS

In this research work, the following questions were raised;

(i)      Is there any relationship between globalization and human resource practice?

(ii)     Does globalization make any impact on human resource practice?

(iii)    What  aspects  of  globalization  really  impact  on  positive  human resource practice?

(iv)    What is the positive and negative impact it makes on human resource practice.

(v)     What  are  the  things  Nigerian  organizations  stand  to  gain  from globalization.

1.5     HYPOTHESIS

Ho:    Globalization does not make any impact on human resource practice in Nigerian organizations.

H1:    Globalization  makes  impact  on  human  resource  practice  in

Nigerian organization.

Ho:    There  is  on  relationship  between  globalization  and  human resource practice.

H1:    There is relationship between globalization and human resource practice.

Ho:    Nigerian organizations have not gained from globalization. H1:    Nigerian organizations have gained from globalization.

1.6     SIGNIFCANCE OF THE STUDY

The study will be very useful to human resource managers. This is because it will provide useful information on how changes in the economy can influence human resource management practices. Thus, will enable them to formulate policies of international standard for the organization.

Through this study, management will also see the need for continuing industrial  harmony  occasioned  by  good   employer  –   employee

relationship in the face of structural and business changes occasioned by global business integration. This would enable manager to formulate policies in line with these changes.

The  government will  similarly  benefit  from  the  study,  as  it  will understand how political changes affect business and human resource practice.

The trade unions are also expected to benefit from this study as they will understand how global changes affect business and human resource practice. This will enable them to adopt more desirable approaches in their relationship with management.

1.7     SCOPE OF THE STUDY

The study will cover the extent to which globalization has impacted positively or  negative  to  selected Nigerian Organisations that  has embraced information technology in its operations.

It is also expected to unveil those areas in Nigerian Organization that requires upgrades through the application of information technology.

1.8     STUDY LIMITATIONS

The  constraints  in  the  course  of  this  study  images  more  on respondents skepticism, excuses of time constraints and funding.

1.9     BRIEF HISTORY OF THE ORGANISATIONS UNDER STUDT

1.9.1  ANAMBER     MOTOR     MANUFACTURING     COMPANY, EMENE ENUGU

The Anamber Motor Manufacturing Company (ANAMINCO) Ltd in located at Emene Industrial Layout, Enugu.

The  company was  incorporated in  January 17,  1977  as  Anambra Motor Manufacturing Company and acronym ANAMMCO. It was incorporated with an authorized share capital of Seven Million Naira (N7,000,000) fully paid.

The  incorporation was  as  a  result  of  the  joint  venture  agreement between the federal Government of Nigeria and Daimler – Benz A.G of West Germany.

The first managing director of the company was Mr. Peter Emilrupp and top Federal and State Government officials. The plant was officially commissioned on 18th  come the discovery of information technology the computer age.

Many scholars, corAliyu Usman S. Shagari.

The installed capacity on one shift per annum was 7,500 Mercedes

Benz trucks.

THE OBJECTIVES OF THE COMPANY

The ANAMMCO plant was built under a joint agreement between Daimler – Benz A.G of West Germany and Nigeria. The objectives of the company include the following:

(i)      To alleviate the transport problem in the country.

(ii)    To carryout the business of manufacturing and marketing Mercedes Benz trucks and buses to meet Nigerian’s increasing demand for commercial vehicles.

(iii)    To help reduce unemployment in the country.

(iv)    To assist in manpower development through technological training.

PRODUCTS OF THE COMPANY

In January, 1989, the company officially commenced the production and marketing of Mercedes buses and trucks. The product line of the company in assembling of trucks and buses which are as follow:

BUSES

MB 180 minibuses, 0365 City bus, MB 6088D, 0131 intercity and 0371R

TRACTORS

MB 1924, MB 1414, MB 911, MB 3224, MB 121B and MB 1614. There are other vehicles assembled by ANAMMCO in the category of trucks like farm tractors, waste disposal vans, Black Maria, tankers, Troop carrier, fire fighting vehicles, etc. the company also produces for special tasks.

1.9.2  NIGERIAN BREWERIES

Nigerian Breweries Plc, the pioneer and largest brewing company in Nigeria was incorporated in 1946 as Nigeria Breweries Limited, and recorded a landmark when the first bottle of Star Lager beer rolled off the bottling lines in its Lagos Brewer in June 1946. The Brewery in Lagos Commenced the bottling of soft drinks using the brand names, Tango and Krola in 1952. It commissioned its Aba Brewery in 1957. Subsequently  the   name   of   the   company  changed  to   Nigerian Breweries Limited.

The Brewery commissioned other brewery plants – Kaduna Brewery in 1963

Ibadan Brewery in 1982. Enugu Brewery in 1993.

Alma Brewery (Enugu in another location) in 2003.

The company went public in 1961. In 1962, it commenced production of Sam soon Stout later Schweppes 1965 commenced the production of Heineken Lager beer. Other products include New Rainbow range of soft drinks, Gulder (1970), (Maltina (1970), Legend Extra Stout (1992), Amstel Malta (1994), Schweppes range of soft drinks (Bitter Lemon, Tonic Water, Soda water) in 1996, Crush Soft Drink (1997) and Fayrouz (2006).

Nigerian Breweries Plc encourages the establishment of ancillary business  such  as  manufacturing  of  bottles,  crown  corks,  labels, cartons, plastic creates and other service like hotels / clubs and direct customers.

It is a socially responsible corporate citizen with an enviable philanthropy in  the  areas  of  education,  sports,  and  health  among others. The organisation recently established an education trust fund of N100 million to take more active part in the funding of educational and research faculties in higher institutions, all in an effort to provide and encourage academic excellence in Nigeria. This is in addition to its secondary and university scholarship programmers for children of its employees.

The company in also the foremost sponsor of sports in the country. The company is a model of success in the private sector. Its high profile, profitability and successful operation can be traced to good qualities, efficient  management of  operations, strategic penetration into the market environment, adequate motivation of employees, proper understanding of consumer attitudes and habits and high social responsibility profile at National and Zonal levels.

1.10   DEFINITION OF TERMS

(1)     GLOBALIZATION:     The  economist sees  globalization as the “process of increasing international division of labor and the accompanying integration of national economics through trade, goods  and  services,  cross  border corporate investments and financial  flows”  it  is  the  convergence  of  prices,  products, wages, rates of interests and profits toward developed country norms; Ezigbo (2007:199).

(2)     MANAGEMENT:         This is a process of doing something through people and with people. It could equally be seen as the process by which organizational inputs (human, material and financial resources) are brought together for a conversion into an output (final or finished goods and services). Williams (1999:74).

(3)     STRATEGIC  MANAGEMENT  PLANNING:  This  is   a concept that stales the extremely important factors needed to help firms find ways to compete effectively in the domestic and foreign markets.

(4)     HUMAN RESOURCE: This could mean all the knowledge, skills, education and the capabilities or  capacities of all the people in a society. Fasuyi (2000:136)

(5)     QUALITY: This  means  standard  of  goods  and  services  or something that are or is of substance.

(6)    PRODUCTIVITY:       This has to do with production for manufacturing of goods and services.

(7)     ORGANISATION:       This   is   a   predetermined,   selected course established as a guide towards accepted goals and objectives.  It  is  a  broad,  general  guide  to  action  which constrains or directs goal attainment. Unamlea and Ewurum (1995:2).

(8)     PRACTICE: This means performance. It is a way of doing something.

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