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IMPACT OF EFFECTIVE MANAGEMENT OF HUMAN RESOURCES IN SOLVING UNEMPLOYMENT PROBLEMS IN NIGERIA BETWEEN 2010-2014 (A CASE STUDY OF OJI RIVER LOCAL GOVERNMENT AREA)

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

An organization uses many resources such as financial, natural or human resources. The most important of all, for an organization, is still human resources and this is because without it, it would be impossible to accomplish the mission or to attain a specific vision within an organization. Human resource is the soul of every organization. All other resources though very vital fall under the management of human resource. Anyim  et al (2011) described human resource as the life blood of organizations. They enthused that “despite the application of technology in modern business management, human resources are still relevant and most adaptive resources of the organization” (Anyim et al, 2011, p.1). Waterman recognized that “the organization; people, culture, capacity, represents an important source of competitive advantages. People are the strategy (waterman, 1994, pp. 21-22). The increase in financial performances of a company is due to the good implementation of a human resource strategy. Equally, human resources are the most important capital of a company, a vital contact with the customers and the key for success (farmer, 2010).

Any activity in an organization from the beginning to the end stage depends on human resources.  Therefore, any organization aiming at achieving some of their goals must ensure not only maintaining constant and adequate supply of human resources but also ensure that they were adequately motivated and effectively managed. James stated in Chukwu (2008) that the effective management of people is still the key to productivity and the assignment of the management is to motivate people to put the best of their skills and abilities. He affirmed that organization will achieve high productivity more than ever before by effective management of their human resources, which can come in form of motivating their workers and sending them for training. Moreover, Ubeku in Nwachukwu (2002) went further to say that although the task of motivating  workers is vested on the management team but the managers have more roles to play by providing the organization with a continuous day-to-day coaching, appraisal and encouragement that the employee will need more than ever before.

According to Eze (2010, p. 3) man has built organizations to take care of all aspects of his needs and desires both in organizations and as well as in country. This requires that the resources which are available should be effectively managed and utilized. Effective management of human resources is the efficient and effective deployment and allocation of organizations human resources when and where they are needed. Human resource management includes planning, allocating and scheduling of human resources to tasks. The consequences of ineffective management of human resources have been witnessed in the area of high rate of poverty which is a direct offshoot of unemployment. Unemployment has become a major problem bedeviling the lives of Nigerian youths causing frustration, dejection and dependency on family members and friends who also have their own problems to contend with.

A review on how effective Nigeria has managed their human resources reveals that the indicating factors to show effectiveness and efficiency lacking. In this light, Ogundiya [2010,p.201] lamented that political instability, abject poverty, acute youth employment, heightened crime rate, poor heath prospects and widespread malnourishment have been the main features of Nigeria’s political economy”. Not even the rising Gross Domestic product [GDP] which is now about 522.6 billion [World Bank, 2014] has been able to dislodge poverty and decrease unemployment rate in Nigeria, Thus, Samsi [2010, p.3] noted that economic growth has risen substantially with animal average of 7.4 percent in the last decade. But the growth has not been inclusive, broad- based and transformational. The implication of this trend is that economic growth in Nigeria has not resulted in the desired structural changes that would make manufacturing the engine of growth, create employment and promote technological development and induce poverty alleviation.

Unemployment is one of the key indicators for measuring development of any country. A country is said to be achieving development if its unemployment rate is declining. And when jobs are created, employment increases while unemployment declines. The reverse is the case in Nigeria with high rate of unemployment (Jamo, 2013, p. 90). Nigeria has been experiencing exponential rise in unemployment. According to Eme [2014] betweens 2010 – 2013, unemployment rate increased from 21.1% to 28.5%. This means that Nigeria’s rising economic growth has not translated into higher employment rate. Thus, about 50 million Nigerian youths are estimated to be currently unemployed to World Bank, (2013). Unemployment has been and still is a major problem in Orji River Local Government Area in spite of abundance of both human and material resources. At the heart of the problem is the management of those resources. In that regard, this study seeks to unveil the issues surrounding unemployment in Nigeria with particular reference to Orji River in Enugu state and how possible to solve such problems through effective management of human resources, thereby reducing the rate of unemployment in Nigeria.

1.2   STATEMENT OF THE PROBLEM

Effective management of resources is at the heart of every organization. The challenge for organizations is how to maximize the full capabilities of resources especially the human resource in a most effective and efficient manner. No matter how organizations try to achieve these full capacities, there are still issues to contend with. The primary issue according to Gopalahrishnan [2012, p.65] is lack of continuous training and education. He opines that organization fall disparately behind the learning culture because training and development are perceived as auxiliary activities, rather than as pragmatic catalyst to results.

There is massive unemployment especially in developing world like Nigeria because employees lacked the necessary skills required to maximize output and create further openings. In that regards, Goldstein [1993] notes that there are skills deficiencies of the workforce that make staff perform below the minimum acceptable performance level. He maintained that such workers are unproductive, wasting organizations finance and time and that it costs the management more to keep them than to be without them. The problem however lies in the facts that management does not ensure their skill acquisition and should not have hired them in the first place.

It is a truism that productivity at work setting enhances employment and lack of it brings unemployment. Anyim et al (2011) wrote on their basis that “poor productivity is likely to create unemployment and inflation, decline in standard of living of the masses, hence all hands must be on desk in search of ways to improve productivity” low productivity on a high extent is the function of ineffective management. Quota system in employment in Nigeria is a key problem affecting effective management especially in public organizations. Again Anyim et al [2011] opines that quota system in employment is very common in public Organizations where employment in government establishments is expected to reflect the federal character principle. Usually, they noted that employment is not carried out in line with global standard thereby compromising merits, standard and quality. In the long run, this brings productivity issues that with negatively affect employment and warrant unemployment of the already engaged. All these challenges affect management in its bid to ensure effective management of human resources that will boast the productive and employment chances of organizations. The impact of lack of effective management of human resources in organizations is numerous including unemployment which is our focus.

1.3 OBJECTIVES OF THE STUDY.

The general objective of this study is to study the impact of effective       management of human resources in slowing unemployment problems in Nigeria.

The specific objectives include:

a. To find out if there was an effective management of human resources in Oji River Local Government Area between 2010-2014.

b. To investigate the impacts of effective management of human resources in Oji River Local Government Area between 2010-2014.

c. To identify the challenges of effectives management of human resources in Oji River Local Government Area between 2010-2014.

d. To profer solutions to the identified challenges of effective management of human resources in Oji River Local Government Area

1.4   THEORETICAL FOUNDATION OF THE STUDY

Hardly do we discuss and analyze concepts meaning fully in social sciences without linking them to or understanding them from some theoretical viewpoint or orientation. This study will adopt a management theory propounded by Frederick w. Taylor, known as the scientific management Theory”. Scientific management theory is a theory of management that seeks to enhance productivity, increase in the output of work, overall effective and efficient utilization of available resources at work place in order to achieve greater result.

According to Nwata (2012,p.11), Scientific management which owes its origin to Frederick w. Taylor (1856-1917), developed a number of guidelines for managers to adopt and replaces the old, ineffective approaches to work, setting rules that should be adopted for efficient and effective utilization of resource to achieve greater result. Taylor pointed management as a true science,resting upon clearly fixed lows, rules and principles, as a foundation. He argued that management comprised a number of principles which commanded applicability of all types of organizations; the same principles can be applied with equal force to all social activities to the management of our homes, our churches, our philanthropic institution, our universe and our government departments.

The most important of these scientific management factors according to     Taylor are as follows:

a. The development of true science -: This principle involved systematic observation, classification and tabulation of work activities as they were typically carried out and then the simplification of the tasks to be done on the analysis of motions, material and equipments.

b. The scientific selection and progressive development of workman -: People should be carefully selected on the basis of the possession of the skills and capabilities necessary to carryout effectively and efficiently organized jobs.

c. Intimate friendly co-operation between the management and workman-: Taylor believes that there must be an almost equal division of the work and responsibility between the management and the workman.

APPLICATION OF THE THEORY.

The study revolves around effective management of human resources in an organization and how it can proffer solution to the issue of unemployment. The management of organization and their human resource managers should learn how to apply the scientific management principles outlined above towards effective utilization of their human resources thereby inducing greater productivity. The core basis of scientific management theory is to enhance effectiveness and efficiency in the working environment. This makes it more suitable to be adopted in the course of effective management of human resources in an organization. However, the organizations and establishments in Oji River Local Government Area should know that management is Scientific and requires scientific approaches towards effective management of their human resources.

1.5      RESEARCH QUESTIONS

This study is guided by the following research questions.

1. How did Oji River Local Government Area, effectively manage its human resources between 2010-2014?

2. What were the impacts of effective management of human resources in solving unemployment problems in Oji River Local Government Area between 2010-2014?

3. What were the challenges that confronted effective management of human resources in Oji River Local Government Area between 2010-2014?

4. What is the solution to identified challenges of effective management of human resources in Oji River Local Government Area?

1.6     SIGNIFICANCE OF THE STUDY

Generally speaking, the effectiveness of any Organization irrespective of its native is measured by one significant and objective criterion, namely the quality of its product and services is to large extent a function of the caliber of human resources or man power component of the organizations production resources.Secondly a close look at the work carried out will reveal a significant effect on human resources development on the organizational growth. More so, the research work will serve the role of shaping the organizational politics on human resource [personnel] for the overall attainment of the set objectives. It is only when the human resources is adequately qualified for the job to be performed that we can be effectively allocated and usefully utilized in the most optimum manner.

The practical relevance of the study lives in the fact that no organization can achieve its set objectives without competent employees. Other significance of the study includes the following:

i. It will enable the management of both public and private organizations to know the major problems facing human resource management and their possible solutions.

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