University of Nigeria Research Publications

ODUCHE ,Ebele. P

Aut

hor

PG/MBA/03/37245

Title

The Application of Strategic Human Resources Management (SHRM) in the Banking Industry.( A

Study of First Bank of Nigeria PLC and United Bank for Africa Group PLC)

Facu

lty

Business Administration

Dep

artm

ent

Management

Dat

e

June, 2006

Sign

atur

e

THE APPLICATION OF STRATEGIC HUMAN RESOURCES MANAGEMENT (SHRM) I N THE BANKING INDUSTRY.

A STUDY OF FIRST BANK OF NIGERIA PLC AND UNITED BANK FOR AFRICA GROUP PLC.

PRESENTED BY

ODUCHE, EBELE P. PG/MBA/03/37245

A PROJECT REPORT SUBMITTED I N PARTI, FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD

OF MASTERS OF BUSINESS ADMINISTRATION DEGREE I N MANAGEMENT.

DEPARTMENT OF MANAGEMENT FACULTY OF BUSINESS ADMINISTRATION

UNIVERSITY OF NIGERIA, ENUGU CAMPUS.

b

TITLE PAGE

THE APPLICATION OF STRATEGIC HUMAN RESOURCES

MANAGEMENT (SHRM) I N THE BANKING INDUSTRY

A STUDY OF FIRST, BANK OF NIGERIA PLC AND UNITED

BANK FOR AFRICA GROUP PLC.

CERTIFICATION

ODUCHE, EBELE P., a postgraduate student in the department of

Management with the registration number PG/MBA/03/37245, has

satisfactorily completed the requirements for the course and research work

for the Degree of Masters of Business Administration (MBA) in

Management.

~ j & e project report is an embodiment of original work and has not been 1 submitted in part or full any other Diploma or Degree of this or any other

University.

or. 1 . 3 . ~ Ewurum Hea of Department

DEDICATION

This research work is dedicated to my heavenly Father, who has been my

help in ages past and also to my dearly beloved parents Ven & Mrs K.1

Oduche (Rtd) for their love, support and encouragement throughout the

course of this work.

I give \hai~l,:s to God AlmiglW, tllc founbin of all knowledge and the

source of all wisdom for His guidance throughout the period of this course.

I would also like to recognize and acknowledge the contributions of the

following to the success of this work. First and foremost to my Supervisor

Dr. U.J.F. Ewurum, for his valuable suggestions and constructive criticisms

that brought the best out of me. To my project guardian, Mr. Stanley Uzoh,

for his encouragement and assirt ,, ance.

My special thanks goes to all First Bank of Nigeria PIC (FBN) and United

Bank for Africa PIC staff for giving me access to information and responding

to my structured interviews and questionnaires.

I am also indebted to the University of Nigeria Enugu Campus (UNEC) and

the Institute of Chartered Accountants (ICAN) for allowing me to make use

of the books and materials in their libraries.

I also had the support and words of encouragement from my friends and

well - wishers, which include, Chinwe Anyaegbunam, Ngozi and Uzoma to

name a few.

Finally my special thanks go to my dearly beloved siblings, Mrs. Chi-Chi b

Oguine, Mrs. Ogo '~adumere, Engr. K.C Oduche, Mr. Okey Oduche and

Barr: Chinwe Oduche for their love and support. I want to say that I am

really very proud of 'you all.

ODUCHE EBELE P.

JUNE 2006

IV

T d k 4:l

-PaI~le 4:2

Table 4.3

Table 4.4

Table 4.5

Table 4.6.

Table 4.7

Table 4.8.

Table 4.9

Sex and age dirtrlbu'ion of respondents

Total number of respondents

Understanding of SHRM

Are you aware of the presence of SHRM in your

bank?

Have you observed any form of link between HR

and the strategic goals and objectives of the bank?

HR Management can play a role in environment

scanning that is, identifying and analyzing external

opportunity and threats that may be crucial to the

company's success.

The strengths and weaknesses of your bank's HR

can have a determining effect on the viability of the

bank's strategic options.

Do you believe that SHRM acti~vities contribute to

the achievement of business objectives?

SHRM activities contributions towards the

attainment of overall corporate goals and

objectives.

Table 4.10. Does the relevant officialslmanagement team in

b your Bank recognize SHRM as a veritable

instrument in the achievement of business

. objectives?

Table 4.11 How effectively, efficiently and adequately have e

SHRM been applied in achieving overall business

objectives?

Table 4.12 To what extent has the applied SHRM yielding or is

yielding result in respect to its main objecti~ves?

Table 4,13. Has the application of SHRM in any way made

positive impact in your bank activities?

Table 4.14. The extent of the impact made by the application of

SHRM.

Table 4.15. What factors are responsible for the non-application

or ineffective application of SHRM in the banking

sector?

. ABSTRACT

This is a research project carried out to evaluate the extent of the

application of Strategic Human Resources Management (SHRM) in the

banking industry.

A sample size of 200 respondents all selected from First Bank of Nigeria PIC

and United Bank for Africa Group PCC was used in this study. Both primary

and secondary data were collected and analyzed using questionnaires and

related books on the subject matter.

The researcher based on the data collected and analyzed, found out that:

o SHRM activities contribute to the achievement of business objectives.

o Majority of the relevant officers and management team in the banks

understands what SHRM is all about, and they also recognize is as a

veritable instrument in the achievement of business objectives,

however, they have not been able to effectively and efficiently apply

it in the achievement of business objectives.

o SHRM so far applied have yielded or yields great results.

However, the researcher recommends that SHRM should be efficiently,

effectively and adequately applied. I n other words, there should be

strict/timely adherence to the formulated strategies.

Since strategic management is an on-going process, efforts should be

made to constantly review, revise and evaluate strategies formulated to

reflect current trends. I n other words SHRM should not be viewed as static.

vii

Hence,. mere knowledge of SHRM is not enough, but it's effective and

efficient applicati'on is what counts. Therefore managers and responsible

officers should not just be satisfied with the head knowledge of SHRM, but

should be majorly concerned with its application. This is important as this

will enable them reap the benefits associated with the application.

Viii

........... STRATEGIC HUMAN RESOURCES MANAGEMENT 7

PROFILE OF CASE ORGANIZATIONS ............................. 8

........................................ FIRST BANK OF NIGERIA PLC

.......................... UNITED BANK FOR AFRICA PLC (UBA) 9

REFERENCE .................................................................... 11

CHAPTER TWO

REVIEW OF RELATED LITERATURE ............................... 12

INTRODUCnON ............................................................ 12

HUMAN RESOURCES MANAGEMENT ............................ 12

THE ACTIVITIES OF HUMAN RESOURCES MANAGEMENT 13

HUMAN RESOURCES MANAGEMENT ROLES AND POLICIES 15

THE STRATEGIC MANAGEMENT PROCESS ..................... 15

STRATEGIC MANAGEMENT AN ONGOING PROCESS ...... 18

THE CHARACTERISTICS OF STRATEGIC DECISIONS ...... 19

........... THE FIVE TASKS OF STRATEGIC MANAGEMENT 20

THE BENEFITS OF A STRATEGIC APPROACH TO MANAGING ............................ ............ ................................ 20

AN OVERVIEW OF STRATEGIC HUMAN RESOURCES MANAGEMENT (SHRM) ....................................................... 2 1

2.6.1 THE REALITY OF HR STRATEGY ........................................ 24

. 2.7 THE BENEFITS OF STRATEGIC HUMAN RESOURCES ........ 25

2.8 THE CHALLENGES OF STRATEGIC HUMAN RESOURCES ... 28

2.9 STRATEGIC HUMAN RESOURCES MANAGEMENT MODELS 30

2.9.1 THE MATCHING STRATEGIC HUMAN RESOURCES MODEL 30

2.9.2 THE RESOURCE - BASED MODEL ....................................... 34

2.10 DIMENSIONS OF STRATEGIC HUMAN RESOURCES MANAGEMENT .............................................................. 37

.............................................................................. SUMMARY 43

REFERENCE ........................................................................ 44

CHAPTER THREE

RESEARCH METHODOLOGY ................................................... 48

RESEARCH METHOD ............................................................. 48

METHOD AND SOURCE OF DATA COLLECTION .................. 48

QUESTIONAIRE DESIGN ........................ ................ .............. 49

INTERVIEW METHOD .......................................................... 49

LIBRARIES ........................................................................... 50 b

THE POPULATION FOR THE STUDY .................................. 50

0

3.7 PROCEDURE FOR DATA GATHERING ................... .. ........ 50

3.8 VALIDITY AND RELIABILITY OF DATA INSTRUMENT ...... 50

3.9 DETERMINATION OF SAMPLE SIZE ................................... 5 1

3.10 METHOD OF DATA ANALYSIS ............................................ 52

REFERENCE .................................................................... 53

CHAPTER FOUR

4.0 ANALYSIS AND INTERPRETATION OF DATA ...................... 54

................................... 4. 1 QUESTIONAIRE ADMINISTRATION 54

4.2 RESEARCH INFORMATION ................................................ 56

CHAPTER FIVE

5 . 0 SUMMARY OF FINDINGS. RECOMMENDATIONS AND CONCLUSIONS ............................................................ 67

5.1 SUMMARY OF FINDINGS .................................................... 67

5.2 RECOMMENDATIONS ......................................................... 68

5.3 CONCLUSION ...................................................................... 69

5.4 . AREAS FOR FURTHER RESEARCH ..................................... 69

BIBLIOGRAPHY ............................................................... 7 1 0

APPENDIX

xii

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Strategic Human Resources Management (SHRM) is concerned

with the contributions human resource strategies make to

organizational effectiveness, and the ways in which these

contributions are achieved. (Jeff Ericksen, Lee Dyer: 2004).

Therefore, the aim of Strategic Human Resources Management is

to ensure that the culture, style and structure of the organization

and the quality, commitment and motivation of its employees,

contribute fully to the achievements of business objectives.

~ccording to Michael Armstrong: 1992, a strategic orientation is a

vital ingredient in human resource management. It provides the

framework within which a coherent approach can be developed to

the creation and installation of Human Resources Management

policies, systems and practices.

Strategic Human Resources means accepting the HR function as a

strategic partner in the formulation of the company's strategies as

well as in the implementation of those strategies through HR

activities, such as recruiting, selecting, training and rewarding

personnel. Whereas Strategic HR recognizes HR's partnership role

in the strategizing process, the term HR strategies refers to specific

HR courses of action the company plans to pursue to achieve its

aims. (Siddharth Chaturvedi, 2002).

By design, the perspective demands that HR managers become

strategic partners in business operations playing prospective roles 1

rather than being passive administrators reacting to the 0

requirements of other business functions. According to Siddharth

Chaturvedi:' 2002, Straegic HR manages need a change in their

mindset from seeing themselves as relationship managers to

resource managers knowing how to utilize the full potential of their

human resources. HR professionals become strategic partners

when they participate in the process of defining business strategy,

when they ask questions that move strategy to action and when

they design HR practices that align with the business strategy. By

fulfilling this role, HR professionals increase the capacity of a

business to execute its strategies.

In the modern business scenario, HR has to practice and HR

professionals should identify the potential of multiskilling their

resout-ces. the new HR role is to viewed from the strategic

perspective wherein HR plays an important and vital role whilst

designing and delivering the HR strategy for the organization the

approach of HR planning activity is no more in isolation but very

much aligned to the strategy of the organization as a whole.

Delivering a strategic impact, the HR strategy needs to be in sync

with the business objectives and the systems and processes

incorporated must also support, demonstrating the required

results.

Siddharth further stated that HR management is in a unique

position to supply competitive intelligence that may be useful in

the strateyjc planning process. HR also participates in the strategy

formulation process by supplying information regarding the

company's internal strengths and weaknesses.

1.2 STATEMENT OF PROBLEM

All scientific research is necessitated by a perceived problem. As

such the desire and quest to set out and research on this topic - "The Application of Strategic Human Resources Management in the

Banking Industry" was aroused.

I n other words, it is implied by the mandate of this research

project that Strategic Human Resources Management approach is

being adopted in the banking industry. But there is more to this,

which is determining the extent at which this strategic approach

have been applied and appreciated by the industry, as well as

determining the resultant effects. Until this is done, there cannot

be a genuine conviction and affirmation that all efforts put in place

for the realization and actualization of such strategies can achieve

the set objectives.

As earlier stated, Strategic Human Resources Management is

aimed a t ensuring that the culture, style and structure of the

organization and the quality, commitment and motivation of its

employees, contribute fully to the achievement of business

objectives. Hence determining the extent to which these aims are

achieved is dso of paramount importance.

b

1.3 OBJECTIVES OF THE STUDY

The researsher has the following stated objectives as a focus to

illuminating the Application of Strategic Human Resources

Management as a tool for improving business performance in the

banking industry. 3

0

To appraise how SHRM activities contribute to the achievement

of business objectives as well as assessing the extent at which it

is being recognized in the banking industry.

To determine the extent of the application of SHRM in the

banking industry.

To determine the extent at which the applied SHRM has yielded

or is yielding result in respect of its purpose of application.

To ascertain whether the application of SHRM has in any way

made impact in the banks' activities.

Consequently, the following Research questions are

poised:

u Do SHRM activities contribute fully to the achievement of the

business objectives?

o Is SHRM recognized as a veritable instrument in attaining the

business objectives in the banking industry? 0

How effectively, efficiently and adequately has SHRM been

applied in the banking industry? b

u To what extent has the applied SHRM yielded or is yielding

result in respect of its main objectives?

u Has the application of SHRM in any way made any impact in the

banking industry? 4

1.4 SIGNIFICANCE OF THE STUDY

The research features a study of two commercial banks. It will

evaluate the central trends peculiar to the application of SHRM in

the two banks.

The significance of this study cannot be overestimated. I t is

significant because data so generated from the study is sufficient

to expand further fields of knowledge of this topic from many other

dimensions. The study also presents sufficient challenges to

academics to increase their research interests in the field of

knowledge.

Subsequently, business ,organizations in general and the banking

industry in particular will benefit from this study in that they will

learn more about the implications of proper application of SHRM, in

order to improve business performance, which will be beneficial in

the following ways:

Firstly they will be able to easily adapt to change as the time from

the conception to the execution of a strategy is shortened owing to

the translation of business strategies into HR practices, which is

the essence of SHRM.

*Secondly, they will be able to better meet customer's demand, as

its customer's service strategies have been translated into specific

policies and practices.

Thirdly, they will be able to achieve better financial performance

through its more effective execution of strategy. F

0

1.5 DEFINITION OF TERMS

15.1 STRATEGY

The word "Strategy" was first used in English in 1656 and comes

from the Greek noun 'Strategus'; meaning "Commander in Chief".

The development and usage of the word suggests that it is

composed of Stratos (army) and Agein (to lead) and in its military

context means "to produce large - scale operations. (Aktouf, 1996,

cited from John Bratton & Jeffrey Gold 1999)

In business circles, strategy is adapted to mean "a general

programme of action and a deployment of emphasis and resources

towards the attainment of comprehensive objectives (Koontz and

OtDonnell, 1976, cited from Ezeh and Onudugo, 2002). It is a

"grand design" deployed by an organization towards the realization

of its goals. While the goals and objectives indicate where an

organization is going, strategy clarifies the "how" of how to get the

organization there. (Fubara 1999, Onudugo 2000, cited from Ezeh

and Onudugo, 2002).

According to Alan Price, 1997, " a strategy is the means by which

an orgariization seeks to meet its objectives. It is a deliberate

choice, a decision to take a course of action rather than reacting to

circumstances. It focuses on significant long - term goals rather

than day - to - day operating matters.

1.5.2 H i M A N RESOURCES MANAGEMENT . This is the process of accomplishing organisational objectives by

acquiring, retaining, terminating, developing and properly using

human resource in an organisation. The acquisition involves

retaining, screening, selecting and placing personnel. It includes all

the activities that managers engage in to attract and retain

employees and to ensure that they perform at a high tevei and

contribute to the accomplishment of organisational goals. (John

Bratton and Jeffrey Gold, 1999).

1.5.3 STRATEGIC HUMAN RESOURCES MANAGEMENT (SHRM)

SHRM has been defined as "the linking of human resources with

strategic goals and objective in order to improve business

performance and develop organisational culture that foster

innovation and flexibility". Strategic HR means accepting the HR

function as a strategic partner in the formulation of the company's

strategies as well as in the implementation of those

Strategies through HR activities such as recruiting, selecting,

training and rewarding personnel. (Siddharth Chaturvedi, 2002).

1.6 PROFILE OF CASE ORGANISATIONS

1.6.1 FIRST BANK OF NIGERIA PLC:

First Bank of Nigeria PLC, for over a century has distinguished itself

as a leading banking institution and a major contributor to the

economic advancement and development of Nigeria.

Founded in 1894 by a shipping magnate from Liverpool, Sir Alfred

Jones, the Bank commercial as a small operation in the office of

Elder Dempster and Company in Lagos.

e

Currently with 358 branches spread throughout the Federation, the

Bank maintains the largest branch network in the industry.

To satisfy the needs of its customers, First Bank has diversified into

a wide range of banking activities and services. These include

Corporate, Retail and Mortgage Banking, Registrarship, Private

Equity Financing, Trusteeship and Insurance Brokerage. In

addition, as part of it's strategy of progressive internationalization

in November 2002, the Bank became the first financial institution in

Nigeria to establish a subsidiary bank in the United kingdom.

The Bank has continued to be a leader financing long-tern

development of the economy, which was demonstrated in 1947

when the first long-term loan was advanced to the then

Government.

The Bank has improved tremendously judging from a number of

parameters including number of branches, growth in deposit base,

asset size and size of loans and advances.

Furthermore, its track record of profitability and reliability in sound

banking has continually placed the Bank in its leadership position.

InJine with its mission statement "remain true to our name by

providing the best financial services possible", the Bank will

consistently transform itself as it forges ahead in its second century

of qualitative banking to the nation.

1.62 UNITED BANK FOR AFRICA PLC (UBA)

United Bank for Africa PLC (UBA) is a Public Limited Company

incorporated and licensed to do the business of banking under the

laws of Nigeria. UBA with its subsidiaries is one of the leading and

oldest financial services groups Nigeria and sub-Saharan Africa.

UBAts vision is "to be the undisputed leading and dominant full

service bank in Nigeria" and the mission is "to provide first class

service to our customers, delivered by well trained and highly

motivated people aided by the best technology, while generating

superior returns to our shareholders and positively impacting the

communities served".

UBA1s legacy includes:

t~ The first Bank to be listed on the Nigerian Stock Exchange.

D The first Nigerian bank to open a branch in the United States of

America.

The first and the only Nigerian bank to issue Global Depository

Receipt (GDR), which makes its shares easily accessible and

tradable to institutional investors internationally.

o The first Nigerian bank to establish a branch on a university

campus.

With over 250 outlets across Nigeria as well as two outlets across

Nigeria as well two outlets in New York and Grand layman Island,

UBA has become one of the leading international banks in Africa 9

and poised more than ever before to bring banking services closer 0

to its numerous customers.

United Bank for Africa provides a wide range of financial services

to individuals, national and multinational companies, multilateral

institutions, Governments and non - governmental organisations

as well as small and medium scale businesses. These include retail,

investment and wholesale services.

Services are enhanced through the application of cutting edge

technology and simplified .processes by well trained, competent

and highly efficient personnel of the transaction-banking group.

REFERENCES: 0

I. Alan Price (1997): "Human Resource Management

in a Business Context.

Int'l Thomson Business Press

(website)

2. Bratton I, Gold I. (1999): "Human Resource Management,

Theory and Practice

Macmillan Press Ltd. (USA)

3. Chaturvedi Siddharth (2OOZ):"Strategic Human Resource

Management", Article in the website

4. Ericksen I, Dyer L. (2004): "Toward a Strategic Human

Resource Management Model of High

Reliability Organisation Performance".

School of Industrial and Labour

Relations (ILR) Cornell University.

N.Y.

5. Ezeh LA, Onudugo V. (2002): "Business Policy and Strategic

Management, 1:ssues and Trends.

b Kinsmann Publishers, Enugu.

CHAPTER TWO

2.0 REVIEW OF THE RELATED LITERATURE

2.1 INTRODUCTION

I n any study, such as this, it is always imperative to critically

review written opinion of other people, materials and texts that

have relevance and reference to the topic of discussion. This

chapter therefore, is aimed at reviewing some of the most

important literature on the topic "The application of strategic

Human Resource Management in the Banking Industry".

However, before this is carried out, the research will attempt to

carry out a conceptual overview of Human Resources Management

and Strategic Management process, as well its characteristics. This

will enable us to understand the real concept of human resources

and strategic management, before reviewing Strategic Human

Resources Management and analyzing its benefits, challenges,

processes, models and dimensions.

2.2 HUMAN RESOURCES MANAGEMENT

Availability of resources is a vital need for the survival of any

hu-man venture. These include human, material and financial

resources, which are very useful in the production chain. Out of all

these resources, the human component appears to be the most

vital. This is because human beings articulate and activate other

resources. I n the economy of nations human beings constitute a

very essential aspect of growth and development. '

Generally speaking, the importance of human resources in

organization cannot be over emphasized because human beings 12

are responsible for the overall management and image of the . organization.

Fredrick Harbison (1973, p,3.) defined HR as the energies, skills

and knowledae of people which are or which potentially can or

should be applied to the production of goods and services.

Beer and Spector (1985) emphasized new set of assumptions in

shaping the meaning of HRM. These include:

Proactive system wide interventions, with emphasis on a fit

linking HRM with strategic planning and cultural change.

People are social capital capable of development.

Coincidence of interest between stakeholders can be

developed.

Seeks power equalization for trust and collaboration.

Open channels of communication to build trust and

commitment.

Goal orientation.

Participation and informed choice.

2.2.1 THE ACnVITIES OF HRM

Intense competition pressures organizations to carefully examine

their costs and to explode every possible source of competitive

advantage. Whether the organization is facing increasing

.international competitive or simply more intense pressure to

improve the bottom line, HR has a great opportunity to meet new

and old chgllenges as a business partner. The HR function must

become a partner in developing an organization's strategic plan,

for human resources are a key consideration in determining

strategies that are both practical and feasible. (Lawler 111, E.E, and 13

Mohrman S.A (1997) cited from H. John Bernardin, et all 1998). . This HR partnership must evolve out of the major activities of the

HR function.

Increasingly in both UK and Europe at the beginning of the new

millennium, successful organizations are tying HRM closely to the

fundamental business practices that manage the rest of their

activities. Thankfully, the days when personnel management was

an administrative after thought are largely gone, although the

nature of the function will depend on the type of business it sits in,

the size and complexity of the business activity and the culture and

traditions of the organization.

The largest private and commercial organization will usually have 2

Human Resources Director on its main Board either as a stand-

alone role or as part of a broader Resources directorate or

function. The Director will in turn manage a large and often

powerful function deeply with every aspect of people management

from 'Hiring to firing". In this kind of organization, HRM is at the

center of business decision making; the Managing Director or Chief

Executive will work closely with the HR Director on key business

decisions involving him or her at the outset of policy - formulation,

not as an afterthought, or only to be included when things go

wrong. This is the essence of Strategic Human Resources

Management, and it will be found in major UK and European

companies from Ford to ICL, from Virgin to Marks and Spencer. To

justify its e~istence, this branch of management requires more

than just effective management of a collection of HR related

functions. I n business jargon, it needs to be seen to be "adding

value" to the organization's bottom line, its profitability or 14

effectiveness. I t is highly influential in affecting key business 0

decisions and forming strategies about new products and markets.

It helps secure HR in the right quantity and of the right calibre to

bring these strategies to function. It provides effective in- house

management and regulation of the resources so that they are

nurtured and developed and most importantly retained within the

organization.

2.2.2 HRM ROLES AND POLICIES

I n general, line managers will perform the day-to-day management

activities, with activities requiring specialist knowledge and

expertise conducted by consultants. HRM directors formulate the

overall HR strategy and ensure that HR policies are created to

implement it.

Human resources management policies provide guidelines on what

should be done within the organization and define rules of

behaviour. Policies are therefore, very important in establishing the

ground rules on how members of the organization conduct

themselves. Policies also help ensure consistency and fairness of

treatment for all. They form a framework within which all members

of .the organization operate.

Policies can be formulated for many areas but most organizations

Will have a general HRM policy stating the attitude of the

organization to the people it employs.

. 2.3 THE STRATEGIC MANAGEMENT PROCESS

Strategy is grounded in the array of competitive moves and

business approaches management depends on to produce 15

successful performance. Strategy in effect, is management game 0

plan for strengthening the organization's position, pleasing

customers and achieving performance targets. Managers devise

strategies to guide how the company's business will be conducted

and to help them make seasoned, cohesive choices among

alternative courses of action. The strategy Managers decision

indicates that "among all the paths and actions we could have

chosen, we decided to follow this route and conduct our business

in this manner". Without a strategy, a manager has no thought out

course to follow, no roadmap to manage by, no unified action

program to produce the intended results. (Arthur A. Thompson et

al 1996.)

Management's game plan involves every major function and

department - purchasing, ,production, finance, marketing, Human

Resources, R & D. Each has a role in the strategy. The strategy

making challenge is to mold business decisions and competitive

actions taken across the company into a cohesive pattern. The

prevailing pattern of moves and approaches indicates what the

current strategy is: new moves and approaches under

consideration signal how the current strategy may be embellished

or recast.

It is pertinent to note that the ultimate end of strategy is to make

a firm survive in the face of competition and change. b

According to Authur A. Thompson et al, ibid 1996, crafting and

implementing strategy are core management functions. Among the

entire things managers do, few affect company performance more

fundamentally than how well its management team charts the

company's long-term direction, develops competitively effective 16

strategic moves and business approaches and execute the strategy

in ways that produce the targeted results. Indeed, good strategy

and good strategy execution are the most trustworthy signs of

good 'management.

There's a strong case for linking "good management" to how well

managers craft and execute strategy. Managers must combine

good strategy-making with good strategy execution for company

performance to approach maximum potential. The better

conceived a company's strategy and the more proficient its

execution, the greater the chance the company will be a solid

performer. Powerful execution of a powerful strategy is not only a

power recipe for business success but also the test of excellent

management.

The existence of strategy enables a systematic approach to be

made so that the strengths of the business can be used to the

greatest possible advantage, (Akinola E.0, 2000)

According to Kaplan Robert S., et al, 2001, the strategic planning

process should use initiatives to help the organization its

strategic objective not as ends in themselves.

Developing and implementing a strategy that allows managers to

exercise more control over the firm's direction and to chart a

course that enhances the firm's performance are the objective of

strategic management. (Garth S. et al, 2001)

Strategic planning as defined by Mathis Robert L. et all 1994 is the 0

process of identifying organization objective and the actions

needed to achieve those objectives.

2.3.1 STRATEGIC MANAGEMENT AN ONGOING PROCESS.

The new term strategic management comes to replace to old

nomenclature of strategic formulation by recognizing that in

addition to formulating strategies one has to implement, evaluate

and as a result dictate, change strategies on a continuous basic.

Strategic management can be seen as the process by which top

management determine the long-run performance of the

organization by ensuring careful formulation, proper

implementation and continuous evaluation of the strategy.

The additive, which the suffix "management" brought to the

vocabulary. of strategy formulation, is the issue of continuity. It

came to underscore the fact that strategy formulation is not a one-

short event rather it is a series of event which ensure that the

organization remains focused amidst change and competition. It

brings all the managerial functions of planning organizing, directing

and controlling to bear on the design and Implementation of

strategy. (Arthur A. Thompson et all ibid 1996.)

According to Hitt Michael A. et all 1999, the pursuit of

competitiveness is at the heart of strategic management and the

choices made when designing and using the Strategic Management

process. Firms are in competition with one another- to gain access

to the resources needed to earn above average returns and to

provide superior satisfaction of stakeholders' needs. Effective use

of the inter dependent parts of the strategic management process 18

results in selecting the direction the firm will pursue and its choices . to achieve the desired outcomes of strategic competitiveness and

above-average returns.

The strategic Management is intended to be a rational approach to

help a firm respond effectively to the challenges of the new

competitive landscape. This process calls for a firm to study it's

external and internal environments to identify its marketplace

opportunities and threats and determine how to use its core

competencies in the pursuit of desired strategic outcomes. With

this knowledge, the firms form its strategic intent so it can

leverage its resources, capabilities, and core competencies and win

battles in the global economy.

A firm's strategic inputs provide the foundation for its strategic

actions to formulate and implement strategies. As strategic actions,

both formulation and implementation are critical to achieving

strategic competitiveness and earning above- average returns.

Gb

2.4 THE CHARACTERISIICS OF STRATEGIC DECISIONS

Gerry Johnson, et all 1984 specifically enumerated the

characteristics usually associated with the words "strakyy and

"strategy decisions. These are:

Strategic decisions are likely to be concerned with or affect

the long-term direction of an organization.

Strategic decisions are normally about trying to achieve some

advantage for the organization.

Strategic decisions are likely to be concerned with the scope

of organization's activities.

Strategy can be seen as the matching of the activities of an organization to the environment in which it operates.

19

. 2.4.1 THE FIVE TASKS OF STRATEGIC MANAGEMENT

According to Arthur A. Thompson, et all ibid, the strategy-making,

strategy-implementing process consists of five interrelated

managerial tasks namely:

I. Forming a strategic vision of what the company's future

business make up will be and where the organization is

headed - so as to provide long-term direction, delineate what

kind of enterprise the company is trying to become, and

infuse the organization with a sense of purposeful action.

2. Setting objectives - converting the strategic vision into

specific performance outcomes for the company to achieve.

3. Crafting a strategy to achieve the desired outcomes.

4. Implementing and ,executing the chosen strategy efficiently

and effectively.

5. Evaluating performance and initiating corrective adjustment

in vision, long term direction, objectives, strategy, or

implementation in light of actual experience, changing

conditions, new ideas and new opportunities.

2.5 THE BENEFITS OF A STRATEGIC APPROACH TO MANAGING

The advantage of first-rate strategic thinking and conscious

strategy management (as opposed to freewheeling improvisation,

gut feel and hoping for luck) as stated by Arthur A. Thompson, et

el, ibid, include:

I. Providing better guidance to the entire organization on the

crucial point of "what it is we are trying to do and achieve".

2. Making more managers more alert to the winds of change,

new opportunities and threatening developments.

3. Providing managers with a rationale for evaluating

competing budget requests for investment capital and new

staff - a rationale that argues strongly for steering resources

into strategy - supportive, results - producing areas.

4. Helping to unify the numerous strategy-related decisions by

managers across the organization.

5. Creating a more proactive management posture and

counteracting tendencies for decision to be reactive and

defensive.

The advantage of being proactive is that trial blazing strategies can

be the key to better long-term performance.

2.6 AN OVERVIEW OF STRATEGIC HUMAN RESOURCES

MANAGEMENT (SHRMI.

I n today's intensely competitive and global marketplace

maintaining a competitive advantage by becoming a low cost

leader or a differentiator puts a heavy premium on having a highly

committed or competent workforce. Competitive advantage lies not

just in differentiating a product or service or in becoming the low

cost leader but in also being able to tap the company's special

skills or core competencies and rapidly respond to customer's

needs and competitor's moves. I n other words, competitive

advantage lies in management's ability to consolidate corporate-

wide technologies and production skills into competencies that

empower individual businesses to adapt quickly to changing

opportunities. (Siddharth Chaturvedi, 2002).

I n a growing number of organizations, human resources are now

viewed as a source of competitive advantage. There is greater

recognition that distinctive competencies are obtained through

highly developed employee skills, distinctive organizational

cultures, management processes and systems. This is in contract

to the traditional emphasis on transferable resources such as

equipment. Increasingly, it is being recognized that competitive

advantage can be obtained with a high quality workforce that

enables organizations to compete on the basis of market

responsiveness, product and service quality, differentiated

products and technological innovation.

SHRM as previously defined is the linking of human resources with

strategic goals and objectives in order to improve business

performance and develop organizational culture that foster

innovation and flexibility. Hence strategic HR means accepting the

HR function as a strategic partner in the formulation of the

company's strategies, as well as in the implementation of those

strategies through HR activities such as recruiting, selecting,

training and rewarding personnel.

HR management can play a role in environmental scanning i.e.

identifying and analyzing external opportunities and threats that

may be crucial to the company's success, as further stated by

Siddh'arth Chaturvedi. Similarly HR management is in a unique

position to supply competitive intelligence that may be useful in

the strategis planning process. HR also participates in the strategy

formulation process by supplying information regarding the

company's internal strengths and weaknesses. He noted that the

strengths and weaknesses of a company's human resources can

have a determining effect on the viability of the firm's strategic 0

options.

Siddharth Chatuvedi further stated that the new HR role is to be

viewed from the strategic perspective wherein HR plays an

important and vital role whilst designing and delivering the HR

strategy for the organization. The approach of HR planning activity

is no more in isolation but very much aligned to the strategy of the

organization as a whole. Delivering a strategic impact, the HR

strategy needs to be in sync with business objectives and the

systems and processes incorporated must also support,

demonstrating the required results. . . - 7_:i~y' 4 . 4 , ~ $

. .

.'-"Qp,Fy

According to Bowey (1974) strictly defined, manpower planning is

the activity of management, which is aimed at coordinating the

requirements for, and the availability of, different types of

employee. Usually this involves ensuring that the firm has enough

of the right kind of labour at such times as it is needed. It may also

involve adjusting the requirements to the available supply.

Human Resources planning can also be viewed as the process of

setting human resources goals, devising and implementing

programme of action to achieve such goals and evaluating the

success of the programs Gephart, R.P et all 1984.

According to Mathis Robert, 1994, the strategic role of HR

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.

Strategically then, human resources must be viewed in the same D

context as the financial, technological and other resources that are

managed in organizations. At the same time that jobs are

eliminated and experienced workers become unemployed in some

industries, shortages of qualified people in other industries and

occupations have occurred. Therefore, the supply and demand

must be viewed from a strategic standpoint.

Therefore, effective human resource planning is a process of

analyzing an organization's human resource needs under changing

conditions and developing the activities necessary to satisfy these

needs. (Pattanayak Biswajeet, et all 1997)

2.6.1 THE REALITY OF HR STRATEGY

Organizations vary considerably in the formality of their

strategic planning, which range from detailed 200-page documents

to unwritten 'orientations. The greatest difficulties are experienced

in large, diversified organizations with a wide rage of interests.

I n fact, human resource strategy may only be unproblematic in the

idle circumstances described by Guest 1987, cited from Alan Price,

199,7.

I t should take place within a purpose built modern location, a

green field site employing carefully selected "green" labour.

'Such staff would have no previous experience of the industry in

which the company operates and therefore would be

untarnished by an "undesirable industrial subculture. They

would not be hide-bound by traditional but outmoded ways of

doing things.

The organization requires highly professional management, P

preferably Japanese or American.

Employees should be given intrinsically rewarding work rather

than, uninteresting function for which pay is the sole motivation.

Workers should have security of employment and not be

constantly in fear of losing their jobs.

Guest acknowledges, that these conditions are difficult to achieve

in practice since most organizations, Japanese transplant factories

excepted, have pre-existing staff, buildings and equipment, which

cannot be discarded. They bring with them patterns of power and

behaviour, which may be contrary to the HR philosophy.

2.7 THE BENEFITS OF STRATEGIC HUMAN RESOURCES

The process of formulating HR strategies and establishing

programs or tactics to implement them is called Strategic Human

Resource (HR) Planning. When done correctly, strategic HR

planning provides many direct and indirect benefits for the

company (Luis R. Gomez - Mejia et all 2002), namely:

I. ENCOURAGEMENT OF PROACTIVE RATHER THAN

REACTIVE BEHAVIOUR.

Being "proactive" means looking ahead and developing a

vision of where the company wants to be and how it can use

human resources to get there. I n contrast, being "reactive"

means responding to problems as they come up. Companies

that are reactive may lose sight of the long-term direction of

their business; proactive companies are better prepared for

the future.

EXPLICIT COMMUNICATION OF COMPANY GOALS . Strategic HR planning can help a firm develop a focused set

-of strategic objectives that capitalizes on its special talents

and know-how.

STIMULATION OF CRITICAL THINKING AND

ONGOING EXAMINATION OF ASSUMPTIONS.

Managers often depend on their personal views and

experiences to solve problems and make business decisions.

The assumption on which they make their decisions can lead

to success if they are appropriate to the environment in

which the business operates. However serious problems can

arise when these assumptions no longer hold.

The strategic HR' planning process can help a company

critically reexamine its assumptions and determine whether

the programs that follow from these assumptions should be

modified or discontinued. However, strategic HR planning

can stimulate critical thinking and the development of new

initiatives only if it is a continuing and flexible process rather

than a rigid procedure with a discrete beginning and a special

dead line for completion.

IDENTIFICATION OF GAPS BETWEEN CURRENT

SITUATION AND FUTURE VISION

Strategic HR planning can help a firm identify the difference

between "where we are today" and "where we want to be".

By forcing managers to think ahead, strategic planning can

serve as a catalyst for change and mobilize the firm's

resources to achieve or enhance a competitive edge in the

future. 26

5. ENCOURAGEMENT OF LINEMANAGER'S

PARTICIPATION.

Like most HR activities, strategic HR planning will be of little

value unless line mangers are actively involved.

Unfortunately top management (including HR professionals)

sometimes tends to see strategic planning as its dm&,

with line managers merely responsible for implementation.

For HR strategy to be effective, line managers at all levels

must buy into it. I f they do not, it is likely to fail.

6. IDENTIFICATION OF HR CONSTRAINTS AND

OPPORTUNITIES.

Human resources play a major role in the eventual success or

failure of any strategic business plan. When overall business

strategy planning is done in combination with HR strategic ,

planning, firms can identify the potential problems and

opportunity with respect to the people expected to

implement the business strategy.

7. CREATION OF COMMON BONDS.

A well developed strategic HR plan with involvms~-..t at all

levels can help the firm create a sense of shared values and

expectations. This is important because a substantial amount

of research shows that, in the long run, organizations that

have a strong sense of "who we are" tend to outperform

those that do not. A strategic HR plan that reinforces, adjusts

or redirects the organizations' present culture can foster

values such as a customer focus, innovation, fast growth and

cooperation. 27

2.8 THE CHALLENGES OF STRATEGIC HUMAN RESOURCES.

In developing an HR strategy, the organization faces several

important challenges (Luis R. Gomez - Mejia et a\, ibid 2002) such

as:

1. MAINTAINING A COMPETITIVE ADVANTAGE

Any competitive advantage enjoyed by an organization tends

to be short-lived because other companies are likely to

imitate it. This is as true for HR advantages as for

technological and marketing advantages. The challenge from

an HR perspective is to develop strategies that offer the firm

a sustained competitive advantage.

2. REINFORCING OVERALL BUSINESS STRATEGY

Developing HR strategies to support the firm's overall \

business strategy is a challenge for several reasons. First, t ~ p

management may not always be able to enunciate clearly the

firm's overall business strategy. Second, there may be much

uncertainty or disagreement concerning which HR strategies

should be used to support the overall business strategy.

Third, large corporations may have different business units,

each with its own business strategies. Ideally each unit

should be able to formulate the HR strategy that fits its

business strategy best. Thus, diverse HR strategies may spur

feelings of inequity and resentment.

&VOIDING EXCESSIVE CONCENTRATION ON DAY- *

TO- DAY PROBLEMS.

So'me managers devote most of their attention to urgent

problems. They are so busy putting out fires that they have

no time to focus on the long term. Nonetheless, a successful

HR strategy demands a vision tied to the long-term direction

of the business. Thus, a major challenge of strategic HR

planning is prodding people into stepping back and

considering the big picture.

4. DEVELOPING HR STRATEGIES SUITED TO UNIQUE

ORGANIZATIONAL FEATURES.

No two firms are exactly alike. Firms differ in history, culture,

leadership style, technology and so on. The chances are high

that any ambitious HR strategy or program that is not

molded to organizational characteristics will fail. And therein

lies one of the central challenges in formulating HR

strategies; creating a vision of the organization of the future

that does not provoke a destructive clash with the

organization of the present.

5. . COPING WITH THE ENVIRONMENT.

Just as no two firms are exactly alike, no two firms operate in

an identical environment. For instance, some must deal with ' rapid change, as in the computer industry; others operate in

a relatively stable market, as in the market for food

processors. A major challenge in developing HR strategies is

crafting strategies that will work in the firm's unique

environment to give it a sustainable competitive advantage.

6. SECUWNG MANAGEMENT COMMITMENT

HR strategies that originate in the HR department will have

little chance of succeeding unless managers at all levels - including top Executives support them completely. To ensure

managers' commitment, HR professionals must work closely

with them when formulating policies.

7 . TRANSLATING THE STRATEGIC PLAN INTO ACTION,

Often a strategic plan that looks great in paper fails because

of poor implementation. The acid test of any strategic plan is

whether or not it makes a difference in practice. I f the plan

does not affect practice, employees and managers will regard

it as all talk and no action.

8. ACCOMMODATING CHANGE I

Strategic HR plans must be flexible enough to accommodate

change. A firm with an inflexible strategic plan may find itself

unable to respond to changes quickly because it is so

committed to a particular course of action. The challenge is

to create a strategic vision and develop the plans to achieve

it while staying flexible enough to adapt to change.

STRATEGIC HUMAN RESOURCES MANAGEMENT M O D E B

According to John Bratton et al 1999, some of the successful

models used in Strategic HR Management are:

THE MATCHING STRATEGIC HRM MODEL

The practice of strategic HRM here is concerned with the challenge

of matching the philosophy, policies, programs practices and

process, the five P's (see fig 2.1), in a way which will stimulate and 30

reinforce different employee role behaviours appropriate for each

competitive strategy. It is also argued that HR systems and

organizational structure should be managed in a way that is

congruent with organizational strategy.

In the Devanna et al model, human resource management strategy

and structure follow and feed upon one another and are influenced

by environmental forces (figure 2.1). This basic model constructed

the "bare bones of a theory" on SHRM. HRM is seen to be

'strategic' by virtue of its alignment with business strategy and its

internal consistency.

I n the matching model, the relationship between business strategy

and HRM strategy is said to be "reactive" in the sense that HRM

strategy is subservient to 'product market logic' and the corporate

strategy. The latter is assumed to be the independent variable. As

Miller (1978) emphasizes.

HRM cannot be conceptualized as a stand alone corporate issue.

Strategically speaking it must flow from and be dependent upon

the organizations' (market oriented) corporate strategy (cited in

John Bratton et a\ 1999 p.49)

Political roc ll s

Figure 2.1 Devanna et al's matching model of strategic HRM.

Source: John Bratton et a/ (1999)

The matching model can be critiqued about on conceptual and

empirical grounds. I n the first area, the conceptual, the matching

model is predicated upon the rational view of strategic decision

making grounded in clearly definable predispositions, choice and

action, That is, 'internal strategy - a carefully planned approach to

how people at work are to be deployed, developed, motivated and

controlled -is derived from 'external strategy' - a chosen approach

of competing in the market place. I n other words, it assumes that

organizational controllers act rationally. But as many critical

organizational theorists attest, strategic decisions are not

necessarily based on the output of rational calculation. The

assumption that business - level strategy and HRM strategy has

such logical linear relationship is questionable.

A second problem is with the prescriptive validity of the model.

Some HRM theorists have questioned whether the fit metaphor is

necessarily a desirable goal to achieve. In periods of market

turbulence and financial stringency, there is a tendency for

corporate management to improve profitability by downsizing,

decentralizing decision making and applying more demanding

performance outcomes at the unit level. Also a multidivisional

company pursuing a strategy of acquisition, asset stripping and

downsizing might "logically" adopt a set of HRM strategy that

inciudes compulsory lay-off and a compensation system based on

short-term performance results. I n such a case, the business

strategy and HRM strategy might 'fit', but these HRM policies

although consistent with such a business strategy are unlikely to

generate employee commitment. I n other words, achieving the

goal of' 'close fit' of business and tiRM strategy can contradict the

core 'soft' HRM goals of commitment, flexibility and quality.

Furthermore, the matching model is essentially 'unitary' and it

trends to assume that workers are unproblematic and will comply

with management's perception of the 'needed role behaviours'.

Advocates of tight fit between business and HRM strategies tend to

ignore the realities of the workplace and the possibility that

workers and their unions might influence strategic planning.

2.9.2 TJE RESOURCE - BASED MODEL

The resource - based model of SHRM draws attention to the

strategic value of the work force and to the issues of workplace

learning. Thus it appears ' to embrace a 'sow view of human

resource management. The genesis of the resource - based model

can be traced back to Selznick (1957) cited from John Bratton et al

(1999) who suggested that work organizations each possess

'distinctive competencies' that enables them to outperform their

competitors and to Penrose (1959) who conceptualized the firm as

a 'collection of productive resources'. She distinguished between

'physical' and 'human resources', and drew attention to issues of

learning including knowledge and experience of the management

team. Moreover, Penrose emphasized what many organizational

theorists take for granted that organizations are 'heterogenous'

(Pehrose 1959, cited in John Bratton 1999.)

Putting it in terms of simple SWOT analysis, the matching model

emphasized the strategic significance of external "Opportunities"

and "Threats," the resource - based perspective emphasizes the

strategic importance of internal 'strengths' and 'weaknesses'. This 34

model summarized in fig 2.2 suggests that work organizations 8

achieve sustainable competitive advantages by implementing

strategies that exploit their internal strengths through responding

to environmental opportunities, while neutralizing external treats

and avoiding internal weaknesses.

Figure 2.2: The relationship between resource endowments

and sustained corn peti tive advantage.

Source: Barney 1991 cited from John Bratton el a1 1999

- Firm resources heterogeneity Finn resources i~nmobility

Value rareness imperfect limitability

llistory Ikpendent Casual ambiguity Social complexity Substitutability

+ )

Suqtaincd ccm~pctitive advantage

LIMITATIONS WITH THC RESOURCE - BASED MODEL ------- e

As with contingent matching approach, the resource - based

approach to strategic HRM can be critiqued on both conceptual and

empirical grounds. One problem is that the term itself, 'resource - based' appears to mean different things to different authors. Some

competing terms include 'distinctive competence', 'dynamic

capabilities' 'core competencies' and so on. The definitions range

from narrow specific interpretations to very broad descriptions and

are 'sometimes tautological; resources are defined as firm

strengths and firm strength are then defined as strategic

resources; capability is defined in terms of competence and

competence is then defined in terms of capability (Nanda, 1996

cited from John Bratton et al 1999).

The prescriptive message of the resource - based approach is

based upon the familiar assumptions in Mc Gregors "Theory Y - that workers have talents which are rarely fully utilized in the

workplace and could therefore be seen as no more than 'good

intentions and whistling in the dark'. The prescriptive validity of the

resource - based approach has been questioned by some theorists.

For some, this perspective on strategic HRM makes the mistake it

accuses the matching models of making; that is trying to ascribe

preeminence. to the inside-out perspective of strategy.

dnother problem with the resource - based SHRM model stems

from its implicit acceptance1 of a unitary perspective of the post

industrial workplace in which goals are shared and levels of trust

are high. As is the case with the matching model, advocates of the

resource - bascd SHRM perspective omit the dynamics of 0

workplace trade unionism in the strategic equation.

2.10 DIMENSIONS OF STRATEaIC HRM

I n addition, focusing on the validity of the matching and the

resource - based SHRM models that have just been discussed,

researches have identified a number of important themes

associated with the notion of strategic HUM that are briefly

discussed here namely .

I RE-ENGINEERING AND STRATEGIC HRM

Both models of HRM emphasize the importance of

organizational and job redesign. A new word for the re-

design of work organizations is "Business process R.e-

engineering (BPR) as given by Hammer and Champy. They

defined BPR as:

The fundamental rethinking and radical redesign of business

process to achieve dramatic improvements in critical,

contemporary measures of performance, such as cost,

quality, service and speed (1993) cited from John Bratton et

al 1999.

Hammer and Champy argue for a new approach to

organizational design, work processes and management.

Firstly, the hierarchy of the corporation is 'flattened' as many

middle-management positions give way to 'enabling'

information technology and self-managed work teams.

Secondly, work is redesigned into self-managed teams and

managerial accountability is shifted to the 'frontline': 3 7

have become increasingly more self -managed.

Thirdly, information technology is a 'critical enabler that

allows organizations to do work in 'radically' different ways.

Fourthly, serious management makes an 'unwavering'

commitment to radical change, including cultural change, set

ambitions goals and initiate the re-engineering process. The

elimination of many middle management positions, the

vertical and horizontal compression of job assignments and

self managed work teams draws attention to 'strong'

leadership and corporate culture, and the critical role of

HRM. I n essence, BPR puts the HRM techniques that seek to

make workers' behaviour and performance more congruent

with the organization's, culture and goals.

Finally re-engineering as a social construct, displays the

inherent power of corporate leaders to shape and define

reality.

LEADERSHIP AND STRATEGIC HRM

The concept of management leadership permeates and

structures the theory and practice of work organizations and

hence the way we understand SHRM. I n the management

texts, leadership has been defined in terms of traits,

behaviour, contingency, power and occupation of an

administrative position.

38

Ai!.~r ;; ccmp1x3wrsive r-c!!ir;v! uf the leadership iiterat-urc, 0

Y!A.I (1990) affirms that m y definition of leadership is

' a t W x x y and very subjective' and goes on to define

leadership as:

7he process wherein an individual member of a group

or organization influences the interpretation of events,

the choice of objectives and strategies, the organization

of work activities, the motivation of people to achieve

the objectives, the maintenance of cooperative

relationships, the development of skill and confidence

by members, and the enlistment of support and

cooperation from people outside the group or

organization (cited from John Bratton et a1 1999)

The concept of leadership is a central building block of the

'soft' HRM model's concern with developing a 'strong'

organizational culture and building a high level of worker

commitment and cooperation. Of many management gurus,

Peter Senge (1990) makes the most explicit link between

strategic HRM, workplace learning and leadership when he

writes that 'leaders are designers, stewards and teachers'

. and that a learning organization will remain only ' a good

idea', an intriguing but distant vision until the leadership skills

required are more readily available. Thus, it would be seen

that a key constraint on the development of a resource-

based SHRM model and a 'learning organization' is leadership

comp~tencies. Barney (1991) emphasizes that the resource-

based SHRM requires leaders that develop the organizations

"rare and non-substitutional human assets. (Cited from John

Bratton et 81 1999). 39

In e ~ p r ~ >.,...rice, thc 'trst-~sformational' leader extols to employees

the nced for workirq t x j ~ n d contract for the 'common' good.

This leadership style emphasises the importance of vision

building and the ability to communicate this vision and,

simultaneously, enthuse subordinates to make their vision a

reality. The general assumption is that 'enlightened'

leadership will result in higher productivity and effectiveness.

3. WORKPLACE LEARNING AND STRATEGIC HRM

Within most formulations of strategic HRM, employee

development has come to represent a key 'lever' that can

help management achieve the substantive HRM goals of

commitment, flexibility and quality.

Workplace learning is an interdisciplinary body of knowledge

and theoretical inquiry that draws upon adult learning and

management theory. In practice, it is that part of the

management process that attempts to facilitate work-related

continuous learning at the individual, group and

organizational level. Workplace learning occupies center 1 stage in the 'soft' resource- based SHRM model. Individual,

team and organizational learning can strengthen and thus act

as the engine for sustainable competitive advantage.

From a managerial perspective, it is suggested that an

organjzation's investment in workplace learning acts as a

powerful signal of its intentions to develop its 'human assets';

this can help develop commitment to the organization rather

then compliance. 40

. 4. TRADE UNION AND STRATEGIC HRM

I n the literature, the new HRM model is depicted as

"unitary"; it assumes that management and workers share

common goals and differences are treated and resolved

rationally. According to the theory, if all workers are fully

integrated into the business, they will identify with their

company's goals and management's problem, so that what is

good for the company and management is perceived by

workers as also good for them. Critical to achieving this goal

is the notion of worker 'commitmentt to the organization.

Much of the critical literature also presents the new HRM

model as inconsistent with traditional relations and collective

bargaining, albeit for very different reasons. Critics argue

that HRM policies and prati~ces are designed to provide

workers with a false sense of job security and obscure

underlying sources of conflict inherent in employment

relations.

Yet other industrial relations scholars, taking a more ! traditional "Orthodox pluralist" perspective, have argued that

independent trade unions and variants of the HRM model

cannot only co exist but are even necessary to its successful

implementation and development. "key argue that trade

unions should become proactice or change 'champions',

activgly prornotinq the more positive elements of the 'soft'

FIRM model. Such a union strategy would create a

'partnership' bctwcen management and organized labour

mutual gains for both organization and workers (Betcherman e

et al, 1994; Guest, 1995; Verma, 1995; cited from John

Bratton et al 1999)

SUMMARY

I n chapter 2 we have been able to review some of related

literature on the topic Strategic Human Resources Management

(SHRM).

The strategic management process was reviewed as well as an

overview of Strategic Human Resources Management. The benefit

of SHRM which includes encouragement of proactive rather than

reactive behaviours, explicit communication of company goals,

creation of common bonds etc were analyzed.

The challenges of SHRM were also analyzed which includes

maintaining a competitive advantage, reinforcing overall business

strategy; coping with the environment etc SHRM model as well

different dimensions were also given.

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Haward Business school

Publishing Corporation USA.

21. HoweS.(l995): EssentialElementsofHRM

DP Publications L td Aldine place,

London.

CHAPTER THREE

3.0 RESEARCH METHODOLOGY

This chapter presents the researchers methodology and processes

involved in carrying out the research project. The chapter is

divided into subsections as presented below:

3.1 RESEARCH METHOD

The type of method to be used in any research undertaking is

determined substantially by the nature of the research problem

and purpose of the study. The researcher regards the use of

descriptive or normative method of research as logically sound and

adequate for getting solution to the problems posed by the study.

3.2 METHOD AND SOURCE OF DATA COLLECTION

The researcher made use of multiple data gathering technique in

order to adequately cover research questions and to achieve

precise and reliable result.

The explanatory survey method which embraces questionnaire and

interview was used as primary data gathering instrument, since

researchers consider it to be the most suitable technique for

discerning the kind of information needed by users as well as the

source on which most researchers commonly rely. The researcher

thds used questionnaire and personal interview for the purpose of

primary data collection.

3.3 QUESTIONNAIRE DESIGN

Prudence and conscious effort were employed during the

questionnaire design. The structure is a multiple-choice question.

Thus, it gives the respondents the opportunity of answering "Yes"

or "No" or choosing from a range of answer by ticking the

appropriate choice answer.

A space was made available in form of an open-ended question,

designed to enable respondents express their personal views about

how they wish to participate in the company's affair and how the

application of strategic Human Resources Management can

improve. Such questions may not have been expressed in the

close-ended questions.

Section A of the questionnaire was constructed to secure certain

official but personal information on respondents.

Section I3 is the academic questionnaire proper responsible for the

researcher's validity.

3.4 INTERVIEW METHOD

This method was used to extract responses to questions that were

not included in the questionnaire, but which are vital to the

research. Personal structured and unstructured interviews were

conducted with the admin manager and the human resource

management team of the two selected banks: First bank of Nigeria

PIC and United Bank for Africa Plc.

3.5 LIBRARIES

Materials from libraries and other research units, which included

books, journals, articles, notes, unpublished projects, dailies, were

used as the secondary source of data collection.

This was employed essentially to provide a theoretical framework

for the study. Both private and public libraries were consulted.

These in addition to personal interview compensated for inherent

weaknesses of the primary data gathering methods, thereby

enhancing research reliability.

3.6 THE POPULATION FOR THE STUDY

The population for this study was mostly drawn from the admin

department and human resource management team and other

staff of the banks in the two (2) selected banks in Lagos.

3.7 PROCEDURE FOR DATA GATHERING

Research questionnaires were given to the people scientifically-

selected for this study. They were requested to either circle or tick

the option that best suited their choice and also fill in the blank

spaces with whatever they felt were the answers.

I n order to avoid delay and at the same time ensure high

percentage return of questionnaires, they were distributed by hand

and collected after the respondents have duly completed them.

3.8 VALIDITY AND RELIABILITY OF DATA INSTRUMENT

Validity as used here is the degree or extent to which an

instrument actually measures what it is intended to measure. 50

Therefore, an instrument is valid to the extent it is tailored to

achieve research objectives. Thus, the instruments for this

research was validated by ensuring that the questions were

structured in a manner that will enable the research obtain

information relevant to the purpose and objective of the study.

I n order to maximize reliability of the instrument used for the

research, the investigator ensured that questions were not

ambiguously presented to respondents in a manner likely to

communicate different meaning that could generate inaccurate and

inconsistent responses. +- * I ~ -

YFI( ? p := ""cop I rrne

A P b 3.9 DETERMINATION OF SAMPLE SIZE

To determine a sample size, the researcher conducted a pilot

survey in which 20 of the research questionnaire was administered

randomly on the administration and Human resources department

and the selected management staff of the selected banks.

Out of the number, 17 were correctly filled and returned. It was

therefore taken as a positive response. The remaining 3

represented both the ones that were rejected and the ones not

completed. These were regarded as negative responses. The

percentage of response therefore is 85 and 15 respectively.

To calculate the optimum sample size, the researcher applied the

Freud William Model of sample size determination, calculated at

95% confidence level and 5% standard error, the formulae is:

Where:

N= Sample size

P= Percentage of positive response

Q= Percentage of negative response

E= Percentage of error

Z= Normal variant for the desired level of confidence

Substituting and solving for 'N"

N= (1.96)~ (85.151

sZS = 3.8416.1275

25

= 4898.04

25

=195.92

With this outcome, the researcher decided to approximate the sample to

200 for easy administration.

3.10 METHOD OF DATA ANALYSIS

Data collected will be coded, grouped into frequencies, computed I

and arranged into tables for easy references and analysis.

Presentation methods to be used include simple percentages,

tables and pie charts.

REFERENCES

I. Fruend and William, in Uzoh Stanley (2000):

'Xn Appraisal of Public Relations

Programmes/Strategies in the Enhancement

of the Revenue Base of a Local Government

area': An Unpublished PGO, Project Report,

Department of Marketing, Bus. Admin. Fac.

UNN

2. Uzoh, Stanley 1.L (2002): "An Appraisal of Public Relations Inputs

(Instruments/Strategies) in the A wareness

Creation of HI V/AIDS in Nigeria.

an Unpublished PG, Project Repottj

Department of Marketing, Bus. Admin.

Faculty UNEC.

CHAPTER FOUR

4.0 ANALYSIS AND INTERPRETATION OF DATA

To analyze the data collected, this chapter is divided into two

sections viz, questionnaire administration and test of hypothesis.

These sections are hereby presented in a chronological sequence

in line with the research objectives, questions and hypothesis. The

study seeks to determine the extent to which Strategic Human

Resources Management is being applied in the banking sector.

4.1 QUESTIONNAIRE ADMINISTRATION

SEX AND AGE DISTRIBUTION OF RESPONDENTS

The table below summarizes the distribution of respondents by Sex

and age.

TABLE 4.1 SEX AND AGE DISTRIBUTION OF

RESPONDENTS

I Age range in years \ Female \ Male 1 Total !

I n table 4.L, a summary of the distribution of questionnaires by sex

-

20-29

30-39

40-49

50

60 and above b

and age consideration was tabulated. The table indicated that 65

out of the 200 questionnaires retrieved were female while the

No

5

25

30

5

65 I

O/O

-

No

11

47

62

15

135

No

16

47

92

20

200

O/O

-

%-, --

I.

1.

.. II.

remaining 135 (67.5%) represented the male. Further, the analysis

revealed the percentage of age range in years for both female and

make respondents, respectively.

On the whole, the questionnaires were administered on the two

categories of respondents.

The HR/Admin management team and selected management staff

of FBN PIC

The HR/Admin management team and selected management staff

of UBA PIC.

The total number of respondents and questionnaires administered

were presented in table 4.2 below:

Table 4.2 shows the total number of respondents of this research

study. Out of a total of 200 questionnaires administered, 120 were

from FBN, while 80 were from UBA Plc. Furthermore, out of the

200 questionnaires distributed to the two banks 200 were retrieved

and found useable. This means that 100% of the questionnaires

distributed were useable.

This means that 100% of the questionnaires distributed were

useable.

55

TABLE 4.2: TOTAL NUMBER OF RESPONDENTS:

RESPONDENTS

First Bank of

Nigeria PIC

United Bank for

Africa PIC

NO OF COPIES

ADMINISTERED

120

80

200

NO OF USEABLE

RESPONSE COPES

RETRIEVED

120

80

200

Rate %

---- 100%

.---- ----

100 --

SECTION B 0

4.2 RESEARCH INFORMATION_

To be able to appreciate the influence of SHRM in the achievement

of the bank's overall business objectives, the researcher would

know whether they really understand what SHRM is all about, if

they engage in SHRM activities and the extent to which these have

contributed to the achievement of business objectives of the bank.

The answers to the aforementioned are addressed in the tables

below.

TABLE 4.3: UNDERSTANDING OF SHRM -- 1 RESPONSE VARIABLES 1 NO OF RESPONDENTS \ PERCENTAGE 1

Source: Response to question No 2. (FBN and UBA PIC)

Yes

No

Neutral

Total

Table 4.3 indicates that the staff of FBN PIC and UBA PIC has full

understanding of what SHRM is all about. This is demonstrated by

the respondents who all (10O0/0) affirmed to this assertion.

TABLE 4.4: ARE YOU AWARE OF THE PRESENCE OF

200 - - 200

SHRM I N YOUR BANK?

100

-- - -

100

I 1 Neutral I - I - ---I

RESPONSE VARIABLES

Yes

I I I

Source: Response to question No 3 by FBN PIC and UBA PIC staK

RESPONDENTS

200

Total

PERCENTAGE -- -

200 100

Table 4.4 shows that all the selected staff of both banks under

study is aware of the presence of SHRM in their bank. This is

demonstrated by respondents (200) who all (100%) affirmed to

the assertion.

TABLE 4.5: HAVE YOU OBSERVED ANY FORM OF U N K

BETWEEN HE AD STRATEGIC GOALS AND

OBJECTIVES OF THE BANK?

I RESPONSE VARIABLES 1 RESPONDENTS ( PERCENTAGE I I 1 FDN PLC ( UBA PLC 1 TOTAL I

Table 4.5 goes a long way to buttress the fact that HR and

strategic goals and objectives of the banks are linked. This is

substantiated by the fact that 95 respondents from FRN PIC

representing 79% are of the view.

While from UBA Plc, 70 respondents, representing about 88% are

also of the same view.

In totality, 165 respondents of FBN and UBA PIC representing 83%

went for the view that HR and the strategic goals and objective of

their banks.are linked.

Yes

No

Don't know

Total

Sources: Responses to question No 4

I I .-.

NO

95

10 .

15

120

O/o

79.2

8.3

12.5

100

NO

70

- 10

80

O/o

87.5

12.5

100

NO

10

25

200

O/o

165"=:?-.. .---.

5 I 12.3-(

1 0 0 \ J

TABLE 4.6: HR MANAGEMENT CAN PLAY A ROLE I N

ENVIRONMENTAL SCANNING, THAT IS, IDENTIFYING AND

ANALYSING EXTERNAL OPPORTUNITIES AND THREATS

THAT MAY BE CRUCIAL TO THE COMPANY'S SUCCESS.

RESPONSE VARIABLES

Table '4.6 shows that FBN PLC'slc staff strongly agree that HR

management play a role in identifying and analyzing external

opportunities ad threats that may be crucial to their organisation's

success. This can be substantiated by the fact that 100

respondents, representing about 83% are of the view while 40

respondents, representing 5O0/0 of UBA PIC staff are of the same

assertion. I n totality, 140 respondents representing 7O0/0 of the

total respondents are of the view that HR management can play a

role in environmental scanning i.e. identifying and analyzing

external opportunities and threats that may be crucial to the

com pany 's success.

Strongly agree

Agree

Disagree - ----- Total L-

RESPONDENTS

FDN PLC

PERCENTAGE

UBA PLC 1 TOTAL -7

Source: Response to question No. 5

NO

100

20 -

120

O/O

83.33

16.67

100

NO

40

35

5

80

O/o

50

43.75

6.2 5

100

NO

140

55

200 --L- ---A

---- O/o

.--- -.-- 70 i ---4 19.25 s--'z--\ - - - - -- - i 100 1

-- --

TABLE 4.7: THE STRENGTHS AND WEAKNESSES OF YOUR

BANK'S HR CAN HAVE A DETERMINING EFFECT ON THE

VIABILITY OF THE BANK'S STRATEGIC OPTIONS

Table 4.7 indicates that the respondents from FBN PIC strongly

-

agree that the strengths and weaknesses of their HR can have a

determining effect on the viability of their strategic opti~n. This can

RESPONSE VARIABLES

- -

Strongly agree

Agree

Eg ree

be proved by the fact that 75 respondents representing 62.S0/0

120 I00 Vo ta' 1-1

supported the assertion. On the other hand, 35 respondents,

80 100

representing 43.8% from UBA PIC agree to the assertion. On the

Source: Response to question No. 6

- ---- - - - PERCENTAGE

- UBA PLC TOTAL

1 No

35

40 ---.

5 6.2

RESPONDENTS

FDN PLC

whole, 110 respondents, representing 55O/0 of both categories of

No

75

33

12

respondents are of the same assertion that the strengths and

O/o .--

62.5

27.5

10.0

weaknesses of their HR can have a determining effect on the

visibility of their strategic option.

TABLE 4.8: DO YOU BELIEVE THAT SHRM ACIXVITIES

CONTRIBUTE TO THE ACHIEVEMENT OF BUSINESS

OBJECTIVES?

PERCENTAGE - -- - - ..

UBA PLC TOTAL

Source: Response to question No. 7

Strongly agree

Agree

Disagree

Total ---

From table 4.8 it can be deduced that 100 respondents,

representing 100% of the total respondents from the two banks

are of the view that SHRM activities contribute to the achievement

of business objectives.

TABLE 4.9: SHRM ACTIVITIES CONTRIBUTIONS TOWARDS

80

80

10

THE AlTAINMENT OF OVERALL CORPORATE GOALS AND

66.7

25.0 -

8.3

OBJECTIVE

- 40

35

5

120 -

80 100

RESPONSE VARIABLES

Positively affects

performance --- Reduces labour

turnover

%%ides competitive

intelligence

I I

PERCENTAGE

50

43.8

100

RESPONDENTS

FDN PLC UBA PLC

NO

4

6

20

------ ------

120 50 .

200

TOTAL

NO

2

O/o

3.33

5.0

16.67

\ 65

100 1

NO

e O/o

2.5

2

I0

6.2

32.5

O/o ---.--

' 3 1 i

-- -. . .

2.5 8 4

t --.-

15 -.

7.5 1

Source: Response to question No. 8

Provides a more careful

and systematic

approach

A l l o f the above and

more 1 -

Table 4.9 above shows that SHRM activities make all the

mentioned contributions and more towards the attainment of the

overall business goals and objectives. This can be substantiated by

the f ad that 140 of the respondents representing 7O0/0 of the

questionnaire administered agree to the assertion.

TABLE 4.10: DO THE RELEVANT OFFICERS/MANAGEMENT

TEM I N YOUR BANK RECOGNIZE SHRM AS A VERITABLE

INSTRUMENT I N THE ACHIEVEMENT OF BUSINESS

OBI ECTIVES?

PESPONSE VARIABLES \ RESPONDENTS 1 PERCENTAGE 1

10

120

8.33

100

.--

I--

Source: Response to question no 9

- - - .. -- . .- - - FDN PLC '77

L

Table 4.1Q indicates that the relevant officers/management team

recognizes SHRM as a veritable instrument in the achievement of

business objectives. This can be substantiated by the fact that 85

6

80

respondents, representing 70.8O/0 of FBN PIC staff supported the 6 1

7.5

I

Very greatly

Greatly ,

~ o t greatly

loo

NO

45

30

5

1

i I

)I 200 100

. -. . - - .-.--..A

80

NO

85

23

10

O/o

56

38

6

O/o

70.8

20.8

8.4

120 100 100 200 loo---\ _I --.--.-. J

NO

130

55

15

-I

O/o -- ..

65

27.5

7.5

opinion. While 45 respondents, representing 56% of the 0

respondents from UBA PIC are of the same assertion too. In totality

130 respondents, representing 65% of the total respondents from

the two banks were of the view that the relevant

officers/management team of the banks recognize SHRM as a

veritable instrument in the achievement of business objectives.

TABLE 4 . : HOW EFFECTIVELY, EFFICIENCY AND

ADEQUATELY HAVE SHRM BEEN APPLIED I N ACHIEVING

OVERALL BUSINESS OBJECTIVES.

/ RESPONSE VARIABLES 1 RESPONDENTS \ PERCENTAGE - 1 I

NO O/o I NO O/o NO O/o

Very greatly 5 . 4 5 6.25 10 5 --- Greatly 25 . 21 15 18.75 40 20

-- Not greatly 90 75 60 75 150 75

Total 120 100 80 100 I 11, _ _ - .

Source: Response to question No. 10

From table 4.11 it can be seen that SHRM have not been

effectively, efficiently and adequately applied in achieving the

overall business objectives. This can be proved by the fact that 90

and 60 respondents from FBN PIC and UBA Plc, representing 75%

and 75% respectively agreeing that SHRM have not been greatly

.applied. I n totality, 150 respondents representing 75% of the total

respondents also agree that SHRM have not been greatly and

effectively applied in achieving corporate objectives.

TABLE 4.12: TO WHAT EXTENT HAVE THE APPLIED 0

SHRM YIELDED OR I S YIELDING RESULT

I N RESPECT TO ITS MAN OBJECTIVES?

( RESPONSE VARIABLES ( RESPONDENTS 1 PERCENTAGE I

Table 4.12 shows that the applied SHRM have very extensively

Very Extensively

Extensively

Not extensively

Total

yielded result in respect to its main objective. The assertion is

substantiated by the fact that 115 out of the total respondents

Source: Response to question No. I I

representing about 58% of the entire questionnaire administered

FDN PLC

were of the same view. This can better still be represented by a pie

NO

78

32

10

120

chart,

O/o

65 -

26.67

8.33

I00

UBA PLC

NO

37

38

5

80

TOTAL ---- - - . - -. --

NO O/o

115 57.5

O/o

46.25

47.50

6.25

100

----.-

70 - -. 15

200

.-,--- --

35 i , --.-- - . - 7.5

,-----

100 I L

TABLE 4.13: HAS THE APPLICATION OF SHRM I N ANY 0

WAY MADE POSITIVE IMPACT I N YOUR

BANKS ACTIVITIES?

( RESPONSE VARIABLES \ RESPONDENTS 1 PERCENTAGE I I

FDN PLC

Source: Response to question No. 12

UBA PLC TOTAL --I Yes

No

Don't know

Total

Table 4.13 above indicates that the application of SHRM has made

positive impact in the two banks under study. This can be

substantiated by the fact that 112 respondents, representing

93.3% of the respondents from FBN PIC support the opinion. While

80 respondents representing 10O0/0 of the respondents from UBA

PIC are also of the view. On the whole 192 respondents i , I

representing 96% of the total respondents are of he same

assertion that the application of SHRM has positively impacted on

the banks' daily activities.

NO

112

8

120

O/o

93.33

6.67

100

NO

80

-

O/o ----,

100

NO

- 80

-- - .. -- O/o

--- -- - --- 100

- 1 192

. 96

. --. - --- i

TABLE 4.14: THE EXTENT OF THE IMPACT MADE BY *

THE APPLICATION OF SHRM.

- . -. - ,- .

NO O/o NO O/o NO O/o -- - -- - . .- -. - - -- - .

Very Strong impact 62 52 46 57.5 108 54

Strong impact 44 37 30 37.5 74 37

NFAK impact 14 12 4 5 18 9 . . .- .

Total 120 100 80 100 200 100 I I

Source: Response to question No. 13

Table 4.14 above indicates that SHRM so far applied made a very

strong impact in the activities of the banks under study. This can

be substantiated by the fact that 108 respondents, representing

54% of the total respondents from the two banks are of the same

opinion that the application of SHRM also makes very strong

impact in the day-to-day activities of the banks.

TABLE 4.15: WHAT FACTORS ARE RESPONSIBLE FOR

THE NON-APPLICATION OR INEFFECTIVE APPLICATION

OF SHRM I N THE BANKING SECTOR?

RESPONSE VARIABLES

Ignorancie of SHRM

Lack of interest in

SHRM . Lack of clarity and

lucidity of the benefits

RESPONDENTS

FDN PLC

PERCENTAGE

NO

10

14

30

O/o

8.3 '

11.7

25

UBA PLC

NO

2

8

20

. . . - .- . - TOTAL

O/o

2.5

10

25

NO

12

22

50

-- ...- O/o ----. 6

li

25

--d

Table 4.15 above shows that all the aforementioned reasons and

more could be responsible for the lack of effectiveladequate

application of SHRM in the banking industry. This can be

substantiated by the fact that 54 respondents from FBN Plc

representing 45% of the respondents are of the opinion, while 40

respondents from UBA Group PIC representing 5O0/0 of the

respondents are also of the same opinion. Hence in totality 104

respondents representing 52% of the total respondents from both

are in support of the assertion.

of SHRM.

SHRM believed' to be

unrealistic.

All of the above and

more.

Source: Response to question No. 14

12.5

50

12

54

-

30

104

- - 15 - 1

- ..-. 52

--

10

45

10

40

CHAPTER FIVE

5.0 SUMMARY OF FINDINGS, RECOMMENDATIONS AND

CONCLUSIONS

The various data gathered has been presented and analyzed in

chapter four. This chapter therefore will discuss issues generated

from the analysis and make recommendations accordingly.

5.1 SUMMARY OF FINDINGS

The researcher in the course of this study found out the following:

1. The banking industry in Nigeria is aware of SHRM.

2. Majority of the major officers and management team in the

banks studied understands what SHRM is all about.

3. Also, majority of the management team of the banks recognizes

SHRM as a veritable instrument in the achievement of business

objectives.

4. SHRM activities contribute to the attainment of business goals

and objectives.

5. SHRM have not been effectively, efficiently and adequately

applied in achieving overall business objectives.

6. SHRM so far applied have yielded or yields great result in the

banking industry.

7. The application of SHRM has made great impact in the bank's

activities.

.8. Some of the factors that may be responsible for the non-

applicationlineffective application of SHRM in the banking

industry,.

5.2 RECOMMENDATIONS

Based on the data analysed and findings made, the researcher

would like to make the following recommendations:

1. All the relevant officerslmanagement team should have an in-

depth knowledge of what SHRM is all about.

2. All the relevant officerslmanagement team of the bank should be

involved in SHRM, Le., all concerned should be made to

participate and contribute to SHRM policies and strategies.

3. SHRM should be efficiently, effectively and adequately applied. I n

other words, there should be strict/timely adherence to the

formulated strategies. 'mu; ' \ I TY N ! ~ ~ ~ ~ ~

f- dOD#b,

4. Effort must not be relented or discouragement entertained as

great result has yielded from SHRM so far applied,

5. Since strategic management is an on-going process, efforts

should be made to constantly review, revise and evaluate

strategies formulated to reflect current trends. I n other words

SHRM should not be viewed as static.

5.3 CONCLUSION . From the analysis of the data and findings, the

researcher would like to conclude a s follows:

1. Mere knowledge of SHRM is not enough, but it's effective

and efficient application is what counts. Therefore managers

and responsible officers should not just be satisfied with the

head knowledge of SHRM, but should be majorly concerned

with it's application. This is important as this will enable

them reap the benefits associated with its application.

2: For SHRM to be effective all the relevant officers and

management team must be involved and duly consulted as

strategy formulation is being done.

3, Finally, there must be room for review and re-evaluation of

formulated strategies to be able to keep abreast with the

current trends in the industry, and also to take competitive

advantage.

AREAS FOR FURTHER RESEARCH

1) Akinwala Abiodum E.J. (1999): Human Resources Management

an overview, Concept Publication limited (Lagos). Pages 77 - 104

2) Alan Price (1997): "Human Resource Management in a

Business Context. Int'l Thomson Business Press (website),

Chapter 6.

3) Cheatle Kelvin (2001): Mastering Human Resources

Management, Pal Grave Master Series, Chapter 19, 69

4) ~ussel' Joyce C. A. (1998): Human Resources Management

(second Edition), an experimental approach, Irwin/Mc Graw - Hi\\ (Singapore), Chapter I.

5) sally Howe (1995): Essential Elements of HRM, DP publications

Ltd Aldine place, London, Chapter I.

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S d ~ n e r G., Shepard AmI Podlny I. (2001): Strategic management "

John Wiley and sons Inc.

Uzuh, Stanley I. L (2002): 'An Appraisal of Public Relations Inputs (Instruments/Strategies) in the Awareness

Creation of HIV/AIDS in Nigeria b

An Unpublished PG, Project Report,

Department of Marketing, Bus. Admin.

Faculty UNEC.

Department of Management

Faculty of Business Administration

University of Nigeria

Enugu Campus

Dear Respondent,

REQUEST TO COMPLETE A OUESTIONNAIRE

The researcher is a post graduate student (MBA) of the above named

institution. Her research topic is "The Application of Strategic Human

Resources Management in the Banking Industry" (a study of First Bank

of Nigeria PIC and United Bank for Africa Plc). Could you please complete

the questionnaire, the information is strictly academic and would be

treated with utmost confidence.

Thanks for your anticipated co-operation.

Yours faithfully,

Oduche, Ebelechukwu P.

OUESTIONNARE 0

Please tick where a~propriate

SECTION A: PERSONAL DATA

1. Sex: (a) male (B) Female

2. Age (A) 20-29 years

(B) 30-39 Years [-I (C) 40-49Years 1-1 (D) 50-59 Years

(E) 60 and above r\ 3. Years in service

(A) 0-5 Year

(B) 6-10 Year \I (C) 11-15 Years 1-1 (D) 16 and above 1 1

4. Staff category

A) Management

(B) Senior

(C) Junior 0

5. Academic Qualification

(A) U~D/BA/BSC r\ (B) MA/MSC.MBA

. (c) P. H. D. n (0) Professional I] (E) Others 0

SECTION B: RESEARCH INFORMATION 0

1 Do you have Human Resources Department in your bank?

(a) Yes (1 (b) No[-\ (c) Don't knoq-1

Do you know what strategic Human resources management

(SHRM) is all about?

(a) ~eq-1 (b) No I\ (c) Don't know\( (d) Neural r\ Are you aware of the existence of SHRM in you bank

b) No a) Yes (1 ( (c) N e u r a l r l

Have you observed any from of link between HR and the strategic

goals and objective of the banks?

a) Yes (1 (b) No (1 (c) Don't k n o l l

HR management can play a role in environment scanning it

identifying' and analyzing external opportunity and treats that may

be crucial to the company's success.

(a) Strongly a g r e e r l (b) ~gr$-1 (c) ~isagrq-1

Do you believe that the strengths and weaknesses of your banks

HR can have a determining effect on the viability of the bank's

strategic option?

(a) Agree (-1 etc

7. Do you believe that SHRM activities contribute to the achievement

of busines~ objective?

(a) Yes (b) No

8. What contribution have SHRM activities made towards the

attainment of overall corporate goals and objectives?

(a) Positively affects performance

(b) Reduces labour turnover

(c) Provides competitive intelligence

(d) Provide a new carefu\ and systematic approach to

charge.

9. Do the relevant officers/management team in your bank recognize

SHRM as a veritable instrument in the achievement of business

objectives?

10. How effectively efficiently and adequately have SHRM been applied

in achieving overall business objectives.

(a) Very greatly El (b) Greatly El (c) Not greatly

I . To what extent have the applied SHRM yielding or is yielding result

in respect to its main objectives.

(a) Very extensively) (b) Extensively I\ (c) Not extensively (d) Not at all

12. Has the application of SHRM in any way made any impact in your

bank's day-to-day activities?

(a) ye d (b) NO El etc.

13. I f yes to what extent?

(a) Very strong impact I] (b) Strong impact n (c) Weak impact

14. What factors are responsible for the non-application ineffective

application of SHRM in the beach industry?

(a) Ignorance of SHRY-1

(b) Lack of interest in SHRM\]

(c) Lack of clarity and lucidity of the benefits of s ~ ~ 4 - l (d) SHRM believe to be u n r e a l i s t i c r ]

(e) All of the above and more T I