IMPACT OF HUMAN RESOURCE MANAGEMENT FOR THE DEVELOPMENT OF ORGANISATION PRODUCT AND SERVICE

CHAPTER ONE

1.0

INTRODUCTION This chapter presents the background of this study, statement of problem, research objectives, research questions, formulated hypotheses, significance of study and scope of study.

1.1

BACKGROUND TO THE STUDY Certainly, many organizations have voiced the idea that their human resources differentiate them from their competitors. Particularly, the public sectors Organization as Nigeria Port is widely diverse as has focused on human resources as having special strategic value for organization development..

Some ways that human resources become a core competency in an organization is its ability to increase productivity and performed credibly for organization development in ad mists of several competitor. The organization unique efforts to attracting and retaining employees with unique professional and technical capabilities, investing in training and development of those employees and compensating employed in ways that retain and keep employees competitive with their counterparts in other organizations.

For many organizations talented employees are the cornerstone of a competitive advantage. If the organization competes based on new ideas, outstanding customer service, or quick accurate decisions, having excellent
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employee is critical of course, not every organization must compete on the base of having the best employees, but even for those that do not, employees are major source of performance, problem, growth, resistance and lawsuits. Therefore, designing systems to effectively manage people with their needs, expectations, quirks, legal rights motivation and high potential is a challenge to every organization. Consequently, the increases in organization productivity and performance depends on the human resources development and management. The public sector in Nigeria might have attained this position or not therefore necessitated for this study.

1.2

STATEMENT OF THE PROBLEM There are divergent opinions on Human Resource development in Nigeria public Enterprises department as its impacts are not felt and insignificant; however, in the past employers of labour have been complaining that employee perform their work efficiently when they are newly employed but with time, their efficiency and productivity decreases, in context employee have attributed decrease in efficiency and productivity to the fact that employers do not provide adequate incentives, motivation and training to enable them put in the their best. The use of incentives, motivation and training should be the entire factors for development of Human Resource. Therefore, the problems of this study can be based as follows: Lack of effective and well organized training program for employee. Poor incentives and benefits administration. Inability. to motivate employee(monetary and non monetary) and ineffective management of performance appraisal.

1.3

OBJECTIVES OF THE STUDY The objectives of this study are as follows:

To ascertain the extent to which training can influence human resource performance. To examine how increases and effective management of incentives and benefits will influence human resources performances and increase productivity.

To also examine the extent of which employees motivation will increase productivity. and to examine the public enterprise management of performance appraisal and how it affects human resources performances

1.4

RESEARCH QUESTIONS The research questions for this study are as follows: What effect is training on the development of human resource in the public sector? Did the organization incentives and benefits influence employees performances? Are the human resources in public sector adequately motivated? How effective is the management of performance appraisal in public sector? And how is it affecting employees?

1.5

FORMULATED HYPOTHESES Certain primary statements are formulated and subsequently tested for, in order to determine their validity and arcertainbility. Ho: When organization develops training programs, the manager should not set specific and measurable goal specifying what employees are to learn

Hi: When organization develops training programs, the manager should set specific and measurable goal specifying what employees are to learn.

Ho:

Managers in public sector needs not to understand how and why human resources make different choices regarding employee performance and motivation.

Hi:

Managers in public sector needs to understand how and why human resources make different choices regarding employee performance and motivation.

1.6

SIGNIFICANCE OF THE STUDY There is the need now than ever to re-discover the weakness and the strengths of Human Resources in organization. The study will throw more light in to the effectiveness of the use of Human Resources in developed organizational policies.

It will also unravel the problems, frustrations and anxieties that Human Resources managers meet in their work environment, especially where decisions making are necessary.

The study will also serve as a useful tool for those in the management science discipline who would like to carryout further research in this area. Human Resources management satisfies the basic needs of employees motivation, training and development these make the Human Resources more respected and loyal to the organization. It would assist management to create a situation where organizational and employees goal can be satisfied and promote unit through Human Resources.

1.7

SCOPE/LIMITATION OF THE STUDY This study is concerned with Human Resources development using Nigeria Port PLC headquarter in Lagos.

However, this study is limited due to the inability of the researcher to have access to the major data that are necessary. The organization concerns refused access to major data that are necessary for the study; apart from this, time and money constraint also limited the effective of this research.

1.8

DEFINITION OF TERMS HUMAN RESOURCES: The available working force that are participating in the production/servicing process. -

TECHNICAL CAPABILITY: The special employees that have skilled on a particularly job.

ACCURATE DECISIONS: The decision make at the appropriate time for the development of organization.

PUBLIC SECTOR: The non profit organization set by government to meet the citizenry obligation.

CHAPTER TWO

LITERATURE REVIEW

2.1

INTRODUCTION According to Ason (1999), the primary interest of Nigerias colonial masters was administration and maintenance of law and order. The colonial regimes human resources development and utilization policy was, therefore, aimed at the development of indigenous personnel for these two purposes. The organized and professionally managed firms within the private sector at that time were merely outfits or branches of parent companies from Europe whose essential aim was exploitation of the resources of the nation for the benefit of their home nations, and not the industrial development of Nigeria. It was, therefore, not a surprise that their own respective policies on the development and utilization of personnel were directed at achieving this outward-looking goal. In both the public and the private sectors, there were no serious and well-meaning efforts to develop indigenous staff during the pre-Independence era. Training of Nigerians largely took the form of formal education which allowed them to acquire only qualifications needed to obtain enhanced administrative appointments.

According to Hillard (2000); this lack of appreciation of the role of specialized knowledge and professional training in the management of the nations public service persisted until the dawn of Independence. The colonial masters woke up to the reality that indigenous staff would be needed to take over the management of the Service from the expatriate officers. The Colonial Government further realized that it was vitally necessary to equip the Nigerians, who were going to take over, with the
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additional skills they would need to tackle the challenges of nation-building in the immediate future. A Nigerianization Commission was appointed with the specific task of speeding up the supply of trained Indigenous manpower to the Service. Following the publication of the final report of the Parliamentary Committee on the Nigerianzation of the nations Public Service in 1960, the Standing Committee on training and the Nigerianization Office came into being as the Federal Governments Central Authorities responsible for training matters. These two bodies were, among other things, to provide general supervision control and various training systems as may be possible. In this manner, manpower development became institutionalized in the Federal Civil Service with the Nigerianization Office being initially part of the Prime Ministers Office. Soon after, the Office was merged with the former Federal Ministry of Establishments which was responsible for personnel matters, including the Nigerianization of the Federal Public Service. (Yahaya (1999)

When Nigerians took over the reins of government in October, 1960, one of the first things that became clear was the need to develop indigenous personnel in all sectors of the economy to implement the various programmes and goals meant to be pursued as a means of enhancing the welfare and security of Nigerians. Having achieved substantial progress in the Nigerianization of the Federal Public Service, emphasis shifted to the urgent problem of staff development and career planning with the intention of preparing Nigerian officers to deal with and tackle the complex problems usually associated with a dynamic and growing Public Service in a developing country.

In this spirit, Government sought the assistance of the Institute of Administration, of the University of Ife (now Obafemi Awolowo
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University). A survey was conducted on the training needs of the Federal Civil Service. This Identification of Training Needs exercise conducted by the late Wolle, (1969), Senior Consultant in Public Administration, revealed, among other things, that there was an urgent need for systematic and regular programme for the development of civil servants of all cadres. After considering Wolles report, the Government in its first ever White Paper on Staff Development recognized that training was indispensable for efficient manpower utilization. The White Paper, Issued in April, 1969 under the title of A Statement of Federal Government Policy on Staff Development in the Federal Public Service, can be regarded as Governments first formal definitive guidelines on personnel development in the Federal Civil Service. The position, therefore, is that for a long while now the Federal Government has accepted the responsibility to fully train its officers as a means of not only enabling them to do their jobs better but also as a way of preparing them for advancement and high responsibilities.

Government has long ago recognized the need for an integrated national policy on human resources development and utilization that will take account of the needs, goals and objectives of the public sector as well as of the private sector.

2.2

Human Resources Development and Utilization: Policies and Practices in Nigeria. The development and utilization of human resources is of prime concern to any nation, irrespective of her level of development or ideological leaning because, of all the resources of a nation, people are the most valuable. Nigeria is no exception to this universal truth. That this area of national endeavour is engaging the attention of the Government today should, therefore, not come as a surprise. Although Nigeria does not, as yet, have
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an integrated national policy on human resources development and its utilization, individual policies have been existing in the public and private sectors for a long while. The operative and fundamental question now is whether or not these policies have been effective and whether or not it will not be better to integrate them under an umbrella of a national policy. It will be apposite to observe that in order to develop a worker, he has to, ab initio, be in the right post. Recruitment and deployment practices, therefore, become very relevant m this context. Practices in those two areas, particularly in the public sector, have been severely criticized over the years. Given the stridency of these criticisms, it should be comforting that one of the main aims of the Civil Service Reforms is to remedy identifiable inadequacies in this area, hence the decision to introduce

professionalization into the Civil Services, Although private sector organizations generally tend to engage in better and healthier recruitment and deployment practices, primarily because they suffer from fewer political pressures, they are just as susceptible to social pressures which, as in the public sector, influence their recruitment and redeployment of staff. (Ason 1999).

Government has recognizes the benefits derivable from a high level of integration between the private and public sectors in policies and practices on human resources development and utilization. A recent step taken to make this happen is the provision in the Civil Services Reforms for a staff interchange scheme between the Civil Services and the private sector. It can also be observed that although training tends to be under-funded in both the public and private sectors, senior staff tend to get greater attention generally to the detriment and at the expense of the junior staff. On its own part, the Federal Civil Service has recognized this unwholesome development and the dire consequences it holds in store. Suitable steps are, therefore, being
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taken to direct greater attention and resources to the training and development of junior staff who always constitute the greater percentage of staff, in practically every organization.

The following relevant questions need also to be tackled: (i) What adverse effects has the nation suffered up till now from the absence of a national policy on HRD and U? (ii) How much of the fabled low productivity of the Public Service can be attributed to human resources development and utilization practices? (iii) How much of the much-taunted greater efficiency of the private sector organizations can be accounted for by their HRD and U practices? (iv) Are there common trends running through HRD and U policies and practices in private sector organizations? (v) How much of a handicap does lack of requisite data constitute to formulation of good policies and development of efficient practices in HRD and U in Nigeria and how can these adverse effects be minimized? (vi) Are the career prospects for human resources development officers in both the public and private sectors bright enough to engender confidence, develop professionalization and encourage new

entrants? What kind of support should they be offered to enhance their effectiveness and capabilities? -(Ason 1999)

2.3

CHANGE AND HRM Beyond the objective legal context of Human Resource Management in Nigeria, various social changes are also affecting how organizations interact with their employees. First, many organizations are using more and
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more temporary workers today allows organizations to add workers as necessary without risk that they may have to eliminate their jobs in the future.

Second, dual-career families are much more common today than just a few years ago. Organizations are finding that they must make accommodations for employees who are dual-career partners. These accommodations may include de laying transfers, offering employment to the spouses of current employees to re tam them, and providing more flexible work schedules and benefits packages. A related aspect of sod change and HRM, workforce diversity, Ubeki (1999).

Employment-at-will is also becoming an important issue. Although employment-at-will have legal implications, its emergence as an issue is socially driven. Employment-at-will is a traditional view of the workplace in which organizations can fire an employee for any reason. Increasingly, however, people are arguing that organizations should be able to fire only people who are poor performers or who violate rules and, conversely, not be able to fire people who report safety violations to OSHA or who refuse to perform unethical activities.

Several court cases in recent years have upheld this latter emerging view and have limited much organizations ability to terminate employees to those cases where there is clear and just cause or as part of an organization wide cutback (Ubeki (1999).

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2.4

HUMAN RESOURCE PLANNING The starting point in attracting qualified human resources is planning. Human resource planning, in turn, involves job analysis and forecasting the demand and supply of labor both in public and private enterprises.

2.4.1

Job Analysis Job analysis is a systematic analysis of jobs within an organization. A job analysis is made up of two parts. The job description lists the duties of a job; the jobs working conditions; and the tools, materials, and equipment used to perform it. The job specification lists the skills, abilities, and other credentials needed to do the job. Job analysis information is used in many human resource activities. For instance, knowing about job content and job requirements is necessary to develop appropriate selection methods and job-relevant performance appraisal systems and to set equitable compensation rates. (Griffin 2002).

2.4.2

Forecasting Human Resource Demand and Supply After managers fully understand the jobs to be performed within the organization, they can start planning for the organizations future human resource needs. Figure 2.1 summarizes the steps most often followed. The manager starts by assessing trends in past human resources usage, future organizational plans, and general economic trends. A good sales forecast is often the foundation, especially for smaller organizations. Historical ratios can then be used to predict demand for employees such as operating employees and sales representatives. Of course, large organizations use much more complicated models to predict their future human resource needs.

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According to Torado (2001), forecasting the supply of labor is really two tasks: forecasting the internal supply (the number and type of employees who will be in the firm at some future date) and forecasting the external supply (the number and type of people who will be available for hiring in the labor market at large). The simplest approach merely adjust present staffing levels for anticipated turnover and promotions. Again, though, large organizations use extremely sophisticated models to make these forecasts.

Assess trends in External labor markets Current employees future organizational plans General economic trends

Predict demand

Forecast internal supply

Forecast external supply

Compare future demand and internal supply

Source: Griffin (2002) Management

Plan for dealing with predicted shortfalls or overstaffing

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At higher levels of organization, managers plan for specific people and positions. The techniques most commonly used is the replacement chart, which lists each important managerial position, who occupies it, how long he or she will probably stay in it before moving on, and who (by name) is now qualified or soon will be qualified to move into the position. This techniques allows ample time to plan development experiences for persons identified as potential successors to critical managerial jobs.

To facilitate both planning and identifying persons for current transfer or promotion, some organizations also have an employee Information system, or skills inventory. Such systems are usually computerized and contain information on each employees education, skills, work experience, and career aspirations. Such a system can quickly locate all the employees in the organization who are qualified to fill a position requiring.

Forecasting the external supply of labor is a different problem altogether. How does a manager, for example, predict how many electrical engineers will be seek in power station three years from now? To get an idea of the future availability of labor, planners must rely on information from outside sources such as state employment commissions, government reports, and figures supplied by colleges on the number of students in major fields. (Torado 2001, Ubeku 1999). 2.4.3 Matching Human Resource Supply and Demand After comparing future demand and internal supply, managers can make plans to manage predicted shortfalls or overstaffing. If a shortfall is predicted, new employees can be hired, present employees can be retrained and transferred into the understaffed area, individuals approaching retirement can be convinced to stay on, or labor-saving or productivityenhancing systems can be installed. (Meier 2000).
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If the organization needs to hire, the external labor supply forecast helps managers plan how to recruit, based on whether the type of person needed is readily available or scarce in the labor market. The trend in hiring temporary workers also helps managers in staffing by affording them extra flexibility If overstaffing is expected to be a problem, the main options are transferring the extra employees, not replacing individuals who quit, encouraging early retirement and laying people off.

2.5

RECRUITING HUMAN RESOURCES Julius (2003) states that, once an organization has an idea of its future human resource needs, the next phase is usually recruiting new employees. Recruiting is the process of attracting qualified persons to apply for the jobs that are open. Where do recruits come from? Some recruits are found internally; others come from outside the organization. Management InfoTech describes how some firms are using the Internet to recruit new employees.

2.5.1 Internal Recruiting Internal recruiting means considering present employees as candidates for openings. Promotion from within can help build morale and keep highquality employees from leaving the firm. In unionized firms, the procedures for notifying employees of internal job change opportunities are usually spelled out in the union contract. For higher-level positions a skills inventory system may be used to identify internal candidates, or managers may be asked to recommend individuals who should be considered. One disadvantage of internal recruiting is its ripple effect. When an employee moves to a different job, someone else must be found to take his or her old job.
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2.5.2

External recruiting External recruiting involves attracting persons outside the organization to apply for jobs. External recruiting methods include advertising, employment agencies or executive search firms, union hiring halls, referrals by present employees, and hiring walk-ins or gate-hires (people who show up without being solicited). Of course, a manager must select the most appropriate methods, using the state employment service to find maintenance workers but not a nuclear physicist, for example. Private employment agencies can be a good source of clerical and technical employees, and executive search firms specialize in locating topmanagement talent. Newspaper ads are often used because they reach a wide audience and thus allow minorities equal opportunity to find out about and apply for job openings.

According to Akuboro (2004), the organization must also keep in mind that recruiting decisions often go both ways-the organization is recruiting an employee, but the prospective employee is also selecting a job. Indeed, recruiters have faced a difficult lob in recent years as unemployment has continued to increase by early five hundred thousand unemployment had increased to a twenty five- years increase of 20.5%. The organization wants to put its best foot forward, treat all applicants without dignity and strive for a good/bad person-job fit. Recent estimates suggest that hiring the wrong operating employee-one who flops and either quits or must be fired-generally costs the organization at least N50,000 in lost productivity and training. Hiring the wrong manager can cost the organization far more.

One generally successful method for facilitating a good person-job fit is through the so-called realistic job preview (RJP). As the term suggests, the
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RJP involves providing the applicant with a real picture of what performing the job that the organization is trying to fill would be like.

2.6

DEVELOPING HUMAN RESOURCES Regardless of how effective a selection system is, however, most employees need additional training if they are to grow and develop in their jobs. Evaluating their performance and providing feedback are also necessary.

2.6.1 Training and Development According to Beach (2002) stated that in Human Resource Management, training usually refers to teaching operational or technical employees how to do the job for which they were hired. Development refers to teaching managers and professionals the skills needed for both present and future jobs. Most organizations provide regular training and development programs for managers and employees annually on programs and this figure doesnt include wages and benefits paid to employees while they are participating in such programs. The World of Management discusses how two firms are using the Internet to train employees in different parts of the world.

2.6.1.1 Assessing Training Needs The first step in developing a training plan is to determine what needs exist. For example, if employees do not know how to operate the machinery necessary to do their jobs, a training program on how to operate the machinery is clearly needed. On the other hand, when a group of office workers is performing poorly, training may not be the answer. The problem could be motivation, aging equipment, poor supervision, inefficient work design, or a deficiency of skills and knowledge. Only the last could be
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remedied by training. As training programs are being developed, the manager should set specific and measurable goals specifying what participants are to learn. Managers should also plan to evaluate the training program after employees complete it. The training process from start to finish is diagrammed in Figure 2.2 (Beach 2002) Figure 2.2 The training process
Assess training needs Who needs to be trained? What do they need to know? What do they already know? Set training objectives Specific Measurable

Plan training evaluation Did trainers like the training? Can they meet the training objectives Do they perform better on the job? Conduct training Evaluate Training

Develop training program Content . Location Methods . Trainers Duration

Modify training program based on evaluation Source: Beach (2002) Management of People at Work

2.6.1.2 Common Training Methods Many different training and development methods are available. Selection of methods depends on many considerations, but perhaps the most important is training content. Appleby (2003) opined that when the training content is (such as company rules or explanations of how to fill out forms), assigned reading, programmed learning, and lecture methods work well. When the content is interpersonal relations or group decision-making,

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however, firms must use a method that allows interpersonal contact such as role-playing or case-discussion groups. When employees must learn a physical skill, methods allowing practice and the actual use of tools and material are needed, as in on-the-job training or vestibule training. (Vestibule training enables participants to focus on safety, learning, and feedback rather than productivity) CD-rom and Internet-based training are also becoming popular. Most training programs rely on a mix of methods. Power Holding Company for example, sends managers to an intensive twoweek training seminar involving tests, simulations, role-playing exercises, and CD-Rom flight simulation exercises.

2.6.1.3 Evaluation of Training: Training and development programs should always be evaluated. Typical evaluation approaches include measuring one or more relevant criteria (such as attitudes or performance) before and after the training and determining whether the criteria changed. Evaluation measures collected at the end of training are easy to obtain, but actual performance measures collected when the trainee is on the job are more important. Trainees may say that they enjoyed the training and learned a lot, but the true test is whether their job performance improves after their training. (Appleby 2003).

2.6.4

Performance Appraisal According to Julius (2003) when employees are trained and settled into their jobs, one of managements next concerns is performance appraisal. Performance appraisal is a formal assessment of how well employees are doing their job. Employees performance should be evaluated reg ularly for many reasons. One reason is that performance appraisal may be necessary for validating selection devices or assessing the impact of training
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programs. A second reason is administrative-to aid making decisions about pay raises, promotions, and training. Still another reason is to provide feedback to employees to help them improve their present performance and plan future careers.

Because performance evaluations often help determine wages and promotions, they must be fair and nondiscriminatory In the case of appraisals, content validation is used to show that the appraisal system accurately measures performance on important job elements and does not measure traits or behavior that are irrelevant to bb performance.

2.6.2.1 Common Appraisal Methods Two basic categories of appraisal methods commonly need in organizations are objective methods and judgmental methods. Objective measures of performance Include actual output (that is, number of units produced), scrap rate, Naira volume of sales, and number of claims processed. Objective performance measures may be contaminated by opportunity bias if some persons have a better chance to perform than others. For example, a sales representative or marketer in Lagos has a greater opportunity than does a colleague doing the same job in Ogun. Fortunately, adjusting raw performance figures for the effect of opportunity bias and thereby arriving at figures that accurately represent each individuals performance is often possible. (Ubeku 1999)

Frank and Hunter (2000) emphasized that another type of objective measure, the special performance test, is a method in which each employee is assessed under standardized conditions. This kind of appraisal also eliminates opportunity bias.

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Performance tests measure ability but do not measure the extent to which on is motivated to use that ability on a daily basis. (A high-ability person may be a lazy performer except when being tested) Special performance tests must therefore be supplemented by other appraisal methods to provide a complete picture of performance.

Judgmental methods, including ranking and rating techniques, are the most common way to measure performance. Ranking compares employees directly with each other and orders them from best to worst. Ranking has a number of drawbacks. Ranking is difficult for large groups because the persons in the middle of the distribution may be hard to distinguish from one another accurately. Comparisons of people in different work groups are also difficult. For example, an employee ranked third in a strong group may be more valuable than an employee ranked first in a weak group. Another criticism of ranking is that the manager must rank people on the basis of overall performance, although each person likely has both strengths and weaknesses. Furthermore, rankings do not provide useful information for feedback. To be told that one is ranked third is not nearly so helpful as to be told that the quality of ones work is outstanding, its quantity is satisfactory, ones punctuality could use improvement, and ones paperwork is seriously deficient ( Ubeku 1999, Beach 2000, Appleby, 2003) Rating differs from ranking because it compares each employee with a fixed standard rather than with other employees. A rating scale provides the standard. Each consists of a performance dimension to be rated (punctuality, congeniality and accuracy) followed by a scale on which to make the rating. In constructing graphic rating scales, performance dimensions relevant to job performance must be selected. In particular, they should focus on job behaviors and results rather than on personality traits or attitudes.
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The behaviorally anchored rating scale (BARS) is a sophisticated and useful rating method. Supervisors construct rating scales with associated behavioral anchors. They first identify relevant performance dimensions and then generate anchors-specific, observable behaviors typical of each performance level.

The other scales in this set, developed for the job of department manager In a chain of specialty stores, include handling customer complaints, planning special promotions, following company procedures, supervising sales personnel, and diagnosing and solving special problems. BARS can be effective because it requires that management take proper care in constructing the scales and it provides useful anchors for supervisors to use in evaluating people. It is costly however, because outside expertise is usually needed and because scales must be developed for each job within the organization. (Nathan 2000)

2.6.2.2 Errors in Performance Appraisal According to Angelo and Kluger (2000), errors or biases can occur in any kind of rating or ranking system. One common problem is recent error-the tendency to base judgments on the subordinates most recent performance because it is most easily recalled. Often a rating or ranking is intended to evaluate performance over an entire time period, such as six months or a year, so the recent error does introduce error into the judgment. Other errors include overuse of one part of the scale-being too lenient, being too severe, or giving everyone a rating of average.

Halo error is allowing the assessment of an employee on one dimension to spread to ratings of that employee on other dimensions. For instance, if
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an employee is outstanding on quality of output, a rater might tend to give her or him higher marks than deserved on other dimensions. Errors can also occur race, gender, or age discrimination, intentionally or unintentionally The best way to offset these errors is to ensure that a valid rating system is developed at the set and then to train managers in how to use it. 2.6.3 Performance Feedback The last step in most performance appraisal systems is giving feedback to subordinates about their performance. This step is usually done in a private meeting between the person being evaluated and his or her boss. The discussion should generally be focused on the facts-the assessed level of performance, how and why that assessment was made, and how it can be improved in the future. Feedback interviews are not easy to conduct. Many managers are uncomfortable with the task especially if feedback is negative and subordinates are disappointed by what they hear. Properly training managers, however can help them conduct more effective feedback interviews (Nathan 2000).

Angelo and Kluger (2000) stated that a recent innovation in performance appraisal used in many organizations today is called 360 degree feedback: managers are evaluated by everyone around them-their boss, their peers, and their subordinates. Such a complete and thorough approach provides people with a far richer array of Information about their performance than does a conventional appraisal given just by the boss. Of course, such a system also takes considerable time and must be handled to avoid breeding fear and mistrust in the workplace.

2.7

MAINTAINING HUMAN RESOURCES According to Beach (2002), after organizations have attracted and developed an effective workforce, they must also make every effort to
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maintain that workforce. To do so requires effective compensation and benefits as well as career planning.

2.7.1 Determining Compensation Compensation is the financial remuneration given by the organization to its employees in exchange for their work. There are three basic forms of compensation. Wages are the hourly compensation paid to operating employees. The current federal minimum monthly wages is N18,000. Salary refers to compensation paid for total contributions. For example, managers earn an annual salary usually paid monthly. They receive the salary regardless of the number of hours they work. Some firms have started paying all their employees a salary instead of hourly wages. Finally, incentives represent special compensation opportunities that usually tied to performance. Sales commissions and bonuses are among the most common incentives (Ubeku 1999, Beach, 2002)

Compensation is an important and complex part of the organizationemployee relationship. Basic compensation is necessary to provide employees with the means to maintain a reasonable standard of living. Beyond this point, however, compensation also provides a tangible measure of the value of the individual to the organization. If employees do not earn enough to meet their basic economic goals, they will seek employment elsewhere. Likewise, if they believe that their contributions are undervalued by the organization, they may leave or exhibit poor work habits, low morale, and little commitment to the organization. Thus, designing an effective compensation system is clearly in the organizations best interest (Jalius 2003)

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A good compensation system can help attract qualified applicants, retain present employees, and stimulate high performance at a cost reasonable for ones industry and geographic area. To set up a successful system, management must make decisions about wage levels, the wage structure, and the individual wage determination system.

2.7.1.1 Wage-Level Decision The wage-level decision is a management policy decision about whether the firm wants to pay above, at, or below the going rate for labor in the industry or the geographic area. Most firms choose to pay near the average, while those that cannot afford more pay below average. Large, successful firms may like to cultivate the image of being wage leaders by intentionally paying more than average and thus attracting and keeping high-quality employees.

The level of unemployment in the labor force also affects wage levels. Pay declines when labor is plentiful and in creases when labor is scarce. (Torado 2001, Appleby 2003)

Once managers make the wage-level decision, they need information to help set actual wage rates. Managers need to know what the maximum, minimum, and average wages are for particular jobs in the appropriate labor market. This information is collected by means of a wage survey. Area wage surveys can be conducted by individual firms or by local HR or business associations. Professional and industry associations often conduct surveys and make the results available to employers. 2.7.1.2 Wage structure Decision

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Meier (2000) opined that wage structures are usually set up through a procedure called Job evaluation-an attempt to assess the worth of each job relative to other jobs. The simplest method for creating a wage structure is to rank jobs from those that should be paid the most (for example, the Director to those that should be paid the least (for example, a mail clerk or a janitor).

In a smaller firm with few jobs, this method is quick and practical, but larger firms with many job titles require more sophisticated methods. The next step is setting actual wage rates on the basis of a comb nation of survey data and the wage structure that results from job evaluation, of equal value are often grouped into wage grades for ease of administration.

2.7.1.3 Individual Wage Decisions After wage-level and wage-structure decisions are made, the individual wage decision must be addressed. This decision concerns how much top each employee in a particular job. Although the easiest decision is to pay a single rate for each job, a range of pay rates is more typically associated with each job. For example, the pay range for an individual job might be N1,000 to N2,000 per hour, with different employees earning different rates within the range.

A system is then needed for setting individual rates. This determination may be done on the basis of seniority, initial qualifications (inexperienced people start at lower level, more experienced people start at a higher rate), or merit (raise above the entering rate are given for good performance). Combinations of these bases may also be used.

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Because of todays loose-Yahaya (1999) labor market, many job seekers are finding it impossible to demand higher salaries than ever before. The Internet is also playing a key role in this trend, because job seekers and current employees can more easily get a sense of what their true market value is. If they can document the claim that their value is higher than what their current employer now pays or is offering, they are in a position to demand higher salaries. Consider the case of one compensation executive who met recently with a subordinate to discuss her raise. He was surprised when she produced data from five different web sites supporting her claim for a bigger raise than he had intended to offer. Griffin (2002)

2.7.2

Determining Benefits According to John (1999), benefits are things of value other than compensation that the organization provides to its workers. The average company spends an amount equal to more than one-third of fits cash payroll on employee benefits.

Benefits come in several forms. Pay for time not worked includes sick leave, vacation and holidays, Insurance benefits often include fife and health insurance for employees and their dependents. Workers

compensation is a legally required insurance benefit that provides medical care and disability income for employees injured on the job. Social security is a government pension plan to which both employers and employees contribute. Many employers also provide a private pension plan to which they and their employees contribute. Employee service benefits can include tuition reimbursement and recreational opportunities (Tobia 2000) Some organizations have instituted cafeteria benefit plans, whereby basic coverage is provided for all employees but employees are then allowed to
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choose which additional benefits they want (up to a cost limit based on salary). An employee with five children might choose medical and dental coverage for dependents, a single employee might prefer more vacation time, and an older employee might elect increased pension benefits. Flexible systems are expected to encourage people to stay in the organization and even help the company attract new employees. In recent years, companies have also started offering eyen more innovative benefits as a way of accommodating different needs and to deal with a very tight labor market. On-site childcare, mortgage assistance, and generous paidleave programs are becoming popular. (John 1999), A good benefits plan may encourage people to join and stay with an organization, but it seldom stimulates high performance because benefits are tied more to membership in the organization than to performance. To manage their benefits programs effectively, companies should shop carefully, avoid redundant coverage, and provide only those benefits that employees want. Benefits programs should also be explained to employees in clear and straightforward language so that they can use the benefits appropriately and appreciate what the company is providing. (Griffin 2002)

2.7.3 Career Planning According to Sullivan (1999); A final aspect of maintaining human resources is career planning. Few people work in the same jobs their entire career. Some people change jobs within one organization, others change organizations, and many do both. When these movements are haphazard and poorly conceived, both the individual and the organization suffer. Thus, planning career progressions in advance is in everyones best interest. Of course, planning a thirty-year career for a newcomer just joining the organization is difficult. But planning can help map out what areas the

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individual is most interested in and help the person see what opportunities are available within the organization.

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CHAPTER THREE RESEARCH METHODOLOGY 2.0 INTRODUCTION This chapter presents the methodology of the study conducted. It describes the research method, research plan, survey design, target population, sample size, and tools for data analysis

2.1

RESEARCH DESIGN Asika (1999) states that research design is the structuring of investigation armed at identifying variables and their relationship to one another. The research design adopted allowed for interaction with the principal officers of the industries and the respondents on the financial performance evaluation techniques in medium-sized enterprises. In carrying out the study, questionnaires were used to collect data. The interaction of the researcher with the respondents through the interview enabled the researcher to corroborate with the questionnaires gathered from the respondents.

The questionnaires administered by the researcher was divided into two parts. Section A deals with demographic characteristics of the respondents while section B was designed to answer research questions formulated for the study. The questions were formulated in such a way that respondent found it simple to answered and also feel at easy with these questions.

2.2

THE POPULATION The population of this study consists of different categories of staff (particularly in the public sector) drawn from Nigeria Port Plc in Lagos.

2.3

SAMPLE SIZE DETERMINATION

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Sample size is precisely a part of the population. This procedure for drawing samples from population in order to obtain validity and to make the study more explanatory. In this research, the stratified random sampling technique was used. This was done in order to avoid bias.

A random sample size of fifty (50) (based on convenience) was used to gather responses from the selected individuals. The network of the industry branches were used as a basis in selecting the sample size. Therefore, the questionnaires were divided into two equal parts and half were distributed to every sector.

2.4

SOURCE OF DATA Researcher generated data which are subsequently analyzed and the results are used to answer research questions and formulated hypotheses. The assumption in the use of data is that the sources of data are reliable and the data are of the highest possible quality.

However, data are classified as either primary or secondary. This classification is based on the two possible sources of data. These data are: Primary sources and Secondary sources Both sources are adequately explored to gather data for this study.

2.4.1 Primary Data: Primary data are refined after they are generated, refinement takes the form of classification, it includes, questionnaires, interview and observation used to obtain information from selected sample respondents.

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2.4.2 Secondary Data: Amongst the secondary data sources are the study from the present and past researcher works, textbooks, articles, magazines, news bulletin and other publications.

2.5

METHOD OF DATA ANALYSIS The data were collected through questionnaires method. The data were tabulated and itemized according to the responses sought in the questions. The simple percentage method and chi-square statistics were used to analyze the data obtained.

The formula used for simple percentage is Number of respondents Total number of respondents x 100 1

The chi-square statistics formula is given as X2 = (0 - e)2 e Where :O Observed frequencies(given) e X2 = expected frequencies. = chi-square symbol = summation symbol.

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CHAPTER FOUR

DATA ANALYSIS AND PRESENTATION

4.1

INTRODUCTION This chapter consists of data analysis and presentation; all data collected through questionnaires for the purpose of this study will be present and analysis in this chapter. However, descriptive statistics such as frequencies, percentage and the chi-square (X2) methods will be use to analysis these data.

The administered questionnaires which were divided into two parts, contained the respondents demographic; that is characteristics of the respondents and the second part was designed to answer research questions and to elicit information on the Human Resources Development and productivity.

However, fifty questionnaires were distributed to the various departments in this organization and forty three (43) questionnaires were returned. The total number of thirty eight (38) questionnaire returned certified okay and usable for analyze; the number of questionnaire certified okay for analysis constitute 76%.

4.2

SECTION A RESPONDENTS BIO-DATA Table 4.1 Gender Gender Male Female Total Source: Field Survey, 2011 Frequencies 22 16 38 Cumulative frequency 38 Per (%) 57.9 42.1 100

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Table 4.2: Marital Status

Statue Married Single Divorced Widow Widower Total Source: Field Survey, 2011

Frequencies 15 14 5 2 2 38

Cumulative frequency 29 34 36 38

Per (%) 39.5 13.2 5.3 5.3

100

Table 4.3: Educational Qualification

Qualification SSC/GCE/NECO OND/AL/NC HND/B.Sc/ACA MBA/M.Sc

Frequencies 5 9 11 8 5

Cumulative frequency 14 25 33 38

Per (%) 13.2 23.7 28.9 21.1 13.2 100

Total Source: Field Survey, 2011

38

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Table 4.4: Years in service Years in service 15 6 10 11 15 16 20 21 above Total Source: Field Survey, 2011 Frequencies 7 8 6 9 8 38 Cumulative frequency 15 21 30 38 Per (%) 18.4 21.1 15.8 23.7 21.1 100

4.3

SECTION B RESEARCH QUESTIONS -Q1- Have you undergone any training since you were employed in this organization? Table 4.5: Training Options Yes Indifferent No Total Source: Field Survey, 2011 Frequencies 26 4 8 38 Cumulative frequency 30 38 Per (%) 68.4 10.5 21.1 100

Empirical evidence from the research question above reveals that 68.4% of the respondents have undergone training since when they are employed with the organization 10.5% were indifferent and 21.1% answered No.

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-Q2- If your answer to question above is yes. What kind of training? Table 4.6: Method of Trainings Options Yes Indifferent No Total Source: Field Survey, 2011 Frequencies 8 23 7 38 Cumulative frequency 31 38 Per (%) 21.1 60.5 18.4 100

According to table 4.6 analyzed of question 2. reveals that 21.1%, 60.5% and 18.4% of the respondent were trained on-the-job, off-the-job and simulation respectively.

-Q3- Training and development programmes may improve employees job performance.

Table 4.7: Improve Job performance Options Strongly agree Agree Disagreed Strongly disagree Total Source: Field Survey, 2011 Frequencies 14 16 5 3 38 Cumulative frequency 30 35 38 Per (%) 36.8 42.1 13.2 7.9 100

The analysis of the responses in table 4.7 shows that 36.8% and 42.1% strongly agreed and agreed that training and development programmes may improve

36

employees job performances; while 13.2% and 7.9% disagreed and strongly disagreed.

-Q4- Training helps to develop skill, knowledge and ability and employees. Table 4.8: Develop Skills Options Strongly agree Agree Disagreed Strongly disagree Total Source: Field Survey, 2011 Frequencies 16 17 2 3 38 Cumulative frequency 33 35 38 Per (%) 42.1 44.7 5.3 7.9 100

Table 4.8 shows that 42.1%, 44.7%, 5.3% and 7.9% strongly agreed, agreed, disagreed and strongly disagreed that training helps to develop skill, knowledge and ability on employees.

-Q5- The increases in organization incentives and benefits will improve employees performances. Table 4.9 Incentives and Benefit Options Strongly agree Agree Disagreed Strongly disagree Frequencies 17 15 3 3 Cumulative frequency 32 35 38 Per (%) 44.7 39.5 7.9 7.9

37

Total Source: Field Survey, 2011

38

100

Analysis of question 5 in table 4.9 above shows that 44.7% strongly agreed, 39.5% agreed, 7.9% disagreed and 7.9% strongly disagreed that increases in organization incentives and benefits will improve employee performance.

-Q6- A good compensation system in an organization may attract qualified applicant and retain present employees. Table 4.10: Good compensation Options Strongly agree Agree Disagreed Strongly disagree Total Source: Field Survey, 2011 Frequencies 19 16 3 38 Cumulative frequency 35 38 Per (%) 50 42.1 7.9 100

Table 4.10 analyzed above shows that 50% and 42.1% of the respondents strongly agreed and agreed that good compensation system in an organization may attract qualified applicant and retain present employees while 7.9% disagreed.

-Q7- In order to achieve a successful human resources management in public enterprises, the management should make decisions about wage levels, the wage structure and individual wage determination system. Table 4.11: Wage structure and determination Options Strongly agree Agree Frequencies 17 18 Cumulative frequency 35 Per (%) 44.7 47.4

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Disagreed Strongly disagree Total Source: Field Survey, 2011

2 1 38

37 38

5.3 2.6 100

According to table 4.11 analyzed above it shows that 44.7%, 47.4%, 5.3% and 2.6% strongly agreed, agreed, disagreed and strongly disagreed that management of public enterprises should make decisions about wage levels, the wage structure and individual wage determination system in order to achieve successful human resource management. -Q8- The level of unemployment in labour market may affects employees wages and incentives. Table 4.12: Unemployment Options Strongly agree Agree Disagreed Strongly disagree Total Source: Field Survey, 2011 Question no 8 analyzed in table 4.12 above shows that 39.5% strongly agreed, 42.1% agreed, 7.9% disagreed and 10.5% strongly disagreed that the level of unemployment in labour market may affects employees wages and incentives. Frequencies 15 16 3 4 38 Cumulative frequency 31 34 38 Per (%) 39.5 42.1 7.9 10.5 100

-Q9- Enhanced effective employees motivation should be one of the most significant job of a manager in public enterprises. Table 4:13 Motivation Options Frequencies Cumulative frequency Per (%)

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Strongly agree Agree Disagreed Strongly disagree Total Source: Field Survey, 2011

17 17 2 2 38

34 36 38

44.7 44.7 5.3 5.3 100

From the analyzed responses form the research question 9; it is clear that 44.7% and 44.7% strongly agreed and agreed that enhanced effective employees motivation should be one of the most significant job of a manager in the public sector, while 5.3% and 5.3% disagreed and strongly disagreed respectively.

-Q10- The employee individual performances may generally be determined by organizational motivation process.

Table 4.14: Employees performances determine Options Strongly agree Agree Disagreed Strongly disagree Total Source: Field Survey, 2011 Frequencies 17 16 5 38 Cumulative frequency 33 38 Per (%) 44.7 42.1 13.2 100

Table 4.14 reveals that 4.47%, 42.7% and 13.2% strongly agreed, agreed and disagreed and respectively that employee individual performance may generally be determined by organizational motivation process.

40

-Q11- Employee motivation process may begins with a need deficiency (Poor salary, increases in salary etc) Table 4.15: Employees need deficiency Options Strongly agree Agree Disagreed Strongly disagree Total Source: Field Survey, 2011 Frequencies 17 21 38 Cumulative frequency 38 Per (%) 44.7 55.3 100

Table 4.15 shows that 44.7% and 55.3% of the respondents strongly agreed and agreed that employees motivation process may begin with a need deficiency (e.g. poor salary, increase in salary etc).

-Q12- Employees may choose to work hard, improve performance and productivity when they are well motivated. Table 4.16: Improves performance and productivity Options Strongly agree Agree Disagreed Strongly disagree Total Source: Field Survey, 2011 Frequencies 16 16 4 2 38 Cumulative frequency 32 36 38 Per (%) 42.1 42.1 5.3 5.3 100

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According to table 4.16 analyzed above, it shows that 42.1% strongly agreed, 42.1 agreed, 5.3 disagreed and 5.3 strongly disagreed that employees may choose to work hard, improve performance and productivity when they are well motivated.

-Q13- The effective management of performances appraisal may influence employees performances.

Table 4.17: Performance Appraisal Options Strongly agree Agree Disagreed Strongly disagree Total Source: Field Survey, 2011 Frequencies 15 17 3 3 38 Cumulative frequency 32 35 38 Per (%) 39.5 44.7 7.9 7.9 100

The analyzed responses on evaluation of research question 13 shows that 39.5% strongly agreed, 44.7% agreed, 7.9% disagreed and 7.9% strongly disagreed that effective management of performance appraisal influence employee performances.

-Q14- Are you properly rated? Table 4.18: Appropriate Rating Options Yes Indifferent No Frequencies 15 8 15 Cumulative frequency 23 38 Per (%) 39.5 2.10 39.5

42

Total Source: Field Survey, 2011

38

100

Empirical evidence available shows that 39.5% of employees answered yes that they were properly rated, 21.0% were indifferent and 39.5% answered No.

-Q15- How effective is the performance appraisal in your organization? Options Very good Good Fair Poor Total Source: Field Survey, 2011 Frequencies 8 8 11 11 38 Cumulative frequency 16 27 38 Per (%) 21.1 21.1 28.9 28.9 100

The analysis of the responses in table 4.19 shows that 21.1% and 21.1% of the respondents agreed that their organization performance appraisal rating is very good and good, while 28.9% and 28.9% answered fair and poor respectively.

-Q16- Are the employees participated in the performances appraisal in this organization?

Table 4.20: Employees participation Options Yes Frequencies 16 Cumulative frequency Per (%) 42.1

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Indifferent No Total Source: Field Survey, 2011

3 17 38

19 38

7.9 50.0 100

From the responds provided in the data analyzed above (table 4.20) 42.1% of the respondents answered yes that they participated in the performances appraisal in their organization, 7.9% were indifferent and 50% answered No.

TEST OF HYPOTHESES 4.4 INTRODUCTION The formulated hypotheses were tested in this season; these tests were conducted in order to ascertain the reliability and acceptability of the hypotheses. However, the analyzed questions that has direct relationship with the hypotheses were extracted and use for the test. These tests will be conducted with the aid of chi-square (X2) statistical instrument and all the test will be conducted under 95% level of confidence, 0.05% level of significant and (n-1) (c-1) degree of freedom (df). The method of chi-square (X2) shows that (0 e)2 e where = O = e observed frequencies = expected frequencies

TEST I Ho: When organization develops training programs, the manager should not set specific and measurable goals specifying what employees are to learn.
44

Hi:

When organization develops training programs, the manager should set specific and measurable goals specifying what employees are to learn

Table 4.21 Related questions 3 4 6 8 Total Strongly agreed 14 16 19 15 64 Agreed 16 17 16 16 65 Disagreed 5 2 3 3 13 Strongly disagreed 3 3 4 10 Total 38 38 38 38 152

Compute expected frequencies = tc x tr tg Strongly agreed = 64 x 38 152 Agree = 65 x 38 152 Disagree = 13 x 38 152 Strongly disagree = 0e -2 -0.2 1.5 0.5 0 0.8 -1.2 10 x 38 152 0 14 16 5 3 16 17 2 e 16 16.2 3.5 2.5 16 16.2 3.2 (0 e)2 4 0.04 2.3 0.3 0 0.6 1.4 (0 e)2 e 0.3 0.002 0.7 0.1 0 0.04 0.4 = 2.5 = 3.5 = 16.2 = 16

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3 19 16 3 15 16 3 4 Total

2.5 16 16.2 3.5 16 16.2 3.5 2.5

0.5 3 -0.2 -0.5 -1 -0.2 -0.5 1.5

0.3 9 0.04 0.3 1 0.04 0.5 2.3

0.1 0.6 0.002 0.08 0.06 0.002 0.008 0.9 3.366

X2c =

3.4 = (n-1)(c-1) (4 -1) (4 -1) (3) (3) = 9

Degree of freedom (df)

The table value of 9 at 0.05% significant level = 16.919 X2 t DECISION: Since X2t > X2 c X2c and < X2 t = 16.9

Ho is therefore rejected

Comments: The test therefore proved that whenever organization develop training programs, the managers always set specific and measurable goals specify what employees are to learn.

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TEST II Ho: Managers in the public sector need not to understand how and why human resource make different choices regarding their performance and motivation. HI: Managers in the public sector need to understand how and why human resource make different choices regarding their performance and motivation Table 4.22 Related questions 9 10 11 12 Total Strongly agreed 17 17 17 16 67 Agreed 17 16 21 16 70 Disagreed 2 5 4 11 Strongly disagreed 2 2 4 Total 38 38 38 38 152

Compute expected frequencies = Strongly agreed = 67 x 38 152 Agree = 70 x 38 152 Disagree = 11 x 38 152 Strongly disagree = 0e 0.3 -0.5 -0.7 4 x 38 152 0 17 17 2 e 16.7 17.5 2.7 (0 e)2 0.19 0.3 0.5 (0 e)2 e 0.011 0.01 0.2 = 1 = 2.7 = 17.5 = 16.7

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2 17 16 5 17 21 16 16 4 2 Total X2c =

1 16.7 17.5 2.7 16.7 17.5 16.7 17.5 2.7 1

1 0.3 1.5 2.3 0.3 3.5 -0.7 1.5 1.3 1

1 0.2 2.3 5.3 0.2 12.3 0.5 2.3 1.7 1

1 0.01 0.1 2.0 0.01 0.7 0.03 0.1 0.6 1 5.77

5.8 = (n-1)(c-1) (4 -1) (4 -1) (3) (3) = 9

Degree of freedom (df)

The table value of 9 at 0.05% significant level = 16.919 X2 t DECISION: Since X2c < X2 t X2t and > X2 c = 16.9

Ho is therefore rejected

COMMENTS: The test proved that managers in the public sector understand how and why human resources make different choices regarding their performance and motivation.

CHAPTER FIVE
48

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

5.1

INTRODUCTION This chapter consists of the summary of findings from the data analyzed in the previous chapter, conclusion as to the opinions of the respondents in respect to the data analyzed and recommendations. All these (that is finding summarized, conclusion and recommendations) were based on the data analyzed in the previous chapter (Chapter four).

5.2

SUMMARY OF FINDINGS The first part of the questionnaires which is on demographic characteristics of the respondents revealed the male workers constituted 22 representing 57.9% of the sample frame while female workers are 16 that is 42.1% of the sample frame. The analysis shown 13.2%, 23.7%, 28.9%, 21.1% and 13.2% represents those with secondary, ordinary diploma and advance level, higher diploma, University certificate and while the remaining 13.2% of the total respondents representing others. This means that the sample frame (respondents) of the study are literate and can to a large extent form independent opinion.

It is found that the employed in this organization were trained, in various training method such as on-the-job, and off-the-job; and these training helps to develop the employees skill, knowledge abilities and also improve employees job performance.

The study also found that increases in organization incentives and benefits improves employees performances; the good compensation system in an organization attracts qualified personnel into the organization and also retain employees:

49

It is found that enhancing effective employees motivation is one of the managers significant job, as the motivation determines the performance of every individual employee, employees motivation process begins with a need deficiency, that is poor in salary scale and increases in salary. The employees are ready to work hard, and improve their performances when they are well motivated.

Lastly, the study found that effective management of performance appraisal influences employees performances; and the performance appraisal is not effectively managed in this organization because employees were not properly rated neither do they (employees) participate in the performance appraisal management of the organization.

5.3

CONCLUSION Various factors may improve the Human Resource Performance and increase in organization development; it depends on the management efficiency to manage these factors. Training and development, monetary and non-monetary, motivation and performance appraisal. The effective management of these factors will improve efficiency in Human Resources and increases in organization productivity.

But most of these factors were not effectively managed in the public sector (particularly in the Enterprises studied) for example, the respondents were not properly rated, which means that the performance appraisal is not effectively managed in this organization. For effective Human Resource management all these factors need to be effectively and efficiently managed.

5.4

RECOMMENDATION

50

Haven considered the findings from the data analyzed and conclusion of the study and for effective development of Human Resource in Public enterprises, the study therefore recommend that:

Managers need to understand and appreciate the value of Human Resources as perhaps the most important determinant of an organizations success. In this respect, it matters not how effective a section system is in an organization, most employees need additional training if they are to grow and develop in their jobs.

More so, manager should recognize the critical importance of compensation and benefits. On the other hand, these represent significant costs for organization and should therefore be carefully monitored and controlled. On the other hand, compensation and benefits are also tangible indicators to the employee of his/her value to the organization and so should be fair and equitable. The managers in the public enterprises should remember Maslows need hierarchy; the ERG theory; the two-factor theory; and the needs for achievement, affiliation and power all provide useful insight into factors that causes motivation. What they do is shed much light on the process of motivation. They do explain why employees might be motivated by one factor rather than by another at a given level or how people might go about trying to satisfy the different needs. These factors involve behaviours or actions, goals, and feelings of satisfaction; Therefore, managers should understand the central role that motivation plays in determining Human Resource performance.

Lastly, the management of performance appraisal should be appropriate and adequately managed, there should be quite and accurate rating without any fair of favour or bias and affected reward to every excellent jobs that were well done.

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REFERENCES BOOKS Appleyby, R. C (2003) Modern Business Administrator, New York. McGraw-Hill Inc. Asika N. M. (1999) Research Methodology for Behavioral Sciences. Lagos, Longman Nigeria Plc. Beach, D. S. (2002) Management of people at Work, New-York. Macmillan. Griffin R. (2002) Management, Boston, Houghton Miffin Co, Julius, M, J (2003) Personnel Management Bombay, Tava & Co. Meier, G.M. (2000) Leading Issues in Economic Development, London, OUP. Torado, M. P (2001) Economic For Developing World, Lagos. Longman. Ubeki, A. K. (1999) Personnel Management In Nigeria Ethiope, Publishing Corporation. Yahaya, A. D (1999) Management of Human Resources for Development, Kuru, NIPSS

JOURNALS Akubiro, H. N. (2004) Practices that could be usefully Transferred Between Public and Private-Sector Business Organizations In Comparative Management and Administrative Ed. By O. J. K. Ogundele. Lagos. Sabte Book Series. Angelo, S. D and Kluger, A. N. Feedback Effectiveness: Can 360-Degree Appraisals Be Improved? Academy of Management Executive Vol. 14, No 1. 2000. Ason B.L The case for Human Resources Development and Utilization Policy for Nigeria In Human Resource Development and

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utilization: Policies and Issues. Edited by Yahaya and Akinyele 1999, Ibadan, Spectrum Books. Ltd. Frank, L. S. and Hunter, J. E. Employment Testing Old Theories and New Research Findings American Psychologist October, 2000. Hillard, J. F. Toward an Integrated Manpower Policy for Accelerated National Development Printed in T.M Yusufu, Manpower Problem and Economic Development of Nigeria, OUP 2000. John, A. F. Labour Relations Research and Practice in Transition Journal of Management Summer 1999. Nathan, B. R. Inter personal Relations as a context for the Effects for Appraisal Interviews on performance and satisfaction: A longitudinal study Academy of Management Journal, June 2000. Sullivan, S. E. The Changing Nature of Careers: A Review and Research Agenda Journal of Management, Vol. 25, No. 3, 1999. Tobia G New Market for Manpower Planning in T.M Yusufu Manpower problems and Economic Development in Nigeria. Lagos. OUP.

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