CHAPTER ONE

INTRODUCTION
Modern business is full of challenges. To face these challenges, organization
should recognize the fact that human resources are inevitable. This is
because of their role as the prime mover or initiator of all activities.

According to Donnelly etal (1992) human resources management is the

process of accomplishing organizational objectives by acquiring, retaining,
screening, selecting and placing personals in an organization.

Retaining efficient individuals matters a lot to an organization relative to the

attainment of its objective. If capable and efficient personnels regularly
leaves an organization. It becomes necessary to hire personnels on a regular
basis. This increase cost and saves times and no organization wants to incure
unnecessary cost.

Strategic human resources management on other may be regarded as an

approach to the management of human resources that provide a strategic
frame work to support long team business goals and outcome. This approach
is concerned with longer term people issues and macro concern about
structure, quality, culture, values, commitment and matching resources to
future need.

Some critics often question the contribution of human resources

management to the overall profits of the company or organization. They
claim that human resources department does not contribute directly to the

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organizations profit to such critics, the following questions are posed and
they demand qualified answer
What is the cost of low moral, inefficient and low productivity?
What are the benefits derivable from employees full efficiency and
proficiency through training and development?
What is the cost of accidents and resultant compensation, absenteeism, and
payments of workmens compensation?
What is the likely cost of incessant or large scale labor turnover?

1.1 BACKGROUND OF THE STUDY

In any organization (whether public or private), results are achieved through
people. People make organizations. human beings are the life of every
enterprise .Indeed given conditions perfect competition the only way one
organization can out ship its competitors is by possessing a more effective
team of employers and managers .the profitability and even the survival of
an enterprise depends upon the caliber of the work force

One of the most important task facing management is to select, maintain and
if possible, improve the asst .peter ducker believes that management main
task is to select the managers of tomorrow. Selection of candidates is not
only concern in engaging the require number of people: it is also concern in
measuring their qualities. It is not a matter of satisfying a companys present
needs it is an activity which influences the shape of the companies future.
The cumulative results of selecting the right candidate predetermine the
future health of the enterprise. Precisely because it is difficult and expensive
to remove incompetent, unsatisfactory or inappropriate staff today, it is
necessary to reduce selection mistakes to a minimum.

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All these negative effect of neglecting the importance of the human
resources in an organization .are what necessitated the need for this research
work. Many organization Nigeria today still neglect or pay little attention to
this area of management in their respective organization .many organization
still dont have human resources management department in their
organization instead the function of this department is being transfer to other
department that do not specialize in these field.

Also many organizations often question the contribution of human resources

department to the over all profits of the organization. Unlike the sales,
account, or production departments. This research work will be an eye
opener to them to realize that these departments are overseen by human
being. The effective and efficient performance of these human beings is the
main function of the human resource department.

Organization that dont pay proper attention to the management of their

human resources, face the prospect of seeing their profits go down in the
near future.

1.2 STATEMENT OF THE PROBLEM

The statement of the problem is concerned with the inevitable consequence
rising from lack of solution to the problem being investigated.
This problem will be listed as follows:
Low morale, inefficiency and low productivity of workers
Decrease in the companys profit
High labour turnover

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Absenteeism and non-payment of workers compensation
Insufficient funds for investment
Sustainability and long-run survival of the organization.

1.3 SIGNIFICANCE OF THE STUDY

Those who have misconceptions about the relevance of human resource
management will be enlightened through this study. This research work will
show if there is any effects of workers morale and efficiency to the
profitability of an organization. Finally the research will show the various
contribution of the human resources management department to the profits
of an organization

1.4 OBJECTIVE OF THE STUDY

The objectives of this study are as follows:
To enlighten organization on the relevance of human resources management
To reduce labour turnover through proper human resource management.
To show the importance of having a human resource management
department to handle all personnel issues of an organization.
To show that an organization can not survive without a well organized and
trained team of employees.
To show that proper management of human resource as an effect on the
profitability.

1.5 RESEARCH HYPOTHESIS

Hypothesis is a tentative answer to a research problem. It is an intelligent or
education guess concerning some variables. There are two types of
hypothesis, the null hypothesis (HO) and the alternative hypothesis (HI).

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Hypothesiss in a very real sense is the core of the study. It guides the
researcher in planning the course of the inquiry, in choosing the kinds of
data needed, in deciding the proper statistical treatment and examining the
result of the study.
The hypothesis for this research work is as follow:
1. Hi: Strategic human resource management affects the profitability of
an organization.
Ho: Strategic human resource management does not affect the profitability
of an organization.
2. Hi: All other resources of an organization are useless without the
human resources to plan and manage them.
Ho: All other resources of an organization are not useless without the human
resources to plan and manage them.
3. Hi: Well trained personnels are needed for the profitability and
growth of an organization.
Ho: Well trained personnels are not needed for the profitability and growth
of an organization.
1.6 SCOPE OF THE STUDY
This research work will be looking mainly at the relevance of strategic
human resource management on the profitability of a modern business
organization; using Zenith Bank Nig. Plc. Lokoja as a case study. This
research will also talk about the priority recognition of human resource
management, management of individuals, the importance of strategic human
resource management and the contributions of human resource management
to the organizations profit.

1.7 LIMITATIONS AND CONSTRAINTS OF THE STUDY

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Limitations are the factors which affect the result of the study. There is
hardly any research project without some limitation affecting it in one-way
or the other. The limitations encountered during the course of this research
are as follow:
Collection of Information: There were limitations in getting all the required
information needed for the research as some of the informations where not
forth coming due to lack of co-operation and secrecy the part of the
respondents.
Financial Limitation: There was also financial limitation, because to carry
out a research of any kind you need money and being a student my finances
are limited.
Time Constraints: The time required to get the research done is limited being
an academic requirement to finish your studies and research takes a
considerable amount of time e.g two years.
Secrecy: The respondents being questioned were reluctant in giving relevant
information needed for the research work. They see the questions being
asked as trying to probe them.
Illiteracy: There was limitation of illiteracy on the part of some of the
respondent. It is difficult for people who cannot read and write to appreciate
the need to supply relevant research information.
1.8 Definition Of Terms
Definition of some terms in this research will be given so as to give an
explanation of the meaning of such terms in the context in which they are
used. They include;
Leadership: - This is an act or process of exerting positive influence over
other people so that they will strive willingly and enthusiastically towards
the accomplishment of goals and objectives.

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Performance: - An act by which a given task is done or executed.
Job: - An entity but complex inter relations of tasks, roles, responsibility,
interaction, incentives and rewards.
Management: - This is defined as the process by which managers create,
direct, maintain and operate a purposive organization through systematic,
coordinated operative human efforts.
Organization: - This is a group of people in a defined territory and working
together to achieve stated objective.
Goal Path Theory: - An objective of object toward which a person strikes. A
theory is a set of generalizations which can be used to describe observed
events or predicts future events.
Leadership Behaviour: - This can be described as the influence exerted by
the leaders on their subordinates as regards their jobs and clarifications of
what is expected of them. Its such subordinate will be satisfied by the
intrinsic demands of the unstructured task and be highly motivated by the
extrinsic rewards associated with their employments.
Motivation: - This is concerned with how behaviour gets started is
energized, is sustained, is directed and stopped.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
HISTORICAL PERSPECTIVE AND PRIORITY RECOGNITION OF
HUMAN RESOURCES MANAGEMENT.
It is only in the last two or three decades have the human problems of most
organizations in Nigeria been systematically studied and human resources
management developed as a specialized function. Apart from some progress
undertaking, the human Resources department in most organizations was
regarded as a Post Office where workers were posted in and out as the

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whims and caprice of superior line managers. In other words, it was
generally regarded as a welfare department. This was the time when Nigeria
was not as developed or industrialized as it is now and the government role
in respect of the workforce through legislations or decrees was not as
evident as it is now. Apart from the increasing government role, the position
has since changed dramatically due to such factors as spread of education,
development of trade unionism and insistence by workers on better
treatment and conditions of service.

Most corporate executives in most public and private sector organizations

regarded materials and financial resources as the most important assets in
any given industry or organization. This thinking as stated above as
dramatically changed. In most organization, human resources are now given
utmost priority. It is people that make organizations and unless they are so
recognized and treated, the result will be negative attitudes which can by
extension lead to negative results in the form of poor performance and
profits. Therefore, the first thing to communicate to the men you have to
manage is the fact that they are important people.

You can achieve something with the most difficult individual if you realize
and sincerely believe in his personal importance, dignity and potential. You
can boost his morale so that his productivity will rise beyond your hope.
Output is as much dependent on morale as an incentive [financial or
otherwise] or physically working condition. People like to feel they matter
as individuals to their management, that they are being consulted about
things, that their work matters, that the superior really knows what they are
doing.

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HUMAN RESOURCE MANAGEMENT DEFINED.
Modern business is full of challenges. To face these challenges organization
should recognize the fact that human resources are inevitable this is because
of their role as the prime mover or initiator of all productive activities.

According to Donnelly et all (1992), human resources management is the

process of accomplishing organizational objectives by acquainting,
retaining, screening, selecting and placing personnels in an organization.

Michael C. Armstrong (1984) defined resources management as concerned

with developing an organization structure and climate and evolving a
management style that will promote co-operation and commitment through
the organization. Human resources management is concerned with
obtaining, developing and motivating the human resources regarded by the
organization to achieve its objective.

Edwin B. Flippo (1983) defined human resources manager as the planning,

organizing, directing and controlling of the procurement, compensation,
integration, maintenance and suppuration of human resources to the end that
individual organization, rational and societal objective are accomplished.

Human resources management or HRM simply means the management of an

organization workforce or human resources. It is responsible for the
attraction, selections, training, assessment, and rewarding of employers,
while also overseeing organizational, leadership and culture and ensuring
compliance with employment and labour laws. In circumstance where

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employees desire and are legally authorized to hold a collective bargaining
agreement, HR will typically also servers as the companys primary liaison
with the employees representatives (usually a labour union).

Dave Ulrich (1998) list the function of HR as aligning HR and business

strategy, re-engineering organization process, listening and responding to
employees, and managing transformation and change.

2.3 STRATEGIC HUMAN RESOURCE MANAGEMENT

Strategic Human Resource Management (Strategic HRM or SHRM) may be
regarded as an approach to the management of human resources that
provides a strategic frame work to support long-term business goals and
outcomes. The approach is concerned with longer-term people issues and
macro concerns about structure, quality, values, commitment and matching
resources to future need.
In todays intensely competitive and global market place, Maintaining a
competitive advantage by becoming a low cost leader or a differentiator puts
a heavy premium on having a highly committed or competent advantages
hes not just in differentiating a product or service or becoming the low cost
leader but in also being able to tap the companies special skills or core
competencies and rapidly respond to customers needs and competitors
moves. In order words competitive advantage lies in managements ability to
consolidate corporate-wide technologies and production skills into
competencies that empower individual business to adapt quickly to changing
opportunities.
In a growing number of organizations human resources are now viewed as a
source of competitive advantage. There is greater recognition that distinctive

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competencies are obtained through highly developed employee, skills,
distinctive organizational cultures, management progress and system. This is
in contrast with 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 to market responsiveness, product and services, quality,
differentiated products and technological innovation.
Strategic Human Resource Management Ulrich (2001) defined it as a linking
of human resources with strategic goals and objectives in other to improve
business performances and develop organizational culture that faster
innovation and flexibility.

Strategic human resources means accepting the human resources function as

a strategic partner in the formulation of the companys strategies through
human resources activities such as reorientation, selecting, training and
rewarding personnel. Whereas strategic human resources recognize human
resources partnership role in the strategizing process, the term human
resources courees of action the company plans to pursue to achieve his aims.

Human resources management can play a role in environmental scanning i.e

identifying and analyzing externals opportunities and threats that may be
crucial to the companys success. Similarly human resources management is
in a unique position to supply competitive intelligence that may be useful in
the strategic planning process. Human resources department also participates
in the strategy formulation process by supplying information regarding the
companys internal strengths and weakness.

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Strategic human resources managers need a change in their mindset from
seeing themselves as relationship managers to resources managers knowing
how to utilize the full potential of their human resources.

2.4 MANAGEMENT OF INDIVIDUAL DIFFERENCES

Human psychology deals with the study of human behavior. As we know
human behavior is of essential importance in every industrial activity or
working environment. Human psychology encompasses the study of the
human side of management.

Mans behavior plays a part in all facts of life including industrial life. As
managers, we should be aware of the traits exhibited by individual. Human
behavior does not just happen, it is caused. How any individual responds to
any particular situation depends on what he brings into the situation in teams
of his abilities attitudes, skills, desires and habits. The traits must have been
acquired or developed through nature or nurture and they vary according to
the difference in individuals.
INDIVIDUAL DIFFERENCES
Let us now examine in some details the contributory factors to the
differences we find in individuals and how they affect each individual in his
workplace, or in his relationship with his neighbors or colleagues.
Heredity: - heredity we all know, determines the unborn patterns of behavior
in humans which we call instincts. Many of our inherited characteristics are
not evident at birth. It is not possible to tell at birth whether the child would
be tall or short. Pretty or plain when it grows up. But these characteristics
are latent in the child from conception. There is evidence to show that our

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brains are the result of heredity in much the same way as our bodies. The
chances that intelligent parents will have intelligent children are the same as
that tall parent will produce tall children. Its clears that mental development,
physical features and certain patterns of behaviors have all strong link with
hereditary.
Environment: Environment influences our development throughout our
development throughout our whole life. He is always a critical factor in our
repossesses and in our growth. What we eat and how we live greatly affect
our physical development. Hereditary, as we have seen above, gives to us
our inborn and talents, our physical and mental mechanism, with allits
strengths and weakness but environment tempers and alters our natural
characteristics according to the treatment given.
Personality: - personality is the projection of ourselves to others. It is not
what we thinks ourselves to be like, but ourselves as other see s. personality
can often be the product of hereditary and environment. We have ha the
expression like father, like son. In simple terms it means a son very much
like his father. There are two types of personality traits introverts and
extroverts.

The duty of the human resources manager is to ensure that persons with
different characteristics or traits are placed in positions appropriate to these
characteristic or traits. Where they can be productive making use of their
natural endowments. These endowments can subsequently be sharpened
through training and development. In this connection, let us examine the
employment aspects of certain characteristics. For this purpose, we take the
characteristics of the introverts and extroverts.

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 THE INTROVERTS THE EXTROVERTS
i Like quite for concentration Like variety and some distraction
ii Are more careful with details Are faster, dislike complicated
procedures.
iii Dont mind working on one Are impatient with long slow jobs
project for a long time
uninterrupted
iv Like to think before they act Usually act quickly sometimes
without thinking
v Are patient with complicated Are impatient when there are
issues complicated details to remember
vi May have trouble making May decide things too quickly
decision
vii Like to plan their work and be Work in burst of energy powered by
able to get it finished on enthusiasm.
schedule
Source: C.C. Okoli (2002)
Overall, the ultimate aim should be the harnessing or channeling of the
different qualities or characteristics towards the same goal i.e productivity
goal. In this case there can be unity in diversity. All individual qualities
physical and mental endowments. Personal traits e.t.c, should all be pulled
together towards productivity and the profitability of the company. As we all
know profitability, generates prosperity. Prosperity both for the company and
the individuals who make up the company.

2.5 THE IMPORTANCE OF STRATEGIC HUMAN RESOURCES

MANAGEMENT

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Mathanas (2011) strategic human resources can be defined as the linking of
human resources department with the strategic goals and objectives of the
organization In order to improve the organization performance and develop
the organizations culture to ensure that there is innovation and flexibility.

Mathanas (2011) strategic human resources is normally performed to help

companies and organizations best meet the needs and expectation of their
employees while promoting and working towards achieving the company
goals. Strategic human resources management also deals with any aspects of
the enterprises that affect the employees, including employee hiring and
firing, employee pay, their benefits, training, administrator issues of the
employees.

Strategic human resources management or SHRM is also concerned with the

practice management of an organization work force or employees. SHRM
requires thinking ahead leading and also putting up ways for a company to
better meet his employees need and vice versa for the employers. SHRM
influence the way in which things are done in the organization including
training, hiring and firing of employees.

SHRM helps companies work hard to meet the needs of their employees and
cultivate a work atmosphere conclusive for production purpose SHRM also
can help to improve the skilled employees working rate. Also SHRM helps
reduce spending on the hiring and training of new employees.
SHRM helps to reduce the costs for the organization and thus earn them a
competitive advantage. SHRM also plays the role of identifying and
analyzing the external opportunities and the threats that may impede the

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companys performance it also helps the organization to be prospective one
rather than just focusing on he present

SHRM also helps to translate the business strategic into the human
resources. This is because the time from the conception of the strategy to the
execution of a strategic is shortened. It also helps the business to achieve its
financial performance through effective strategy execution.

2.6 CONTRIBUTIONS OF STRATEGIC HUMAN RESOURCE

MANAGEMENT TO THE ORGANIZATIONS PROFIT.
Some critics often question the contributions of SHRM to the overall profits
of the company or organization. Unlike the sales, account units or
production department, they clam that the SHRM departments does not
contribute directly to the organizations profits.

To such cynics the following questions are posted and they demand
quantified answer.
What is the cost of low morale, inefficiency and low productivity?
What are the benefits derivable from employees full efficiency and
proficiency through training and development?
What is the cost of accidents and the resultant absenteeism and payment of
workers compensation?
What is the likely effect of fire outbreak which could have easily been
prevented or put under control by trained manpower?
What is the cost of incessant or large-scale labour turnover?
What advantages has the organization been deriving from industries peace,
what costs would arise or have risen from strike actions?

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The questions can go on adinfinitum. All the question asked will lead to
costs which reduces organizations profit. They can all be prevented by an
effective SHRM.
In addition, to the above, here are some other contributions of SHRM to
organizations profits.
SHRM prevents lawsuits from its employees through peaceful industrial
relationship.
SHRM Contribute to profit by implementing cost effective benefits
programs
SHRM Contribute to profit by making sure that salaries are competitive thus
saving compensation money.
SHRM adds to profit by designing and implementing true pay for
performance systems that incent those people that are truly meeting and
exceeding expectations this adding to profits by increasing revenues and
reducing costs.

CHAPTER THREE
RESEARCH METHODOLOGY
This chapter deals with the ways of gathering information that will lead to
the possible solution to the research. Every research work requires an
effective method through which the needed data could be collected. Osuala
(1993) define research methodology as the process of arriving at a
dependable solution to a problem through the planned and systematic
collection, analysis and interpretation of data.

3.1 RESEARCH DESIGN

Campbell (1998) defines research design as a frame work or plan for a study
that is used in collecting and analyzing a set of data.

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Sellitzeted (19071) epitomizes the essence of research design as the
arrangement conditions for collection and analysis of data in a way that aim
to combine relevant information to the research.

The design of this study adopted is survey method data collection which
involves personal interview and administration of questionnaires. In
preparing the research, the researcher made use of table sample percentage
as the basic instrument of data analysis.
3.2 AREA OF THE STUDY
This is the geographical area where the study is undertaken. The area of the
study for this research work is Zenith Bank Nigeria, Plc. Lokoja, kogi state.

3.3 POPULATION OF THE STUDY

Population refers to all the member of elements of a particular group of
people or things in a defined area. In research the population defines the
limits within which the researcher findings are applicable. It is the people or
subjects in the geographical areas where the study covers.
The population of this study is the entire workers working in zenith bank
Nigeria plc, lokoja, kogi state, which amount to 35. The structure of the
population is as follows: top management level 5 workers, middle
management level 10 workers, lower management level 15 workers and
contracted staff 5.

3.4 SAMPLE OF THE STUDY

Sample is a technique of selecting a small group of the population from the
whole for investigation. Here the research selects a smaller group of element
drawn through a definite procedure from the population being studied.

The research adopted the population of the study 35 as the sample size,
because the population size was small and in adequate to select a sample
size from.

3.5 METHOD OF DATA COLLECTION

The following sources were used in this project work to collect data the
researcher use questionnaire and personal interview to obtain data and
information from the respondent. According to Harold Lucas, questionnaires
are a list of questions addressed to selected individual who are thought to
have the information that are required. The questionnaire is a device used for
obtaining answers to research relevant questions from a sample of
respondents. By using a form which the respondents usually fill out himself.

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The research chooses this method of data collection because of the
following:
A question allows quantitative analysis of responses and statistical test of
hypothesis. By this research results and inferences are scientific determined.
It allows the respondents to be more meticulous in answering the questions
as they are not required to give immediate responses.
It avoids requesting respondents to reveal their homes, employees and other
sensitive information, respondents are therefore at liberty to offer correct
information.
The technique more financially manageable.
The bias often attributed to an interview is more or less completely ruled
out.
Interview is defined as an evaluation process which involves at least two
people in a face-to-face oral discussion with the main aim of wanting to get
information one from the other.

The researcher also choose personal interview because of the following

reasons:
Some of the respondents were illiterates who cant read and write, meaning
they cant respond to questionnaires.
It gives the researcher a high degree of flexibility when asking questions
It allows the researcher to collect in-depth information from the respondents
on a variety of issues.

3.6 ADMINISTRATION AND RETRIEVAL OF INSTRUMENTS

A total of 35 questionnaires were prepared and personally administrated to
the respondents and they were told what was expected of them and that the
researcher can be called upon for more clarification if need be. After one
week the researcher went back for retrieval of the questionnaire and was
able to retrieve the entire 35 questionnaire which were already filled.

3.7 PROBLEM OF METHODOLOGY

In finding out reliable data regarding the research study the researcher
encountered some problems in the research work. The following are
problems that emamated.
The respondent was not able to understand some of the questions in the
questionnaire.
The research had little time to construct and prepare the questions as he had
to contend with other academic activities.

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Lastly, the non-chalant attitude of some of the workers as they were reluctant
to give the researcher audience. Because they felt the research was of no
benefit to them.

3.8 METHOD OF DATA ANALYSIS

The data collected from the questionnaire were analyzed in tabular form for
easy understanding. Simple frequency tables showing percentages and also
cross classified variables were analyzed using chi-square distribution in
other to test for dependency between the classified variations.

Each table is followed by logical interpretation of result obtained from the

analysis. However, the information derived from the respondents and the
outcomes of both the mathematical and statistical test will confirm the
validity of the hypothesis. This will equally serve as the basis on which
inferences, deductions and conclusion to this study will be the sample
percentage is calculated thus.
Sample percentage = f x 100
N 1
Where
F= frequency of response
N= total no of response
The chi-square (x2) is calculated thus
Chi-square (x2) = (fo-fe) 2
Fe
Where:
Fe= expected frequency
Fo= observed frequency
= summation
X2 = chi-square

CHAPTER FOUR
4.1 DATA PRESENTATION AND ANALYSIS
The essence of this chapter is to present and analyze information gathered
from respondents in the course of the study.

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A total number of thirty five (35) copies of questionnaires were administered
to the various staff occupying different positions in Zenith bank Nigeria plc.
Lokoja

All the thirty five (35) copies of questionnaires distributed were completed
and returned.
4.2 ANALYSIS OF DATA
The researcher analyzed the data with the aid of responses to the
questionnaires recovered from the respondents.
The research data presentation adopted data tabulation and percentages,
which began with the personal data of the respondents as shown below:
Question one: Sex distribution of respondents
Table 4.1
Sex No. of respondents Percentage %
Male 22 62.9%
Female 13 37.1%
Total 35 100%
Source: field survey, 2012
The above table shows that male respondent accounted for 22 representing
62.9%, while the female accounted for 13 representing 37.1%. This implies
that male staffs are more than female staff in the bank.

Question Two: Age of the respondents

Table 4.2
Age No. of respondents Percentage %
21-30 15 42.9%
31-40 10 28.6%
41-50 8 22.8%
50 and Above 2 5.7%
Total 35 100%

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Source: field survey, 2012
The above data shows that staff within age 21-30 are 15 representing
42.9%, 31-40 years are 10 representing 28.6%, 41-50 years accounted for 8
representing 22.9%, 50 and above are 2 representing 5.7%. This implies that
majority of the staffs are age 21-30 years old.

Question Three: Marital status of respondents

Table 4.3
Marital Status No. of respondents Percentage %.
Single 20 57%
Married 12 31%
Divorce 3 12%
Total 35 100%
Source: field survey, 2012
The table above shows the marital status of the respondents. It shows
that those who are single were 20 representing 57%. Those who are married
were 12 representing 31%, and 3 were divorce representing 12% of the
respondents. This implies that singles are more in the sector.

Questions four: Educational qualification of respondents

Table 4.4
Educational Qualification No. of respondents Percentage %
WAEC/GCE 10 28.5%
NCE/OND 19 54.3%
B.SC/HND 5 14.2%
MASTERS 1 2.9%
Total 35 100%
Source: field survey, 2012
The table above shows that 10 respondents representing 28.65% are
WAEC/GCE holders, 19 respondents representing 54.3% is NCE/OND

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holders, 5 representing 14.2% are BSC/HND holders and 1 respondent
representing 2.9% had a master degree.

Question five: Level of management belonged to by respondents

Table 4.5
Level of management No. of respondents Percentage %
Top level 5 14.3
Middle level 10 28.6
Lower level 15 42.8
Contracted staff 5 14.3
Total 35 100%
Source: field survey, 2012
The table above shows that 5 respondents representing 14.3 belong to
top level management, 10 respondents representing 28.6 belong to the
middle level, 15 respondents representing 42.8 belong to lower level and 5
respondents representing 14.3% were contracted staff

Question six: profit maximization is the main objective being pursued by

banks in banking industry
Table 4.6
Variables No. of respondents Percentage %
Strongly Agreed 20 57%
Agreed 8 23%
Strongly disagreed - -
Disagreed 7 20
Undecided - -
Total 35 100%
Source; field survey, 2012
The above shows that 20 respondents representing 57% strongly agree
that profit maximization is the main objective being pursued by banks in the
banking industry, 8 respondents representing 32% agree, 7 respondents

23
representing 20% disagree to the statement. This implies that profit
maximization is the main objective being pursued by banks in banking
industry.

Question seven: Banks that makes huge profit stands a better chance of
survival in the banking industries.
Table 4.7
Variables No. of respondents Percentage %
Strongly Agreed 15 43%
Agreed 10 29%
Strongly disagreed 6 17%
Disagreed 4 11%
Undecided - -
Total 35 100%
Source: field survey, 2012
The table above shows that 15 respondents representing 43% strongly agree
that Banks that make profit stands a better chance of survival in the banking
industry, 10 respondents representing 29% agree, 6 respondents representing
17% strongly disagree, 4 respondents representing 11% disagree to the
statement. This implies that banks that make huge profits stand a chance of
survival in the banking industry

Question Eight: human resource department should be the most important

department in an organization.
Table 4.8
Variable No. of respondents Percentage %
Strongly Agreed 23 65%
Agreed 10 29%
Strongly disagreed - -
Disagreed 2 6%
Undecided - -

24
 Total 35 100%
Source: field survey, 2012
The table above shows that 23 respondents representing 65% strongly
agree that human resources department should be the most important
department in an organization 10 respondents representing 29% agree, 2
respondents representing 65% disagree to the statement. This implies that
majority of the respondent strongly agree that human resource department
should be the most important department in an organization.

Question nine: Strategic human resource management affect the profitability

of an organization.
Table 4.9
Variables No. of respondents Percentage %
Strongly Agreed 20 57%
Agreed 8 23%
Strongly Disagreed - -
Disagreed 7 20%
Undecided - -
Total 35 100%
Source: field survey, 2012.
The table above shows that 20 respondents representing 57% strongly
agree that strategic human resource management affects the profitability of
an organization, 8 respondents representing 23% agree, and 7 respondents
representing 20% disagree. This implies that strategic human resource
management affects the profitability of an organization.

Question Ten: All other resource of an organization are useless without the
human resources to plan and manage them
Table 4.10

25
 Variables No. of respondents Percentage %
Strongly Agreed - -
Agreed 30 85.7
Strongly Disagreed - -
Disagreed 5 143%
Total 35 100%
Source: field survey, 2012
The table above shows that 30 respondents representing 85.7% agree
that All other resource of an organization are useless without the human
resource to plan and manage them 5 respondents representing 14.3%
disagree. This implies that all other resources of an organization are useless
without the human resources to plan and manage them.

Question fourteen: well trained personnels are needed for the profitability
and growth of an organization.
Variables No. of respondents Percentage %
Strongly Agreed 27 77%
Agreed 5 14%
Strongly Disagreed - -
Disagreed 3 9%
Undecided - -
Total 35 100%
Source: field survey, 2012.
The table above shows that 27 respondents representing 77% strongly
agree that well trained personnels are needed for the profitability and
growth of an organization, 5 respondents representing 14% agree, and 3
respondents representing 9 %. This implies that well trained personnels are
needed for the profitability and growth of an organization.

4.3 TEST OF HYPOTHESIS

26
 In testing the research hypothesis the chi-square table x2 was used and
for proper understanding. The following variables are contained in analysis
value in calculated x2
X2 = (F0-Fe)2
Fe
Where;
= Summation
X2 = chi-square
Fo = observed frequency
Fi = expected frequency
The degree of freedom is determine by the function
DF= (r-1)(c-1)
Where,
r = No. of rows
c = No of columns
It should be noted that the degree of freedom is to be at the level of
significance of 5% or 0.05.
DECISION RULE:
If the observed or calculated value of x2 is greater than the table value the
null hypothesis (H0) is rejected and (Hi) accepted.
If the calculated value of x2 is less than the table value x2 the null
hypothesis (H0 ) is accepted and (Hi ) rejected.
HYPOTHESIS ONE:
Ho : Strategic human resources management do not affect the profitability of
an organization
Hi: Strategic human resource management affect the profitability of an
organization.

27
Using table 4.9
Variables No. of respondents Percentage %
Strongly Agreed 20 57%
Agreed 8 23%
Strongly Disagreed - -
Disagreed 7 20%
Undecided - -
Total 35% 100%
Using the data from table 4.9
Variables Fo Fe Fo-Fe (Fo-Fe)2 (fo-fe)2/fe
Strongly Agreed 20 7 13 169 24.1
Agreed 8 7 1 1 0.14
Strongly - 7 -7 19 7
Disagreed
Disagreed 7 7 0 0 0
Undecided - 7 -7 49 7
Total 35 38.24

Fe = Fo = 35 = 7
N 5
DF = (R-1) (c-1)
= (5-1) (2-1)
= 4x1 = 4
Calculated x2 = 38.24
Critical value x2 df 4 under 0.05 level of significance = 9.49
Decision Rule: Since calculated x2 = 38.24 is greater than critical value x2 =
9.94, we reject (H0 ) and accept (Hi ). This implies that strategic human
resource management affects the profitability of an organization.
HYPOTHESIS TWO:
Ho : All other resources of an organization are not useless without the
human resources to plan and manage them.

28
Hi : All other resources of an organization are useless without the human
resource management to plan and manage them.
Using table 4.10
Variables No. of respondents Percentage %
Strongly Agreed - -
Agreed 30 85.7
Strongly Disagree - -
Disagreed 5 143%
Undecided - -
Total 35 100%

Variables Fo Fe Fo-Fe (Fo-Fe)2 (fo-fe)2/fe

Strongly Agreed - 7 7 49 7
Agreed 30 7 23 529 75.6
Strongly
- 7 -7 49 7
Disagreed
Disagreed 5 7 -2 4 0.57
Undecided - 7 -7 49 7
Total 35 97.17

Fe = 35 = 7
5
DF = (r-1) (c-1)
= (5-1) (2-1)
= (4x1) = 4
Calculated x2 = 97.17
Critical value x2 df4 under 0.05 level of significance = 9.49
Decision Rule: Since calculated x2 = 97.17 is greater than critical value x2 =
9.49, we reject (Ho ) and accept (Hi ). This implies that all other resources of
an organization are useless without the human resources to plan and manage
them.

29
HYPOTHESIS THREE:
Ho : Well trained personnels are not needed for the profitability and growth
of an organization.
Hi : Well trained personnels are needed for the profitability and growth of an
organization.
Variables No. of respondents Percentage %
Strongly Agreed 27 77%
Agreed 5 14%
Strongly Disagreed - -
Disagreed 3 -
Undecided - -
Total 35 100%

Variables Fo Fe Fo-Fe (Fo-Fe)2 (fo-fe)2/fe

Strongly Agreed 27 7 20 400 57.1
Agreed 5 7 -2 4 0.57
Strongly
- 7 -7 49 7
Disagreed
Disagreed 3 7 -4 16 2.29
Undecided - 7 -7 49 7
Total 35 73.95

Fe = 35 = 7
5
DF = (R-1) (C-1)
= (5-1) (2-1)
= (4x1) = 4
Calculated x2 = 73.95
Critical value x2 df4 under 0.05 level of significance = 9.49

30
Decision Rule: Since calculated x2 = 73.95 is greater than critical value x2 =
9.49, we reject (Hi ) and accept (Hi ). This implies that well trained
personnels are needed for the profitability and growth of an organization
4.3 DISCUSSION OF FINDINGS
The data obtained from the respondents have been analyzed, from this
analysis the researcher made some discoveries. These research findings are:-
It was discovered that strategic human resources management affect the
profitability of an organization.
It was discovered that other resource of an organization is useless without
the human resources to plan and manage them.
Conclusion was drawn that well trained personnel are needed for the
profitability and growth of an organization.
It was discovered that profit maximization was the most pursued objective of
organization
It was also discovered that a satisfied and happy worker contribute more to
the profit of an organization than one who was unhappy.

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 SUMMARY OF FINDINGS
The study investigates the relevance of strategic human resource
management on the profitability of a modern business organization a case

31
study of zenith bank Nigeria plc Lokoja. In other to achieve the purpose of
this study 35 questionnaires where distributed to respondents who where
carefully selected and dimmed fit to contribute meaningfully to the research
work. Hypothesis where developed and tested using chi-square statistical
method with the aid of the responses from the questionnaire. Findings from
the analysis of data and test of hypothesis show that the strategic
management of human resource in an organization actually contributes to its
profitability. Also findings show that all other resources of the organization
are useless without the human resources to manage and plan them. Findings
further shows that well trained personnel are needed for the growth, success
and profitability of an organization. It was also discovered that a happy
worker will contribute more to the profitability of an organization than one
who is not happy. It was also discovered that strategic human resource
management helps to translate the business strategies into the human
resource practices which helps the business to adapt to changes.

5.2 CONCLUSION
Most corporate executives in most public and private sector organizations
regarded materials and financial resources as the most important assets in
any given industry or organization. This thinking, as stated above, is the
major reason why many organization see their human resource as not been
so important. This attitude and thinking towards human resource needs to
change.

Modern business is full of challenges. To face these challenges, organization

should recognize the fact that human resources are inevitable. This is

32
because of their role as the prime mover or initiator of all productive
activities.

For an organization to fully achieve its profit potential, it should be able to

manage its human resources strategically. Strategic human resources
management is a profitable and of importance when put into practice. It
should be pursuit to the limits. Strategic human resource management is a
prospective investment that is not worth ignoring.

5.3 RECOMMENDATION
Based on the findings of this study the research was able to outline the
following recommendations:-

Strategic human resources management should be practiced by an

organization that wishes to increase their profit.
The human resources in an organization should be given top priority in any
organization.
Organization should try and ensure that their workers are satisfied,
comfortable and happy with their jobs, because a happy worker contributes
more to the growth and success of the organization.

33
BIBLIOGRAPHY
Armstrong.M. (2004) A Handbook of Human Resource Management
Practice. New Delhi: Kogan Page India
Banjoko.S.A. (1996) Human Resource Management: An Expository
Approach. Lagos: Suban Publishers
Lunch.R. (1997) Co-operate Strategy. London: Financial Times and Pitman
Publishing.
Garba.A.M. (2001). The Essence of Management, Kano: Co-operate
Solutions
Robert C. Appleby (1987) Modern Business Administration, 3rd Ed, Pitman
Publishing LTD, London.
P.C. Unamka, and U.J.F. Ewurum (1995), Business Administration, Printers
and Publishers, Enugu Nigeria.
Dumont, Raymond A. et al. (1985). Business Communications. Boston:
Little, Brown and Company.

34
APPENDIX I
Department Of Business Administration
School Of Management Studies,
Kogi State Polytechnic
P.M.B 1011, Lokoja
Kogi State.
10th September, 2012
Dear Sir/Madam,
QUESTIONNAIRE
I am a final year student of the above named institution carryout a
research on the topic The Relevance of Strategic Human Resource
Management on the Profitability of a Modern Business Organization.
(A case study of Zenith Bank Nigeria, Plc. Lokoja Kogi State.)
Attached with this letter is the research questionnaire. Kindly tick ( )
where appropriate in the square provided. I assure you that all the
information given will be treated with utmost confidentiality.
Thanks for your anticipated co-operation.

Yours Faithfully

Umoru Ozovehe Issa.

35
APPENDIX II
QUESTIONNAIRE
INSTRUCTION: Please read carefully through the question below and tick
the appropriate answer. ( )
SECTION A: PERSONAL DATA
Sex: Male ( ) Female ( )
Age :21-30 years ( ), 31-40 years ( ),41-50 years ( ),
50 years and Above ( )
Marital Status : Single ( ), Married ( ), Divorced ( )
Educational Qualification : WAEC/GCE ( ), NCE/ND ( ),
B.Sc/HND ( ) Others ( )
Level of Management: Top Level ( ), Middle Level ( ),
Lower Level ( ), Contracted Staff ( )
SECTION B:
Profit maximization is the main objective being pursued by banks in the
banking industry.
Strongly agree ( ), Agreed ( ) Strongly Disagreed ( ), Disagreed ( )
Undecided ( )
Banks that makes huge profit stands a better chance of survival in the
banking industry.
Strongly Agreed ( ), Agreed ( ), Strongly Disagreed ( ),
Disagreed ( ) Undecided ( )
Human resource department should be the most important department in an
organization.

36
Strongly Agreed ( ), Agreed ( ), Strongly Disagreed ( ),
Disagreed ( ) Undecided ( )
Human resources are the most important resources of an organization.
Strongly Agreed ( ), Agreed ( ), Strongly Disagreed ( ),
Disagreed ( ) Undecided ( )
All other resources of an organization are useless without the human
resources to plan and manage them.
Strongly agreed ( ), Agreed ( ), Strongly Disagreed ( ),
Disagreed ( ) undecided ( )
The human resources department contributes directly to the profitability of
an organization.
Strongly Agreed ( ), Agreed ( ), Strongly Disagreed ( ),
Disagreed ( ) Undecided ( )
Strategic human resources management affects the profitability of an
organization.
Strongly Agree ( ), Agreed ( ), Strongly Disagreed ( ), Disagreed ( )
Undecided ( )
Keeping workers happy and satisfied at the workplace is one of the key
functions of the human resources department.
Strongly Agreed ( ), Agreed ( ), Strongly Disagreed ( ), Disagreed ( )
Undecided ( )
Well trained personnel are needed for the profitability and growth of an
organization.
Strongly Agreed ( ), Agreed ( ), Strongly Disagreed ( ), Disagreed ( )
undecided ( )
A happy worker will contribute more to the productivity and profitability of
an organization.

37
Strongly Agreed ( ), Agreed ( ), Strongly Disagreed ( ), Disagreed ( )
undecided ( )

38