A SURVEY OF THE EFFICIENT AND EFFECTIVE PERSONNEL MANAGEMENT IN SMALL AND MEDIUM SCALE INDUSTRIES

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The rate of increase in population in the world is fast growing especially in developing countries like Nigeria, that societal demands for essential goods and services are so much on the increase that government owned companies and industries cannot meet up with these demands. The government being aware of these pertinent problems created a healthy environment in which some multi-nationals, the societal demands for services and goods have been satisfied, but not completely.

Further, since human beings are insatiable and the satisfaction of a problem leads to another, the society at large demanded for some other smaller commodities in which the government owned and multi-national companies couldn’t meet up with the demands because of either disturbance in their production schedules or the small quantities demanded. The government therefore gave legal authority by way of edicts to interested individuals to establish their own small-scale companies of their choice. Not only that they were given legal authority, they were given loans by government to set up financial institutions to monitor and supervise the operations of these small scale industries.

Agason Nigeria limited an example of such a small scale company established under such edicts: it is purely a one man business which was established in 1990, but it started production in 1994. It is a soap manufacturing company located in Owerri industrial layout in Imo state and has a staff capacity of thirty, made up of three supervisors graduates, and the rest of the staff are semi-skilled and unskilled workers. Her products are Anchor quality bar soap, ladder bar soap, Anchor and ladder tablets.

The organizational structure is such that the owner does all the managerial functions and every worker is expected to report to him before any actions are taken. But the company has not really received the financial assistant from banks because of lack of personnel and poor managerial capability of the owner. But it should be noted that whatever may be the organizational goals or activities of any company, it can only be achieved and implemented through effort and capabilities of people. Otherwise the organizational structure must be manned and staff properly. Therefore it can clearly be put that the appropriate management of human resources is an essential responsibilities in all business regardless of size, in fact, the smaller the business, the less important it is to select the right persons for the right job

1.2 STATEMENT OF THE PROBLEM

Personnel management in small medium scale industries has been faced with multi-dimensional problems. Personnel is one of our most complex and challenging fields or endeavors, this is because it is this function that integrates the interest of the organization-that of the employee and the society at large. The success of an organization depends largely on the activity of her personnel. And in the light of the foregoing, these questions were found relevant to guild the present research effort:

I. What are the sources of recruitment in Agason Nigeria Limited?

II. What are the sources of human resources development in Agason Nigeria Limited?

III. What are the basics for wages and salary administration in small scale organizations?

IV. What are the motivational factors in Agason Nigeria Limited?

1.3 OBJECTIVE OF THE STUDY

The search for solutions to the problems and prospects of personnel management in small scale organizations has almost proved abortive. These problems are multifarious and the purpose of this research is to reduce these problems to the minimum and make small scale industries achieve or attain the purpose of which they were set up. Therefore the specific objectives of this research could be narrowed down as follows:

1) To determine whether or not human resources development affects the organizational efficiency of Agason Nigeria Limited.

2) To find out if motivation of workers helps in achieving the goals of Agason Nigeria Limited.

3) To determine if wrong selection and recruitment of workers has a negative effect on Agason Nigeria limited.

1.4 HYPOTHESES

The following hypotheses have been derived from the statement of problem and objectives of study as enumerated above.

1) H₁ human resources development affects the organizational efficiency of Agason Nigeria limited.

2) H₂ motivation of workers helps in achieving the goal of Agason Nigeria limited.

3) H₃ wrong selection and recruitment of workers has a negative effect on Agason Nigeria limited.

1.5 SIGNIFICANCE OF THE STUDY

The importance on the roles small and medium scale industries play in any country cannot be over stressed; these industries have therefore to be manned and staffed rightly in order to achieve these sole aims. This research could serve as a guideline for other researchers.

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