10,000 3,000


Topic Description




Human resources are recognized as the most important resources required for the production of goods and services, as well as the key to rapid socio-economic development and efficient service delivery. In his view Barney, (1995:50), explained that human resource include all the experience, skill, judgment, abilities, knowledge, contact, risk taking and wisdom of individual and associates within an organization. Without an adequate skilled and well motivated workforce operating with a sound human resource management programme, there will not be development.  Any organization that underrates the critical role and under plays the importance of people or human resource in goal achievement can neither be effective nor efficient.

The realization of the value of human resource in any organization has in recent time led to a more human focus approach in managing organization. Thus, human resource management has gained prominence in business management. Human resource management is a modern term for what has been traditionally referred to as personnel management. A strong tendency to adopt the term ‘human resource management’ as a substitute for ‘personnel management’ has developed and grown stronger (Ikeagwu, 1998).  Human resource management embraces those activities designed to provide for and coordinate a human resource of an organization. It involves management decision and practices that directly affect or influence the people who work in the organization (Ogbuaja, 2002).

The burden of human resource rests squarely with line and functional managers who as departmental heads, design and utilize the element of human resource process in their departments and units. Indeed every manager should be acquainted with human resource management process and procedures should not only cooperate maximally with the director of human resource, as a specialist but also apply relevant element and procedure of the process, and must be effective at various levels of the organization. This is the only way the workforce can be effectively engaged for the achievement of the organizational goals (Eze 2002). They are particularly keen to employing individuals who can operate flexibly and adapt to different tasks as opposed to keeping rigidly defined job demarcations.

Human resource is the manpower existing in an organization. It is a vital factor of production and it is also referred to as labour in the language of the economists. The other factors of production can only be useful only when the human resource organizes them for the purpose of realizing the set goals of the organization.

Human resources are vital to the generation of all goods and services. Just as money and raw materials are resources, so are people or human resources of an enterprise. Other factors of production like land and capital require human resources to convert them to consumable goods and services for the good of human beings and for the survival of the firm.

Many organizations, both public and private firms in Nigeria and elsewhere in the world find it very challenging to deal with the issue of human resources management. It is vital to the extent that it has become a subject of debate, seminars and academic or academic researches. It is vast in scope and somehow, there is variety in type of resources one can find in every organization. The different requirements of each organization also require different approaches to the way that human resources management should be handled due to their peculiarities. For instance, the need for industrial harmony, specialization of jobs, promotion and recruitment of staff, training and manpower development, remuneration and staff discipline or motivation are important matters that the human resources manger have to grapple with in an organization.

Another vital thing one is faced with is the fact that the work force is always ageing, coupled with the constant invention of new technologies that threaten human resources. Management is always challenged by the methods suitable for replacement of the ageing workforce and how to cut costs in the human resource department.

The quality of output of goods and services which an organization turns out is correlated with the quality of human resources that is in that firm. A well organized human resources management will not only turn out high quality output, it will also lead to effective and efficient utilization  of other  factors of production thereby cutting cost (minimization of cost) and raising profitability.

Referring to this issue, Glueck (1982) reported that labour costs range from approximately 25 to 30 percent of total operating expenses in some process industries such as chemical or petroleum plants, and from 75 to 85 percent of operating expenses in labour intensive operations. Such as public school system” adding that they significantly influence productivity. In his view, “people operate machines, design the new products and services, make the decisions to borrow and spend financial resources, market the products and deliver the services. People even decide the objectives of the organization”. Obikoya (1996) in his opinion said that management of human resources is therefore a very important business function. An organization must have the right numbers and types of employees who must be managed in such a way that they will be able to achieve their personal and organizational objectives simultaneously”.

While taking significant notice of human resource in the production process, it is still a debate as to whether the cost of labour is fixed or variable. Some people in management argue that the cost of human resources does not change with every level of activity and as such it is fixed. Others believe that cost of human resources do vary along the line of production process due to varying degrees of output requirement. It is, therefore, imperative to look at the contribution of labour as partly fixed and party variable, in order to rest the argument between the two opposite schools of thought.

The human element involved in this study as it pertains to management of personnel as a factor of production, makes it quite distinct and separate from the rest of them. Human beings can not be subjected to laboratory conditions to be controlled by managers. They are guided by their senses and they are rational in their thinking. Human beings have emotions and they react to various situations, moods and conditions. These things also affect their psychology and general performance in their work environments. Managers, faced with all these circumstances and complexities of the human element, are constantly challenged to find solutions to the question of how to improve on performance in the entire organization. For example, human beings fall sick, go on holidays, grow old, demand higher wages and better conditions of services, make mistakes, they die, flout orders, full of negative behaviours and unpredictable in their attitude. All these challenges can always have drawback on the set objectives and goals of the organization if they are not properly managed by the human resource managers.


This study seeks to know the effectiveness of human resources management practices which are, placement, training, performance in terms of output or profitability in a private sector organization with Fidelity Bank Plc as its focus.  The second problem is how to assess management correctly based on empirical evidence about performance, especially in a private sector business. To assess management correctly, one needs a lot of determination and empirical evidence about performance. How do we do this and in a private sector business for that matter? The problems are glaring.


The following objectives are to be pursued in this study:-

  • To assess human resources management as it affects productivity or performance in Fidelity Bank Plc;
  • To examine the challenges faced by human resource managers in this private sector business;
  • To proffer solutions to the challenges of human resources management in Fidelity Bank Plc; and
  • To establish the relationship between human resources cost, administrative cost and profit after tax of Fidelity Bank Plc.



The following hypotheses will be carried out during this study:

  • HO: Profitability in business is not dependent on human resources and

administrative cost of the organization.

H1:    Profitability in business is dependent on human resources and admin cost of the organization.

  • HO: Human resources cost is not directly attributable to level of productivity of an organization.

H1:       Human resources cost is directly attributable to level of productivity of an organization.


This study is significant for the various benefits it will provide in the following ways:-

  • It will help managers understand the challenges faced by private sectors;
  • The relationship between cost, profitability, and performance of management will be established;
  • It will help carry out a good assessment of productivity.
  • It will provide a background to future researchers in a similar endeavour.
  • It will provide answers to some questions surrounding the human resources factors in the production process, as the most important.
  • The private sector is thereby given necessary focus as a major contributor to national DGP, and its also an expression of government’s effort to encourage private entrepreneurship in Nigeria.
  • The tests of hypotheses will provide empirical evidence that is necessary for clarification of facts as to the claims over the dependency of such variables as profitability and output, on level or quality of human resources, and manpower development.



This work covers the private sector business only. This study has been carried out in Nigeria, with particular reference to a private company called fidelity Bank Plc.

The study also has also explored to explore the concept of cost, profitability, efficiency and their relationship to human resources management in the private sector business. By this clarification, therefore, all other areas not mentioned are hereby excluded.


The following are some the limitations of this study:-

  1. The dearth of adequate and dependable data on profitability, manpower and cost is a limitation. Statistically, our private enterprises lack culture of accurate record keeping, and more importantly, they show no interest in the release of information for academic exercise of this nature. This bureaucracy is responsible for inadequate materials to be used for analysis of this kind.
  2. It is difficult to measure performance as some of the variables referred to in this study are not fully acceptable to all and sundry. The methods or procedure used have their shortcomings or drawback that can equally affect acceptability or credibility of the exercise.
  3. The data in use are secondary in nature and as such, they are subject to the limitations associated with the use of secondary data.
  4. There are time and financial limitations. It is important to note that time and financial resources are not always enough, this study not being an exception.