Effects of Globalization on HR Practice in Nigeria

Effects of Globalization on HR Practice in Nigeria

Chapter One

Objectives of the Study

The purpose of this research work on the effects of globalisation on human resources practices in Nigeria includes:

The identification of these said effects and how they have succeeded in opening up the Nigerian market to the rest of the world posed the country as a favourable space for foreign investment.
To describe the processes of these effects taking hold on the global and Nigerian local markets.
if the time factor does not affect the content, the research compares the traditional human resources with those of the globally influenced ones introduced.

CHAPTER TWO

LITERATURE REVIEW

INTRODUCTION

Our focus in this chapter is to critically examine relevant literatures that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.

CONCEPTUAL FRAME WORK

CONCEPT OF GLOBALIZATION

The world has been significantly changing since the end of the era of cold war. Specifically, since 1980s, the world economy is being guided by neoliberal economic policies that attempted to promote capitalism at a global scale through trade liberalization, foreign direct investment (FDI) and financial capital flows as well as the relaxing of government regulations especially in financial, goods and labour markets (Ornaran n.d.). These developments had succeeded in relatively shrinking the political, economic, and cultural barriers in favour of western countries and merging economies into a global village (Egberi and Samuel, 2017).

There is huge literature on the subject of globalization and its attendant implications on the socio-economic and political welfare of nation states. In the same vein, there is a convergence among scholars that the concept is not new (Farazmand, 1999:510; Knor, 2003:1; Held et al, 1999:5). What is “new is the magnitude of globalization and its impact on social welfare, environmental sustainability and international trade” (Steers and Nardon, 2000:21). Generally globalization is a broad term that elicits different meanings depending on the context (Adei, 2004:3; Chaykowaski, 2002:82; Farazmand, 1999:511). The term is mostly seen in terms of economic and technological forces at work with ripple effects on the social and political sphere (Rosecrance, 1996:45; Ostry, 1997:81; Aimiuwu, 2004:19). This submission is relevant in that it shows the multidimensional and far-reaching consequences of what is otherwise purely economic. This is more succinctly put by Ohmae (1995:67), who observes that “economic activity is what defines the landscape on which all other institutions, including political institutions, must operate. Business and governments are just beginning to live with its consequences.” This claim of primacy of economics over other social-political institutions has been the underlying theoretical framework of analysis for leftist scholars of the Marxist tradition. They claim that economics presents the substructure upon which others referred to as superstructure derive their form, function and relevance. It seems that this analytical premise is relevant in understanding the impact of globalization on various aspects of a nation’s and organization’s life. This challenge notwithstanding, various attempts have been made at a straight definition. Held et al (1999:16) define globalization as the: Process (or a set of processes) which embodies a transformation in the spatial organization of social relations and transactions-assessed in terms of their extensity, intensity, velocity and impactgenerating transcontinental or interregional flows and networks of activity, interaction, and exercise of power. Implicit in this definition is that globalization is a process not a static condition; which is not only on-going but is progressively impacting on the flow (which according to the authors refer to movement of physical artifacts, people, symbols, tokens and information) and network (which is defined to mean regularized and patterned interactions between independent agents and units) of activities across nations and regions. In their arguments the authors provide analytical framework for understanding various forms and dispensations of globalizations (Tikly, 2001:156). Four eras emerged from their calibrations denominated in terms of extensity, intensity, velocity and impact of the flows and networks.

Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology (Shuaib, Ekeria and Ogedengbe, 2015). The process has effects on the environment, culture, political systems, and economic development around the world. Through globalization, societies can gain competitive advantage from lower operating costs and access to new raw materials and additional markets (George-Anokwuru, 2018). Globalization is an unavoidable phenomenon in human history that is bringing the world nearer through the interchange of goods and products, facts, knowledge and culture. Globalization is also perceived as a trans planetary process or set of processes involving increasing liquidity and the growing multi – directional flows of people, objects, places and information as well as the structures they encounter and create that are barriers to, or expedite, those flows.

CHAPTER THREE

RESEARCH METHODOLOGY

INTRODUCTION

In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.

RESEARCH DESIGN

Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.

POPULATION OF THE STUDY

According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description.

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

INTRODUCTION

This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of thirty five (35) questionnaires were administered to respondents of which thirty (30) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 30 was validated for the analysis.

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

SUMMARY

The purpose of this research work on the effects of globalization on human resources practices in Nigeria using private business organization in Alaba informal industrial sector in Lagos State as case study. Other objectives includes The identification of effects and how they have succeeded in opening up the Nigerian market to the rest of the world and posed the country as a favourable space for foreign investment. The study also describe the processes of these effects taking hold on the global and Nigerian local market and compared the traditional human resources with those of the globally influenced ones introduced.

Survey research design was employed for the study and with aid of convenient sampling thirty-five (35) staff of businesses in Alaba informal industrial sector in Lagos State was selected as the participant of the study. The sources of data collection was both primary and secondary with the application of questionnaires as an instrument to gather the necessary data. The questionnaires were properly completed as well returned by only 60 respondent after being administered and this was a basis by which the primary data were collected. Textbooks, journals, articles, law reports, newspapers publications, were collected as secondary data, and also limitations to the study were indicated. Data was analyzed using frequencies, mean and standard deviation. The hypothesis was tested using chi-square test statistical tool (SPSS v.2.3) and the result were similar to those of the responses drawn from the questionnaires.

CONCLUSION

Globalization is an important strategic factor that influences organizations that compete for customers with high expectations for performance, quality, and low cost (Morrison,2005). Globalization drives people to change their ways of living, prompts firms to change their ways of conducting business, and, spurs nations to establish new national policies. In an increasingly borderless and globalised world, organization must be able to adapt and react proactively as well as rapidly to the demands and requirements of the changing environment in order to survive. In the case of the manufacturing firms, their main role will be to facilitate competition in an environment in which productivity and quality are important. At the macro level, the ability of the government to develop, utilize and allocate human resources effectively and efficiently is critical to enhance nation’s competitiveness. At the organization level, the skill sets of the workforce, potential of the workers to be trained and retrained and their ability to adapt to new technologies and work procedures will help to shape the organization’s competitive edge in this era of knowledge economy. The study therefore concludes that Globalization directly and indirectly affect the Human Resource management practices in Nigerian businesses.

RECOMMENDATION

Based on the results obtained from the study, it was recommended among others that firms and indeed all organizations should take cognizance of global market opportunities, global market uncertainty and global competitive threat most especially as they affect human resource practice

Additionally, It is now clear that the global environment changes very frequently and as such most organisations should maintain flexible human resource policies so as to reflect the changes in the global and local labour market. The era of reviewing HR policies within a rigidly stipulated long term period (say for instance, every 5years or 10 years) is over. It is essentially the dynamics of global forces that determines the frequency of such changes.

Nigerian organisations should pay competitive wages so as to reduce the exodus of skilled staff. The Nigerian government should step up its infrastructural development so as to ensure a conducive and safe environment for peaceful co-existence requisite for pursuit of personal and collective socio-economic objectives.

There is need to initiate policies aimed at encouraging Nigerians overseas to repatriate their earnings in form of foreign direct investment and/or help facilitate technology transfer. This is especially the case in the banking industry where most Nigerian banks are going global.

REFERENCES

Adei, S. (2004). “Impact of Globalisation on Management the African Perspective,” Management in Nigeria, Oct 2003-March 2004, Vol. 39/40.
Alchan, A. A. (1950). Uncertainty, evaluation, and economic Theory, Journal of Political Economy, 58,
Aldrich, H. E., & Pfeffer J. (1976).Environment of Organizations, in Inkeles, A. (Ed.) Annual review of sociology Vol.2.
Aimiuwu, l.E.A. (2004). “Globalisation- The Human Resource Challenge,” Management in Nigeria, Oct 2003-March 2004, Vol. 39/40.
Akinjide, O. (2007). “Globalisation of Legal Services-Fears of African Countries,” The Vanguard, September, 21.
Akpala, A. (1990). Management: An Introduction and the Nigerian Perspective, Enugu: Department of Management, University of Nigeria, Enugu Campus.
Appelbaum, E, and Batt, R. (1994). The New American Workplace: Transforming Work Systems in the United States, Ithaca: ILR Press
Bae, J and Rowley, C. (2002). “The Impact of Globalisation on HRM,” Journal of World Business Review, 36(4).

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