IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 2 NO. 2 2016

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Human Resource Management Practices and their Influence on Organizational Performance: An Analysis of the Situation in the Nigerian Insurance Industry

Sajuyigbe Ademola .S (PhD)

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Abstract

Effective utilization of human resources has been recognised as a strong factor that paves the path to achieve organizational goals. This study investigates the influence of human resource management practices on organizational performance with particular reference to Nigerian insurance industry. A structured questionnaire was used to collect the data from two hundred (200) respondents through purposive sampling technique. Descriptive Statistics and Ordinary Least Square method were used to analyse the data. Results show that human resource management practices jointly influence organizational performance at 1% level of significant. Results also indicate that human resource management practices contribute 88.3% to organizational performance. The study concludes that human resource management practices are major factors that influence organizational performance in Nigerian insurance industry. Study also confirms that employee participation has the highest influence on organizational performance followed by career planning systems and performance appraisal. Study also reveals that selection processes and compensation systems in Nigerian insurance industry are still below industry standard. Subsequently, the study recommends that the human resource department should be given free hand without undue interference to select suitable candidates and management should review salaries, commissions, and allowances upwardly on a regular basis.

keywords:

Career Planning, Selection, Compensation, Performance Appraisal, Organizational Performance

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