Embed Size (px)
Citation preview
EFFECT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON THE PERFORMANCE OF
FACULTY OF BUSINESS ADMINISTRATION
ChukwumaUgwuoke
ANOZIE, NWAMAKA MIRIAM
PG/MBA/12/63283
EFFECT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON THE PERFORMANCE OF
HUMAN RESOURCE IN SELECTED COMMERCIAL BANKS IN ENUGU STATE, NIGERIA
FACULTY OF BUSINESS ADMINISTRATION
DEPARTMENT OF MANAGEMENT
ChukwumaUgwuoke
Digitally Signed by: Content manager’s
DN : CN = Webmaster’s name
O= University of Nigeria, Nsukka
OU = Innovation Centre
EFFECT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON THE PERFORMANCE OF
BANKS IN ENUGU STATE, NIGERIA
FACULTY OF BUSINESS ADMINISTRATION
DEPARTMENT OF MANAGEMENT
: Content manager’s Name
Webmaster’s name
a, Nsukka
2
EFFECT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON
THE PERFORMANCE OF HUMAN RESOURCE IN SELECTED
COMMERCIAL BANKS IN ENUGU STATE, NIGERIA
ANOZIE, NWAMAKA MIRIAM
PG/MBA/12/63283
DEPARTMENT OF MANAGEMENT FACULTY OF BUSINESS ADMINISTRATION UNIVERSITY OF NIGERIA ENUGU CAMPUS
SEPTEMBER, 2014
3
EFFECT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON
THE PERFORMANCE OF HUMAN RESOURCE IN SELECTED
COMMERCIAL BANKS IN ENUGU STATE, NIGERIA
ANOZIE, NWAMAKA MIRIAM
PG/MBA/12/63283
A DISSERTATION SUBMITTED TO THE DEPARTMENT OF
MANAGEMENT FACULTY OF BUSINESS ADMINISTRATION
UNIVERSITY OF NIGERIA, ENUGU CAMPUS
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD
OF MASTER OF BUSINESS ADMINISTRATION (MBA) IN MANAGEMENT
SUPERVISOR: DR. E. K. AGBAEZE
SEPTEMBER, 2014
4
DECLARATION
I, Nwamaka Miriam Anozie, a postgraduate student in the department of
management MBA do hereby declare that the work embodied in this dissertation
is original and has not been submitted in part or in full for any other Diploma or
Degree of this or any other University.
-----------------------------------------------------------
Anozie, Nwamaka Miriam
PG/MBA/12/63283
5
APPROVAL PAGE
The dissertation has been approved for the department of management
By
------------------------------------- ----------------------------------
Dr. E. K. Agbaeze Date
Supervisor
----------------------------------- --------------------------------
Dr. O. C. Ugbam Date
Head of Department
6
DEDICATION
I dedicate this work to God Almighty who gave me knowledge, understanding and
strength to successfully carry out this research without any hindrance; I
appreciate and will forever be thankful to Him.
I am grateful to my parents Engr. and Dr. (Mrs) R. K. Anozie for their unconditional
love, financial support, constant prayers and encouragement they gave me
throughout my life and in course of this studies; I love you both and am thankful
to have you as my parents.
7
ACKNOWLEDGEMENTS
The researcher wish to express her indebtedness to God Almighty for the
opportunity of completing my Post graduate study in this prestigious University. I
also appreciate and thank my parents and siblings for the continual love, support
and encouragement that I was given throughout my program.
A lot of appreciation and gratitude goes to my supervisor Dr. E. K. Agbaeze for his
constant patience, supervision and encouragement during the course of this
research.
I also express my appreciation to the Head of Department of Management; Dr. O.
C. Ugbam, Dr. V. A. Onodugo, the Dean of Faculty of Business Administration;
Prof. J. O. Nnabuko. My lecturers; Professor Johnny Eluka, Dr Ann Ogbo, Professor
U. J. F. Ewurum, Dr. B. I. Chukwu, Dr. C. Nnadi, Prof. J. U. J. Onwumere, Dr. Fr. A.
Igwe, Dr. C. A. Ezigbo, late Dr. C. O. Chukwu and the host of others.
I must not fail to express my gratitude to my friends Kosi Obi, Ernest Chukwuka
for their inspirations and guidance while carrying out my research.
Anozie, Nwamaka Miriam
PG/MBA/12/63283
8
ABSTRACT
Information and Communication Technology (ICT) has become an indispensible part of
contemporary world while human resource management globally has equally being affected in
a number of ways through its adoption and application. Information and communication
technology is expected to improve the performance of Human Resource Management (HRM)
by shifting its focus from administration or personnel management to strategic HRM. HR
professionals are rather involved in complete transformation of HR processes with the use of
latest technology. The use of ICT in HR is likely to reduce cost, achieve effectiveness, and
improve HR practices and HR performance. Keeping these facts in mind, the present study has
been undertaken. The study therefore sought to determine the effect of ICT on HR
performance within the bank. Ascertain the extent of correlation between ICT tools and HR
functions within the bank. Rationalize the use of ICT for improving and providing solutions to
specific problems of HR practices within the bank. Identify the factors that influence the
effectiveness of ICT on HRM practices within the bank. The methodology adopted in carrying
out the research work was the survey design purposive sampling technique used in selecting 2
Commercial Banks in Enugu Urban. The Commercial Banks that were selected includes:
Diamond Bank Plc and Guaranty Trust Bank Plc. A sample size of 60 respondents was randomly
selected from the population pool. The data collection was by oral interview and by
questionnaire structured in five point likert scale. The result of the survey confirmed that there
is a strong positive and significant effect of ICT on HR performance within the bank. That ICT
tools are positively correlated to HR functions within the bank. That there is significant
relationship between ICT and improving HR practices within the bank. That socio-economic
factors such as (level of education, economic development, and technological development),
determine the effectiveness of ICT on HR practices within the bank. The study recommends the
need for banks to invest more on ICT tools and to ensure that the HR departments are well
equipped with the necessary ICT tools for increased HR performance. Organizations especially
the bank should keep their ICT tools up-to-date for efficient and effective carrying out of HR
functions. That bank should recognize key challenges that hinder responsiveness to the use of
ICT for HR functions such as level of education of employees, economic and technological
development of the country. That bank should endeavor to recruit and train qualified staff so as
to be conversant with the use of ICT tools. Government should look into the “epileptic power
supply” situation of the country and try to solve it because these ICT tools require constant
electric power supply. We conclude from the study that ICT has a positive and significant effect
on the performance of HR in the selected Commercial Banks, although there are some
challenges which these banks face that hinders the effectiveness of ICT on HR practices, which
are level of education, economic development, and technological development.
9
TABLE OF CONTENTS
Title page i
Declaration ii
Approval Page iii
Dedication iv
Acknowledgements v
Abstract vi
Table of Contents vii
List of Tables x
List of Figures xi
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study 13
1.2 Statement of the Problem 15
1.3 Objectives of the Study 16
1.4 Research Questions 16
1.5 Hypotheses 17
1.6 Significance of the Study 17
1.7 Scope of the Study 19
1.8 Limitations of the Study 19
1.9 Profile of the Commercial Banks under Study 20
1.9.1 Brief History of Diamond Bank Plc 20
1.9.2 Brief History of Guaranty Trust Bank Plc 21
1.10 Contextual Definition of Terms 23
10
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Concept of Human Resource Management Practices 24
2.2 The Practice and Challenges of Human Resource Management in Nigeria 29
2.3 Overview of Information and Communication Technology 30
2.4 Information and Communication Technology Tools Used in Human
Resource Practice 32
2.5 Effect of Information and Communication Technology on Some Key HRM
Practices 35
2.6 Electronic Human Resource (e-HR) or e-HRM 38
2.7 Effects of Information and Communication Technology on Human Resource
Performance 41
2.8 Benefit of Information and Communication Technology 42
2.9 Information and Communication Technology in Socio-Economic Environment
44
2.10 Factors Affecting the Effectiveness of Information and Communication
Technology in Societies 44
2.11 An Overview of Nigerian Banking Sector 46
2.12 Theoretical Framework 46
2.12.1 Technology Acceptance Model ( TAM) 46
2.12.2 Resource-Based View Theory (RBV) 47
2.13 Empirical Review 47
11
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design 49
3.2 Sources of Data 49
3.2.1 Secondary Data 50
3.2.2 Primary Data 50
3.3 Population of Study 50
3.4 Sampling 50
3.5 Research Instrumentation and Administration 51
3.6 Data Collection 51
3.7 Data Analysis Techniques 52
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Analysis of the Questionnaire 53
4.2 Test of Hypothesis 57
4.3 Discussion of Result 63
CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSIONS
5.1 Summary of Major Findings 72
5.2 Recommendations 72
5.3 Conclusions 74
5.4 Contribution to Knowledge 74
5.5 Suggested Area for Further Studies 74
Bibliography 76
Appendix 82
Questionnaire 83
12
LIST OF TABLES
Table 2.1: Comparison of Traditional HR to E-HR 39
Table4.1: Age Distribution of the Respondents 53
Table4.2: Marital status of the Respondents 54
Table 4.3: Sex Distribution of the Respondents 54
Table4.4: Educational Qualification of the Respondents 55
Table4.5: Respondent’s Length of Service 55
Table4.6: Descriptive Statistics on the effect of Information and Communications
Technology on the performance of Human Resource (N=50) 56
13
LIST OF FIGURES
Figure1: Landscape of e-recruitment 34
14
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Globally, organisation have started understanding that for effective running of their business
and most especially in human resource management processes and practices, they need to
embrace the use of information communication technology (ICT). Doran (2003), opines that
business work practices inclusive of HRM practices and policies have been changed by
Information Communication Technology. Information and communication technology gives an
organization a unique vantage point in its scale and scope of operation; as well as in its target
market for the effectiveness of its day to day operations.
Although the gains of ICT in the industrialised countries have been noted to be far reaching
than in the developing countries, David (2006), it still provides enormous adequate potentials
for enhancing productivity of human resource in small and large organizations. Thus the use of
ICT tools in carrying out HRM practices is beneficial as this will enable HR department in
carrying out their everyday activities and also communicate more effectively with employees.
Argenti (1998), argues that modern-day organizations were solely focused on retaining a
different demographics and a happy workforce with changing values, but they have inevitably
had to consider a more appropriate means to communicate with employees, thus organizations
look towards ICT to enable them achieve this aim.
Aside from ICT helping HR in effectively communicating with employees, other HR practices can
also be carried out such as recruitment and selection, performance management, training and
development etc. However, it’s often argued that the success of the ICT induction is attributed
to consistent delivery, strategy and system usability. This finding suggests that ICT in the
15
organization will play a vital role in enhancing organizational performance if properly
implemented and utilized.
Banking sector in the 21st century has become a strong driver for economic development in
every economy. According to Jayawardhena and Foley (2000), describe the banking industry as
“having a fundamental stand in overall global economy”. They further suggest that the financial
“change” in regards to development is subjected to the operations of several banks situated in
various economies.
One vital avenue that the banking sector has used to achieve viable competitive advantage is
through the effective management of their human resources. According to Wright and Snell
(1991), they are of the opinion that in order for an organisation to improve their performance,
they need to recognise that the human factor is a vital element which can enhance efficiency
and attain competitive advantage. Thus through the effective incorporation of ICT tools and
HRM practice, organizations especially banks could manage an increasing number of HRM
practices and employees in an effective manner; this can contribute to the availability of
information and knowledge, Ruel and Bondarouk (2008). Broderick and Boudreau (2001),
suggest that HRM professionals can play a strategic role in attaining improved competitive
advantage through the integration of ICT on HRM practices. Similarly, Drucker (1998);
Charvatova and Vander (2006), are of the opinion that human resource management will be
incomplete without a reference to ICT in extending and expanding the scope of which the
diffusion of information occurs globally.
According to Ball (2005), information communication technology has greatly developed the
Nigerian banking system, irrespective of this, effective and efficient management of human
capital management in this area of the economy has advanced to an increasingly complex and
important process. The banking industry began to electronically automate many HRM
department functions, which are generally administrative activities by developing and
16
introducing Information Technology oriented software application which later led to the
development of specialized human resource management systems (HRMS).
As a result of this development, the use of Information communication technology in Human
resource management practices has developed significantly in recent years and there are now
widespread applications across an extensive range of HRM practices in the banking sector.
Thus the degree to which ICT can help the banking sector in carrying out their HRM activities
cannot be overstated.
1.2 STATEMENT OF THE PROBLEM
Many researches have been undertaken in the past to study the changing role of HR
function/practices. HR professionals are rather involved in complete transformation of HR
processes with the use of latest technology. The use of ICT in HR is likely to reduce cost, achieve
effectiveness, and improve HR practices and HR performance.
Despite the significance of modern ICT on human resources management in Nigerian banks,
quite a number of challenges still confront the Nigerian banks in ensuring that ICT has positive
impact or effect on the performance of HR. These challenges arise as a result of social,
economic and political state of the nation.
Kasper and Mayerhofer (2005), assert that constant electric power outages in Least Developed
Countries pose serious threat to the survival of HRM. These power outages last for many hours
or days and have become a common occurrence in almost all organizations of Least Developed
Countries. The Nigerian government especially has not been able to tackle the problem of
energy despite the huge income being accumulated from oil production.
Dauda and Akingbade (2011), observe that the application of ICT requires high degree of
knowledge, expertise and skills by all categories of employees. Training of employees takes
17
huge amount of money and time to implement, and most employees have not really mastered
all aspect of ICT necessary for their effective performance.
Keeping these facts in mind, the present study has been undertaken.
1.3 OBJECTIVES OF THE STUDY
The main thrust of this study is to ascertain the effect of ICT on the performance of HR in
selected banks in Enugu State, Nigeria.
To this end, the study shall attempt to:
1. Determine the effect of ICT on HR performance within the bank.
2. Ascertain the extent of correlation between ICT tools and HR functions within the bank.
3. Rationalize the use of ICT for improving and providing solutions to specific problems of
HR practices within the bank.
4. Identify the factors that influence the effectiveness of ICT on HRM practices within the
bank.
1.4 RESEARCH QUESTIONS
In the course of this research, the following questions would be answered:
1. What are the effects of ICT on HR performance within the bank?
2. What are the ICT tools used in carrying out HR functions within the bank?
3. How does ICT improve and provide solutions to specific problems of HR practices within
the bank?
4. What are the Socio-economic factors that determine the effectiveness of Information
and Communication Technology on HR practices within the bank?
18
1.5 HYPOTHESES
The following hypotheses are to be tested during the study
Hypothesis one
H0: ICT have a weak and no significant effect on HR performance within the bank.
H1: ICT have strong positive and significant effect on HR performance within the bank.
Hypothesis Two
H0: ICT tools are not positively correlated to HR functions within the bank.
H1: ICT tools are positively correlated to HR functions within the bank.
Hypothesis Three
H0: There is no significant relationship between ICT and improving/providing solutions to
specific problems of HR practices within the bank.
H1: There is significant relationship between ICT and improving/providing solutions to specific
problems of HR practices within the bank.
Hypothesis Four
H0: There is no significant relationship between ICT and Socio-economic factors that determine
its effectiveness on HR practices within the bank.
H1: There is significant relationship between ICT and Socio-economic factors that determine its
effectiveness on HR practices within the bank.
1.6 SIGNIFICANCE OF THE STUDY
Recently, management of human resource (HR) and its needs is becoming the centre of the
attention of each individual employer in every organisation.
19
The target managers of HR have is to motivate and increase the performance of the
organization and create strategic means of their department within the organization. This aim
can be achieved through the use of information & communication technology (ICT); as the use
of ICT enables organisations to optimize their work process, Powell (1997), and gain
competitive advantage in its target market as well as in its day to day operations.
The significance of Information communication Technology in facilitating growth has been
recognised by organizations in the 21st century. Tan (2010), are of the opinion that Information
Communication Technology is an important driver for global economic and socio cultural
development. They also believe that Information Communication Technology has become a
necessary tool for globalization. In light of this, Organisations have realized the importance of
developing a synergy between ICT and effective HRM practices within an organisation, Powell
(1997). The importance of this synergy has also been recognised by the banking industry.
Wang, Olsen, Sorbring, and Stegberg, (2010), see the banking industry as a forerunner in
facilitating and implementing ICT to promote business growth and improve their human
resource. In light of the recent economic recession that swept the global economy, banking
industries have increased its efforts to exploit Information and Communication Technology
effectively for effective HRM practices. Information and Communication Technology allows
organisations to improve their core competencies, organizational structure, internal processes
as well as relevant markets on a global scale. Furthermore, ICT tools can be used for different
HR functions such as web data base which are essentially used for learning at work, decision
making and completing works, Benson (2002).
However, the effect of ICT on HR performance has come under scrutiny by, research academia,
experts and critics. Relative to a particular situation and context inherent in an environment,
Benson (2002), is of the opinion that information and communication technology may have an
adverse effect on the state of technology in a particular society where it is been exploited.
20
Thus, the principal rationale for carrying out this research is to determine the effect of
Information and Communication Technology (ICT) on the performance of HR in the banking
sector; analyse the various peculiarities that can hinder the effectiveness of Information and
Communication Technology on HRM practices in Nigeria and in the banking sector.
1.7 SCOPE OF THE STUDY
Theoretical Focus;
The research seeks to determine the effect and the degree of correlation between Information
and Communication Technology (ICT) and Human Resource (HR) performance in selected
commercial banks in Enugu State, Nigeria.
Geographical Coverage;
For the course of this research, two commercial banks where purposively selected within Enugu
State which is: Diamond Bank Plc and Guaranty Trust Bank Plc.
Time scope;
The period of study of the banks under study is within 2004 – 2014. Information or data within
these years will be considered most appropriate for use.
1.8 LIMITATIONS OF THE STUDY
This study has the following constraints;
Attitude of the respondent: Some respondents were not willing to cooperate with the
researcher for having no financial benefits from the study thereby making research materials
not readily available.
21
Finance: A lot of money will be required in data collection, analysis and interpretation. The
researcher is constrained financially. Owing to these constraints, the researcher could not cover
more than two banks.
Time: The researcher does not have enough time to carry out this study. There was constraint
of time in going to places where data and information relevant to the study could be obtained.
Also most organisations find it hard to release organisational information; this can result to low
response rate and delay the research process.
The above envisage constraints notwithstanding, the researcher intends to carry out the work
to a logical conclusion and thus make a valuable contribution to the existing body of
knowledge.
1.9 PROFILE OF THE COMMERCIAL BANKS UNDER STUDY
1.9.1 BRIEF HISTORY OF DIAMOND BANK PLC
Diamond Bank Plc began as a private limited liability company on March 21, 1991 (the company
was incorporated on December 20, 1990). Ten years later, in February 2001, it became a
universal bank. In January 2005, following a highly successful Private Placement share offer
which substantially raised the Bank's equity base, Diamond Bank became a public limited
company. In May 2005, the Bank was listed on The Nigerian Stock Exchange. Moreover, in
January 2008, Diamond Bank's Global Depositary Receipts (GDR) was listed on the Professional
Securities Market of the London Stock Exchange. The first bank in Africa to record that feat.
Today, Diamond Bank is one of the leading banks in Nigeria - respected for its excellent service
delivery, driven by innovation and operating on the most advanced banking technology
platform in the market. Diamond Bank has over the years leveraged on its underlying resilience
to grow its asset base and to successfully retain its key business relationships. And like a
22
diamond, our strength makes us even more valued and valuable. Diamond Bank has won
several awards including the prestigious "Nigerian Bank of the Year, 2009", the "Most Improved
Bank of the Year, 2007" and "Best Bank in Mergers & Acquisition, 2006" all by the This Day
Annual Awards.
Diamond bank has retained excellent banking relationships with a number of well-known
international banks, allowing it to provide a bouquet of world class banking services to suit the
business needs of their clients. These international banking partners include Citibank; Standard
Chartered Bank; Belgolaise Bank S.A; Deutsche Bank; Commerzbank; and Nordea Bank Plc etc.
1.9.2 BRIEF HISTORY OF GUARANTY TRUST BANK PLC
Guaranty Trust Bank plc was incorporated as a limited liability company licensed to provide
commercial and other banking services to the Nigerian public in 1990. The Bank commenced
operations in February 1991, and has since then grown to become one of the most respected
and service focused banks in Nigeria.
In September 1996, Guaranty Trust Bank plc became a publicly quoted company and won the
Nigerian Stock Exchange President's Merit award that same year and subsequently in the years
2000, 2003, 2005, 2006, 2007, 2008 and 2009. In February 2002, the Bank was granted a
universal banking license and later appointed a settlement bank by the Central Bank of Nigeria
(CBN) in 2003.
Guaranty Trust Bank undertook its second share offering in 2004 and successfully raised over
N11 billion from Nigerian Investors to expand its operations and favorably compete with other
global financial institutions. This development ensured the Bank was satisfactorily poised to
meet the N25 billion minimum capital base for banks introduced by the Central Bank of Nigeria
in 2005, as part of the regulating body's efforts to sanitize and strengthen Nigerian banks.
23
Post-consolidation, Guaranty Trust Bank plc made a strategic decision to actively pursue retail
banking. A major rebranding exercise followed in June 2005, which saw the Bank emerge with
improved service offerings, an aggressive expansion strategy and its vibrant orange identity.
In 2007, the Bank entered the history books as the first Nigerian financial Institution to
undertake a US$350 million regulations Eurobond issue and a US$750 million Global Depositary
Receipts (GDR) Offer. The listing of the GDRs on the London Stock Exchange in July that year
made the Bank the first Nigerian Company and African Bank to be listed on the main market of
the London Stock Exchange.
In December 2009, Guaranty Trust Bank successfully completed the first tranche of its $200
million corporate bond targeted at increasing the depth of its operations in West Africa and
Europe in the next couple of years.
In May 2011, the Bank successfully launched a US$500 million bond - the first non-sovereign
benchmark bond offering from sub-Saharan Africa (outside South Africa), to the international
community. The highly successful offering which matures in 2016, went further to show the
international finance community's believe in the GTBank brand.
In 2013, the Bank issued a USD 400,000,000 Euro bond at a coupon rate of 6%; the least
obtained by a Nigerian company in the international capital market. The Eurobond was issued
under the USD 2,000,000 Global Medium Term Note Programme, which is registered under
both Regulation in the United State of America and Rule 144A in the United Kingdom and sold
to investors across Africa, America, Asia and Europe.
24
1.10 CONTEXTUAL DEFINITION OF TERMS
This is an attempt to define words and abbreviations in the context it was used in this research
work.
ICT; Information and Communications Technology
HRM; Human Resource Management
EFFECT; Nature of relationship between variables under study
UNESCAP; United Nations Economic and Social Commission for Asia
CORRELATION; This is a measure of the degree of relationship between two variables.
Central Bank of Nigeria (CBN); National apex bank that acts as the bankers bank.
HRMS; Human Resource Management Systems. This is the composite of databases
computer application, hardware and software necessary to collect, record,
store, manage, deliver, manipulate and present data for human resource.
25
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 CONCEPT OF HUMAN RESOURCE MANAGEMENT PRACTICES
The competitive and unstable nature of the world have motivated organizations seeking to
attain economic advantage to look towards more innovative sources to achieve this aim,
Smeenk, Eisinga, Teelken, and Doorewaard, (2006); and one source which have been
recognised as a means of providing competitive gain is human resources. Similarly, Pfeffer
(1994), believes that human resource is an important and essential avenue in achieving
competitive improvement in an organization. Competitive edge can be attained through the
use of human assets as it has the ability to convert other resources such as money, methods,
machine and materials available to a business into output (product and services). Several
scholars have noted that managing people is more difficult than managing technology or
capital, Barney (1991); Lado and Wilson ( 1994). According to Khatri (1999), people are one of
the most important factors providing flexibility and adaptability to organizations. Rundle
(1997), argues that the adaptive mechanism in determining how a firm will respond to the
competitive environment relies on the people and not the firm itself. Thus the effective
management of human resources requires sound Human Resource Management System.
Human Resource Management (HRM) has been conceptualized by many scholars.
Duggan (2011), posits that Human Resource Management is the organizational function that
deals with diverse issues related to employee compensation and benefits, hiring, employee
retention, performance management, organization development, safety/security, wellness,
employee motivation, communication, administration, development and training (though some
of these may be handled by HRD (Human Resource Development) function also.
26
However, Heathfield (2011), opines that Human Resource Management is the organizational
function that deals with issues related to people such as compensation, hiring, performance
management, organization development, safety, wellness, benefits, employee motivation,
communication, administration, and training. She states that HRM is a strategic and
comprehensive approach to managing people and the workplace culture and environment.
Armstrong and Boron (2005), reveal that the ultimate goal of human resource management is
to positively impact organizational performance by providing employment security, training and
effective communication about change. Human Resource professionals help prepare the
organization to achieve its emerging strategic goals by hiring the most qualified and suitable
employees, they aim to improve employee satisfaction rates, lower absenteeism levels and
increase productivity. Human Resource Management is moving away from traditional
personnel, administration, and traditional roles, which are increasingly outsourced. Human
Resource Management is now expected to add value to the strategic utilization of employees
and that employee programs impact the business in measurable ways, Heathfield (2011).
Donnelly, Gibson, and Ivancerich (1992), posit that HRM is a process of accomplishing
organizational objectives by acquiring, retaining, terminating, developing and properly using
the human resources in an organization.
Storey (1995), defines HRM as a distinctive approach to employment management which seeks
to obtain competitive advantage through the deployment of a highly committed and skilled
workforce, using an array of techniques. This is one important area that influences a number of
employee’s attitude and behaviour such as intent to leave, levels of job satisfaction, and
organizational commitment, Lee and Heard (2000). Human Resource Management can help
firms improve organizational behaviour in areas as staff commitment, competency and
flexibility, which in turn leads to improved staff performance, Koch and McGrath (1996).
In order to develop a sound HRM system, the organization should have effective Human
Resource Management practices. Human Resource Management practices refer to
27
organizational activities directed at managing the pool of human resources and ensuring that
the resources are employed towards the fulfillment of organizational goals, Schuler and Jackson
(1987); Schuler and MacMillian (1984); Wright and Snell (1991). Likewise, Minbaeva (2005),
views HRM practices as a set of practices used by organization to manage human resources
through facilitating the development of competencies that are firm specific, produce complex
social relation and generate organization knowledge to sustain competitive advantage. Pfeffer
(1998), buttresses that a soft or high committed HRM practice, is responsible for generating
employees trust. Macky and Boxall, (2007) support this view by suggesting that the scientific
literature assumes a causal link flowing from HRM practices to organizational performance via
the responses of employees. In understanding human resource management practices, it’s
imperative to note that human workforce management practices differ across organization and
country. Various researches have exhibited that HRM practices can be of relevance to a firm’s
performance. Although there are various examples of human resource management practices,
according to Ensher, Nielson and Grant-Valcon (2002) HRM practices include;
Recruitment and Selection
Performance Management
Compensation & Benefits
Training and Development
Career Management
Employee safety, Health & Well-being
Employee Relations & Legal issues
Retention Strategies
Work-life balance
Recruitment and selection: Bratton and Gold (2007), view recruitment and selection practices
as involving two organized processes. Recruitment is the process of making a pool of capable
individuals to apply for employment to a firm while selection is the process by which specific
28
instruments are engaged in choosing from a pool of applicants most suitable for the job taking
into considerations management goals and legal requirements.
Performance Management: Briscoe and Claus (2008), define Performance Management as the
“method through which companies lay down set goals, decide performance benchmark, assign
and assess work performance of employees, provide performance opinion, determine training
and development needs and allocate rewards”. Nevertheless, Performance management is a
means of improving managerial performance by developing the performance of persons and
teams in order to achieve fixed aims and goals.
Compensation and Benefits: According to Armstrong (2006), Employee benefits are elements
of remuneration given in addition to the various forms of cash pay. They also include items that
are not strictly remuneration, such as annual holidays. Benefits can be divided into the
following categories:
Pension schemes: these are generally regarded as the most important employee benefit.
Personal security: these are benefits which enhance the individual’s personal and family
security with regard to illness, health, accident or life insurance.
Financial assistance: loans, house purchase schemes, relocation assistance and discounts on
company goods or services.
Personal needs: entitlements which recognize the interface between work and domestic
needs or responsibilities, eg holidays and other forms of leave, child care, career breaks,
retirement counselling, financial counselling and personal counselling in times of crisis,
fitness and recreational facilities.
Company cars and petrol: still a much appreciated benefit.
Other benefits: which improve the standard of living of employees such as subsidized meals,
clothing allowances, and credit card facilities.
Intangible benefits: characteristics of the organization which contribute to the quality of
working life and make it an attractive and worthwhile place in which to be employed.
29
Training and Development: Ezigbo (2007) posits that Training primarily focuses on teaching
organizational members how to perform their current jobs and helping them acquire the
knowledge and skills they need to be effective performers. While Armstrong (2006) defines
Development as an unfolding process that enables people to progress from a present state of
understanding and capability to a future state in which higher-level skills, knowledge and
competencies are required.
Career Management: This is concerned with providing opportunities for people to progress and
develop their careers and ensuring that the organization has the flow of talent it needs. The
elements of career management are the provision of learning and development opportunities,
career planning and management succession planning, Armstrong (2006).
Employee safety, Health & Well-being: This deals with the services provided by the HR
department in order to help the organization meet its legal and social responsibilities to ensure
a healthy and safe place of work, to help employees cope with their personal problems, to help
elderly and retired employees and, in some cases to make recreational facilities available.
Employee Relations & Legal issues: This consists of all those human resource management that
involve relationships with employees – directly and/or through collective agreements where
trade unions are recognized. Employee relations are concerned with generally managing the
employment relationship, these relationships deal with the agreement of terms and conditions
of employment and with issues arising from employment.
Retention Strategies: These are strategies carried out by the organization in order to retain
talented people, but there are limits to what any organization can do.
Work-life balance: Work Foundation (2003b) defines the concept of work-life balance as
“about employees achieving a satisfactory equilibrium between work and non-work activities
(i.e. parental responsibilities and wider caring duties, as well as other activities and interests)
30
2.2 THE PRACTICE AND CHALLENGES OF HUMAN RESOURCE MANAGEMENT IN NIGERIA
The concept of Human resource management (HRM) was introduced into the Nigerian
literature in 1940 during the colonial era, with industrialization and commercialization, which
later became wage employment, Fajana (2011). Ever since then, there has been a tremendous
growth of HRM in Nigeria, which in recent years has been characterized by lack of
professionalism and specialization. Different reasons have been accounted for, as the
challenges facing HRM practices in Nigeria. Some of which are discussed here. The socio-
cultural diversity of Nigeria has influenced HRM practices in Nigeria. Nigeria is characterized by
over reliance on culture, language, religion, gender and educational qualification as basis for an
average Nigerian to get employed is a factor of the above mentioned variable.
Nigeria is one of the African countries faced by abundant labour and scarce talent. Attracting,
developing, deploying and retaining best talent had become a challenge, Fajana (2009). That is
why Fajana and Ige (2007) argue that the desire for top performance has driven the need for
effective management. Human Resource Management in Nigeria can be said to be still in
infancy and lot of academic research is still required in this area. Lack of indigenous and
comprehensive HRM models is one of the challenges facing HRM practices in Nigeria, which is
why the majority of principles and practices evidence in workplaces in Nigeria are all adopted
from other countries. Human Resource Management practices in Nigeria are convergence with
western-inspired approaches, with the evidences of cultural and institutional influences on it.
That is, there is a blend of transplanted and indigenous HRM practices. The sensitivity to
individual socialization as well as economic, historical, political, and social contexts according to
Azolukwam and Perkins (2009) may enable organizations to capitalize on the potential to
transplant forms of HRM from parent country cultures to developing countries such as Nigeria.
Nevertheless, most organization is characterized by lack of funding for human resources
management research and development. Nigeria’s democracy has enhanced the practices of
HRM in determining the quota of expatriates she permits. Nigeria’s economy allows the
importation of new technologies to enhance HRM, but training is still a bit slow, thus
employment of expatriates to handle such is still encouraged. In Nigeria, there is application of
31
new management techniques and skills used in the running of the organization all aimed at
running a cost effective system. Human Resource Management practices in Nigeria cannot be
totally diffused from what is evidence in other countries. However, due to the peculiarity of
social-cultural characteristic of Nigeria, HRM in Nigeria is an area open for further research.
Several other factors have affected HRM practices in Nigeria namely; lack of the internal
manpower to complete all necessary tasks. Secondly, the complexity of today’s business
climate as a result of deregulation, globalization and technology advancements has outpaced
many companies level for companies to get special projects done without adding employees to
payroll, Olofin and Folawewo (2006). Most Organization in Nigeria now offer a continued
education and training to help its people cultivate the right skills and expand their career within
a truly global and collaborative workplace.
2.3 OVERVIEW OF INFORMATION AND COMMUNICATION TECHNOLOGY
Information and Communication Technology (ICT), is a composite term which embodies three
important concepts which are Information, communication and technology. One needs to
understand these three terms in order to comprehend the term ICT. Information is defined
according to De Walterville and Gilbert (2000), as any potentially useful fact, quantity or value
that can be expressed uniquely with exactness. Information is whatever that is capable of
causing a human mind to change its opinion about the current state of the real world.
Communication refers to the transfer or exchange of information from person to person or
from one place to another. When an action produces a reaction, whether positive or negative,
communication has taken place. Other writers in the field of communication studies have
defined communications as: a process, a transfer of information, ideas, thoughts and messages.
It involves a sender, a receiver, a medium and a language that is understood by both the sender
and the receiver. A process involving the passing of messages through the use of symbols which
all parties in the communication encounter understand. It involves the exchange of ideas facts
32
opinions attitudes and beliefs between people. It is not a one-way affair. There must be a
sender to transmit the message and receiver to make appropriate decisions on how the rest of
the exchange should continue, James (2004).
Finally, technology refers to the ‘use of scientific knowledge to invent tools that assist people
in their efforts to overcome environmental hazards and impediments to comfort’, Womboh and
Abba (2008). In this regard, technology refers to the things like the computer, telephone/GSM,
television, radio, internet etc. Thus, information and communication technology (ICT) and
information technology (IT) are similar concepts that can be used interchangeably. Information
technology implies communication and therefore it becomes obvious that the two terms are
synonymous.
Internet, according to Hargiltai (1999), defines the internet technically and functionally as
follows: “the internet is a worldwide network of computers, but sociologically it is also
important to consider it as a network of people using computers that make vast amounts of
information available. The use of internet has revolutionized access to information for the
business world, libraries, education and individuals. A few of the most popular include E-mail
(electronic mail), World Wide Web (WWW), FTP (File Transfer Protocol) etc. The internet and its
technology continues to have a profound effect in promoting the sharing of information
especially in the business world, making possible rapid transactions among business, and
supporting global collaboration among individuals and organizations.
World Wide Web (WWW) can be described as a literary of resources available to computer
users through the global internets. It enables users to view a wide variety of information
including magazine, archives, public and college library resources and current world and
business news. WWW researchers are organized so that users can easily move from one
resource to another.
Therefore Information and communication technology can be coined to be “acquisition,
analysis, manipulation, storage and distribution of information; and the design and provision of
33
equipment and software for these purposes”, De Watterville and Gilbert (2000). The phrase ICT
is used to describe a range of technologies for gathering, storing, retrieving, processing,
analyzing, and transmitting information. Key components: Input Devices (Keyboard, Scanners
Camera etc), Output Devices (Monitors, Printers, Speakers), Software (Operating System, HRM
Software, Microsoft Office Suite), Terminal (Desktops, Laptops, POS, Mobile Handsets),
Network (Fiber Optical Cables, Routers, Telephone Lines, Wireless). Information and
communications technology is professionally acclaimed terms used in any research work.
2.4 INFORMATION AND COMMUNICATION TECHNOLOGY TOOLS USED IN HUMAN
RESOURCE PRACTICE
The reliance of organizations on ICT has escalated ever since the turn of 21st century and fully
exploiting its use is critically important. According to Hiroki (2003), ICT is one social trend that
emerged in late 20th century. He further suggests that the use and recognition of ICT has aided
in its popularity and diffusion. Internationally the use of ICT represents a global community
where there is no geographical boundary and distance in existence. As Strohmeier (2007),
posits that technology plays a part in HR practice by connecting environmental segregated
participants and enabling an effective interaction between them. Some ICT tools used in HR
practices include; Oracle HR software, SAP software, Microsoft Office application (Word, Excel,
PowerPoint or Outlook), Intranet, Oracle Peoplesoft, EasyCruit, E-recruitment etc.
Oracle HR software: This is an internet-based application that serves as a hub for all
people-related activities including communication, development, and compensation. It
enables one adopt structured approaches to attracting, retaining, developing and using
the critical skills and knowledge needed to optimize the workforce. Oracle HR is part of
the oracle human resource family of applications, and integrates seamlessly with oracle
e-business suit and other human resource applications including advanced benefits and
payroll. It is used to maintain global HR data for better availability and accuracy of
34
information, with a global single repository of employee data. Further, it’s used to
leverage workflow and internet-based processes to speed and optimize recruitment,
hiring, budgeting, compensation, termination, performance, skills, collective agreement
etc.
SAP Software: The creative use of ICT plays an important role in shaping an organization
and an important component within an organization is its communication infrastructure
King (1994). One key function of HRM practices is the ability to communicate with
employees across an organization and is vital to have an access to a medium in which
such function can be carried out effectively and with ease. Thus, SAP system addresses
this need as it links information with active control of business activities within an
organization, Klein (1994). SAP which means “systems, applications, and products in
data processing. This software can help in promoting integration of business activities
across an entire organization, rather than relying on separate systems for each
functional area, which may or may not interface with each other, Soliman (2010).
EasyCruit: This is an e-recruitment tool supplied by Lumesse who describes the product
as a recruitment tool that “automate and simplify the recruitment process. It consist of
a portal integrated on the recruiting companies webpage on which job applicants can
apply to specific positions or send in their CV.
PeopleSoft: This software is made up of modules, such as Human Resource
Management System (HRMS), which includes payroll, all human resources functions and
benefits, financials, manufacturing, student administration, and customer relationship
management. PeopleSoft is a more general business and HR management tool offered
by Oracle and can be customized for the need of the firm.
Intranet: An intranet is a network that is interconnected within one organization, using
Web technologies for sharing information internally. Armstrong (2006) explains an
intranet as an electronic network that enables information to be communicated across
35
organizations. It posts static data such as information on HR policies and
communications about employee facilities such as learning opportunities and flexible
benefits. It can include links that enable managers and other employees to interface
directly with HR applications and make changes or inquiries.
E-recruitment: One area which have had an increasingly growth is e-recruitment which
most fortune 500 businesses have embraced, iLogos Research survey (2002). Its use for
business purposes has been swiftly escalating over the past few years. As stated in the
work of Useem (1999), “The web is the future of recruiting as it’s dramatically an
effective medium ever known”. Recruitment processes is made easier by the internet,
acting as a channel between job seekers and employers, Dineen, Ash and Noe (2002).
Technology has enabled job seekers, corporate websites and suppliers to become more
interactive and connect globally 24/7 (see figure 1).
Figure 1: Landscape of e-recruitment
Source: Institute for Employment Studies (IES), 2003
Recent technological advances enable candidates to create and maintain personal profile on an
organization’s website. Applicants can easily have an access to this profile and will be able to
attach it to available opportunities that are open in the company. This is a beneficial change to
online recruitment since the year 2002, Elkington (2005). The benefits to the candidates include
Line manager
System interface
Candidate record
& tracking
Candidate
Human
resource Agency
36
having their skill-sets easily available to employers and also the fact that their profile is
searchable on a range of criteria. Although the creation and maintenance of profile maybe
tedious and time consuming, serious minded applicants should not be dissuaded in the short-
term. Hirsh (2005), suggest that employers stand a chance of damaging their organizational
brand if candidate’s application is rejected too soon. Thus it’s vital for organizations to integrate
their recruitment systems and human resource in order for new recruits to complete a number
of activities without restriction.
2.5 EFFECT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON SOME KEY HRM
PRACTICES
According to Ensher, Nielson and Grant-Valcone (2002), the effect of ICT on some HRM
practices is as follows;
RECRUITMENT: Recruiting is the HR practice that has arguably been most influenced by the
internet and recent technological advances. More often than not, HR professionals are using
technology and the internet in particular to enhance their recruiting effectiveness. CMA
Management reported that internet usage for recruiting purposes in Global 500 Companies
increased from 29% in 1998 to 88% in 2001. More companies are using the internet for posting
jobs and receiving resumes, which are also being received via e-mail in substantially greater
numbers. Also the use of ICT has significantly reduced both the cost and turnaround time
needed to fill most positions. Finally the quality of applicants has not suffered and in fact, the
internet gives companies access to global talent instead of limiting companies to a local
applicant pool constrained by geography.
SELECTION: Technological advances have provided computer applications to screen resumes
and applicants; however, they seem to be less sophisticated and effective at this time. This
appears to be an area where companies are redirecting the cost savings from using the internet
to attract a broader base applicant. In the book ‘Discovering the Soul of Service’, Berry (1999),
concluded that successful service companies typically exhibit very patient hiring processes to
37
ensure that individuals selected from the applicant pool meet necessary skill requirements but
more importantly, fit with the corporate culture and values of the companies. The three areas
of selection where the most influence of technology is seen are;
Resume scanning applications
On-line testing and assessment tools
Initial interviewing
PERFORMANCE MANAGEMENT: According to HR professionals, technology has helped
primarily in the distribution of performance evaluation materials, by making the appraisal forms
available on-line. An information system (ICT) can help to operate performance management,
generating forms, analysing and reporting on the result of performance reviews showing the
distribution of people with different degrees of potential or performing at different levels,
highlighting individuals with particular skills or special promise, Armstrong (2006).
COMPENSATION & BENEFITS: The number one cost for most organizations is the compensation
and benefits provided by the employer to its employees. Benefits administration has been
radically changed due to the internet (ICT). In fact, this is one of the most obvious differences
about traditional HR and e-HR. In addition, the type of benefits desired and in some cases
expected has also undergone some changes in the past few years. There are also some clear
differences in high-technology companies with highly technical employees. Four critical musts
in these types of organizations are;
An overall compensation plan that is at or above market levels, including stock options,
Quality of life with flexible work time and more vacation time.
Opportunities for personal development and recognition
Performance and skills-based incentives.
One clear theme is that the administration of benefits is now more of a self-service operation
on the company’s web site or intranet.
38
Human Resource explains the benefits options and sets the boundaries, but then the
employees go on-line and complete their contact information, select desired options and make
modifications as needed. The technology has significant implications for freeing up HR
personnel for more value-added activities. General Motors provides a great example of this e-
HR trend with their on-line HR portal called the Employee Service Center.
TRAINING AND DEVELOPMENT: Training and development is an important expenditure for
most organizations. According to a 1998 PricewaterhouseCoopers study, 65 percent of CEOs
cited the lack of skilled workers as a potential barrier to future company growth. As the need
for training and development increases, companies have found that technology and internet
provide a lower cost solution in the guise of on-line training or e-learning. Cost reductions for
on-line training pertain to several major categories of expenditures including:
a. Direct costs of travel, and indirect opportunity costs of time away from job
b. Production of training materials
c. Maintenance costs for content updates and course refreshers.
In addition to cost reduction, on-line training also offers a number of important advantages
such as the ability to help the employee learn faster and in some cases better; deliver learning
free of limitations of time and space; and track and evaluate the effectiveness of the training
more effectively. Helping employee to learn better and faster is a key concern for HR
professionals.
CAREER MANAGEMENT: Information and Communication Technology can help in the
implementation of career management policies and procedures which embrace both career
planning and management development. The system does this by analysing the progression of
individuals and comparing the results of that analysis, first, with assessments of organizational
requirements as generated by the human resource planning models and, second, with the
outputs of the performance management system, Armstrong (2006).
39
2.6 ELECTRONIC HUMAN RESOURCE (e-HR) OR e-HRM
The use of ICT has gotten some attention in Human Resource Management research,
specifically in the last 5 to 10 years under the epithet e-HRM (electronic Human Resource
Management). Strohmeier defines e-HRM as “the application of information technology for
both networking and supporting at least two individual or collective actors in their shared
performing of HR activities”, Strohmeier (2007).
While Bondarouk and Ruel (2009) argue for a broader definition which does not demand the
existence of interaction when defining e-HRM as “an umbrella term covering all possible
integration mechanisms and contents between HRM and Information Technologies aiming at
creating value within and across organizations for targeted employees and management”.
From previous studies we can see that e-HRM can be applied to sub processes of HRM resulting
in concepts such as e-recruiting (most commonly recruitment and job application through a
web-based portal on the company’s’ homepage), e-selection (i.e. web-based tests or video
conferencing as elements in the selection process) and e-learning or e-training and
development (ICT is used for the distribution of learning content or for communication),
Strohmeier (2007).
Electronic HRM is a term that identifies a form of technology that enables HR professionals to
integrate an organization’s human resources strategies and processes in order to improve
overall HR service delivery. Since the mid-1990s organizations have been embracing ways to
incorporate electronic and computer functions into their HR strategies. Companies are always
looking for better ways to manage costs, provide better services, and effectively manage
human capital, and e-HR has become integral to helping organizations achieve these goals.
Table 2.1: Comparison of traditional HR to E-HR, below
40
COMPARISON OF TRADITIONAL HR TO E-HR
Key HR Processes Traditional HR E-HR
Acquiring Human Resources
Recruitment and Selection
Selection
Paper resumes and paper posting
Positions filled in months
Limited by geographical barriers
Costs directed at attraction
Manual review of resumes
Face to face process (FTF)
Electronic resumes & internet postings
Positions filled in weeks or days
Unlimited access to global applicants
Costs directed at selection
Electronic review of resumes(scanning)
Some distance interviewing / FTF
Reward Human Resource
Performance Evaluation
Compensation & Benefits
Supervisor evaluation
Face-to-face appraisal
Time spent on paperwork (benefit
changes)
Emphasis on salary & bonuses
Naive employees
Emphasis on internal equity
Changes made by HR
360-degree evaluation
Appraisal software (on-line & hard-
copy)
Time spent on assessing market salaries
Emphasis on ownership and quality of
life
Knowledgeable employees
Emphasis on external equity
Changes made by employees on-line
Developing Human Resources
Training & Development Standardized class room training Flexible on-line training
41
Career Management
Development process is HR-driven
HR lays out career paths for
employees
Reactive decisions
Personal networking (local area
only)
Development process is employee-
driven
Employees manage their careers with
HR
Proactive planning with technology
Electronic and personal networking
Protecting Human Resources
Employee Safety, Health &
well-being
Employee relations & Legal
issues
Building equipment safety
Physical fatigue
Mostly reactive programs
Limited to job-related stressors
Focus on employee-mgt relations
Stronger union presence
Equal employment opportunity
Task performance monitoring
Ergonomic considerations
Mental fatigue and wellness
Proactive programs to reduce stress
Personal and job-related stressors
Focus on employee-employee relations
Weaker union presence
Intellectual property/data security
Use of technology monitoring
Retaining Human Resources
Retention Strategies
Work-family balance
Not a major focal point
Not a major focal point
The critical HR activity currently
On-line employee opinion surveys
Cultivating an effective company
culture
Mundane tasks done by technology,
freeing time for more interesting work
Development & monitoring of
programs
42
Providing childcare & elder care
Erosion of work-home boundaries
Source: Ensher et al (2002), Tales from hiring line: Effects of the Internet and Technology on
HR Processes. Organizational Dynamics; Vol. 31, No 3, pp 240.
2.7 EFFECTS OF INFORMATION AND COMMUNICATION TECHNOLOGY ON HUMAN RESOURCE
PERFORMANCE
The HRM function in organizations has gained increasing strategic emphasis and the
importance of its alignment HRM and business strategies is well-acknowledged, Agarwal and
Ferratt (1999). Infact, effective HRM is vital in order to be able to meet the market demands
with well-qualified employees at all times, Hustad and Munkvold (2005).
Technology and HR have a broad range of influences upon each other, and HR professionals
should be able to adopt technologies that allow the reengineering of the HR function, be
prepared to support organizational work-design changes caused by technology and be able to
support a proper managerial climate for innovative and knowledge-based organization, Hempel
(2004). These technological advances are being driven primarily by strong demands from HR
professionals for enhancement in speed, effectiveness & cost containment, Buckley, Minette,
Joy and Michaels (2004)
Snell, Stueber and Lepak (2002) observe that HRM can meet the challenge of simultaneously
becoming more strategic, flexible, cost-efficient, and customer-oriented by leveraging
information technology. Many experts forecast that the PC will become the central tool for all
HR professionals, Kovach and Cathcart (1999). Virtual HR is emerging due to the growing
sophistication of IT and increased external structural options, Lepak and Snell (1998). It is
beginning to enable organizations to deliver state-of-the art HR services, and reduced costs
have enabled companies, regardless of the firm size-to purchase HR technologies, Ball (2001).
43
One of the impacts of IT is that it enables the creation of an IT-based workplace, Othman and
Tech (2003), which leads to what should be a manager’s top priority-namely, strategic
competence management, Bergenhengouwen, Horn and Mooijman (1996). Advances in IT hold
the promise of meeting many of the challenges of HRM, such as attracting, retaining, and
motivating employees, meeting the demands for a more strategic HR function, and managing
the “human element” of technological change in the future, Ashbaugh and Miranda (2002).
HRM could support the efforts of technological innovation’s to achieve high performance while
such innovation; itself could serve as an approach to enable the HR function to focus more on
value-added activities in order to realize the full potential of technology and organizational
strategy, Shrivatsava and Shaw (2003). The biggest benefit of using IT in HRM to organizations is
the freeing of HR staff from intermediary roles, thus enabling them to concentrate on strategic
planning in human resource organization and development, Pinsonneault and Kraemer (1993).
Caudron (2003), observes that IT can automate other routine tasks such as payroll processing,
benefits administration, and transactional activities, so that HR professionals are free to focus
on more strategic matters such as boosting productivity.
2.8 BENEFIT OF INFORMATION AND COMMUNICATION TECHNOLOGY
Critical benefits of Information Communication Technology to societies were underlined by
Ogrean, Herciu and Belascu (2010).
GLOBALIZATION: The world is brought together through the use of ICT, they opine that
obstacles such as income, distance and socio cultural issues such as culture have been lessened
by Information Communication Technology, thus individuals, even groups are able to share
ideas, information almost immediately. Through ICT driven globalization, developing societies
have gained a lot from the developed countries technical knowhow, knowledge and expertise
as to enhance their own development.
44
COMMUNICATION: With the use of ICT, communication has been made easier, cheaper and
even more effective. Individuals are able to interact and communicate through multiple options
instantly through electronic mail, social networks or video chats through the internet and other
forms of technology. Information Communication Technology is an effective means for global
communication.
COST EFFECTIVE: Computerization of business processes and streamlining business activities
has been made cheap and cost effective by ICT. Hence, productivity and profits are increased
which in turn reduces laborious working conditions and better remuneration.
MORE TIME: Information Communication Technology has made it possible for businesses to be
on 24 hour services all over the globe. This means that a business can be open anytime
anywhere, making purchases from different countries easier and more suitable. It also means
that you can have your goods delivered right to your doorstep without flexing a single muscle.
CREATION OF NEW JOBS: Probably the leading benefit of information technology is the
creation of new and interesting jobs. Computer programmers, Software developers, Hardware,
Systems analyzers and Web designers are just some of the many new employment
opportunities created with the help of Information Technology.
Also, United Nations Economic and Social Commission for Asia UNESCAP (2010) further broke
down the benefits of Information Communication Technology on socio-economic growth into
the points stated below;
Enhancement of international trade.
Prices of most products and services have been reduced such as Information Technology
based services through the spread of Information Communication Technology.
Professional and private decision making information can be easily assessed.
Greater ability for learning (distant learning).
45
Access to opportunities.
2.9 INFORMATION COMMUNICATION TECHNOLOGY IN SOCIO-ECONOMIC ENVIRONMENT
The usefulness of information communication differs across cultures. Ogrean et al. (2010),
opine that the state of technology in a specific society is directly affected by the level of social
and economic development in that particular society. Thus it can be advocated that Nigeria
which is a developing nation has not adopted Information Communication Technology on a
large scale.
Onyenania and Enakrire (2007), opine that Nigeria which is a growing country lack the overall
technical knowhow and societal information to completely embrace Information
Communication Technology. It’s deduced that a high percentage of the Nigerian population find
it hard to make use of Information Communication Technology, unlike developed countries
such as the USA, UK who have imbibed technology into their cultural system. Ranti and
Uwalomwa (2009), argue along this notion as they posit that Information Communication
Technology as a facilitator for economic and social development is important for societal
growth. Irrespective of this view, many individuals either do not comprehend these
technologies or lack access to it as a result of lack of investment in technology by the society;
hence the economic and social situation of many of these budding countries is in itself a
hindrance, Aleke, Ojiako and Wainwright (2010).
2.10 FACTORS AFFECTING THE EFFECTIVENESS OF INFORMATION COMMUNICATION
TECHNOLOGY IN SOCIETIES
TECHNOLOGICAL DEVELOPMENT: Effectiveness of ICT in a country is determined by the level of
technological development in that society. Aleke et al. (2010), argue along this line as they
believe that the level of technological development in most developing nations is relatively low.
46
This affects not only the quality of Information and Communication Technology systems, but
also the availability of Information Communication Technology systems and services these
budding nations utilize.
Consistent with this view, Nkerewuwem (1998), states that underdeveloped countries with low
level of technological infrastructure such as Nigeria struggle to completely accept Information
Communication Technology services and systems. This issue can be attributed to the over
reliance of Nigeria on technological research carried out in other countries such as South Africa
and China, as well as their low investment in technological development.
EDUCATION: The Western system of education has virtually been adopted by developing
countries. This system grooms individuals from a very young age to a certain level of
competency in terms of Information Communication Technology systems and is imbibed in
Information Technology learning. In accordance with this perspective, Ranti and Uwalomwa
(2009), opine that certain level of education is required to understand and use ICT due to its
complexity, despite it been simplified over the years. Thus individuals may not properly utilize
Information Communication Technology system without the technical knowledge which is
mostly gained through education.
LEVEL OF ECONOMIC DEVELOPMENT: The level of technological development in a country is
often dictated by the economic state of a region; hence countries with lowly structured
background struggle to cultivate the usefulness of Information and Communication Technology,
Adeleye (2010). Ekeanyanwu (2005), describes Nigeria as having what is called “epileptic power
supply” and this can hinder how useful Information Communication Technology services and
systems can be in a country.
47
2.11 AN OVERVIEW OF THE NIGERIAN BANKING SECTOR
The financial institute is more than just an institution that facilitates payment and extends cost.
It encompasses all functions that direct real resources to their ultimate user. It’s the central
nervous system of a market economy and contains a number of separate, yet co-dependent,
components all of which are essential to its effective and efficient functioning, Ajogwu (2013).
The Nigeria banking industry which is regulated by the central Bank of Nigeria is made up of;
deposit money banks referred to as commercial banks, development finance institution and
other financial institution which include; micro-finance banks, finance companies, bureau de
changes, discount houses and primary mortgage institutions. The Nigerian banking sector is
primary regulated by two bodies; the Central Bank of Nigeria (CBN), which has the superior
regulatory power, and then, the Nigerian Deposit Insurance Company (NDIC), and external
auditors (EA). These bodies are used by the government to regulate and supervise the banking
sector (CBN Nd). They are set up through an Act of parliament to regulate and control financial
activities and monitor actors within the Nigerian banking system.
2.12 THEORETICAL FRAMEWORK
This segment of the literature analyses the models and theories on which some components of
this research will be based on.
2.12.1 TECHNOLOGY ACCEPTANCE MODEL (TAM)
The Technology Acceptance Model (TAM) is an information systems theory that models how
users come to accept and use a technology. The model suggests that when users are presented
with a new technology, a number of factors influence their decision about how and when they
will use it, Davis (1989); Davis, Bagozzi and Warshaw (1989), notably:
48
PERCEIVED EASE OF USE
Davis et al (1989), suggest that new technologies are more likely to be accepted by employees
if they perceive that such machinery easy to use and effort free. They believe that equipment
that is difficult and complex for individuals to comprehend and use will be rejected.
PERCEIVED USEFULNESS
Davis et al (1989), opine that if employees believe that the use of a particular technology will
increase their work role and performance, they will be willing to accept it.
2.12.2 RESOURCE-BASED VIEW (RBV) THEORY
Much of the empirical and theoretical works on human resources have been grounded in the
RBV of the firm. This theory maintains that in order to develop a sustainable competitive
advantage, organizations must create their assets in a manner that is valuable, rare, inimitable,
and non-substitutable, Barney (1995). The RBV of a firm is a theoretical paradigm originating in
the field of strategic management. This theory assumes that resources and attributes of a firm
are more important to sustained competitive advantage than industrial structures and
competitors’ actions.
2.13 EMPIRICAL REVIEW
Regrettably empirical studies on the effect of ICT on the performance of Human Resource is still
underdeveloped, existing literature has paid little attention to assessing the above topic of
study. One area receiving little attention in the research on successful IT use is HRM practices,
Othman and Teh (2003). Although after a detailed review of the related literature under study,
the following findings were extracted based on empirical evidence and in line with the study.
Ball (2005), observed that IT has brought a great revolutional change to the Nigeria banking
system, but efficient and effective management of human capital management in this sector of
49
the economy has progressed to an increasingly imperative and complex process. The function
of Human Resources Management department is generally administrative and common to
almost all organisations but to reduce the manual workload of these administrative activities,
banks began to electronically automate many of these processes by developing and introducing
IT- oriented software applications which later led to the development of specialised Human
Resource Management Systems (HRMS). As a result of this development, the use of
information technology in HRM has grown considerably in recent years and there are now
extensive applications across a wide range of HRM activities in the banking sector.
Adewoye (2012), in his paper “The Impact of Information Technology (IT) on Human Resource
Management (HRM): Empirical evidence from Nigeria Banking Sector – Case study of selected
Banks from Lagos State and Oyo State in the South-West Nigeria”. Using the descriptive
statistics, this study seeks to harness the overall and generalized impact of IT on HRM in the
Nigeria Banking Sector by exploring some aspects of HRM that have been affected by IT and the
effect of such adoption on HRM activities through primary data collected with a structured
questionnaire administered to selected Banks in South-West Nigeria. It revealed that IT has
significantly increased the efficiency of HR management activities.
Long (2009), in his research thesis “The impact of information on the HR function
transformation” found that Information technology is expected to improve the performance of
Human Resource Management (HRM) by shifting its focus from administration or personnel
management to strategic HRM. The strategic role of HRM is supposed to add value to the
function, and leads the essence of HR function to transform. The study examined HR function,
HR function transformation and Human Resource Information Technology (HRIT), by
investigating the role of HRIT playing in HR function transformation process, and the
interrelationship between them. In conclusion the research reveals that HRIT not only is
considered to support HR professionals to be strategy partner of business but also boosts a
wide level participation into HR practices.
50
CHAPTER THREE
RESEARCH METHODOLOGY
The chapter explains the various methods and techniques adopted in this study. It encompasses
the overall research plan and design guiding the process of data collection and the range of
approaches used in research to collect data. This forms the basis for inference, interpretation,
explanations and predictions. It embraces those techniques associated with the scientific model
such as soliciting responses to predetermined questions. It embodies a comprehensive analysis
of the research design, population of the study, sampling, data resource and collection,
statistical tools employed for analysis.
3.1 RESEARCH DESIGN
The study is survey research design oriented. It is designed in a way that population covers the
entire staff of the banks under study and especially those in the HR department. Samples were
randomly selected from this population.
Four hypotheses are formulated in line with the objectives stated.
Questionnaire is used as the research instrument for data collection.
3.2 SOURCES OF DATA
The data for this study were obtained from two principal sources; Primary and Secondary
sources. Primary sources were chosen because of the originality of information and Secondary
sources, because of its vast store of data.
51
3.2.1 SECONDARY DATA
The secondary data used in carrying out this research was obtained from existing data and
sources. Thus secondary data according to Saunders (2007), is an arranged and collected data
which is already available. Textbooks, journals, periodicals and empirical research are the
existing data used in conducting an extensive literature review for this research. Also, some of
the data used was obtained from Diamond Bank Plc and Guaranty Trust Bank Plc website.
3.2.2 PRIMARY DATA
Primary sources involve carrying out an original investigation to obtain data primarily and
specifically for the purpose of the study. The researcher used questionnaire and oral interview.
3.3 POPULATION OF STUDY
The population consists of two (2) banks in Enugu State Nigeria. The banks are:
Diamond Bank Plc
Guaranty Trust Bank Plc
3.4 SAMPLING
The population that makes up the hub of a research is referred to as sampling. Hence, for the
purpose of this study the population covers the entire staff of the banks under study and
especially those in the HR department. Simple random sampling technique was employed in
selecting 60 respondents from this population pool. A well-structured questionnaire is used as
the survey instrument for gathering the required primary data from the selected sample.
52
3.5 RESEARCH INSTRUMENTATION AND ADMINISTRATION
A structured questionnaire titled the effect of Information and Communications Technology
(ICT) on the performance of Human Resource (HR) in selected banks in Enugu State, Nigeria was
used to gather information from the subjects. The instruments consist of two sections A and B.
Section A sought data on the demographic characteristics of the respondents as regard their
sex, marital status, name of bank, educational qualification, age, and length of service. Section
B requested data on factors that determine the effect of Information and Communications
Technology (ICT) on the performance of Human Resource (HR) within the bank. Twenty
structured items rated on 5 point Likert attitudinal rating scale of strongly agree (SA) agree (A)
strongly disagree (SD) disagree (D) and undecided (UND) was used
Thus:
Strongly Agree
Agree
Strongly Disagree
Disagree
Undecided
The respondents were required to tick each item in the appropriate column that mostly
represents their opinion based on their degree of agreement or disagreement with the
statement.
3.6 DATA COLLECTION
The questionnaire was administered personally by the researcher to the employees of the
selected banks. Before the administration of the questionnaire, the objectives of the research
work were clearly explained to the subject. A total of 60 copies of the questionnaire were
53
administered in the frame selected banks. The respondents were given 2weeks to complete the
questionnaire after which they were collected.
3.7 DATA ANALYSIS TECHNIQUES
The research questions will be assumed using percentages after construction of contingency
table for the items with regard to the research questions, mean items are used to analyze the
data while Pearson Product Moment Correlation Statistics will be used to test hypotheses.
The formula of Pearson Product Correlation Coefficient is shown below:
��� =�∑�� − (∑�)(∑�)
�[�∑�� − (∑�)�][�∑�� − (∑�)�]
where r = Correlation Coefficient
x = variable
y = variable
n = the number of observations
= summation
Decision rule
Pearson product moment coefficient
However, for our guide, Oyesiku (2005), has come up with what he regarded as rough ideal
equivalents as follows.
Where r>0.70 very strong relationship
0.50≤r<0.70 strong relationship
0.20≤r<0.50 moderate relationship
0.10≤r<0.20 weak relationship
r<0.10 no or negative relationship
54
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
The questionnaire was distributed to the staff of the commercial banks; Diamond bank plc and
Guaranty trust bank plc. Therefore, a total of sixty copies of the questionnaire were distributed
to the selected commercial banks under study, a total of 54 copies were returned completed.
Four copies were invalidated for various reasons of authentication and incomplete information,
now left with 50 copies response rate.
4.1 ANALYSIS OF THE QUESTIONNAIRE
Table 4.1 Age Distribution of the Respondents
Age No of respondent Percentage
20 – 30 16 32
31 – 40 25 50
41 – above 9 18
Total 50 100
Source: Field Survey 2014
From the table 4.1, 32% of the respondents fall between the Ages 20 – 30, also 50% fall
between the ages of 31 – 40, while the remaining 18% respondents was above 40 years. This
shows that respondents within the ages of 31 – 40, have the largest percentage.
55
Table 4.2 Marital Status of the Respondents
Marital Status No of Respondent Percentage
Single 22 44
Married 28 56
Others _ _
Total 50 100
Source: Field Survey 2014
Table 4.2; shows the marital status of the staff of the selected commercial banks. It shows that
56% of the employees were married while the remaining 44% were single.
Table 4.3 Sex Distribution of the Respondents
Sex No of Respondent Percentage
Male 16 32
Female 34 68
Total 50 100
Source: Field Survey 2014
Table 4.3; shows the sex of the respondents, 68% were female while 32% were male.
56
Table 4.4 Educational Qualification of the Respondents
Educational Qualification No of Respondent Percentage
OND 17 34
HND/BA/B.Sc 25 50
MA/M.Sc/MBA 5 10
Others 3 6
Total 50 100
Source: Field Survey 2014
Table 4.4, shows the educational qualification of the respondents, 34% were OND holders, 50%
were HND/BA/B.Sc holders, 10% were MA/M.Sc/MBA holders while 6% were professional
certificate holders such as CIPM, NIM.
Table 4.5 Respondent’s Length of Service.
Years of Service No of Respondent Percentage
1 – 10 43 86
11 – 20 7 14
21 – 30 _ _
31 – above _ _
Total 50 100
Source: Field Survey 2014
57
Table 4.5, shows that 86% of the staff of the selected commercial banks has the length of
service of 1 – 10 years, while the remaining 14% have put in 11 – 20 years of service.
PART B OF THE QUESTIONNAIRE
The responses were marked as follows
= SD = Strongly Disagree
= D = Disagree
= UND = Undecided
= SA = Strongly Agree
= A = Agree
ANALYSIS FROM THE QUESTIONNAIRE
Table 4.6: Descriptive statistics on the effect of Information and Communications Technology
on the performance of Human Resource (N=50)
Variables SD D UND A SA Mean
Respondents 1 2 0 3 4 Statistics
1 50 0 0 0 15 35 3.70
2 50 0 0 0 10 40 3.80
3 50 0 0 1 38 11 3.16
4 50 0 0 8 21 21 2.94
5 50 0 0 0 28 22 3.44
6 50 0 0 0 39 11 3.22
7 50 0 0 0 12 38 3.76
8 50 0 2 0 21 27 3.50
9 50 0 1 0 8 41 3.80
58
10 50 0 0 0 28 22 3.44
11 50 0 2 0 36 12 3.20
12 50 0 0 5 37 8 2.86
13 50 0 5 10 30 5 2.40
14 50 0 0 0 13 37 3.74
15 50 0 0 0 19 31 3.62
16 50 0 0 0 4 46 3.92
17 50 0 10 4 28 8 2.72
18 50 0 0 0 23 27 3.54
19 50 0 0 0 26 24 3.46
20 50 0 0 1 7 42 3.78
4.2 TEST OF HYPOTHESES
Hypothesis may be defined as a tentative statement made in order to draw out a relationship
between two or more variable.
Having given a careful analysis of response, the hypothesis earlier formulated in chapter one of
this study is now tested. The hypothesis will help the researcher in arriving at reasonable
conclusion.
In testing the hypothesis, we employed the Pearson product moment coefficient or correlation
to test the strength of association.
DECISION RULE: Pearson product moment coefficient, however for our guide, Oyesiku (2005),
has come up with what he regarded as rough ideal equivalents as follows.
59
Where r>0.70 very strong relationship
0.50≤r<0.70 strong relationship
0.20≤r<0.50 moderate relationship
0.10≤r<0.20 weak relationship
r<0.10 no or negative relationship
HYPOTHESIS ONE
H0: ICT have a weak and no significant effect on HR performance within the bank.
H1: ICT have a strong positive and significant effect on HR performance within the bank.
ICT (X) HR performance
(Y)
XY X2 Y2
Strongly disagree 0 0 0 0 0
Disagree 0 0 0 0 0
Un-decided 1 0 0 1 0
Agree 38 28 1,064 1,444 787
Strongly agree 11 22 242 121 484
Total 50 50 1,306 1,566 1,268
��� =�∑�� − (∑�)(∑�)
�[�∑�� − (∑�)�][�∑�� − (∑�)�]
��� =5(1,306) − (50)(50)
�[5(1,566) − (50)�][5(1,268) − (50)�]
��� =6,530 − 2,500
�[7,830 − 2,500][6,340 − 2, 500]
� =4,030
�[5,330][3,840]
60
� =4,030
√20,467200
� =4,030
4,524.0
r = 0.89
DECISION: Since the result (r = 0.89) shows a very strong effect of ICT on HR performance. This
shows that ICT has a very strong effect on HR performance within the banking sector, therefore
according to our decision rule, we accept the alternative hypothesis (H1) and reject the null
hypothesis (Ho)
HYPOTHESIS TWO
H0: ICT tools are not positively correlated to HR functions within the bank.
H1: ICT tools are positively correlated to HR functions within the bank.
ICT tools
(X)
HR functions (Y) XY X2 Y2
Strongly disagree 0 0 0 0 0
Disagree 2 1 2 4 1
Un-decided 0 0 0 0 0
Agree 21 8 168 441 64
Strongly agree 27 41 1,107 729 1,681
Total 50 50 1,277 1,174 1,746
��� =�∑�� − (∑�)(∑�)
�[�∑�� − (∑�)�][�∑�� − (∑�)�]
61
��� =5(1,277) − (50)(50)
�[5(1,174) − (50)�][5(1,746) − (50)�]
��� =6,385 − 2,500
�[5,870 − 2,500][8,730 − 2, 500]
� =3,885
�[3,370][6,230]
� =3,885
�20,995,100
� =3,885
4,582
r = 0.84
DECISION: The result (r = 0.84) shows a very strong positive correlation between ICT tools and
HR function, therefore according to our decision rule, we accept the alternative hypothesis (H1)
and reject the null hypothesis (Ho)
HYPOTHESIS THREE
H0: There is no significant relationship between ICT and improving/providing solutions to
specific problems of HR practices within the bank.
H1: There is significant relationship between ICT and improving/providing solutions to specific
problems of HR practices within the bank.
62
ICT (X) Improvement of HR
practices (Y)
XY X2 Y2
Strongly disagree 0 0 0 0 0
Disagree 0 0 0 0 0
Un-decided 5 0 0 25 0
Agree 37 19 703 1,369 361
Strongly agree 8 31 248 64 961
Total 50 50 951 1,458 1,322
��� =� ∑�� − (∑�)(∑�)
�[�∑�� − (∑�)�][�∑�� − (∑�)�]
��� =5(951) − (50)(50)
�[5(1,458) − (50)�][5(1,322) − (50)�]
��� =4,755 − 2,500
�[7,290 − 2,500][6,610 − 2, 500]
� =2,255
�[4,790][4,110]
� =2,255
√19,686,900
� =2,255
4,436.99
r = 0.51
DECISION: The result (r = 0.51) shows a significant relationship. This shows that ICT can be used
to improve or provide solutions to specific problems of HR practices within the bank, therefore
63
according to our decision rule, we accept the alternative hypothesis (H1) and reject the null
hypothesis (Ho)
HYPOTHESIS FOUR
H0: There is no significant relationship between ICT and Socio-economic factors that determine
its effectiveness on HR practices within the bank.
H1: There is significant relationship between ICT and Socio-economic factors that determine its
effectiveness on HR practices within the bank.
ICT (X) Socio-economic
factors (Y)
XY X2 Y2
Strongly disagree 0 0 0 0 0
Disagree 0 0 0 0 0
Un-decided 0 1 0 0 1
Agree 23 7 161 529 49
Strongly agree 27 42 1,134 729 1,764
Total 50 50 1,295 1,258 1,814
��� =�∑�� − (∑�)(∑�)
�[�∑�� − (∑�)�][�∑�� − (∑�)�]
��� =5(1,295) − (50)(50)
�[5(1,258) − (50)�][5(1,814) − (50)�]
��� =6,475 − 2,500
�[6,290 − 2,500][9,070 − 2, 500]
� =3,975
�[3,790][6,570]
64
� =3,975
√24,900,300
� =3,975
4,990
r = 0.79
DECISION: The result (r = 0.79) shows a significant relationship. This shows that socio-economic
factors such as (level of education, economic development, and technological development),
determine the effectiveness of ICT on HR practices within the bank. Therefore according to our
decision rule, we accept the alternative hypothesis (H1) and reject the null hypothesis (H0)
4.3 DISCUSSION OF RESULTS
The discussion of results was addressed along with the objectives of the study as a pathfinder.
The researcher focused on relating the findings of the study to prior research findings as shown
in the literature review. Each objective of the study has a statement of hypothesis formulated.
The hypothesis formulated had been subjected to statistical test using Pearson product
moment correlation coefficient to measure the strength of association between variables. The
level of significance of 0.05 degree of freedom was used. The respective decision rules guided
the interpretation of the result. Both the null (H0) and the alternative (H1) hypothesis were
stated for easy referencing.
4.4 THE FIRST OBJECTIVE
To determine the effect of ICT on HR performance within the bank.
Many researches have been undertaken in the past to study the changing role of HR
function/practices. HR professionals are rather involved in complete transformation of HR
65
processes with the use of latest technology. The use of ICT in HR is likely to reduce cost, achieve
effectiveness, improve HR practices and HR performance.
This strongly sustained the desire to investigate the effect of ICT on HR performance within the
bank. Some of the key questions that will help in the investigation were incorporated in the
research questionnaire.
Highlighted in table 4.6, numbers 3 and 5 questionnaire responses were used. That rate of
responses posted in each of the questions gave further credence to our conclusion as follows:
ICT have a very strong positive effect on HR performance within the bank. 0% strongly disagree,
0% disagree, 2% were undecided, 76% agreed and 22% strongly agreed.
HR performance within your bank has greatly improved and has impacted greatly on your
bank’s profitability. Strongly disagree 0%, Disagree 0%, undecided 0%, Agree 56%, Strongly
agree 44%. These observations have revealed a strong positive and significant effect of ICT on
HR performance within the selected banks. To further buttress the above conclusion, the
formulated hypothesis associated with the objective was tested.
H0: ICT have a weak and no significant effect on HR performance within the bank.
H1: ICT have a strong positive and significant effect on HR performance within the bank.
The assumption guiding this hypothesis is that, there is a strong positive and significant effect of
ICT on HR performance within the bank. As a measure of strength of association, Pearson
product moment correlation coefficient was employed to test the hypothesis. The level of
significance of 0.05 degree of freedom was used. The decision rule is when r>0.70: very strong
positive relationship or effect. 0.50≤r<0.70: strong positive relationship or effect. 0.20≤r<0.50:
moderate relationship or effect. 0.10≤r<0.20: weak effect or relationship. r<0.10: no or negative
relationship or effect.
The calculated value of r = 0.89, that is r>0.70 which shows a very strong positive and significant
effect. We therefore accept the alternative hypothesis (H1) and reject the null hypothesis (Ho).
We concluded that there is a very strong positive and significant effect of ICT on HR
66
performance within the selected Nigerian banks. This finding has been found to be consistent
with the conclusion of Ball (2005), who argues that information communication technology has
greatly developed the Nigerian banking system, irrespective of this, effective and efficient
management of human capital management in this area of the economy has advanced to an
increasingly complex and important process. The banking industry began to electronically
automate many HRM department functions, which are generally administrative activities by
developing and introducing Information Technology oriented software application which later
led to the development of specialized human resource management systems (HRMS). As a
result of this development, the use of Information communication technology in Human
resource management practices has developed significantly in recent years and there are now
widespread applications across an extensive range of HRM practices in the banking sector.
Our findings further confirms the conclusion of Snell, Stueber and Lepak (2002), they found
that HRM can meet the challenge of simultaneously becoming more strategic, flexible, cost-
efficient, and customer-oriented by leveraging information technology.
Our finding also agrees with Shrivatsava and Shaw (2003), who found that HRM could support
the efforts of technological innovation’s to achieve high performance while such innovation;
itself could serve as an approach to enable the HR function to focus more on value-added
activities in order to realize the full potential of technology and organizational strategy.
Also our finding agrees with Adewuyi (2011), who argues that the adoption of ICT has
influenced the content and quality of banking operations. From all indications, ICT presents
great potential for business re-engineering of Nigerian banks. Thus, investment in ICT should
form an important component in the overall strategy of the banking operation to ensure
effective performance.
67
4.5 THE SECOND OBJECTIVE
To ascertain the extent of correlation between ICT tools and HR functions within the bank.
To further test the validity, credibility and suitability of our results, we used numbers 8 and 9
responses in tables 4.6. To confirm the consistency of the response observed, the rate of
responses posted in each question gave further credence to our conclusion as follows:
ICT tools such as Oracle HR, EasyCruit, PeopleSoft, Microsoft office, web portals, and intranet
has a very strong positive correlation with HR functions within my bank. Strongly disagree 0%,
disagree had 4%, undecided 0%, Agree 42% and strongly agree 54%.
Carrying out HR functions in my bank has become easier, faster and cost effective as a result of
the use of ICT tools. Strongly disagree 0%, disagree had 2%, undecided 0%, Agree 16% and
strongly agree 82%.
To further buttress the above conclusion, the formulated hypothesis associated with the
objective was tested.
H0: ICT tools are not positively correlated to HR functions within the bank.
H1: ICT tools are positively correlated to HR functions within the bank.
This hypothesis is based on the assumption that ICT tools are positively correlated to HR
functions within the bank. In order to measure the strength of their association, Pearson’s
product moment coefficient was employed to test the hypothesis. Using 0.05% significance the
decision rule is when r>0.70: very strong positive correlation. 0.50≤r<0.70: strong positive
correlation. 0.20≤r<0.50: moderate correlation. 0.10≤r<0.20: weak correlation. r<0.10: no or
negative correlation.
The calculated value of r = 0.84 that is r>0.70 shows a very strong positive correlation. Since the
calculated value is r>0.70, we therefore accept the alternative hypothesis (H1) and reject the
null hypothesis (Ho). We would conclude that ICT tools have a very strong positive correlation to
HR functions within the bank.
68
The finding is in line with the studies reported by Watson Wyatt Worldwide (2002) and Towers
(2001) who respectively found that more than 90% and 75% of HR departments operate with
some form of computerized Human Resource Information System (HRIS).
The finding is also in agreement with the conclusion of Mishra and Akman (2010), they posit
through their study that Information Technology has significant impact on all sectors in terms of
HRM to certain extent.
Our findings further confirms the conclusion of Iraz and Yildirim (2004) that various HR
functions of HR can be effectively managed through the use of computers and Information
Technology tools in the banking sector.
4.6 THE THIRD OBJECTIVE
To rationalize the use of ICT for improving and providing solutions to specific problems of HR
practices within the bank.
In discussing the findings of the second objective, we concluded that ICT tools has a very strong
positive correlation to HR functions within the bank. It is therefore expedient to rationalize the
use of ICT for improving and providing solutions to specific problems of HR practices within the
bank. Numbers 12 and 15 responses of questionnaire in table 4.6 are used.
There is significant relationship between ICT and improving/providing solutions to specific
problems of HR practices within the bank. Strongly disagree, disagree had 0% while undecided
had 10%, Agree 74% and strongly agree 16%.
HR practices such as recruitment and selection, training and development, performance
appraisal, career management etc has greatly improved as result of the use of ICT. Strongly
disagree, disagree and undecided had 0% while agree 38%, strongly agree 62%.
To further buttress the above conclusion, the formulated hypothesis associated with the
objective was tested.
69
H0: There is no significant relationship between ICT and improving/providing solutions to
specific problems of HR practices within the bank.
H1: There is significant relationship between ICT and improving/providing solutions to specific
problems of HR practices within the bank.
The assumption guiding this hypothesis is that there is significant relationship between ICT and
improving HR practices. To test the hypothesis, responses in the questionnaire numbers 12 and
15 in table 4.6 was used. As a measure of the strength of the association, Pearson product
moment correlation co-efficient was employed to test the hypothesis. The level of significance
of 0.05 degree of freedom was used. Decision rule is when r>0.70: very strong positive
relationship. 0.50≤r<0.70: strong positive relationship. 0.20≤r<0.50: moderate relationship.
0.10≤r<0.20: weak relationship. r<0.10: no or negative relationship.
The calculated value of r = 0.51 that is 0.50≤r<0.70 shows a strong positive and significant
relationship. Since the calculated value is r = 0.51, we therefore reject the null hypothesis (Ho)
and accept the alternative hypothesis (H1). We would conclude that ICT can be used to improve
or provide solutions to specific problems of HR practices within the bank.
The findings are in agreement with the conclusion of Ashbaugh and Miranda (2002) that
advances in IT hold the promise of meeting many of the challenges of HRM, such as attracting,
retaining, and motivating employees, meeting the demands for a more strategic HR function,
and managing the “human element” of technological change in the future.
This finding is also in agreement with the conclusion of Wang, Olsen, Sorbring and Stegberg
(2010), they see the banking industry as a forerunner in facilitating and implementing ICT to
promote business growth and improve their human resource.
70
4.6 THE FOURTH OBJECTIVE
To identify the factors that influences the effectiveness of ICT on HRM practices within the
bank.
In discussing the findings of the third objective, we concluded that there is significant
relationship between ICT and improving HR practices within the bank. It is therefore, imperative
to identify the factors that influence the effectiveness of ICT on HRM practices within the bank.
For further test of the validity and suitability of our results, response from the questionnaire
numbers 18 and 20 in table 4.6 was used. Each of the questions posted the following rate of
response.
Socio-economic factors such as level of education, economic development, and technological
development determine the effectiveness of ICT on HRM practices. Strongly disagree, disagree
and undecided had 0% while agree 46%, strongly agree 54%.
There is a significant relationship between ICT and Socio-economic factors that determine its
effectiveness on HR practices within the bank. Strongly disagree, disagree had 0%, undecided
had 2% while agree 14%, strongly agree 84%.
To further buttress the above conclusion, the formulated hypothesis associated with the
objective was tested.
H0: There is no significant relationship between ICT and Socio-economic factors that determine
its effectiveness on HR practices within the bank.
H1: There is significant relationship between ICT and Socio-economic factors that determine its
effectiveness on HR practices within the bank.
The assumption guiding this hypothesis is that there is significant relationship between ICT and
socio-economic factors because they determine the effectiveness of ICT on HR practices.
71
To test the hypothesis, responses in the questionnaire numbers 18 and 20 in table 4.6 was
used. As a measure of the strength of the association, Pearson product moment correlation co-
efficient was employed to test the hypothesis. The level of significance of 0.05 degree of
freedom was used. Decision rule is when r>0.70: very strong positive relationship. 0.50≤r<0.70:
strong positive relationship. 0.20≤r<0.50: moderate relationship. 0.10≤r<0.20: weak
relationship. r<0.10: no or negative relationship.
The calculated value of r = 0.79 which shows a significant relationship. This shows that socio-
economic factors such as (level of education, economic development, and technological
development), determine the effectiveness of ICT on HR practices within the bank. Therefore
according to our decision rule, we accept the alternative hypothesis (H1) and reject the null
hypothesis (H0).
The findings are in agreement with the observation of Dauda and Akingbade (2011), that the
application of ICT requires high degree of knowledge, expertise and skills by all categories of
employees. Ranti and Uwalomwa (2009), opine that certain level of education is required to
understand and use ICT due to its complexity.
Effectiveness of ICT in a country is determined by the level of technological development in that
society. Therefore the findings are in agreement with the conclusion of Aleke et al. (2010), who
argue that the level of technological development in most developing nations is relatively low.
This affects not only the quality of Information Communication Technology systems, but also
the availability of Information Communication Technology systems and services.
The findings are also in agreement with the conclusion of Adeleye (2010), that the level of
technological development in a country is often dictated by the economic state of a region;
hence countries with lowly structured background struggle to cultivate the usefulness of
Information & Communication Technology. Ekeanyanwu (2005), describes Nigeria as having
what is called “epileptic power supply” and this can hinder how useful Information
Communication Technology services and systems can be in a country.
72
Also Kasper and Mayerhofer (2005), assert that constant electric power outages in Least
Developed Countries pose serious threat to the survival of HRM. These power outages last for
many hours or days and have become a common occurrence in almost all organizations of Least
Developed Countries.
73
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 SUMMARY OF MAJOR FINDINGS
The findings of the study provided empirical evidence on the effect of Information and
Communication Technology on the performance of Human Resource in selected commercial
banks in Enugu State, Nigeria.
The following are the major findings of the study:
Information and Communication Technology had a very strong positive and significant
effect on HR performance within the selected commercial banks.
Information and Communication Technology tools had a very strong positive correlation
with HR functions within the selected commercial banks.
There was a significant relationship between ICT and improving/providing solutions to
specific problems of HR practices within the selected commercial banks.
There was a significant relationship between ICT and Socio-economic factors that
determine the effectiveness of ICT on HR practices within the selected commercial
banks.
5.2 RECOMMENDATIONS
Based on the findings of this study the following recommendations are marshaled out.
One of the findings of the study empirically showed, that ICT had a very strong positive
and significant effect on HR performance within the selected commercial banks. This
finding underscores the need for banks to invest more on ICT tools and to ensure that
74
the HR department are well equipped with the necessary ICT tools for increased HR
performance.
Banks that apply Information and Communications Technology to their operations are
likely to survive and prosper in this era, therefore banks should always re-examine their
service and HR department to properly position themselves within the framework of
Information and Communications Technology.
Organizations especially the bank should keep their ICT tools up-to-date for efficient and
effective carrying out of HR functions.
It’s imperative that banks should endeavour to recruit and train qualified staff if they are
looking to employ ICT services and tools to promote their HRM practices as this will
enable their employees to be extremely competent in operating their Information
Communication Technology tools and services. It is important to note that some of the
staff of Diamond and Guaranty trust bank were not conversant in the use of ICT base
services, thus through effective training, they could become competent.
Also, it’s vital for banks to recognize key challenges that hinder responsiveness to the
use of ICT for HR functions. Been informed of these factors will help banks understand
that ICT is not just about technology but it’s about organisational transformation. Thus
noted challenges can be approached and countered to ensure organisational
transformation.
Government should look into the “epileptic power supply” situation of the country and
try to solve it because these ICT tools require constant electric power supply.
75
5.3 CONCLUSION
The study has particularly provided empirical evidence that indeed the adoption of ICT in the
Nigerian banking sector and especially in its HR department, going by what the analyzed data
collected from the banks selected have revealed, has largely impacted HRM activities in the
Nigerian Banking Sector. Therefore we can conclude that ICT has a positive and significant
effect on the performance of HR in the selected Commercial Banks, although there are some
challenges which these banks face that hinders the effectiveness of ICT on HR practices, which
are level of education, economic development, and technological development. It was
observed that some of the staff of the selected banks was not fully competent with the use of
ICT tools, therefore the banks need to make available appropriate training to enable these staff
get conversant with the use of ICT tools. Also the government should look into the “epileptic
power supply” of the country, because ICT tools require constant electric power supply.
5.4 CONTRIBUTION TO KNOWLEDGE
It is an established fact that this study has highlighted and revealed the nature of effect of
Information and Communication Technology on the performance of Human Resource in
Nigerian Banking Sector. This study has brought to the fore the nature of effects and
relationships of ICT on HR performance, HR functions/practices, and the socio-economic factors
that affect its effectiveness on HR practices as well as the response of employees of the
selected Commercial Banks in Enugu State, Nigeria thereby contributing to the existing body of
knowledge.
5.5 SUGGESTED AREA FOR FURTHER STUDIES
Future empirical studies should examine the effect or impact of ICT usage on the performance
of HR in different organizations in other parts of the world and not restricting it to the Nigerian
76
Banking Sector, in order to make a comprehensive assessment. Furthermore, in Nigeria this
study could also be conducted with more breadth and depth in terms of HRM functions and ICT
tools.
77
BIBLIOGRAPHY
Adewoye, J. O. (2012). ‘The Impact of Information Technology (IT) on Human Resource
Management (HRM): Empirical evidence from Nigeria Banking sector – Case Study of
Selected Banks form Lagos State and Oyo State in South-West Nigeria’. European
Journal of Business and Management, 4(6).
Adewuyi, I. D. (2011). ‘Electronic Banking in Nigeria: Challenges of the Regulatory Authorities
and the way forward’. International journal of Economic Development Research and
Investment, 2(1), 149-156.
Agarwal, R. and Ferratt, T.W. (1999) Crafting an HR strategy to meet the need for IT workers.
Communications of the ACM, 44(7), 58-64; Lengnick-Hall, M.L. and S. Moritz (2003). The
Impact of E-HR on the Human Resource Management Function. Journal of Labor
Research, 24(3), 365-379.
Ajogwu, F.S. (2013). ‘Corporate Governance and Ethical Business Dealings in Nigeria: The
imperatives. ’ Business day.
Aleke, B., Ojiako, U., and Wainwright, D. W. (2010). ‘Information and Communication
Technology adoption in developing countries: perspectives from small-scale
agribusinesses.’ Journal of Enterprise Information Management, 24(1), 68-84.
Argenti, P. A. (1998). ‘Strategic employee communications.’ Human Resource Management, 37
(3-4), 199-206.
Armstrong M. (2006). A Handbook of Human Resource Management (10th edition), U.K,
Kongan Page Limited.
Armstrong and Boron (2005). Organisational Behaviour , Lagos, Longman Nigeria Plc.
Ashbaugh, S. and Miranda, R. (2002). Technology for Human Resource Management: Seven
questions and answers. Public Personnel Management, 31(1), 7-20.
Azolukwam, V. A. and Perkins, S. J. (2009). ‘Managerial perspectives on HRM in Nigeria:
evolving hybridization?’ Cross Cultural Management: An International Journal, 16(1), 62-
82.
Ball, K.S. (2005). The use of human resource systems: a survey. Personnel Review, 30(6), 677-93.
Barber, L., Hill, D., Hirsh, W. and Tyers, C. (2005). ‘Fishing For Talent In A Wider Pool: Trends and
78
Dilemmas in Corporate Graduate Recruitment’. IES Report 421.
Barney, J. (1991). ‘Firm resources and sustained competitive advantage.’ Journal of
management, 17(1), 99-120.
Bergenhenegouwen, G.J., Horn, H.F.K. and Mooijman, E.A.M. (1996). Competence
Development- A Challenge for HRM professionals: Core competencies of organizations
as guidelines for the development of employees. Journal of European Industrial
Training, 20(9), 29-35.
Berry, L. (1999), ‘Discovering the Soul of Service. New York. Free Press, 1999.
Bondarouk, T. V. and Ruel H. J. M. (2009). Introduction. Electronic Human Resource
Management: challenges in the digital era. The International Journal of Human Resource
Management, 20 (3), 505-14.
Bratton, J. and Gold, J. (2003). Human resource management: theory and practice. Basingstoke:
Palgrave Macmillan, Vol. 175
Broderick, R. and Boudreau, J.W. (2001). ‘Human resource management, information
technology and the competitive advantage.’ Academy of Management Executive, 6 (2),
7-17.
Buckley P., Minette, K., Joy, D., and Michaels, J. (2004). The use of an automated employment
recruiting and screening system for temporary professional employees: A case study.
Human Resource Management, Issue 2-3, 233-241.
Caudron C. (2003). Counting heads and hiring, firing and managing them too. PROFIT Oracle’s e-
business magazine, February, 79-80.
Central Bank of Nigeria/History. http://www.cenbank.org/AboutCBN/history. Retrieved July 14,
2014.
Dauda Y. A. and Akingbade W. A. (2011). Technology innovation and Nigeria banks
performance: The assessment of employee’s and customer’s responses. American
Journal of Social and Management Sciences, 2(3), 329-340.
David, (2006). ‘Human resource management, information technology and the competitive
advantage.’
79
Davis, F. (1989). Perceived usefulness, perceived ease of use and user acceptance of
information technology. MIS Quarterly 13 (3), 319-40.
Davis F., Bagozzi R., and Warshaw P. R (1989). User acceptance of Computer technology: a
comparison of two theoretical models. Management Science, 35(8), 982-1003.
De Watteville, A., and Gilbert, L. (2000). ‘Advanced information and communication
technology.’ Heinemann.
Dineen, B. R., Ash, S. R. and Noe, R.A. (2002). ‘A Web of Applicants Attraction: Person-
Organisation Fit in the Context of Web-Based Recruitment.’ Journal of Applied
Psychology, 87(4), 723-734.
Donnelly, J. H., Gibson, J. L., and Ivancerich J. M., (1992). Fundamentals of Management (8th
edition) U.S.A. Von Hottman press Inc.
Doran, A. (2003). ‘The ties that bind HR and IS.’ HR professional.
Elkington, T. (2005). ‘Bright future for online recruitment.’ Personnel Today, 1.
Ensher, E. A., Nielson, T. R. and Grant-Valcone E. (2002). ‘Tales from the hiring line: Effects of
the Internet and Technology on HR Processes’. Organizational dynamics 2002, 31(3)
224-244. www.organizational-dynamics.com
Ezigbo, C. A. (2011). Advanced Management Theory and Application (3rd edition). Immaculate
Publications Limited, Enugu.
Fajana, S. (2011). ‘HR Management in Africa: The Social and Economic Framework.’Personal
fuhrung ,7, pp. 80 86.
Fajana, S. and Ige, A. Y. (2007). ‘Globalisation and International Labour Mobility: An in-depth
study of the Nigerian Health Sector.’ Conference of Marco Biangi Foundation. Modena /
Italy.
Healthfield, S. (2011). New roles of HRM, About.com News letter.
Hempel, P.S. (2004). Preparing the HR profession for technology and information work. Human
Resource Management, Issue 2-3, 163-177.
Hustad, E. and Munkvold, B.E. (2005). IT-supported competence management: A case study at
Ericsson. Information Systems Management, Spring, 78-88.
iLogos Research. (2002). ‘Global 500 website recruiting, 2002 survey.’ Author. Retrieved April 8,
80
2002, from https://www.ilogos.com/ iLogosReport2002/secure
Iraz, R. and Yildirim, E. (2002). Perception of Information management and Impact of IT on
Human Resource Management. Proceedings of 4. National Conference on Information,
Economy and Management, 15-16 September, Sakarya, Turkey, pp. 227-238.
James, S. (2004). ‘Introduction to communication for business and organization.’ Ibadan:
Spectrum Books Ltd.
Kasper, H. and Mayerhofer, W. (2005). Personal Management. Prague: Linde, SRO.
King, W.R. (1994). ‘Process re-engineering: the strategic dimensions.’ Information Systems
Management, Vol. 11, Spring, pp. 71-3.
Klein, M.M. (1994), ‘Re-engineering methodologies and tools.’ Information Systems
Management, Vol. 11 No. 2, Spring, pp. 30-5.
Khatri, N. (1999). ‘Emerging issues in strategic HRM in Singapore.’ International Journal of
Manpower, 20(8), 516-529.
Koch, M.J. and McGrath, R.G. (1996). ‘Improving Labor Productivity: Human Resource
Management Policies Do Matter’, Strategic Management Journal, 17, 335-54.
Kovach, K.A. and Cathcart, C.E (1999). Human resource Information System (HRIS): Providing
business with rapid data access, Information exchange, and strategic advantage. Public
Personnel Management, 28(2), 275-282.
Lado, A. A., and Wilson, M. C. (1994). ‘Human resource systems and sustained competitive
advantage: A competency-based perspective.’ Academy of management review, 19(4),
699-727.
Lee, S. H., and Heard, A. (2000). ‘A managerial perspective of the objectives of HRM
practices in Singapore: An exploratory study.’ Singapore Management Review, 22(1),
65-82.
Lepak, D.P. and Snell, S.A. (1998). Virtual HR: Strategic human resource management in the 21st
century. Human Resource Management Review, 8(3), 215-234.
Long, Y. (2009). “The impact of information technology on the HR function transformation”.
Master Thesis, Business Administration HRM, University of Twente.
http://purl.utwente.nl.
81
Macky, K., and Boxall, P. (2007). ‘The relationship between ‘high performance work practices’
and employee attitudes: an investigation of additive and interaction effects.’ The
International Journal of Human Resource Management, 18(4), 537-567.
Minbaeva, D. B. (2005). ‘HRM practices and MNC knowledge transfer.’ Personnel Review, 34(1),
125-144.
Mishra, A. and Akman, I. (2010). ‘Information Technology (IT) in the field of Human Resource
Management’. Public Personnel Management, 39(3).
Olofin, S. O. and Folawewo. A. O. (2006). ‘Skill Requirements, Earnings and Labour Demand in
Nigeria’s Urban Informal Sector.’ In B. Guha-Khasnobis and R. Kanbur, eds., Informal
Labour Markets and Development. PalgraveMacmillan: 180-195, Paper prepared for the
joint WTO-ILO Workshopon Global Trade and Employment, 31 August – 1 September,
2009, Geneva, Switzerland.
Othman, R. and Teh, C. (2003). On developing the informated workplace: HRM issues in
Malaysia. Human Resource Management Review, 13(3), 393-406.
Pfeffer, J. (1998). ‘The Human Equation: Building Profits by Putting People First.’ Boston, MA:
Harvard Business School Press.
Pfeffer, J. (1994). ‘Competitive Advantage through People’. Boston, MA: Harvard Business
School Press.
Pinsonneault, A. and Kraemer K. (1993). The impact of information technology on middle
managers. MIS Quarterly, September, 271-292.
Ruel, H.J.M. and Bondarouk, T.V. (2008). ‘Exploring the relationship between e-HRM and HRM
effectiveness: lessons learned from three companies.’ in Martin, G., Reddington, M. and
Alexander, H. (Eds), Technology, Outsourcing and HR Transformation, Butterworth
Heinemann, Oxford, pp. 161-92.
Rundle,S.J. (1997). ‘Flexibility , adaptiveness and responsiveness (FAR-ness) as the key success
factors in market entry in the south east Asian growth wedge’. PhD thesis,
Department of Management, Monash University,Victoria.
Schuler, R.S and Jackson, S.E. (1987). ‘Linking competitive strategies with human resource
management practices’, Academy of Management Executive, 1(3), 207-19.
82
Schuler Randall S. and MacMillian C. (1984), ‘Gaining Competitive Advantage through Human
Resource Management Practices’, Human Resource Management, Fall 1984, 23(3), 241-
25.
Shrivatsava, S. and Shaw, J. B. (2003). Liberating HR through technology. Human Resource
Management, 42(3), 201-222.
Smeenk, S. G., Eisinga, R. N., Teelken, J. C., and Doorewaard, J. A. C. M. (2006). ‘The effects
of HRM practices and antecedents on organizational commitment among university
employees.’ The International Journal of Human Resource Management, 17(12),
2035-2054.
Snell, S. A., Stueber, D and Lepak, D. P. (2002). Virtual HR Departments: Getting out of the
middle. In R. L. Heneman and D. B. Greenberger(Eds), Human resource management in
virtual organizations, pp 81-101, CT: Information Age Publishing.
Soliman, F. (1997). ‘Role of information technology in business process re- Engineering
Proceedings of Australasia on Conference Technology for Manufacturing.’ Massey
University, Palmerston North, New Zealand, 12-13 February, Vol. 3, pp. 34-8.
Storey, J. (1995). ‘Human Resource Management : A Critical Text’. London: Routledge.
Strohmeier S. (2007). Research in e-HRM: Review and implications. Human Resource
Management Review, 17,19-37.
Tan, K. (2010). ‘Internet-based ICT Adoption among SMEs.’ Journal of Enterprise Information,
23(1), 27-55.
Useem, J. (1999). ‘For sale online: You’. Fortune, 140(1), 67-78.
Wang, K., Olsen, S., Sorbring, E. and Stegberg, T. (2010). ‘A study concerning the connection
between attitudes and ICT usage: Proceedings of IRIS 23.’ Laboratorium for Interaction
Technology, University of Trollhättan Uddevalla.
Womboh, B. S., and Abba, T. (2008). ‘The state of information and communication technology
(ICT) in Nigerian university libraries: The experience of Ibrahim Babangida Library.’
Federal University of Technology, Yola.
Wright, P. M., and Snell, S. A. (1991). ‘Toward an integrative view of strategic human
resource management.’ Human Resource Management Review, 1(3), 203-225.
83
APPENDIX
Department of Management
University of Nigeria
Enugu campus
August, 2012
Dear Sir/Madam
REQUEST TO COMPLETE QUESTIONNAIRE
This questionnaire is designed to solicit for information from you on the research topic: “Effect
of Information and Communication Technology on the performance of Human Resource in
selected Commercial Banks in Enugu State, Nigeria”. Please supply and complete the
questionnaire as related to you.
Please be assured that the information supplied will be used purely for academic purpose only
and will also be held with utmost confidentiality.
Thank you for the anticipated cooperation.
Yours faithfully,
Anozie, Nwamaka Miriam.
84
QUESTIONNAIRE ON THE EFFECT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON THE PERFORMANCE OF HUMAN RESOURCE IN SELECTED COMMERCIAL BANKS IN ENUGU
STATE, NIGERIA
SECTION A: Background Information
Please tick ( ) where appropriate.
1. Name of Bank: Diamond Bank Plc
Guaranty Trust Bank Plc
2. Sex: Male
Female
3. Age of the respondent (Years): 41 and above
31 – 40
20 - 30
4. Educational Qualification: MA/M.Sc/MBA
B.Sc/BA/HND
OND
Others
5. Length of Service: 31 – above
21 – 30
11 – 20
1 – 10
6. Marital Status: Single
Married
Other
85
SECTION B:
Respondent views on the subject of investigation
The instrument below is a Likert rating scale questionnaire. It is designed in a five points rating
scale, viz:
SA = Strongly Agree = 4
A = Agree = 3
D = Disagree = 2
SD = Strongly Disagree = 1
UND = Undecided = 0
Please tick as you deem appropriate in the column below
To determine the effect of Information and Communication
Technology (ICT) on HR performance within the bank.
SA A SD D UND
S/N
1.
ICT enables HR to effectively communicate with employees and
manage an effective workforce in my bank.
2. ICT enables the HR professionals in my bank to effectively
manage large applicant pool.
3. ICT have a very strong positive effect on HR performance within
the bank
4. HR professionals within my bank can play a strategic role in
attaining improved competitive advantage through the
integration of ICT on HRM practices
5. HR performance within your bank has greatly improved and has
impacted greatly on your bank’s profitability.
To ascertain the extent of correlation between ICT tools and HR
functions within the bank.
6. ICT makes career management cost effective for my bank
through the use of on-line course registration, e-
learning/training & development.
7. ICT helps HR professionals in my bank to have an electronic data
base where information about possible job candidates, history of
the employees, staff profile, and appraisal information are kept
and updated.
8. ICT tools such as Oracle HR, EasyCruit, PeopleSoft, Microsoft
office, web portals, and intranet has a very strong positive
correlation with HR functions within my bank.
86
9. Carrying out HR functions in my bank has become easier, faster
and cost effective as a result of the use of ICT tools.
10. ICT enables HR professionals carryout their work more
effectively through the use of web portals where job vacancies
are advertised, CVs and resumes can be submitted.
To rationalize the use of ICT for improving and providing solutions to
specific problems of HR practices within the bank.
11. Advances in ICT hold the promise of meeting many of the
challenges of HRM such as attracting, retaining, developing, and
motivating employees.
12. There is significant relationship between ICT and
improving/providing solutions to specific problems of HR
practices within the bank.
13. ICT makes performance appraisal a lot easier for employees and
the HR professional in my bank through easy access and
distribution of forms.
14. The internet (ICT) gives my bank access to global talent and not
limiting it to a local applicant pool constrained by geography.
15. HR practices such as recruitment and selection, training and
development, performance appraisal, career management etc
has greatly improved as result of the use of ICT.
To evaluate the various factors that influences the effectiveness of ICT
on HRM practices within the bank.
16. The constant electric power outages in least developed countries
pose serious threat to the survival of ICT on HRM practices.
17. ICT requires high degree of knowledge, expertise and skills by all
categories of employees within the bank.
18. Socio-economic factors such as level of education, economic
development, technological development, global integration,
determine the effectiveness of ICT on HRM practices.
19. The use of outdated/obsolete computer systems and HRM
software can affect the effectiveness of ICT on HRM practices
20. There is a significant relationship between ICT and Socio-
economic factors that determine its effectiveness on HR
practices within the bank.
87
ORAL INTERVIEW GUIDE
1. What are the effects of ICT on HR performance within your bank? -----------------------------
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
2. Has ICT helped to improve and provide solutions to specific problems of HR practices
within your bank?
Yes________ No__________
3. If ‘YES’ how______________________________________________________________
If ‘NO’ why ______________________________________________________________
4. How has ICT helped to improve HR performance within your bank? -
________________________________________________________________________
5. What types of ICT tools are used to accomplish HR functions within your bank?
________________________________________________________________________
6. How conversant are you with ICT tools and usage?
________________________________________________________________________
7. What factors determine the effectiveness of ICT service on HRM practices within your
bank?
________________________________________________________________________
