EFFECTS OF GLOBALISATION ON HUMAN RESOURCE PRACTICE IN NIGERIA

CHAPTER TWO

LITERATURE REVIEW

2.0 INTRODUCTION

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

2.2 CONCEPTUAL FRAME WORK

CONCEPT OF GLOBALIZATION

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

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

Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology (Shuaib, Ekeria and Ogedengbe, 2015). The process has effects on the environment, culture, political systems, and economic development around the world. Through globalization, societies can gain competitive advantage from lower operating costs and access to new raw materials and additional markets (George-Anokwuru, 2018). Globalization is an unavoidable phenomenon in human history that is bringing the world nearer through the interchange of goods and products, facts, knowledge and culture. Globalization is also perceived as a trans planetary process or set of processes involving increasing liquidity and the growing multi - directional flows of people, objects, places and information as well as the structures they encounter and create that are barriers to, or expedite, those flows. According to Ishmael (2018), globalization is the process of increased interconnectedness of the economies of previously well demarcated nation states; the phenomenon of instant transmission of ideas, events and culture over long distances through the instrumentality of technology, and the impact of these processes on local environments. It closes the gaps and distances between nations and peoples, and creates perception of the decline of sovereignty to the extent that sovereign states are increasingly less able to control global commercial and financial flows or to censor the information available to their citizens. Moghalu, (2014) opines, that globalization has two elements; the economic and the social, with technology as its chief instrument.

Globalization is an extremely contentious process which has come under much disparagement in its present capitalist form and comes to a shock to Economists and Policy makers who are greatly convinced of the assistance this form of globalization can bring to the emerging world (Nurul-Bayan, 2016). Globalization involves the associations among enterprises, institution as well as citizens across national borders. Thus, as a historical process, globalization is the result of innovation and technological progress by humans (Utuk, 2015).

Globalization involves the movement of goods and services across national borders. According to Ojo (2003), globalization is a phenomenon that reflects the increasing interaction among persons and institutions across the globe. These interactions permeate all facets of human endeavour. Thus, globalization is multidimensional, spanning economic, political, cultural and social activities. He equally maintained that, globalization was first noticed through trade relations among countries and intensified through the role of multinational trading organizations that operated the globe bringing people and institutions closer. This was followed by the injection of capital into the overseas economies by the headquarters of the multinationals to promote further trade. Accordingly, the early foreign capital came with trade. Despite the span and intricacy of the process, its main rudiments are well known. Technological advancements, especially in the field of information and communication, have had the effect of linking and bringing the world closer in time and space, making possible new ways of doing business and intensifying social interactions.

Todaro and Smith (2011), views globalization ‘’as a way by which the economies of the world become more integrated, leading to a global economy and increasingly, global economic policy making’’. In concrete terms, globalization is the intensification of cross-border trade and increased financial and foreign direct investment flows among nations, promoted by rapid advances in and liberalization of communication and information technology (Aninat, 2002). Hence, globalization paints the picture of a world without borders, with greater economic integration that increases the standard of living of people across the world.

In the words of Ajekiigbe (2004), globalization represents an institutional and societal change, manifested by an increase in cash in-flow, technology, and labour, which result in the expansion of business corporations on a global scale. A similar account was put forward by Majekodunmi and Adejuwon (2012); they pointed out that, globalization connotes an acceleration and intensification of global integration and interaction amongst persons, organizations, and constituted authorities such as the governments of different economies which affects individuals’ welfare, economic growth, socio-cultural systems and national development on a global scale. By the same token, McGrew (2008) argued that globalization has to do with amplifying social interrelationships of individuals, organizations, and nations to obtain mutually beneficial situation through integration of businesses, technology, finances as well as labor across national frontiers or internationally.

RATIONALE FOR GLOBALIZATION

Since 1900, life expectancy has improved across countries of the globe, and globally, average life expectancy has now doubled (Ospina, 2017). Hence, suffice to state that globalization is among the issues and phenomena that have attracted much attention everywhere. The process has existed from the beginning of human existence and with its modernization/development at different times and stages since its effects has been growing enormously in these modern times.

Looking at the current occurrences in the global economies, it has been shown that it will be difficult for countries to isolate themselves in a newly converging world. Thus, Ricardo’s theory of comparative advantage which posits that countries could better specialize in goods and service that they have comparative advantage in producing can be of relevance in discussing the link between globalization and economic development. This forms the foundation of trade theories which argues that the world economy is becoming interdependent, and ensuring international interconnectivities, most notably in trade. Also, the trade theorists posit that trade was paramount for the development of nations. This argument is not in line with autarky, where an economy is not opened, but closed and accompanied by little relations with other countries of the world. They believed that an economy can be opened. Global industrial structuring in the 1990s was characterized by the increasing specialization of firms and their extensive outsourcing and networking strategies.

As developing countries attempt to open up their economies in recent years, they are concerned about globalization and its different effects on economic growth especially as poverty, inequality, environment and cultural dominance are increasing everyday (Samimi and Jenatabadi, 2014).In instances or situations where issues concerning globalization are brought up or analyzed, the link connecting economic development and globalization usually make important headlines. Ensuring economic growth and development is the aim of policy makers as it shows the success of a nation. Hence, the pattern of globalization, analyzing the consequence of globalization on economic development is very crucial. This stems from the premise that globalization has (and continues to have) a profound effect on the globe, and also in the way companies and even governments do business. According to World Bank data, trade accounted for more than 70% of global GDP in 2017, from less than 25% in 1960 (Trefler, 2019).

In this regard, the nature of globalization in the 21st century; fuelled by post-war economic booms, global movements for liberalization and freedom, and the emergence of dominant multinational corporations all resulted to the ever increasing connected world and interdependence among different economies of the world. Global integration, driven by technology, transportation, and international cooperation, has resulted in our present-day interconnected world. Increased flow of goods, knowledge and people across borders brought prosperity to many countries, lifting many people out of poverty. Countries benefit from comparative advantage of specializing in what they do best as participants of the global economy by producing more goods at lower prices that lower-income households can afford thus raising their living standards.

Thus, governments and businesses have responded to each wave of globalization by harnessing the technological developments presented to refine their strategy and increase growth, bring new innovations, and also evolve and adapt to the changing world.

OVERVIEW OF GLOBALIZATION IN NIGERIA

Because of advancements in technology over the past several decades, the rate of absorption on a worldwide scale has accelerated to an even greater degree. There will be no exclusion of Nigeria from this trend of globalization. Nigeria, as a significant component of the developing world, is confronted with both the potential and the costs of globalization. Although Nigeria is endowed with natural resources, these resources are not being exploited correctly, despite the fact that Nigeria is blessed with natural resources. It is crucial to emphasize that finding innovative and more effective ways to harness Nigeria's natural resource endowments is important and required for the country to better its economic state and place in the global sector.

As soon as the country of Nigeria gained its independence, it became famous as an agricultural economy. This was due to the fact that agriculture was the primary driver of economic expansion for the whole economy. During this time period, Nigeria held the number two spot for the production of cocoa and the number one spot for the export of palm kernels and palm oil. Cotton, groundnuts, rubber, and hides and skins were some of the other key agricultural products that Nigeria exported in significant quantities, and the country achieved a high level of success in this endeavor as well. In spite of the fact that Nigerian peasant farmers used native farming methods and native tools, local agricultural products accounted for approximately 60 percent of the country's Gross Domestic Product, 70 percent of the nation's export, and approximately 95 percent of the country's food supply in the 1960s. 1 As a result of the growth in the oil industry, Nigeria moved its focus to the export of crude oil products. As a consequence of this transition, the country's agricultural sector received little to no attention, which contributed to the country's economic decline in that area. Because of an unsuitable policy regarding the exchange rate, which had an effect on the prices of agricultural export, the prices of agricultural output became too low to offer farmers the motivation to produce. As a result of this neglect, the prices of agricultural export decreased.

CONCEPT OF HUMAN RESOURCE MANAGEMENT

According to several scholars like Barney (1991) and Wilson (1994) management of human resources is much more difficult than capital management or technology management. The definition of Human resource management (HRM) evolved in the later period of twentieth century. In the current day world, survival of an organization depends on the development of new capabilities; as a result organizations are facing critical challenges in all over the world. New challenges like globalization, investment in human capital, growth, change management etc. are emerging and organizations from all over the world needs to manage and find opportunities through these challenges. Among these challenges the management of human capital has gained added importance, as organizations are realizing the importance of people or human resource as assets of strategic importance. According to Hartel, Fujimoto, Strybosh and Fitzpatrick (2007) Human resource management does not merely deals with the rational administration but looks after the job satisfaction of the employees and also focus on, how to motivate them for better results, as a result it is making the best utilization of each individual human power for achieving the objectives of an organization. Human resource management is also an important fact considered by organizations from all over the world, because human resource is the resource that has the capability of converting the other source like capital, technology, methods, material, machine etc. into product or service.

So the need of a sound Human Resource Management system is very much necessary, in today's world. Before the evolving of the definition of Human Resource Management the management process dealing with the similar kind of subject was known as personnel management. It emerged during the 1920s. It was concerned about a single department and its activities. The department it was concerned about was the human administration department, and its main function was recruitment and selection for the organization. The other functions carried out by this management were related to development, grievance handling, registration, appraisal, reward, retirement etc. But the negative fact about this system was that its formation was in the bureaucratic set up and it gave importance to the organization and its administration. By the late 1970s organizations from all over the world started facing increase in competitive pressures due to the factors like deregulation, fast growing technological change and globalization. So the need for a more efficient management system emerged and in response the Human Resource Management was developed. According to Khatri (1999) Human capital is one of the key factors that provide flexibility and adaptability to the organization. According to Rundle (1997) the people or the human resource are the adaptive mechanism not the organization or firm that determines the response of the organization towards the competitive environment. On current structural background Human Resource Management can be defined as systematic process by which human capital or human resource are recruited and managed in such a way that it helps the organization to achieve its objectives. Human Resource Management is concerned about not only the organization but also about the wellbeing of the human capital involved, so it gives consideration not only towards recruitment and selection but also towards the motivation factors, development and maintenance of human resources. Human Resource Management helps to select the right person, for the right job, at the right time and at right position in a changeable surrounding.

According to Schuler & Jackson (1987); Schuler & Macmillan (1984); and Wright & Snell (1991); Human Resource Management comprises of the activities of an organization directed towards the management of the human resources and taking care of the facts that the resources are appointed at the right place and time for the right purpose for the fulfillment of the goals of the organization. The performance of an organization depends on the efficiency of the human resources involved with the organization. Therefore a systematic set up for recruitment, training and development, motivation, manpower planning, performance evaluation, industrial relation and remuneration management should be taken into consideration. Moreover Human Resource Management is also concerned about the development of skills, ability and knowledge in the acquired human resources, so that the tasks and responsibilities given by the organization are performed effectively and efficiently. The main concept of Human resource management comprises of four main functions - Acquisition, Development, Maintenance and Motivation of the human resource. These are the basic factors or key steps that help an organization to achieve its goals.

Storey (1989) believes that HRM can be regarded as a ‘set of interrelated policies with an ideological and philosophical underpinning’. He suggests four aspects that constitute the meaningful version of HRM:

1. A particular constellation of beliefs and assumptions

2. A strategic thrust informing decisions about people management

3. The central involvement of line managers and

4. Reliance upon a set of ‘levers’ to shape the employment relationship

Employee performance management is the systematic process by which an agency involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals. Or it is an integrated system, including organizational design, work planning, assessments and feedback designed to maximize performance at the individual, team, unit and organizational levels to motivate and to develop staff.

Performance management thus is a means of getting better results by understanding and managing performance within an agreed framework of planned goals, standards and competency requirements. It describes how the process exists for establishing shared understanding about what is to be achieved, and for managing and developing people in a way that increases the probability that it will be achieved in the short and longer term. It thus focuses people on doing the right things by clarifying their goals. It is owned and driven by line management.

Personality - as defined by Toplis et al (1991), personality is all-embracing in terms of the individual’s behaviour and the way it is organized and coordinated when he or she interacts with the environment.

Placement – It is a system of assessment and selection by which vacancies are filled by staff serving in an organization. Commonly refers to internal filling of vacancies as distinguished from external recruitment.

Recruitment – a system of attracting, assessing and selecting candidate’s external to the organization in order to fill vacancies. This process is distinct from the one whereby serving staff are selected to fill vacancies. (see definition for Placement).

Compensation package - structures which are devised and managed to provide and maintain appropriate types and levels of pay, benefits and other forms of reward.

Competencies - Combination of skills, attributes and behaviours that are directly related to successful performance on the job.

Contractual arrangement -Types of contracts which are used to hire individuals for periods ranging from short-term to long-term, or to engage their services for the provision of a specific end product. The contracts may be time-based (fixed-term or without time limit) or linked to the completion of a specific event/task

FUNCTION OF HUMAN RESOURCE MANAGERS IN ORGANIZATIONS

HRM functions are concerned with the management and development of people in organizations. They are involved in the development and implementation of HR strategies and policies and? some or all of the following people management activities: organization development, human resource planning, talent management, knowledge management, recruitment and selection, learning and development, reward management, employee relations, health and safety, welfare, HR administration, fulfillment of statutory requirements, equal opportunity and diversity issues, and any other matters related to the employment relationship.

The role of the HR function is to enable the organization to achieve its objectives by taking initiatives and providing guidance and support on all matters relating to its employees. The basic aim is to ensure that the organization develops HR strategies, policies and practices that cater effectively for everything concerning the employment and development of people and the relationships that exist between management and the workforce. The HR function can play a major part in the creation of an environment that enables people to make the best use of their capacities and to realize their potential to the benefit of both the organization and themselves.

It further provides the advice and services that enable organizations to get things done through people. It is in the delivery business. Ulrich (1998) points out that: ‘The activities of HR appear to be and often are disconnected from the real work of the organization.’ He believes that HR ‘should not be defined by what it does but by what it delivers’.

According to According to digitalhrtech (2019), HRM has the followin importance that help move organization forward:

• Learning and development of Staff

Enabling employees to develop the skills they need for the future is an essential responsibility for HR. This is also related to the first HR function we listed, in which HR bridges the gap between the workforce today and the workforce needed in the near future.

Traditionally, organizations have a set budget for learning and development. This budget is then distributed among its employees. In some countries, this fee is mandatory. In the UK, for example, companies with an annual pay bill of more than £3 million pay a mandatory rate of 0.5% designated for the professional education of their employees.

In other countries, like Belgium and the Netherlands, L&D falls under the employer’s responsibility to take care of its employees. In the third group of countries, like the US, this is almost unregulated territory.

Despite the differences in regulation, almost all employers understand the value of investing in the (future) skills of their employees. It’s the responsibility of the HR department to lead these efforts in the right direction.

• Career planning

Another function of Human Resource Management is career planning, guidance, and development for employees, together also referred to as career pathing. Showing employees how their ambition can align with the future of the company helps to engage and retain them. For the organization, there are the benefits of better succession planning, higher productivity, and a stronger employer brand.

• Function and Performance evaluation of Staff

As a business and society changes, so too must an efficient HR function. Function evaluation is a technical aspect of HR. By evaluating the HR function, the department ensures that the company is successful at both a strategic level and with service delivery and support. The company needs to deliver the level of services required, whilst operating strategically. Practically, function evaluation involves comparing various parts of the overall HR operation. This can include the quality, and availability of workers, job location, working times, the economic situation, job responsibilities, and how much value a job adds to your organization. The idea behind function evaluation is that similar jobs should be rewarded similarly.

• Rewards of staff

Rewarding employees for their work is a function that is impossible to miss. Compensation and benefits are integral to attracting the right kind of candidate for the role, and company. These will vary across different fields, countries, and cultures. In some countries, such as the USA, health insurance is often part of a job offer. However, in countries such as the UK, where a public health system provides most healthcare, to most people, this is not the case. Yet the total rewards framework shows that rewards are more than just money. They can also be relational and psychological outcomes.

Rewards include salary but also growth and career opportunities, status, recognition, a good organizational culture, and a satisfying work-life balance. For example, fantastic colleagues and meaningful work are also rewarding to employees. The monetary reward of the job consists of financial rewards and other (secondary) benefits.

• Industrial relations between small scale organizations

Another function of HR is maintaining and cultivating relationships with labor unions and other collectives, and their members.

Unionization is still prevalent in Europe and other parts of world, although it is declining overall. In 2018, 92% of employees in Iceland were a member of a union and 67% of employees in Denmark. However, in the UK and Estonia, only 23% and 4% of employees, respectively, were. In the USA trade union membership is low, with 10% of employees being members in 2018. Maintaining good relations with unions will help to spot and resolve potential conflicts quickly and will also be beneficial in more difficult economic times when layoffs or other actions are required.

• Employee participation and communication

According to Dave Ulrich, one of the key roles of HR is to be a credible activist for the employees. Employees need to be informed and heard on different topics that are relevant to them. Communication relates to spreading information relevant to employees.

Being a People’s Advocate is one of five elements of the T-shaped HR professional, a new competency framework we developed for the future of the HR workforce. People Advocacy includes culture building, people practices, workplace champion, and communication expert.

• Ensures Health and safety of employee

HR plays an important role in creating and implementing health and safety regulations. Making these regulations part of the company culture is one of the main functions of HR.

A famous example is oil company Shell where it is forbidden to walk the stairs without holding the railing – also in the company’s HQ. This is part of Shell’s ‘Goal Zero’, which stands for zero accidents. Although holding the railing is much more important on an oil platform, safety is such a big part of the company culture that safety roles are applied everywhere.

• Personal well-being

HR has a function in assisting and taking care of employees when they run into personal problems. Personal well being is about supporting employees when things don’t go as planned. Problems in the workplace and outside can negatively impact employee performance, engagement, and productivity. This, in turn, harms a company’s bottom line.

Good personal well-being led by your HR department must work at the level of one-on-one communication with employees, and communication across teams, and companies. For example, a company may offer an employee assistance program by which anyone with mental health issues, can access counseling. On an organization-wide level, the company could hold a mental health awareness day.

• Administrative responsibilities of SME’s

The final function of HR is its administrative responsibility. These include personnel procedures and Human Resource Information Systems.

Personnel procedures involve the handling of promotions, relocations, discipline, performance improvement, illness, regulations, cultural and racial diversity, unwanted intimacies, bullying, and so on. For each of these situations, policies and procedures need to be developed and followed to successfully comply with the requests, or overcome these challenges.

Human Resource Information Systems (HRIS) store employee data. These systems need to be purchased, implemented and managed so the data can be used for better decision-making.

EFFECTS OF GLOBALISATION ON HR PRACTICE IN NIGERIA

With the advent of Globalization, the developing countries have taken a number of structural adjustments and different measures to achieve competitiveness, efficiency in resource allocation and development of human resources. Human resources are the catalyst of development for a country and the government of a country should lay high emphasis for the development if its human resources.Globalization, as it has emerged in the 21st century, poses distinctive HRM challenges to businesses especially those operating across national boundaries as multinational or global enterprises. Global business is characterized by the free flow of human and financial resources especially in the developed economies of European Union (EU), the North American Free Trade Agreement (NAFTA), other regional groupings such as the Association of South East Asian Nations (ASEAN), the Economic Community of West African States (ECOWAS), the Southern African Development Community, etc. These developments are opening up new markets in a way that was never witnessed before. This accentuates the need to manage human resource practice effectively to gain competitive advantage in the global market place. To achieve this, organizations require an understanding of the factors that can determine the efficacy of various human resource practices and approaches.

It is attributed to various considerations which are often associated with a wide range of factors allied with it, that are of an economic, political, cultural and sociological nature. (Sparrow et al., 2004). Globalization is considered to exists within the action of those relatively(few firms) that look at the world as being nationless and borderless. (Ohmae in Sparrow et al 2004).These firms and multinational corporations carry out trade on a global basis, and their main concerns are fewer trade barriers, profit maximization, satisfying customer needs and creating a niche or market position, all these mechanisms have a direct and profound impact on the behaviors, attitudes and mindsets of people who work in such organizations, and on how they should be managed.(Sparrow et al 2004). With globalization, the whole world has become a nearby arena for all players to showcase their prowess in product packaging and service delivery. Nations are continually testing their strengths in the harnessing of resources; companies are flexing their productivity muscles across borders while households and individuals are enthralled by the myriad of options and opportunities that the market offers to them a sconsumers, producers and investors. Globalization is crucial to understanding international political economy for its direct attention to fundamental changes. The manifestations of globalization include the spatial reorganization of production, the interpenetration of industries across borders, the spread of financial markets, the diffusion of identical consumer goods to distant countries, massive transfer of population within continent regions as well as from one continent to another, resultant conflicts between immigrant and established communities in formerly tight-knit neighborhoods and an emerging worldwide preference for democracy.The forces of globalization, have changed the world of work, some of the principal changes, the world over have been the emphasis on competitiveness, increasing numbers of women joining the work-force, a more mobile and diverse work-force and growth in part-time and flexible work (Faugoo,2009). Globalization is often portrayed as a new stage in world development.(Sparrow et al 2004),which is characterized by intensified competition and continuing technological innovation, which have emphasized the importance of product quality and customer care which in turn has increased the emphasis on people management(Hucysnki et al2002). In order to meet some of the challenges posed by intense competition, organizations have been downsized, delayed, decentralized and are hierarchical in nature. These changes have subsequently lead to many developments in human resource practice, as employers have to cope with the challenges posed by a competitive global economic environment.(Redman et al2001). Firms are increasingly turning to the unique contribution provided to them by their human resources as a source of competitive advantage (Wright et al in Morley et al 2004).Organizations and institutions are increasingly realizing the importance of human competitiveness as essential to organizational survival and economic progress.There is also a growing belief that if organizations have to survive and thrive in a global economy, they require world-class human resource (HR) competencies and the processes for managing them.(Khandekar et al 2005)and this is in line with the resource based view (RBV) perspective of Strategic Human Resource Management(SHRM), which states that employee knowledge, skills, talents and know-how are the central source of organizational performance. Human resources are more likely to produce competitive advantage because they often are truly rare and can be more difficult for competitors to imitate(Jackson et al 2004) and that the effective management of human resources is critical to obtaining organizational success. The basic premise on which strategic human resource management is based is that human resources are strategic valued assets and a source of competitive advantage.(Khanderkar et al 2005)Competitive advantage are those abilities, capacities, resources and decisions that undermine an organization’s capacity to survive and maintain its position. Management of people is increasingly being considered as one of the key links to generating a competitive advantage. Competitive advantage leads to organizational effectiveness. (Lengnick in Khanderker et al 2005).Among a firm’s intangible resources ‘Human Resources’ with their tacit knowledge, skills and talents are more likely to produce competitive advantage, as these constitute the core competencies of the organization, which will enable an organization to capitalize on opportunities in the market place and avoid threats to its desired position.(Jackson et al in Khanderkar et al 2005).Researchers like (Wright et al in Morley et al 2004) have argued that HRM capability is a source of competitive advantage, as it is embedded in the collective knowledge of the firm members(inimitable) which is developed over a period of time(rare) and valuable as the firm’s routines for managing people can direct employees talent and behavior to meet objectives and create value.(Handy et al 1990) Attracting and retaining individuals with skills related to the core competencies of the organization are key H.R activities directly relevant to building organizational capability. In the same vein, organizations are increasingly relying on ‘HRC’ Human Resource Capabilities’ to cope with the challenges posed by globalization and rapid change. H.R. capabilities are the routines embedded in the tacit and implicit knowledge of the members of an organization functioning to acquire, develop, nurture, and re-deploy human resources through HRM practices in a dynamic competitive environment.(Ulrich et al 1990) HRM practices includes,HR functions like staffing, performance appraisals, training and development, rewards and career planning. ‘HRC enhances the firm’s competitive position by creating superior human capital skills, experience and knowledge that contributes to a firm’s economic value and this substantiates the (RBV) perspective of Strategic HRM as the basis for organization’s competitive advantage and a contributor towards organisational success.

2.2 THEORETICAL FRAMEWORK

The resource-based theory of the firm

The resource-based view (RBV) is a managerial framework used to determine the strategic resources a firm can exploit to achieve sustainable competitive advantage. The resource- based theory of the firm propounded by Wernerfelt, (1984) is regarded as one of the theories of strategic management that is widely referenced particularly because of its practical relevance to contemporary management practices.

‘HRC’ enhances the firm’s competitive position by creating superior human capital skills, experience and knowledge that contributes to a firm’s economic value and this substantiates the (RBV) perspective of Strategic HRM as the basis for organization’s competitive advantage and a contributor towards organisational success.The RBV argues that resources such as H.R capabilities are important for firm’s purpose.(Khanderkar et al2005). Pfeffer (1994) asserted that H.R capabilities are the pre-eminent organizational resource and the key to achieve outstanding performance.(Huselid et al 1997) found that firms effectiveness was associated with H.R capabilities and its attributes. The resource-based theory of the firm blends concepts from Organizational Economics and Strategic Management. This theory holds that a firm’s resources are key determinants of its competitiveadvantage, which can only be built by creating a distinctive value that is inimitable for competitors. Traditionalsources of competitive advantage such as financial and natural resources, technology, and economies of scale can beused to create value. However, present argument is that they are increasingly accessible and imitable to remain merely less significant in comparison to a complex social structure such as an employment system. In contrast, HR policies and practices alone may be an especially important source of sustained competitive advantage. Specifically,four empirically identified potential indicators for a firm‟s resources to generate competitive advantage are: value,rareness, immutability, and substitutability. In other words, to gain competitive advantage, the resources available to competing firms must be variable among competitors and they must be rare (not easily obtained). Three types of resources associated with organizations are (a) physical (plant, technology, equipment, and geographic location), (b)human (employees' experience and knowledge), and (c) organizational (structure, systems for planning, monitoring,and controlling activities; social relations within the organization and those between organization and external constituencies). To the extent they greatly influence an organization's human and organizational resources, HR practices can be used to gain competitive advantages The role of human resource is to implement the necessary organizationals trategies with sensitivity to specific cultural influences (Pucik, 1996). Being at the center of globalization,multinational organizations and manufacturing firms need to learn to integrate diverse value systems and espouse shared global work values to create an environment, where workers are able to communicate and coordinate their activities to reach common goals (Rosenblatt, 2011). Human resources must play new roles and responsibilities in leading the organization in uncharted waters of globalization. The overall purpose of human resource practice is to ensure that the organization is able to achieve success through people (Armstrong, 2000).

2.3 EMPIRICAL STUDIES

Vincent(2012) assessed the impact of globalization on key areas of human resources management among Nigerian organizations. The need for this study arose as a result of paucity of empirical studies that sought to assess the impact of globalization on human resource management in Nigeria. The background rationale for the study was further highlighted by the consensus among Nigerian scholars that if Nigerian organizations must keep pace with competition which a globalized world has made more complex, they must properly manage their key area of comparative resource strength which is human resources. In the light of the above, this study specifically investigated the impact of globalization on the changes in HR policies of Nigerian organizations; its impact on the mobility of skilled staff and its relationship with income and compensation structure of Nigerian organizations. A sample size of 385 personnel was determined from the total population of 13,446 of the selected 8 multinational firms from oil, banking and manufacturing sectors. Survey design method was used and data were collected using questionnaire and structured interview. The analysis of data and interpretation of results yielded the following findings: Many Nigerian organizations have changed their HR policies as a result of global factors; most highly skilled staff have left Nigerian organizations in search of greener pastures overseas and most Nigerian organizations, within the sectors investigated have reviewed their income and compensation structure upward so as to retain their staff and cope with the scramble for few existing skilled personnel.

Itiola (2013) examined the impact of globalization on human resource practice in Nigerian manufacturing firms.Enterprises driven by market pressures need to include in their goals improved quality and productivity, greater flexibility, continuous innovation, and the ability to respond rapidly to market needs and demands. Effective human resource practice is vital for the attainment of these objectives. The objectives of this study were to examine whether there would be a significant relationship between global market opportunities and human resource practice and also whether global market opportunities, global market uncertainty and global competitive threat were predictors of human resource practice. The study was also carried out to determine whether there would be a significant difference between global competitive threat and human resource practice. A survey design was adopted and data was collected from one hundred and fifty subjects from Bond Chemicals, Oyo. The findings of the study revealed that there was a significant relationship between global market opportunities and human resource practice. The result indicated that global market opportunities, global market uncertainty and global competitive threat were predictors of human resource practice. The result also revealed that there was a significant difference between global competitive threat and human resource practice. Based on the results obtained from the study, it was recommended among others that manufacturing firms and indeed all organizations should take cognizance of global market opportunities, global market uncertainty and global competitive threat most especially as they affect human resource practice.