Employee Resourcing Strategies and Performance of Brewery Companies in South-East, Nigeria

 

Promise Chiagozie Ikwuka1*, Michael A Ikon1, Faith C Onwuchekwa1

 

1Department of Business Administration, Nnamdi Azikiwe University, Awka, Nigeria

 

*Correspondence to: Promise Chiagozie Ikwuka, Postgraduate Student, Department of Business Administration, Nnamdi Azikiwe University, Along Enugu-Onitsha Expressway, Ifite Road, Awka 420110, Nigeria; Email: promiseikwuka2014@gmail.com

 

DOI: 10.53964/mem.2022008

 

Abstract

Objective: In Nigeria, the brewery industry has over time been confronted with a couple of challenges ranging from increased taxation to the burgeoning influence of technology on the online marketing of brewery products. Thus, the current research looked at employee resourcing (ER) strategies and the performance of brewery companies in South East, Nigeria.

 

Methods: Four research questions were raised for the study while testing was done for four hypotheses at 0.05 level of significance. The study considered correlation research design for adoption. 3,222 employees of brewing companies in South-East, Nigeria constituted the population for the study. The sample size was 315 employees. Data collection was facilitated with the use of questionnaire. The instrument for data collection was validated by three experts in the Department of Business Administration, Nnamdi Azikiwe University, Awka. The reliability of the instrument was established using Cronbach alpha, which yielded 0.82 coefficient. Analysis of data was done using Pearson product moment correlation coefficient for research questions and Pearson Correlation Critical value table for testing hypotheses.

 

Results: The revelation of findings of the study was that a high positive relationship existed between ER and performance of brewery companies.

 

Conclusion: The conclusion of the study was that a significant relationship existed between ER (employee recruitment, selection, placement and career development) and performance of brewery companies. One of the recommendations of the study was that the organization of seminars and workshops should be carried out by employers for the employees to ensure that their career is considerably developed for optimum performance in brewery companies.

 

Keywords: brewery, employee resourcing, organizational performance, recruitment strategies, career development

 

1 INTRODUCTION

Within an organization, various programmes have been churned out for employees that are targeted towards shoring up the skills and capabilities of employees for the achievement of organizational goals. This is because, human resource development is key to the competitive success as well as survival of any organization. The recognition of the competitive nature of global market and the need for organizations to have a comparative advantage is key to the prioritization of employee resourcing (ER).

 

ER embodies the techniques adopted by employers to re-source their organizations in such a manner that will engender the attainment of their vital goals[1]. It is targeted towards ensuring that skilled, competent, experienced and committed employees are recruited and possibly retained. It, thus, incorporates staffing (recruitment, selection, retention and dismissal), evaluation of performance as well as administration. Within the context of the current study, searchlight was beamed on recruitment, selection, placement and career development strategies.

 

Recruitment strategy refers to a method of hiring employers with requisite skills, knowledge, experience and professional qualification to add value to the organization. It is tailored towards conferring organizational competitive edge and by extension, increase returns[2]. Put differently, recruitment strategy ensures that employers that will aid the actualization of the organizational goals are brought on board. It provides an organization with a pool of suitably qualified employees[3]. It is instructive to note that the quality of employees in an organization considerably hinges on the quality of applicants at its disposal as the organization is going to make a selection of employees from those at its disposal. Selection strategy is an ER method that embodies the use of one or more media to assess potential employee’s suitability. The selection of employees is usually on the basis of educational qualification, cognate experience, reference, aptitude tests as well as interviews. In the view of Gamage[3], the essence of the adoption of the selection strategy is to ensure that the right candidates are taken to man the right positions. Complementing the selection strategy is the placement strategy.

 

Placement strategy is a technique employed by employees to ensure that the newly recruited employees are put into the right position while rotating the already existing employees based on their interest and competencies in keeping with organizational policy. Lending credence to the afore-mentioned assertion, Siregar[4] stated that it is the assignment of an employee to a novel or entirely different position in consideration of their knowledge, skills and capacities with a view to attaining optimum results. Put differently, placement strategies take into cognizance the following factors: educational accomplishments, experience and interest. Suffice it to say that placement can be in form of promotion, demotion and transfer. It is convenient to place employees when their careers have been developed.

 

Career development strategies refer to a formal approach of improving the capabilities of an employee so that more responsibilities can be assigned to them for the achievement of career planning as well as organizational goals[5]. Career can be developed by factoring in educational accomplishments, training, experience as well as commitment of employees. Career development is targeted towards organizational performance (OP). OP refers to capacity of a firm or industry to achieve concrete goals such as profit-making, product quality and customer satisfaction by the adoption of vital strategies for action. It can be measured by various variables viz: “service delivery, market analysis, competitive advantage, sales growth and returns on investment, corporate reputation, innovative organizational culture and profitability among others.[6]” However, for the sake of this study, it would be limited to service delivery of the employee in brewing companies.

 

Brewing company is an enterprise with a high level of organization, with yearly budgets of intentions targeted towards specific goals. As a result, the board prioritizes the routine performance of each divisional head within the enterprise by taking a painstaking look at their reports. Different methods of performance are used in the technical divisions, and other divisions for which productivity is measured in terms of the extent to which capacity has been used as well as the functionality of plant operation.

 

In Nigeria, the brewery industry has over time been confronted with a couple of challenges ranging from increased taxation to the burgeoning influence of technology on the online marketing of brewery products. The competitive natures of the brewery industry, dearth of qualified employees coupled with the astronomical cost of employee replacement have predisposed brewery industries to be meticulous in their recruitment and selection processes. This development within Nigeria has elicited a lot of interest on the contributions of ER to OP. 

 

1.1 Research Questions

Formulated to guide the study is the following research questions:

1. What is the relationship between employee recruitment strategies and the performance of brewery companies in South East Nigeria?

2. What is the relationship between employee selection strategies and the performance of brewery companies in South East Nigeria?

3. What is the relationship between employee placement strategies and the performance of brewery companies in South East Nigeria?

4. What is the relationship between employee career development strategies and the performance of brewery companies in South East Nigeria?

 

1.2 Research Hypotheses

The testing of the following null hypotheses was done at 0.05 level of significance:

Ho 1: There is no significant relationship between employee recruitment strategies and the performance of brewery companies in South East Nigeria.

Ho 2: There is no significant relationship between employee selection strategies and the performance of brewery companies in South East Nigeria.

Ho 3: There is no significant relationship between employee placement strategies and the performance of brewery companies in South East Nigeria.

Ho 4: There is no significant relationship between employee career development strategies and the performance of brewery companies in South East Nigeria.

 

1.3 Literature Review

This section looked at literatures that are of relatedness to the current study. The review is thus done.

 

1.3.1 Human Capital Theory

The Human Capital theory was proposed by Schultz and developed by Becker et al[7]. The postulation of the theory is to the effect that education as well as training complement productivity. Based on the theory, organizations lend themselves to the cultivation of the afore-mentioned resources with a view to procuring innovation as well as creativity. Going further, the theory captured the fact that certain business challenges necessitate more than just novel machines or capital but intellectual capacity to undertake its tasks towards productivity.

 

Human capital is often owned by the employee and never the employer. This explains why most organizations take concrete steps towards the retention of efficient employees in the firms.  The human capital theory focuses on the extent to which variance in employee skills impacts on performance. ER/Human resource is the pool of human capital in the organization. Human capital theory application focuses directly on the competencies of employees in organizations. The emphasis on human capital in organizations reflects the view that market value depends less on tangible resources, but rather on intangible ones, particularly human resources. Recruiting and selecting the best employees, however, is only part of the equation. In addition, the organization has to leverage the skills and capabilities of its employees by encouraging individual and organizational learning and creating a supportive environment where knowledge can be created, shared and applied. The theory is related to the current study as it captured the extent to which the human capital (employee) is developed (resourced) for optimum performance.

 

1.3.2 Model of Human Resource Management

The HRM model developed by Fombrun et al.[8] in Figure 1 stresses the inter-relatedness of activities associated with human resource management activities. Human resource management cycle in their model comprises four vital constituent elements viz: selection, appraisal, development and rewards. These four human resource elements are tailored towards engendering OP. One of the first well-spelt out remarks of the human resource management concept, in the view of Fombrun et al.[8] is to the effect that the management of the human resource systems as well as organization structure ought be in tandem with organizational strategy. It further delineates that the human resource cycle comprises four generic functions that are performed in all organizations and that the human resource system and organizational structure should match with organizational strategy. These generic functions are thus adumbrated:

(1) Selection: Ensures that the human resources at the disposal of the organization are matched to their jobs.

(2) Appraisal: Facilitates the management of performance.

(3) Development: Sees to it that the skills of employees are enhanced for suitable placement within the organization.

(4) Rewards: The reward system is often relegated to the background in certain organizations. However, it is vital to the point of serving as incentives or employees to put in their best in the future discharge of their statutory functions.

 

Figure 1. The Fombrun, Tichy and Devanna Model of HRM.

 

1.3.3 ER Strategies and OP

The first process in ER is recruitment. This strategy, considerably, determines the candidates that are needed to meet the goals of the organization. It ensures that the right people are hired for the right position within an organization in such a manner that engenders the attainment of the organizational objectives. Lending credence to this assertion, Delaney and Huselid[9] asserted that the determination of the right human resource in the organization facilitates the fulfillment of organizational goals and objectives as they go about their statutory duties.

 

The second strategy is that of selection strategy which presumes rightly that the number of candidates for the job outnumber the available job spaces[10]. The selection of candidates are routinely carried out using measuring instruments such as “tests, interviews, graphology, astrology, reference checks and assessment centers which are where multiple groups of candidates are assessed by multiple trained assessors as they undertake multiple exercises, some of which will be simulations or facsimiles of the job”. This means that the selection strategy is done to ascertain the suitability of candidates that will fill the available spaces.

 

The third strategy is placement. According to Siregar[4], placement strategy ensures that employees are assigned new tasks while taking their knowledge, skills and capacities into cognizance so as to achieve optimum results. It takes care of employee turn-over rate. Suffice it to say that employee turn-over rate ought to be at a minimum and such is feasible when there is a conducive working environment[11].

 

The fourth strategy in ER is career development. This strategy is fundamentally concerned with shoring up of the skills and knowledge of the employee so that they will be better equipped to discharge duties that will be assigned to them for the realization of organizational goals and objectives. It is considered as a worthwhile investment made by firm to give its employees competitive edge in the committee of industries. This calls for caution on the part of management in developing both individual and collective careers in the organization[12].

 

There have been studies on ER and OP but there appears to be no consonance on the measurement of the contribution of ER to OP. For instance, Kimera[13] examined the relationship between employment practices and 86 employee job performance in National Water and Sewage Corporation Jinja, Uganda using correlation research design. The findings from a Pearson’s correlation analysis revealed that all the two recruitment practices had a statistically significant positive relationship with employee job performance in NWSC Jinja area. Similarly, Constantine[14] investigated the impact of recruitment and selection policy on the performance of Tanzania’s business organization using 50 employees. The findings show that there are direct relationship between recruitment and selection policy, and organization employee’s performance. Going further, Sudiarditha et al.[5] determined and analyzed the influence of placement and career development on performance of 146 employees with job satisfaction as an intervening variable at the Ministry of Social Affairs of the Republic of Indonesia. The findings of the study revealed that the presence of employees is one of the triggers of low performance given the low effectiveness of employees in carrying out their duties and responsibilities. More so, Siregar[15] examined the effect on work placement and workload on 83 staff’s performance through competence in Indonesia. The findings of the study showed that work placement and workload had direct and significant effect on competence while work placement has no direct and no significant effect on performance.

 

The available literatures revealed a paucity of empirical investigation of the contributions of ER to OP. The depiction of available literature is that very few studies on ER and OP have been carried out in Nigeria particularly in companies other than the brewery. There exists a gap in literature which motivated the researchers to investigate the relationship between ER strategies and the performance of brewery companies in South East, Nigeria.

 

2 MATERIALS AND METHODS

Correlational survey design was considered for adoption in the current study. Correlational survey design is concerned with the relationship that exists between two or more variables. 3,222 employees of all the six (6) brewing companies in South-East Nigeria constituted the participants for the study. Data were collected from 315 employees through judgmental sampling technique using questionnaire. Given the study population; the Yamane’s[16] technique was used in determining the sample size.

 

The questionnaire is a 25-item instrument. The items (Appendix) were constructed in such a manner that the respondents will respond by opting for one of the four response categories viz: Strongly Disagree, Disagree, Agree, and Strongly Agree with numerical indices of 1, 2, 3 and 4. Validation of the drafts of the questionnaire were done by three experts in the Department of Business Administration, Nnamdi Azikiwe University, Awka. The reliability of the questionnaire was established with the use of Cronbach alpha statistics. The reliability coefficient obtained was 0.82. Analysis of data was carried out with the use of Pearson product moment correlation and Pearson Correlation Critical value table (Table 1).

 

Table 1. Pearson Product Moment Correlation and Pearson Correlation Critical Value

Notes: Null hypothesis would be rejected if the P-value is less than 0.05 alpha level. However, the null hypothesis would not be rejected if the P-value is greater than or equal to 0.05.

 

3 RESULTS

Data in Table 2 show that there is a high positive and significant relationship existing between employee recruitment strategies and the performance of brewery companies in South East Nigeria. P-value<0.05. This indicates that the more effective the employee recruitment strategies of brewery companies are, the better their performance. For selection strategies, the results show that there is a high positive and significant relationship between employee selection strategies and the performance of brewery companies in South East Nigeria. P-value<0.05. In other words, the more effective the employee selection strategies of brewery companies are, the better their performance.

 

For employee replacement strategies, data in Table 2 show that there is a high positive and significant relationship existing between employee placement strategies and the performance of brewery companies in South East Nigeria. P-value<0.05. It means that the more effective the employee placement strategies of brewery companies are, the better their performance.

 

Also as shown in Table 2, there is a very high positive and significant relationship existing between employee career development strategies and the performance of brewery companies in South East Nigeria. P-value<0.05. This indicates that the more effective the employee career development strategies of brewery companies are, the better their performance.

 

Table 2. Pearson r on the Relationship between Employee Recruitment Strategies, Employee Selection Strategies, Employee Placement Strategies, Employee Career Development Strategies and the Performance of Brewery Companies in South East Nigeria

Notes: Source: Field Survey, 2022.

 

4 DISCUSSION

In this section, discussion was made in line with the findings of the study.

 

4.1 Relationship between Employee Recruitment Strategies and the Performance of Brewery Companies

The revelation of the current research findings is that a high positive relationship existed between employee recruitment strategies and the performance of brewery companies in South East Nigeria. The deduction here is that the more robust the employee recruitment strategies are, the better the performance of brewery companies. This goes to show that employee recruitment strategies positively influence the performance of brewery companies. In other words, the more committed brewery companies are to employee recruitment, the better the performance of the companies. The finding of the study is in consonance with the observation of Ally[17] that observed positive effect of organization performance is seen in recruitment strategies. The finding of the current study further agrees with the stipulation of Abomeh and Blessing-C[18] that a strong positive relationship existed between effective recruitment and OP. This is a depiction of the fact that recruitment will bring in more employees into the organization and make for effectiveness in the workings of the organization. That way, OP is optimized.

 

The finding of the current research depicted that a positive significant relationship existed between employee recruitment strategies and the performance of brewery companies in South East Nigeria. This depicts that the thoughtful adoption of recruitment strategies is a sine qua non for optimum OP. The finding of the study is in tandem with the position of Kimera[13] to the effect that there was an existence of a significant positive relationship between all the two recruitment practices and employee job performance in NWSC Jinja area. Additionally, the blend of all internal as well as external recruitment practices predicted employee job performance in NWSC Jinja area.  

 

4.2 Relationship between Employee Selection Strategies and the Performance of Brewery Companies

The revelation of the finding of the study is that a high positive relationship existed between employee selection strategies and the performance of brewery companies in South East, Nigeria. This is understandably so given that performance of brewery companies can hardly be divorced from a thoughtful deployment of employee selection strategies. The selection of employees will prioritize job description and optimum performance will be the logical consequence. The finding of the current study is in collaboration with the position of Oaya et al.[19] which stated that a positive relationship existed between selection strategy and employee performance. This depicts that the recommendation of employee in the internal selection process facilitates organizational selection of devoted and product-oriented employees for organizational efficiency. The finding of the current study further agrees with the observation of Constantine[14] that a direct relationship existed between selection policy and performance of employees within an organization. In other words, well-articulated selection policy engenders the thoughtful selection of eminently qualified employees and optimum OP is the logical consequence.

 

Further revelation of the finding of the study was to the effect that a significant positive relationship existed between employee selection strategies and the performance of brewery companies in South East Nigeria. This shows that effective performance of brewery companies considerably hinges on the pragmatic use of selection strategies. The finding of the study is in tandem with the position of Adam et al.[20] that a statistically positive significant relationship existed between selection and the manner in which public water utilities perform. 

 

4.3 Relationship between Employee Placement Strategies and the Performance of Brewery Companies

The depiction of the finding of the study is that a high positive relationship existed between employee placement strategies and the performance of brewery companies. This is evidently so given that performance of brewery companies thrives on placement strategies. Put differently, when employees are placed in consideration of their experiences and competencies, performance of brewery companies, is to all intents and purposes guaranteed. The finding of the current study is in consonance with the position of Khaerudin et al.[21] that the variable placement have positive effects on employee performance. The finding of the current study is however in contradiction with that of Katua et al.[22] who averred that ER strategies such as placement had moderate positive correlation between resourcing and performance of banks. This contradiction may not be separated from sample characteristics. It could further be traced to the fact that while the reviewed study covered banks, the current study covered brewery companies. Thus, the peculiarities of the respondents in the disparate areas of study could be at the core of the apparent contradiction.

 

Further revelation of the finding of the study is to the effect that a significant positive relationship existed between placement strategies and the performance of brewery companies in South East Nigeria. The indication is that the mindful placement of employees goes a long way in determining the performance of the organization. The finding of the current research is in contradiction with the assertion of Siregar[15] that work placement has no direct and no significant effect on performance. This contradiction may not be separated from the peculiarities of the participants in the disparate area of study.

 

4.4 Relationship between Employee Career Development Strategies and the Performance of Brewery Companies

The finding of the study indicated that a high positive relationship existed between career development strategies and the performance of brewery companies. This may not be unconnected to the fact that the development of career of an employee will open their eyes to innovative ways of contributing their quota to the organization. That way, performance is enhanced. Buttressing the afore-mentioned point, when the career of an employee is developed, they are offered an opportunity to acquire more skills and gain more knowledge that will be targeted towards optimum OP. The finding of the current study is in contradiction with that of Ally[17] who observed that talent management positively affected organization performance. In other words, career development enhances the performance of an organization.

 

Further indication of the finding of the study is to the effect that a significant positive relationship existed between career development strategies and the performance of brewery companies. This is corroborated by the position of Munialo and Simiyu[23] that ER strategy such as career development had significant positive relationship with performance of Kibos Sugar and Allied Limited.

 

5 CONCLUSION

5.1 Conclusion

ER is central to OP. The deduction from the research findings is that the more robust the organizational commitment to matters of recruitment, selection, placement and career development is, the more effective the performance of the organization will be. In other words, the organization will record high turn-over, high profit margin, timely discharge of statutory duties and quality employees. More so, the quality service that will be rendered by the employees as a result of their exposure to career development will give the organization a competitive edge in the committee of industries. In view of the findings of the study, it was concluded that a high positive relationship existed between ER and performance of brewery companies. It was further concluded that a significant relationship existed between ER (employee recruitment, employee selection, employee placement and employee career development) and performance of brewery companies.

 

5.2 Recommendations

As a fallout of the findings of current study, certain recommendations were made. These include: Employers, in line with global trend, should promote the performance of brewery companies through employee recruitment strategy; Employers should endeavour to evolve a selection strategy that will ensure that only competent and professionally qualified employees are selected to ensure the optimum performance of brewery companies; Employers should organize seminars and workshops for the employees to ensure that their career is considerably developed for optimum performance in brewery companies; Employers should regularly organize placement test to ensure that employees are properly placed in consideration of their competencies. That way, performance of brewery companies is guaranteed.

 

5.3 Limitations of the Research

The following limitations were observed in the course of carrying out the study:

1. Uncooperative attitude of the respondents to volunteer information.

2. Difficulties in covering geographical spread.

However, these limitations observed in this study did not invalidate the findings of the study.

 

5.4 Suggestion for Further Studies

The following research topics are suggested for further studies:

1. A study on the influence of employees’ gender on organizational performance.

2. Examine the difference in the choice of employee resourcing strategy on employees’ job performance.

 

Acknowledgements

Not applicable.

 

Conflicts of Interest

The authors declared no conflict of interest exist in conduct of study.

 

Author Contribution

Ikwuka PC, Ikon MA, and Onwuchekwa FC contributed to the conception and design of the study. Ikwuka PC contributed to data collection, analysis and manuscript writing. All the authors contributed to drafting and revision of the manuscript and gave consent to the version to be published.

 

Abbreviation List

ER, Employee resourcing

OP, Organizational performance

 

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