The Relationship between HR Competencies and Organizational Performance in the Banking Sector in Nigeria

Choi Sang Long, Goh Chin Fei, Uti Charles Amechi, Tan Owee Kowang

Abstract


This study investigated the relationship between HR competencies and organizational performance by adapting the Ulrich HR Role Model. The study also examined HR competencies such as strategic positioner, credible activist, capability builder, change champion, HR innovator/integrator, technology proponent and project facilitator. The research is based on 215 HR professionals from 20 consolidated banks located in South-West Nigeria. A quantitative approach was used for the analysis. The findings revealed that all HR competencies also have significant correlation with organizational performance. Furthermore, competency such as strategic positioner and technology proponent provide most impact to organizational performance.


Full Text:

PDF

References


Adeniji, A. A., Osibanjo, O. A., & Abiodun, A. J. (2013). Organizational Change and Human Resource Management Interventions: An Investigation of the Nigerian Banking Industry. Serbian Journal of Management, 8(2), 1-16.

Aitchison, D. (2007). HR Transformation: Myth or Reality. HROA Europe and Sharedpertise Forums in Association with TPI. Survey reports January 2007.

Almamun, S. A. (2009). Human Resource Accounting (HRA) Disclosure of Bangladehi Companies and Its Association with Corporate Characteristics, BRAC University Journal, VI (1), 35-43.

Bhatnagar, J., & Sharma, A. (2005). The Indian Perspective of Strategic HR Roles and Organisational Learning Capacity. International Journal of Human Resource Management, 16(9), 1711-1739. https://doi.org/10.1080/09585190500239424

Boselie, P., & Paauwe, J. (2004). Human Resource Function Competencies in Europe Companies. Personnel Review, 34(5), 550-566. https://doi.org/10.1108/00483480510612512

Bourne, M., & Franco, S. M. (2010). Investors in People, Managerial Capabilities and Performance. A Study Conducted by the Centre for Business Performance. Cranfield School of Management. Cranfield University.

Brockbank, W., & Ulrich, D. (2003). Competencies for the New HR: Society for Human Resource Management, University of Michigan Business School, Global Consulting Alliance.

Brockbank, W., Sioli, A., & Ulrich, D. (2002). So we are at the table! Now what?, working paper, University of Michigan Business School, Ann Arbor, ML, Retrieved July 19, 2013 from World Wide Web: http://webuser.bus.umich.edu/Programs/hrcs/res_NowWhat.htm

Chandra, N. (2009). Performance Measures: An Application of Economic Value Added. International Journal of Business and Management, 4(7), 739-752.

Christiansen, L. C., & Higgs, M. (2008). Do HR Competencies Enable Organizations To Perform More Effectively? An Empirical Study of HR Competencies and Organizational Performance in Danish Companies. The Bristish Academy of Management Conference.

Clark, I., & Cooling T. (2005). The Management of Human Resources in Project Management-led Organizations. Personnel Review, 34(2), 178-191. https://doi.org/10.1108/00483480510579411

Coles, J. L., Lemmon, M. L., & Wang, Y. A. (2009). The Joint Determinants of Managerial Ownership, Board Independence, and Firm Performance. AFA Annual Meeting.

Conner, J., & Ulrich, D. (1996). Human Resource Roles: Creating value, not rhetoric. HR. Human Resource Planning: Tempe, 19(3), 38.

Datta, D. K. (1991). Organizational Fit and Acquisition Performance Effects of Post-Acquisition Integration. Strategic Management Journal, 12(4), 281-297. https://doi.org/10.1002/smj.4250120404

Golden, B. R. (1992). SBU Strategy and Performance: The Moderating Effects of the Corporate-SBU Relationship. Strategic Management Journal, 13(2), 145-158. https://doi.org/10.1002/smj.4250130206

Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate Data Analysis, 6th Ed, Pearson Prentice Hall, Upper Saddle River, N. J.

Harold, K. (2003). Project Management: A Systems Approach to Planning, Scheduling and Controlling; Blackwell publishing.

Kim, H., & Sung, C. K. (2011). Strategic HR Functions and Firm Performance: The Moderating Effects of High-Involvement Work Practice. Asia Pacific Journal of Management, 30(1), 91-113. https://doi.org/10.1007/s10490-011-9264-6

Kovach, K., Hughs, A., Fagan, P., & Maggitti, P. (2002). Administrative and Strategic Advantages of HRIS. Employment Relations Today, 6. https://doi.org/10.1002/ert.10039

Krejcie, R.V., & Morgan, D. W. (1970). Determining Sample Size for Research Activity. Educational and Phychological Measurement, 30, 607-610. https://doi.org/10.1177/001316447003000308

Lahteenmaki, S., Storey, J., & Vanhala, S. (1988). HRM and Company Performance: The Use of Measurement and the Influence of Economic Cycles. Human Resource Management Journal, 8(2), 51-65. https://doi.org/10.1111/j.1748-8583.1998.tb00166.x

Lawler, E. E., & Mohrman, A. M. (2003). Creating a strategic human resource organization: An assessment of trends and new directions. Stanford, CA: Stanford University Press.

Lee, F., Lee, T., & Wu, W. (2010). The Relationship between Human Resource Management Practices, Business Strategy and Firm Performance: Evidence from Steel Industry in Taiwan; The International Journal of Human Resource Management, 21(9), 1351-1372. https://doi.org/10.1080/09585192.2010.488428

Levenson, A. (2005). Do Competencies Drive Organizational Performance? Can They? Evidence and Implications for Professional and HR Competencies. Center for Effective Organizations Working Paper. University of Southern California.

Levenson, A., Van der Stede, W., & Cohen, S. (2005). Measuring the Relationship Between Managerial Competencies and Performance. Center for Effective Organizations Working Paper. University of Southern California.

Liu, H., Fu, Y., Wang, X., & Fang, Y. (2014, June). Empirical Analysis of the Relationship between HR Professionals‘ Competency and Enterprise Performance. In 2014 International Conference on Management Science and Management Innovation (MSMI 2014). Atlantis Press. https://doi.org/10.2991/msmi-14.2014.96

Long, C. S., & Wan, K. W. I. (2008). Understanding the Relationship of HR Competencies and Roles of Malaysian Human Resource Professionals. European Journal of Social Sciences, 7(1), 88-103.

Losey, M. (1999). Mastering the Competencies of HR Management. Human Resource Management, 38(2), 99-103. https://doi.org/10.1002/(SICI)1099-050X(199922)38:2<99::AID-HRM3>3.0.CO;2-T

Martins, L. P. (2007). A Holistic Framework for the Strategic Management of First Tier Managers. Management Decision, 45(3), 616-641. https://doi.org/10.1108/00251740710745151

Mugavin, B. (2012). Project Management for Human Resources Professionals. FlashpointHR. Retrieved June 19, 2013, from World Wide Web: http://www.flashpointHR.com/pdf/articles/C4/0C37EB5.asp?Type=51andCategory=1357.

Mukherjee, A. (2001). HR Transformation – Can Technology Help? Available at: www.humanlinks.com/manres/articles/hr transformation.htm.

Paauwe, J., & Boselie, P. (2005). Best Practices in spite of Performance: Just a Matter of Imitation? International Journal of Human Resource Management, 16(6), 987-1003. https://doi.org/10.1080/09585190500120798

Paschke, J. (2009). Adaptive IT Capability and its Impact on the Competitiveness of Firms: A Dynamic Capability Perspective. PhD Thesis. School of Business Information Technology Business College RMIT University.

Pietersen, F. L., & Englebrecht, A. S. (2005). The Strategic Partnership Role of Senior Human Resource Managers in South African organizations. Management Dynamics, 14(4), 47-58.

Ramlall, S. J. (2006). Identifying and Understanding HR Competencies and their Relationship to Organizational Practices. Applied HRM Research, 11(1), 27-38.

Richard, P., Devinney, T., Yip, G., & Johnson, G. (2009). Measuring Organizational Performance: Towards Methodological Best Practice, Journal of Management, 35(3), 718-804. https://doi.org/10.1177/0149206308330560

Russell, C. J. (2001). A Longitudinal Study of Top-Level Executive Performance. Journal Applied Psychology, 86(4), 560-573. https://doi.org/10.1037/0021-9010.86.4.560

Scott, B. (2008). How to Become an Internal Consultant. Personnel Today. Retrieved 17 April, 2013 from World Wide Web: http://www.humanresourcemagazine.com.au/articles/B5/0C53EB5.asp?Type =61andCategory=1524

Sekaran, U. (2003). Research Method for Business: A Skilled Building Approach (4th Ed.). 605 John Wiley & Sons Inc. Third Avenue: New York.

Selmer, J., & Chiu, R. (2004). Required Human Resource Competencies in the Future: A Framework for Developing HR Executives in Hong Kong. Journal of World Business, 39(4), 324-336. https://doi.org/10.1016/j.jwb.2004.08.001

Som, A. (2008). Innovative Human Resource Management and Corporate Performance in the context of Economic Liberalization in India, The International Journal of Human Resource Management, 19(7), 1278-1297. https://doi.org/10.1080/09585190802110075

Ulrich, D. (1997). Human Resource Champions: The next Agenda for Adding Value and Delivering Results. Harvard Business School Press. Retrieved May 17, 2013, from World Wide Web: www.gowerpub.com/pdf/HR Business Partner Ch1.pdf

Ulrich, D., & Brockbank, W. (2001). Roles and Competencies of HR Professionals. Organization, People and HR: The General Manager Agenda. Retrieved August 5, 2013, from http://webuser.bus.edu/Programs/hrcs/res OrgPeople.htm.

Ulrich, D., & Brockbank, W. (2005). The HR Value Proposition. Harvard Business School Press, Boston, MA.

Ulrich, D., Brockbank, W., Johnson, D., & Younger, J. (2007). Human Resource Competencies: Responding to Increased Expectations. Employment Relations Today. (Wiley), 34(3), 1-12. https://doi.org/10.1002/ert.20159

Ulrich, D., Brockbank, W., Johnson, D., Sandholtz, K., & Younger, J. (2008). HR Competencies: Master at the Intersection of People and Business, The RBL Institute, The Society for HRM.

Ulrich, D., Brockbank, W., Younger, J., & Ulrich, M. (2012), HR Talent and the New HR Competencies, Strategic HR Review, 11(4), 217-222. https://doi.org/10.1108/14754391211234940

Wright, P. M., Snell, S. A., & Dyer, L. (2005). New Models of Strategic HRM in a Global Context, International Journal of Human Resource Management, 16(6), 875-881. https://doi.org/10.1080/09585190500120814




DOI: https://doi.org/10.5296/ijhrs.v8i1.12495

Copyright (c) 2018 Choi Sang Long, Goh Chin Fei, Uti Charles Amechi

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

International Journal of Human Resource Studies  ISSN 2162-3058

Email: ijhrs@macrothink.org

Copyright © Macrothink Institute  

To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.

------------------------------------------------------------------------------------------------------------------------------------------------------