Human Capital Selection Practices and Performance of Unionised Organisations in the Food, Beverage and Tobacco Industry in Lagos State, Nigeria

By Chidi, Odogwu Christopher | Ife Psychologia, March 2014 | Go to article overview

Human Capital Selection Practices and Performance of Unionised Organisations in the Food, Beverage and Tobacco Industry in Lagos State, Nigeria


Chidi, Odogwu Christopher, Ife Psychologia


The objective of the study is to investigate the effect of selection practices on performance of unionised organisations in the Food, Beverage and Tobacco Industiy in Lagos State. The adopted research design is the survey method. The organisations in the Food, Beverage and Tobacco Industiy in Lagos State constitute the population of the study. The target respondents for the survey were the executive management and senior employees in charge of human resource management functions. The proportional stratified sampling method was used to select equal sample of thirty (30) from each of the organisations surveyed. A total of four hundred and twenty (420) research subjects were drawn from fourteen respondent companies. However, 284 copies of questionnaire were properly completed and used for data analysis. This represents 68 per cent response rate. Validity estimate is 0.90 while the Cronbach's Alpha is 0.81 being the reliability coefficient of the instrument. The hypothesis for the study was tested using the Pearson Product Moment Correlation, Regression Model and Chi-square test of goodness-of-fit at 5 per cent level of significance. The result of hypothesis test shows that selection practices exhibited positive and significant relationship with all measures of performance. Rate of sales (r = 0.272; p< 0.01); innovativeness (r = 0.261; p< 0.01); growth in employees (r = 0.232; p< 0.01); performance stability (r = 0.235; p< 0.01; operational efficiency (r = 0.227; p< 0.01); public image (r = 0.146; p< 0.05); staff morale (r = 0.201; p< 0.01); adaptability (r = 0.183; p< 0.01); market share (r = 0.143; p< 0.05); and profitability (r = 0.174; p< 0.01). The Chi-square test of goodness-of-fit also confirmed that selection practices affect performance of unionised organisations (x^sup 2^ = 130.19, df =2, p< 0.01).The regression model also confirmed the same result. From the foregoing, it is recommended that organisations should put in place policies to guide the conduct of selection practices in order to achieve optimal performance. Government policies on preferential quota system and Federal Character Principle with respect to selection in some public sector organisations need to be re-examined with a view to improving performance of such organisations. Thus, for organisations in the Food, Beverage and Tobacco industry to achieve quantum leap in their performance indices, the selection function must be properly and professionally practised to yield the required results.

Keywords and phrases: Human Capital, Selection Practices, Performance, Unionised Organisations, Nigeria

(ProQuest: ... denotes formulae omitted.)

Human capital of an organisation consists of the people who work there and on whom the success of the business depends" (Armstrong, 2006, p.8). Armstrong further argues that the human capital can be regarded as the prime asset of an organisation and businesses need to invest in that asset to ensure their survival and growth. Armstrong (2009, p.10) asserts that the notion that "people should be regarded as assets rather than variable costs, in other words treated as human capital was originally advanced by Beer, Spector, Lawrence, Quinn Mills and Walton in 1984". Bontis, Dragonetti, Jacobsen and Roos (1999) view human capital as representing the human factor in the organisation; the combined intelligence, skills and expertise that gives the organisation its distinctive character. Selection is the process of evaluating those who have been searched for and obtained through recruitment with a view to deciding whether they can be employed or not. It is also the process of choosing the individual or individuals who best meet the job-related criteria. "Selection is a decision-making activity: the psychological calculation of suitability" (Price, 2004, p.408).

Many scholars have viewed the concept of organisational performance from different perspectives, and this has been problematic since there are no universal or unified criteria for measuring the concept of organisational performance as all organisations have multiple goals (Thompson, 1967). …

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Human Capital Selection Practices and Performance of Unionised Organisations in the Food, Beverage and Tobacco Industry in Lagos State, Nigeria
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