The purpose of this study is to investigate the impact of human resource on employee’s performance a study of selected oil and gas companies in rivers state. The researcher attempted to find the level of awareness of the respondents concerning human resource development. This study looked into the prospects and challenges posed by HR on employee’s performance. Furthermore, it attempted to know the efficient methods for evaluating employee’s performance, and in large, the influences of human resource in the oil and gas industry. The study used survey questionnaires as key research instruments which are all adapted from well known scholars and researchers in the field of HR. The respondents of this study are limited to thirty four (34) selected oil and gas companies in Rivers State were randomly selected to answer the survey questionnaire. The study revealed that there is a high level of awareness in all eleven given areas of concerns in the field of HR. The two efficient methods for evaluating employee’s performance in construction companies is found to be quality of employee’s performance and measurement of hours in the workplace. Generally, there is a meaningful relationship between HR and employee’s performance and productivity. Determining the profit is the best way to know the effectiveness of HR. On the other hand, the improvement of employee’s performance and increasing profit are the benefits of HR to employees and companies, respectively, increasing organizational development (OD) can mostly increase productivity and leadership is the first priority for human capital development in HR.

Table of Content

Title page                                                                                                    i

Certification                                                                                               ii

Acknowledgement                                                                                     iii

Abstract                                                                                                      iv

Table of content                                                                                         vi

List of table                                                                                                xi


1.1 Background to the Study                                                                      1

1.2 Statement of the Problem                                                                     8

1.3 Objective of the Study                                                                          9

1.4 Research Questions                                                                              10

1.5 Significance of the Study                                                                     10

1.6 Statement of the Hypotheses                                                                11

1.8 Scope  of  the Study                                                                              11

1.9 Definition of Terms                                                                               12


 2.0  Introduction                                                                                        13

2.1 Conceptual of Framework                                                                  10

2.1.1 Human Resource (HR)                                                               15

2.2 Human Resources Management (HRM) Practices                          16

2.3 Compensation                                                                              16

2.4 Career Planning                                                                            18

2.5 Training                                                                                       18

2.6 Employee Involvement                                                                 19

2.7 Performance Appraisal                                                                 20

2.8 Human Resources Management (HRM) Practices and Employee’s Performance                                                                                       21

2.8 Human Resources Management (HRM) Practices and Employee’s Performance                                                                                       22

2.10 Effect of HR on organizational performance                                23

2.11 Effect of training and development on employee performance 24

2.12 Steps in Human Resource                                                           25

2.2 Theoretical Framework                                                                 28

2.2.1 Benefits of Human Resource on Employee Performance             28

2.2.2 How Human Resource  Performs Effectively to

 Organization Plan                                                                             33

2.2.3 Need for Human Resource                                                                   36

2.2.4 Aims of Human Resource                                                                    37

2.2.5 Human Resource  and Manpower Planning                                          37

2.2.6 Pitfalls in Human Resource                                                                  38

2.2.7 Process of Human Resource                                                                 39

2.2.8 The Organization Context of Human Resource                                     41


3.1 Area of Study                                                                                     41

3.2 Research Design                                                                                42

3.3 Sources of Data                                                                                  43

3.4 Study  population                                                                               44

3.5 Sample Size Determination                                                                44

3.6 Sampling Technique and Procedure                                                  45

3.7 Instrumentations                                                                                 46

3.8 Validity                                                                                               46

3.9 Reliability                                                                                            47

3.10 Procedure for Data Collection/and Data Analysis                         78

3.11 Method of Data Analysis                                                                   78

3.12   Limitations of the Study                                                           49

CHAPTER FOUR: DATA ANALYSIS, AND INTERPRETATION                                                                                   

4.1 Data presentation And Interpretation                                                     51

4.2 Test of Hypothesis                                                                                  58

4.2.1 Testing of Hypothesis One                                                                  58

4.2.2 Testing of Hypothesis Two                                                                 61

4.2.3 Testing of Hypothesis Three                                                               63

4.3 Discussion of the Findings                                                                    65

4.2.4 Testing of Hypothesis Four                                                             66


5.1 Summary                                                                                                   69

5.2 Conclusions                                                                                                70  

5.3 Recommendations                                                                                      70

5.6 Suggestions for Further Studies                                                                 71

Reference                                                                                                         72

Appendix                                                                                                          75

Questionnaire                                                                                                   76



  1. Background of the Study

Human resources are the people who make up the workforce of an organizationbusiness sector, or economy. “Human capital” is sometimes used synonymously with “human resources”, although human capital typically refers to a more narrow effect (i.e., the knowledge the individuals embody and economic growth). Likewise, other terms sometimes used include “manpower”, “talent”, “labour”, “personnel”, or simply “people”.

A human-resources department (HR department) of an organization performs human resource management, overseeing various aspects of employment, such as compliance with labour law and employment standards, administration of employee benefits, and some aspects of recruitment and dismissal.

The role of human resource management (HRM) in the implementation and achievement of strategic management and subsequently improve human capabilities (Barney, 2007). Strategic human resource management (SHRM) literature tends to concentrate upon two points; firstly development and improve of core competitive and competencies advantage and, secondly the integration between the organization’s strategy and HRM strategy in achieving of profit and growth (Barney & Wright,2013). SHRM covers organizational and firms related to structure, management of change, organizational effectiveness, culture, performance, competence and matching resources to future business needs and employee development (Baird & Meshoulam,2001). Meanwhile, the technical and traditional HRM are concerned with the organizing role and functions, recruitment, performance measurement, selection, planning, training and development the administration of indemnification and benefits. However for SHRM it involves implementing and designing groups of internally consistent practices and policies which ensure that an organization’s human capital contributes to the fulfilment of its business goals (Baird & Meshoulam 2001).

Although people’s understanding of Human Resource (HR) differs, the general objective is how to use scarce talents in an effective way in the interest of work and organisation. Human Resource may be seen in its entirety as an effort to anticipate the future of the organisation and to provide personnel to fulfil that organisation and to satisfy customer’s demands.

According to Bulla and Scott (1994,p.66) as „the process of ensuring that human resource requirements of an organisation are identified and plans are made for satisfying those requirements‟. This view suggests several specific, interrelations activities that together constitute HR which include personnel inventory, human resource process, action plan, control and evaluation.

Human Resource is also the personnel process that attempt to provide adequate HR to achieve future organisational objectives. It includes forecasting future needs for employees of various types, comparing these needs with the present workforce and determining the numbers and types of employees to be recruited or phased out of the organisation’s employment group.

“Human resource is the system of matching the supply of people, internally (existing employees) and externally (those to be hired and searched for) with over a given time frame” (Watters cited in Byars & Rue, 2010). Human resource has two objectives; the optimum utilization of currently employed human resources and providing future HR needs in the areas of skills and numbers (Harvey & Bowin, 2009).

HR will enhance the process of decision making, encourage open discussion, bringing the right people together around the right questions, resolving conflicts among strong technical professionals, and managing emotional ups and downs of employees of the organisation.

Schein (2002) noted that, the more complex organizations become, the more they will be vulnerable to human error. They will not necessarily employ more people, but they will employ more sophisticated highly trained people both in managerial and in individual contributor, staff roles. The price of low motivation, turnover, poor productivity, sabotage, and intra-organizational conflict will be higher in such an organization.

The business environment is changing rapidly in this era and it made the business units to adopt the human resource management practices to compete in their industries and to make success. The impact of human resource management practices on employee performance has been the concentrated research area in recent past and a lot of studies have been conducted to validate this relationship. These studies found a positive relationship between almost each human resource management practice and employee performance (Mathison & Vinja, 2010; Rasheed, Aslam, Yousaf & Noor, 2011) oil and gas sector in oil industries has shown a tremendous growth in recent years and has become a huge industry.

So the employee retention is very difficult as other organizations offer more to the employees. So HRM practices become more critical for the sector.

Relationship among Human resource management practices and employees and organizational performance has been the concentrated research area in recent years, for. A lot of research work is done regarding to HRM practices in developed countries but very little work is done in developing countries like Nigeria (Aycan, 2000). In last decade a significant research work has been done in Nigeria but still there is a lot of research work needed to be done on HRM practices and their effects on oil and gas sector.

1.2 Statement of the Problem

In this research we will identify those determinants that can improve the organizational performance like selection criteria, hiring, training, and giving benefits and if they would follow those tools of human resource it would be easy to manage employees and in return it will increase the organizational performance in selected oil and gas sectors in Rivers State. 

1.3 Objectives of the Study

The purpose of this study is to examine human resource on employee’s performance a study of selected oil and gas companies in Rivers State:

The specific objective of the study are to:

  1. To help in managing staffing problems in selected oil and gas sector in Rivers State.
  2. To ensure effective utilization and maximum development of human resources in selected oil and gas sector in Rivers State.
  3. How Human Resource Management (HRM) practices affects Employee Performance in selected oil and gas sector in Rivers State.
  1. To ensure respect for human beings in selected oil and gas sector in Rivers State.

1.4 Research Questions

In view of the objectives of this study, an attempt will be made to address the following research questions:

  1. What are the managing staffing problems in selected oil and gas sector in Rivers State?
  2. What are the effective utilization and maximum development of human resources in selected oil and gas sector in Rivers State?
  3. What are the Human Resource Management (HRM) practices affects Employee Performance in selected oil and gas sector in Rivers State?
  4. Are they respect for human beings in selected oil and gas sector in Rivers State?

1.5 Significance of the Study               

The significance of this study can be viewed from both practical and theoretical perspectives. From the practical point of view, this study will be relevant to the management of selected oil and gas sector in Rivers State as it will broaden their knowledge on the relationship between the impact of human resource on employees performance.

From the theoretical point of view, the relevance of this study lies in the fact that its findings will add to the existing stock of  knowledge and fill the gap that exists in business literature. By so doing, researchers, authors, students and other scholars who may wish to carry out further research on this topic or related areas will find this study useful as it will serve as a good reference source.

1.6 Statement of the Hypotheses

The following research hypotheses were formulated:

Ho1:   There is no significant difference on managing staffing problems in selected oil and gas sector in Rivers State. 

Ho2:   There is no significant difference on effective utilization and maximum development of human resources in selected oil and gas sector in Rivers State.

Ho3:   There is no significant difference on Human Resource Management (HRM) practices affects Employee Performance in selected oil and gas sector in Rivers State.

Ho4:   There is no significant difference on respect for human beings in selected oil and gas sector in Rivers State.

1.7 Scope of the Study

The study is focused on the impact of human resource on employees performance a study of  selected oil and gas sector in Rivers State is based on online sources that are already available to the public. Most of the information was gathered from the selected oil and gas sector website and published articles. The purpose of the information gathered is to get detailed information on human resource on organizational performance, and the impact it has had on employees performance and success as well as analyze other challenges that employees performance has faced with regards to human resource.

1.8     Definition of Terms

Impact: A marked effect or influence

Human Resource: The department of a business or organization that deals with the hiring, administration, and training of staff.

Planning: The process of making plans for something.

Organizational Performance: Organizational performance comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives). … Specialists in many fields are concerned with organizational performance including strategic planners, operations, finance, legal, and organizational development.

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