CHAPTER ONE
INTRODUCTION
- Background of the Study
In order to secure viability and growth, a crucial goal for any organisation is to perform well and achieve good results. There can be many means to achieve this, and one possibility is to manage the organisation’s human resources in such a way that they give rise to increased performance and improved organisational results. Organisations have increasingly acknowledged the fact that the company’s human resources are valuable and can be a unique source for competitive advantage. As Barney (1991) notes, the people working in organisations can be a source for competitive advantage unlike any other resource, in the way that they can be rare and hard to imitate by competitors. We now see nearly all larger companies having departments and employees exclusively dedicated to the management of their human resources.
Human Resource Management (HRM) has increasingly become a strategic contributor that, in principle, could add significant value to the organisations.
The idea behind the assumption that HRM significantly contributes to organizational results is that the HR practices affects the employees in a positive matter, e.g. by increasing job satisfaction and motivation, which in turn affects the sales performance, such as the quantity and quality of
the products and services, which again will have positive effect on sales performance of a company, like return on assets, revenue, and market share (Paauwe and Richardson, 1997). This presumed connection between HRM and organisational performance has received much support from empirical research, where they have investigated both systems of HR practices and single practices’ effects on organisational performance. This system is believed to consist of several coherent and reinforcing HR practices, which together support each other in creating more committed, motivated, satisfied and skilled employees, which in turn has a positive effect on the sales performance of the organisation. Included in these systems are practice such as selection and recruitment, training and development, performance and appraisal, performance-based compensation and other practices like extensive information sharing, job security, welfare benefits and grievance system. This idea is logical itself: you recruit employees who are believed to perform well in the organization, you praise and reword the employees who meet or exceeds your expectation, you train and develop the employees to perform even better; and in between these more strategic practices the employees experience safety, inclusion, and commitment through other HR practices and policies, which creates a healthy work environment that reduces absenteeism and make the employees want to stay with the company.
Armstrong (2009) defines Human Resource Management (HRM) as a strategic and coherent approach to the management of an organization’s most valued assets; that is, the people working there who individually and collectively contribute to the achievement of its objectives. Moreover, Human resource management practices can be defined as a set of organizational activities that aims at managing a pool of human capital and ensuring that this capital is employed towards the achievement of organizational objectives (Wright and Boswell, 2002).
The adoption of certain bundles of human resource management practices has the ability to positively influence organization performance by creating powerful connections or to detract from performance when certain combinations of practices are inadvertently placed in the mix (Wagar and Rondeau, 2006). (Klein, 2004) Achieving better sales performance requires successful, effective and efficient exploit of organization resources and competencies in order to create and sustain competitive position locally and globally. HRM policies on selection, training and development, performance appraisal, compensation, promotion, incentives, work design, participation, involvement, communication, employment security, etc. must be formulated and implemented by HRM specialist with the help of line managers to achieve the following outcomes: competence, cooperation with management, cooperation among employees, motivation, commitment, satisfaction, retention, presence, etc.
In fact, Ahmad and Schroeder (2003) found a positive influence of human resource management practices (information sharing, extensive training, selective hiring, compensation and incentives, status differences, employment security, and decentralization and use of teams) on organizational, performance as operational performance (quality, cost reduction, flexibility, deliverability and commitment). In furtherance of this assertion, Sang (2005) established a positive influence of human resource management practices namely,(human resource planning, staffing, incentives, appraisal, training, team work, employee participation, status difference, employment security) on organization performance.
In DPT the sales functions is performed by the sales personnel working in contact with customers and colleagues, attempting to translate the available products to meet the customer’s needs(Kaario et al. 2003).
The importance of how sales and sales performance is measured can be considered critical to company’s success, but how it is measured, and on what basis? As a sales process becomes more complex, evolving from product sales to service sales (Storbacka et al. 2009).
Poncheri (2006) explainedthat organization citizenship behavior have significant impact on performance of organization(OCB) not relevant to individual duties, it is related to the organization’s functions and duties which is significant to improve the organizational effectiveness or performance.Morhd/Griffin explained that organizational citizenship behavior creativity and adaptation leads to the organizational effectiveness and work related management in HRM (1375, 132)
Torraco and Swanson (1995) observed the positive relationship between employee development and organizational performance.
The connection between HRM and organizationalperformance is considered a “black box” that is absence of clarity as to, what leads to what. Gerhart (2007). In this study we fill the gap of previous studies and more observe the procedure through which HRM policies, procedures techniques can affect sales performance of the organization.
The digital pay television is not only capital intensive, where the important component of capital is to assess and ensure the growth of the strong network but also the core competencies, skills of management, performances, qualification and abilities of management are the dense drivers to increase the achievement of digital pay television profits and the sustainability of business. No doubt that digital pay television internationally is known for entertainment and customer’s satisfaction. For the purpose of this, digital pay television have to get and apply their human resource effectively and efficiently. Digital pay television (DPT) have to be aware of human resource needs, to know about HRM more realistically and organizations have to keep their human resource up-to-date. (Researchers observation 2018)
Digital pay TV origin is traceable to the 80’s with the American, British, French and Dutch TV all in full swing across Europe. In Africa, we have handful of pay TVs. They includes Multi TV, Daarsat, Trend TV, My TV, Dstv, Gotv etc. Multi-choice owns both Dstv and gotv where our research is focused. Multi-choice was launched in South Africa in October 1995 with its Head quarter in Fernadale Ransburg, Dstv is its major direct broadcast. It was registered in Nigeria in 1993 and came into force on April 1994 with its head quarter in Victoria Island, Lagos. It has Adewunmiogunsanya as chairman. (multichoice Wikipedia)
Competitive pay TVs in Nigeria includes:
Star time, Hi TV, Ctl, metro, Consat, DSTV etc. Above all the higher definition (HD) transmission of dstv has monopolized the market in their favor. Dstv appeals to Nigerians and has entertained the most through its different group of channels in bouquets also a highlight of supper sports. This consolidate sales performance and create competitive advantage as a result of social complex of policies and practice that rivals may not be able to replicate their diversity. (Field work by the researcher 2018).
1.1Statement of Problem
There may be other valid reasons why people select and stay with a particular PAY TV. Thus, quality transmission in higher definition HD has been a factor why Multi-choice Nigeria is trending among other PAY TVs. In today’s entertainment world, the very survival of any PAY TV depends on customer satisfaction. Those who do not meet the customer expectations will find survival difficult.
Management of people and keeping subscribers (retention) are two major challenges facing the entertainment industry where the pay TV marks its significance.In terms of management of people, sales personnel’s do not perform as expected or required, but the reason isn’t completely clear, as a result of knowing what to do to address the problem can be difficult. When such happens HRM will be tempted to act hastily through various available resources in hopes of turning things around quickly.
In terms of keeping the subscribers, Due to the high price of the selected PAY TV, most of the subscribers are no more interested in its services rather going for their rivals which have low cost. This is also traceable to the current ecomomic situation that has adversely affected a lot of low income earners.HRM has sank into oblivion to most of the uprising PAY TVs in the Port Harcourt metropolis (Nigerian) and it is about time these organizations realize the role and impact of HRM on sales performance and worked towards properly harnessing their manpower to quality service delivery. It is in the face of this existing state that the researcher wishes to establish the impact of HRM on Digital PAY TV organization, sales performance and how it can, through appropriate HRM practices improve performance and service delivery to the general populace.
1.3 CONCEPTUAL FRAME WORK
Researcher’s concept, 2018
1.4Aims and Objectives of the Study
The objective of this study are divided into two, the general and the specific objective
1.4.1General purpose of the study
In the light of above outline, the goal of this study is to test the effects
Of human resource management on sales performance of digital pay TV organization within the entertainment sector in Port Harcourt, Nigeria.
1.4.2Specific purpose
The sub goals included are as follow:
a) To examine the influence of human resource management on
Organizational sales performance in Port Harcourt rivers state.
b) The effect of employee development on sales performance of
Digital pay TVorganization.
c) The impact of sales performance on digital pay TV.
d) The purpose is to introduce the relationship of human resource management and sales performance in digital pay TV and
e) The effect of human resource management and sales performance on digital pay TV in Port Harcourt rivers state.
1.5Research Questions
1. What are the general HR practices existing in the selected digital pay TV?
2. What are the perceptions of sales personnel and managers about HRM of the selected digital pay TV?
3. To what extent do these practices impact on the achievement of organizational (PAY TV) goals?
4. What practices can ensure the proper management of human resource and impact on the sales performance of the selected pay TV in Port Harcourt rivers state?
1.6 Research Hypotheses
Ho1: there is no significant relationship between the HRM and sales performance in digital pay TV.
Ho2: there is no significant relationship between the sales performance and organizational goal
Ho3: there is no significant relationship between employee development and sales performance.
1.7Significance of the Study
Digital pay TVs has changed from who runs the best adverts, has an international status, is prestigious, or has the finest offices to who develops innovative products, manages risks, is IT friendly, has great customer relationship management and keeps the customer coming back. PAY TVs will need employees with special skills and abilities, right attitudes and behaviors to make these happen. Sales performance culminating into effectiveness, efficiency, success and development depend on the optimal utilization of human resource. Notwithstanding the level of technology, pay TV is primarily a labor intensive service sector.
Hence it will not be possible for digital pay TV to sustain performance unless human resource management is given prim importance because the technology is only an aid to human effort and not a substitution thereof. Digital pay TVs will need to create competitive advantage through their sales personnel, because no meaningful change is possible without the proper management of human resources, organizations would have to emphasis on using human resources and sales to differentiate in the competitive environment. It is a recognized fact that HR occupies a unique and sensitive position in the PAY TVs; therefore a study of this nature will help the selected pay TVs to appreciate the impact of HRM and sale performance. This study will propose appropriate HRM strategies, policies, processes, programs and practices and the possible outcomes in the pay TV settings. It will also provide insights into adopting the “best fit” practices as strategic response for pay TV in the near future. The larger community stands to benefit since the improved sales performance of pay TV will enhance the living standard of mostly the majority dealers and the branded stores that deals with them and contribute significantly to the growth of the Nigerian economy. This study will prompt policy makers and implementers to pay due attention to HRM practices and the role of HRM strategies in achieving organizational (sales) goals. The academic significance of this work is to add to existing theories on HRM and sales, serve as reference to those engaged in other related studies and create the leeway for another to further research into HRM and sales performance. To the organization : The findings and recommendations will provide a solid basis for digital pay TV to properly manage their human resources and serve as an opportunity for the selected pay TV to improve sales performance with existing workforce. To the society: The study is to add the knowledge of HRM concept in Nigeria corporate world and serve as reference for future studies.
1.8Scope of Study
Context scope
The study examines the major impact of human resources management on sales performance in Digital pay TV organization, multi-choice Nigeria.
Geographical scope
For the purpose of this study, the research is streamlined to Pay TV organization in Port Harcourt rivers state, multi-choice as a study.
Unit/level: the top level managers and the sales personnels of the selected pay TV under this study will form the respondent of this study
1.9Limitation of Study
The basic challenge encountered in the course of writing this project has to do with finance. The researcher needed money to cover the cost of stationary items and travelling for data. It was difficult meeting the top-level management of the company for interview. The sales personnel were difficult to come by, they are always on the field and the managers hardly stay in their offices for long hours. Also limited time was allowed by management of the company for the researcher to interact with each of the sampled employees for data. Retrieval of questionnaires administered was difficult from the sampled employees. Some of the employees who were sampled to answer the questionnaires were reluctant to provide their demographic information to the researcher. Thus, the researcher had to convince and assure them of keeping the information confidential before they interacted with him.
1.10 Definition of Terms:
HRM: defines Human Resource Management (HRM) as a strategic and coherent approach to the management of an organization’s most valued assets; that is, the people working there who individually and collectively contribute to the achievement of its objectives.
HD: higher definition transmission
Organization:this is an organized group of people with a particular purpose.
Sales performance: this is the measurement of sales that an employee makes for business
Digital: this means involving and relating to the use of technology
Pay TV: this means television broadcasting in which viewers pay subscription to watch a particular/selected or grouped channel(s).
Organizational goal: this is a strategic objective that a company’s management establishes to outline expected outcomes and guide employee’s effort.
1.11Organization of the Study
This work is organized into five chapters. The first chapter is the introductory chapter and it comprises; background to the study, statement of the problem, research questions which raise research objectives. It also covers the significance of the study and the sequential arrangement of the study.
Chapter two provides a broad background for the subsequent chapters and an extensive review of existing research works on the concepts and theories which give a better understanding of the subject matter.
Chapter three encompasses the methodology to the study. It provides for research design; procedure and method, population covered by the study, description of the study area, sampling techniques, instruments, data collection procedure and analysis. A review of the methodology is provided under this chapter.
Chapter four focuses on data analysis and interpretation of the results and discussions whiles Chapter five embodies the conclusions drawn based on the findings of the study upon which recommendations are made as well as directions for future research on the subject matter.