CHAPTER ONE

INTRODUCTION

1.1            BACKGROUND OF THE STUDY

Managing human resource in an organization is both complex and challenging, the human element is considered as most crucial in the attainment of any organization objectives. Thus considerable attention should be given to human resources management bearing in mind that the quality of personnel in any organization is a means to an end, therefore, it will be right to say that man is the most valuable asset in an organization, though difficult to obtain, develop, motivate and retain amongst an organization assets.

Human resource management, like financial management and material are concerned with the utilization of resource to help achieve organization objectives, it does so by ensuring that the required human resources is available when needed and sued efficiently. Human being are very complex and because of their complexity, organization have tried to see that they are managed adequately over the last decade.. Human resource management have played a very great role in development and improvement of business enterprises at all level which include small scale, medium and large scale enterprises it has helped over the year in shaping or building the workability of organization resources which include labour (man power) machine utilization and effective use of funds.

However, most small scale enterprises faces lots of challenges in the time past, problems such as lack of proper record keeping, mismanagement of funds, lack of time management and many more but with the application or introduction of human resources management all these problems have been eradicated this is as a result of proper training and development, research, good recruitment process or recruitment of capable worker etc. therefore, the role of human capital on small scale enterprises can be over emphasis in our societies today.

1.2            STATEMENT OF THE PROBLEM

Small and medium enterprises (SMEs) in Nigeria have not performed creditably well and hence have not played the expected vital and vibrant role in the economic growth and development of Nigeria. This situation has been of great concern to the government, citizens. Operators, practitioners and the organized private sector group. Every year the government at FederalState and even local levels through budgetary allocations policies and pronouncements have shown interest in the sectors, and made attempts to energize it. This is not to talk of the various

grants both from within and outside the country as well as institutional supports created to help it grow. Despite these efforts geared towards making this sub-sector vibrant, the performances has fallen short of expectation. It is on record that most small and medium scale enterprises in Nigeria die before their third birthday (Owoseni, 2010). This seems to be the case with the Home Fresh Yoghourt in Kaduna, as other yoghourts, which when newly introduced are ubiquitous in the city, but gradually become obscure before the third year of existence.

In great and developed economies, SME’s account for as high as 64% of industrial employment, but in the case of Nigeria it has been estimated to be below 31%. This level of contribution is rather disturbing considering the high degree of unemployment rate in Nigeria as well as the poverty level. In a normal circumstance, it is expected that a smooth transition would occur from small and medium scale enterprises, where employees would be in thousands. This is what is expected of the Home Fresh Yoghourt. However, despite its years of existence, it has not gone beyond the small scale enterprise with which it started. It is not quoted on the stock market neither is it listed among the vibrant SMEs in Nigeria.

As mentioned by Onugu (2005). One of the vital factors that could be responsible for the disable performance of SMEs in Nigeria is lack of adequate human resources management could the low level performance of Home Fresh Yoghourt be due to poor human resource management. This is what this project set out to ascertain.

1.3            OBJECTIVES OF THE STUDY

The main objective of this study is to find out if there is adequate human resource management in small and medium scale enterprises (SMEs) typified by Home Fresh Yoghourt Kaduna and how applicable it is in the organization including the challenges  faced. Specifically the study seek to?

i.                   To find out how human capital management treat their employee  (Home Fresh Yoghurt)

ii.                 To find out their development and management of individual in line with their key responsibility areas not only make them an indispensible  resources in the future.

iii.              To find out if the employers of Home Fresh Yoghurt well train for effective and efficient of work

iv.              To find out if their employees are important resources that play an instrumental role in productivity of their organisation (Home Fresh Yoghurt

It hoped that the research work will also serve as a tool for managing human resources in small and medium scale enterprise. At the individual level this study will in simple term broaden the knowledge of individuals especially students of management studies in areas of human capital management on the organizational level and society at stage. This research work will present the importance of human capital management as a vital lubricant to the challenges or problems faced by small and medium scale enterprises.

1.4            SIGNIFICANT OF THE STUDY

This research work acts as a valuable reference on the challenges and prospects of human capital management it will also be very important to organization, employers labour students and any other person interested in expending the research work.

1.5            RESEARCH QUESTIONS

1.     What are the challenges faced by Human capital management regarding the organisation  (Home Fresh Yoghurt)

2    In what way the human capital management treat their employers in Home Fresh Yoghurt?

3    What are the key responsibility areas of human capital in developing small scale middle enterprises?

4    Are the employees of Home Fresh Yoghurt well train?

1.6     SCOPE OF THE STUDY

The research study intend to examine how home fresh yoghurt manages human capital. The scope of this research is intend to cover a period of (2006 – 2012). In evaluation of the challenges and prospects of human capital management of Home Fresh Yoghurt Ltd Kaduna.

1.7     DEFINATION OF TERMS

i.                   (SMSE) – Small and Medium Scale Enterprises.

ii.                 (NDE) – National Directorate for Employment.

iii.              (VERFUND) – National Economic Reconstruction Fund.

iv.              (BOI) – Bank of Industry.

v.                 Human Capital Management – Is the process of acquiring training Managing, retaining employees for them to contribute effectively.

vi.              Compensation: Is something such as money given or received as payment or reparation as for a service or loss.

vii.            Reward System: Is the act of compensating employees for improving in performance.

viii.         Motivation:  Achieving what you want in life.

ix.              Prospect:  Something that you expect or know is going to happen in the future or the thought of this.

x.                 Challenges:  Something that needs a lot of skill, energy and determination to deal with or achieve.