A Study of Human Resources Management Practices and Labour Turnover in the Manufacturing Organisations in Lagos, Nigeria

Abstract

The research focus was on the human resources management practices and its impact on labour turnover with reference to manufacturing organisations in Lagos State, Nigeria. The paper identified HRM practices in the two dimensions of economic cycles which were boom and recession periods. It investigated and assessed which of the HRM practices affect labour turnover under different economic cycles. The population of study consists of 156 organisations obtained through a preliminary survey of manufacturing organisations in the three senatorial districts of Lagos state namely Lagos West, Lagos Central and Lagos East which was based on the number of years of existence and a sample of 99 organisations representing 63% (33 from each of the senatorial district) was randomly selected from purposively chosen manufacturing organisation in Lagos which covers Agro industry, Confectionery, Brewery and Beverage businesses. The questionnaire was developed by using a five point Likert scale which was administered to a total number of 36 respondents who were General Managers/Administrative Executive, Human Resources Directors/Human Resources Managers or Managing Directors from each senatorial district totalling to 108 respondents. Descriptive statistics and simple percentage were used to analyse and interpret the data collected. The study reveals that HRM practices such as wages and salary, training and development, recruitment and placement as well as employee relations, performance appraisal, career development and lay off procedures were found in the boom and recession economic periods. The focus of the practices was on satisfaction of employees in order to prevent high labour turn over in the boom period while the focus of the practices in the recession period was mainly on organisational survival by way of cutting cost most especially in the area of human resource. It was recommended that the management of the organisations in the manufacturing sectors should understand the prevailing economic cycle so as to know the focus of their HRM practice, the department of human resources should be headed by an expert in the art of human resources management so as to provide dynamism in the wake of stiff hostility and favourable conditions in the business environment.