EFFECTS OF HUMAN RESOURCE MANAGEMENT PRACTICE TRANSFER ON
THE PERFORMANCE BETWEEN HOME AND HOST COUNTRIES OF MNEs
(A CASE STUDY OF 7UP BOTTLING COMPANY, ILORIN PLANT)
BY
MATRIC NO: 18D/7HBA/00132
BEING A RESEARCH PROJECT0 SUBMITTED AND PRESENTED TO THE
DEPARTMENT OF BUSINESS AND ENTREPRENEURSHIP; COLLEGE OF
HUMANITIES, MANAGEMENT AND SOCIAL SCIENCE, KWARA STATE
UNIVERSITY, MALETE, KWARA STATE
IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF
BACHELOR OF SCIENCE DEGREE (B.Sc.) IN BUSINESS ADMINISTRATION
SUPERVISOR: DR. Bisayo Otokiti
2020
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CHAPTER ONE
INTRODUCTION
1.1
Background of the Study
The primary reason why MNCs (multinational corporations) exist is because of their ability to
transfer and exploit knowledge more effectively and efficiently in the intra-corporate context
than through external market mechanisms. The successful transfer of HRM practices and
procedures from the parent company to the subsidiary established in the host country is a
prerequisite for achieving effective management of human resources in international
organizations. As more multinational enterprises are expanding their international operations,
they are becoming more exposed and also gaining experience in the diversity of cultures,
customs and practices in each country in which their subsidiaries are located. A Multinational
enterprise or company is a company that is headquartered in one country and has significant
operations as well as employees in other countries (adapted from: Rugman & Hodgetts 2000).
These multinational enterprises rapidly fall in the dilemma of deciding whether to globally
standardize their human resource management approach or to locally adapt their human resource
policies. The issue of convergence versus divergence becomes a major concern for these
multinational companies (Rowley & Benson, 2002). According to Albrow (1997), globalization
is defined as the “diffusion of practices that have an influence on people’s lives worldwide”. It is
argued that multinational companies are one of the vehicles diffusing these practices because one
important activity for a global MNC is to transfer its practices around the world (Govindarajan &
Gupta, 2001). Globalization and international trade and finance make pressures on multinational
companies to standardize policies and practices. Standardization is using headquarter practices
across international operations to ensure consistency, transparency and an alignment of a
geographically fragmented workforce around common principles and objectives (Evans, 2002).
It is important here to distinguish between a policy and a practice. A policy describes the
abstract, strategic, general ideas whereas a practice describes the actual day to day operation or
implementation of an HR issue.
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The human resources transferring practices can help to build the coherence within an MNC.
However, parts of the difficulties are linked to local adaptation. For instance, foreign companies
may have difficulties to get access to information on the entry market, which, in return can
complicate the transfer process. The question on successful transfer of management practices
still remains as a crucial issue (Kogut & Singh, 1988). Against a backdrop of multinational
corporations (MNCs), globalization, emerging markets, increasing internationalization and cross
national activity by MNCs, there is a need to focus on the implementation of international human
resource management practices and policy making.
Human resource management sets the
boundaries for the relationship between the employee and the organization. Multinational
corporations may be identified as the main agents of the globalization phenomena and the
internationalization of business (Child, 2000). Such a claim is easily supported by statistics on
international trade and business.
MNCs ability to be competitive in today’s international market is contingent to their ability to
evolve and adapt key resources to the broadening global playing field. Therefore, strategies to
maintain market competitiveness should be developed along with human resource management
practices (Caligiuri & Stroh, 1995; Tayeb, 1998). When HRM practices are congruent with
MNCs strategies the implementation of business plans is facilitated (Bartlett & Ghosal, 1994;
Pucik, 1984). This is due to the direct relationship between business success and the employees
of an organization, who make decisions, market and create products, implement programs, etc.
Strategic HRM practices are those which maximize an employee’s effectiveness in relation to an
MNC‟s objectives. This leaves an excessive portion of success and failure to the HR manager’s
ability to develop practices which maintain congruence with the overall strategic plan of the
MNC within the economic, political, legal, social and cultural constraints of the subsidiary/host
country (Milliman, 1991). According to Adler (2001), convergence at the global level in terms of
economic forces and production technologies may result in divergence at the national level as
such forces are mediated by different institutions with their own traditions and deep-seated
cultural differences, not susceptible to rapid change.
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1.2
Statement of the Problem
Human resource has been considered or described by many human resource writers as the most
valuable resource of an organization. Despite the complex nature of human beings, which is their
personality, character and the ability to achieve goals, people differ in all aspects. People are in
constant demand, but, cannot be easily replaced by technology or moved around like finance.
Many multinational firms are striving hard to make and also meet up with their competitors in
the global world; steps are being taken to transfer resources from the host and home country
because of the need for effective planning of the organization. The issue of service transfer from
the host country to home has been a major discussion in the past years (Raven, 2014). It is on
this note that this research topic human resource transfer between home and host country and
organizational performance.
1.3
Research Questions
For the purpose of this study, the following research questions were set;
i.
To what extent does training and development affect the efficiency of 7up bottling
company, Ilorin Plant?
ii.
How does training and development affect the effectiveness of 7up bottling company,
Ilorin Plant?
iii.
To what extent does employees’ appraisal affect the effectiveness of 7up bottling
company, Ilorin Plant?
iv.
In what way does employees’ appraisal affect the efficiency of 7up bottling company,
Ilorin Plant?
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1.4
Research Objectives
The primary objective of this study was to examine the effects of human resource management
practice transfer on the performance between home and host countries of MNEs (A case study of
7up bottling company, Ilorin plant). However the secondary objectives are to;
i.
identify the effect of training and development towards the efficiency of 7up bottling
company, Ilorin Plant,
ii.
examine the significant impact of training and development on the effectiveness of 7up
bottling company, Ilorin Plant,
iii.
ascertain the effect of employees’ appraisal on the efficiency of 7up bottling company,
Ilorin Plant, and
iv.
determine the effect of employees’ appraisal on the effectiveness of 7up bottling
company, Ilorin Plant.
1.5
Research Hypotheses
Ho1
Training and development has no significant effects on the efficiency of 7up
bottling company, Ilorin Plant
Ho2
Training and development has no significant impact on the effectiveness of 7up
bottling company, Ilorin Plant.
Ho3
Employees’ appraisal has no significant effect on the efficiency of 7up
bottling
company, Ilorin Plant.
Ho4
Employees’ appraisal has no significant impact on the effectiveness of 7up bottling
company, Ilorin Plant.
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1.6
Significance of the Study
The study will be beneficial to organizations in the private sector in Nigeria especially the
multinational enterprises, particularly 7Up Bottling Company, Ilorin Plant and will also
contribute to the existing knowledge on service transfer from the home country to host country
and vice versa. It is also worthy to note that the study can be used as a basis for further research,
as the research can be used as a spring board for further research as well as a good reference
material to students undertaking similar research. Also, it is important to the academia and
student researchers in the management and business field as the findings from this study can be
used as empirical evidence.
1.7
Limitations of the Study
This study was limited to the issue of human resource transfer between the host and home
country companies. The reason for this restriction was due to limited time available and
unavailability of resources for the submission of this research work. The limitation also covers
inability to change the outcome of the data analyzed.
1.8
Scope of the Study
The focus of the study is 7up Bottling Company Plc., Ilorin The emphasis of the study is on
transfer of HRM between home and host country using 7up Bottling Company Plc., Ilorin as a
case study as the findings of this research will be useful in addressing problems associated with
the transfer of HRM in an organization. Also, the targeted respondents were the entire employees
of the 7Up Bottling Company with cadres’ discrimination. Lastly, important attention was given
to the training and development and employees’ appraisal and how it affects the effectiveness
and efficiency of the organizational performance.
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1.9
Outline of Chapters
Chapter One:
It entails the introduction, background of study, statement of research problem, objectives of
research, research question, research hypotheses, and significance of the study, source of data,
outline of chapters, operationalization and definition of terms.
Chapter Two:
This chapter reviewed the background and literature, the conceptual review, the theoretical
review, empirical review and Gaps in literature on Human Resources Transfer and organizational
Chapter Three:
This chapter dealt with the Methodology, introduction, research methods, research design,
population of study, sample size determination, sample techniques/ procedure, research sample
frame, collection of data, research instrument, validity of research instrument, reliability of
research instrument, and ethical consideration.
Chapter Four:
This chapter comprised of analysis and presentation of findings in a logical manner with the use
of test statistics of simple regression analysis with the help of statistical package for the social
science (SPSS).
Chapter Five:
This chapter discusses the summary of findings, conclusion, recommendations, contributions to
knowledge and suggestion for further studies.
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1.10
Operationalization
Where Y=(f)X
X = Independent (Construct).
Y =Dependent (Construct).
CONSTRUCT (X)
CONSTRUCT (Y)
HRM Practice
Organizational Performance
x1
Training and Development
y1
Organizational Effectiveness
x2
Employees’ Appraisal
y2
Organizational Efficiency
1.11 Definition of Terms
Multinational Corporations: is an innovative act, which includes endowing existing resources
for new wealth – producing capacity.
Effectiveness: The degrees to which objectives and goals are achieved and the extent to which
targeted problems are solved.
Organizational Performance: The success or failure of an enterprise.
Effectiveness: The property of been effective of achieving result.
Efficiency: The capacity of an organization, institution, or business to produce desired results
with a minimum expenditure of energy, time, money, personnel, materiel (Mesh, 2012)
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CHAPTER TWO
LITERATURE REVIEW
2.1
Introduction
A lot has been written about human resources transfer between home and host country and
organization performance in an organization by different researchers. It is important for every
organization to note that success and failure of any business organization depends on the
performance and presence of its manpower. An organization is a socio-economic system which
combines technology and humanity when an organization is formed. It normally requires man,
money, machine and materials to pursue the achievement of its goal and objectives. Among these
resources are the greatest assets in the enterprise. This Chapter intends to discuss the foundation
for this study in relation to existing body of knowledge in the field. Different theories have been
employed to help bring clarity to the study of human resources transfer between home and host
country and organization performance.
2.2
Conceptual Review
2.2.1 Concept of Human Resource Management
Though the term HRM is widespread, the definition of the term has remained varied and elusive.
Storey (2015) therefore defines HRM as: “A distinctive approach to employment management
which seeks to achieve competitive advantage through the strategic deployment of highly
committed and capable workforce, using an integrated array of cultural, structural and personnel
technique” The term Human Resource Management (HRM) is a strategic, integrated and
coherent approach to the employment, development and well-being of the people working in
organizations. To Boxall, (2017), it is the management of work and people towards desired ends.
Som, (2016) described HRM as carefully designed combinations of such practices geared
towards improving organizational effectiveness and hence better performance outcomes.
The concept of Human Resource Management was first defined by Bakke (2016) who said that
the general type of activity in any function of management is to use resources effectively for an
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organizational objective. The function which is related to the understanding, maintenance,
development, effective employment and integration of the potential in the resource of people I
shall call simply the human resources function. However, HRM emerged fully fledged later
when the Michigan matching model (Fombrun 2014) and what (Boxall 2015) calls the Harvard
framework developed by Beer (2014) made statements on the HRM concept revealing the need
to take HRM beyond just selection and compensation to broader issues that demand more
comprehensive and more strategic perspective to an organization’s human resources. The
matching model of HRM held that HR systems and the organization structure should be managed
in a way that is congruent with organizational strategy and further explained that there is a
human resource cycle that consists of four generic processes or functions that are performed in
all organizations; selection, appraisal, rewards and development. The Harvard framework is
based on their belief the problems of historical personnel can only be solved when general
managers develop a viewpoint of how they wish to see employees involved in and developed by
the enterprise and of what HRM policies and practices may achieve those goals. Without either a
central philosophy or a strategic vision which can be provided only by general managers – HRM
is likely to remain a set of independent activities, each guided by its own practice tradition. This
called for the need to have a long-term perspective in managing people and consideration of
people as potential assets rather than merely a variable cost.
As Armstrong (1987) puts it HRM is regarded by some personnel managers as just a set of
initials or old wine in new bottles. It could indeed be no more and no less than another name for
personnel management, but as usually perceived, at least it has the virtue of emphasizing the
virtue of treating people as a key resource, the management of which is the direct concern of top
management as part of the strategic planning processes of the enterprise. Although there is
nothing new in the idea, insufficient attention has been paid to it in many organizations.
2.2.2 Concept of Performance Appraisal
Performance is an outcome, or result of an individual’s actions. An individual’s performance
therefore becomes a function of ability and motivation (Ainsworth, 2012). Performance
Assessment (also performance appraisal, evaluation, measurement) becomes a continual review
of the job related task accomplishments or failures of the individuals within the organization. A
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major consideration in performance improvement involves the creation and use of performance
measures or indicators; which are measurable characteristics of products, services, processes, and
operations the company uses to track and improve performance.
Shelley (2018) describes performance appraisal as the process of obtaining, analyzing and
recording information about the relative worth of an employee. The focus of the performance
appraisal is measuring and improving the actual performance of the employee and also the future
potential of the employee. Its aim is to measure what an employee does. Shelley again considers
PA as a systematic way of reviewing and assessing the performance of an employee during a
given period of time and planning for his future. It is a powerful tool to calibrate, refine and
reward the performance of the employee. By focusing the attention on performance, performance
appraisal goes to the heart of HR management and reflects the management's interest in the
progress of the employees.
2.2.3
Performance Appraisal and its Purpose
The basic purpose of a performance appraisal is to generate accurate and valid information
regarding the behavior and performance of members of the organization. The more accurate and
valid the information generated by the system, the grater its potential value to the organization.
Akinbowale (2013) observed that while all organizations share some basic primary goal in their
performance appraisal system, a tremendous amount of variety exists in the specific use that
organizations make of the information obtained from performance appraisal of employees. The
author however, categorized the purpose of performance appraisal into three broad headings as
follows:
a. Individual Evaluation and Motivation
According to the authors, the results of performance appraisal frequently serve as the basis for
the regular evaluation of the performance of members of the organization. They argued that
whether an individual is judged to be competent or incompetent, effective or ineffective,
promotable or unpromotable, and so on is the based upon the information generated by the
performance or appraisal system. With particular emphasis on employee’s motivation, they
further attempt to influence the motivation and future performance of their members by tying the
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administration of various rewards, such as salary increases and promotions to the ratings
generated by the appraisal system.
b. Individual Development
In addition to serving as a basis for the administration of organizational reward and punishments,
the author contended that, the information generated by an appraisal system can also be
employed to facilitate the personal development of organizational members. Sound appraisal
system can generate valid information regarding the areas of personal strength and weakness of
individual employees. With respect to this, the author affirmed that if such information is fed
back to individuals in a clear, unambiguous and non-threatening manner, the information can
serve two valuable purposes.
First, if the information indicates that the person is performing effectively, the feedback process
itself can reinforce and reward the employee by increasing feelings of self-esteem and personal
competence. Secondly, if the information identifies an area of weakness, this can serve to
stimulate a process of training and development in order to overcome the weakness identified.
c. Organizational planning
Besides providing the basis for the evaluation motivation, and development of individual
organization members, the author noted further that an effective performance appraisal system
also generates information that can be of significant value to the organization in planning its
future human resources needs and policies. The members of an organization are the human
capital of that organization. Consequently, a performance appraisal system generates information
that permits the organization to assess the state of its human capital and plan its recruiting,
staffing and development policies, in an informed, systematic and rational manner.
Blazer and Sulsky (2014) was of the opinion that, to ignore individuals in the review process is
to ignore a major input in the achievement of organizational outcomes. It is often said that
organizations that perform well are a reflection of the efforts and successes of their staff.
Recognizing these efforts and appropriately praising them is imperative for organizational
success. This is the basic purpose of performance appraisal.
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2.2.4 Objectives of Performance Appraisal
The objectives of the appraisal scheme should be determined before the system is designed in
detail. The objectives will to a large extent dictate the methods and performance criteria for
appraisal so they should be discussed with employees, managers and trade unions to obtain their
views and commitment (Fletcher, 1994). The main objectives of an appraisal system are usually
to review performance, potential and identify training and career planning needs. In addition the
appraisal system may be used to determine whether employees should receive an element of
financial reward for their performance (Derven, 1990).
Competent appraisal of individual performance in an organization or company serves to improve
the overall effectiveness of the entity. McGregor in Moats (1999) describes the three main
functional areas of performance appraisal systems as: administrative, informative, and
motivational. According to Addison-Wesley (2001), appraisals serve an administrative role by
facilitating an orderly means of determining salary increases and other rewards, and by
delegating authority and responsibility to the most capable individuals. Again, Moats says the
informative function is fulfilled when the appraisal system supplies data to managers and
appraisees about individual strengths and weaknesses. Bodil finally describes the motivational
role to entail creating a learning experience that motivates workers to improve their performance.
When effectively used, performance appraisals will be seen to be playing a major role in helping
employees and managers establish goals for the period before the next appraisal (AddisonWesley, 2001).
According to McNamara (2000) Performance Appraisal can be done with following objectives
in mind:
a) To maintain records in order to determine compensation packages, wage structure, salaries
raises, etc.
b) To identify the strengths and weaknesses of employees to place right men on right job.
c) To maintain and assess the potential present in a person for further growth and development.
d) To provide a feedback to employees regarding their performance and related status.
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e) It serves as a basis for influencing working habits of the employees.
2.3 Theoretical Review
2.3.1 Agency theory
This theory is concerned with contractual relationships between a principal (the licensor) and an
agent (the franchisee) where the former delegates a set of tasks to the latter (Ross, 2013). Two
assumptions are inherent to the theory and drive complexity in agency relationships (Spremann,
2016). First, external effects arise as the agent’s behaviour affects not only its own but also the
principal’s success. This fact is particularly problematic when it comes to the second assumption
of information asymmetries between the principal and his agent. Information asymmetries are
caused by a loss of control over intentions and behaviours of the agent, because the principal
cannot monitor all actions of the agent. Therefore, agency theory considers economic factors as
self-interested and most likely to engage in opportunistic behaviour. This brew of factors
demands coordination mechanisms that enable the principal to exercise a certain level of control
over his agent. While agency theory considers contracts as the main coordination mechanism to
steer actions in a favourable way, it is impossible to specify all future circumstances. The
inability to establish complete contracts leads to agency threats called adverse selection, moral
hazard and hold up (Carney & Gedajlovic, 2011). The former refers to the risk of selecting
factors not well suited to achieving desired outcomes. Moralhazard relates to potential risks
when contracting with individuals who withhold effort (shirking) or misappropriate firm
resources (free riding). Hold up describes risks stemming from unequal bargaining power
between cooperation partners due to specific investments. In the context of Licensing agreement,
agency theory suggests, “there is likely to be greater goal divergence between franchisors and
hired managers than between franchisors and franchisees” (Garg & Rasheed, 2013). The basic
premise of this argument focuses on the variability of the franchisee’s compensation with unit
performance. Consequently, a franchisee has a dual incentive to maximise sales revenue through
effective management and promotion of the franchise concept, while minimizing variable costs.
Under a Licensing agreement contract, franchisees bear the undiversifiable residual risk tied to
their particular units, and therefore, “the costs and benefits of franchisees’ actions that affect the
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value of their individual units are capitalized onto their own shoulders”. The moral hazard of
sub-optimal efforts is thus less likely by franchisees than it is by hired managers (Shane
2012).Being residual claimants to net proceeds, franchisees have an incentive not to shirk. As a
result, the need for monitoring is reduced, as a franchisee’s effort is self-enforced. However,the
franchisor still maintains some decision rights such as menu selection, building design,and site
location. The franchisor has authority to monitor the franchisee for product quality and
franchisee shirking if detected, could result in the termination of the contract.
Hence, it is on this Agency theory that this study is hinged on as it best explains the correlation
between the two construct.
2.3.2
Transaction cost Theory
Adam Smith’s pioneering work “An Inquiry into the Nature and Causes of The Wealth of
Nations”, put prices and price mechanisms into the focus of economic theory, while the nature
and effects of transaction costs were first presented by Coase (1973). He saw markets and
organizations as alternative mechanisms for transaction implementation. The actual theory of the
role on transaction costs and prices in market was to a large extent developed by Oliver
Williamson.
According to Williamson (2001), market transactions or exchanges are at the core of transaction
cost theory, while the firm is seen as a system of contracts between its interest groups. That
means that internal structure of the firm; factors influencing efficiency as well as incentives are
in the focus of study. The frequencies of transactions, the uncertainty related to them as well as
the specificity of resources, are the key elements of transaction. If transaction is predictable, it is
possible to aim at scale benefits. Utilization of scale is a crucial element in licensing agreement.
Transaction also involves possible opportunistic behavior of the parties involved. They must
guard against potential consequences of opportunism, which gives rise to costs. Transaction
takes place in circumstances characterized by uncertainty, and contracts remain incomplete,
because the information between the parties is asymmetrical and it is impossible to fully predict
the future. Being prepared for uncertainty causes a problem of adaptation, and being prepared for
15
that also gives rise to costs. Establishment of transaction calls for resources, material and
immaterial investments, which are always specific and therefore bounded in nature. The greater
the specificity of resources, the threat of opportunism and uncertainty, the more likely it is that
transaction takes place internally, i.e. the control system is in that case hierarchy.
Transaction theory has been criticized from various points of view. Because the theory focuses
on cost minimization and economic relations, the psychological and social aspects of the
relations receive no attention. In addition, the firm’s interest groups are largely ignored, because
the owner’s perspective concerning profit maximization is the dominant one. Looking at costs
also ignores the value creation perspective and the innovations that result from relationship
interaction and learning. In addition, the focus is only on two extremes, markets and hierarchies,
even though these two do not even occur in their pure forms. An intermediate form, i.e. hybrid
organizations, is ignored (Mitronen 2012). In a hybrid organization, the best mechanisms of
different forms of organization or control system are combined, while avoiding their weaknesses.
As an intermediate form between markets and hierarchies, hybrids have more effective
incentives and better capability to adapt as well as stronger control and coordination mechanisms
than markets. According to Powell (2011), accumulation and utilization of competence, speed of
change and flexibility as well as trust are the most important characteristics of hybrids. Bradach
(2010) emphasizes the capacity for uniform, albeit independent operation within a hybrid.
In conclusion, we have no such classification for Nigeria firms, and so in this research we had to
start by defining an instrument that allows Nigeria Licensing agreement firm to be classified
according to their organizational performance, so that we can subsequently analyze the
relationship between the Licensing agreement and performance.
2.3.3 Institutional Theory
According to DiMaggio and Powell (1983), assumption underlying in the study of different
institutions is that organizations are embedded in the institutional context. As Concise Oxford
English Dictionary (2002) states, an institution is “an official organization founded for a
religious, social or any other purpose”. In this research institutional environment will be
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observed in a more narrow sense, as the main topic of interest is HRM sphere only, not the
company structure or development in general. Therefore it is reasonable to claim, that various
organizational practices reflect structures built into their environment in the broader sense. As
Meyer & Rowan (1977) stated, the institutional environment is the source of legitimization,
possible rewards or sanctions on organizational activities. Rosenzweig and Nohria (1994)
believed, that the assumption about the HRM and institutional theory’s relation derives from that
point of view mentioned above. According to Giddens (2002), many institutions in different
countries have become “shell” and cannot perform the tasks they were aimed to from the very
beginning. This is strongly related to the bureaucratic procedures as well, which in the age of
technologies could have been simplified, however still exist in very large proportions in one of
the case-countries – Russia. A common set of institutions can be found in any country: public
and private companies, financial and educational establishments, governmental agencies and so
on, so this research is not aiming at concentrating on all of them. (Lewis 2013: 24.) What
matters, is the difference within the organizational and structural parts of those and their
interrelation within business units, as well as the “paper” procedures related to them, which are
believed to cause further differences in HRM implementation. The author believes, that the extra
paper-work existing from the Russian side in this regard might perplex the HRM processes
among the Finnish and Russian units.
Institutional theory itself is a useful theoretical lens to study adoption of various organizational
forms, analyze organizational behavior in response to empirical dissimilarities, where what is
being observed in the world is believed to be rather inconsistent (March & Olsen 1984: 747).
According to Hodgson (2004), from the very beginning institutional theory existed in close
connection with neo-classical economics theory, resource dependence theory and ecology theory,
while later it became more related to structuration theory (Hodgson 2004; Greenwood 2008;
Scott 2008). A more detailed look will be given to the economic theories from the past, as the
author believes the socio-economic environment in the country and business environment
interrelate and might be in hand in the further discussions on the topic of interest.
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2.3 Empirical review
In a research study titled the impact of transfer of HRM practices on host multinational
companies by Kate (2105) found out that there is a is an abundance of HRM literature on the
subject of multinational companies within the Western context, but there is limited discourse on
the transferal of HRM practices from a Western parent company to a developing country
subsidiary, particularly in the retail sector. This study attempts to address the need for more
research within this field through examining the HRM practices within the host subsidiary of a
multinational retailer in the context of Malaysia. A mixed method approach was adopted using a
combination of questionnaires and semi-structured interviews to gather data for the study. An
analysis using both qualitative and quantitative techniques was used to examine the data. The
findings of this study have supported earlier Western-based literature, which identifies the need
for organizations to adapt their HRM practices to local cultures and customs in order to
guarantee organizational success across geographical boundaries. Moreover, this study has
identified a gap within such literature, which highlights the differences in more depth,
specifically the differences of cultural perceptions at each level of occupational job role within
the multinational company.
Another study carried out by Jana (2015), which deals with the issue of transfer of selected
human resource management (HRM) practices, employee remuneration, from the parent
company to subsidiaries in the host country. This study compares the remuneration of workers in
subsidiaries of multinational companies (MNCs) and local companies located in Slovakia, testing
statistically significant differences in the use of specific forms of remuneration (extraordinary
bonuses, regular bonuses, shares, cafeteria employee benefit system). The research sample
consists of 194 HR managers of MNC subsidiaries and local companies operating in Slovakia,
out of which 92 are managers of subsidiaries and 102 are managers of local companies. The rate
of use of various forms of compensation was determined through a Likert scale, in which HR
managers were asked to respond on a scale from 1 (not a commonly used form of compensation)
to 5 (the most frequently used form of remuneration). In order to fulfil the objectives of the
study, 4 hypotheses were formulated and tested using the Student's t-test. The research results
confirmed only one hypothesis, which shows that the remuneration systems in the subsidiaries of
18
MNCs and local companies does not differ significantly, thus we can speak of a low rate of
transfer of HRM practices tested.
In a study carried out by Hazril (2012), in Malaysia, titled the effects of organizational
characteristics factors on the implementation of strategic HRM practices: evidence from
Malaysian manufacturing firms investigates how organizational characteristics variables, such as
firms‟ country of origin, firms‟ age and firms‟ size, influence the implementation of strategic
human resource (SHRM) practices in organizations. The article contributes towards
understanding whether there are similarities in the adoption of SHRM practices between firms
according to the abovementioned characteristics. A total of one hundred and twenty-one (121)
manufacturing firms in the electrical and electronic sector in Malaysia participated in this study.
The study discovers that firms in this sector practices average to high level of SHRM practices.
Finally, among the three organizational context variables, only firm size showed significant
difference in firms decision to adopt SHRM practices.
Fehmina and Daleep (2017), conducted a research study in India titled transfer of HR Practices
in IT MNCs in India finds out that with the advent of globalization and liberalization in Indian
economy there has been a plethora of small medium- large size companies entering the market to
capture the ever growing demands of Indian and foreign consumers. Specially, it is IT sector
which has seen a sea change in terms of growth, profit margins and creating jobs in India.
Needless to mention that more than 70 percent of these IT companies have their base in North
America and find India as a favourable destination in order to get cost effectiveness. The success
of these organizations is attributed to successful implementation of HRM practices and it often
leads to a question as to how the transfer of these HR practices takes place from headquarters to
subsidiaries. This paper begins with the importance of India being an emerging economy in the
IT sector and how mushrooming of foreign MNCs have taken place in the last few decades. The
next section deals with the literature on HRM practices followed in MNCs across the globe and
in emerging economy like India. Third section addresses the question as to how these practices
are transferred from the MNC HQ and what are the factors that inhibit or accelerate this transfer.
This paper brings about the various aspects related to transfer of HR practices and whether these
practices are transferred as is or modified according to the local needs.
19
Another study conducted in Ghana by Desmond (2017), which is titled multinationals’ HRM
policies and practices finds out that institutional theory claims that organizations interested in
gaining legitimacy might have to adapt to the regulatory, cognitive and normative practices that
reflect a host-country institutional environment. This thesis draws on the theoretical lens of
institutionalism perspective to explore how the coercive (regulatory), cognitive (culture) and
normative institutional settings of a less developed host-country impact MNE subsidiaries’ HRM
practice configurations. The study also examined factors within a host-country that provide
opportunities or impose constraints in the diffusion of best HRM practices from MNEs’
corporate headquarters to their subsidiaries in Ghana. This research employed a multiple casestudy approach involving MNE subsidiaries and key stakeholder institutions, utilizing mixed
methods data collection techniques – in-depth face-to-face interviews, field notes and document
analysis. The thesis found constraints within the host-country educational and training
arrangements, delays with the operation of the legal system, labour market constraints, cultural
barriers as well as economic instability and political actors’ intrusion as institutional drivers
influencing MNE subsidiaries’ HRM polices and practice configurations. The study also found
(i) flexibility in labour regulations, (ii) training of host-country nationals in MNE home
countries, (iii) weak trade unions and their limited bargaining power and collective
representation, (iv) historical developmental trajectory and economic backwardness of the hostcountry, (v) political and economic involvement of MNEs home-countries, (vi) host country
receptiveness to new organizational forms and management practices, and (vii) the contribution
of professional bodies to be facilitating and providing opportunities for the diffusion of MNEs’
home-countries HRM practices to their subsidiaries in Ghana. Whereas, poor work ethic, cultural
barriers, weak political institutional structures, lack of vocational and technical skills formation
and trade unions entitlement mentality posed constraints for MNEs’ HRM practice diffusion.
The implication of this thesis is that the regulatory or coercive institutional profile of the hostcountry is both supportive and receptive to HRM practice diffusion, whilst the cognitive and
normative institutional profiles are the sources of constraints to HRM practice diffusion in LDCs.
These research outcomes contribute to IHRM and comparative HRM advancement in LDCs and
provide specific recommendations to policy-makers and political actors at different
governmental levels to create more supportive and receptive cognitive and normative
institutional configurations within their national business systems. This will ensure the diffusion
20
of best HRM practices owing to the potential capabilities of MNEs to act as innovators and
disseminators of new organizational forms and best HRM practices into less developed hostcountries. This thesis adds to MNEs’ HRM practice transfer debate by highlighting the
significance of the cognitive and normative institutional settings in LDCs as host-country
institutional impediments to MNEs’ HRM practice diffusion and acknowledges greater
flexibility within the regulatory system as a source of receptiveness for MNEs’ HRM practice
diffusion.
2.4
Gaps in Literature
This research work the human resources transfer between home and host country and
organization performance tends to cover the gap of lack of human resources transfer between
home and host country on organizational performance. This research work will be useful and
will also help to bridge the gap between human resources transfer and organization performance,
since it has been identified that lack of training and development and employees’ appraisal,
adoption leads to the failure of efficiency, sustainability, effectiveness and increased market
share of the organization.
With the identification of the above variables, it will be in the advantage of the organization to
cover this gap by implementing these variables towards the goals and objective of the
organization.
21
CHAPTER THREE
METHODOLOGY
3.1
Introduction
This chapter examines the methods adopt for this study, human resources transfer between home
and host country and organization performance in 7up Bottling Company Nig. Plc., Ilorin. It
focuses on research philosophy, research approach, research methods, research design, sources
of data collection, population of the study, sample frame, sample size determination, sampling
techniques and procedure method of data analysis, validity and reliability of research instrument
and ethical consideration.
3.2
Research Philosophy
Three research designs have been identified by Sunder, Thornhill and Lewis, (2009) and Otokiti,
(2010) as axiology, ontology and epistemology. However, in this research work epistemology
was adopted as it constitutes acceptable knowledge in the field of study (Otokiti, 2010).
3.3
Research Approach
The research approach has been identified to be inductive and deductive approaches. However,
for the purpose of this research, deductive approach was deployed, as deductive is concern with
testing and confirming of hypotheses (Trochim, 2006).
3.4
Research Method
Research method concerns the tactic and plan of action that gives direction to research effort and
enable systematic conduct of the research. The research methods are of several types comprises
of the survey, observation, action-research, experiment, archival, case study among others.
Existing literature show that surveys are commonly used in this area of research. For instance
Farid El Sahn et al. (2013) made use of survey method. Therefore, in this study, case study and
census method were adopted. Case study was adopted because it gives an in-depth and a better
understanding of the unit under study while census method was adopt because of its involvement
on extensive study of a particular phenomenon and it enables data to be collected through the
22
administration of questionnaire which is a major source of primary data for this study (Otokiti,
2010).
3.5
Research Design
In order to achieve the set objectives of this study a plan will be drawn up towards collecting
statistical and other relevant data from the field with the use of case study, because it allows
flexible data collection for illuminating a phenomenon within its contested backdrop (Hentz,
2007). In accordance with the objective of this research study, the research design used will
explanatory as it establishes causal relationship variables (Otokiti, 2010)
This research adopts quantitative approach and cross-sectional design in order to obtain the
relevant information. Two reference period which are retrospective and prospective which
explain the past as well as leverage on the present situation to predict the future. Likert- scale
questionnaire which ranges from Strongly Agree (SA) to Disagree (D) will used to gather
information from the respondents.
3.6
Population of the Study
Population can be referred to as a full set of case from which a sample is taken from. Therefore
the staff strength of 7up Bottling Company Nig., Plc. is Three Hundred and Eighty (380). Hence,
the total acknowledges population was considered for the study.
3.7 Sources of Data Collection
Otokiti, (2010), said the most distinguished characteristic of a research is data collection. In
conducting this research relevant data were gathered from one major source: the primary source
3.8 Method of Data Collection
Specifically, open ended and close questionnaire of data collection were selected. The
questionnaire was divided into two sections (A & B). The open ended and close ended
questionnaire were used in the Section A which contains information about the respondent biodata, while close ended questionnaire is the section B which contains strategic questions relating
to the human resources transfer between home and host country and organization performance.
23
3.9 Method of Data Analysis
The result gotten from the research field work shall be analyzed using frequency distribution
table to displaying the percentage of the demographic date and to show the level of agreement
and disagreement to the research statements in the closed ended questionnaire with the help of
Statistical Package for Social Sciences (SPSS) of version 20.
In addition, Regression and Correlation analysis shall be adopt to test the effect and relationship
of the independent variables (i.e. Human resources transfer) on the dependent variables (i.e.
Organization performance) as asked in the hypotheses stated in previous section.
3.10 Validity of Research Instrument
There are four methods of measuring validity are face validity, content validity, and criterion
validity and construct validity. However, for the purpose of this study the measure instrument
were subjected to face and content validity, showing whether it test what it meant to test and the
extent to which a test measures a representative of the sample (Otokiti, 2010).
3.11 Reliability of Research Instruments
Reliability refers to the extent to which result are consistent over time (Otokiti, 2010). It simply
means that if the second researcher were to conduct the same case study, he will still arrive at the
same findings. Therefore, in order to ensure the reliability of the data collected, the researcher
used test-re-test method by administering the same questionnaire twice to the same group of
people under the same or identical variable and it is also known as coefficient stability.
3.12 Ethical Consideration
In conducting this research the issue of ethic was highly followed.
Confidentiality was
maintained throughout the research and data obtained for the purpose of this study will used only
for the purpose of this study. Furthermore, high moral and ethical values were ensured; thus
ensuring protection of the right of individuals in particular and that of the organization under
study as whole. The enrolment of respondents was done on a voluntary basis; thus, this ensures
respondents were not pressurized and their privacy is not to be intruded upon.
24
CHAPTER FOUR
ANALYSIS, PRESENTATION AND DISCUSSION OF FINDINGS
4.1
Introduction
In this chapter, the researcher discusses the results obtained from the analysis of the primary data
collected. In analyzing the data, total of three hundred and eighty (380) questionnaires were sent
out but two hundred and forty (240) were returned, representing 63.2%.
The data presented are stated below, the tables are classified under two sections, section A deals
with profiles and demographic characteristics of respondents while Section B deals with the
question participants’ feelings and the responses were measured using the Five Likert scale.
4.2
Presentation of Data Analysis
Table 4.1
Demographic Characteristics of Respondents
Table 1: Gender
Valid
Frequency
Percent
Valid Percent
Cumulative Percent
Male
142
59.2
59.2
59.2
Female
98
40.8
40.8
100.0
Total
240
100.0
100.0
Source: Authors field survey, 2020
From the results above, it is realized that the majority of the respondents were males.
Specifically, 142 people representing 59.2% were males while 98 people representing 40.8%
were females.
25
Table 2: Age
Frequency
Percent
Valid Percent
Cumulative
Percent
19 and Below
13
5.4
5.4
5.4
20-29
57
23.8
23.8
29.2
30-39
80
33.3
33.3
62.5
40-49
51
21.3
21.3
83.8
50-59
39
16.3
16.3
100.0
Total
240
100.0
100.0
Valid
Source: Authors field survey, 2020
The table above indicate that 5.4% of the respondents were at the age of 19 years and below,
23.8% were between the ages of 20 years and 29 years, quite a number of 33.3% were also
between 30 years and 39 years, 21.3% were between 40 and 49 years and 16.3% were between
50 and 59 years while none of the sampled respondents were 60 years and above. This by
implication means that there are more respondents who fall between the 30-39 age bracket.
26
Table 3: Marital Status
Frequency
Percent
Valid Percent
Cumulative Percent
Single
80
33.3
33.3
33.3
Married
137
57.1
57.1
90.4
Widow
23
9.6
9.6
100.0
Total
240
100.0
100.0
Valid
Source: Authors field survey, 2020
The table above shows that 80 people representing 33.3% are single, 137 people representing
57.1% are married, while 23 people representing 9.6% are widow. Hence, the largest respondents
were married
Table 4: Educational Level
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
O Level
55
22.9
22.9
22.9
ND/NCE
71
29.6
29.6
52.5
First Degree
99
41.3
41.3
93.8
6.3
6.3
100.0
100.0
100.0
Masters
and 15
others
Total
240
Source: Authors field survey, 2020
From the table above, 22.9% of the employees have O’ Level, 29.6% have ND/NCE, 41.3%
have first degree while 6.3% have possess masters and others. Hence, majority of the
respondents are first degree holder.
27
Table 5: Length of service
Frequency
Percent
Valid Percent
Cumulative
Percent
Less than 5years
111
46.3
46.3
46.3
5-10years
19
7.9
7.9
54.2
11-20years
54
22.5
22.5
76.7
21-30years
54
22.5
22.5
99.2
31 and above
2
.8
.8
100.0
Total
240
100.0
100.0
Valid
Source: Authors field survey, 2020
From the table, 46.3% of the respondents sampled were in service for less than 5 years, 7.9%
were from 5 – 10 years, and 22.5% were from 11 - 21 years, 22.5% were from 21 – 30 years,
while 8% is from 31 years and above. This in hence means that respondents whom have spent
less than 5years are the largest.
28
Respondents table for Training and Development
Table 6: Employees are enrolled on external programmes and seminars for personal and
organizational development
Frequency
Percent
Valid Percent
Cumulative
Percent
Disagreed
37
15.4
15.4
15.4
Strongly Disagreed
27
11.3
11.3
26.7
Neutral
62
25.8
25.8
52.5
Agreed
53
22.1
22.1
74.6
Strongly Agreed
61
25.4
25.4
100.0
Total
240
100.0
100.0
Valid
Source: Authors field survey, 2020
From the result it indicates that 15.4% of the respondent disagreed that employees are enrolled
on external programmes and seminars for personal and organizational development, 11.3%
strongly disagreed, 25.8% are neutral, 22.1% agreed, while 25.4% strongly agreed with the
opinion that employees are enrolled on external programmes and seminars for personal and
organizational development. This in hence means that employees are enrolled on external
programmes and seminars for personal and organizational development.
29
Table 7: On the job trainings are organized in order to keep the employees learning while
present at work
Frequency
Percent
Valid Percent
Cumulative
Percent
Disagreed
31
12.9
12.9
12.9
strongly Disagreed
43
17.9
17.9
30.8
Neutral
61
25.4
25.4
56.3
Agreed
43
17.9
17.9
74.2
Strongly Agreed
62
25.8
25.8
100.0
Total
240
100.0
100.0
Valid
Source: Authors field survey, 2020
From table above, 12.9% of the sampled respondents disagreed that the on the job trainings are
organized in order to keep the employees learning while present at work, 17.9% of the
respondents strongly disagreed, 25.4% were neutral, 17.9% agreed, while 25.8% strongly agreed
with the on the job trainings are organized in order to keep the employees learning while present
at work. This in hence means that on the job trainings are organized in order to keep the
employees learning while present at work.
30
Table 8: Employees are encouraged to further develop themselves for useful advancement
of both parties
Frequency
Percent
Valid Percent
Cumulative
Percent
Disagreed
57
23.8
23.8
23.8
Strongly Disagreed
37
15.4
15.4
39.2
Neutral
46
19.2
19.2
58.3
Agreed
32
13.3
13.3
71.7
Strongly Agreed
68
28.3
28.3
100.0
Total
240
100.0
100.0
Valid
Source: Authors field survey, 2020
From table above, 23.8% of the sampled respondents disagreed that employees are encouraged to
further develop themselves for useful advancement of both parties, 15.4% of the respondents
strongly disagreed, 19.2% were neutral, 13.3% agreed, while 28.3% strongly agreed with the
opinion that employees are encouraged to further develop themselves for useful advancement of
both parties. This by implication means that employees are encouraged to further develop
themselves for useful advancement of both parties.
31
Table 9: The organization takes into cognizance periodic refreshment of employees’ skills
and capabilities
Frequency
Percent
Valid Percent
Cumulative
Percent
Disagreed
45
18.8
18.8
18.8
Strongly Disagreed
53
22.1
22.1
40.8
Neutral
52
21.7
21.7
62.5
Agreed
46
19.2
19.2
81.7
Strongly Agreed
44
18.3
18.3
100.0
Total
240
100.0
100.0
Valid
Source: Authors field survey, 2020
From the result, it shows that 18.8% of the sampled respondents disagreed that the organization
takes into cognizance periodic refreshment of employees’ skills and capabilities, 22.1% of the
respondents strongly disagreed, 21.7% were neutral, 19.2% agreed, while 18.3% strongly agreed
with the opinion that the organization takes into cognizance periodic refreshment of employees’
skills and capabilities. This means that the organization takes into cognizance periodic
refreshment of employees’ skills and capabilities.
32
Respondents table for Employees’ Appraisal
Table 10: Employees are measured by the number of output produced on the task
allocated
Frequency
Percent
Valid Percent
Cumulative
Percent
Disagreed
53
22.1
22.1
22.1
Strongly Disagreed
34
14.2
14.2
36.3
Neutral
65
27.1
27.1
63.3
Agreed
26
10.8
10.8
74.2
Strongly Agreed
62
25.8
25.8
100.0
Total
240
100.0
100.0
Valid
Source: Authors field survey, 2020
From table, it shows that 22.1% of the sampled respondents disagreed that employees are
measured by the number of output produced on the task allocated, 14.2% of the respondents
strongly disagreed, 27.1% were neutral, 10.8% agreed, while 25.8% strongly agreed with the
opinion that employees are measured by the number of output produced on the task allocated.
This in hence means that employees are measured by the number of output produced on the task
allocated.
33
Table 10: The organization holds with stint responsibility the encouragement of hard
work
Frequency
Percent
Valid Percent
Cumulative
Percent
Disagreed
36
15.0
15.0
15.0
Strongly Disagreed
38
15.8
15.8
30.8
Neutral
68
28.3
28.3
59.2
Agreed
36
15.0
15.0
74.2
Strongly Agreed
62
25.8
25.8
100.0
Total
240
100.0
100.0
Valid
Source: Authors field survey, 2020
From table above, 15.0% of the sampled respondents disagreed that the organization holds with
stint responsibility the encouragement of hard work, 15.8% of the respondents strongly
disagreed, 28.3% were neutral, 15.0% agreed, while 25.8% strongly agreed with the organization
holds with stint responsibility the encouragement of hard work. Hence, this means that the
organization holds with stint responsibility the encouragement of hard work.
34
Table 11: Employees are aware of the impending consequence of lack of performance on
the job
Frequency
Percent
Valid Percent
Cumulative
Percent
Disagreed
33
13.8
13.8
13.8
Strongly Disagreed
30
12.5
12.5
26.3
Neutral
42
17.5
17.5
43.8
Agreed
71
29.6
29.6
73.3
Strongly Agreed
64
26.7
26.7
100.0
Total
240
100.0
100.0
Valid
Source: Authors field survey, 2020
The result above shows that, 13.8% of the sampled respondents disagreed employees are aware
of the impending consequence of lack of performance on the job, 12.5% of the respondents
strongly disagreed, 17.5% were neutral, 29.6% agreed, while 26.7% strongly agreed with
employees are aware of the impending consequence of lack of performance on the job. This
means that employees are aware of the impending consequence of lack of performance on the
job.
35
Table 12: The possibility of career growth is measured by individual on the job
performance
Frequency
Percent
Valid Percent
Cumulative
Percent
Disagreed
43
17.9
17.9
17.9
Strongly Disagreed
53
22.1
22.1
40.0
Neutral
43
17.9
17.9
57.9
Agreed
49
20.4
20.4
78.3
Strongly Agreed
52
21.7
21.7
100.0
Total
240
100.0
100.0
Valid
Source: Authors field survey, 2020
From table, 17.9% of the sampled respondents disagreed that the possibility of career growth is
measured by individual on the job performance, 22.1% of the respondents strongly disagreed,
17.9% were neutral, 20.4% agreed, while 21.7% strongly agreed with the that the possibility of
career growth is measured by individual on the job performance. This means that that the
possibility of career growth is measured by individual on the job performance.
36
Respondents table for Organizational Effectiveness
Table 13: My organization bears the employees in line with decision making
Frequency
Percent
Valid Percent
Cumulative
Percent
Disagreed
29
12.1
12.1
12.1
Strongly Disagreed
25
10.4
10.4
22.5
Neutral
68
28.3
28.3
50.8
Agreed
42
17.5
17.5
68.3
Strongly Agreed
76
31.7
31.7
100.0
Total
240
100.0
100.0
Valid
Source: Authors field survey, 2020
From result above, 12.1% of the sampled respondents disagreed that their organization bears the
employees in line with decision making, 10.4% of the respondents strongly disagreed, 28.3%
were neutral, 17.5% agreed, while 31.7% strongly agreed with the opinion that their organization
bears the employees in line with decision making. This by implication means that their
organization bears the employees in line with decision making.
37
Table 14: Employees in my organization are committed to performing duties and tasks in the
organization
Frequency
Percent
Valid Percent
Cumulative
Percent
Disagreed
46
19.2
19.2
19.2
Strongly Disagreed
48
20.0
20.0
39.2
Neutral
44
18.3
18.3
57.5
Agreed
35
14.6
14.6
72.1
Strongly Agreed
67
27.9
27.9
100.0
Total
240
100.0
100.0
Valid
Source: Authors field survey, 2020
From result above, 24.2% of the sampled respondents disagreed that employees in my
organization are committed to performing duties and tasks in the organization, 19.6% of the
respondents strongly disagreed, 22.9% were neutral, 7.5% agreed, while 25.9% strongly agreed
with the opinion that employees in my organization are committed to performing duties and tasks
in the organization. Hence, this implies that employees in my organization are committed to
performing duties and tasks in the organization.
38
Table 15: In my organization, management attains its set goals and objective through
effective operations
Frequency
Percent
Valid Percent
Cumulative
Percent
Disagreed
58
24.2
24.2
24.2
Strongly Disagreed
47
19.6
19.6
43.8
Neutral
55
22.9
22.9
66.7
Agreed
18
7.5
7.5
74.2
Strongly Agreed
62
25.8
25.8
100.0
Total
240
100.0
100.0
Valid
Source: Authors field survey, 2020
From table above, 24.2% of the sampled respondents disagreed that in their organization,
management attains its set goals and objective through effective operations, 19.6% of the
respondents strongly disagreed, 22.9% were neutral, 7.9% agreed, while 25.8% strongly agreed
with the opinion that in their organization, management attains its set goals and objective
through effective operations. However, this suggests that management attains its set goals and
objective through effective operations.
39
Table 16: Organization creates an enabling environment for employees in order to carry
out tasks in due time
Frequency
Percent
Valid Percent
Cumulative
Percent
Disagreed
56
23.3
23.3
23.3
Strongly Disagreed
26
10.8
10.8
34.2
Neutral
54
22.5
22.5
56.7
Agreed
19
7.9
7.9
64.6
Strongly Agreed
85
35.4
35.4
100.0
Total
240
100.0
100.0
Valid
Source: Authors field survey, 2020
From table above, 23.3% of the sampled respondents disagreed that their organization creates an
enabling environment for employees in order to carry out tasks in due time, 10.8% of the
respondents strongly disagreed, 22.5% were neutral, 7.9% agreed, while 35.4% strongly agreed
with the opinion that their organization creates an enabling environment for employees in order
to carry out tasks in due time. This insinuates that their organization creates an enabling
environment for employees in order to carry out tasks in due time.
40
Respondents table for Organizational Efficiency
Table 17: The organization achieve its objective via proper work coordination in the
system
Frequency
Percent
Valid Percent Cumulative
Percent
Disagreed
67
27.9
27.9
27.9
Strongly Disagreed
38
15.8
15.8
43.8
Neutral
56
23.3
23.3
67.1
Agreed
15
6.3
6.3
73.3
Strongly Agreed
64
26.7
26.7
100.0
Total
240
100.0
100.0
Valid
Source: Authors field survey, 2020
From table above, 27.9% of the sampled respondents disagreed that their organization achieve its
objective via proper work coordination in the system, 15.8% of the respondents strongly
disagreed, 23.3% were neutral, 6.3% agreed, while 26.7% strongly agreed with the opinion that
their organization achieve its objective via proper work coordination in the system. This by
implication means that their organization achieves its objective via proper work coordination in
the system.
41
Table 18: Employees are encouraged to come to decision table with unique ideas
Frequency
Percent
Valid Percent
Cumulative
Percent
Disagreed
37
15.4
15.4
15.4
Strongly Disagreed
31
12.9
12.9
28.3
Neutral
57
23.8
23.8
52.1
Agreed
52
21.7
21.7
73.8
Strongly Agreed
63
26.3
26.3
100.0
Total
240
100.0
100.0
Valid
Source: Authors field survey, 2019
From table above, 15.4% of the sampled respondents disagreed that employees are encouraged to
come to decision table with unique ideas, 12.9% of the respondents strongly disagreed, 23.8%
were neutral, 21.7% agreed, while 26.3% strongly agreed with the opinion that employees are
encouraged to come to decision table with unique ideas. This means that employees are
encouraged to come to decision table with unique ideas.
42
Table 19: Work becomes easy when organization gives guiding rules of operations
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
Disagreed
57
23.8
23.8
23.8
Strongly Disagreed
45
18.8
18.8
42.5
Neutral
56
23.3
23.3
65.8
Agreed
38
15.8
15.8
81.7
Strongly Agreed
44
18.3
18.3
100.0
Total
240
100.0
100.0
Source: Authors field survey, 2020
From table above, 23.8% of the sampled respondents disagreed that work becomes easy when
organization gives guiding rules of operations, 18.8% of the respondents strongly disagreed,
23.3% were neutral, 15.8% agreed, while 18.3% strongly agreed with the opinion that work
becomes easy when organization gives guiding rules of operations. Hence, this indicates that
work becomes easy when organization gives guiding rules of operations.
43
Table 20: Employees assist in attaining the target of the organization through job
commitment
Frequency
Percent
Valid Percent
Cumulative
Percent
Disagreed
56
23.3
23.3
23.3
Strongly Disagreed
37
15.4
15.4
38.8
Neutral
50
20.8
20.8
59.6
Agreed
36
15.0
15.0
74.6
Strongly Agreed
61
25.4
25.4
100.0
Total
240
100.0
100.0
Valid
Source: Authors field survey, 2020
From table above, 23.3% of the sampled respondents disagreed that employees assist in attaining
the target of the organization through job commitment, 15.4% of the respondents strongly
disagreed, 20.8% were neutral, 15.5% agreed, while 25.4% strongly agreed with the opinion that
employees assist in attaining the target of the organization through job commitment. This means
that employees assist in attaining the target of the organization through job commitment.
44
4.3
TEST OF HYPOTHESES
4.3.1 Test for Hypothesis One
Ho1 Training and development has no significant effects on the efficiency of 7up bottling
company, Ilorin Plant
Table 21: Model Summary
Std.
Error
Model
R
R Square
Adjusted R Square
Estimate
1
.212a
.045
.041
2.82705
of
the
a. Predictors: (Constant), Training and development
The model summary as indicated in table 4.3.1 above shows that R Square is 0.45; this implies
that 45% of variation in the dependent variable (efficiency) was explained by the independent
variable (Training and development) while the remaining 55% is due to other variables that are
not included in the model. This mean that the regression (model formulated) is useful for making
predictions since the value of R2 is close to 1.
Table 22: ANOVAb
Model
1
Sum of Squares Df
Mean Square
F
Sig.
Regression
89.451
1
89.451
11.192
.001a
Residual
1902.149
239
7.992
Total
1991.600
240
a. Predictors: (Constant), Training and development
b. Dependent Variable: Efficiency
45
The table above summarized the results of an analysis of variation in the dependent variable with
large value of regression sum of squares (89.451) in comparison to the residual sum of squares
with value of 1902.149 (this value indicated that the model does not fail to explain a lot of the
variation in the dependent variables. However, the estimated F-value (11.192) as given in the
table above with significance value of 0.001, which is less than p-value of 0.05 (p<0.05) which
means that the explanatory variable elements as a whole can jointly influence the increment in
the dependent variable (efficiency).
Table 23: Coefficientsa
Standardized
Model
1
(Constant)
Unstandardized Coefficients
Coefficients
B
Std. Error
Beta
9.276
1.010
Training and .262
.078
.212
T
Sig.
9.183
.000
3.345
.001
development
a. Dependent Variable: efficiency
The dependent variable as shown in the table was smooth in operation. This was used as a
yardstick to examine the impact between the two variables (i.e. Training and development and
efficiency). The predictor Training and development, as depicted in table; it is obvious that there
is a direct relationship between Training and development and efficiency.
According to the result in the table above Training and development t-test coefficient is 3.345
and the P-value is 0.001 which is less than 0.05 (i.e. P<0.05). This means that these variables are
statistically significant at 5% significant level.
As a result of the outcome, the Null Hypothesis (HO) is rejected on the basis that the p-value is
less than 0.05. Hence the alternative hypothesis is accepted, that Training and development has
significant effect on efficiency of 7up bottling company, Ilorin Plant. This study aligns with the
work of Jana (2015); Hazril (2012).
46
4.3.2 Test for Hypothesis Two
Ho1 Training and development has no significant impact on the effectiveness of 7up
bottling company, Ilorin Plant.
Table 24: Model Summary
Std.
Error
Model
R
R Square
Adjusted R Square
Estimate
1
.184a
.092
.030
2.84331
of
the
a. Predictors: (Constant), Training and development
The model summary as indicated in table 4.3.2 above shows that R Square is 0.92; this implies
that 92% of variation in the dependent variable (effectiveness) was explained by the independent
variable (Training and development) while the remaining 8% is due to other variables that are
not included in the model. This mean that the regression (model formulated) is useful for making
predictions since the value of R2 is close to 1.
Table 25: ANOVAb
Model
1
Sum of Squares Df
Mean Square
F
Sig.
Regression
67.505
1
67.505
8.350
.004a
Residual
1924.095
239
8.084
Total
1991.600
240
a. Predictors: (Constant), Training and development
b. Dependent Variable: effectiveness
The table above summarized the results of an analysis of variation in the dependent variable with
large value of regression sum of squares (67.505) in comparison to the residual sum of squares
with value of 1924.095 (this value indicated that the model does not fail to explain a lot of the
47
variation in the dependent variables. However, the estimated F-value (8.084) as given in the table
above with significance value of 0.004, which is less than p-value of 0.05 (p<0.05) which means
that the explanatory variable elements as a whole can jointly influence the increment in the
dependent variable (effectiveness).
Table 26: Coefficientsa
Standardized
Unstandardized Coefficients
Coefficients
Model
B
Std. Error
Beta
1(Constant)
10.699
.683
Training
and .157
.054
.184
t
Sig.
15.662
.000
2.890
.004
development
a. Dependent Variable: Effectiveness
The dependent variable as shown in the table was smooth in operation. This was used as a
yardstick to examine the impact between the two variables (i.e. Training and development and
effectiveness). The predictors is Training and development, as depicted in table, it is obvious
that there is a direct relationship between Training and development and effectiveness.
According to the result in the table above Training and development t-test coefficient is 2.890
and the P-value is 0.004 which is less than 0.05 (i.e. P<0.05). This means that these variables are
statistically significant at 5% significant level.
As a result of the outcome, the Null Hypothesis (HO) is rejected on the basis that the p-value is
less than 0.05. Hence the alternative hypothesis is accepted, that Training and development has
significant effect on effectiveness of 7up bottling company, Ilorin Plant. This is in correlation
with the work of Kate (2015).
48
4.3.3 Test for Hypothesis Three
Ho3
Employees’ appraisal has no significant effect on the efficiency of 7up
bottling
company, Ilorin Plant.
Table 27: Model Summary
Std.
Error
Model
R
R Square
Adjusted R Square
Estimate
1
.078a
.063
.117
3.52594
of
the
a. Predictors: (Constant), Employees’ appraisal
The model summary as indicated in table 4.3.3 above shows that R Square is 0.63; this implies
that 63% of variation in the dependent variable (Efficiency) were explained by the independent
variable (Employees’ appraisal) while the remaining 37% is due to other variables that are not
included in the model. This mean that the regression (model formulated) is useful for making
predictions since the value of R2 is close to 1.
Table 28: ANOVAb
Model
1
Sum of Squares Df
Mean Square
F
Sig.
Regression
2.261
1
2.261
2.547
.000a
Residual
984.201
239
4.135
Total
986.463
240
a. Predictors: (Constant), Employees’ appraisal
b. Dependent Variable: Efficiency
The table above summarized the results of an analysis of variation in the dependent variable with
large value of regression sum of squares (2.261) in comparison to the residual sum of squares
with value of 984.201 (this value indicated that the model does not fail to explain a lot of the
49
variation in the dependent variables. However, the estimated F-value (2.547) as given in the table
above with significance value of 0.000, which is less than p-value of 0.05 (p<0.05) which means
that the explanatory variable elements as a whole can jointly influence the increment in the
dependent variable (Efficiency).
Table 29: Coefficientsa
Standardized
Model
1
(Constant)
Unstandardized Coefficients
Coefficients
B
Std. Error
Beta
13.266
.727
Employees’ .042
.056
.048
t
Sig.
18.257
.030
2.739
.000
appraisal
a. Dependent Variable: Efficiency
The dependent variable as shown in the table was smooth in operation. This was used as a
yardstick to examine the impact between the two variables (i.e. Employees’ appraisal and
Efficiency). The predictors is employees’ appraisal, as depicted in table, it is obvious that there
is a direct relationship between employees’ appraisal and efficiency. According to the result in
the table above employees’ appraisal t-test coefficient is 2.739 and the P-value is 0.000 which is
less than 0.05 (i.e. P<0.05). This means that these variables are statistically significant at 5%
significant level.
As a result of the outcome, the Null Hypothesis (HO) is rejected on the basis that the p-value is
less than 0.05. Hence the alternative hypothesis is accepted, that employees’ appraisal has
significant effect on efficiency of 7up bottling company, Ilorin Plant. This is in tandem with the
work of Fehmina and Daleep (2017).
50
4.3.4 Test for Hypothesis Four
Ho4
Employees’ appraisal has no significant impact on the effectiveness of 7up bottling
company, Ilorin Plant.
Table 30: Model Summary
Std.
Error
Model
R
R Square
Adjusted R Square
Estimate
1
.526a
.077
.255
3.03464
of
the
a. Predictors: (Constant), Employees’ appraisal
The model summary as indicated in table 4.3.4 above shows that R Square is 0.77; this implies
that 77% of variation in the dependent variable (effectiveness) were explained by the
independent variable (Employees’ appraisal) while the remaining 33% is due to other variables
that are not included in the model. This mean that the regression (model formulated) is useful for
making predictions since the value of R2 is close to 1.
Table 31: ANOVAb
Model
1
Sum of Squares Df
Mean Square
F
Sig.
Regression
1.202
1
1.202
.290
.032a
Residual
985.260
239
4.140
Total
986.463
240
a. Predictors: (Constant), Employees’ appraisal
b. Dependent Variable: Effectiveness
The table above summarized the results of an analysis of variation in the dependent variable with
large value of regression sum of squares (1.202) in comparison to the residual sum of squares
with value of 984.260 (this value indicated that the model does not fail to explain a lot of the
51
variation in the dependent variables. However, the estimated F-value (0.290) as given in the table
above with significance value of 0.032, which is less than p-value of 0.05 (p<0.05) which means
that the explanatory variable elements as a whole can jointly influence the increment in the
dependent variable (Effectiveness).
Table 32: Coefficientsa
Standardized
Model
1
(Constant)
Unstandardized Coefficients
Coefficients
B
Std. Error
Beta
12.484
.489
Employees’ .021
.039
.325
t
Sig.
25.538
.160
2.890
.032
appraisal
a. Dependent Variable: Effectiveness
The dependent variable as shown in the table was smooth in operation. This was used as a
yardstick to examine the impact between the two variables (i.e. Employees’ appraisal and
effectiveness). The predictors is employees’ appraisal, as depicted in table, it is obvious that
there is a direct relationship between employees’ appraisal and effectiveness. According to the
result in the table above effectiveness t-test coefficient is 2.890 and the P-value is 0.032 which is
less than 0.05 (i.e. P<0.05). This means that these variables are statistically significant at 5%
significant level.
As a result of the outcome, the Null Hypothesis (HO) is rejected on the basis that the p-value is
less than 0.05. Hence the alternative hypothesis is accepted, that employees’ appraisal has
significant effect on effectiveness of 7up bottling company, Ilorin Plant. This is in line with the
study of Desmond (2017).
52
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1
Introduction
This chapter is divided into four basic sections and these are; summary of findings, conclusions,
recommendations and suggestions for further studies. The first section discusses the summary of
findings where the findings were discussed extensively, also conclusion was explained not
forgetting recommendations and suggestion for further studies.
5.2
Summary of Findings
The following are the summary of the findings;
Hypothesis one revealed training and development of HRM has no significant effects on the
efficiency of 7up bottling company, Ilorin Plant. However, this study found that training and
development of HRM has significant effects on the efficiency thereby affecting the performance
of 7up bottling company, Ilorin Plant. This study is however in support of what was discovered
by Jana (2015) and Hazril (2012).
Hypothesis two in addition argued that training and development does not have any significant
impact on the effectiveness of 7up bottling company, Ilorin Plant. Hence, the findings show that
the training and development does have significant impact on the effectiveness of 7up bottling
company, Ilorin Plant. This however is in tandem with the findings of Kate (2015).
Hypothesis three hypothesizes that employees’ appraisal does not have any significant effect on
the efficiency of 7up bottling company, Ilorin Plant. However, this study found that employees’
appraisal does have significant effect on the efficiency of 7up bottling company, Ilorin Plant.
Hence, this is supported by the findings of Fehmina and Daleep (2017).
Hypothesis four states that employees’ appraisal does not have any significant impact on the
effectiveness of 7up bottling company, Ilorin Plant. However, it was revealed that employees’
appraisal does have significant impact on the effectiveness of 7up bottling company, Ilorin Plant.
This can be related to the findings of Desmond (2017).
53
5.3
Conclusion
The study is to examine the effects of human resource management practice transfer on the
performance between home and host countries of MNEs (A case study of 7up bottling company,
Ilorin plant). It is in these needs that this study concludes that;
Training and development of human resource management practice do have significant effects
on the efficiency of 7up bottling company, Ilorin Plant through which employees are trained in
order to attain efficiency on the job and in turn affecting organizational performance.
Additionally, this study concludes that training and development does affect significantly the
effectiveness of 7up bottling company, particular Ilorin Plant. This in turn translates to affect the
overall performance of the organization.
Furthermore, this study concludes that employees’ appraisal does have any significant effect on
the efficiency of 7up bottling company, Ilorin Plant, hence, assists in improving the attainment of
employees and organizational performance.
Lastly, this study concludes that the adoption of employees’ appraisal has significant impact on
the effectiveness of 7up bottling company, Ilorin Plant, thereby affecting the organizational
performance.
5.4
Recommendations
In relations to the findings of this study and the conclusion made, the following
recommendations were made;
This study recommends that enormous efforts should be placed on improving the strategy of
training and development of HRM as this has been discovered to have significant effects on the
efficiency of 7up bottling company, Ilorin Plant, hence, affecting the organizational
performance.
In addition, this study recommends that huge attention should be placed on how training and
development is often determined so as to be able to ascertain the effectiveness of 7up bottling
company, Ilorin Plant.
54
Also, this study recommends that effective measures should be put in place so as to improve the
efficacy of employees’ appraisal as it has a direct and effective link with the efficiency of 7up
bottling company, Ilorin Plant.
Lastly, employees’ appraisal has been found to be effective to enhancing the effectiveness of 7up
bottling company, Ilorin Plant, thereby affecting the overall performance of the organization in
question.
5.5
Contributions to Knowledge
This study contributes to body of knowledge from different perspective and activities of life. In
essence, this study assists in contributing to the body of knowledge by providing literature and
empirical findings on change management with the aid of a framework. Also, this study will
contribute to knowledge by revealing useful information and facts that are imperative to the
professional industry (private Sector) and academic setting through the statements contained in
the questionnaire of this study. Additionally, this study will contribute to knowledge by revealing
and creating a level playing ground for comparison between the two major types of transfer of
human resource management practice adopted by this organization and other MNSs in the
industry. Finally, the study will assist the field of knowledge through the provision of the
designed framework for this work.
5.6
Suggestions for further Studies
This study seeks to study the effects of human resource management practice transfer on the
performance between home and host countries of MNEs (A case study of 7up bottling company,
Ilorin plant). Hence, this study has considered to research from the angle training dn
development and employees’ appraisal transfer and how they influence the effectiveness and
efficiency of the organization in concern. However, future researchers may look at the subject by
expanding the case study to other industry and sector like manufacturing and construction with
more wide spread coverage across the country.
55
Reference
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Almond, P. (2011). Re‐visiting “country of origin” effects on HRM in multinational
corporations. Human Resource Management Journal, 21(3), 258–271.
Aswathappa, K., & Dash, S. (2007). International human resource management. New Delhi:
Tata McGraw-Hill.
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NJ: Erlbaum.
Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in
Festing, M., Knappert, L., Dowling, P. J., & Engle, A. D. 2012. Global performance management
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Fey, C. F., & Bjorkman, I. (2001). The effect of human resource management practices on MNC
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57
APPENDIX
Appendices A
Questionnaire
Department of Business and Entrepreneurship,
College of Humanities, Management and Social Sciences
Kwara State University, Malete,
Dear Respondent,
LETTER OF INTRODUCTION
This bearer, Samuel Olamilekan FAGBOYINBO with matriculation number: 18D/7HBA/00132
is a student of the Department of Business and Entrepreneurship, College of Humanities,
Management and Social Sciences; Kwara State University, Malete, Nigeria.
He is currently conducting a research study titled “Effects of human resource management
practice transfer on the performance between home and host countries of MNEs (A case
study of 7up bottling company, Ilorin plant)”.
In this circumstance, we request your support in helping him fill this questionnaire attached
therein in order to make him carryout this research work objectively. Please note that the data
supplied shall be treated with utmost confidence and use purely for academic purposes only.
Thanks for your cooperation.
Yours faithfully,
Dr Bisayo Otokiti
Project Supervisor
SECTION A: Demographic Information
(N.B Answer by Ticking where applicable)
1. Gender:
Male ( )
Female ( )
2. Age: 19 and Below ( ) 20-29 ( ) 30-39 ( ) 40-49 ( ) 50-59 ( ) 60 and above ( )
3. Marital status: Single ( )
Married ( ) Widow ( )
4. Educational background: O’Level ( ) OND/NCE () First Degree () Masters and Others ( )
5. Length of Service: Less than 5years: ( ) 5-10 ( ) 11-20 ( ) 21-30 ( ) 31 and above ( )
SECTION B: Please Tick the appropriate alternative
Where SA-Strongly Agreed, A- Agreed, U-Undecided, SD-Strongly Disagreed D-Disagreed
Research Statements
SA A U
SD D
58
Training and Development
6. Employees are enrolled on external programmes and
seminars for personal and organizational development
7. On the job trainings are organized in order to keep the
employees learning while present at work
8. Employees are encouraged to further develop themselves
for useful advancement of both parties
9. The organization takes into cognizance periodic
refreshment of employees’ skills and capabilities
Employees’ Appraisal
10. Employees are measured by the number of output
produced on the task allocated
11. The organization holds with stint responsibility the
encouragement of hard work
12. Employees are aware of the impending consequence of
lack of performance on the job
13. The possibility of career growth is measured by
individual on the job performance
Organizational Effectiveness
14. My organization bears the employees in line with
decision making
15. Employees in my organization are committed to
performing duties and tasks in the organization
16. In my organization, management attains its set goals and
objective through effective operations
17. Organization creates an enabling environment for
employees in order to carry out tasks in due time
Organizational Efficiency
18. The organization achieve its objective via proper work
coordination in the system
19. Employees are encouraged to come to decision table with
unique ideas
20. Work becomes easy when organization gives guiding
rules of operations
21. Employees assist in attaining the target of the
organization through job commitment
Thank you.
59