Lean Human Resource Initiatives and Employee Performance of Selected Small and Medium Scale Enterprises in Nigeria
DOI:
https://doi.org/10.53819/81018102t4051Abstract
Small and medium scale enterprises (SMEs) play an important role in terms of growth and development of an economy. Despite this ostensible relevance of small and medium scale enterprises, it is observed that employee performance level especially in Nigeria is low compared to that of other nations. This is evident in declining workforce productivity, inefficiency, and decreased commitment. These challenges have been attributed to a variety of factors, including poor hiring approach, irregular improvement, and poor teamwork. The impact of lean human resource initiatives on employee performance in selected SMEs in Lagos State, Nigeria, was explored in this research. The survey research design was used in this study. In Lagos State, Nigeria, there were 8,396 small and medium-sized businesses. Sample size of 481 was ascertained using the Research Advisory Table. The participants were identified using a simple random sampling approach. Data was collected from the participants using an adapted and validated questionnaire. Construct ranged from 0.74 to 0.89 for Cronbach’s Alpha reliability coefficients and study found that 85% of participants responded. The data was analyzed using descriptive and inferential statistics (multiple regression). According to the findings, lean human resource initiatives had a significant impact on employee performance in Lagos, Nigeria.. Employee performance was significantly affected by lean human resource initiatives (Adj.R2 = 0.095; F (5,401) = 9.509, p 0.05). The study concludes that lean human resource initiatives had significant effect on employee performance of SMEs in Lagos Nigeria. The study recommends that small and medium scale enterprise owner/managers should embrace Lean Human Resource initiatives such as selective hiring, continuous improvement, mentoring, cross-functional team, and flexible information system which is geared towards human capital development to improve employee performance and boost their contribution to the organization.
Keywords: Continuous Improvement, Employee Performance, Lean Human resource initiative, Mentoring, Selective Hiring.
References
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Apulu, I., Latham, A. & Moreton, R. (2011). Factors affecting the effective utilization and adoption of sophisticated ICT solutions: Case studies of SMEs in Lagos, Nigeria. Journal of Systems and Information Technology, 13(2), 125 – 143.
Badrianto, Y. & Ekhsan, M. (2020). Effect of Work Environment and Job Satisfaction on Employee Performance in Pt. Nesinak Industries, Journal of Business, Management, and Accounting, 2(1).
Bamber, G. J., Stanton, P., Bartram, T. & Ballardie, R. (2014). Human resource management, Lean processes and outcomes for employees: Towards a research agenda. The International Journal of Human Resource Management, 25(21), 2881-2891.
Becker, G. (1993). The economic way of looking at behavior, Journal of Politics and Economics, 101(3), 385–409.
Berrahal, W., & Marghoubi, R. (2016). Lean Continuous Improvement to Information Technology Service Management Implementation: Projection of ITIL framwork. International Conference on Information Technology for Organizations Development, IT4OD. IEEE
Bhuiyan, N. & Baghel, A. (2005). An overview of continuous improvement: from the past to the present. Management Decision, 43(5), 761–771.
Boell, S. K. & Cecez-Kecmanovic, D. (2015). Debating systematic literature reviews (SLR) and their ramifications for IS: A rejoinder to Mike Chiasson, Briony Oates, Ulrike Schultze, and Richard Watson. Journal of Informaton Technology, (30)2, 188-193.
Bohari, A. M., Hin, C. W., & Fuad, N, The competitiveness of halal food industry in Malaysia: A SWOT-ICT analysis. Malaysia Journal of Society and Space, 1(1), 1–9, 2013.
Bunduchi, R. (2009). Implementing best practices to support creativity in NPD cross-functional teams, International Journal of Innovation Management, 13(4), 537-54.
Butali, P. & Njoroge, D. (2020). Selective Hiring, Organizational Performance and Commitment. IOSR Journal of Business and Management, 22(1), 63-69.
Caroly, S., Coutarel, F., Landry, A., & Isabelle, M. (2010). Sustainable MSD prevention: Management for continuous improvement between prevention and production. Ergonomic intervention in two assembly line companies. Applied Ergonomics, Elsevier, 41, 591-599.
Collins C. J., & Clark K. D. (2003). Strategic human resource practices, top management commitment, team social networks and firm performance: the role of human resource practices in creating organizational competitive advantage, Academy of Management Journal, 46(6), 740-751.
Daspit, J., Justice Tillman, C., Boyd, N. G., & Mckee, V. (2013). Cross-functional team effectiveness. Team Performance Management, 19(1), 34 56.
De Oliveira, E. A., Pimenta, M. L., & Hilletofth, P. (2015). Characterizing Cross-Functional Teams in Service Companies: A Case Study from Telecom Industri. In The International Conference on Technology Innovation and Industrial Management, Bari, 27–29 May 2015. (pp. 2139-2148). ToKnowPress.
Domazet, I., Zubović, J., & Lazić, M. (2018). Driving factors of Serbian competitiveness: Digital economy and ICT, Strategic Management, 23(2), 20-28.
Donati, C. & Sarno, D. (2014). Are firms in "backward" areas of developed regions more financially constrained? The case of Italian SMEs. Industrial and Corporate Change, 1-23.
Ebitu, E. T., Basil, G., & Ufot, J. A. (2016). An appraisal of Nigeria’s micro, small and medium enterprises: Growth, challenges and prospects. International Journal of Small Business & Entrepreneurship Research, 4(4), 1–15.
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Ekwoaba, J. O., Ikeije, U. U, & Ufoma, N. (2015). The impact of recruitment and selection criteria on organizational performance. Global Journal of Human Resource Management, 3(2), 22-33, March 2015 Published by European Centre for Research Training and Development UK (www.eajournals.org
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Garvey, B., Stokes, P., & Megginson, D. (2018). Coaching and Mentoring: Theory & Practice, 3rd Edition. London: Sage.
Gillies, D. (2017). Human Capital Theory in Education, M. A. Peters (ed.), Encyclopedia of Educational Philosophy and Theory,
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Halim, H. A., Ahmad, N. H., Ramayah, T., Hanifah, H., Taghizadeh, S. K., & Mohamad, M.N. (2015). Towards an innovation culture: Enhancing innovative performance of Malaysian SMEs. Academic Journal of Interdisciplinary Studies, 4(2), 85–94.
Honda, A. C., Bernardo, V. Z., Gerolamo, M. C., Davis, M. M. (2018). How Lean Six Sigma Principles Improve Hospital Performance. Quality Management Journal, 25(2), 70–82.
Hsieh, P. J. (2010). Cross-functional team selection concerning members’ cooperative effects and capabilities overlap, Systems Research and Behavioral Science, 27(3), 301-318.
Huselid, M.A. (2010). Creating a differentiated workforce at the American Heart Association. DVD case study.
Igwe, P. A., Amaugo, A. N., Ogundana, O. M., Egere, O. M. & Anigbo, J. M. (2018). Factors affecting the investment climate, SMEs productivity and entrepreneurship in Nigeria. European Journal of Sustainable Development, 7(1), 182–200.
Jackson, P. R., & Mullarkey, S. (2000). Lean production teams and health in garment manufacture. Journal of Occupational Health Psychology, 5(2), 231–245.
Janoski, T. & Lepadatu, D. (2019). Framing and Managing Lean Organizations in the New Economy. Routledge.
Jekiel, C. (2011). Lean Human Resources: USA: Taylor & Francis Group.
Jolaosho S.O, Shodiya O.A., Olajide, A.R. &Akintan, I. O. (2018). The Effect of Recruitment and Selection Process on Job Performance in Telecommunication Industry in Nigeria: An Assessment of MTN Customer Service Centre Abeokuta. International Journal of Management and Economics, 4(02), 1639-1651.
Kafigi, J. (2015). Strategic alliance typology and survival chances among medium-sized manufacturing firms in Tanzania. Journal Competitiveness, 7(2), 38-48.
Khan, H. U., Ali, S. & Hongqi, L. (2018). Impact of Continuous Improvement on Organization Performance Insight from Pakistan: An Empirical Study, International Journal of Innovation, Management and Technology, 9(1).
Kumar, S., Dhingra, A., Singh, B., & Haupt, T. (2017). Lean-Kaizen implementation: a roadmap for identifying continuous improvement opportunities in Indian small and medium sized enterprise. Journal of Engineering, Design and Technology, 16 (1), 43-160.
Laudon, K. C., & Laudon, J. P. (2012). Management Information Systems Managing in the Digital Firm (12th ed.). London: Person education.
Laurent, J. & Leicht, R. M. (2019). Practices for Designing Cross-Functional Teams for Integrated Project Delivery. Journal of Construction Engineering and Management, 145 (3), 05019001-11
Makhamara, F.H., Waiganjo, E.W. & Kwasira, J. (2016). Influence of strategic recruitment and selection on employee performance in the health sector in Kenya. Strategic Journal of Business and Change Management, 3(21), 347-361.
Marginson, S; (2019) Limitations of human capital theory. Studies in Higher Education , 44(2) 287-301
Martínez Sánchez, A., & Pérez Pérez, M. (2019). Lean indicators and manufacturing strategies. International Journal of Operations & Production Management, 21(11), 1433–1452.
Martínez-Jurado, P. J., & Moyano-Fuentes, J. (2014). Key determinants of lean production adoption: Evidence from the aerospace sector. Production Planning & Control, 25(4), 332–345.
Maware, C., & Adetunji, O. (2019). Lean manufacturing implementation in Zimbabwean industries: Impact on operational performance. International Journal of Engineering Business Management, 11, 1-12
Mbuyisa, B., & Leonard, A. (2017). The role of ICT use in SMEs towards poverty reduction: A systematic literature review. Journal of International Development, 29(2), 159–197
McLean, R. S., Antony, J. & Dahlgaard, J. J. (2017). Failure of continuous improvement initiatives in manufacturing environments: a systematic review of the evidence. Total Quality Management & Business Excellence, 28(3-4), 219-237.
Merkl, C., & van Rens, T. (2019). Selective hiring and welfare analysis in labor market models. Labour Economics, 57, 117-130.
Mullen, C. A. & Klimaitis, C. C. (2021). Defining mentoring: a literature review of issues, types, and applications. Annals of The New York Academy of Sciences,
Mustapha, A. M., Ilesanmi, O. A., & Aremu, M. (2013). The Impacts of well Planned Recruitment and Selection Process on Corporate Performance in Nigerian Banking Industry (A Case Study of First Bank Plc 2004-2011). International Journal of Academic Research in Business and Social Sciences, 3(9), 633-648.
Nadarajah, S., Kadiresan, V., Kumar, R., Kamil, N. A. & Yusoff, Y. M. (2012). The relationship of HR practices and job performance of academicians towards career development in Malaysian Private Higher Institutions, Procedia-Social and Behavioral Sciences, 57, 102 – 112
Naveen, S., & Raju, N.M. (2020). A Study on Recruitment & Selection Process With Reference To Three Industries, Cement Industry, Electronics Industry, Sugar Industry In Krishna Dt Ap, India. IOSR Journal of Business and Management (IOSR-JBM), 15(5), 60-67.
OECD (Organisation for Economic Co-operation and Development). 2014. Financing SMEs and entrepreneurs 2014: An OECD scoreboard. Paris: OECD Publishing.
Ofobruku, S. A. & Nwakoby, N. P. (2015). Effects of mentoring on employees’ performance in selected family business in Abuja, Nigeria. Singaporean Journal of Business Economics and Management Studies. 4(9), 29–50.
Ogunode, P. O., Abereola, S. M. & Oloyede, A. O. (2020). Entrepreneurship marketing and performance of SME’s in Nigeria, International Journal of Small Business and Entrepreneurship Research, 8(1), 39-52,
Ombui, K., Elegwa, M. & Gichuhi, A.W. (2014). The Influence of recruitment and selection on the performance of employees in research institutes in Kenya. IJSR, 3(5). 132-138.
Omolo, J.W &Otengah, W.A. (2015) Effect of Recruitment and Selection of Employees on the Performance of Small and Medium Enterprises in Kisumu Municipality, Kenya. European Journal of Business and Management, 7(3). ISSN 2222-1905
Parker, G. (2003). Cross Functional Teams: Working with Allies, Enemies and Other Strangers. Published by Jossey Bass, A Wiley Imprint, 989 Market street, San Francisco, California, www.josseybass.com, pp. 4-15
Paul, A. K., & Anantharaman, R. N., (2003). Impact of people management practices on organizational performance: analysis of a causal model, International Journal of Human Resource Management, 14 (7), 1246-1266
Pearce, A., & Pons, D. (2019). Advancing lean management: the missing quantitative approach. Operations Research Perspectives, 6(1), 1-14.
Pennanen, M., Bristol, L., Wilkinson, J., & Heikkinen, H. L. T. (2016). What is ‘good’ mentoring? Understanding mentoring practices of teacher induction through case studies of Finland and Australia. Pedagogy, Culture & Society, 24(1), 27–53.
Pradhan, R. K., Panda, P., & Jena, L. K. (2017). Purpose, passion, and performance at the workplace: Exploring the nature, structure, and relationship. The Psychologist-Manager Journal, 20(4), 222–245.
Rivai, V. (2004), Manajemen Sumber Daya Manusia untuk Perusahaan Dari Teori ke Praktek,Grafindo
Rozi, A., & Sunarsi, D. (2020). The Influence of Motivation and Work Experience on Employee Performance at PT. Yamaha Saka Motor in South Tangerang. Jurnal Office, 5(2), 65–74.
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Published
2022-06-10
How to Cite
Egbuta, O. U., Omosigho, A. A., Akinlabi, H. B., & Ajike, E. (2022). Lean Human Resource Initiatives and Employee Performance of Selected Small and Medium Scale Enterprises in Nigeria. Journal of Strategic Management, 6(3), 88–106. https://doi.org/10.53819/81018102t4051
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