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The Relevance Of Human Capital Management To The Proft Maximization In The Tourism Sector (A Case Study Of Itc Owerri)




Human Resources Management practices in the Nigerian transport industry helps to improve the workforce at any particular time, thereby enhancing productivity and performance of the industry. It helps to analyze, forecast and project an organization’s manpower requirements and also to optimize its usage of human resources. Based on the analysis, the following summary could be drawn; Training and development enhances productivity of the transport industry. Adequate Human Resources planning promotes employee productivity and performance of the transport industry The quality of Human Resources of any organization determines the productivity and profitability of that organization. The result of the analysis clearly showed the relevance of Human Resources Management practices in the Nigerian Transport industry and Nigeria as a whole.



1.1     Background of Study

Institutional reports and public out-cries had shown that most public institutions tend to persistently fail to deliver as expected. Therefore it has become more important than ever for such organizations to come up with multi-faceted strategies such as Human Capital Management (HCM) that seeks to strengthen employee engagement and create a commitment that goes further than the contractual employer/employee relation to enhance performance.

Human capital management, for the purpose of this study, is a bundle of Human Resource practices that provide HR professionals with the resources they need to shift from a reactive, task-oriented role to being a proactive strategic partner. A holistic HCM approach requires organizations to view talent acquisition, development, retention and employee engagement in a radically new way as a single entity rather than distinct parts. HCM is not about automating processes through the use of software. That is just clever marketing by software companies and HR professionals should know better.

During this new era in HCM, HR professionals will become catalysts for strategic change only when they understand the relationship and interconnectedness of the different components of HCM. As highlighted by Springer (2002) and cited by Marrewijk and Timmers (2003), HCM translates into organizational performance. The HCM practice in an organization will therefore significantly contribute towards the performance of that organization.

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For the past 20years, electricity supply in The Nigeria, have come under serious criticism as being ineffective and inefficient despite all the investments in the sector. The Hospitality industry, (Nostalgia Hotels) responsible for the generation, transmission and distribution of electricity in the Nigeria, is a member of the West African Power Pool (WAPP) – a body created by Decision A/DEC.5/12/99 during the 22nd Summit of the Authority of ECOWAS Heads of State and Government in order to address the issue of power supply deficiency within West Africa. The

Transportation industry (Nostalgia Hotels) has not been able to participate in WAPP’s projects due to lack of relevant technical and institutional capability. In October 2008, an organizational assessment was carried out by a German Consultant, to support the Human Resource and Administration Division of Nostalgia Hotels. In this report the consultant noted the existing lack of both qualified staff and sense of responsibility among Imo Transport Company (ITC) staff met during the meetings and interviews held. The general observation during the assessment revealed an urgent need for a cultural adjustment with regard to staff development in order to enable them perform to expected standards. There was need also for adjustment in the institution and development of other people issues such as usage of working time, self confidence, responsibility and own initiative. This, the Consultant believed will greatly reduce and eventually eliminate negative work attitudes and practices that destroy the Company’s assets, such as vehicles, transformers, tools and any other hardware necessary in running the business.

Analyzing the issues highlighted on this report, the main finding was the need for a more strategic Human Resource Division that can align its activities with the corporate strategic objectives of the Company. It is in this light, and as a follow up study to the findings of the report, that this research investigated and ascertained the extent to which the Human Capital of this Company can transform the current dwindling trend of performance if properly managed. This meant identifying the relevant Human Resource Practices that translated into employee total commitment which in turn impacted positively on organizational performance.

Imo Transport Company (ITC) had depended on ad-hoc measures in planning for Human Resource requirements. The 2008 assessment report narrowed the Human Resource division as mainly focused on traditional practices of personnel administration and not as strategic business partner necessary for the organizational performance improvement. The study will therefore help ITC develop a more strategic and modern approach to the management of people and their attributes that translate to the sustainable improvement of the Company’s overall performance in terms of higher profits, lower operating costs, and lower turnover.

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1.2     Statement of Problem

The relationship between Human Capital Management and performance in the tourism industry has never been denied, but empirical evidence for this link is inadequate as far as Imo Transport Company is concerned. The growing consistency of the Company’s inefficiency, marked by high operational costs, low productivity, generated power losses and inadequate and unaffordable power supply, is contrary to the Company’s mission statement which states “To ensure the safe, effective and efficient provision of affordable nationwide transport, logistics and waybill services to satisfy customer requirements, generate reasonable rates of return on investment and contribute to the socio-economic development of The Nigeria.” Therefore, in order that the mission statement is realized, there is an urgent need to identify the factors responsible for this undesirable business performance and a solution to the problem.

1.3 Objectives of the Study

The objectives of the study are grouped into two. These are general objective and specific objectives.

1.3.1 General Objective

The general objective is to explore and understand the relationship between a selected bundle of Human Capital Management (HCM) and its impact on the profit maximization of the tourism.

1.3.2 Specific Objectives

  1. To identify the relevant bundle of HR practices that make up HCM in Imo Transport Company (ITC)
  2. To examine the mediating and moderating roles of felt obligation and employee commitment in Imo Transport Company (ITC).
  3. To ascertain how positive work attitudes and employee behaviour translate to individual and organizational performance in Imo Transport Company (ITC).
  4. To explore the benefits of employee involvement in decision making in Imo Transport Company (ITC)

1.4 Research Questions

  1. Whatbundle of HR practices make up Human Capital Management in Imo Transport Company (ITC)?
  2. What mediating and moderating roles does felt obligation and employee commitment play in Imo Transport Company (ITC)?
  3. How does positive work attitudes and employee behaviour translate into individual and organizational performance in Imo Transport Company (ITC)?
  4. To what extent can employees be involved in decision making in Imo Transport Company (ITC)?
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1.5    Significance of the Study

The purpose of this research is to examine the impact of human capital management on organizational performance in Imo Transport Company (ITC).The significance of this study which will help build ITC’s capability and capacity to deliver on its strategic and operational mandate cannot be overemphasized. It is expected that the study will inform the Management of Imo Transport Company (ITC) that to reduce operational losses and increase productivity, there is the need to effectively manage its human capital. It is also to help develop and maintain a quality work life, which will provide an opportunity for employees’ self-actualization and commitment. Finally, the recommendations from this study will aid Imo Transport Company (ITC) Management to significantly improve their operations and become a more efficient public enterprise through a more strategic management of the human capital.


The study is limited to Imo Transport Company (ITC) performance in terms of operational losses which is a major current bottleneck and how human capital management can significantly improve this situation. Secondly, as a follow up study to the fore mentioned report on ITC HR division, this study was limited to identifying the components of HCM that impacted employee behaviours and work attitudes, which in turn translated into organizational performance. Indeed human capital management embodies all HR practices but this study did not treat those components distinctly. In fact only those HR activities that constitute high performance such as turnover intention, selective hiring, extensive training, learning and development, employee involvement and information sharing, team working, high compensation contingent on performance and reduced status distinctions between managers and workers, was used to measure employee commitment and felt obligation towards the company. The study will cover all divisions, sections, units and staff of the Company.

Pages:  33

Category: Seminar

Format:  Word & PDF               

Chapters: 1-5                                          

Source: Imsuinfo                                     

Material contains Table of Content, Abstract and References.


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