The Impacts Of Business Environments Instability On Human Resource Development (A Case Study of SONY/BMG Company) - Business Essay Example
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1.0 BACKGROUND TO THE CASE STUDY
The management of organization human resource to make them attain the organizational goals and work effectively towards contributing to the growth of the organization in contemporary times has taken a new dimension from the traditional way of personnel management. Human resource is considered as the most valuable resources in the organization; without which other resources cannot be coordinated and utilized to the optimal sue of the organization. The formation of effective relationship with workers and enabling a working environment where there is informal relationship goes a long way to motivating workers to performance. According to Farrazzi & Gatti (2007), “…developing deep, genuine relationships- both internally among co-workers …is one of the most important skills need for performance in workplace” Thus, Human Resource Development (HRD) is a vital process used in contemporary times to make an organization Human resource inapt and adequately equipped to face the challenges of the time. According to Wilson (1999:27), “An alignment between strategy and training and development is now commonly regarded as a good business sense in all corners of the globe”. This is more adduced to the limited resources and finance to aid an organization in the attainment of its goal. Thus, HR development will go a long way in the organization to attain effectively set goals in the most efficient way.
For a company of Sony/BMG size that has witnessed years of mergers between the prior single entity companies would have faced period of instability in its business environment resulting from restructuring and reorganizing of the merged companies who hitherto have different organizational culture. Conducive working environment would motivate workers to want to remain long in the organization and thereby develop their skills.
The merger between Sony- BMG is the second- largest record company in the world with 30 percent of the world music market and combined sales of more than $8 billion, according to Nielsen Soundscan, placing it just below Vivendi’s Universal Music Group and ahead of Warner Music Group and EMI Group. (Keller 2004).
The five multinational music companies- Universal Music, Sony Music, EMI, Warner Music and Bertelsmann Music Group (BMG)- have been engaged in a collective courtship ritual for years. The decline in sales by more than a quarter since 1999, and even after swinging cost cuts, industry insiders feel that they need to merge in order to restore profitability. Hence, this brought no surprise at the announcement of Sony Music and BMG merger, the group wish to combine 25% share of the global recorded- music market and sales of 4.5 billion pounds- 5 billion ( $ 5.1 billion –5.7 billion) (The Economist Print edition, 2003).
1.1 OBJECTIVES OF THE STUDY
Those objectives that this study would achieve include the following:
i. To find out the effect of instability of business environment brought by merger and acquisition in the progress in human resource development of an organization;
ii. To determine how management and trainers of human resource within an organization can adequately manage the business environment to enable effective development of their staffers;
iii. To identify variables in the immediate business environment that hinders effective human resource development
iv. To proffer recommendations on ways to manage business environment in order to have effective human resource development in an organization.
1.2 STATEMENT OF RESEARCH PROBLEM
The following problems prompt the researcher’s interest in wanting to proffer solution to this study:
i. The environment where business organizations operate is dynamic in nature, thus the internal and external environments of an organization are affected by, sometimes, phenomenon outside the control of the management of such organizations. This sometimes have direct or indirect influence on the speed in developing human resource in an organization.
ii. Job security has always being the fear of workers in the course of a merger. How can a merger be conducted in order to alley this fear from their existing workers, or those they intend to employ.
iii. Business merger tends to bring together different organization with its own destined organizational culture. Any conflict between the purchasing firm and the purchased firm can have serious negative human capital impact and detrimental implications to the organization. How can these diversities in organization cultures be managed and married to promote a cordial and peace atmosphere in the newly merged organization.
iv. How would the business strategy of the merged company be conducted so as to take into cognizance the hitherto strategy each organizations had carried out so that it won’t be dysfunctional to the effective and efficient management of the business organization.
1.3 RESEARCH QUESTION
i. Do instability in an organization environment affects the rate of human development?
ii. Do fears of job insecurity brought about by instability in business environment affect effective human resource development within an organization?
iii. Do organizations, with diversity in their business strategies, in merger deal affect the success arte of human resource development?
1.4 THEORETICAL FRAMEWORK
The Dynamic of paradigm change theory would be the theoretical framework for this research work.
Looking at the theory to illustrate the inherent relationship between HRM and change management, the Dynamics of Paradigm Change model has it that Paradigm (i.e. the recipe; key beliefs and assumptions forming an organization’s culture) may be changed by a set of dynamic processes. “Resisting change is often a way of attempting to avoid or reduce uncertainty or ambiguity” (Harding & Long, 2001: 146). This theory is significant in accessing the dynamic associated with business environment and how it affects human resource development.
1.5 RESEARCH METHODOLOGY
The quantitative survey research design would be use in the conduct of this research study. According to Odiagbe (1999:11), “survey is designed to answer question about fact description, conduction, and relationship. Although it is often enumerative in nature, it goes beyond the simple enumeration associated with census”. Thus, the survey design would make use of questionnaire as instrument for the collection of data from the respondents.
TOTAL POPULATION OF STUDY
The total population of study would encompass all workers of SONY/BMG Company.
SAMPLE SIZE AND SAMPLING TECHNIQUE
The same size to be adopted for this research would be 100. The sample would cut across both workers at different managerial levels and sub-positions in the company. The sampling technique to be adopted is the simple random sampling technique where all members of the total population have equal chance of being included in the sample without bias.
DATA COLLECTION METHODS
In the course of conducting this research, both primary and secondary data would be utilized. The primary data would be derived through self-administered questionnaires. While the secondary data would be gotten from textbooks, journal publications, Newspapers and magazines articles, seminar presentations, government gazettes and internet publications.
DATA ANALYSIS AND INTERPRETATION
Simple percentage would be use to classify the responses of the respondents in a tabular form and interpretation would be given to this. Chi-square (X2) would be used to test the research hypotheses the Chi-square (X2) decision rule would be:
(i) Accept the null hypothesis (Ho), when the X2 calculated value < the X2 table value. Hence reject the alternate hypothesis (HI)
(ii) Accept the alternate hypothesis (HI) when the X2 calculated value > the X2 table value. Hence, reject the Null hypothesis (Ho)
1.6 ETHICAL IMPLICATIONS/ CONSIDERATION OF THE RESEARCH STUDY
The basic general assumption people have on human resource development included the following:
(i) It is assumed that giving a stable business environment the development of human resource tend to be more effective;
(ii) It is also assumed that instability in business environment create fears for lost of jobs because of the restructuring that will take place in the organization during this period.
(iii) It is also believed that during instability in the work place, e.g. from merger and acquisition, workers tend to have psychological effects that may dislocate and make them put up defensive behavior to the work, hence disrupting training process aimed at HR development.
In line with the above highlighted assumptions, the research tends to focus more on the results and findings it will derive form its data analysis and findings from the research. Thus, the assumption would be relegated to the backseat as the research work proceeds. Comparison will be done after the research findings are uncovered. In addition, data for the research would not be falsified. The privacy of the respondents would be respected.
1.7 TIME SCALES
This research work would be completed given the time scale drawn below.
1st month – gathering of relevant secondary data and review of literatures on the field of study;
2nd month – drawing the research questionnaire and administration of question to respondents;
3rd month- compilation of gathered primary and secondary data into building the complete research work;
4th month- submission of complete research work
Ferrazzi, Keith & Gatti, Lisa (2007), “The Human Element of Successful Training” June Volume 61, 6c ABI/ INFORM Global P. 68
Keller, Julie (2004), Feds Ok Sony- BMG Merger. http://www.eonline.com/News/Items/ 0,1,14617,00html (6th June,2005)
Odiagbe, Martin (1999) A Handbook of Research Methods, Seminar Presentation & Term Paper Writing. Lagos: Summit Publishing Enterprises. P.11
Steven, A.D.& Louis, E.V.N. (1990), Strategic Corporate Alliances: A study of the Present, a Model for the Future. New York: Quorum Books. Pp. 73,117
The Economist Print edition (2003) “Britney, Meet Michael”, http://www.economist.com/displaystory.cfm?storyid=22022914 (7th June, 2005)
Wilson, John P. (1999), Human Resource Development: Learning and Training for Individuals and Organizations London: Kagan Page