Assessment of the Role and Functions of Human Resources Department in Small and Medium Scale Enterprise Companies in Ile – Ife, Osun

Abstract

This study was conducted to investigate the role and functions of the Human Resources Department in the various small and medium scale enterprise companies, in Ile-Ife, Osun State, Nigeria. It identified the functions and roles of the Human Resources Department in the Small and Medium Scale Enterprise (SMEs) in Ile-Ife, Osun State, and also examine how these functions affects the workers’ efficiency and effectiveness as well as the Organization overall productivity. The reconnaissance survey research design was used for this study. The population of the study consisted of the human resource manager and other employees of all the various small and medium scale enterprise companies, in Ile-Ife. The sample size comprised the Human Resource Manager/Personnel and the Members of staff of the 20 randomly selected companies in Ile-Ife. Four employees were randomly selected from each of the selected companies constituting eighty staff and the twenty heads of the HR department of the companies were purposively selected. Data were collected using structured questionnaire and an interview guide. The questionnaire titled the role and functions of human resources department in small and medium scale enterprise questionnaire” (RFHRDSMEQ) was used to gather information about the role, functions and importance of the human resource department from the employees. The interview guide on role and functions of human resources department in small and medium scale enterprise was issued to the heads of HR department to justify the information gathered from the employees. Data collected were analyzed using descriptive statistics such as simple percentage, charts and tables in the summary and interpretation of the data collected. The study depicted that the larger percentage of the respondents have spent 3-4years in their respective companies. It also revealed that compensation and reward were HR functions that almost all personnel in the selected companies enjoyed because they were available and easily accessible. The study showed that all the functions of the HR department had impact on the effectiveness and efficiency of all the workers. Lastly, it was discovered that the HR department is the most important department in any organization because it deals with human resources which are the most important, valuable and appreciable asset of any organization. In conclusion. Human resource management functions are pivotal to any organisation whether small, medium or large. This is because Human Resource Management is essential to optimal performance of any organization.