AN EVALUATION OF THE INFLUENCE OF HUMAN RESOURCE MANAGEMENT ON THE ORGANIZATIONAL PERFORMANCE OF SOCIÉTÉ NATIONALE DES HYDROCARBURES

CHAPTER ONE INTRODUCTION 1.1 Background of the Study Human Resource Management (HRM) plays a fundamental role in the operations of both private and public sector organizations. It encompasses a wide array of functions such as recruiting employees, conducting comprehensive training, selecting suitable candidates, evaluating employee performance, motivating staff, maintaining healthy workplace relationships, and ensuring employee welfare and safety in line with applicable state and national regulations. According to Noe, Hollenbeck, Gerhart, and Wright (2017), HRM involves the strategic use of an organization’s limited skilled workforce to maximize productivity and organizational success. Moreover, HRM also includes tasks like job analysis, workforce planning, recruitment processes, compensation administration, conflict resolution, and creating a safe and supportive work environment (Abdullah & Othman, 2019). Through HRM, organizations aim to manage their resources effectively. The department also significantly contributes to the personal and professional growth of employees, enhancing their competence and work quality. As highlighted by Francis (2015), HRM plays a crucial role in improving employees' quality of work life, and consequently, the overall performance of the organization. Many modern companies have recognized this and have established dedicated HRM departments, acknowledging their strategic value in today’s competitive environment (Collins, 2021). Despite existing literature emphasizing the importance of HRM in driving organizational performance, there is still a lack of in-depth analysis on how specific HRM practices influence organizational outcomes. In particular, research that examines this issue from the perspective of Saudi Arabia remains limited. Effective performance management practices within HRM are crucial, and understanding their direct impact on organizational outcomes remains an area needing further exploration. Across various industries, HRM is widely recognized as a key determinant of organizational effectiveness. Implementing strong HR practices can enhance employee productivity, job satisfaction, and overall organizational outcomes (Anwar, 2017). HRM activities typically cover hiring, training and development, performance evaluations, and compensation planning. These practices significantly influence an organization’s operational efficiency and financial standing (Noe et al., 2017). In the context of Cameroon, the Société Nationale des Hydrocarbures (SNH), as the national oil company, plays a pivotal role in the country's oil and gas sector. SNH is responsible for the exploration, development, and commercialization of the nation’s hydrocarbon resources, which are vital to Cameroon’s economy. However, like many state-owned enterprises, SNH faces challenges in optimizing its HRM strategies to maintain high performance and competitiveness in the sector. Existing studies suggest a positive correlation between effective HRM practices and improved organizational performance across various sectors (Sadikova, 2020). Research further indicates that when HRM strategies align with a company’s overall objectives, they can lead to better employee engagement, increased productivity, and improved financial results (Wood & Bischoff, 2020). Despite SNH’s strategic significance in the national energy landscape, there is limited research exploring how HRM practices influence its organizational performance (Magrizos & Roumpi, 2020). This study aims to bridge this research gap by examining the specific effects of HRM on the performance of SNH. The goal is to identify key HRM practices that significantly impact performance and to provide recommendations that can help SNH’s management implement more effective HRM strategies. Ultimately, this study seeks to enhance the company’s competitive position and overall success through improved human resource practices. 1.2 Statement of the Problem Human Resource Management is a cornerstone of business success, significantly influencing employee productivity and organizational outcomes (Magrizos & Roumpi, 2020). As the national oil company of Cameroon, the Société Nationale des Hydrocarbures (SNH) is tasked with managing the exploration, development, and sale of hydrocarbon resources, which are central to the country’s economy. Despite SNH’s strategic importance, there remains a lack of research examining how HRM practices specifically affect its performance. Understanding the impact of HRM on SNH’s operations, employee satisfaction, and financial results is essential to ensure long-term growth and sustain competitive advantages (Collins, 2021). While many studies have demonstrated the positive effects of strong HRM practices on organizational performance across various industries (Sadikova, 2020), there is limited insight into how these strategies influence SNH in particular. Therefore, this study seeks to evaluate the influence of HRM practices on the performance of SNH. By doing so, it will fill a critical gap in the literature and offer valuable guidance to SNH management and stakeholders, helping them refine their HRM strategies and drive performance improvements. The core aim of this research is to assess how human resource management impacts the overall effectiveness of the Société Nationale des Hydrocarbures. 1.3 Objectives of the Study The general objective of this study is to assess the impact of human resource management on the performance of the Société Nationale des Hydrocarbures. The specific objectives include: i. To examine the human resource management practices of Société Nationale des Hydrocarbures in Cameroon. ii. To investigate how HRM practices affect staff performance within Société Nationale des Hydrocarbures. iii. To analyze the relationship between HRM practices and the overall organizational performance of Société Nationale des Hydrocarbures. 1.4 Research Questions The following research questions guide this study: i. What are the HRM practices currently implemented at Société Nationale des Hydrocarbures, Cameroon? ii. How do these HRM practices influence staff performance at Société Nationale des Hydrocarbures? iii. What is the nature of the relationship between HRM practices and the organizational performance of Société Nationale des Hydrocarbures? 1.5 Significance of the Study The results of this research will provide valuable insights for various stakeholders. These include policymakers, HR professionals, academic researchers, and the management of SNH. The findings will offer a clearer understanding of the role HRM plays in shaping organizational outcomes and will help in developing more effective HR strategies tailored to SNH's operational context. Additionally, the study will contribute to the academic literature on HRM and performance, particularly within the context of state-owned enterprises in Cameroon. 1.6 Scope of the Study This research focuses specifically on evaluating how human resource management practices influence the performance of Société Nationale des Hydrocarbures. It will explore the HRM strategies currently in use, examine their effects on employee performance, and assess how these practices correlate with broader organizational performance metrics. The scope is limited to SNH and does not extend to other firms or industries outside of Cameroon’s hydrocarbon sector. 1.7 Limitations of the Study As with any research project, this study encountered several limitations. One major challenge was limited funding, which affected the researcher’s ability to access a wide range of resources and carry out extensive data collection. Constraints also arose in the distribution and retrieval of questionnaires and in conducting interviews. Additionally, the researcher had to balance this study with other academic obligations, resulting in time limitations that may have influenced the depth of data collection and analysis. Despite these constraints, every effort was made to ensure the reliability and validity of the findings. 1.8 Definition of Terms Human Resource Management (HRM): This refers to the strategic and systematic management of people within an organization. It includes activities such as recruitment, selection, training, performance appraisal, compensation, and employee relations, with the overall aim of maximizing employee performance in line with organizational goals. Performance: In the context of an organization like SNH, performance refers to the extent to which the company achieves its goals efficiently and effectively. It encompasses financial outcomes, operational success, employee productivity, and other indicators of organizational health. Société Nationale des Hydrocarbures (SNH): SNH is Cameroon’s national oil and gas company, responsible for the management, exploration, production, and commercialization of the country's hydrocarbon resources. It plays a crucial role in the national economy and energy sector.