Project – Effect of technological innovation on human resource management practices in the Nigerian banking sector

CHAPTER ONE

INTRODUCTION

• Background to the Study

Technological innovation has significantly transformed human resource management (HRM) practices across various sectors, including the banking industry in Nigeria. The advent of digital technologies such as artificial intelligence (AI), machine learning, and big data analytics has revolutionized traditional HRM functions, making them more efficient and effective. According to Oke and Aluko (2019), the integration of technology in HRM processes has led to improved recruitment, selection, and onboarding practices in Nigerian banks. These technologies enable HR professionals to streamline the hiring process, reduce biases, and enhance the overall candidate experience.

One of the key areas where technological innovation has had a profound impact is in talent management. E-recruitment platforms and applicant tracking systems (ATS) have become essential tools for HR departments in Nigerian banks. As noted by Akinbode and Shadare (2018), these platforms allow HR managers to reach a wider pool of candidates, conduct more thorough background checks, and make data-driven hiring decisions. Additionally, the use of AI-powered chatbots for initial candidate screening has reduced the time and resources spent on manual processes, thereby increasing efficiency.

Performance management is another critical aspect of HRM that has been enhanced by technological advancements. The implementation of performance management software and employee self-service portals has enabled Nigerian banks to monitor and evaluate employee performance more effectively. According to Adeoye and Elegunde (2014), these tools provide real-time feedback, facilitate continuous performance tracking, and support the development of personalized training programs. This shift towards a more dynamic and data-driven approach to performance management has contributed to higher employee engagement and productivity.

Training and development have also benefited from technological innovation. E-learning platforms and virtual training programs have become increasingly popular in the Nigerian banking sector. As highlighted by Oladapo and Onyeaso (2013), these platforms offer flexible and cost-effective training solutions that cater to the diverse needs of employees. The use of virtual reality (VR) and augmented reality (AR) in training simulations has further enhanced the learning experience, making it more interactive and immersive. This has not only improved the skill sets of employees but also fostered a culture of continuous learning and development.

Employee engagement and communication have been significantly improved through the use of digital tools and platforms. Internal social networks, collaboration tools, and mobile applications have facilitated better communication and collaboration among employees in Nigerian banks. According to Eze (2015), these tools have bridged the gap between different departments and hierarchical levels, promoting a more inclusive and cohesive work environment. Furthermore, the use of employee engagement software has enabled HR managers to gather valuable insights into employee satisfaction and well-being, allowing for more targeted and effective interventions.

Despite the numerous benefits, the adoption of technological innovation in HRM practices also presents certain challenges. Issues such as data privacy, cybersecurity, and the digital divide need to be addressed to ensure the successful implementation of these technologies. As noted by Okafor and Ezeani (2012), Nigerian banks must invest in robust cybersecurity measures and provide adequate training to employees to mitigate these risks. Additionally, there is a need for continuous research and development to keep pace with the rapidly evolving technological landscape and to harness its full potential in HRM practices.

 Statement of the Problem

The rapid advancement of technological innovation has significantly transformed various sectors globally, including the banking industry. In Nigeria, the banking sector has experienced substantial changes due to the integration of new technologies. However, these technological advancements have also brought about challenges and complexities in human resource management (HRM) practices. The problem lies in understanding how these innovations impact HRM practices and whether the current HRM strategies are adequate to cope with the evolving technological landscape. This statement of the problem aims to explore the multifaceted effects of technological innovation on HRM practices within the Nigerian banking sector.

One of the primary issues is the alignment of HRM practices with the new technological tools and systems being implemented. Banks in Nigeria are increasingly adopting technologies such as artificial intelligence, blockchain, and advanced data analytics to enhance their operations. However, the integration of these technologies requires a workforce that is not only skilled but also adaptable to continuous learning and development. The challenge for HRM is to ensure that employees are adequately trained and equipped to handle these new technologies, which often necessitates a shift from traditional training methods to more innovative and flexible approaches.

Another significant problem is the impact of technological innovation on job roles and employment patterns within the banking sector. Automation and digitalization have led to the redefinition of job roles, with some positions becoming obsolete while new ones are created. This shift poses a challenge for HRM in terms of workforce planning and talent management. HR professionals must navigate the complexities of redeploying staff, managing redundancies, and recruiting new talent with the requisite skills for emerging roles. The ability to effectively manage these transitions is crucial for maintaining organizational stability and employee morale.

Moreover, technological innovation has implications for employee engagement and satisfaction. The introduction of new technologies can lead to increased workloads and stress if not managed properly. Employees may feel overwhelmed by the rapid pace of change and the need to constantly update their skills. HRM practices must therefore focus on creating a supportive work environment that fosters continuous learning and development while also addressing the well-being of employees. This includes implementing strategies for stress management, work-life balance, and providing opportunities for career growth and development.

The issue of data security and privacy also emerges as a critical concern with the adoption of new technologies. Banks handle vast amounts of sensitive customer information, and the use of advanced technologies increases the risk of data breaches and cyber-attacks. HRM practices must incorporate robust data security measures and ensure that employees are trained in data protection protocols. This not only protects the organization but also builds trust with customers and employees, who need to feel confident that their personal information is secure.

 

Finally, the cultural shift brought about by technological innovation cannot be overlooked. The traditional banking culture in Nigeria, which may have been more hierarchical and rigid, is being challenged by the need for a more agile and innovative approach. HRM practices must facilitate this cultural transformation by promoting a culture of innovation, collaboration, and flexibility. This involves rethinking leadership styles, communication strategies, and organizational structures to support a more dynamic and technology-driven environment.

The effect of technological innovation on HRM practices in the Nigerian banking sector is a complex and multifaceted issue. It requires a comprehensive approach that addresses the alignment of HRM practices with new technologies, the impact on job roles and employment patterns, employee engagement and satisfaction, data security and privacy, and cultural transformation. By understanding and addressing these challenges, HR professionals can better support their organizations in navigating the technological landscape and achieving sustainable growth and success.

• Aim and Objectives of the Study

The aim of the study is to examine Effect of technological innovation on human resource management practices in the Nigerian banking sector. The specific objectives are:

1. To assess the current technological innovations being implemented in the Nigerian banking sector.
2. To analyze the impact of technological innovations on human resource management practices within Nigerian banks.
3. To identify any barriers faced by employees in adapting to new technologies in the banking sector.
4. To evaluate the effectiveness of training programs and support systems in place to help employees navigate technological changes.

• Research Questions

The research questions are buttressed below:

1. What are the current technological innovations being implemented in the Nigerian banking sector?
2. How do technological innovations impact human resource management practices within Nigerian banks?
3. What barriers do employees face in adapting to new technologies in the banking sector?
4. How effective are the training programs and support systems in place to help employees navigate technological changes in the banking sector?

• Research Hypothesis

The hypothetical statement of the study is buttressed below:

Ho: Technological innovations has no significant impact on human resource management practices within Nigerian banks.

H1: Technological innovations has significant impact on human resource management practices within Nigerian banks.

 Significance of the Study

Technological innovation has become a cornerstone in modern business operations, significantly transforming various sectors, including banking. In the context of human resource management (HRM), technological advancements have introduced new tools and systems that streamline HR processes, enhance employee engagement, and improve overall organizational efficiency. This study aims to explore the specific impact of these innovations on HRM practices within the Nigerian banking sector, with a particular focus on Access Bank’s Minna Branch. Understanding this relationship is crucial as it provides insights into how technology can be leveraged to optimize HR functions and drive business success.

The Nigerian banking sector is a dynamic and competitive environment where efficiency and customer satisfaction are paramount. Technological innovations, such as automated HR systems, digital recruitment platforms, and employee self-service portals, have the potential to revolutionize HRM practices. By examining Access Bank’s Minna Branch, this study highlights how these technologies are being implemented and their effectiveness in addressing HR challenges unique to the Nigerian context. This relevance extends beyond Access Bank, offering valuable lessons for other financial institutions in Nigeria aiming to enhance their HRM practices through technology.

One of the most significant areas where technological innovation impacts HRM is in recruitment and talent management. Traditional recruitment methods can be time-consuming and often fail to attract the best talent. However, with the advent of digital recruitment platforms and AI-driven applicant tracking systems, banks like Access Bank can streamline their hiring processes, reduce time-to-hire, and improve the quality of candidates. This study examines how these technologies are utilized at the Minna Branch, providing a detailed analysis of their benefits and potential drawbacks, thereby offering a comprehensive understanding of their impact on talent acquisition and management.

Employee engagement and development are critical components of effective HRM. Technological tools such as e-learning platforms, performance management systems, and employee feedback apps can significantly enhance these areas. At Access Bank’s Minna Branch, the implementation of such technologies can lead to more personalized and continuous learning opportunities, better performance tracking, and more effective communication between employees and management. This study explores how these innovations contribute to a more engaged and skilled workforce, ultimately driving higher productivity and job satisfaction.

Another significant aspect of technological innovation in HRM is its potential to improve operational efficiency and reduce costs. Automated HR processes, such as payroll management, leave tracking, and benefits administration, can save time and reduce the likelihood of errors. For Access Bank’s Minna Branch, these efficiencies translate into cost savings and allow HR professionals to focus on more strategic initiatives. This study assesses the extent to which these technologies have been adopted and their impact on the branch’s operational efficiency and cost management, providing a clear picture of the financial benefits of HR technological innovation.

The findings from this study have broader implications for the Nigerian banking sector and beyond. By showcasing the successful implementation of technological innovations in HRM at Access Bank’s Minna Branch, other banks and organizations can learn from these experiences and consider adopting similar technologies. Additionally, the study identifies potential challenges and areas for improvement, offering a roadmap for future research and development in this field. As technology continues to evolve, staying abreast of these changes and understanding their impact on HRM will be essential for maintaining a competitive edge in the banking industry.

1.7. Scope of the study

The study examines the effect of technological innovation on human resource management practices in the Nigerian banking sector: A case study Access Bank Minna Branch.

1.8.  Operational Definition of Term

1. Effect: An effect is a change that is a result or consequence of an action or other cause. In the context of studies and research, it refers to the impact or outcome that one variable has on another.
2. Technological Innovation: Technological innovation refers to the introduction of new technologies or the improvement of existing technologies to enhance processes, products, or services. This can include advancements in software, hardware, and other digital tools that improve efficiency, productivity, and overall performance.
3. Human Resource Management (HRM): Human Resource Management is the strategic approach to the effective management of people in an organization so that they help the business gain a competitive advantage. It involves recruiting, hiring, training, performance management, employee relations, and ensuring compliance with employment laws.
4. Practices: Practices refer to the customary, habitual, or expected procedures or ways of doing something. In the context of HRM, practices would include the methods and strategies employed to manage human resources effectively.
5. Banking Sector: The banking sector encompasses all financial institutions that accept deposits from the public, create credit, and provide loans. This includes commercial banks, savings and loan associations, credit unions, and other entities that provide financial services to individuals, businesses, and governments.

Project – Effect of technological innovation on human resource management practices in the Nigerian banking sector