The purpose of this research work is to highlight on managing the human resources of business organisations in a depressed economy. Today’s business environment is in the state of flux, where competition is the name of the game. Organizations that fail to change may be forced to change from existence to non-existence, hence survival is the panacea. To survive, companies must explore all available avenues that can bring about competitive advantage. To develop a competitive advantage, it is important that firms truly leverage on the workforce as a competitive weapon. Specifically, the study aimed to pursue the following objectives: to establish the relationship between Human capital management and organizational performance, to determine the effect of training and development on organizational performance, to examine the role of environmental factors on organizational productivity, to ascertain whether effective recruitment and selection boost human resource management. The study had a population size of 1,210, out of which a sample size of 303 was realised using Taro Yamene formula at 5% error to tolerance and 95 % level of confidence. Instrument used for data collection was primarily questionnaire and interview. The total numbers of 303 copies of the questionnaire were distributed while 283 copies were returned. The descriptive research design was adopted for the study. Four hypotheses were tested using Pearson’s moment correlation coefficient, chi-square (x2) and Z- test statistical tools. The findings indicate that there was significant relationship between human capital management and organisational performance. Training and development positively affects organisational performance. Environmental factors significantly affect organisational productivity; Effective recruitment and selection significantly boost human resource management of an organisation. The study concluded that theoretical and technological advance in human capital management has allowed manufacturing organizations to move beyond managing personnel by head count and billet, the managing their workforces. The study recommends that Organizations should take training and development programmes serious because that determines how effective and efficiently organizations are been run.

CHAPTER ONE: INTRODUCTION

1.1       BACKGROUND OF THE STUDY
Organizations are increasingly looking at human resources as unique assets that can provide sustained competitive advantage. The changes in business environments with increasing globalization, changing demographics of the workforce, increased focus on profitability through growth, technological changes, intellectual capital and the never ending changes that organizations are undergoing have led to increased need for managing human resources (Devanna, Fombrum, and Tichy, 1998). A human resource (HR) department that is highly administrative and lacks strategic integration fails to provide the competitive advantage needed for survival, thus losing its relevance. Huselid and Becker (1997) found that there were noticeable financial returns for organizations whose human resource management (HRM) systems have achieved operational excellence and are aligned with strategic business goals. According to Ulrich (1998), a major role of Human Resource Personnel is to become a strategic business partner. Youndt and Scott (1996) find that firms employing HR practices according to the stated strategy are regarded as having better perceptual performance. Singh (2003) gives a broader approach to looking at strategic human resources management (SHRM) by integrating various functions and establishing the linkage between these functions and the business plan. It is important not only to identify HR competencies in concurrence with the business needs and to develop selection and development practices to secure those competencies, but also to evolve and implement a performance evaluation plan that links the performance of the employees to the strategic goals.
Knowledge is important for organizational performance, and by implementing a human resource strategy to develop the knowledge worker and to retain the knowledgeable, a firm can understand how to create, transfer, and use it effectively to develop a competitive advantage. As a result, knowledge has emerged as the most strategically significant resource of the firm (Grant, 1996) and is built into the very nature of the firm (Penrose, 1959). Knowledge workers are not labor, they are capital (Drucker, 2002). The loyalty of knowledge workers and the ways to minimize turnover are critical management problems (Alvesson, 2000).
Modern businesses are full of challenges, to face these challenges, organisations should recognise the fact that human resources are indispensable. This is because of their role as the prime mover or initiator of all productive activities. According to Donnelly et al (1992:315) human resource management is the process of accomplishing organisational objectives by acquiring, retaining, terminating, developing and properly using the human resources in an organisation. The acquisition involves recruiting, screening, selecting and placing personnel. Recruiting efficient individuals matters a lot to an organisation for it to attain its objectives. Employees at a particular time must be fired for breaking rules and regulations or failing to perform their duties regularly.
Human Resource Management issue have been major concerns for managers at all levels because they all reach their goals through the effort of others this requires the effective and efficient management of people (Desler et al 1999). The spacious array of HRM activities for example, planning, recruiting, selection and training just to mention a few places enormous responsibilities on supervisors and managers alike. These include analyzing jobs, planning labour needs, selecting employees orienting and training employees, managing compensation, communicating (which includes counselling and disciplining) and maintaining employee commitment.
In addition to the already mentioned activities are, ensuring fair treatment, appraising performances, ensuring employee health and safety, building and maintaining good employee labour relations, handling complaints , occupational health and safety, labour relations, and other legislation affecting the workplace. Regardless of field of expertise, from accounting to production control, learning about employees right, employer responsibilities, and effective Human Resource Management practices may provide all managers with knowledge that enable them to perform more effectively.

1.2       STATEMENT OF PROBLEM
The most precious resource of an organization, which forms its backbone, is its Human Resource. Behind every successful organization there is a team of highly motivated and dedicated workforce committed to achieving its goal . Human Resource is not only the prime mover of all economic activities but also the end goal of such activities. Proper Manpower planning, their future growth and development, needs and fulfilment of day-to -day requirement are vital for the prosperity and health of any organization. Most successful organizations have devised ways to keep their human resources highly satisfied and make them participative in crucial matter related to the organization. For some time, now the Nigerian economy has been under serious pressure as a result of prolonged economic depression. In the face of the gloomy picture however, our organisations still need to stay afloat. The problem of the human element in Nigerian organisations has been eaten up by inflation. They have several needs that are grossly difficult to achieve, the low demand of outputs of organisations is affecting their willingness to empower by of training and development. The possibility of displacement by efficient machines (computers, robots ete) is affecting the psyche of the worker. Pertinent to the above, the study seeks to investigate managing the human resources of business organisations in a depressed economy.

1.3       OBJECTIVES OF THE STUDY
 Given the statement of the problem above, this study aims to achieve the following objectives.
1.         To determine the relationship between Human capital management and organisational performance.
2.         To determine the effect of training and development on organizational performance.
3          To examine the role of environmental factors on organizational productivity.
4          To ascertain whether effective recruitment and selection boost human resource management.

1.4       RESEARCH QUESTIONS
For this study to accomplish it desired objectives, some basic research questions were formulated
1          What is the relationship between Human capital management and organisational performance?
2          What are the effects of training and development on organizational performance?
3          What role do environmental factors play in organizational productivity?
4          How do effective recruitment and selection boost human resource management?

1.5       RESEARCH HYPOTHESES
The following hypotheses was formulated and will be tested in their null forms.
1.         Ho:      there is no significant relationship between human capital
management and organisational performance.
H1:       there is significant relationship between human resource
management and organisational performance
2.         Ho:      Training and development do not positively affect Organizational
productivity.
H1:       Training and development positively affect organizational
productivity.
3.         Ho:      Environmental factors do not significantly affect organizational
productivity.
H1:       Environmental factors significantly affect organizational
productivity.
4.         Ho:      Effective recruitment and selection do not significantly boost
human resource management of an organization.
H1:       Effective recruitment and selection significantly boost human
resource management of an organization.

1.6       SIGNIFICANCE OF THE STUDY

1. The findings of this study will enable management appreciate better the need for effective manpower planning, training and development programmes in the organization.
2. It will show how an organization can develop and maintain a good workforce that will ensure or enhance organization’s effectiveness and increased productivity through effective management, planning and development.
3. The findings of this study would highlight the need for managers and trainers to design the content of their training and development programmes to reflect the needs of the employees and the organizations in other words, managers and trainees of business organizations will find the research findings very useful.
4. The study will be of immense help to other people and students who might wish to carry out research on the topic under study.

1.7       SCOPE OF THE STUDY
This study was limited to three manufacturing companies selected for the study: Anamco plc, Nigeria bottling company and Unilever Nigeria and the scope covers from 2006-2011. Basically, the study confirmed on the following concepts: definition of human resource management, model of human resource management, process of human resource management and human resource management in depressed economy. Etc.

1.8       LIMITATIONS OF THE STUDY
In the cause of carrying out this research, the researcher experiences some difficulties which manifested in the following ways.

1. Time constraint: Due to the limited time available for the study, the researcher could not go to place to source for enough information for the study.
2. Attitude of respondents: Some respondents are indifferent to the study because they feel they have nothing to benefit from the study financially or otherwise.
3. Finance: Due to financial constraints, the researcher could not visit some places to gather more information about the work.

1.9       DEFINITION OF TERMS
Human resource management: This is the process of accomplishing organizational objectives by acquiring, retaining, terminating, developing and properly using the human resource in an organization (Donnelly et al 1992:120).
Recruitment: This is the process of looking for prospective employees and motivating them to apply for jobs in the organization (Ezigbo 2007:401).
Development: This focuses on building the knowledge and skills of organizational members so that they will be prepared to take on new responsibilities and challenges (Obi 2004:48).
Environment: According to Church-man (1968:43 ) this is a fixed constraint to an organization, for the organization cannot control it or do anything about it, but at the same time, the environment is important to organization in the attainment of its objectives.
Compensation: This is defined as what an employees receive in exchange for their contribution to the organization. (Ikeagwu 2000:121).
Depressed Economy: This is an economy that is suffering from low level of business activity, low capital income, unemployment and inflation (Agu, 2004:8).