Various types of business organizations pervade our society. They are engaged in manufacturing, transportation, agriculture, social/personal services, financing, communication, real estate, construction, whole/retail trade, and mining operations. Business enterprises purposely exist to provide goods and services for the needs and wants of the people at an optimum profit. Businesses similar to other organizations operate through the utilization of its human, financial, technological and material resources. Its concern in the management of its operation is to attain maximum efficiency and productivity to achieve its desired level of profit.
Since business establishments are human organizations, people are very essential in its existence and success. It is not surprising, therefore, that management is constantly concerned with the company's effective human resources (Miner, 1985). Effective human resources management (HRM) as a central concern of every owner /manager of the enterprise, in effect, involves a series of decision- making that affect the relationship between employer and employee. These decisions can either be strategic or operational in nature, depending on the present condition and the future direction of the firm. The major concern of HRM is no longer mainly focused on the recruitment and hiring of employees, filing of employees ' records and monitoring their attendance, but it now encompasses other important aspects such as compensation, development, labor relations, maintenance and separation of employees. These broader functions of HRM in the context of the changes that occur within and outside the firm, such as the changing mix and values of the labor force, varying levels of productivity, rapid advancements in technology, changing demands of the government and society, increased internationalization of domestic labor relations, and changes in the socio-political climate, have become more complex and challenging (Flippo, 1984; Giblin, 1984).