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This article seeks to examine the challenges and prospects of human resource management (HRM) in a developing‐country context. It focuses on contextual factors and employee involvement in analysing HRM to provide theoretical insights.

To explore the above theme, on‐site interviews were carried out with general managers, human resource professionals, line managers and union leaders in eight firms. Furthermore, a sample of 252 employees was included, thereby contributing to the generalisability of the findings.

This article provides substantial and current information on HRM knowledge and practices in Eritrea. The paper argues that some contextual variables impose certain challenges to HRM practices. However, evidence also reveals that the concept and knowledge of HRM practices, such as training, recruitment, compensation, employee participation, performance appraisal and reward systems, are in place with some indicators of local influence.

In light of the above findings, the article informs multinational companies that transferring managerial expertise to Africa may not necessarily be required, as the knowledge already exists there. A major limitation may derive from the use of convenience sampling in selecting the firms, but extreme caution is taken to get a faithful representation.

Contrary to the dominant view that African management is characterised by authoritarianism, this study shows the participative style of managers. Moreover, it incorporates the attitudes and perceptions of employees, a generally neglected part of HRM studies.

This paper seeks to examine employee reactions to human resource management (HRM) and performance. It placed employees on a centre stage in analysing HRM to provide theoretical insights.

To explore the theme, a survey of 252 employees drawn from eight organisations was conducted. Furthermore, on‐site interviews were carried out with managers, thereby contributing to the generalisability of the findings.

The findings from the study indicate a positive attitude of employees to HRM practices, such as promotion from within, staffing, equal employment opportunity, quality of training, reasonable compensation and paid vacation and sick days. Moreover, the evidence also shows that productivity has been increasing while employee turnover, absenteeism, and grievances are low. However, the evidence also reveals that training was not integrated in a planned way to employee career development.

The present study adds to a growing literature that helps the understanding of HRM policies and practices in a developing country context. Future research would benefit from additional research in this area in other geographical settings to better understand the generalisability of the findings reported.

In contrast with previous research, which has predominantly been conducted from a managerial perspective, this article deals with employee perceptions. This emphasises the importance of exploring employee reactions towards HRM practices, policies and other aspects of firm life.

The purpose of this study is to examine the extent to which organizations in Nigeria use various human resource management (HRM) practices, and the perceived challenges and prospects of these practices.

A combination of quantitative and qualitative research methods was employed to gather information. Specifically, data were collected from 253 managers in selected firms. Descriptive data analysis is presented with respect to the use and execution of HRM practices such as recruitment, selection, performance appraisal and training and development. In addition, information was collected and analyzed with regard to the challenges and prospects of HRM.

This study provides significant current information on HRM knowledge and practices in Nigeria. The findings reveal that HRM practices, such as training, recruitment, compensation, performance appraisal and reward systems, are still in place. However, issues of tribalism, AIDS, training and development and corruption are some of the challenges identified that need to be addressed.

The study was limited to 12 companies in ten cities. A broader geographic sampling would better reflect the national profile. Another limitation could stem from the procedure used in data collection method (drop off and pick up). However, extreme measures were taken to protect the identity of the respondents.

The study identified challenges and prospects of HRM in Nigeria. Organizations should employ requisite HRM practices to achieve excellent organizational performance. Furthermore, the government may create policies to promote the above practices, since, in the long term, achieving organizational excellence will reflect positively on the economy. All these may be facilitated through proactive organizational and national human resource development initiatives.

The significance of the present study stems from the fact that very few studies have explored the impact of human resource challenges and prospects in Nigeria. The results provide additional insights into HRM practices in Nigeria, a sub‐Saharan African country. A region that has been neglected by management researchers and has therefore been less researched. Also, the insights gained from this study contribute to the future development of this line of research, particularly in a non‐Western country like Nigeria.