TABLE OF CONTENTS
1.2 BACKGROUND TO THE STUDY
1.3 STATEMENT OF THE PROBLEM
1.4 OBJECTIVE OF THE STUDY
1.5 RESEARCH QUESTIONS
1.6 STATEMENT OF THE HYPOTHESES
1.7 SIGNIFICANCE OF THE STUDY
1.8 JUSTIFICATION OF THE STUDY
1.9 SCOPE OF THE STUDY
1.10 DEFINITIONS OF TERMS
2.1 CONCEPTUAL FRAMEWORK
2.2 THEORETICAL REVIEW
2.3 LITERATURE ON THE SUBJECT MATTER
2.4 LITERATURE GAP
3.0 AREA OF STUDY
3.1 RESEARCH DESIGN
3.2 SOURCES OF DATA
3.3 STUDY POPULATION
3.4 SAMPLE SIZE
3.5 RESEARCH INSTRUMENT
3.6 INSTRUMENT VALIDATION
3.7 RELIABILITY OF RESEARCH INSTRUMENT
3.8 TECHNIQUES OF DATA ANALYSIS
3.9 LIMITATION OF THE STUDY
DATA ANALYSIS, FINDINGS AND DISCUSSION
4.0 DATA ANALYSIS, FINDINGS, AND DISCUSSION
4.1 DATA ANALYSIS AND FINDINGS OF THE STUDY
4.2 Test of Hypothesis
4.3 DISCUSSION OF FINDINGS
SUMMARY, CONCLUSION AND RECOMMENDATION
This project is dedicated to Almighty God who is the fountain of knowledge, and to my immediate family for their support. I therefore pray that the Almighty God who is gracious and merciful should abundantly bless and protect them in Jesus name.
First and foremost, my gratitude goes to the Almighty God who gave me life and strength to complete this project against all odds.
I wish to acknowledge my project supervisor Dr. Pauline Ebere Onyeukwu who painstakingly went through my project to make sure that all corrections where effected and on time. I also wish to appreciate the effort of Mr. Leslie Acheson Wey who is the country Director, Centre for African Development and Economic Empowerment for the guidance; I graciously appreciate you both for your patience in dealing with me.
I wish to appreciate acknowledge the moral support and understanding shown by my dear wife Deaconess Lydia Adetola Adeyemi and my wonderful children (Esther, Peace, Comfort and Faith) throughout the period of this project work which is part of the requirement for the fulfilment of my dream to obtain MBA. Also the effort of my spiritual son Mr. Godspower Harrison Eyenobong must be acknowledged.
This study examines the relationship between the Human Resources Planning and Organizational Performance in National Insurance Corporation of Nigeria (NICON) Abuja . The objectives of the research work are as follows: to ascertain the relationship between human resources planning practices in NICON Insurance plc and organizational performance. To ascertain whether the recruitment of qualified personnel have significant relationship with the organization performance and finally to examine step by step process to be taken to make Human Resources planning in NICON Insurance company to become more effective. In order to achieve higher degree of certainty in accuracy for the measurement of this research the Statistical Package for the Social Science (SPSS) was used for the analysis of data collected from primary source through the questionnaire administered, while the Taro Yamane was used as a means of deriving the sample size. The findings from the first test of hypothesis using the coefficient of correlation method revealed that there is a positive relationship between human resources planning and organizational performance. Also the study revealed that organizational performance can be enhanced through involvement of employees in the planning of human resources as well as the quality of personnel recruited. Finally,the study revealed that human resources planning has significant relationship with organizational performance. This study recommend thatHuman resources accounting should be incorporated in the human resources planning practices of the organization. Also to enhance efficiency in organizational performance, human resources practices should be applied in both private and public organizations. Furthermore, Human resources planning should involve practices for forecasting human resources demand and productivity in the Insurance Industries in Nigeria. Finally, NICON Insurance plc should ensure that proper human resources planning programs are conceived to help in developing personnel skills and abilities.
LIST OF TABLES
Table 3.3.1 NICON Staff strength in their various level
Table 4.1.1: Distribution of Administered Questionnaires
TABLE 4.1.2: Analysis of respondents Bio-data
TABLE 4.1.3: Analysis based on Marital status
TABLE 4.1.4: Analysis based on Age of Respondents
TABLE 4.1.5. Analysis based on Academic Qualification of Respondents
TABLE: 4.1.6 Analysis based on work Experience of the Respondents
TABLE 4.1.7. Analysis based on current level of Respondents
Table 4.1.8: Do you think the involvement of employees in the planning of human resources could enhance organizational performance?
Table: 4.1.9: Could organizational performance be said to depend on the quality of personnel recruited into the organization?
Table 4.1.10 Can human resources planning help to improve organizational performance?
Table 4.1.11 Do human resources management planning make manpower planning more effective?
Table 4.1.12: Does estimating the future organizational need of human resources influence the work of personnel management?
Table 4.1.13: Does forecasting of manpowerrequirements improves management efficiency?
Table 4.1.14 Does human resource planning has impact on the overall business planning objectives of NICON Insurance?
Table 4.1.15: Do human resources planning have effect on NICON Insurance profitability?
Table 4.1.16: Do human resources planning practices have relationship with organizational performance?
Table 4.1.17: Does planning human resources recruitment influence organizational performance?
Table 4.1.18: Do you think recruitment exercise is a means to an end?
Table 4.1.19: Does the usefulness of human resource management limited to large organizations?
Table 4.1.20: Does human resource planning include general preparation and plans for retirement?
Table 4.2.1: Human resource planning have significant relationship with the organizational Performance.
Table 4.2.2: Organizational performance is a product of its innovation one of which is human resources planning practices.
Table 4.2.3: Coded responses from questions 1 and 2 above
Table 4.2.4: Correlation results
Table 4.2.5: Recruitment of qualified personnel have significant relationship with the organizational performance.
Table 4.2.6: Organizational performance is possible where there is staff Motivation.
Table 4.2.7: Coded responses from questions 3 and 4 above
Table 4.2.8: Correlation results
LIST OF FIGURES
Fig 3.3.1: Staff Strength at the various levels
Fig. 4.1: Distribution of Administered questionnaires
Fig 4.2: Gender of Respondents
Fig. 4.3: Analysis of marital status of respondents
Fig 4.4: Analysis of respondents' ages
Fig 4.5: Analysis of academic qualification of respondents
Fig 4.6: Analysis of years of experience of respondents
Fig 4.7: Analysis of respondents ‘staff categories
In every organization human resources manager is responsible for the coordinating and controlling of employees so as to develop the organizations’ performance. In today’s market, the effective use of human resources in order to reach the objectives of the company is very important. Hence for the sake of this research the area of human resource management that is of focus is the practice of planning by the human resource department (Eniola& Elizabeth, 2013). Human resource planningis a process that identifies current and futurehuman resourcesneeds for an organization to achieve its goals.Human resource planningshould serve as a link between human resourcemanagement and the overall strategicplanof an organization.
Large numbers of employees, who retire, die, leave organizations, or become incapacitated because of physical or mental ailments, need to be replaced by the new employees. Human resource planning ensures smooth supply of workers without interruption.Human resource planning is essential in the face of marked rise in workforce turnover which is unavoidable and even beneficial. Voluntary quits, discharges, marriages, promotions and seasonal fluctuations in business are the examples of factors leading to workforce turnover in organizations. These cause constant ebb and flow in the work force in many organizations. In any case, various analysts exposed that human resource planning practices are accepted to be the basic constituent of organizational procedure (Benjamin & Anthony, 2014). In such manner, the organizations need wise, instructed, skillful, conferred and profoundly energetic employees to build up a way for boosting the organizational performance. Thusly, human resource management generally implies the undertakings looking over employees, counseling with them, instructing them, empowering them through training to shape their tenacity, accomplish their potential endeavors and to encourage the organizational destinations (Fahad, Nadeem & Samsaa, 2015) Organizations have increasingly acknowledged the fact that the company’s human resources are valuable and can be a unique source for competitive advantage, no wonder most companies have to pay dearly in terms of organizational performance for neglecting this fundamental principles of effective human resources planning.
1.2 BACKGROUND TO THE STUDY
The term "human resource management" has been commonly used for about the last ten to fifteen years. Prior to that, the field was generally known as "personnel administration." The name change is not merely cosmetics. Personnel administration, which emerged as a clearly defined field by the 1920s (at least in the US), was largely concerned with the technical aspects of hiring, evaluating, training, and compensating employees and was very much of "staff" function in most organizations. At first the field did not focus on the relationship between employment and overall organizational performance or on the systematic relationships among such practices, but clearly today it is no longer so since organizational performance is hinged on the aspect of planning of the human resources in an organization. According to Sikula “the ultimate purpose/objective of human resource planning is to relate future human resources to future enterprise need so as to maximize the future return on investment in human resources”.
NICON Insurance plc, was incorporated on April 2nd 1965 to underwrite non-life class of insurance business, as the Nigeria insurance company limited following the merger of the northern assurance company limited and white cross Insurance company limited, both oversees insurance companies. The company commenced operations on October 1, 1965. In 1990, the company was renamed The United Nigeria company PLC following the divestment of government interest in the company under the Federal Government Privatization and Commercialization Programme. The company was again renamed NICON Insurance PLC by a resolution passed by the shareholders at the 29th Annual General Meeting in Lagos, Nigeria on the November 9th 1994.
However, consequent upon the commencement of the second phase of the Federal Government Privatization Policy, NICON Insurance was privatized and restructured by President Olusegun Obasanjo led Government, which means it was no longer going to enjoy subvention from either the government or any other organizations Agencies since December, 2005, Thus, it was required to generate its own funds, operate profitably and be able to pay dividend annually to its shareholders. In the year 2007, the company underwent a corporate restructuring so as to be better positioned, given that for the 40-years period of its operation it has an asset base of N46.9bn with 40 branches and Six regional offices, which made it possible and modest to classify NICON as a colossus in the insurance and other financial services sector as at then.
1.3 STATEMENT OF THE PROBLEM
The success of any organization depends very crucially on the efficiency and effective use of its skilled, trained and productive employees. Therefore, the need for human resource planning is also felt in order to identify areas of surplus personnel or areas in which there is shortage of personnel. Then, in case of surplus personnel, it can be redeployed in other areas within the organization. Conversely, in case of shortage of personnel, it can be made good by downsizing the work force. The Insurance sector in Nigeria for the last few decades has indeed performed low with respect to the population and its contribution to GDP as this can be part of the fundamental reason while this topic was also chosen, such cognizance is not unconnected with the falling unacceptable standards in the Insurance industry in the country. In order to produce quality and adequately qualified personnel that can drive the insurance sector as a whole then there is need to start with planning which is an essential aspect of human resource, lack of personnel planning may lead to poor productivity for any Organization, hence this research is meant to address the following challenges in NICON Insurance company which include;
Lack of Staff development, there is no correlation between Human Resource Planning and Organizational performance, over emphasis on paper Qualification. Those challenges have been hampering the organizational productivity. The problem spurs the research to proffer solution.
1.4 OBJECTIVE OF THE STUDY
The main objective of this study is to examine the Effect of Human Resources Planning on the organizational performance of NICON Insurance PLC, as it affects the staff performance.
Specific objectives include
i. To ascertain the relationship between human resources planning practices in NICON Insurance plc and organizational performance.
ii. To ascertain whether the recruitment of qualified personnel have significant relationship with the organization performance.
iii. To examine step by step process to be taken to make for Human Resources planning in NICON Insurance company to become more effective.
1.5 RESEARCH QUESTIONS
i. What is the relationship between Human Resources Planning practices and Organizational Performance?
ii. What is the relationship between recruitment of qualified personnel and organizational performance in NICON?
iii. What steps can be taken by an organization to make Human resources planning more effective?
1.6 STATEMENT OF THE HYPOTHESES
H01: Human Resources Planning has no significant relationship with Organizational performance
H11: Human Resources Planning has significant relationship with Organizational performance.
H02: Recruitment of qualified personnel has no significant relationship with organizational performance.
H12: Recruitment of qualified personnel has no significant relationship with organizational performance.
1.7 SIGNIFICANCE OF THE STUDY
It is known that Nigerians lag over development this is borne out of the fact that her human resources have not been capable enough to take adequate care of the material resources. It is the human resources in the society that determine how well the material resources will be utilized. The inability to get the human resources fine-tuned must have been due to certain problems. The crux of the matter is that if the trend continues, the issue of efficiency will continue to be a mirage to the nation. Adequate care should therefore be taken to grapple with the problems that hamper Human Resources Planning and Management. This study has practical and theoretical significance. Practically, the study seeks to examine the organizational structure vis-à-vis the underlying factors militating against Operational performance in an organization which could be improved upon and human resource planning is key function of the personnel department. This calls for an indebt study with a view to suggesting an enduring solution to them.
1.8 JUSTIFICATION OF THE STUDY
The study has become very important because of the persistent dwindling finances and inherent dislike for insurance products in Nigeria by the Nigerian population and its effects on the overall insurance industry. This study will have to prove that if a company neglects Human Resources Planning Practices it will definitely have effects on the company organizational performance.
1.9 SCOPE OF THE STUDY
The study is limited in scope to NICON Insurance Nigeria, particularly to the administrative Head office and staff (senior and Junior) as against a wider scope which would have included management staff, sector economy of the country and as well contribute to the body of knowledge.The study focuses on the Significance of Human Resources Planning Practices on organizational Performance and how it improves management efficiency. The findings from this study will be used to assist the private companies and the public sectors.
1.10 DEFINITIONS OF TERMS
Human Resources Management, it is the management of human resources commonly referred to as HR department, it is designed to maximize employee’s performance in service of an employer’s strategic objectives.
HumanResourcePlanning: this is a process that identifies current and futurehuman resourcesneeds for an organization to achieve its goals.Human resource planning should serve as a link betweenhuman resource management and the overall strategicplanof an organization.
AssessingNeeds: Human resource planning is also required to determine whether there is any shortage or surplus of persons in the organization. If there are less persons than required, it will adversely affect the work. On the other hand, if more persons are employed than the requirement, then it will increase labour cost, etc. Human resource planning ensures the employment of proper workforce.
LabourTurnover: There is always labour turnover in every organization. The degree of labour turnover may vary from concern to concern but it cannot be eliminated altogether. There will be a need to recruit new persons to take up the positions of those who have left the organization. If the concern is able to forecast turnover rate precisely, then advance efforts are made to recruit and train persons so that work does not suffer for want of workers.
NICON: National Insurance Corporation of Nigeria
Privatization: can be defined as the transfer of Government owned shareholding in designated enterprises to private shareholders, comprising individuals and corporate bodies. Privatization is an umbrella term to describe a variety of polices which encourage competition and emphasize the role of market forces in place of statutory restrictions and monopoly powers.
Commercialization: is defined in the TCPC Decree No 25 of 1988 as the reorganization of enterprises wholly or partly owned by the Federal Government in which such commercialized enterprises shall operate as profit making commercial ventures without any subvention from the Federal Government.
Organizational efficiency, is the organization’s ability to implement its plans using the smallest possible expenditure of resources. It is an important factor in the firm's organizational effectiveness, this being the ease and degree of success with which the organization is able to accomplish its aims.
Operational performance management, (OPM) is the alignment of all business units within an organization to ensure that they are working together to achieve core business goals.
Training and Development, in Human resource management is regarded as a function concerned with organizational activity aimed at bettering the job performance of individuals and groups in organizational settings.
Human resource planning is one of the most important elements in a successful human resource management program (De cenzo & Robbins, 1988). Human resource planning is the core of human resource management. It determines that the right number of people with the right skills, in the right job position at the right time is employed in the organizations. Human resource planning aids organizations to forecast, recruit and retain competent workforce in order to meet the organizational goals. Walker (1980) defines human resource planning as analyzing organization’s human resource needs under changing conditions and developing the activities necessary to satisfy these needs. Vetter (1967) also defines human resource planning as the process by which management determines how organizations move from current position of manpower to its desired state. Human resource planning is an ongoing process that is not static involving many interrelated activities which must be modified and updated as conditions require.
According toOgunsaju (2006), personnel management is the effective mobilization of human resources based upon appropriate recruitment, selection, training and placement of appointed staff in order to achieve the organizational set down goals and objectives. It could also be defined as the effective utilization of human resources in an organization through the management of people and related activities. The term planning is used in so many different ways that there is often confusion about what people actually mean when they talk about planning or when they use the words such plans and planner. Moreover, many of its uses are so broad that the basic elements of planning are difficult to identify, and it cannot easily be distinguished from related activities such as policy-making or plan implementation. It was partly this confusion which led one writer on the subject to title his article, “if planning is everything, maybe it’s nothing” (wildavsky, 1972).
Conyers and Hill (1984) defined planning as a continuous process which involves decisions or choices about alternative ways of using available resources, with the aim of achieving particular goals at some time in the future. According to Nyerere(1969), planning involves making decisions about which of a number of courses of action to adopt in order words, making choices. He further emphasized that, it is not possible to provide everything for everybody at once and that the plan represented the result of process of choosing which thing should be given priority attention. Planning, he said; means choosing between many desirable activities because not everything can be done at once (Nyerere 1969). Planning involves deciding what should be done, how it should be done and when it should be done in determining organizational goals and the means of achieving those goals of the organization (Williams, 2000). Planning therefore helps to ensures that individuals working together in an organization understand the purpose of their organized effort and the task ahead of them. Thus, it helps people within the organization to know what is expected of them. “Unless there is planning events are left to chance; its core importance resides in its ability to minimize risk while taking advantage of business opportunities” (Koontz et al, 1981).
As regards human resource, planning entails taking care of current and future manpower needs of the organization (Frantzeh, 1981). There is a close link between manpower planning and strategic organizational planning. This is because for effective manpower plan, there must be a reliable input or information as regards the future direction of the organization in respect of the type of activities it would be involved in the future, the type of skills required. Thus, human resource planning is sometime called manpower planning. Other term used are personnel planning and employment planning (Koontz et al, 1981). Therefore, human resource planning is the process of determining and assuring that the organization will have an adequate number of qualified persons available at the proper time, performing jobs which meet the needs of the organization and which provide satisfaction for the individual involved.
Dessler, (2001), opined that human resource planning is an ongoing process that is not static involving many interrelated activities which must be modified and updated as conditions require. It includes the planning and development of human resource program, such as recruitment, performance appraisal, and training to ensure that people’s needs in the organization are met. Strictly speaking, we should call this function “human resource planning and action programming.” Furthermore, human resource planning requires detailed analysis of the present and the future to ensure that the organization has the right number of people available who possess the right kinds of skills to perform the jobs required by the organization when the work is needed (Izueke, 2009).
The basic for human resource planning is the competitive organizational strategy of the enterprise as a whole. Mathis and Jackson (1977) see human resource planning as the process of analyzing and identifying the need for the availability of human resources so that the organization can meet its objectives. According to Griffin (1977), human resource planning involves assessing trends, forecasting the supply and demand of labour and then developing appropriate strategies for addressing any differences. Dessler (2001) further sees human resource planning as employment planning which, is the process of formulating plans to fill future openings based on an analysis of the positions that are expected to be opened and whether they will be internally or externally. This is why Ogunniyi (1992) in handling the subject says that manpower planning is a concept that involves critical analysis of supply, demand, surplus, shortages, wastage and utilization of human resources whose primary goal is the adoption of policy actions and strategies which will not be stressful and or be a negation of endeavors to balance the equation of supply and demand required for socio-economic and political development of a nation. Human resource planning can generally be seen as activities involving processing people into, through, and out of the workplace.
2.1 CONCEPTUAL FRAMEWORK
Human resource planning is a management activity that involves a careful analysis of existing workforce, which specifically involves analysis of: Workforce inventory (disaggregating it into skilled and unskilled, technical and non-technical etc.); Relating the disaggregated workforce to the job involvements and requirements for an organization like NICON Insurance (e.g administrative staff/marketer ratio, proposed productivity level and available work-hours); this analysis helps in calculating the required personnel an establishment needs; so as to determine if there is shortages or surplus of workforce. Henri Fayol, (1980), asserted that, Scientific human resource planning makes the organizations to acquires the right number of qualified people in the right job at the right time. Therefore, human resource planning is the most essential for industrial productivity.
Furthermore, in order to ensure that the organization gets right people at the right time and right place, Human resources systems like Human resources planning, recruitment and selection are implemented. Effective implementation of these systems ensures that organization gets the required benefit that comes from human resources. These systems are explained in details in this chapter. The first system is Human resources planning, followed by recruitment and selection. However, for the purpose of this research Human resources planning and recruitment would be our focus. Human Resource Planning is and remained one of the most important part of the overall human resources system of the organization. The quality of this system decides the overall human resources quality in the organization. It is very important to study and evaluate human resources planning process in order to understand the overall status of human resources system in an organization. This is a forward looking process which decides future requirement and quality of manpower to achieve organizational goals.
2.1.1 Forecasting Human Resources Demand
Armstrong (2012) defined forecasting human resources demand as the process of estimating the future numbers of people required and the likely skills and competencies they will need. The traditional approach of calculating demand is characterized by making use of ratios to devise strategy in order to confront opportunities and threats from external environment (Pradeesh, 2011). A greater utilization of technology helps to analyze competitive forces that could reflect an increase or reduction in employees’ levels. Forecasting human resources demand involves a practical level determination size of personnel and type of workers that company will require in the future. The demand for the organization’s product or service is integral part of the optimization. Therefore, it is imperative to project beforehand markets and sales figures. This will determine the personnel needed to serve the projected capacity. Noe (2012) mentioned other factors that influence forecasting demand for personnel which include budget constraint, turnover due to resignations, contract terminations, transfers and relocations, retirement, new technology in the field, decisions to upgrade the quality of services provided and minority hiring goals. Failure to anticipate future human resource needs leads to last minute decision making which is not always advisable for managers in organizations. It is proper that managers take their time to forecast future human resource needs which helps to save money and time in future. Noe (2012) explained that when it comes to the human resource planning context, a mathematical formula is used to project future demands of human resources based on an established relationship between an organization’s employment level and some measurable factors of output such as revenue, sales or production level. Estimating the Future Organizational Structure or Forecasting the Human ResourcesRequirements, also impliesthat management must estimate the structure of the organization at a given point in time. For this estimate, the number and type of employees needed have to be determined. Many environmental factors affect this determination. They include business forecasts, expansion and growth, design and structural changes, management philosophy, Government policy, product and human skills mix, and competition. Forecasting provides the basic premises on which the human resources planning is built.
In determining the requirements of human resources, the expected losses which are likely to occur through labour turnover—retirement, death, transfers, promotions, demotions, dismissals, disability, resignations, lay-offs and other separations — should be taken into account.
It may be noted that for purposes of human resources planning, the main dimensions to be taken into consideration are:
(i) The total number of personnel available, this could be obtained from the pay-rolls and other personnel records, such as the applications for employment.
(ii) The job-family, i.e., a detailed job-description for each position.
(iii) Age distribution of the employees available in the present departments.
(iv) Qualification and experience desired, such as a person with 5 years or 10 years’ experience in a particular branch/job.
(v) The salary range etc.
2.1.2 Strategic action
Strategic actions are human resource actions taken in order to enable an organization achieve its goals. It is a disciplinary and creative process for determining where the organization should be in the future and how to tackle the future with the help of human resource staffing activities (Graf, Hemmasi & Strong, 1996). Strategic actions for human resource entails staffing activities carried out in order to achieve organizational success in the long run. Strategic actions tend to take an organization from where it is to where it wants to be. It is a series of action initiated to form human resource strategy. Strategies which are used to meet human resource needs include restructuring strategy, training and development strategy, recruitment strategy and outsourcing strategy.
2.1.3 Issues of Human Resources Training and Development
Staff training and development come under the purview of personnel function in most organization, whether public or private. The importance of staff training and development in any organization is clear if we recognize the fact that the structure of any organization depends on the individuals that make and operates the structure. Staff training and development can occur simultaneously or complementary, but the two do not necessarily have direct relations to each other.
Training on the Job and some form of in-service training are examples of training being designed or intended to develop the knowledge or expertise, greater confidence and a higher degree of performance. The principal intention of training according to Akpan (1982:128) is to equip people with the knowledge required to qualify them for a particular position of employment or to improve their skills and efficient in the position they already hold. Staff development, on the hand, implies growth and the acquisition of wide experience for future strategies and advantage of the organization. Mitchell (1979:119) also noted the popular convention to think of training as dealing primarily with operative personnel and development, with managers and executives. He went on to treat each of the concepts separately. However, he admits that “even though while there are differences between the two processes, there is also considerable overlap” Ngu (1990:25) opined that it is safer to argue in favor of this “Considerable overlap” because there is very little to be said of their differences. To him (Ngu) “both Training and development are purposefully geared towards improvement on skills and performance.
Both involve mounding or improving of worker’s characteristics toward achieving organization objective. The differences between the two processes may be in content and method. So what is training? Training is a systematic process of changing the behavior, knowledge and/or motivation of present employees to improve the March between employee characteristics and employment requirement (Milkovich et al 1988). Training at one extreme consists of a few hours of induction by the supervisor, who gives the new employee a skeletal outline of company policies and on the other extreme, it consists of several years of formal courses designed to develop qualified specialist
(Strauss et al 1980) Ngu (1990: 25) defines training and development as “The process of behavioral modification or molding of workers in order to integrate organizational needs with their characteristics. Manpower training is viewed as a means of equipping employees with the necessary skills and knowledge to enable them perform their job better and as a way of solving employee problem of self-improvement, advancement and better placement. Training involves formal and informal methods and both could be on or off the job training.
The efficient of any organization depends directly on how well its members are trained. Newly hired employees usually need some training before they take up their work: Older employees require training to keep alert to demands on their present Jobs and to prepare for transfer, and promotion. Training also motivates employees to work harder. Employees who understand their Jobs are likely to have morals, they are able to see a closer relationship between their effort and performance. Effective managers recognize training as an ongoing continuous process not a one-short activity; new problems, new procedures and equipment, new knowledge and new Jobs are constantly creating the need for employee instruction.
Training and development is so important that it is not only imperative but continuous. No organization can dispense with it as a programme and as a process (Ngu: 29) 1992; 2. Supporting this view, Pigor and Myers (1981) admit that “no organization can choose whether or not train employees.” All new employees, regardless of previous training, education, and experience need to be introduced to their new employer’s work environment and to be taught how to perform specific tasks. Training may be defined as an organized and coordinated development of knowledge skills and attitudes needed by an individual to master a given situation or perform a certain task within an organizational setting. Craig (1967) defines training as the development process made possible through the device of words and signs. So training is the formal procedures which an organization uses to facilitate employees learning of the organizations as well as the individual’s goal and objectives. Staff development on the other hand, according to Akpan (1982), is the process whereby an employee is enabled to grow in the job, through the acquisition of work experience, breadth and increasing confidence resulting from the exercise of varied and tested responsibilities. The aim is to enable him to reach the top or achieve his best in his profession of employment. Such a position will be attained through action, observation, study reflection, experiment and initiative (Onah:2003:127) As Cole (2002;29) puts it staff development should be seen as any learning activity which is directed towards further needs rather than present needs and which is concerned more with career growth than immediate performance. The focus of staff development tends to be on the organization’s future staff requirement and on the growth needs of individual in the work place.
2.1.4 ObjectivesOf Planning Human Resource Needs With RespectToHuman Resources Training/Development
Training is a process that develops and improves skills related to performance. Training objectives or needs can be derived from the manpower situation. The existing human resource situation determines the training objectives both as organizational and national level. To be able to identify training needs, therefore, we would like to take a comprehensive human resources survey which is usually an aspect of human resource planning (Ngu 1990:27) Caldwell identify four major training objectives, this includes the achievement of capable men and women prepared through training to perform the tasks that the national welfare requires, mobilizing for attach upon national problems thirdly a tool for enlarging human resources and productivity, fourthly, the designing for constructive channeling of human resources. These training objectives as identified by Caldwell are rather two broad with emphasis on national training policies and objectives with no emphases on organization. The objectives of human resources training and development can be summarized thus:
i. Improve efficiency, and morale
ii. Introduce new techniques
iii. Provide for succession, enables qualified replacement to be available
iv. Raise the standard of unskilled personnel, thus helping them overcome Labour shortage.
v. Develop supervisors and decrease the amount of supervision needed.
It is pertinent to note that most organization does not regard training as professional activities, and in many cases training officers are not themselves trained. Many courses are held and employees sent on courses or educating unskilled though without any serious though being given to the real training needs of an organization. Effective training Programme, according to Blun and Naylor (1976), can result in increased productivity, reduces Labour turnover and greater employee satisfaction. They should include all employees from factory, workers to executives and apply not only to inexperience workers but also to experienced workers new to the enterprises. They also note that a training Programme should also include those that are promoted to higher level jobs and the periodic retraining of present employees by means of refresher course.
In this direction, McCormick and Tiffin (1977) categorizes trainingprogrammes in organizations into three forms, namely orientation training, on-the-job-training, off-the-job training. Closely related to the above, are the training needs of the staff in organization. McCornick and Tiffin believe that training needs differ from group to group and as such adequate planning is required. According to them, the training needs of people in organizations tend to fall into two groups which more or less blend into each other. First, there is the need to provide specific Job training, especially, for new employees and sometimes for present employees who are deficient in job performance. Second, there is the need in most organizations to provide training of a personnel development nature that will contribute to the longer –range effectiveness of the individuals in question. Although personnel development training programmes have generally been limited to executives and the managements class, the changing times emphasis the desirability, of such training for other groups in order to combat the occupational obsolescence of professional and scientific personnel. Tobias (1967) view the following as a balanced human resource programme; Recruitment, Development, motivation, Education, training, utilization and stabilization. To him, training programmes prepare the worker for efficient Labour force participation with respect to giving occupation that comes as a result of coordinated human resource planning . He concludes that training is endless so long as a man works, he learns and teaches others at all levels Regarding management development, Ubeku (1975) observes that the plan of management development should aim at
- Systematically transferring general management knowledge, policies and procedures for managing the company to all managers.
- Appraising and maintaining all inventory of all candidates moved as qualified for replacements for manager positions.
- Improving the present performance of all managers’ on-the-job development methods directed at individual needs
- Broadening managers for higher responsibilities through outside and on-the-job programmes activities and courses.
In general, Nigro and Nigro (1977) feel that the objective of an executive development programme is to improve the executive and understanding of such areas as planning, coordination, communication, decision-making, delegation, headquarters, field relations, legislative relations, and public relations.
Writing on the training and development of the executives in developing countries, Mutahaba (1986) opines, that it is no longer in dispute that training and development of public administrators contribute to improve performance. This increasing acceptance of the importance and significance of training in public administration is according to Stone and Stone (1978) and Goshin (1979), indicated by the attention giving to it in many countries of the world.
According to Mutahaba (1986), there is recognition that training and development in developed countries should include all categories of public service personal from the most senior to the most junior and middle level public service personal. Senior and top executives have generally been left out. This is particularly true in Africa, as participants in the tenth anniversary conference of the African Association for public administration (AAPA) held in Lagos, Nigeria in 1982 observed. A study focusing on Administrative training in Nigeria, Ghana and Seria lone byMutahaba (1986) confirms the above observations. It shows that although the mandates of the institute of public administration and management in the three countries provided for the holding of training programmes for all levels of personnel, including top executives, attendance by top executives appears to be a rare phenomenon.
Similar observations could be made with respect to situations obtainable in many other African countries as Schaffer (1978) remarked. Available evidence would therefore tend to support, this observation that top executives in African public services attendedexecutives’ development courses. Without attributing the poor state of public administration to that factor alone, there might be some validity in Tyagi’s (1975) observation that the poor countries its performance of public administration in third world countries in a great measure, a function of the neglect of training and development of personnel. In the same view Carmichael (1986) writing on civil services training in Zambia concludes that improving the performance of civil servants though training is important if the public sector is to play an effective role in achieving national development in African. According to him, this is not uniquelyAfrican concern, but Civil Service training in African countries has a reputation for poor organization and management. This need for improvement in this area was recognized in the logos plan of action for creating self-reliant economic and school development in Africa (1980). Most of the writers on this subject matter have come out with the conclusions that the need for training and development cannot be overemphasized, yet public organizations place it at bottom of their priorities.
Ubeku (1983) notes that employees who have not received adequate training before being assigned responsibilities lack the necessary confidence with which to carry out their jobs. He then suggested that an employee should be helped to grow into more responsibility by systematic training and development so that he will be confidence enough to carry out the responsibility of the job. This, according to him, is because training increases the employee’s belief that he knows what is expected of him regarding the job, the knowledge of which enables him to originated ideas as to how best to carry out this task of the job. Conversely, those not trained tend to cling to methods they were shown the first time they took over the job and are frightened at doing the job in a different way because something might go wrong and they cannot afford to take the risk.
Hilgert and Dowl (1978:81) in their book lifted cases and policies in Human Resources management” look at the training and development of staff as not only capable of reducing organizational/employee conflict but can also motivate staff in their work place. In their own words, a well-conceived training and development program can contribute to a lessening or reconciliation of conflict. Thus, a challenge and an opportunity is presented to even manager to make each employee better able to serve the firm, while at the sometime realizing greater satisfaction of individual needs and aspiration.
Furthermore, the authors observations that training is also related to employee motivation agrees with French’s notion that employees who knows and understand their Jobs and who feel that for future management values they are enough to prepare them for assignments are more likely to demonstrate higher morale and greater interest in the Job.
French in 1988 describes the dynamism of motivating people through training programme in the following words: In order to change behavior in the direction of greater contribution to the attainment of organizational goals, the individual must perceive the new expected behavior serving to fulfill needs at least, and not leading to deprivation of fulfillment. Supplementing goals and needs that are within reasonable reach of employees is very important in providing motivation as it relates to training and development. In other words, the environment must be conducive to change in behavior. The implication of the training motivation correlation for organizations sponsoring their employees on training programmes-is perhaps more critical for the public service, particularly in developing countries where government is the largest employer of Labour and the problems of motivating the workforce is rather daunting. The task of the public services as an organization seeking to improve the performance of its workforce through training is to guarantee an environment conducive for the trainee to return to or else beneficiaries of employee –sponsored training programmes would not see training received as a motivator for greater job performance. The point is all the more important given, the facts that the need for an organization training its employees in the first place is to equip them with knowledge that would enable them to contributes their quota to organizational growth and development. Since the final learning in whatever sphere of organizational activities takes place on the job, it is crucial that all external training is planned to helpthe trainees or employee meet the on-the job demands.
Thus, as soon as possible after the acquisition of the necessary or new knowledge, the employee should have the opportunity to put the acquired knowledge to practical use. In the words of French, to be effective, training and development must be perceived as leading the attainment of needsatisfying goals as well as to the avoidance of ego-damaging events” Gibson (1972) has given an elaborate definition of the desired goals sought by training as productivity maintenance and productivity enhancement. In terms of productivity maintenance, he further asserted that, and I quote: “Much of human resource training is a form of maintenance expense. New people are constantly being lured and must be indoctrinated and trained. Experience productive employees leave the company for many reasons, such as retirement and are replaced by those who need training and experience. In term of productivity enhancement, he opined that some training and development may be, or can be strategic in nature, that is designed to obtain fuller utilization of human resources and thereby increase rather than merely maintaining productivity.
In his process system model of organization, French viewed the training and development functions of organizations as a process which is a complex amalgamation of many sub-processes aimed at increasing the capability of individuals to contribute to organizational goal attainments.
Thus, so far, all the literature review point of anything that is of importance to the manpower training and development in an organization and the reason why these cannot be over looked or jeopardized. The last area of the concepts of manpower training and development to be discussed is training needs. Training needs are basically any short fall in employee performance or potential performance which can be remedy by appropriate training (Cole, 2002). There are many ways of overcoming deficiencies in human performance at work, and training is just one of them. As lack of training is dysfunctional to organizational performance, adequate care should be taken to recognize when training is needed.
According to Nwachukwu (1988: 121) occasions that employees in any organization require training include the following; when there is lack of interests in one’s job, negative attitude to work, low productivity, Tiredness, excessive absenteeism rate, excessive complaints, highly rejects or low quality output, high incidence of accidents and insubordination. Whenever these conditions are experienced among staff, Nwachukwu contends that the organization should consider organizing training. As those situations are frequent occurrences in organizations, the implication is that training has to be regular. Put precisely, training should be a continuous exercise in a well-run establishment. Every time you get someone to do work the way you want it done, you are training that person, every time you give instructions or discuss a procedure, you are also training the person involved. It is along this principle that’s the Civil Services Reform in Nigeria emphasizes that training of Civil Servants will no longer be sporadic, unstructured and anomic. It stated further that training would henceforth be considered as a right of every civil servant and an obligation on the government.
Once the symptomatic indicators of training needs here been observed the most next important things to do is to determine which area training is needed. This step is important becomes training could be a waste of time and resources if the area of emphasis in training is not precisely isolated (Beach 1975; 375), (Nwachukwu, 1988: 123). Therefore, the need for training has to be identified specifically before embarking on any training programmes. According to Beach (1975) a rational way of identifying the area of training need is to analyze the entire organization (people, Job, technology etc). Thus, troubled spots where training may help could be identified. The analysis involves the following practical steps.
- Identify organizational and production problems i.e. low productivity, high cost, poor material control, poor quality and excessive scrap and waste, excessive Labour management strife, excessive grievance, excessive violation of rules of conduct and poor discipline, high employee turnover, excessive absenteeism, and delayed production.
- Analyze Jobs and employees: Job analysis, employee appraisal and testing.
- Collect employee and managerial opinions through interviews and questionnaires to obtain views regarding perceived problem areas and deficiencies which would indicate desirable training programmes.
- Anticipate impending and future problems and expansion of business, new products, new services, new designs, and new plants.
Now technology, organizational changes, staff inventory compare present staff resources with forecast need
2.1.5 Organizational Performance
Performance has been the most important issue for profit and non-profit organization. Barney (2001) asserts that researchers have different beliefs and thoughts about organizational performance but it still remains a controversial issue. Performance means quality, condition or function. Non-profit organizations view their performance in terms of how they meet their missions and goals. Performance refers to the degree of achievement of the mission at work place that builds up an employee job. Researchers mostly use performance to express the range of measurements of transactional efficiency and input and output efficiency (Stannack, 1996). Organizational performance involves a construct perspective in which the focus is on the definition of the concept in terms of assessment and conceptualization (Goodman, Pennings & Associates, 1977). Organizational performance is a general structure which refers to the operations of enterprise. Daft (2000) states that organizational performances is an effective and efficient manner for organization’s activity to achieve goals by using resources.