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EFFECTS OF HUMAN RESOURCES PLANNING ON ORGANISATIONAL PERFORMANCE

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND TO THE STUDY

The history of planning is as old as man himself. Planning has started from the ancient era during the primitive period when there were no industries or firms. Planning is the process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the goals of an organization. It includes the selection of objective, policies, procedures and programmes from among alternative. A plan is a determined cause of action to achieve a specified goal. It is an intellectual characterized by thinking before doing. According to George R. Terry (2002), Planning is a continuous process and there is no end to it. It involves continuous collection, evaluation and selection of data, and scientific investigation and analysis of the possible alternative courses of action and the selection of the best alternative.

Human resource planning is a systematic analysis of human resource needs in order to ensure that right number of employees with necessary skills are available when they are required (Igbinomwanhia, 2010). An organization human resource department complete several tasks relevant to its workers including collecting of information, creating objectives, goals and making conclusion in order for the organisation to achieve its goals. The reason of using human resource planning is to find out how many employees do the organization have, what kind of workers do the organization have, how an organization should use their available resources and how can the company stay and maintain its workers.

According to Fajana (2002) human resource planning deals with the systematic and continuous process of analyzing a firm’s human resource needs under mutating conditions and developing workforce policies suitable to the longer term effectiveness of the organization. Through planning, organization goals and objectives are determined; the resource available must be strategic to achieve the goals and objectives. An organisation without planning becomes random in nature and decisions become meaningless and ad-hoc choices (Koontz and O’ Donnell, 1972). Organisational performance comprises the actual output or results of an organizational as measured against its intended outputs (or goals and objectives). Is an analysis of a company’s performance as compared to goals and objectives. Performance is the behaviour that can be evaluated in terms of the extent to which it contributes to organizational effectiveness (Abdullah, 2009), concur and explain that performance is the behaviour and outcomes that employees engage in that are linked with or contribute to organizational goals. Measures of organizational performance in most firms include sales growth, return of investment (ROI), market share gains and overall competitive position (Abhishek, 2009).    

The level of performance of an organization can determine the productivity of the organization.  Therefore productivity means the rate of output, degree of result and success which is directly related to profitability and turnover. This research study covers the possible Effects of Human Resource Planning on Organisational Performance. Human resource means the people that are in the organization without them production cannot take place, so there is a need for an organization to plan well for its human resources. Proper planning can enhance the productivity of an organization because of the following reasons; · Planning helps to resolve problem of shortage of staff in an organization · It also helps in determining and planning whatever capital, material equipment and personnel required in an organization in order to achieve organizational objectives. · Human resources use planning to assess external forces to help the firm deal with environmental uncertainty by mobilizing scare or limited resources to neutralize potential threats. · Planning makes control possible, which is, comparing contractual outcome with performance standards and taking corrective action if variable exists. Lastly, human resource planning function include staffing, that is acquiring qualified and appropriate number of workers for an organization, to determining and acquiring other resources and proper allocation of these resources. In addition, coordination of activities of all members and parts of an organization is another major purpose of human resource planning in order to boost production and performance.

1.2     STATEMENT OF THE PROBLEM

According to Cherian (2011), organizations that undertake HRP benefit from: improvements in the utilization of human resources; matching personnel activities to future organizational objectives efficiently; expanding the personnel management information base to assist other personnel activities and coordinating different personnel management programmes such as affirmative action plans and costs. One of the problems facing business organistions in Nigeria is the shortage of qualified human resources as a result of poor planning. Human resources being the set of individuals that make up the workforce in the organization and makes productivity to take place must be well planned for and must be placed in the appropriate positions in other to be effective. In this research, determinants that can improve organizational performance like performance evaluation, hiring, training and giving benefits will be identified.

1.3  OBJECTIVES OF THE STUDY

The major objective of this study is to examine the Effects of Human Resources Planning on Organisational Performance in Total Nigeria PLC. While other specific objectives are:

a. To examine the effect of human resources planning on organisational performance.

b. To determine the relationship between effective human resources planning and organisational profitability.

c. To assess the roles of manpower planning on employee productivity in Total Nigeria PLC.         

d. To identify current challenges of implementing human resources planning in Total Nigeria PLC.

e. To recommend strategies for enhancing organizational performance in Total Nigeria PLCvis-a-vis human resources planning.

1.4    RESEARCH QUESTIONS

The undertaking of this research project will beam a searchlight on the following research questions;

1. Does human resources planning have any effect on organisational performance?

2. To what extent does effective human resources planning influences organisational profitability?

3. What is the relationship between manpower planning and employee productivity in Total Nigeria PLC?

4. What are the current challenges of implementing human resources planning in Total Nigeria PLC?

1.5   RESEARCH HYPOTHESES

The under listed hypotheses will be tested at 5% level of significance to determine the relationship between the dependent and independent variable in each of the hypothesis:

Hypothesis One

Ho: There is no significant relationship between human resources planning  and organisational performance.

Hi: There is a significant relationship between human resources planning and organisational performance.

Hypothesis Two:

Ho: Effective human resource planning is not a significant predictor of organisational profitability.

Hi: Effective human resource planning is a significant predictor of organisational profitability.

Hypothesis Three:

Ho: There is no significant relationship between manpower planning and employee productivity in Total Nigeria PLC.

Hi: There is a significant relationship between manpower planning and  employee productivity in Total Nigeria PLC.

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