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AN ASSESSMENT OF MANPOWER TRAINING AND DEVELOPMENT

ON PRODUCTIVITY OF WORKERS IN AN ORGANIZATION: A


STUDY OF BOTTLING COMPANY LTD.

BY

JAFARU DAHIRU

SPS/17/GDS/00054
CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY


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There are a number of factors that contribute to the success of any organization,

these factors include: capital, equipment, manpower, etc. All these factors are

important but the most significant factor is the human factor. Since it is the

people that will put the other resources to work, it should be viewed as such by

management by giving it due attention in order to achieve its organizational

goals and objectives.

Manpower planning aimed at ensuring that the right person is available for the

right job at the right time. This involves formulating a forward looking plan to

ensure that the necessary human effort to make it possible for the survival and

growth of the organization, it becomes imperative to develop the employee.

Udeze (2000:90), posits that training is like sharpening of an existing skill in

order to reflect the trends in technology and other socio-cultural environment of

an organization. The major object of training and development is to increase the

efficiency of the employee with resulting increase in corporate productivity.

Diejemoah (2001:23), Manpower development is a process of intellectual and

emotional achievement through providing the means by which people can grow

on their jobs. It relates to series of activities, which an enterprise would embark

1
upon to improve its managerial capacity. Manpower development is important

in any discussion of strategic human resources management.

These emphasis on manpower and development is influenced by the belief that


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it is now desirable to focus more attention on areas which in the past has been

relatively neglected because every organization regardless of its size must

provide for the needs, interest and desire of its employee within the work

environment if it is to earn loyalty, dedication, involvement and commitment

necessary to compete effectively.

Since the early 1960, the human factor of production of manpower as it is

alternatively called, has increasable been recognized as the most critical

resource of the factors without which an effective utilization of all other factors

remain a dream. Although, it might be tempting to attach more importance to

the availability of physical resource such as capital and equipment undermining

that they are mere passive factors of production, which depend on human

intellectual which is the active agent to exploit them in order to achieve the

objective of the organization. Thus, the human factor (manpower) is the main

stay of the organization. In other words, the success of an organization depends

on the ability and expertise of those who operate it both at the managerial and

lower levels of operation, such abilities and expertise usually stems from the

knowledge they possess and training received.

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Graham (2001:19) says human being constitutes the ultimate basis of a nation's

wealth. This proposition applies to the organization, which implies that with

daily increase and complexity in the organizational activities and the problem
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ensuring optimum productivity which is fast becoming a challenge as well as

imperative for the management of organization, thus, training and development

of staff on whom the huge responsibility of furthering these goals rest, must

take top priority if the organization must continue to enjoy maximum

performance from the staff. The main objective of setting up a company is to

make profit and to achieve this organizational goal; adequate manpower

planning and development programmes should be put in place to enhance

performance.

1.2 STATEMENT OF THE PROBLEM

The Nigeria Bottling Company Ltd is one of the biggest companies in the non-

alcoholic beverage industry in the country and is the franchise bottler of the

Coca-Cola Company in Nigeria. The company is part of the Coca-Cola Hellenic

Group, one of the largest bottlers of the Coca-Cola Company's products in the

world, and the biggest in Europe. Coca-Cola Hellenic operations span 28

countries, serving more than 570 million people. The company is headquarter in

Athens and listed on the Athens, New York and London stock exchanges NBC

Ltd started operations in Nigeria in 1951. Based in the city of Lagos, it operates

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13 bottling plants across the country. They channel products through 59

warehouses distribution centers.

The company product portfolio consists of: Leading brands Coca-Cola light,
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Fanta and Sprite and local brands such as Schweppes, Five Alive, Limca and

Eva. The human resources (manpower) is considered the most critical to any

organizational survival of a truism that adequate supply of material and

financial resources that utilizes these available resources to bring about the

desired goals. However, most organizational plans meticulously for their

investment in physical and capital resources and these plans are reviewed with

utmost attention to detail while rarely do such organizations pay attention to

human investment in which the capital and equipment will be in vain. Not many

organizations consider the necessity for a well-defined and sustained training

and development for staff in order to upgrade their performance or they are not

able to cope financially with training and development programmes. The very

few organizations that give thought to this very important aspect of staffing

functions do so with lack of seriousness; all round attention and continuity. The

programmes are carried out not only once in a blue moon but are also lopsided

in terms of content and staff participation. As a result of this, lackadaisical

attitude of management towards training and manpower development. There

had been a progressive decline in the ability of manpower to cope with the

challenges that attend the over unfolding new dispensation in the industry, in the

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circumstance, what we find is that the rise in industrial output is inconsequential

in spite of the enormous wave of modern technology that now exist in industrial

activities. It is the opinion of industry observes that the poor performance of the
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organization-workers follows from their inability to keep abreast with the new

technological provision as a result of the absence of appropriate and sufficient

staff training. It is against this background that the researcher considered the

impact of manpower training and development on organizational performance

of this mission, however, the researcher used Nigerian Bottling Company Plc.

1.3 OBJECTIVES OF THE STUDY ARE AS FOLLOWS:

i. To ascertain the impact of training on productivity of employees and

organizations.

ii. To find out if manpower planning, training and development provide job

satisfaction to employees.

1.4 RESEARCH QUESTIONS

i What is the impact of training on productivity of employees and

organizations?

ii Do manpower planning, training and development provide job

satisfaction to employees?

1.5 SIGNIFICANCE OF THE STUDY

In spite of all efforts geared towards improving the manufacturing industries,

there are some doubts as to the quality of services rendered by both industries to

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its customers in particular and the nation in general. It is in light of this that the

researcher through the work intend to look into the factors militating against

Nigeria Bottling Company Ltd in achieving its sets objectives, by this, the study
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will look into the manpower base and quality of staff of the selected firms and

assess their suitability with the aim of developing training programmes to

enhance their performance since the progress of an organization is a function of

the quality of those directing its affairs. The importance of this cannot be

overemphasized especially in these periods when most companies are

international standard complaint. It therefore improves a company to plan and

train its workers for the best quality of work to be relevant in the scheme of

globalization.

This is particularly directed to establishment that are prone to think that the

intractable problems of their organization is finance and not manpower planning

and development it will also evaluate aspects of the recruitment, selection and

training process, which bear strong relevance to corporate image, productivity

efficiency and morals. For the management of these selected firms, the benefit

of training and development is that quality of work, life of the employees will

reciprocate with increase performance on the job.


This will go a long way in providing job satisfaction and services as motivation

towards the realization of individual aspiration; it will also be relevant to the

human resource development department in the formulation of policies relating

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to training and development of personnel and for the government, to ensure

adequate training and know-how to improve the economy as a whole.

The findings of this research will be of benefit to different classes of people,

they include: 7

a) Managers in the public and private sector, as it will help in the

development and promotion of a healthy employee/ management relationship.

b) Individual worker: Apart from building confidence in the job holder,

training gives a relative sense of job security, equipping the job holder and

makes a person more relevant in the labour market. Hence the study is useful for

the individual workers as it relates to something vital to him/her.

c) The organization: The organization will benefit immensely from the

increase performance that comes as a result of training. Hence Nigerian Bottling

Company, Kano and other similar organizations stand to gain from the research

study.

Finally, this research work when completed will be of great importance to the

researcher for the partial fulfillment of requirement for the award of Master in

Business Administration (MBA). It will also be useful to other students and

researchers in general.

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1.6 SCOPE OF THE STUDY

The study is done in Nigeria Bottling Company Ltd. All the steps involved in

this research were completed within short period of time.


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1.7 LIMITATIONS OF THE STUDY

Some banks and manufacturing firms were selected for this study. The study

was also limited to employees of these firms. One of the problems the

researcher encountered was that some officers were either too busy for

interviews or cleverly avoided certain questions for the fear that the information

given might put their jobs in jeopardy. Those who responding to questions tend

to make their answers to reflect what ought to be rather that what is, this

undoubtedly affected the quality and accuracy of information collected during

the study.
1.9 METHODOLOGY

The method to be used for the purpose of the research is secondary methods.

Collecting and analyzing data in secondary form entails the use of other extant

literatures which are relevant within the context of the study, to bring out

relevant information on manpower training and development on productivity of

workers in an organization as there are volumes of books, journals, articles,

proceedings, newspaper, conferences, government publication and many

documentaries that contain information on the subject matter useful in analyzing

manpower training and development on productivity of workers in an

organization

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CHAPTER TWO

LITERATURE REVIEW

2.1 INTRODUCTION
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Until recently there has been a general resistance to investment of training in the

public service because of the believe that "Employees hired under a meut

system must be presumed to be qualified, that they were already trained for their

jobs and that if this was not so it was evidence that initial selection of personnel

was at fault.''(Stahl, 1976). This assumption has been jettisoned as the need for

training became obvious both in the private and the public sectors.

Training has become more obvious given the growing complexity of the work

environment, the rapid change in organization and technological advancement

which further necessitates the need of training and development of personnel to

meet the challenges. Many organizations have come to recognize that training

offers a way of "developing skills, enhancing productivity and quality of work

and building workers loyalty to the firm".

2.2 THEORETICAL FRAMEWORK


3 Looking at Human capital development theory, economically, capital is

referred to as ‘those factors of production used to create goods or services

that are not themselves significantly consumed in the production process’

while, the human element takes charge of all economic activities such as

production, consumption, and transactions necessary to move the products to

the consumers (Boldizzoni, 2008). This implies that human capital is a key

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production element that adds value to the production process. In the 1950’s,

it was discovered that investment on human capital was the primary way to

raise an individuals’ wages making it more effective when compared to other

production inputs such as land, financial capital, and labor force (Woodhall, 1

2001).

4 Human capital as a concept can be traced to the classical school of thought

in 1776, then as a scientific theory by Fitzsimons (1999). Schultz (1961)

recognized human capital as one of important factors that determine

economic growth. He referred to the term human capital as the stock of

productive knowledge and skills possessed by workers. Human capital can

be categorized by ‘something akin to property’ that is, knowledge and skills

embedded in an individual (Beach, 2009). Rastogi (2002) conceptualizes the

human capital as ‘knowledge, competency, attitude and behavior embedded

in an individual’.

5 Human capital has also been categorised as important in itself but also

important is the accumulation process. This perspective stresses on

knowledge and skills obtained throughout educational activities (De la

Fuente & Ciccone, 2002). The third perspective is closely linked to the

production-oriented perspective of human capital (Dae-Borg, 2009). Romer

(1990) refers to the human capital as ‘a fundamental source of economic

productivity’. Rosen (1999) states human capital as ‘an investment that

people make in themselves to increase their productivity’. Furthermore, the

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concept of human capital has also be defined as ‘an amalgam of factors such

as education, experience, training, intelligence, energy, work habits,

trustworthiness, and initiative that affect the value of a worker's marginal

product’ (Frank and Bemanke, 2007). The shift of the focus by the global 1

economy towards more knowledge-based sectors (such as research and

development, pharmaceuticals and ICT-based sectors), has encouraged

policy makers to attend more critically to skills and human capital

development (OECD, 1996).

6 The basic human capital theory which is a refinement of the marginal-

productivity theory has since been become a dominant means of

understanding how wages are determined. The theory was largely shaped by

Gary S. Becker, an American student of Theodore Schultz. The human

capital theory, views schooling and training as an investment in skills and

competences (Becker, 1964). It holds that earnings in the labour market are

dependent upon the individual’s information and skills set. It is further

argued that, based on rational expectations of returns on investment,

individuals make decisions on the education and training they receive as a

way of augmenting their productivity that is, that investments in human

capital depend on the costs of acquiring the skills and the returns that are

expected from the investment. Therefore, this study adopts human capital

theory..

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2.3 CONCEPTUAL FRAMEWORK

2.3.1 Manpower Planning

Most writers have concerned themselves essentially within putting forward


1
arguments for and against the very idea of manpower planning and development

in organizations. Some other writers have emphasized the need for manpower

planning and how to ensure increased efficiency and productivity through the

use of manpower plans and development programmes.

Thomas Kempwer (1971:13) sees manpower planning as the name given to the

drawing up of different types that the company will require over a period of

years. He believes that once a company has developed a long-range strategy

(corporate planning), it become possible to estimate the number of people of all

types and categories that may be required over the following years. Olusola

Aina (1992:68) defined manpower planning or human resource planning as a

possible for determining and assuring that an organization will have, adequate

number of skilled and experienced person available at the right time and place

performing jobs which meet the needs of the organization and which provides

satisfaction for the workers involved. Manpower planning in providing adequate

number of skilled workers is expected to provide job satisfaction to those

workers in return.

Ubeku Abel (1975:25) defined manpower planning as part of organizational

planning. He observed that it should therefore be seen not in isolation but in the

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total context of the growth of the organization. According to him, manpower

planning covers much than simple planning the future manpower requirements

of an organization since it hinges on all aspects of the business.


1
According to Udeze (2000:90), Training is like sharpening of an existing skill in

order to reflect the trends in technology and other socio-cultural environment of

an organization. The major object of training and development is to increase the

efficiency of the employee with resulting increase in corporate productivity.

This approach goes beyond mere consideration of supply but is not specific on

what other aspects of business manpower hinges on. It also comes with the

impression that the only concrete matter it deals with is future supply of

manpower.

Ibekwe Oliver (2004:19), asserted that human resources of a business are

collectively known as manpower which could be unskilled, skilled, supervisory

staff and it is aimed at ensuring that the right person is available for the job at

the right time.

David Quest et al (1969:32) sees manpower planning as an effort to integrate

through personnel policies and planning the various personnel activities such as

recruitment, training, management development, payment and industrial

relations.

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2.3.2 Training

Training according to Oxford Advance Learner's Dictionary states that training

is the process of preparing somebody or being prepared for job. In manpower


1
development, training is therefore an indispensable element and at the same

time, a vehicle for development and planning.

According to David Quest et al (1969:33), training is a short- term process

utilizing a systematic and organized procedure by which non-managerial

personnel learn technical knowledge skilled for a definite period. Thus, training

is technically oriented. It is designed to improve the technical and mechanical

skill of personnel. Training therefore are usually designed for both non-

managerial and managerial staff.

Stoner (1992:155), emphasized the role of training in management activity

especially in the area of human resources management. According to him, the

training function is a management activity in which the personnel department

provides the necessary specialist knowledge and usually carries out in addition

to the administrative requirements so that the function operates effectively

within the organization. He went further to state the basic stages in establishing

training function with the view to improving on the manpower development.


These stages are:

 To find out the training needs of the particular needs of the particular

company at all levels.

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 To formulate a training policy which will meet the needs of the

organization.

 To evaluate the resources both financial and material which could be


1
required.

 To provide the necessary specialist training officers who will be

responsible for implementing both the training policy and the training

plan.

A training need can be said to exist when there is a gap between the existing

performance of an employee (or group of employees), and the desired

performance to assess whether such a gap requires a skill analysis. The analysis

has five stages:

i. To analyze and determine the main requirements of the particular job.

ii. To identify they task required to be undertaken to meet the job

requirements.

iii. To understand the procedures required to perform the task.

iv. To analyze the knowledge and skill required to perform the processes.

v. To identify and specify problems of the job and to analyze any particular

skill required to solve the problem.

But if we consider a situation where not training function exists in the

organization, the skills analysis should be undertaken initially of these jobs or

areas, which appear to present the most urgent training needs and this can be

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followed up by a skill analysis of all jobs when the training function has been

established.

2.3.2 Training Objectives


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One of the major elements in planning man power training in organization is to

formulate training objectives. As Nwachukwu (2000:93) suggested the

objectives of training have to be clearly defined and inculcated into the trainer

and the trainees. Clearly defined training objectives helps to put things in place

and gives an idea of materials to used. It also helps in the area of evaluating

such training programmes.

2.3.3 Development

Development generally means the process of causing somebody or something to

grow or making something to become larger gradually. But in relation to

manpower development can be seen as a process of increasing the quality or

value or skill of an employee (personnel).

From the definition, it can be sent that training facilitates manpower

development and consequently his performance. Manpower training and

manpower development are two inter-related processes whose importance

cannot be overemphasized in any decision of strategic human resource

management. they are related to series of activities, which an enterprise would

embark upon to improve the quality of its managerial capacity. In this view of

Bell (1999:86), manpower development refers broadly to the nature and

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direction of change induced in the employees as a result of educating and

training programmes. He says that development is managerial in nature and

career focused. To distinguish training and development, Bell has this today,
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"that unlike the training, the workers which improves technical and mechanical

skills, development techniques are designed for work behavior modification".

According to him, development is an educational process, utilizing a systematic

organizational procedure by which a worker learns the conceptual and

theoretical knowledge for effective pursuance of their responsibilities.

2.3.4 Development and Training

The reason for manpower planning and development, it is important to say a

little about development. As jobs are becoming more and more complex, it

becomes imperative for employers of labor to train their workers unlike when

jobs were simple and little technical knowledge was required from the workers.

Manpower training and development are two interrelated processes whose

importance cannot be overemphasized in any discussion of strategic human

resource management. this related to the series of activities, which an enterprise

would need to embark upon to improve the quality of its managerial capital.

Manpower development has been described as the systematic process which an

organization has to go through to ensure that it has the effective managers it

requires to meet its present and future needs.

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According to De Philips et al (2002:26), training is a process when under

company auspices seeks a planned, coordinated and conscious manner to

develop in the employees those understanding skill and attitude, which will
1
maximize individual's present and future efficiency and effectiveness of the

overall company operations.

2.3.5 Types of Training and Manpower Development Programmes

There are many types of training and manpower development programmes

available. The particular method chosen by a company can be influenced by

considering cost and time available, number of persons to be trained, depth of

knowledge required, background of the trainee, etc.

Manpower development is a systematic process of training and growth by which

individuals gain and apply knowledge, skill, insights and attitude, manage work

and personnel effectively. It involves the estimation of the demand for the

supply of management staff for the organization in future. It is the involvement

of efforts aimed at improving the quality as well as the number of management

staff. Studies showed that many workers fail in organizational expectations

because the training needs were not identified and provided for. Development

may help to build confidence in the workers and make him work more

efficiently and effectively.

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1. On-The-Job Training

This is a widely accepted method of developing workers used by most

organizations.
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According to Udeze (2000:102), On the job training is usually administered by

the immediate supervisor or some representative. He went further to say that

this method of training calls for showing the employees how the job is done and

he is to do it on his own under the guidance of the supervisor/trainer

Nwachukwu (2000:92), posits that on the job training is most appropriate for

teaching knowledge and skills that can be learned in a relatively short time, (a

few days to several weeks) and when only one or at most a very few employees

must be trained at the same time for the same job. The advantage of this method

is that it creates good working relationship because employees get to know each

other better and the working environment. On the other side, this method is

disadvantageous in the sense that it could result to unorganized supervision,

monotonous work and also using unqualified personnel for supervision when

the qualified are undergoing the training.

On the job training could take the following forms: Training by experience

workmen.
Apprenticeship, which is the oldest method of training.

2. Information Presentation Method

Udeze (2000:103), the aim is to impact the facts, theories, concepts, etc without

actual practice. Examples of information presentation method are:

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Conference method

This could be in form of a seminar programme where a small group are drawn

from different organizations.

Classroom method 2

It can be used to reach a large crowd and it is usually two-way communication,

where questions are asked and answered are received.


Programmed instruction

It is teaching aides such as cassettes, films, etc. This method is different from

conventional form of training in which the trainer guides the process because

the materials to be learned with is presented in a way the student can control.

Lecture method

This is a student institutional method used in colleges, polytechnics and

universities. It is cheaper and has the ability to accommodate more students.

Simulation approach

People are trained on real life experience, i.e. problem that present itself on real

life. Simulation approach could take demonstration or role-playing method.

Demonstration method

This explains to the trainee by teaching live with examples such as making

displays. It is the actual showing matter than telling the trainee and that is why it

is learning by seeing.

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Role playing method

It is a technique in which some problems real or imaginary involving human

interaction is presented and then spontaneously acted out.

3. Vestible Training Method 2

Udeze (2000:104) viewed that this method is used to describe training in a

classroom for skilled production as well as clerical jobs. It is said to be best

method in situation calling for large number of trainees to be trained at the same

time in a similar jobs. What is involved is the duplication of equipment and

materials used in the real job situation. The vestibule approach is said to be a

compromise between on the job and off the job method.

4. Professional Training

This is used to help trainee acquire more skill usually in technical or

commercial fields, where skills are acquired for performing a task. Vestibule

training is a system of training sued when large number of people is to be

trained on special machines or equipments.

2.3.7 Determination of The Training Needs

Managers can use four procedures to determine the training needs of individuals

in their organization ( Stoner et al, 1996:391):

(i) Performance Appraisal

Each employee's work is measured against the performance standards or

objectives established for his or her job.

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(ii) Analysis of Job Requirements

The skills or knowledge specified in the appropriate job description are

examined and those employees without necessary skills or knowledge become


2
candidate for a training programme.

(iii) Organizational Analysis

The effectiveness of the organization and its success in meeting its goals are

analyzed to determine where differences exist.

(iv) Employee Survey

Managers are well as non- managers are asked to describe what problems they

are experiencing in their work and what actions they believe are necessary to

solve them. Those problem areas indicate the need for further training.

2.3.8 The Need for Manpower Planning, Training and Development

While reviewing discussions on the need for manpower planning and

development we noted that while some people feel that money is the bedrock or

business, some scholars stress the need for human resource planning and

management as the main essence of organizational survival and growth. The

need for systematic or planned training and development program in an

organization cannot be over emphasized. There is the general notion that when

training is not planned and executed, it will accomplish itself by default

following its dynamics.

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Nwachukwu (1988:86) stated that the success of an organization partly depends

on the people who work to achieve organizational objectives- growth,

profitability or efficiently and effectiveness in the civil service. Further, he


2
pointed out that technological innovations taking place every day render today's

skills and methods ineffective for tomorrow's activities. According to him, the

purpose of training and retraining in skill is to bring competency of individuals

up the desired standard for present or potential assignments. He went further to

assert that training helps the participants to improve performance in his/her

activities. He gave reasons for the need to determine training:

 People will be more productive on the present jobs and ready for

advancement.

 Because the success of the enterprise requires that every one perform at

his optimum level, this call is part of determining and meeting the

specific need of each, which should be translated into training.

 Because all good people regardless of organizational level can do a good

job, want to do a good job and will do a good job, if they are given a

chance.

 In doing this, the company increases productivity and the individual

advances his career. Gain, steps must first be taken to determine valid

training needs. Because time, money and efforts can be wasted through

training that is not based on valid present or emerging needs.

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Ile (1999:344) stated that where a less qualified and less experienced person is

made to head those better qualified and more experienced than him cannot bring

out the best in an organization. He said building an efficient labour force


2
requires not only proper selection but also effective training of employees. He

said that employees talent are not fully productive without training and the need

for a systematic training program has been increased by raid technological

changes , which create new jobs and eliminate old ones and by the growing

importance of semi skilled labour relative to unskilled- the plant labor force

must absorb new techniques as they develop.

According to Stoner (1992:155) the real purpose of training is to cause a change

in employee behavior on the job and ultimately to improve the effectiveness of

the organization.

Udeze (2000:107) is of the opinion that since no one can foresee further,

management cannot make actual and responsible decision unless it selects

develop and test the men and women who will have to take care of these

decisions.

Emphasized that the most important factor underlying manpower planning is the

understanding of human behaviour and the resulting social process. This goes to

buttress how environmental influence affects the behaviour of workers which in

turn affects the productivity.

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2.3.9 Impacts of Manpower Training and Development on Productivity of

Workers in an Organization.

According to Udeze (2000:93) the advantages to be derived in a planned


2
training and development programme include:

a) Costs are reduced.

Work accident s plus waste are characteristics of untrained employee. So with

training, there is usually reduction in waste and hence lower costs in the

production process.

b) There is increase in organizational stability because training provide a

pool of skilled hands that will sustain the work place even when a key employee

leaves the organization.

c) It provides an effective means for improving company policies and

regulations.

d) A systematic training program improves the quality and quantity of work,

safeguard machineries.

e) Training brings confidence and high morale to the employee.

f) Increase productivity that usually results from the increase in the skill and

ability of the employees. Thus both increase in

quality and quantity of output can result from a good training programme.

g) Growth and individual career objective can be achieved and people can

therefore reach their potentials in their period with their employees.

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2.4 STAGES IN MANPOWER PLANNING

Ubeku Abel (1975:46) recognized two stages in manpower planning:

Stage 1
2
This is concerned with the dictated manpower inventory of all types and level

(unskilled, skilled, supervisory and managerial) employed throughout the period

of the manpower plan.

Stage 2

This also concerns with manpower supply resources. Consequently,

Stoner(1992:156) views the process as being five (5) stages. First is determining

the organizational objective and plan for the planning period. Secondly, is to

determine the gross manpower requirement for the plan period. The third stage

is taking manpower inventory or current in-house capability determination. The

fourth stage defines the net manpower requirement for planning period. It is

gotten from deducting the manpower inventory from the gross


requirements. The fifth and final stage takes care of programming, meeting the

next manpower requirement. This includes expansion contraction or internal

adjustment of present workforce.

2.4 Empirical Literature Review

Several studies, both in Nigeria and abroad, have been carried out to examine

the relevance or importance of human capital development in the achievement

of productivity. There seems to be a consensus from most these studies that the

26
development of human capital engenders productivity. A review of some of the

empirical literature is provided below;

Sankay, Ismail and Shaari (2010) investigated the impact of human capital

development on productivity in Nigeria during the period 1970 to 2008. 2

Johansen cointegration technique and vector error correction analysis were used

to ascertain this relationship. The basic macroeconomic variables of concern

derived from the literature review are: Real gross domestic product (RGDP),

real capital expenditure (RCE) on education, real recurrent expenditure (RRE)

on education, real capital stock (RCS), total school (SCHE) enrolments and

labour force (LF) are used to proxy human capital development. The result

indicated that human capital development has a significant impact on Nigeria's

productivity.

Dauda (2010), using the human capital model of endogenous growth developed

by Mankiw, Romer and Weil (1992), examined empirically the role of human

capital in Nigeria’s economic development. The paper employed a variety of

analytical tools, including unit root tests, cointegration tests and error correction

mechanism (ECM). Empirical results indicate that there is, indeed a long-run

relationship among labour force, physical capital investment proxied by real

gross domestic capital formation, human capital formation, proxied by

enrollment in educational institutions and productivity in Nigeria. Findings

show that there is a feedback mechanism between human capital formation and

productivity in Nigeria. Thus, the policy implication of the findings is that

27
government should place a high priority on human capital development. Efforts

should be intensified to increase investment in human capital to achieve the

growth which would engender economic development. Most importantly,

education should be given prominence in Nigeria’s developmental efforts. This 2

would propel the economy to higher levels of productivity.

Amassoma and Nwosa (2011) studies the causal nexus between human capital

Investment and productivity in Nigeria for sustainable development in Africa at

large between 1970 and 2009 using a Vector Error Correction (VEC) and

Pairwise granger causality methodologies. The findings of the VAR model and

pairwise estimate reveal no causality between human capital development and

productivity. The study recommends the need to increase budgetary allocation

to the education and health sector and the establishment of sound and well-

functioning vocational institute needed to bring about the needed growth in

human capital that can stimulate productivity. Also, the study identified that

labour mismatch is an issue that government needs to reckon with in order to

accelerate and sustain productivity. In this regard, policy-makers in conjunction

with employers and individuals needs to update information on the real labour

market value of different qualifications, in order to help them navigate through

the increasingly complex education system and make the optimal kinds of

educational investment decisions needed to propel productivity.

28
Johnson (2011) evaluates human capital development and productivity in

Nigeria by adopting conceptual analytical framework that employs the

theoretical and ordinary least square (OLS) to analyze the relationship using the

GDP as proxy for productivity; total government expenditure on education and 2

health, and the enrolment pattern of tertiary, secondary and primary schools as

proxy for human capital. The analysis confirms that there is strong positive

relationship between human capital development and productivity. Following

the findings, it was recommended that stakeholders need to evolve a more

pragmatic means of developing the human capabilities, since it is seen as an

important tool for productivity in Nigeria. Also proper institutional framework

should be put in place to look into the manpower needs of the various sectors

and implement policies that will lead to the overall growth of the economy.

Oluwatobi and Ogunrinola (2011) examined the relationship between human

capital development efforts of the Government and productivity in Nigeria. It

seeks to find out the impact of government recurrent and capital expenditures on

education and health in Nigeria and their effect on productivity. The data used

for the study are from secondary sources while the augmented Solow model was

also adopted. The dependent variable in the model is the level of real output

while the explanatory variables are government capital and recurrent

expenditures on education and health, gross fixed capital formation and the

labour force. The result shows that there exists a positive relationship between

government recurrent expenditure on human capital development and the level

29
of real output, while capital expenditure is negatively related to the level of real

output. The study recommends appropriate channeling of the nation’s capital

expenditure on education and health to promote productivity.

Adawo (2011) study used an econometric model to examine the contributions of 3

primary education, secondary education and tertiary education to productivity of

Nigeria. These variables were proxied by school enrolments at various levels.

Other variables included physical capital formation, health measured through

total expenditure on health. In all primary school input, physical capital

formation and health were found to contribute to growth. Secondary school

input and tertiary institutions were found to dampen growth. Among others, this

paper recommends that there should be adjustment in admission process in

favour of core science and technical oriented course. The paper also

recommends that schools should be adequately funded.

Isola and Alani (2012) evaluated the contribution of different measures of

human capital development to productivity in Nigeria. It used data from Nigeria

and adopted the growth account model which specifies the growth of GDP as a

function of labour and capital. The model also included a measure of policy

reforms. Based on the estimated regression and a descriptive statistical analysis

of trends of government commitment to human capital development, it was

found that though little commitment had been accorded health compare to

education, empirical analysis showed that both education and health

30
components of human capital development are crucial to productivity in

Nigeria.

31
CHAPTER THREE

SUMMARY OF MAJOR FINDINGS, CONCLUSION AND

RECOMMENDATIONS
3
3.1 SUMMARY OF MAJOR FINDINGS

The objective of manpower and training development is to help yield

operational results that will bring about meaningful changes in the output of a

company. The study of the input of manpower and training development in the

achievement of organizational goals in these organizations has moved to be

useful and reasonable insight into the ideas, views and feelings of the employees

about the organizations.

Human Resource Department is a management tool skillfully and systematically

planned and executed to improve the performance of current and future

employees. The aim is to develop, sharpen and thus change the employees'

attitude as well as increasing their knowledge and skill.

Training and development cannot be ignored by any organization that aspires to

increase its productivity. As Nwachukwu (88:86) points that any organization

that lays little or no emphasis on training and development is encouraging

inflexibility in the organization and appears not to recognize, the changing

environment in which it operates.

Adrinfo (1980) in his contribution attributed the shortage of desired manpower

in the banking industries to lack of appropriate and adequate training and

32
education and insufficiency of training institutions and facilitation. In a paper

titled "Manpower Development and Utilization in the Nigerian Banking

Industry", he identifies the role of manpower development as it affects the


3
service being performed by the banks. He identified manpower shortage which

he found out to partly due to the increasing manpower requirement resulting

from rapid expansion of banking facilities and inadequate supply of trained

personnel due to lack of institutions to turn out good graduates.

In recognition of this fact, the two banks and other organizations in this research

set a Training and Manpower Development Unit in the Personnel/Human

Resources Department to constantly train its staff and develop a welfare

packaged for the overall development of their staff. From the research, it was

discovered that these firms adopted various methods of manpower and training

development such as on-the job training, seminars, conferences and simulation.

Among all these forms of development, on-the job training was mostly used.

5.2 CONCLUSION

When workers are properly managed, trained and developed on the job, it

reduces the amount of foreign exchange that is used in paying expatriates,

thereby reduces cost.

The effective management of human resources is very important to any

organization which can only be achieved by effecting a good manpower

planning policies and training programmes. The essence of this is to achieve the

33
broader aims of the organization as well as satisfying the individual aim of

developing oneself.

One of the major element in planning man power training in organization is to


3
formulate training objectives. A clearly defined objectives helps to put things in

place and gives an idea of materials to be used. It also helps in the area of

evaluating such training programmes.

Training and manpower development is an important aspect of organization,

management because it is a function that seeks to make available for the

organization skills that are necessary for its functioning effectively and

efficiently.

5.3 RECOMMENDATIONS

Based on the analysis of data collected in the course of this research work, the

researcher has the following recommendations with the view to reducing the

problem of training and manpower development of the staff of these

organizations:

i. As a result of importance of manpower planning and development, the

training and development should not be for selected employees to the neglect of

others. This is because it is possible for those regarded as high potential

employees not to meet the predicted standard, while those initially neglected

improves overtime. For example, the receptionists need to be trained on how to

relate effectively with the large public and colleagues. The drivers represent the

34
image of the firm while on the road, they should keep traffic laws and

regulations. The security men must be at alert to their duties and

responsibility(ies) and should not embarrass or intimidate visitors and customers


3
or clients. ii. The researcher observed that customer services is a key area of

interest, therefore, attention should be focus on this area during training to

maintain a good relationship with customers/ clients.

iii. As a result of importance of manpower planning and development,

organizations should continue to encourage its staff to participate in training and

development programmes.

iv. The firms should expand, upgrade and equip all its satellites training

centers for maximum benefit and utilization.

v. Though the organizations provide external training for their trainers, it is

necessary to bring in external training consultants to the training centres

occasionally to improve the quality of the programme.

vi. The organizations should make efforts to evaluate its training at the end

of each course. The present evaluation is not comprehensive enough. And on

the job follow up programmes should be developed to enable the staff of

training section of human resource department monitor, assess and quantify the

effectiveness of those courses.

vii. Course related jobs should be assigned to the employees after training

35
It is my candid belief that if all above recommendations are properly

implemented to latter, the problems of training and development in these

organizations would be solved and its attainment benefit would be realized. This
3
will continue to make the organization to be "Happy Customers, Happy

People".

36
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