THE EFFECT OF RISING PRICES OF BUILDING MATERIALS ON PRIVATE RESIDENTIAL PROPERTIES

THE EFFECT OF RISING PRICES OF BUILDING MATERIALS ON PRIVATE RESIDENTIAL PROPERTIES

 (A CASE ABUJA MUNICIPAL AREA COUNCIL)

CHAPTER ONE

1.1   INTRODUCTION

Housing is one of the essential necessities of life beside food and security. Hence every rational man is desirous of owning a personal house or at least has an opportunity of living in a better accommodation with required basic facilities and utilities in a conducive environment. Shelter is one of the most priorities in our scales of preference when it comes to his needs, this due to its major determinate of productivity Welfare and state of being. Unfortunately, the need is limited in supply worldwide, the cause of this shortage are many. But one of this causes which form basis of this research work is the cost of building materials. The research will examine in practical terms how the cost of building materials has affected private residential properties in Nigeria Generally, and Karu area municipal council in particular. It also proffers remedies to tackle the problems on how our teaming population could be house adequately. Karu has been of the residential area within Abuja municipal area council which has gained tremendous attraction of various dwellers and development for various purpose like wise Nyanya, Durumi, Dutse etc. such attraction has been sequel to the development of private residential properties in the area this write up shall comprise of five chapters chapter one with introductory part of the research while chapter two Is made up of the conceptual frame work which encompass meaning and nature of residential development; also chapter three which research methodology while chapter four treats data presentation analysis, finally, chapter five is the summary of the findings, recommendations and conclusion.

1.2   BACKGROUND KNOWLEDGE OF THE CASE STUDY

Abuja, being Nigeria capital came in existence by virtue of the decree No 6 of 1978, however it has assume that status of nation capital on the 12th December, 1991 when the seat of government was moved from Lagos to Abuja where it take it seat to data the trip of relocate the capital, federal republic of Nigeria began in august 1975 during late General Murtala Mohammed begin on assumption of office, the late General promised to address the deteriorating condition of Lagos and find lasting solution to it is as it becomes clean and in impracticable for Lagos to be retained as the federal capital in order to solve these problems once and for all. The late General Murtala inaugurated distinguish chairmanship of retired Honorable justice Akintola Aguda. The committee was charged with among other these tasks or recommending sweat able and alternative location, having regard to the need for easy accessibility and for every part of the federation. After the committee findings, the report submitted to the federal military government on 20th December. 1975 stated that the total land area in Lagos is estimated to be about 61.72 M2 which was grossly inadequate to be used for federal capital city not to even sharing it with Lagos state government.

The federal capital should be moved out of Lagos and be relocated to the central of the country, and area covering about 8000 M² and situated south of the present Suleja, Niger state. All these recommendations were accepted by the government and promoted the promulgation of federal capital at decree No 604 of 1976, which created the federal capital territory on 5th February, 1976 and vested the ownership and control of all land in the federal capital territory on federal government as well as the administration of the federal capital territory.

1.3   STATEMENT OF THE PROBLEM

The indent study of this problems can be or will be examined by looking at how and to what extent or degree in which rising cost of building material have affected residential (private) property development, what are the effects of rising costs of building material’s in the study area (Abuja Municipal Area Council).

1.4   PURPOSE OF THE STUDY

Nigeria suffers from deep problems that undermine housing and construction companies, so this aspires to reverse the main holding factories o these problems. One of the reason is population growth. Specifically, the average age in Abuja is a mere 18 years. Moreover, Nigeria population growth rate is 2.90% (Central Department of Statistic and Information, 2012). Oil price also seem to be an enormous factors, because it cost more on transportation of personal, shipping of materials, manufacturing and so on. Another factor underlying economic problem, such as inflation, in addition, government project, such as subsidized schools and hospital that helps to cover the high population growth seems to be contributing to higher price.

1.5   OBJECTIVE OF THE STUDY

The project is to examine the effect of rising cost of building materials on private residential property development with a view to recommending positive solution by taking Abuja as the only municipal to carry out informative aims. The following objectives shall be undertaken,

1. To examine the type of building material mostly patronized, weather local or foreign.
2. To examine the trend of the price of building materials between 2006 and 2014.
3. To examine the trend of building materials in Nigeria.
4. To ascertain the difficulties that arise from the project work in studying are and proffer the lasting solutions to them.

1 .6  SIGNIFICANCE OF THE STUDY

This refers to the important of study of the people. This research will help people to know the effect of rising cost of building materials on development. It is also ‘a fair development alternative to expensive building materials, it provide government the opportunity of knowing which area to tackle. The rising cost of building materials so as to reduce the problem being faced by residential property development. It will also serve as reference materials to other researchers.

1.7   RESEARCH METHODOLOGY

1.     The survey intends to use the methodology of identifying the factors

2.     How to identify experts who could help in completing the survey.

3.     The appropriate method of analyze the data in addition, certain factors were evaluated and analyzed to identify the key factors of cost increase in house and construction industry in Nigeria.

The graphic, social and other environmental factors to provide accurate and reliable information regarding the cost rise in Nigeria industry.

1.8   RESEARCH QUESTIONS

The following are research questions tray will guide the study.

1.     What are the main factors that led to high cost of housing construction n the federal capital territory, Abuja?

2.     What are the effects of the factors in housing construction industry?

1.9   SCOPE OF THE STUDY

The study will limit itself to the effect of rising cost building material on residential. Properties development in Abuja municipal area council, this is done in order to enhance adequate coverage of the study area.

1.10 LIMITATION OF THE STUDY

Some hindrance has been encountered in carrying out this research work such as;

1.     Many construction firms. Consultant quality surveyor, estate valuers or firms and land lords were relevant to disclose relevant information or data.

2.     Hostility of some building materials merchants or dealers to release information during market and surveyor and field intervals.

3.     Financial and time constraints also constitute some of the limitation, but the research was able to over come them.

1.11 RESEARCH HYPOTHESIS

H_o:   Rise in oil price, the increase in oil demand in the past 10 years nearly 50 percent increase, lead to the rapid increase in oil price

H_i:    High demand for housing construction, the categories include high demand from (a) Nigeria citizens, government housing project and government public project.

H_o:   Low housing supply, these categories include the increased annual demand for housing unit and the low supply of housing unit.

H_i:    Speculative purchase of undeveloped lands, these categories includes corruption in the selling process of undeveloped land.

1.12 DEFINITION OF RELEVANT TERMS

Price: It refers to change cost and expensive or expenditure required in buying or maintenance price is the quality of payment or compensation given one party to another in return for goods or services.

Building: Building is a manmade structure with roof and walls standing more or less permanently in one place.

Materials: The substance or substance of which things are made of composed. Stone is a durable raw materials or anything that serves as a crude or raw material to be used or developed e.g. wood pule is the raw material.

REFERENCES

Aminu, A.A and Jagboro, G.O (2002). “The effect of construction delays on projects delivery in the Nigerian construction industry”

Isaidinso, E.I. (1988). “The needs and problems of the building industry in Nigeria a qualitative surveyor view”. Research Institute Seminar, Nigerian Building and Road Research Institute.

Fisk, E.R. (1997). “Construction project administration, 5th edition prentice Half, New Jersey.

EFFECT OF HUMAN RESOURCES DEVELOPMENT ON ORGANIZATIONAL GROWTH IN INDUSTRIAL TRAINING FUND, ENUGU AREA OFFICE

 

EFFECT OF HUMAN RESOURCES DEVELOPMENT ON ORGANIZATIONAL GROWTH IN INDUSTRIAL TRAINING FUND, ENUGU AREA OFFICE 

ABSTRACT

The study examines the effect of human resources development on organizational growth in industrial training fund, Enugu Area Office. The specific objectives are to determine the extent at which effective human resources development can enhance organizational growth in industrial training fund, Enugu area Office. Concerted effort was made to review past literatures on the study under conceptual, empirical and theoretical framework.  The study employed survey design and make use of simple random sampling technique in order to get adequate response from the respondents.  The data obtained were analyzed using tables and percentages while the hypotheses were tested using Chi-Square. The finding of the study shows that training and development of human resource pays a vital role in improving employees’ performance and increase productivity. Finally the study recommends that the organization should enough training facilities for the training of their employee and improve upon its present techniques of motivating its staff to enhance the organizational productivity. 

 

CHAPTER ONE

INTRODUCTION

1.1              Background to the Study    

Human resources development plays a critical role in contributing to the overall productivity and strength of an organization. Human resources development helps to build a stronger workface through better recruiting, training and retention. The workface helps drive the efficiency of the organization as a whole and more efficient, productive and agile organization with well equipped operating managers who provide support on all human resource matters (Gelade, 2013).

 

Human resource development involves a process of observation, planning, action and review to manage the cognitive capacities, capabilities and behaviors needed to enable and improve individual, team and organizational performance in work organizations, (Walgenbach, Kabst and Beck, 2009). It has multiple dimensions, covering educational attainment, workforce skills, population health and the set of employment policies that provide businesses with workers with appropriate skills and the ability to adapt quickly to new challenges. Each of these areas is a key driver in creating a favorable environment for investment. Because Human Resource Development policies are all closely inter-related and must be consistent with a country‟s broader development and investment policies, they cannot be framed in isolation. Low human resource development needs to be tackled through a coherent and comprehensive strategy that takes full account of the policy linkages and a country’s implementation capacity, (Jessica, 2002).

 

Human Resource Development policies concern the quality of the labor force and the regulation of the labor market. Quality in turn is a function of basic and higher education, training programs and the overall health of the population. The quality and adaptability of the labor force is a key driver in creating a favorable environment for both domestic and foreign enterprises to grow through new investment and to adapt quickly to changing circumstances. Their relative roles and the overall importance of Human Resource Development depend on individual country circumstances, particularly the economic structure, Walsh (2007).

Human resources development also provides a variety of employee’s services ranging from research to time and leave reporting to the interpretation of the board of regent’s code state classified rules and related regulations (Gregory 2018). But many human resources organization struggle to allocate their resources, they are often hindered by a multitude of manual based process and benefits information’s that are costly, prone to errors and time consuming to manage, this factors can make it difficult for human resources organizations to focus on higher value initiative that helps to drive profitability, efficiency and contribute to the organization bottom-line, many human resources administrative units are transforming to an E-human resources task tools and processes into internal intranets via the internet, organizations are seeking E-human solutions that can help automate tasks and streamline workflow and improve efficiency of the workface  by providing self service tools, training and information. By automating processes human resources can better align itself with the organizational services and employees needs such training and development (Armstrong 2016).

                1.2              Statement of the Problem    

Human resource development has grown out of the realization that it is vital for the survival of any organization. This is particularly because the hastily implemented performance related pay and appraisal systems were not delivering the results that people were expecting from them (Armstrong 2000). This makes it primary to the success of any organization given the global competition and turbulence in the business arena. According   to   Armstrong   and   Baron   (2004),   the   benefits   of   Human   Resource Development are therefore manifold. It is on this note that Freeman (2003) clarifies that it is   concerned   with   satisfying   the   needs   and   expectations   of   an   organization's stakeholders - owners, management, employees, customers, suppliers and the general public. Robson et al (2005) conducted a study that suggested that organizations that implement  "good  practices"  covering  a  range  of  managerial  aspects, and who are achieving organizational results are likely to be closer to satisfying their staff. Practices relating to people, Human Resource Development and organizational results also show association with employee organizational commitment.

Human resources development is faced with some problems in the course of carrying out their obligation which serves as a detriment in contributing their quota effectively to the organizations building. These problems are as follows:

Inadequate provision of funds to the administration poised a great obstacle to the organization in ensuring efficiency.

Improper selection and employment of staff affects the productiveness and effectiveness of the organization. When employees undergo the required training in order to put their acquired knowledge into practice and management do not place them on merit, it mega test the principles of efficiency in the organization.

Change in government policies makes it difficult for organization to operate steadily. Social-cultural values and beliefs of the areas where organization is operating may hinder effective and efficient utilization of human resource. When the management have a wrong preconceived notion that anybody other than a specialist can mount the responsibilities and therefore, when it is not accorded the proper place it deserves, it posed a problem to the organizations development.

                    1.3              Objectives of the study

The objective of the study was to examine the effect of Human Resource Development on employee organizational growth in Industrial training fund, Enugu area office.

The specific objective:

1.      To determine the extent at which effective human resources development can enhance organizational growth in Industrial Training Fund, Enugu area office.

 

1.4              Research Questions

1.      To what extent does effective human resources development enhance organizational growth in Industrial Training Fund, Enugu area office?

2.      How efficient is human resources training and development in organizational growth?

3.      To ascertain if human resources development have any significant impact on organizational profitability?

 

                  1.5              Statement of Hypothesis

H01: effective human resources development did not significantly enhance organizational growth in Industrial Training Fund, Enugu area office

H02: Human resource training and development has no significant impact on organizational growth.

 

                1.6              Scope and Limitation of the Study

The scope of the study will be limited to the effect of human resource development on organizational growth in industrial training fund, Enugu area office.

Thus, it will focus on all efforts of the organizational and government to increase human resources development and productivity in establishment.

In  the  course  of  the  study,  of  this  kind,  some  problems  or limitations  are  encountered,  these  are  time  and  financial constraints the researcher has very limited time for the study, due to  the  nature  of  work,  the  researcher  occupies.  Distance  from school/home  to  the  places  of  research  also  possess  a  lot  of problem  because  the  distance  is  much  and  cannot  be  covered with little time hence it reduced the frequency  of  going  to  assess  the  trained  workers  by  ITF programmes as often as should have been assessed.

                1.7              Significance of the Study     

The study is significant from the point of view that no available literature or study so far has specifically focused on human resource development and organizational growth in industrial training fund, Enugu area office, none has examined the extent to which the industrial training fund as an agent of government has contributed to the development and training of civil servants in the establishment.

Thus, it is going to add to existing body of literature and extend the frontiers of knowledge practically. This research work will be a guide to scholars, policy makers, policy implementers and researchers and evidently serve  as a  guide  to  the  government  on  how  to  promote  effective human resource development and productivity in the civil service particularly industrial training fund, Enugu area office.

                    1.8              Historical Background of the Case Study

Established in 1971, the Industrial Training Fund has operated consistently and painstakingly within the context of its enabling laws Decree 47 of 1971 as Amended in the 2011 ITF ACT. The objective for which the Fund was established has been pursued vigorously and efficaciously. In the four decades of its existence, the ITF has not only raised training consciousness in the economy, but has also helped in generating a corps of skilled indigenous manpower which has been manning and managing various sectors of the national economy.

ITF programs and services aim at stimulating human performance, improve productivity, and induce value-added production in industry and commerce. Through its SIWES and Vocational and Apprentice Training Programs, the Fund also builds capacity for graduates and youth self-employment, in the context of Small Scale Industrialization, in the economy.
Over the years, pursuant to its statutory responsibility, the ITF has expanded its structures, developed training programmes, reviewed its strategies, operations and services in order to meet the expanding, and changing demands for skilled manpower in the economy. Beginning as a Parastatal “B” in 1971, headed by a Director, the ITF became a Parastatal “A” in 1981, with a Director-General as the Chief Executive under the aegis of the Ministry of Industry. The Fund has a 13 member Governing Council and operates with 14 Departments and 2 Units at the Headquarters, 40 Area Offices, 4 Skills Training Centres, and a Centre for Industrial Training Excellence.

 

A Governing Council of thirteen members drawn from the public and private sectors will be appointed by the Federal Government to manage the Fund. This is to reflect the co-operative spirit of the enterprise, the need for private employers, organized labour, and the providers and users of training to co-operate in identifying training needs and devising training policy and system.

As part of its responsibilities, the ITF provides Direct Training, Vocational and Apprentice Training, Research and Consultancy Service, Reimbursement of up to 50% Training contribution paid by employers of labour registered with it, and administers the Students Industrial Work Experience Scheme (SIWES). It also provides human resource development information and training technology service to industry and commerce to enhance their manpower capacity and in-house training delivery effort.

The main thrust of ITF programmes and services is to stimulate human performance, improve productivity, and induce value-added production in industry and commerce. Through its SIWES and Vocational and Apprentice Training Programmes, the Fund also builds capacity for graduates and youth self-employment, in the context of Small Scale Industrialization, in the economy.

The Industrial Training Fund is a grade ‘A’ Parastatal operating under the aegis of the Federal Ministry of Industry, Trade and Investment. It has been operating
for 50 years as a specialist agency that promotes and encourages the acquisition of industrial and commercial skills required for national economic development.

                 1.9              Definition of Key Terms

Human Resources: Is the set of individuals who make up the workforce of an organization, sector or economy. They are responsible with employing suitable individual that fit a job.

Management: The organization and coordination of the activities of a business in order to achieve defined objectives.

Human resource development: Human Resource Development is a process through which employees in an organization are assisted to realize their full potential for their present and future jobs.

ITF:  Industrial  Training  Fund  is  an  establishment  in  1971  for  the purpose  of  promoting  and  encouraging  the  acquisition  of skills in industry and commerce. 

Efficiency: Efficiency is the quality of achieving something which takes the organization nearer to their goals.