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.