The Effect Of Human Resources Development On Organizational Growth

Project and Seminar Material for Business Administration and Management BAM

Project and Seminar Material for Business Administration and Management BAM

Chapter One


1.1 Background Of The Study

Training and development of human resource have been considered an expend able luxury in terms of financial constraints. The growth and development of any organization depends on its human resources specific cost of management to develop individual skills or a means of developing people for promotion to the next level of organizational leadership. While these views carry some validity it is rapidly becoming apparent that the development of human resources should be regarded in the large context of trends in society and the need of changing organization.

The past not much importance was attached to the role or human resource development on the growth and efficiency or organizations. No pride of place was given manpower planning and development as a safe way to enhance skills knowledge and capacities of personnel in organizations. The importance of investing in human resources has become much clear in recent years because of mounting evidences on the extent of which such investment and it live with other factors in development act an engine change.

Although human resources management is that sub-system of an organization which is directly concerned with planning controlling the procurement development compensation integration and maintenance of the human resources component of the organization. The effectiveness of this subsystem will be judge by the way her polices and practices affect the performance and productivity of individual workers will be achieved towards the realization of the effectiveness of the organization.

Today one of the major problems confronting management an organization is the most effective way of putting the right position. Management should identify and provide for its human resources to accomplish its task. The concept organizational effectiveness is that which organization as a social system give certain resource and mean fulfill its objectives without in capacitating its means and resources and without placing undue strain upon its members. The means and resources referred to have cannot be personal constituents of the organization on who the achievement of effectiveness in the organization is based through their increased performance and productivity the existence of a conducive and carefully designed human resources management polices and practice appear inevitable for the attainment of these goals. Human resources are the most vital of all the factors have to wait. Due to the immense contributions of manpower programme the government of Nigeria has set up many institutions to help in management education in the country.

The national manpower board is responsible for the periodic appraisal of requirement for manpower in all occupation and the development of measure for in service training of employed manpower both in the public and private sectors.

Among these institutions is the industrial training fund (ITF) on which these research work is carried industrial training fund was established to promote and encourage the acquisition of skill in industry and commercial with a view of generating a pool of indigenous trained manpower sufficient to meet the needs of the economy.

Other includes the administrative staff college of Nigeria (ASCON) the Nigerian institute of management (NIM) and the center for management development (CMD).

It is simply defined as the potential available organization forms the people who work in it. To fully achieve its cooperate objectives an organization must establish its human resources based adequately in both quantity and quality.

The effect of human resources on the economic and industrial development has been under corded by Paul G Hoffinan who said of all the resources required economic development of human resources appear the most strategic if the countries are to achieve the self sustaining growth.

Furthermore in reaction to the felt need for the development of human resources in this country the federal government established the following training agencies:

  1. Industrial training fund (ITF) in 1971
  2. The administrative staff college of Nigeria (ASCON) in 1973
  3. The center for management development (CMD) in 1973 and
  4. Six federal training centers (FTCS) scattered in different locations across the country Lagos

1.2 Statement Of The Problems

One of the major problems confronting management in any organization is the most effective way of matching people with jobs. This calls for manpower planning programme. Many organizations fail to progress due to their inability to train and develop their workforce. Lack of adequate skills and manpower knowledge which are required to work and attain the major organizational objectives constitute a cog in the wheel of achieving them. The main concern of this research is on the effect of human resources development on organizational growth because without it the materials resources will remain dormant.

As noted by Likert (1967) all activities of any enterprise are initiated and determined by the persons who make up the institution. Plants offices computer automated equipment and all these that a modern firm uses are unproductive except for human efforts and directions. While the crucial role of human resources is organizational growth attainment has long been appreciated as evidence by organization pre occupation with such traditional personnel function as recruitment punishment and reward of the workforce for enhanced productivity yet there has been a spare of criticism from different walks of life both within and outside the country about the inefficient performance of our parastatals. The personnel officer should understand and identify certain conditions that will serve as pointer for the need for training.

1.3 Purpose Of The Study

The paramount aim of this research work as could be seen from the title page and with the observed problems in mind is to ascertain the effect of human resources development on organizational growth. A case study of industrial training fund (ITF) Enugu area office in essence it seeks to:

  1. Identify various human resource development plans and programmes.
  2. To help industrialist and others understand the potentials available to them from the people who work in the organization.
  3. Furthermore this will help to serve the purpose of setting standards for formulating personnel polices and ways of implementing them with regards being hard to the following
    • The organizations set corporate objectives
    • The organizations mission
    • The cultural framework of the enterprise and the individualistic difference of the employees for whom they are meant

With the foregoing organizations will be able to understand the best optimum population of personnel qualities mode of increasing their staff and knowledge to achieve organizational growth and effectiveness.

1.4 Scope Of The Study

This research work was intended to cover the effects of human resources development on organizational growth with the industrial training fund Enugu area office as a case study.

Various attempts were made to cover the historical background of industrial training fund the purpose of establishing it the problems and prospects there of the study includes the functions source of fund objectives grants and reimbursement scheme of industrial training fund.

1.5 Research Questions

In order to elicit information’s from respondents the following search question were created and used:

  1. To what extent all Industrial Training Fund (ITF) training and development progrmames are very effective tools towards organizational growth?
  2. In which areas of Industrial Training Fund (ITF) training activities do you think human resources development programmed has improved?
  3. In which ways does the ITF policy on oversea training programmes become more important than local training programmes in achieving cooperate objectives
  4. What other programmes does the Industrial Training Fund (ITF) offer to boost growth of other establishment outside it
  5. What are the relationship between the employers/employees in attainment of organizational growth

1.6 Research Hypothesis

Webster new international dictionary defines (Hypothesis is a basis for reasoning a supposition) formulated from proved data and presentation as a temporary explanation of occurrence as in science in order to establish a basis for further research. The purpose of hypothesis therefore is to enable one make inference about something.

In a continued effort to reach an appreciable equilibrium in the effect of human resources development on organizational growth the researcher employed a selected statistical tools to enable us reach a fair conclusion. In the light of the above therefore the following major hypothesis have been formulated hypothesis may be said to mean a tentative statement made by a researcher (subject to test) with a view to forming basis to study a phenomenon researchers situational dentition.

These hypothesis when tested will either conform or refute the extent at which these advanced statement can be upheld. It can equally place the researcher on the ground of drawing his conclusion and subsequent recommendation.

In order to determine the effectiveness of human resource development on organizational growth it is necessary to list the hypothesis below:

  1. Null hypothesis Ho: human resources development does not affect organization growth.
    Alternative hypothesis Hi: human resources development affect organizational growth.
  2. Null hypothesis human resources development not the most important subsystem on organizational growth
    Alternative hypothesis Hi: human resources development is the most important subsystem on organizational growth

1.7 Significance / Rationales Of The Study

General speaking, the effectiveness of any organization irrespective of its nature is measured by one significant and objective criterion namely the quality of its product in services is to a target extent a function of the caliber of human resources or manpower component of the organization production resources.

This research work is significant to both the management (employers) and the labour (employees) secondly a close look at the work carried out will reveal a significant effect of human resources development on the organizational growth. More so the research work will serve the role of shaping the organizations polices on human resources (personnel) for the overall attainment of the set objectives.

It is only when the human resources are adequately qualified for the job to be performed that we can hope that the material resources input can be effectively allocated and usefully utilized in the most optimal manner if personnel administration is to be successful management must give it sincere support in order to sustain organizational growth the practical relevance of this study lives in the fact that no organization can achieve it’s set objective without competent employee.

In essence this study is likely to be of immense value not only to the industrial training fund (ITF) but also to all organizations irrespective of size background and activity. Also the result of this study will hopefully sharpen the group of the problems besting human resources development in organization and leading to a more effective grip of the importance of well developed manpower programme.

1.8 Limitation Of The Study

Analyzing the efficient human resources development on organizational growth is not a shallow topic to be handled haphazardly. Ti is not only technical also sensitive and broad.

For the purpose of this project it restricted to the business concern. Also for want of time resources industrial training fund (ITF) Enugu area office is sampled out as abase for the research work.

So many factors are deemed to militate against quicker and easier completion of the work. These include among other:

Cost: Lack of fund may affect not only the period of the analyzing the effects of human resources development on the organizational growth and come out of legacy for the posterity one need to travel far and near

Time: Time is as costly as money, it is even easier facing financial problems than time. Time cost is hardly required. Financial markets do exist but time existed for time with the school academic; the period for the research work is too short putting other course into the budget.

Source of facts: This research has convinced me that so many authors share almost the same view on this topic “impact of human resources development on organizational growth” as such are going to a library having about ten textbooks of different authors at least you find our they are saying the same thing but in different tongue invariable you are reading a research work as compiled form the review of different authors in the library. Invariably one can say you are having a book or two.

Reluctant to co-operate: The management of some business organization are too reluctant to disclose the required information and more so when it comes to disclosing the organizational books of record. The idea equally affects the quality of facts given in the research.

1.9 Definition Of Terms


The process of learning skill that you need to do a job.


The gradual growth of a thing so that it become more advanced and stronger


Things together so that they can work and even better


Something that is unavoidable


A person who is a small apart of a large organization.


To find new people to join a company or an organization.


A plan that is intended to achieve a particular purpose.

The Effect Of Human Resources Development On Organizational Growth

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