Impact Of Human Resource Planning On Employees Performance

Project and Seminar Material for Economics

Abstract

This study was carried out on impact of human resource planning on employees performance using selected banks in Oshimili South Local Government Area of Delta State as case stduy. To carry out the study, five research questions were posed. The study adopted a descriptive survey design. The study was done in Oshimili South Local Government Area of Delta. The population of the study comprised of all the staffs of the selected banks. The population size of the study was 100. The instrument for data collection in this study was structured questionnaire.

Data collected were analyzed using frequency Table. And the hypothesis were tested using Pearson Correlation and Chi-square statistial tool SPSS v23. The major findings of the study disclosed that; Recruitment and selection policy affect employees’ performance; Training and re-training policy affect employees’ performance; Performance appraisal policy has at a certain high extent affected employees’ performance; Compensation has a very significant and positive impact on employees’ performance; Job security also influences employees performance.

Based on the findings; the research proffered the following recommendations; Organization should embrace human resource planning if employee productivity must be ensured; Human resources planning in the organizations must be matched with the organizations’ strategic planning to enable for enhanced employee productivity; Nigerian banking industries should learn to embrace human resources outsourcing as a trend in human resource management as it is believed to ensure productivity in the organizations.

Chapter One

Introduction

1.1 Background of Study

Globally, there is now a general realization that effective management of human resources (HR) can enable an organization to gain as well as maintain a competitive advantage (Gupta & Govindarajan, 2001). Consequently, many organizations have attributed their success to effective Human Resource Management (HRM) (Orbole, 2016). HRM may be understood to refer to strategies or policies, procedures as well as practices related to developing the organization’s human resources (Inyang, 2011). This is basically a unique way of managing employees and leads to achievement of organizational goals by using skilled and motivated staff. It incorporates various cultural, organizational and personnel techniques (Huselid, 2000). While stressing the significance of HR, Elnaga and Imran (2013) have argued that employees are a critical resource in an organization as they can affect the corporate image and consequently, determine the success or failure of the organization. Effective HRM enables managers to make plans and hire skilled staff, at the same time it helps employees find meaningful work with avenues for career development.

The key objective of HRM is to increase employee performance and improve organizational performance through investment in HR (Craft, 2000). This is achieved through several key functions of HRM including planning for the quantities and qualities of required employees, acquiring services of employees, developing them, motivating them and making sure that they continue to maintain high performance standards. The human resource planning (HRP) thus becomes a very essential component of human resource practice (Dienemann, 2005).

HRP aims to ensure a suitable workforce is accessible to the organization to facilitate and improve organizational performance (Mathias, 2003). Through HRP organizations are able to maintain a desirable human resource position while projecting future needs so as to have the correct quantities and qualities of employees as needed. HRP is therefore a strategy for the organization to acquire, utilize, development and retain its workforce by forecasting prospective workforce needs, reviewing current human resource needs and making plans to fill any anticipated manpower gaps (Green & Downes, 2005). Reilly (2003) argues that the HRP function enables an organization to approximate its need for labour, calculate the numbers and supply source that will satisfy the demand.

Despite differences in terms of the strategies and practices, HRP is embraced in both the private and Banking sectors worldwide (Delaney, 2000). According to Seonghee (2005), since the mid-1990s there has been a rise in the use of HRP as a strategic function of HRM. HRP has been generally accepted as a critical function because it enables organizations to attain their goals through the forecast of human resource needs (Jacobson, 2010). Therefore, how to conduct HRP accurately and effectively has gained significant interest in the field of HRM over the years (Campbell, 2000).

Furthermore, in Nigeria, since the institution of corporate governance laws for Nigerian Banking companies that requires a certain percentage of the board members to be female, there has been huge competition for female talent among many large corporations in Nigeria (Akpata, 2017). This has necessitated that many companies forecast the supply of female talents and based on those forecast make strategic plans to acquiring the best possible female talents (Keshinro, 2013). Furthermore, human resource managers in Nigeria face the challenge of replacing employees who are retiring with other employees that have similar skill set and experience in order not to create a large void in the organization. HRP has been used to tackle this challenge in organizations (Onugu, 2014). HRP however has an immense impact in the organizations or employees in an organization. As it oversees workers welfare, well-being, conducts and composure of employees. Thus this study is geared towards the imact of Human Resource planning on employee performance.

1.2 Statement of Problem

Banks seem to fall desperately behind the learning culture because training and development of their human element seem to be perceived as ancillary activities, rather than as pragmatic catalysts to business results. They fail to see the payback of investments in their human assets. They tend to see human expenses as something which needs to be minimized. Lack of continuous learning opportunities is because the focus of banks appears to be devolved to bottom-line, short term payback. Leaders have not nurtured or developed people. They seem to have mistakenly highly paid their so called ‘all stars’ with the need to truly reward the qualities that provide for long term stability and resilience. They seem to ignore the fact that appropriate recruitment & selection, training and re-training of employees, adequate performance appraisal, compensation and job security influence employees’ performance.

One of the major problems facing banks seems to be the issues of recruitment and Selection which involve making decisions about people. Where there are several job applicants for the job, they appear to be unaware that they must decide which recruit is the most qualified. Selection is the process of identifying that those recruited individual will best be able to assist the firm in achieving organizational goals. However, most bank managers ignore it with the view of fixing their relations in the positions. This may send the firm to early grave.

In Nigeria banking industry, the training and retraining of employees is yet to receive the desired level of attention from all levels of management. There seem not to be enough systematic attention to update regularly the knowledge and skills of the staff in the light of the changes in the environment and the wider society. This neglect has in turn affected the quality of service in the banking system in Nigeria. Hence, this study seeks to assess the direct impact of human resources planning on employees’ performance within the Nigerian banking industry.

1.3 Objectives of the Study

The general objective of this study is to determine the impact of human resources planning on employees’ performance. Other specific objectives are to:

Determine the effect of recruitment & selection on employees’ performance.
Examine whether training and re-training programmes affects employees’ performance.
Find out the extent to which performance appraisal system affects employees’ performance.
Ascertain the impact of compensation system on employees’ performance.
Determine whether job security influence employees performance.

1.4 Research Question

This study shall be guided by the following research questions.

Does recruitment and selection policy affect employees’ performance?
Does training and re-training policy affect employees’ performance?
To what extent does performance appraisal policy affect employees’ performance?
What is the impact of compensation on employees’ performance?
Does job security influence employees performance?

1.5 Statement of Hypotheses

Based on the objectives and research questions, the following hypotheses were formulated to guide this study;

HO1: There is no significant relationship between recruitment and selection and employees performance.
HO2: There is no significant relationship between training and re-training and employees performance.
HO3: There is no significant relationship between performance appraisal and employees performance.
HO4: There is no significant relationship between compensation and employees performance.
HO5: Job security does not influence employees performance.

1.6 Significance of the Study

In the body of knowledge, considerable research has been done linking employees performance to a set of determinants. The previous studies in the literature indicated a link between employees performance and recruitment and selection (Compton, Morrissy, and Nankervis, 2009; Sohail, Tanveer and Muneer, 2011) employees performance and training and re-training (Salami, et al, 2013; Saiyadain, 2009) employees performance and performance appraisal (Andrew, 2009; Sudin, 2011) employees performance and compensation system (Chow, Haddad and Wingender, 2001) and employees performance and job security (Boella and Turner, 2005; Reisel, et al 2007).

This study examines the impact of human resources planning on employees’ performance in the Nigerian banking industry. The study will have impact on the management of banks and also show the relevance of human resources planning on the performance of employees. Thus, the following will benefit from this study:

It will enable the Nigerian banks in to provide bases for reexamining the management of their staff with a view to identifying their areas of strength and weaknesses. This will provide an avenue to fashioning out unique employees’ management that will give the organizations a competitive edge. It will ultimately help in providing quality service which has been identified over time to have a positive relationship with staff.

The study will be of significance to the government because it will help it to recognize and regulate the activities of banks as they affect their employees. They will also use the information in this study to guide their thinking and actions.

Other business organizations in the country will also benefit from this study because it will help them to realize that employees’ management is a kind of tool and asset in the organization. As a result, they will do everything to increase this asset. When they do this, the employees will work in harmony and the organizational productivity will increase.

Bank regulators will benefit from this study because it will help them to understand the good staff relation that have been put in place by banks and support them through appropriate regulations to promote best practices that will guarantee staff value and satisfaction with the services provided by the banks.

In this area, researchers will also benefit from this study. As the study will be reference material, an addition to the existing literature on the subject matter.

More so, previous studies have highlighted the link between human resource planning and organizational performance. The generality of the existing studies focused on organizational performance, leaving a yarning gap on the course of their studies which this study attempts to fill by focusing on the linkage between human resource planning with emphasis on recruitment and selection, training, performance appraisal, compensation system and job security and how they affect employees’ performance.

1.7 Scope of the Study

This study examines the impact of human resources planning on employees’ performance in the Nigerian banking industry. It shall cover some selected new generation banks located in Oshimili South Local Government Area of Delta State. The banks were chosen because it was observed that they record high rate of staff turnover annually. Again, some of the staff seem to perform below customers’ expectations.

The sample to be employed for this study shall be limited to employees and customers of the selected banks. The adopted indicators shall include recruitment & selection, training and re-training, performance appraisal and compensation. It is presumed that these indicators would make for easy measurement of human resources planning and employees performance.

1.8 Definition of Study Terms

Demand Forecasting:

This is the procedure of approximation of the potential number and excellence of workforce conditions in future (Reilly, 2003). Forecasting human resource demand is the process of estimating/predicting the future human resource requirement of right quality and right number based on past and present data (Seonghee, 2005). It refers to the progression and prediction of the future demand for the organization under both controllable and non-controllable factors (Griffins, 2006). In this study demand forecasting will be understood as a process of predicting future manpower demands for the Ministry of Banking in terms of skills and competences.

Human resources for Banking (HRH):

Deals with essentials of managing the workforce in the Banking sector to achieve a county’s Banking priorities (Griffins, 2006). HRH denotes the workers occupied and engaged in the issuance of labour in the Banking sector (WHO, 2008). In this study HRH will be understood as the essential manpower needed to enhance productivity of workers and subsequent improvement in Banking service delivery.

Human Resource Planning (HRP):

Is the procedure by which the present and prospective requirements of workforce that an organization needs to attain its objectives are established (Reilly, 2003). It is a procedure or process of forecasting provision as well as requirements for labour or workforce in an organization (Ghazala & Habib, 2012). This Study will adopt Reilly’s definition.

Organizational Performance:

It comprises real production as well as the output of an institution and is deliberated alongside the desired productivity (Shirey, 2008). In this study since the MOH is not a profit making firm, performance was measured using staff performance appraisal, performance contracts, strategic plans, customer satisfaction surveys in order to understand the analysis/comparison of an organizations performance against its set goal/s and intentions

Optimal Staffing:

This ensures that the organization has adequate staff at all times (no over or under staffing) in order to enable it enhance service delivery. It is also referred to as a conscious and constant practice that involves collection, improvement and assessment ofworkers so as to fill vacancies with suitable candidates in an organization Gupta (2008). It involves choice as well as training the workers to be able to undertake various positions, functions and charging them with the associated responsibilities (Shirey, 2008). In this study optimal staffing is understood as the practice of ensuring the MOH has the required number of doctors, nurses, clinical officers and other Banking staff.

Succession Planning:

It is the deliberate move by an organization to promote a persistent growth of workers in order to make sure that key posts maintain steadiness in an effort to help the organization attain its goals (Ghazala & Habib, 2012). It is a deliberated action by an organization to encourage as well as support progress of workers that ensures main posts remain stable so that an organization can achieve its goals and objectives (Kossen, 2001). In this study succession planning is understood to depict a continuous process of developing employees’ skills and knowledge through training. This prepares them take over key positions in future with a view of ensuring no gap exists.

Employee Motivation:

Employee motivation refers to an individual’s need to work to their full potential in order to carry out a specific job or task (Armstrong, 2014). In the context of this study, employee motivation will be understood to depict the HRM factors that are known to boost employee morale in work performance. These may include incentives such as adequate compensation, opportunities for training and promotions/ career progression, adequate working tools and a favourable working environment.

Supply Forecasting:

This is basically a procedure for creation of estimation concerning future demands and supply of workers in an organization. In order to conduct a vibrant supply forecasting of workforce there is need to consider both the internal and external factors (Coonan, 2005). In this study Human resource supply forecasting will be understood as process of assessing current HR supply and projecting future needs with a view of maintaining optimal levels.

Chapter Five

Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings into the impact of human resource planning on employees performance using selected banks in Oshimili South Local Government Area of Delta State as case study. The chapter consists of summary of the study, conclusions, and recommendations.

5.2 Summary of the Study

In this study, our focus was to examine the impact of human resource planning on employees performance using selected banks in Oshimili South Local Government Area of Delta State as case study. The study specifically was aimed at determining the effect of recruitment & selection on employees’ performance; Examine whether training and re-training programmes affects employees’ performance; Find out the extent to which performance appraisal system affects employees’ performance; Ascertain the impact of compensation system on employees’ performance; determine whether job security influence employees performance.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 50 responses were validated from the enrolled participants where all respondent are staffs of the selected banks in Oshimili South Local Government Area of Delta State

The findings of this study discloses that;

Recruitment and selection policy affect employees’ performance.
Training and re-training policy affect employees’ performance.
Performance appraisal policy has at a certain high extent affected employees’ performance.
Compensation has a very significant and positive impact on employees’ performance.
Job security also influences employees performance.

5.3 Conclusions

Planning is essential for productivity and organizational effectiveness and efficiency because it acquires best human resources, focuses on corporate goal, utilizes human resources, develops human resources, reduces uncertainty and labour cost, regularizes production, maintains good industrial relation, keeps records, and controls human resources.

Human resource planning must be linked with the organizational strategic plan as this is the only way to make manpower planning effective since it aims at not just ensuring that people are in the right place, at the right time and in the right number, but that they are also ready to adapt appropriately to different activities for future manpower needs. It is therefore never late for changes in the modus operandi of the organization hence a never ending process which utilizes matching human resources to its demand and supply for effectiveness and efficiency in achieving the overall organization goals. This is in lieu of the fact that the major goal of human resource management is productivity as all the functions and activities of human resource management are directed towards achieving high productivity (Oguonu, 2007) which improves when managers emphasize quality over quantity, break down barriers and empower their employees. Contemporarily, Managers, Chief Executives and Heads are advised to use reward systems,employee involvement, teamwork and excellent interpersonal relationship to secure high productivity in their various organizations. Howbeit, it is the ability of an organization to align her human resource management policies and practices with the overall organizational goals thatthe needed productivity can be assured.

5.4 Recommendations

Based on the responses obtained, the researcher proffers the following recommendations:

Organization should embrace human resource planning if employee productivity must be ensured;
Human resources planning in the organizations must be matched with the organizations’ strategic planning to enable for enhanced employee productivity
Nigerian banking industries should learn to embrace human resources outsourcing as a trend in human resource management as it is believed to ensure productivity in the organizations