CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Human capital planning is the most strategic of all human capital management, that is the most important single resources of any organization is people (manpower). Planning defines the sources, number and types of human resources needed to meet future work requirements. Predetermined strategies to attract and retain the best people (manpower) are also laid down through planning strategic development and utilization of employment capabilities which yields best benefits to company are also designed into the plan.
As it is known that planning is an analytical process involving aspects so as to produce quality products and often best services, various plan exercises such as determination of desired goals, assessment of the future in relation to the environment changes, selection of activities, preparation of written document etc will have to be done which will give rise to mobilization of human capital.
The result of human capital training is marvelous as Abiodun (1999) submitted that training is a systematic development of the knowledge, skills and attitudes required by employees to perform adequately in a given task or job. Training can take place in a number of ways, on the job or off the job, in the organization or outside the organization. (Adeniyi, 1999) observed that staff training and development is a work activity that can make a very significant contribution to the overall effectiveness and profitability of an organization. The result of training will be related on high turnover, high productivity, lower observation, fewer breaks down of machines, lower migration reduction of waste and higher quality of work. It brings incumbents to the level of performances which needs the performance for the job, enhances the implementation of new policies and regulations, prepares people for achievement, improve manpower development and ensures the survival and growth of the enterprises.
Oribabor (2004) submitted that training and development aim at developing competences such as technical, human, conceptual and managerial for the furtherance of individual and organizations growth.
In today’s turbulent, often chaotic environment, commercial success depends not only on staff training but also on employees using their full talents; one of the ways to achieve this is through motivation.
According to Twyle (2006), the heart of motivation is to give people what they really want most from work, the more you are able to provide what they really want like increase productivity, improved or better quality goods and/or services.
Therefore, human capital planning is concern with the strategy for the acquisition, utilization, improvement and retention of an enterprise human capital is properly planed it will lead to poor productivity, poor quality of product etc. which will in turn lead to the death of such an organization.
1.2 STATEMENT OF THE PROBLEM
Human capital planning has a very important effect on organizational performance.
Kher and Fry (2009) maintained that for organization to achieve high productivity, its human capital must be properly planned. To them therefore the survival of any organization depend to a large extent on how its manpower or human capital are planned since the human capital are the people with their knowledge, skills and experience that organizations required to carry out its task.
If human capital planning is the strategy for the acquisition, improvement and preservation of an enterprise human capital, it is necessary the human capital of an organization and increase productivity depend largely on the type of training programmes organization have to improve the skills experience and ability of its work force.
Human capital planning is also very important to organization since it involves estimated the size and composition of the future workforce, human capital planning is forecasting an organization demand for and supply of this right type of people in the right number, human capital planning helps to recent, selection and placement of the right caliber of workforce into the right position.
There seen to be a serious argument as to the degree of how effective human capital planning impact on organizational performance. While some theorist and practitioners agree that there is a correlation between them, others thinks otherwise.
However, studies have shown that there is a correlation between effective human capital planning and organizational performance since effective human resource planning help in selection and placement of the right caliber of human capital by an organization and it will in turn lead to high productivity and improve organization performance. It is important to note that poor human capital planning will result in low productivity, low turnover etc. lack of appropriate training will also result in lack of specialization of human capital, lack of effective motivation tools and incentives to workers due to poor human capital planning will lead to poor organizational performance and also wrong selection and placement of workers will also result in low productivity. This is why this research is carried out to find solution to these problems.
1.3 OBJECTIVES OF THE STUDY
The primary objective of this study is to examine the effect of human capital planning on organizational performance as a means of achieving organizational goals and objectives.
To identify the extent to which effective human capital planning in the manufacturing sector of an organization can lead to high productivity.
To examine how lack of company efforts towards improving on its training.
To examine the extent to which effective motivation and incentives to workers due to proper human capital planning can lead to increase productivity.
To determine how selection and placement of workers due to proper human capital planning can lead to increase productivity.
