CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

The most important asset of any organisation is its human resources. This means that employee must be trained in requisite knowledge and skills needed on the job. Therefore, human capital training is central to organizational success and increase in productivity. Organisation must give strong commitment to human capital training in order to meet the challenges of twenty-first century. They must engage in training and re-training to maintain competitive edge, large market share, innovation, quality products and services. In order to survive in any business environment, they must also build capacities in line with corporate objectives, this initiative will help organizations to have skilled, educated and competent workforce that can deliver quality services. Onuoha (2016) states that once an organization has employed workers, it’s considered qualified, suitable and competent to perform jobs according to specification and for which individuals are employed, it must embark on effective on-the-job training programmes that is necessary to enhance workers’ productivity.

Despite the poor human capital outlook in Nigeria, the gaps are still widening amid rapid global changes in technology, frequent academic disruption, low investment in human capital development infrastructures i.e tertiary institutions, professional bodies, vocational institutions, high mortality rate and recently brain drain etc. The worst hit education which happens to be the bedrock of human capital development, buit has suffered huge setbacks due to the inherent flaws in our academic institution. Loto (2000) and Lawson (2016), stress that education makes a fundamental contribution to both personal growth and society development and will be appreciated and understood in economies that wish to attain sustainable growth.

The first step to resolving the Human capital development deficit in Nigeria is to first begin at the level of the individual and bring to the fore the skills, competencies, training and experience of the individual. To this effect, organizations both public and private operate in dynamic and uncertain environments with the essential aim of effective management of human capital resources. This management involves various dimensions, including human capital training, manpower planning, training and development. At the center of this development is funding. No meaningful human capital development can take place without adequate budgetary allocation for training and development.

The interplay between these dimensions is complex, as the level of investments in human capital development impacts workforce skill acquisition and overall human capital growth and performance. Investments in human include the cost of training, that is, training materials and equipment. Loss of productivity, emolument and payment of trainers and resources persons (for example, salaries paid during training) and all these are positively related to economic growth and development of a nation (Olaniyi and Adam, 2012).

Manpower planning is also known as human resources planning, and it is the process that management uses to determine the manner in which an organization should move from point A to point B, in terms of manpower. This happens through planning and development, and enables management to have the right kinds of employees in the right number in the right place at the right time. Together, having the right manpower will help the organization achieve its goals, and will also benefit individual employees in the best way possible. This kind of planning enables human resource departments to forecast which human resources are required to perform which jobs. The human resource department will also assess which skills are required of employees for each job. It is fairly complex and, if done correctly, this will aid human resource in estimating its future position in terms of demand and supply.

Basically, this gives the human resource department a snapshot of the future, and helps the department plan ahead for what's to come (Armstrong, 2018). Manpower Planning must play a more strategic role in the success of an organization. Organizations that do not put their emphasis on attracting and retaining talents may find themselves in dire consequences, as their competitors may be outplaying them in the strategic employment of their manpower. This therefore calls for effective manpower planning in any organization. In carrying out the manpower planning the human resource manager faces a number of challenges which include the dynamic nature of the environment of corporate planning particularly with respect to manpower planning which creates major difficulties in predicting the future state of affairs. The result is that manpower planning horizon is increasingly getting shorter and is less accurate than years before. Planners must increasingly develop flexible planning scenarios leading to contingent plans. Work processes, norms and procedures may change requiring people to learn new ways of doing things. Such change may be viewed as threatening. Employees may or may not be in agreement about the need for and direction of change. The changes may result at least temporarily in worry, fear and insecurity among the workforce, breakdown in employee morale and a decline in productivity (Bach, 2016).

Manpower planning is a set of strategies and the process of manpower that plans itself. An effective human resources plan will provide various mechanisms designed to get rid of talent gaps, which may exist between the organization's supply of labor and its demand for the same. It is a highly dynamic process by nature, and it requires regular adjustments, as the conditions in the labor market keep changing. Manpower planning influences employee skills through the acquisition and development of a firm's human capital. Recruiting procedures that provide a large pool of qualified applicants, paired with a reliable and valid selection regiment will have a substantial influence over the quality and type of skills new employee possess. Providing formal and informal training experiences such as basic skill training, on the job experience, coaching, monitoring and management development, can further influence employees' development (Stewart, 2012).

The effectiveness of manpower planning will be limited if they are not motivated to perform, however, manpower planning can affect employee motivation by encouraging them to work both harder and smarter. Example of firm's efforts to direct and motivate employee behavior include the use of internal promotion systems that focus on employee merit and other forms of incentives intended to align the interests of the employees with those of shareholders. Wagner (2016) noted that the contribution of even a highly skilled and motivated workforce will be limited if jobs are structured or programmed, in such a way that employees, who presumably know their work better than anyone else, do not have the opportunity to use their roles. Thus, manpower planning can also influence the firm's performance through the provision of organizational structures that encourage participation among employees and allow them to improve how their jobs are all examples of such structures.

Planners, policy makers and leaders of institutions need up-to-date, accurate data on employees in order to plan and implement changes in a rationale, efficient and humane way. They need to know what manpower exists and the information about the capacity of this workforce. Planners require information on numbers of employees, their salaries, positions held, professional qualifications, managerial and supervisory experience, and training received their capacities, their professional development needs, and their seniority and contract terms. Unfortunately, this data is sometimes not readily available accurate or up-to-date (Roberts, 2002).

There is no doubt that organizations worldwide are striving for success and out-competing those in the same industry. In order to do so, organizations have to obtain and utilize her human resources effectively. Organizations need to be aware of face more realistically towards keeping their human resources up-to-date. In so doing, managers need to pay special attention to all the core functions of human resource management as this plays an important role in different organizational, social and economically related areas among others that are influential to the attainment of the organizational goals and thus organizations successful continuation in the market. This study, therefore examines the effect of human capital training on manpower planning, training and development in firms to Lagos State Nigeria.

1.2       Statement of Problem

Investing in human capital training should start with proper manpower planning process. This is to ensure that training and development programme is tailored to the need of the individual as well as the organization, private and public. There is need to evaluate the cost incurred in manpower planning, training and developing of employees since it is inevitable for organizations to achieve and attain its stated objectives. It is necessary to value the cost associated with training and developing of employees and place side by side with the initial objectives of the training, the value contributed by the employee or value added to the organization. by the employees. If this is not done then the cost associated with this training will result in negative return on investment.

Also, there has been criticism on how Nigeria governments and business owners have handled issues relating to the welfare and capacity development of employees, which has made large chucks of the population to live below poverty line. Though successive organisations claim to have invested huge sums on human capital development, so the question then will be what exactly have the government and private enterprises done to improve on the human capital index?

In addition, there are huge gaps in the knowledge available on the subject matter, especially on human capital training cost, which to a large extent hinders the depth of research work. While few information exist, the depth is not far-reaching, Akinlade and Adegbie (2020), and Obulor and Ohaka's (2020), research conducted by them are different in terms of scope, context, time frame, and methodology. There is highly recognized inadequate manpower planning, training and development processes and programme in most companies. This is partly due to lack of funding to execute manpower planning, training and development programme that will benefit the company.

Aside from lack of fund, planning and execution of human capital training and development programme are not extensive and deliberate, hence they do not impact on the human capital development of the company. There is growing evidence that inadequate development of employees contributed to poor service delivery and poor performance in most FMCGs.  Given the above, manpower planning, recruitment and selection, training and development, promotion and compensation which are the critical aspects of human resources management had been neglected which in turn hinder productivity, efficiency and performance (Omisore & Okofu, 2014). This study will contribute in minimizing this gap in the literature and thereby establish the basis to understanding of some aspects of human resource management in general and training in particular.

1.3       Purpose of the Study

The study examines the effect of human capital training cost on manpower planning, training and development with particular reference to Guinness Nigeria Plc. Lagos State. Specifically, the study sought to:

·                      investigate the effect of human capital training cost on manpower training and development process in Guinness Nigeria Plc.

·                      examine the extent to which the objectives of Guinness Nigeria Plc. training programmes are being met.

·                      determine the extent the training programme of Guinness Nigeria Plc. has contributed to enhancing the goals of the organisation.

·                      ascertain whether the training programme of Guinness Nigeria Plc. has improved the job performance of employees so trained.

1.4       Research Questions

The following research questions guided the study.

1.         What is the effect of human capital training cost on manpower training and development process in Guinness Nigeria Plc.?

2.         To what extent have the objectives of Guinness Nigeria Plc. training programmes are being met?

3.         To what extent has the training programme of Guinness Nigeria Plc. contributed to enhancing the goals of the organisation?

4.         Has the training programme of Guinness Nigeria Plc. been able to improve the job performance of employees so trained?

1.5       Research Hypotheses

The following hypotheses were tested at 0.05 level of significance.

1.         Human capital training cost has no significant effect on manpower training and development process in Guinness Nigeria Plc.

2.         The objectives of Guinness Nigeria Plc. training programmes will not meet the goals of the organisation.

3.         The training programme of Guinness Nigeria Plc. has not contributed to enhancing the goals of the organisation.

4.         The training programme of Guinness Nigeria Plc. will not enhance the employee on-the-job performance.

1.6       Scope of the Study

The study examines the effect of human capital training cost on manpower planning, training and development with particular reference to Guinness Nigeria Plc. Lagos State. The scope of this study revolves around the impact of human capital training costs on manpower planning, training, and development within fast-moving consumer goods companies.  The scope of the study would focus on the cost associated with human capital training Understanding how these costs affect budget distribution and how it can help organizations make informed decisions about training investments.

Also, the study will seek to understand the impact of key factors like size of budget, industry, affect the quality and effectiveness of human capital training and development programmes. The study's scope includes exploring how training costs influence strategic workforce planning. It will investigate whether organizations strategically allocate resources to training based on projected skill requirements, thereby ensuring a skilled workforce that meets future demands.

1.7       Significance of the Study

The significance of the study of the effect of human capital training costs on manpower planning, training and development is to shed light on key aspects of human capital, particularly with respect to manpower planning and training and development strategies.

Below are some reasons why this study is important;

1.                  By understanding how human capital training costs impact manpower planning organizations can make informed decisions about resource allocation, ensuring that the workforce planning strategies aligned with organizational goals and yield optimal returns in terms of employee performance and productivity.

2.                  The insight derived from decision reached from proper manpower planning will help organizations to adopt create more accurate budgets for training initiatives. This helps prevent overspending, maximizes the use of available resources, and minimizes unnecessary expenses.

3.                  The impact of a well-funded a well-structured training and development programme can enhance employee satisfaction and engagement, leading to improved retention rates. Researching the impact of training costs on these aspects can guide organizations in designing programs that attract and retain top talent.

4.                  Effective training and development programs contribute to a skilled workforce, which can provide organizations with a competitive edge. By understanding the cost-effectiveness of training investments, companies can enhance their capabilities and better position themselves in the market.

5.                  Another significance of this study is that organizations will be in a good position decide about how much to invest, and how to tailor training to meet specific manpower needs. This approach ensures that training efforts are aligned with the organization's objectives.

6.                  Also, this study will contribute to the existing body of knowledge in the field of human resource management. It would add valuable insights into the intricate relationship between training costs and manpower planning, providing a basis for future research and discussions.

1.8       Definition of Terms

Training: Training is a systematic acquisition and development of the knowledge, skills, and attitudes required by employees to adequately perform a task or job or to improve performance in the job environment.

Human Capital:  Human capital involves increase investment in education and training of the individuals. Individual’s abilities can be enhanced through education and training that bring about effective change in the job performance.

Human Capital Training Cost: Human capital training cost or investment is any activity which improves the quality (productivity) of the worker. Therefore, training and development is an important component of human capital investment.

Training and development: Training and development is defined as  the systematic process concerned with facilitating the acquisition of skills,  knowledge and attitudes which results to improved organizational performance.

Manpower planning: Manpower Planning which is also called Human Resource Planning consists of putting the right number of people, the right kind of people at the right place, the right time, and doing the right things for which they are suited for the achievement of goals of the organization.

Manpower development: Is a learning activity which is directed towards the future needs rather than the present needs and is concerned more with growth, career and succession than with immediate performance.

Fast-moving consumer goods (FMCG): Fast-moving consumer goods are products that sell quickly at relatively low cost. These goods are also called consumer packaged goods. FMCGs have a short shelf life because of high consumer demand (e.g., soft drinks, confections, alcoholic beverages, household products etc ) or because they are perishable (e.g., meat, dairy products, and baked goods).