The study examines the effect of human resource planning on organization’s performance in access bank, the target population is the top management staffs of Access Bank. Primary data was used in the research work, the study adopt the simple random sampling technique while data was analysed using the regression analysis. The geographical location of the study will be Access Bank, Lagos state.
The result from the findings of this study reveals that Human resource evaluation has positive and significant effect on employee commitment in access bank Nigeria Plc, Shagamu Branch, Ogun State; Recruitment and selection has positive and significant effect on employee’s productivity of access bank plc, Shagama branch; Human resource training and development has positive and significant effect on employee’s effectiveness of Access bank; The findings from the study also reveals that human resource planning have positive and significant effect on organizational performance.
Hence, the study concluded that human resource planning has a positive and significant effect on organizational performance, it was concluded that the dimensions of human resource planning has a significant effect on organizational performance in access bank Plc at Shagamu branch, Ogun State.
The study recommended that Access bank and their human resource managers should continually carry out human resource evaluation and planning to determine in advance the demand and supply situation in the labor market prior to recruitment of employees; Access bank and their human resource managers should train their employees to prepare them to fill positions in the future; Access bank should collaborate with training institutions to develop custom tailored programmes to suit their manpower needs.
1.1 Background to the Study
The business world has become intensely competitive and survival and sustainability have become a rarity for many business organizations. The competition has been born out of the rapid growth of technology and the overload of information available to business organizations today. This has made has improved the quality of products and services being offered by business organizations today (Makinde, 2014). With the competition so high, businesses have been forced to develop areas of core competencies which they can use as areas of competitive advantage. As such, the employees of business organizations have become valuable assets to organizations and sources of competitive advantages which imply that their management and handling is pertinent to the success and sustainability of any business organization (Versailes, 2015). More so in Nigeria, with the scramble for talents high amongst business organizations especially in the banking industry, there is a need to for organizations to appropriately direct their human resource to meet their needs. Thus human resource planning has become a vital management tool for organizational performance (Iraniwo, 2016).
Human Resource Planning (HRP) can be described as an attempt to anticipate the future of the organization and to provide personnel to satisfy customer’s demands. Furthemore, Bulla and Scott (2004) described it as the process that ensures that human resource needs of an organization are identified and plan and procedures are made to satisfy those requirements. Globally, the challenge of HRP is to translate the organization’s plans and objectives into a timed schedule of employee requirements (Dimba, 2013). The nature of business world today is such that for a company to excel it must be able to employ the right employees that meet the specific needs of the firm and fit into their organizational vision and goals (Plesil, 2009). All too often, managers end up hiring the wrong people and this translates to poor employee performance and ultimately organizational performance, hence the need for HRP (Mason, 2016). Furthermore, the globalization of the trade today and the development of new and emerging economies around the world have created a competition for talent and employees around the world (Lamiro, 2014). For instance, in the United States of America, there has been complaints from the Silicon Valley concerning the shortage in supply of talent in the technology industry, the same complaints has also been raised in the engineering industry (Jackson & Schuler, 2011). This can be due to the failure of human resource planners to forecast the future needs of the industry and find adequate strategies to meet those needs.
Furthermore, in Nigeria, since the institution of corporate governance laws for Nigerian Public 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 is used to replace the aging or retiring employees who have specific skill sets which they bring to the organization. The organizations will not want to leave the position void and thereby deprive the organization. Therefore HRP is used to ensure that their role is filled in such a way that won’t disrupt the efficiency of the organization.
Furthermore, in the banking industry in Nigeria, HRP is a skill that is highly needed due to the high rate of employee turnover that is witnessed in the banking sector (Worlu, 2016). Therefore in order to replace the void created by employees who leave HRP is used to forecast this happening and provide the strategies to effectively replace them. HRP is also crucial in the training and development of employees in the banking sector (Worlu, 2016). Due to the regular recruitment of staffs in the banking sector, HRP is used to make sure the employees recruited are cultured in line with the values that the bank represent and are working towards achieving the organizations vision, mission, goals and objectives. Furthermore, human resource managers in the banking industry in Nigeria face a shortage of effective and efficient leaders with many of the leaders who have played a significant part in the success of the industry aging or about to retire (Adeyinka, 2014). The importance of strong leadership was witnessed in Banks like Guarantee Trust Bank as the sudden death of their Former CEO Tayo Aderinokun led to a huge void been left and many business analyst have observed that the current CEO Segun Abgaje has not done a great job at filling this void (Osinowo, 2017). According to Usman (2017) this has led to a decline the business performance of Guarantee Trust Bank. HRP has been suggested by studies as a solution to this issues (Worlu, 2016; Ejifor & Mbachu, 2011). However, despite the importance of HRP there is still some doubts about its significance in improving organizational performance. Therefore this study aims to investigate the effect of HRP on organizational performance.
1.2 Statement of the Problem
According to Porter (2011) for a company to attain organizational sustainability it must be run responsibly in a stable manner that ensures that the organization consistently puts in a high level of performance. However, when employee turnover is at a high level it is difficult to create the stability required to run it responsibly. The rate of employee turnover in the banking industry in Nigeria is the highest of any sector (Mukaila, 2012). This has created an environment that is unstable and has sometimes led to inconsistencies in performance of banks in Nigeria.
Furthermore, the retiring of employees and the resignation or sacking of employees create a gap that organization has to fill. However, has seen before, there have been many cases of the wrong employee being employed which has led to poor performance by the employee and the bank itself.
Furthermore, the customers of many of the leading banks are beginning to complain concerning the attitude of some employees towards them especially when handling their complaints about service failures (Hiti, 2016). This has led to loss of trust of customers in the banking sector and a loss of their loyalty (Keshinro, 2015).
Additionally, there have hardly been any studies that have tried to investigate the use of HRP in Nigeria or in the banking sector. Therefore it is against this backdrop that this study will aim to determine the effect of human resource planning on the organizational performance of Access bank Nigeria.
1.3 Research Objectives
The general objective of the study is to determine the effect of human resource planning on the performance of Access bank Nigeria. The specific objectives are:
To determine the effect of human resource evaluation on employee commitment of Access bank Nigeria.
To determine the effect of employee recruitment and selection on the employee’s productivity of Access bank Nigeria.
To determine the effect of human resource training and development on employee’s effectiveness of Access bank Nigeria.
1.4 Research Questions
The research will attempt to answer the following questions:
What is the effect of human resource evaluation on employee commitment of Access bank Nigeria?
What is the effect of recruitment and selection on employee’s productivity of Access bank Nigeria?
What is the effect of human resource training and development on employee’s effectiveness of Access bank Nigeria?
1.5 Research Hypothesis
The following hypothesis will be tested during the course of the research:
H0(1): Human Resource Evaluation has no significant effect on employee commitment of Access bank Nigeria
H0(2): Recruitment and Selection has no significant effect on employee’s productivity of Access bank Nigeria
H0(3): Human Resource Training and Development has no significant effect on employees effectiveness of Access bank Nigeria.
1.6 Operationalization of Variables
The variables adopted by this study are: Human resource planning and organizational performance. The study will seek to investigate the influence of Human resource planning; the independent variable, on the dependent variable; organizational performance.
The variables for this research are consequently operationalized as follows:
Y = f(X)
Y = Organizational Performance
X = Human Resource Planning
where Y = Dependent variable
X = Independent variable
y = f (x1, x2, x3…xn)
x1 = Human resource evaluation
x2= Recruitment and Selection
x3= Human resource training and development
y = (y1, y2, y3)
y1= Employee commitment
y2 = Employee’s Productivity
y3 = Employees effectiveness
y= f(x1) __________________ (1)
y = f(x2) __________________ (2)
y = f(x3) __________________ (3)
The study will focus on equation (4) above.
Based on regression, we have
y1 = α0 + β1×1 + μ…. (1)
y2 = α0 + β2×2 + μ…. (2)
y3 = α0 + β3×3 + μ…. (3)
Where, α is the constant of the equation, β is the coefficient of X the independent variable where μ is the error or stochastic term in the equation.
1.7 Scope of the Study
The study will focus on assessing the effect of human resource planning on organizations performance in Access Bank. The target population is the top management staffs of Access Bank. The study will adopt the simple random sampling technique while data will be analysed using the regression analysis. The geographical location of the study will be Access Bank, Lagos state. Finally, the study would be carried out between September 2017 and April 2018 (8 months).
1.8 Significance of the Study
From a practical perspective, the findings of this study will be useful to top management and HR managers and practitioners in showing them to design their Human resource planning in a suitable manner that would improve organizational performance.
For the Banking sector the study will show the sector can mitigate against the malaise of employee turnover which is highest in the sector.
For the government the finding from this study is also significant in its application to the public sector. In situations whereby civil servants plan to retire they must be adequately replaced. Therefore this study will show the government how human resource planning helps solve this problem.
For society the study will provide a significant framework upon which further studies on Human Resource planning can be developed.
1.9 Definition of Operational Terms
Employee’s commitment: Employee Performance Management is about aligning the organizational objectives with the employees’ agreed measures, skills, competency requirements, development plans and the delivery of results (Nicolson, 2016).
Human Resource Planning: Human resource planning is a process that identifies current and future human resources needs for an organization to achieve its goals (Lair, 2015).
Employee’s productivity: It is a symbol of efficiency in production activities. It is a measure of efficiency of person, machine and factory in converting inputs into useful outputs (Stevenson 2013).
Training and Development: training is a learning activity directed towards the acquisition of specific knowledge and skills for the purpose of an occupation or task (Cole 2002).
Recruitment and Selection: Recruitment can be defined as searching for and obtaining a pool of potential candidates with the desired knowledge, skills and experience to allow an organization to select the most appropriate people to fill job vacancies against defined position descriptions and specifications (Kotler 2009).
Human Resource Evaluation: The process of an evaluation may include one or more of these things: An assessment on how well the employee is doing. Sometimes, this may include a scale rating indicating strengths and weaknesses in key areas (e.g., following instructions, promptness, and ability to get along with others) (Michael 2014).
Employees effectiveness: It can be defined as the outcomes of work because they provide the strongest linkage to the strategic goals of an organization, customer satisfaction and economic contributions (Gichuhi, Ajaja & Ochieng 2012).