A Thesis Proposal Submitted to the Leadstar College of Management

and Leadership in Partial Fulfillment of the Requirements for the

Award of the Degree of Master of Business Administration (MBA)

The Effect of Human Resource Planning on Organizational

Performance: Case of IRC Ethiopia,

By: Heran Samuel

Advisor: Dr. Merga

June 19, 2020

ADDIS ABABA, ETHIOPIA

Contents
Chapter One...............................................................................................................................................6
1. INTRODUCTION...............................................................................................................................6
1.1 Background of the study................................................................................................................6
1.2 STATEMENT OF THE PROBLEM......................................................................................................8
1.3 OBJECTIVE OF THE STUDY..............................................................................................................9
1.4 RESEARCH QUESTIONS................................................................................................................10
1.5 STATEMENT OF THE HYPOTHESES...............................................................................................10
1.6 SIGNIFICANCE OF THE STUDY......................................................................................................10
1.7 SCOPE AND LIMITATION OF THE STUDY......................................................................................10
1.8 DEFINITIONS OF TERMS...............................................................................................................11
1.9 ORGANIZATION OF THE STUDY....................................................................................................12
CHAPTER TWO.....................................................................................................................................13
2. LITERATURE REVIEW..........................................................................................................................13
2.1 INTRODUCTION............................................................................................................................13
2.2 CONCEPTUAL FRAMEWORK........................................................................................................15
2.2.1 FORECASTING HUMAN RESOURCES DEMAND..........................................................................16
2.2.2 STRATEGIC ACTION...................................................................................................................17
2.2.3 ISSUES OF HUMAN RESOURCES TRAINING AND DEVELOPMENT..............................................17
2.2.4 OBJECTIVES OF PLANNING HUMAN RESOURCE NEEDS WITH RESPECT TO HUMAN RESOURCES
TRAINING/DEVELOPMENT.................................................................................................................20
2.2.5 ORGANIZATIONAL PERFORMANCE...........................................................................................26
Chapter Three..........................................................................................................................................27
3.RESEARCH METHODOLOGY........................................................................................................27
Introduction...........................................................................................................................................27
3.1 Research Design of the study.....................................................................................................27
3.2 Population of the study.............................................................................................................27
3.3 Sample size and Selection Technique........................................................................................27
3.4 Source and Methods of Data collection.....................................................................................28
3.5 Methods of Data Analysis..........................................................................................................28
3.6 Ethical Consideration.................................................................................................................28
 Chapter One
1. INTRODUCTION
In this chapter, the background of the study, statement of the problem, basic research questions,
objectives of the study and significance of the study have been treated one after the other.

1.1 Background of the study

In the early days of industrialization, managers rarely had to think ahead about the numbers and
kinds of people required to get the work out: Conditions outside organizations were relatively
stable. Most work demanded little by way of specialized training and expertise. And managers
could find all the people they needed on short notice, provided they were willing to pay
competitive wages. However, there must have been some HR planning going on, even in earliest
times. It is hard to imagine that the builders of the Great Pyramids or of Stonehenge completely
disregarded planning those superhuman exertions that were required to erect these monuments of
antiquity over many generations. Yet records from that time do not exist to reveal how managers
planned for their human resources (William and others, 2002).

The origin of manpower planning, the predecessor of modern HR planning, predates the
beginnings of twentieth-century management theory. Among the first to raise the manpower-
planning issue was the Frenchman Henri Fayol (1841–1925). His famous fourteen points of
management are still considered valid today. One point had to do with what Fayol called stability
of tenure of personnel. For Fayol, administrators bear responsibility to plan for human resources,
ensuring that ―human and material organization is consistent with the objectives, resources, and
requirements of the business concern‖ (Fayol, 1930, p. 53). This point resembles some modern
definitions of HRP (William and others, 2002).

In every organization human resource manager is responsible for the coordinating and
controlling of employees so as to develop the organizations’ performance. In today’s market, the
effective use of human resources to reach the objectives of the company is very important. Hence
for the sake of this research the area of human resource management that is of focus is the
practice of planning by the human resource department (Eniola& Elizabeth, 2013). Human
resource planning is a process that identifies current and future human resources needs for an
organization to achieve its goals. Human resource planning should serve as a link between
human resource management and the overall strategic plan of an organization.

Large numbers of employees, who retire, die, leave organizations, or become incapacitated
because of physical or mental ailments, need to be replaced by the new employees. Human
resource planning ensures smooth supply of workers without interruption. Human resource
planning is essential in the face of marked rise in workforce turnover which is unavoidable and
even beneficial. Voluntary quits, discharges, marriages, promo¬tions and seasonal fluctuations in
business are the examples of factors leading to workforce turnover in organizations. These cause
constant ebb and flow in the work force in many organizations. In any case, various analysts
exposed that human resource planning practices are accepted to be the basic constituent of
organizational procedure (Benjamin & Anthony, 2014). In such manner, the organizations need
wise, instructed, skillful, conferred and profoundly energetic employees to build up a way for
boosting the organizational performance. Thusly, human resource management generally implies
the undertakings looking over employees, counseling with them, instructing them, empowering
them through training to shape their tenacity, accomplish their potential endeavors and to
encourage the organizational destinations (Fahad, Nadeem & Samsaa, 2015) Organizations have
increasingly acknowledged the fact that the company’s human resources are valuable and can be
a unique source for competitive advantage, no wonder most companies have to pay dearly in
terms of organizational performance for neglecting this fundamental principles of effective
human resources planning.

Human resources planning allows companies to plan ahead so they can maintain a steady supply
of skilled employees. That is why it is also referred to as workforce planning. The process is also
used to help companies evaluate their needs and to plan ahead to meet those needs.

Human resource planning needs to be flexible enough to meet short-term staffing challenges
while adapting to changing conditions in the business environment over the longer term. HRP
starts by assessing and auditing the current capacity of human resources.
The challenges to HRP include forces that are always changing such as employees getting sick,
getting promoted or going on vacation. HRP ensures there is the best fit between workers and
jobs, avoiding shortages and surpluses in the employee pool.

To satisfy their objectives, HR managers have to make plans to do the following:

 Find and attract skilled employees.

 Select, train, and reward the best candidates.
 Cope with absences and deal with conflicts.
 Promote employees or let some of them go.

The term "human resource management" has been commonly used for about the last ten to
fifteen years. Prior to that, the field was generally known as "personnel administration." The
name change is not merely cosmetics. Personnel administration, which emerged as a clearly
defined field by the 1920s (at least in the US), was largely concerned with the technical aspects
of hiring, evaluating, training, and compensating employees and was very much of "staff"
function in most organizations. At first the field did not focus on the relationship between
employment and overall organizational performance or on the systematic relationships among
such practices, but clearly today it is no longer so since organizational performance is hinged on
the aspect of planning of the human resources in an organization. According to Sikula “the
ultimate purpose/objective of human resource planning is to relate future human resources to
future enterprise need so as to maximize the future return on investment in human resources”.

Investing in HRP is one of the most important decisions a company can make. After all, a
company is only as good as its employees. If it has the best employees and the best practices in
place, it can mean the difference between sluggishness and productivity and can lead to
profitability.

1.2 STATEMENT OF THE PROBLEM

The success of any organization depends very crucially on the efficiency and effective use of its
skilled, trained, and productive employees. Therefore, the need for human resource planning is
also felt in order to identify areas of surplus personnel or areas in which there is shortage of
personnel. Then, in case of surplus personnel, it can be redeployed in other areas within the
organization. Conversely, in case of shortage of personnel, it can be made good by downsizing
the work force.

A systematic approach to human resource planning is needed to ensure that the organization is

made up of the right people, in the right place, at the right time to deliver high quality work.

Like many other parts of the world, organizations in Ethiopia of which IRC is no exception, are

facing looming challenges in attracting and retaining skilled and valuable employees to meet

changing need. Together with rapid advances in communication technology, these factors are

already having a profound effect on what and how services are provided, to whom, and at what

cost. This has made the need for effective planning of the organization’s most valuable asset.

The issue of Human Resource Planning raises series of questions. For instance, how effective is
Human Resource Planning policies and practices in the IRC human resource department? How
do they address human capital challenges that hamper the execution of service delivery
initiatives and interventions at the Human Resource Department?

Those challenges have been hampering the organizational productivity. The problem spurs the
research to proffer solution.

1.3 OBJECTIVE OF THE STUDY

The main objective of this study is to examine the Effect of Human Resources Planning on the
organizational performance of IRC HR department, as it affects the Organizational performance.

Specific objectives include

i. To ascertain the relationship between human resources planning practices in IRC HR
department and its organizational performance.
ii. To ascertain whether the recruitment of qualified personnel have significant relationship with
the organization performance.
iii. To examine step by step process to be taken to make for Human Resources planning in IRC
HR department to become more effective.

1.4 RESEARCH QUESTIONS

i. What is the relationship between Human Resources Planning and Organizational Performance?
ii. What is the relationship between recruitment of qualified personnel and organizational
performance in IRC HR department
iii. What steps can be taken by an organization to make Human resources planning more
effective?

1.5 STATEMENT OF THE HYPOTHESES

H01: Human Resources Planning has no significant relationship with Organizational

performance

H11: Human Resources Planning has significant relationship with Organizational performance.

H02: Recruitment of qualified personnel has no significant relationship with organizational

performance.

H12: Recruitment of qualified personnel has no significant relationship with organizational

performance.

1.6 SIGNIFICANCE OF THE STUDY

The research will be valuable reference material for students, organizations and other interested

persons who may want to undertake similar study. Recommendations made by the study would
enable organization to have more insights on the need to shift from ad hoc planning to more

systematic and scientific based planning of their human resources.

1.7 SCOPE AND LIMITATION OF THE STUDY

The study is limited in scope to IRC HR departments, particularly to the Head of department and
Manager. The study focuses on the Significance of Human Resources Planning Practices on
organizational Performance and how it improves management efficiency. The study may not
cover all aspects and dimensions of Human Resource Planning and therefore, may not be able to
provide comprehensive empirical facts and evidence of HRP in organizations. Using the head
office of the IRC may leave vital HRP perspectives and other empirical facts and evidence from
other Regions IRC is working in, that are of use.

1.8 DEFINITIONS OF TERMS

Human Resources Management, it is the management of human resources commonly referred

to as HR department, it is designed to maximize employee’s performance in service of an
employer’s strategic objectives.

Human Resource Planning: this is a process that identifies current and future human resources
needs for an organization to achieve its goals. Human resource planning should serve as a link
between human resource management and the overall strategic plan of an organization.

Assessing Needs: Human resource planning is also required to determine whether there is any
shortage or surplus of persons in the organization. If there are less persons than required, it will
adversely affect the work. On the other hand, if more persons are employed than the requirement,
then it will increase labor cost, etc. Human resource planning ensures the employment of proper
workforce.

Labor Turnover: There is always labor turnover in every organization. The degree of labor
turnover may vary but it cannot be eliminated altogether. There will be a need to recruit new
persons to take up the positions of those who have left the organization. If the concern is able to
forecast turnover rate precisely, then advance efforts are made to recruit and train persons so that
work does not suffer for want of workers.

IRC: International Rescue Committee

Organizational efficiency is the organization’s ability to implement its plans using the smallest

possible expenditure of resources. It is an important factor in the
firm's organizational effectiveness, this being the ease and degree of success with which
the organization is able to accomplish its aims.

Operational performance management, (OPM) is the alignment of all business units within an

organization to ensure that they are working together to achieve core business goals.

Training and Development, in Human resource management is regarded as a function

concerned with organizational activity aimed at bettering the job performance of individuals and
groups in organizational settings.

1.9 ORGANIZATION OF THE STUDY

The study is organized into five chapters. Chapter one is the introduction, which outlines the

background to the study, statement of the problem, objectives of the study, research questions,

significance of the study, scope and limitations of the study and the organization of the study.

Chapter two presented the review of various work related to the topic and discussions of

concepts on the subject matter, from both published and unpublished sources, while chapter three

contained the methodology in detail

CHAPTER TWO

2. LITERATURE REVIEW

2.1 INTRODUCTION

Human resource planning is one of the most important elements in a successful human resource
management program (De cenzo & Robbins, 1988). Human resource planning is the core of
human resource management. It determines that the right number of people with the right skills,
in the right job position at the right time is employed in the organizations. Human resource
planning aids organizations to forecast, recruit and retain competent workforce in order to meet
the organizational goals. Walker (1980) defines human resource planning as analyzing
organization’s human resource needs under changing conditions and developing the activities
necessary to satisfy these needs. Vetter (1967) also defines human resource planning as the
process by which management determines how organizations move from current position of
manpower to its desired state. Human resource planning is an ongoing process that is not static
involving many interrelated activities which must be modified and updated as conditions require.

According toOgunsaju (2006), personnel management is the effective mobilization of human

resources based upon appropriate recruitment, selection, training and placement of appointed
staff in order to achieve the organizational set down goals and objectives. It could also be
defined as the effective utilization of human resources in an organization through the
management of people and related activities. The term planning is used in so many different
ways that there is often confusion about what people actually mean when they talk about
planning or when they use the words such plans and planner. Moreover, many of its uses are so
broad that the basic elements of planning are difficult to identify, and it cannot easily be
distinguished from related activities such as policy-making or plan implementation. It was partly
this confusion which led one writer on the subject to title his article, “if planning is everything,
maybe it’s nothing” (wildavsky, 1972).

Conyers and Hill (1984) defined planning as a continuous process which involves decisions or
choices about alternative ways of using available resources, with the aim of achieving particular
goals at some time in the future. According to Nyerere(1969), planning involves making
decisions about which of a number of courses of action to adopt in order words, making choices.
He further emphasized that, it is not possible to provide everything for everybody at once and
that the plan represented the result of process of choosing which thing should be given priority
attention. Planning, he said; means choosing between many desirable activities because not
everything can be done at once (Nyerere 1969). Planning involves deciding what should be done,
how it should be done and when it should be done in determining organizational goals and the
means of achieving those goals of the organization (Williams, 2000). Planning therefore helps to
ensures that individuals working together in an organization understand the purpose of their
organized effort and the task ahead of them. Thus, it helps people within the organization to
know what is expected of them. “Unless there is planning events are left to chance; its core
importance resides in its ability to minimize risk while taking advantage of business
opportunities” (Koontz et al, 1981).

As regards human resource, planning entails taking care of current and future manpower needs
of the organization (Frantzeh, 1981). There is a close link between manpower planning and
strategic organizational planning. This is because for effective manpower plan, there must be a
reliable input or information as regards the future direction of the organization in respect of the
type of activities it would be involved in the future, the type of skills required. Thus, human
resource planning is sometime called manpower planning. Other term used are personnel
planning and employment planning (Koontz et al, 1981). Therefore, human resource planning is
the process of determining and assuring that the organization will have an adequate number of
qualified persons available at the proper time, performing jobs which meet the needs of the
organization and which provide satisfaction for the individual involved.
Dessler, (2001), opined that human resource planning is an ongoing process that is not static
involving many interrelated activities which must be modified and updated as conditions require.
It includes the planning and development of human resource program, such as recruitment,
performance appraisal, and training to ensure that people’s needs in the organization are met.
Strictly speaking, we should call this function “human resource planning and action
programming.” Furthermore, human resource planning requires detailed analysis of the present
and the future to ensure that the organization has the right number of people available who
possess the right kinds of skills to perform the jobs required by the organization when the work
is needed (Izueke, 2009).

The basic for human resource planning is the competitive organizational strategy of the
enterprise as a whole. Mathis and Jackson (1977) see human resource planning as the process of
analyzing and identifying the need for the availability of human resources so that the
organization can meet its objectives. According to Griffin (1977), human resource planning
involves assessing trends, forecasting the supply and demand of labor and then developing
appropriate strategies for addressing any differences. Dessler (2001) further sees human resource
planning as employment planning which, is the process of formulating plans to fill future
openings based on an analysis of the positions that are expected to be opened and whether they
will be internally or externally. This is why Ogunniyi (1992) in handling the subject says that
manpower planning is a concept that involves critical analysis of supply, demand, surplus,
shortages, wastage and utilization of human resources whose primary goal is the adoption of
policy actions and strategies which will not be stressful and or be a negation of endeavors to
balance the equation of supply and demand required for socio-economic and political
development of a nation. Human resource planning can generally be seen as activities involving
processing people into, through, and out of the workplace.

2.2 CONCEPTUAL FRAMEWORK

Human resource planning is a management activity that involves a careful analysis of existing
workforce, which specifically involves analysis of: Workforce inventory (disaggregating it into
skilled and unskilled, technical and non-technical etc.); Relating the disaggregated workforce to
the job involvements and requirements for an organization like IRC (e.g administrative
staff/marketer ratio, proposed productivity level and available work-hours); this analysis helps in
calculating the required personnel an establishment needs; so as to determine if there is shortages
or surplus of workforce. Henri Fayol, (1980), asserted that, Scientific human resource planning
makes the organizations to acquires the right number of qualified people in the right job at the
right time. Therefore, human resource planning is the most essential for organization
productivity.

Furthermore, in order to ensure that the organization gets right people at the right time and right
place, Human resources systems like Human resources planning, recruitment and selection are
implemented. Effective implementation of these systems ensures that organization gets the
required benefit that comes from human resources. These systems are explained in details in this
chapter. The first system is Human resources planning, followed by recruitment and selection.
However, for the purpose of this research Human resources planning and recruitment would be
our focus. Human Resource Planning is and remained one of the most important part of the
overall human resources system of the organization. The quality of this system decides the
overall human resources quality in the organization. It is very important to study and evaluate
human resources planning process in order to understand the overall status of human resources
system in an organization. This is a forward looking process which decides future requirement
and quality of manpower to achieve organizational goals.

2.2.1 FORECASTING HUMAN RESOURCES DEMAND

Armstrong (2012) defined forecasting human resources demand as the process of estimating the
future numbers of people required and the likely skills and competencies they will need. The
traditional approach of calculating demand is characterized by making use of ratios to devise
strategy in order to confront opportunities and threats from external environment (Pradeesh,
2011). A greater utilization of technology helps to analyze competitive forces that could reflect
an increase or reduction in employees’ levels. Forecasting human resources demand involves a
practical level determination size of personnel and type of workers that company will require in
the future. The demand for the organization’s product or service is integral part of the
optimization. Therefore, it is imperative to project beforehand markets and sales figures. This
will determine the personnel needed to serve the projected capacity. Noe (2012) mentioned other
factors that influence forecasting demand for personnel which include budget constraint,
turnover due to resignations, contract terminations, transfers and relocations, retirement, new
technology in the field, decisions to upgrade the quality of services provided and minority hiring
goals. Failure to anticipate future human resource needs leads to last minute decision making
which is not always advisable for managers in organizations. It is proper that managers take their
time to forecast future human resource needs which helps to save money and time in future. Noe
(2012) explained that when it comes to the human resource planning context, a mathematical
formula is used to project future demands of human resources based on an established
relationship between an organization’s employment level and some measurable factors of output
such as revenue, sales or production level. Estimating the Future Organizational Structure or
Forecasting the Human Resources Requirements, also implies that management must estimate
the structure of the organization at a given point in time. For this estimate, the number and type
of employees needed have to be determined. Many environmental factors affect this
determination. They include business forecasts, expansion and growth, design and structural
changes, management philosophy, Government policy, product and human skills mix, and
competition. Forecasting provides the basic premises on which the human resources planning is
built.

In determining the requirements of human resources, the expected losses which are likely to
occur through labour turnover—retirement, death, transfers, promotions, demotions, dismissals,
disability, resignations, lay-offs and other separations — should be taken into account.

It may be noted that for purposes of human resources planning, the main dimensions to be taken
into consideration are:

(i) The total number of personnel available, this could be obtained from the pay-rolls and other
personnel records, such as the applications for employment.
(ii) The job-family, i.e., a detailed job-description for each position.
(iii) Age distribution of the employees available in the present departments.
(iv) Qualification and experience desired, such as a person with 5 years or 10 years’ experience
in a particular branch/job.
(v) The salary range etc.
2.2.2 STRATEGIC ACTION

Strategic actions are human resource actions taken in order to enable an organization achieve its
goals. It is a disciplinary and creative process for determining where the organization should be
in the future and how to tackle the future with the help of human resource staffing activities
(Graf, Hemmasi & Strong, 1996). Strategic actions for human resource entails staffing activities
carried out in order to achieve organizational success in the long run. Strategic actions tend to
take an organization from where it is to where it wants to be. It is a series of action initiated to
form human resource strategy. Strategies which are used to meet human resource needs include
restructuring strategy, training and development strategy, recruitment strategy and outsourcing
strategy.

2.2.3 ISSUES OF HUMAN RESOURCES TRAINING AND DEVELOPMENT

Staff training and development come under the purview of personnel function in most
organization, whether public or private. The importance of staff training and development in any
organization is clear if we recognize the fact that the structure of any organization depends on
the individuals that make and operates the structure. Staff training and development can occur
simultaneously or complementary, but the two do not necessarily have direct relations to each
other.

Training on the Job and some form of in-service training are examples of training being designed
or intended to develop the knowledge or expertise, greater confidence and a higher degree of
performance. The principal intention of training according to Akpan (1982:128) is to equip
people with the knowledge required to qualify them for a particular position of employment or to
improve their skills and efficient in the position they already hold. Staff development, on the
hand, implies growth and the acquisition of wide experience for future strategies and advantage
of the organization. Mitchell (1979:119) also noted the popular convention to think of training as
dealing primarily with operative personnel and development, with managers and executives. He
went on to treat each of the concepts separately. However, he admits that “even though while
there are differences between the two processes, there is also considerable overlap” Ngu
(1990:25) opined that it is safer to argue in favor of this “Considerable overlap” because there is
very little to be said of their differences. To him (Ngu) “both Training and development are
purposefully geared towards improvement on skills and performance.

Both involve mounding or improving of worker’s characteristics toward achieving organization

objective. The differences between the two processes may be in content and method. So what is
training? Training is a systematic process of changing the behavior, knowledge and/or
motivation of present employees to improve the March between employee characteristics and
employment requirement (Milkovich et al 1988). Training at one extreme consists of a few hours
of induction by the supervisor, who gives the new employee a skeletal outline of company
policies and on the other extreme, it consists of several years of formal courses designed to
develop qualified specialist

(Strauss et al 1980) Ngu (1990: 25) defines training and development as “The process of
behavioral modification or molding of workers in order to integrate organizational needs with
their characteristics. Manpower training is viewed as a means of equipping employees with the
necessary skills and knowledge to enable them perform their job better and as a way of solving
employee problem of self-improvement, advancement and better placement. Training involves
formal and informal methods and both could be on or off the job training.

The efficient of any organization depends directly on how well its members are trained. Newly
hired employees usually need some training before they take up their work: Older employees
require training to keep alert to demands on their present Jobs and to prepare for transfer, and
promotion. Training also motivates employees to work harder. Employees who understand their
Jobs are likely to have morals, they are able to see a closer relationship between their effort and
performance. Effective managers recognize training as an ongoing continuous process not a one-
short activity; new problems, new procedures and equipment, new knowledge and new Jobs are
constantly creating the need for employee instruction.

Training and development is so important that it is not only imperative but continuous. No
organization can dispense with it as a programme and as a process (Ngu: 29) 1992; 2. Supporting
this view, Pigor and Myers (1981) admit that “no organization can choose whether or not train
employees.” All new employees, regardless of previous training, education, and experience need
to be introduced to their new employer’s work environment and to be taught how to perform
specific tasks. Training may be defined as an organized and coordinated development of
knowledge skills and attitudes needed by an individual to master a given situation or perform a
certain task within an organizational setting. Craig (1967) defines training as the development
process made possible through the device of words and signs. So training is the formal
procedures which an organization uses to facilitate employees learning of the organizations as
well as the individual’s goal and objectives. Staff development on the other hand, according to
Akpan (1982), is the process whereby an employee is enabled to grow in the job, through the
acquisition of work experience, breadth and increasing confidence resulting from the exercise of
varied and tested responsibilities. The aim is to enable him to reach the top or achieve his best in
his profession of employment. Such a position will be attained through action, observation, study
reflection, experiment and initiative (Onah:2003:127) As Cole (2002;29) puts it staff
development should be seen as any learning activity which is directed towards further needs
rather than present needs and which is concerned more with career growth than immediate
performance. The focus of staff development tends to be on the organization’s future staff
requirement and on the growth needs of individual in the work place.

2.2.4 OBJECTIVES OF PLANNING HUMAN RESOURCE NEEDS WITH

RESPECT TO HUMAN RESOURCES TRAINING/DEVELOPMENT

Training is a process that develops and improves skills related to performance. Training
objectives or needs can be derived from the manpower situation. The existing human resource
situation determines the training objectives both as organizational and national level. To be able
to identify training needs, therefore, we would like to take a comprehensive human resources
survey which is usually an aspect of human resource planning (Ngu 1990:27) Caldwell identify
four major training objectives, this includes the achievement of capable men and women
prepared through training to perform the tasks that the national welfare requires, mobilizing for
attach upon national problems thirdly a tool for enlarging human resources and productivity,
fourthly, the designing for constructive channeling of human resources. These training objectives
as identified by Caldwell are rather two broad with emphasis on national training policies and
objectives with no emphases on organization. The objectives of human resources training and
development can be summarized thus:
i. Improve efficiency, and morale
ii. Introduce new techniques
iii. Provide for succession, enables qualified replacement to be available
iv. Raise the standard of unskilled personnel, thus helping them overcome Labour shortage.
v. Develop supervisors and decrease the amount of supervision needed.

It is pertinent to note that most organization does not regard training as professional activities,
and in many cases training officers are not themselves trained. Many courses are held and
employees sent on courses or educating unskilled though without any serious though being given
to the real training needs of an organization. Effective training Programme, according to Blun
and Naylor (1976), can result in increased productivity, reduces Labor turnover and greater
employee satisfaction. They should include all employees from factory, workers to executives
and apply not only to inexperience workers but also to experienced workers new to the
enterprises. They also note that a training Programme should also include those that are
promoted to higher level jobs and the periodic retraining of present employees by means of
refresher course.

In this direction, McCormick and Tiffin (1977) categorizes training programmes in organizations
into three forms, namely orientation training, on-the-job-training, off-the-job training. Closely
related to the above, are the training needs of the staff in organization. McCornick and Tiffin
believe that training needs differ from group to group and as such adequate planning is required.
According to them, the training needs of people in organizations tend to fall into two groups
which more or less blend into each other. First, there is the need to provide specific Job training,
especially, for new employees and sometimes for present employees who are deficient in job
performance. Second, there is the need in most organizations to provide training of a personnel
development nature that will contribute to the longer –range effectiveness of the individuals in
question. Although personnel development training programmes have generally been limited to
executives and the managements class, the changing times emphasis the desirability, of such
training for other groups in order to combat the occupational obsolescence of professional and
scientific personnel. Tobias (1967) view the following as a balanced human resource
programme; Recruitment, Development, motivation, Education, training, utilization and
stabilization. To him, training programmes prepare the worker for efficient Labour force
participation with respect to giving occupation that comes as a result of coordinated human
resource planning . He concludes that training is endless so long as a man works, he learns and
teaches others at all levels Regarding management development, Ubeku (1975) observes that the
plan of management development should aim at

- Systematically transferring general management knowledge, policies and procedures for

managing the company to all managers.
- Appraising and maintaining all inventory of all candidates moved as qualified for replacements
for manager positions.
- Improving the present performance of all managers’ on-the-job development methods directed
at individual needs
- Broadening managers for higher responsibilities through outside and on-the-job programmes
activities and courses.

In general, Nigro and Nigro (1977) feel that the objective of an executive development
programme is to improve the executive and understanding of such areas as planning,
coordination, communication, decision-making, delegation, headquarters, field relations,
legislative relations, and public relations.

Writing on the training and development of the executives in developing countries, Mutahaba
(1986) opines, that it is no longer in dispute that training and development of public
administrators contribute to improve performance. This increasing acceptance of the importance
and significance of training in public administration is according to Stone and Stone (1978) and
Goshin (1979), indicated by the attention giving to it in many countries of the world.

According to Mutahaba (1986), there is recognition that training and development in developed
countries should include all categories of public service personal from the most senior to the
most junior and middle level public service personal. Senior and top executives have generally
been left out. This is particularly true in Africa, as participants in the tenth anniversary
conference of the African Association for public administration (AAPA) held in Lagos, Nigeria
in 1982 observed. A study focusing on Administrative training in Nigeria, Ghana and Seria lone
byMutahaba (1986) confirms the above observations. It shows that although the mandates of the
institute of public administration and management in the three countries provided for the holding
of training programmes for all levels of personnel, including top executives, attendance by top
executives appears to be a rare phenomenon.

Similar observations could be made with respect to situations obtainable in many other African
countries as Schaffer (1978) remarked. Available evidence would therefore tend to support, this
observation that top executives in African public services attendedexecutives’ development
courses. Without attributing the poor state of public administration to that factor alone, there
might be some validity in Tyagi’s (1975) observation that the poor countries its performance of
public administration in third world countries in a great measure, a function of the neglect of
training and development of personnel. In the same view Carmichael (1986) writing on civil
services training in Zambia concludes that improving the performance of civil servants though
training is important if the public sector is to play an effective role in achieving national
development in African. According to him, this is not uniquelyAfrican concern, but Civil Service
training in African countries has a reputation for poor organization and management. This need
for improvement in this area was recognized in the logos plan of action for creating self-reliant
economic and school development in Africa (1980). Most of the writers on this subject matter
have come out with the conclusions that the need for training and development cannot be
overemphasized, yet public organizations place it at bottom of their priorities.

Ubeku (1983) notes that employees who have not received adequate training before being
assigned responsibilities lack the necessary confidence with which to carry out their jobs. He
then suggested that an employee should be helped to grow into more responsibility by systematic
training and development so that he will be confidence enough to carry out the responsibility of
the job. This, according to him, is because training increases the employee’s belief that he knows
what is expected of him regarding the job, the knowledge of which enables him to originated
ideas as to how best to carry out this task of the job. Conversely, those not trained tend to cling to
methods they were shown the first time they took over the job and are frightened at doing the job
in a different way because something might go wrong and they cannot afford to take the risk.

Hilgert and Dowl (1978:81) in their book lifted cases and policies in Human Resources
management” look at the training and development of staff as not only capable of reducing
organizational/employee conflict but can also motivate staff in their work place. In their own
words, a well-conceived training and development program can contribute to a lessening or
reconciliation of conflict. Thus, a challenge and an opportunity is presented to even manager to
make each employee better able to serve the firm, while at the sometime realizing greater
satisfaction of individual needs and aspiration.

Furthermore, the authors observations that training is also related to employee motivation agrees
with French’s notion that employees who knows and understand their Jobs and who feel that for
future management values they are enough to prepare them for assignments are more likely to
demonstrate higher morale and greater interest in the Job.

French in 1988 describes the dynamism of motivating people through training programme in the
following words: In order to change behavior in the direction of greater contribution to the
attainment of organizational goals, the individual must perceive the new expected behavior
serving to fulfill needs at least, and not leading to deprivation of fulfillment. Supplementing
goals and needs that are within reasonable reach of employees is very important in providing
motivation as it relates to training and development. In other words, the environment must be
conducive to change in behavior. The implication of the training motivation correlation for
organizations sponsoring their employees on training programmes-is perhaps more critical for
the public service, particularly in developing countries where government is the largest employer
of Labour and the problems of motivating the workforce is rather daunting. The task of the
public services as an organization seeking to improve the performance of its workforce through
training is to guarantee an environment conducive for the trainee to return to or else beneficiaries
of employee –sponsored training programmes would not see training received as a motivator for
greater job performance. The point is all the more important given, the facts that the need for an
organization training its employees in the first place is to equip them with knowledge that would
enable them to contributes their quota to organizational growth and development. Since the final
learning in whatever sphere of organizational activities takes place on the job, it is crucial that all
external training is planned to helpthe trainees or employee meet the on-the job demands.

Thus, as soon as possible after the acquisition of the necessary or new knowledge, the employee
should have the opportunity to put the acquired knowledge to practical use. In the words of
French, to be effective, training and development must be perceived as leading the attainment of
needsatisfying goals as well as to the avoidance of ego-damaging events” Gibson (1972) has
given an elaborate definition of the desired goals sought by training as productivity maintenance
and productivity enhancement. In terms of productivity maintenance, he further asserted that,
and I quote: “Much of human resource training is a form of maintenance expense. New people
are constantly being lured and must be indoctrinated and trained. Experience productive
employees leave the company for many reasons, such as retirement and are replaced by those
who need training and experience. In term of productivity enhancement, he opined that some
training and development may be, or can be strategic in nature, that is designed to obtain fuller
utilization of human resources and thereby increase rather than merely maintaining productivity.

In his process system model of organization, French viewed the training and development
functions of organizations as a process which is a complex amalgamation of many sub-processes
aimed at increasing the capability of individuals to contribute to organizational goal attainments.

Thus, so far, all the literature review point of anything that is of importance to the manpower
training and development in an organization and the reason why these cannot be over looked or
jeopardized. The last area of the concepts of manpower training and development to be discussed
is training needs. Training needs are basically any short fall in employee performance or
potential performance which can be remedy by appropriate training (Cole, 2002). There are
many ways of overcoming deficiencies in human performance at work, and training is just one of
them. As lack of training is dysfunctional to organizational performance, adequate care should be
taken to recognize when training is needed.

According to Nwachukwu (1988: 121) occasions that employees in any organization require
training include the following; when there is lack of interests in one’s job, negative attitude to
work, low productivity, Tiredness, excessive absenteeism rate, excessive complaints, highly
rejects or low quality output, high incidence of accidents and insubordination. Whenever these
conditions are experienced among staff, Nwachukwu contends that the organization should
consider organizing training. As those situations are frequent occurrences in organizations, the
implication is that training has to be regular. Put precisely, training should be a continuous
exercise in a well-run establishment. Every time you get someone to do work the way you want
it done, you are training that person, every time you give instructions or discuss a procedure, you
are also training the person involved. It is along this principle that’s the Civil Services Reform in
Nigeria emphasizes that training of Civil Servants will no longer be sporadic, unstructured and
anomic. It stated further that training would henceforth be considered as a right of every civil
servant and an obligation on the government.

Once the symptomatic indicators of training needs here been observed the most next important
things to do is to determine which area training is needed. This step is important becomes
training could be a waste of time and resources if the area of emphasis in training is not precisely
isolated (Beach 1975; 375), (Nwachukwu, 1988: 123). Therefore, the need for training has to be
identified specifically before embarking on any training programmes. According to Beach (1975)
a rational way of identifying the area of training need is to analyze the entire organization
(people, Job, technology etc). Thus, troubled spots where training may help could be identified.
The analysis involves the following practical steps.

- Identify organizational and production problems i.e. low productivity, high cost, poor material
control, poor quality and excessive scrap and waste, excessive Labour management strife,
excessive grievance, excessive violation of rules of conduct and poor discipline, high employee
turnover, excessive absenteeism, and delayed production.
- Analyze Jobs and employees: Job analysis, employee appraisal and testing.
- Collect employee and managerial opinions through interviews and questionnaires to obtain
views regarding perceived problem areas and deficiencies which would indicate desirable
training programmes.
- Anticipate impending and future problems and expansion of business, new products, new
services, new designs, and new plants.

Now technology, organizational changes, staff inventory compare present staff resources with
forecast need

2.2.5 ORGANIZATIONAL PERFORMANCE

Performance has been the most important issue for profit and non-profit organization. Barney
(2001) asserts that researchers have different beliefs and thoughts about organizational
performance but it still remains a controversial issue. Performance means quality, condition or
function. Non-profit organizations view their performance in terms of how they meet their
missions and goals. Performance refers to the degree of achievement of the mission at work
place that builds up an employee job. Researchers mostly use performance to express the range
of measurements of transactional efficiency and input and output efficiency (Stannack, 1996).
Organizational performance involves a construct perspective in which the focus is on the
definition of the concept in terms of assessment and conceptualization (Goodman, Pennings &
Associates, 1977). Organizational performance is a general structure which refers to the
operations of enterprise. Daft (2000) states that organizational performances is an effective and
efficient manner for organization’s activity to achieve goals by using resources.

Chapter Three

3.RESEARCH METHODOLOGY

Introduction

This part of the study consists research design, population, sample size, and sampling techniques,
source of data, data collection tools and data analysis method that the study will be using.

3.1 Research Design of the study

The study adopted a case study research design by using quantitative methods to obtain the
resulting effects of Human Resource Planning on Organizational performance. In the course of
analyzing the problems, both primary and secondary data collection procedures were employed.
To achieve this goal, questionnaires and document reviews were the main tools. Here, analytical
research design was used to examine the resulting effect Human resource planning on
Organizational performance.
3.2 Population of the study

The target populations of the study were HR department employees of IRC seven field offices
and Addis main office which totals to 85 staff across all IRC office. The research will use the
most recent payroll list to the time the primary data will be collected in order to exactly know the
number of HR employees working there while the research will be conducted.

3.3 Sample size and Selection Technique

In all forms of research, it would be ideal to test the entire population, but in most cases, the

population is just too large that it is impossible to include every individual. This is the reason

why most researchers rely on sampling techniques like convenience sampling, the most common

of all sampling techniques.

The sample methods used include the systematic sampling and purposive sampling techniques.

The systematic random technique was used to determine and select respondents from the sample

frame for the study. The purposive sampling technique was also used to determine and select key

officials of the department with managerial responsibility for Human Resource Planning and

management in the Department.

3.4 Source and Methods of Data collection

Both primary as well as secondary data will be inputs for the research. The source of data mainly
will depend on the primary data source. Some secondary data will be collected from different
books and company’s manual in relevant to the topic being addressed. While the primary data
will be collected from the questionnaire distributed through mail.
3.5 Methods of Data Analysis

Data that will be collected from the respondent employees through questionnaires will be
analyzed and interpreted to arrive at meaningful result by demographic variable description,
reliability test, descriptive statistic, correlation analysis and multiple regression using SPSS.

3.6 Ethical Consideration

Respondents who will complete the questionnaire will be informed about the purpose of data
collection, analysis and the covenant to maintain privacy of their responses. Participants will be
informed about the purpose of the study and their privacy and dignity will be also maintained.
Confidential information of the organization will not be disclosed, and the collected data will be
used for the intended purpose of the study only. Regarding published and unpublished materials
used in the literature review and throughout the study, all citations from copy right holder will be
acknowledged.

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