Human Resource Development and Organizational Productivity of Oil and Gas Companies in Lagos State, Nigeria

Reference code: MG016

ABSTRACT

This research examined the relationship between human resource development and organizational productivity of Oil and Gas Companies in Lagos, Nigeria. Management development, manpower training and employee education were conceptualized and used as empirical referent of the predictor variable while cost reduction and production output were also employed as measures of the criterion variable. With respects to the conceptual and operational framework, the research answered six research questions and six hypotheses in order to ascertain the degree of positive linear correlation between human resource development and organizational productivity. The Resource Dependency Theory (RDT) was the sociological baseline theory used as the theoretical foundation for the study. Cross-sectional survey research design was used for the study. A total of sixty six (66) existing managerial employees were drawn from a population of eighty (80) existing managerial employees across the twenty (20) Oil and Gas Companies in Lagos, Nigeria using Krejcie & Morgan table for sample size determination. The researcher collected data on a macro level unit of analyses using a five point Likert Scale questionnaire tattled: “Questionnaire on Human Resource Development and Organizational Productivity of Oil and Gas Companies in Lagos, Nigeria (QHRDOP)” based on simple random sampling technique. The Questionnaire was validated via face validity, content validity, pilot test (pre-test) and construct validity while Cronbach Alpha was used to test for reliability of the research instrument. The data collected was analyzed at different levels. For primary level data, descriptive analytical tools were used and for secondary level data, inferential statistical tool [i.e. Pearson Product Moment Correlation Coefficient (PPMCC) was used. These analyses were carried out using a computer software package called statistical package for social sciences (SPSS) version 20.0. The result of the findings revealed that management development, manpower training and employee education brings about cost reduction and production output respectively. Based on empirical findings, the researcher then concluded that human resource development influences organizational productivity. The researcher then recommend that: Oil and gas companies in Nigeria should motivate management development of the employee to ensure organizational productivity; Oil and gas companies in Nigeria should encourage manpower training to realize organizational productivity and Oil and gas companies in Nigeria should promote employee education since it was seen to influence organizational productivity.

INTRODUCTION

The current recession in Nigeria economy is changing business dynamics and operational models. Human Resource development is a component of the management function of planning, organizing, directing and controlling in every organization. It is one of the human resource management functions that are aimed at maximizing the return on investment of stakeholders in an organization. It is the combination of training and education that ensures a continuous improvement and growth of both individual employees and organizations (Abdullah, 2000). It is a framework for the expansion of human capital in an organization for better employee performance and increased organizational productivity (Balasuriya, 2004).

The influence of human resource development strategies cannot be overemphasized in the oil and gas industry. This made the replacement of the term “training cost” with “investment in human capital”. The strategies include performance appraisal, human resource planning, career planning, potential appraisal, training, skill audit, executive training, on-the-job training, human resource information system, career development and strategic human resource development strategies (Barney, 2001).

Empirical findings revealed that how well an organization implements its policies and programmes and accomplishes its strategic intents in terms of mission and vision is a linear function of its human resources development (Abdulkadir, 2009). Human resource extracts, collects, and transforms natural resources into usable goods. Development in human resource can lead to organization effectiveness, efficiency, innovation, quality and economic of scale of employee and the firm. Lack of adequate and well planned human resource development strategies of the right type and right quality, in the right time and space can affect employee performance negatively as well as the productive capacity of the firm.

It has been acknowledged also that improvement in productivity through Human Resource Development has become more imperative for man power obsolescence, changing work environment and competitive advantage. The human capital theory recognized the importance of training on the level of employee productivity. The resource-based theory assumed differences in physical, organizational and human resources between firms causes fundamental heterogeneity in their production potential while the behavioral perspective assumed influence of personnel practice as tools for shaping patterns of behaviour that help to achieve organizational goals and objectives (Armstrong, 2009).

1.2 Statement of the Problem
Productivity is the input-output relationship. Employee input is the function of knowledge and skills acquired in the various Human resources Development strategies. Recognizing this fact, the Nigerian government in partnership with the private sector and the industrial sector has established employee training institutions and programs for better performance in the Oil and Gas industry. For instance, upgrading the Petroleum Training Institute (PTI) in Warri into a full study university; establishment of the Petroleum Trust Fund (PTF) with the objective of developing indigenous manpower in the Nigerian oil and gas industry.

The Nigerian oil and gas industry has various human resource development strategies. For instance, the Nigerian National Petroleum Corporation (NNPC) has a well planned Human Resource Management Department with training policies such as executive training, corporate training mission, corporate training philosophy, group learning department, strategic business unit learning sections, educational financial assistance, technical financial assistance and oversea related courses. The extent to which these policies and development, strategies have affected employee and the organizational productivity remain a matter of research interest.

Despite the growing research on organizational performance, no research work has focused on the influence of human resource development strategies on the productivity of the oil and gas industry in Nigeria. Existing studies focused on Human resource management, Human Resource Development which focuses on the manufacturing and banking sector (Guest, 2001) & (Legge, 2005). The extent to which this human resource development strategies influence organizational productivity has not been captured. Related studies on this work were on strategic human resource management on small and medium scale enterprises (Ogundele, 2007). From the above, this study intends to examine empirically the influence of human resource development on organizational productivity of oil and gas companies in Lagos, Nigerian.

TABLE OF CONTENT

Chapter 1: Introduction
1.1 Background of the Study 1
1.2 Statement of the Problem 2
1.3 Purpose and Objectives of the Study 3
1.4 Study Variables and Conceptual Framework 4
1.5 Research Questions 6
1.6 Research Hypotheses 7
1.7 Significance of Study 7
1.8 Scope of the Study 8
1.9 Limitation of the Study 8
1.10 Operational Definition of Terms 8

Chapter 2: Review of Related Literature
2.1 Theoretical Foundation 10
2.1.1 Resource Dependency Theory 10
2.2 Concept of Human Resource Development  11
2.2.1 Quantitative and Qualitative Human
Resource Development Strategies 13
2.2.2 Importance of Quantitative and
Qualitative Strategy 14
2.2.3 Approaches to Human Resource Development 14
2.2.3.1 Spatial and Temporal Approach 15
2.2.3.2 Age Composition Approach 16
2.2.3.3 Gender Approach 18
2.2.3.4 Social Group Approach 20
2.2.3.5 Occupational Approach 20
2.2.3.6 Composite Score Approach 21
2.3 Dimensions of Human Resource Development 22
2.3.1 Management Development  22
2.3.2 Manpower Training 24
2.3.3 Employee Education 25
2.4 Concept of Organizational Productivity 26
2.4.1 Causes of Low Productivity 26
2.4.2 High Productivity 27
2.4.3 Factor Affecting Productivity 28
2.5 Measures of Organizational Productivity 29
2.5.1 Cost Reduction 29
2.5.1.1 Inventory Management 30
2.5.1.2 Target Costing 31
2.5.1.3 Value Analysis and Value Engineering 31
2.5.1.4 Quality Control 31
2.5.1.5 Kaizen Costing 31
2.5.2 Production Output 33
2.6 Connection between Human Resource
Development and Organizational Productivity  35
2.7 Operational Framework 42

Chapter 3: Research Methodology 
3.1 Research Design 43
3.2 Population of the Study 43
3.3 Sample Size and Sample Technique 44
3.4 Method of Data Collection 45
3.5 Validity Test 47
3.6 Reliability Test 47
3.7 Method of Data Analyses 48

Chapter 4: Data Presentation, Analysis and Discussion of Findings
4.1 Presentation of Questionnaire Distribution 50
4.2 Demographic Analyses 50
4.3 Univariate Data Analyses 57
4.4 Ascertaining the Existence of a Positive Relationship between Human Resource
Development and Organizational Productivity using the Scatter Graph. 64
4.5 Bivariate Data Analyses  66
4.5.1 Test of Research Hypothesis One 66
4.5.2 Test of Research Hypothesis Two 67
4.5.3 Test of Research Hypothesis Three 68
4.5.4 Test of Research Hypothesis Four 69
4.5.5 Test of Research Hypothesis Five 70
4.5.6 Test of Research Hypothesis Six 71
4.6 Discussion of Findings 71

Chapter 5: Summary, Conclusion and Recommendations
5.1 Summary 74
5.2 Conclusion 74
5.3 Recommendations 75
5.4 Contribution to Knowledge 76
References 77
Appendix A


Reference code: MG016
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Reference code: MG016

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