HUMAN CAPITAL ADJUSTMENT AND ORGANIZATIONAL PERFORMANCE OF NIGERIAN BOTTLING COMPANY, PORT HARCOURT, RIVERS STATE

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Abstract

The study examines the relationship between human capital adjustment and organizational performance. The main aims of the study is to determined the relationship between scenario planning and organizational performance of Nigerian bottling company in Port Harcourt, to examine the relationship between demand forecasting and organizational performance of Nigerian bottling company in Port Harcourt and to examine the relationship between supply forecast and organizational performance of Nigerian bottling company in Port Harcourt. In this study, the survey research design was employed. The population is made up of 216 employees of Nigeria bottling company Port Harcourt, as follows: senior staffs = 113 and junior Staffs = 103. The Taro Yemen’s formula was used to determine the sample size of 140. A self-design questionnaire on human capital adjustment and organizational performance was used specifically for data collection. Data collection was done using a structured questionnaire. The method used to analyze the data was simple descriptive method stated in tables and expressed in percentage. The chi-square statistical test was employed this test was used. The SPSS version 22 was used to test the hypotheses. The study revealed that scenario planning, demand forecasting and supply forecasting associated with organizational performance of Nigerian bottling company in Port Harcourt. Based on the finding of the study, we recommended that the management of Nigeria bottling company should continue to ensure that the Human Resource policy, which is a result of the organization strategy to use human resource, among others, to achieve outstanding performance very year, is upheld and besides a   thorough knowledge of the position the organization is trying to fill, recruiters must be able to pinpoint sources of human resources.

Table of Contents

Title Page    i

Abstract      iii

Declaration iv

Certification         v

Dedication  vi

Acknowledgements        vii

Table of Contents viii

List of Tables       x

List of Figure        xi

CHAPTER ONE  1

INTRODUCTION         1

1.1   Background of the study 1

1.2   Statement of the Problem          4

1.3   Objectives of the Study   5

1.4   Research Questions         5

1.5   Research Hypotheses      6

1.6   Significance of the Study 6

1.7   Scope/Delimitation of Study     7

1.8   Definition of Terms         8

CHAPTER TWO 9

LITERATURE REVIEW        9

2.1 Conceptual Framework     9

2.2 Theoretical Framework     9

2.3 Review of Literature on Study Variable         13

2.4 Empirical Review    19

CHAPTER THREE       21

RESEARCH METHODOLOGY      21

3.1 Research Design      21

3.2 Population of the Study    22

3.3 Sample and Sampling Techniques        23

3.4 Questionnaire Design        24

3.5 Sources, Methods of Data Collection   24

3.6 Data Analytical Techniques        25

3.7 Reliability and Validity     26

CHAPTER FOUR         27

DATA PRESENTATION AND ANALYSIS       27

4.1 Data Collection and Presentation         27

4.2 Data Analysis 28

4.3 Hypotheses Testing 31

4.4 Discussion of Findings      34

CHAPTER FIVE 35

SUMMARY, CONCLUSION AND RECOMMENDATIONS         35

5.1     Summary    35

5.2     Conclusion 35

5.3     Recommendations         36

REFERENCES    37

Appendices I        41

Appendices II       42

List of Tables

Table 4.1: Questionnaire Administration and Retrieval 27

Table 4.2 Sex of Respondents 28

Table 4.4 Age of Respondents 28

Table 4.5 Academic Qualification     29

Table 4.6 Employee Designation      29

Table 4.7 Does scenario planning associated with organizational performance in some selected Commercial Bank in Port Harcourt? 30

Table 4.8 Does Demand forecasting associated with organizational performance in some selected Commercial Bank in Port Harcourt?      30

Table 4.9 Does supply forecast associated with organizational performance in some selected Commercial Bank in Port Harcourt? 31

Table 4.10 Does scenario planning and organizational performance?        31

Table 4.11 Test Statistics        32

Table 4.12  What is the relationship between demand forecasting and organizational resilience?          32

Table 4.13 Test Statistics        33

Table 4.14 What is the extent to which supply forecast and organizational resilience? 33

Table 4.15 Test Statistics        34

List of Figure

Fig. 2.1: A Conceptual Framework on Human Capital Planning and PerformancePerformance          9

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Existing literatures provide evidence that aspects of an individual’s human capital facilitate the recognition or development of Company Performance (Marvel and Lumpkin 2007; Shane 2000). Moreover, the human capital theory indicates that individuals with more or higher quality human capital will reap more desirable outcomes (Becker 1964).

In current global market, companies are composed by competitors, regardless of industry. To develop a competitive advantage, it is important that firms truly leverage on the workforce as a competitive weapon. A strategy for improving workforce productivity to drive higher value for the firms has become an important focus. Firms seek to optimize their workforce through comprehensive human capital development programmes not only to achieve business goals but most important is for a long term survival and sustainability. To accomplish this undertaking, firms will need to invest resources to ensure that employees have the knowledge, skills, and competencies they need to work effectively in a rapidly changing and complex environment.

In response to the changes, most firms have embraced the notion of human capital has a good competitive advantage that will enhance higher performance. Human capital development becomes a part of an overall effort to achieve cost-effective and firm performance. Hence, firms need to understand human capital that would enhance employee satisfaction and improve performance. Although there is a broad assumption that human capital has positive effects on firms’ performance, the notion of performance for human capital remains largely untested.

Human  capital  management  is  an  incorporated  push  to  oversee  and  create  human abilities  to accomplish altogether abnormal  state  of  performance.  Human capital management hones are set of practices that are sees individuals as resources whose present esteem can be estimated and whose future can be upgraded through venture. Gartner (2015) affirms that human capital is an arrangement of practices identified with individuals asset management, particularly in the classifications of workforce securing, management and advancement. Notwithstanding the customary authoritative undertakings, it incorporates   workforce   arranging   and   system, recruitment on boarding, employee training, revealing and investigation. Thus, it is the reason for working in an organization for ideal performance. Organization  is  a  composed  gathering  of  individuals  with  a  specific  reason.  Performance is characterized to incorporate the activity or procedure of playing out an errand or capacity found as far as how effectively it is performed. At the point when these definitions are assembled, thus organization performance identifies with how effectively a sorted out gathering of people with a specific reason plays out a capacity. Basically, this is the thing that an organization performance involves the genuine yield or consequences of an organization as estimated results. Organizational performance involves the real yield or aftereffects of an organization as estimated against its planned yields (or objectives and goals).  Richard  (2009)  opine that  organization performance envelops three particular   territories   of   firm   result which are  budgetary performance (benefits, return on resources, degree of profitability, and so forth, item advertise performance (deals, piece of the pie and so on) and investor return (add up to investor return, financial  esteem  included  and  so  forth).  Organizations, independent of their retailed industry, are continually presented to rivalries. To  guarantee  an  aggressive  edge, it is  fundamental  to depend  on  their  human  capital  as  a  clever  resource.  Planning  a  methodology  to  upgrade profitability to enhance piece of  the  pie  of  the  organization  is  a  basic  territory  of  concern (Marimuhu, Aokiasamy, 2009). The requirement for manufacturing organizations to build up their human asset ability to survive present  day  business  challenges  has  additionally  turned  out  to  be  principal.  The  expanding number  of  organizations investigating  human  asset  development  for  potential  outcomes  of building up those limits has strengthened the contention that human asset development ought to be viewed as an indispensable errand for present day manufacturing organization partnership towards  performance  upgrade.  The  cutting  edge  business  condition  has  turned  out  to  be unpredictable and the working scene is evolving along these lines, globalization, progression in innovation, headway in innovation (Benjamin, et al, 2012). Human  capital  is  one  of  the  imperative  prevailing  structures  in  the  field  of  scholarly  capital. Illustrious and O’Donnell (2017) declare that human plan of action capital is an extremely critical element of significant worth asset creation. It is the  measurement  of  scholarly  capital  which manages  the  human  information  and  its  experience. The employees offer organizations with experience and mastery, instructive capabilities and word related skills. Employee information and abilities are the huge underlying foundations of advancement Wang and Chang, (2015). In other to contend in the present aggressive condition organization need to enhance capability of their employees. Human assets   development   manages the arrangement of learning, development and training prospect keeping in mind the end goal to enhance viability of people, group and organization performance.  Human asset development satisfies the requirements of organization  by  giving  breakthrough  information to employees  (Torraco  and  Swanson,  2015). Alongside addressing organizational necessities, human  asset  development  is  considered  in charge  of  anticipating  of  the  long  haul  business  related  learning  limit  (Watkins,  2012),  the principle point of human asset development is to prepare the employees, build up their aptitudes in a way that assistance to accomplish most ideal outcomes. Human asset development clarifies the  competency  development  in  individuals  and  arrangement  of  conditions  (through  open approach,  software  engineers  and  different  mediations)  to  enable  individuals to  apply  these abilities for their own advantage for their organization (Zahid, Sacreta and Manisha, 2015).

1.2   STATEMENT OF THE PROBLEM

After an employee has been recruited and inducted, his skills must be updated and developed to better fit into the job and the organization. The need for training and developing the employee not only arises from the fact that he might not fit in the job, posses the necessary skill needed in the job, but have the effect of the dynamic nature of the society influenced by changes in the field of science and technology necessitated the continuous improvement of workers skill and the skill be expected to have in order better fit into the new job demands is bridged by human training many have over the years established good human training and development programme. In order to incite better employees performance at work and increased productivity always has not been easy to attain in organization because of the force that impede against the achievement of their objective. Some of the impeding forces include selection or recruitment problems, training procedure and inadequate facilities, government policy, the economy and labour legislation. The crucial problems this research will address include;

1.       The problem of inadequate scenario planning in Nigerian bottling company.

2.       The lack of functional demand forecasting.

3.       The underutilization of supply forecasting.

Critical analysis of these problems will be done with a view to determining their research and consequences on the corporation. The research will also make contribution on ways of redressing the problems.

1.3  Objectives of the Study

The purpose of this study is the main ascertain the relationship human capital planning and organizational performance of Nigerian bottling company in Port Harcourt. The following objectives are to be achieved according.

1.       To examine the relationship between scenario planning and organizational           performance of Nigerian bottling company in Port Harcourt.

2.       To examine the relationship between demand forecasting       and    organizational performance of Nigerian bottling company in Port Harcourt.

3.       To examine the relationship between supply forecast and organizational performance of Nigerian bottling company in Port Harcourt.

1.4     Research Questions

The following research questions are postulated to guide the study:

1.       To what extent does scenario planning associated with organizational      performance of Nigerian bottling company in Port Harcourt?

2.       To what extent does demand forecasting associated with organizational   performance of Nigerian bottling company in Port Harcourt?

3.       To what extent does supply forecast associated with organizational performance of Nigerian bottling company in Port Harcourt?

1.5  Research Hypotheses

The following hypotheses were formulated to guide the study:

HO1: There is no significant relationship between scenario planning and    organizational performance of Nigerian bottling company in Port Harcourt.

HO2: There is no significant relationship between demand forecasting      and organizational performance of Nigerian bottling company in Port Harcourt.

HO3: There is no significant relationship between supply forecast and    organizational performance of Nigerian bottling company in Port Harcourt.

1.6 Significance of the Study

Arguably, it is used to acknowledge that a study of this nature is not basically carries out for it purpose but as a result of some associated benefits it can help to offer generally, it will help employers to ascertain the need for carrying out effective human capital planning in the respective organization.

The study will also open up future vents for young practicing managers to enhance human capital adjustment as a strategic and administrative tool for organizational effectiveness and continue process for business survival most importantly, this study will also provide useful informant to other scholars in the academic field in topical area under investigation and finally, this study will also proved useful guide and information to other students that will carry out their studies in the future.

1.7 Scope/Delimitation of Study

The study is delimited under the following heading: content scope, geographical scope and unit of analysis.

Content Scope: The content scope of this study involves on investigation to ascertain the relationship between human capital planning and organizational performance. The dependent variable is organizational performance, measures by productivity market share effectiveness an organizing. While independent variable is Human capital planning measure by scenario planning, demand forecast, supply forecast and Training.

Geographical Scope: This study is delimited of Nigeria bottling company in Port Harcourt.

Unit of Analysis: The unit of analysis in this research is involves the individuals at the time of carrying out the study. The scope of this study is to ascertain the relationship between human capital planning and organizational performance. In the next segment Limitation of the study will discussed. In carrying out an investigation of this native the researcher must be faced the following constraint.

Firstly, the time constraint’s the time frame provision for this study was short.

Secondly, financial constraints. Usually, a study of this nature involved some level of expenditure therefore, finance was also a limiting factor.

Thirdly, poor response from the respondent and inability to access the entire population of the study.

1.8  Definition of Terms

DEMAND: This is the willingness of an organization to employ competent persons in the labour market.

FORECASTING: Is the process of using past and current information about phenomenon to predict future condition.

MANAGER: This person who plan organize, direct and control the rare resources of (Men, Money, Materials and Machines) in pursuit of the organizational goals.

MANPOWER: This is the number of workers available for industrial needs.

PLANNING: The process of setting goals and objectives and determining the process and strategies in achieving these goals.

PRODUCTIVITY: I the range at which a given company is able to cover with his product.

SUPPLY: it is the availability of competent person in the labour market.

TRAINING AND DEVELOPMENT: A process of acquiring knowledge for improvement.

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