EFFECTIVE HUMAN RESOURCE PLANNING AND EMPLOYEE S PERFORMANCE IN THE OIL AND GAS INDUSTRY IN NIGERIA

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1 EFFECTIVE HUMAN RESOURCE PLANNING AND EMPLOYEE S PERFORMANCE IN THE OIL AND GAS INDUSTRY IN NIGERIA Bashiru Akande Bello and Halimat Damilola Kashaam Department of Business Administration, Bells University of Technology, Ota, Nigeria and Ologbenla Patrick Federal Inland Revenue Service, Headquarters, Abuja Nigeria beebello2000@yahoo.com Abstract This study investigated human resource planning and employee s performance in the oil and gas industry in Nigeria. A well structured research questionnaire was used as an instrument to gather information from the respondents. The simple random sampling technique was used to collect information from 259 respondents. The study recommended that the human resource department should develop and implement a comprehensive career development training programme for the staff. The human resource department should be structured to take its rightful place in the scheme of affairs, so that they can educate the staff more on their practices and how they plan for the human resource practices like recruitment, welfare, appraisal among others. Keywords: Human resources, manpower planning, recruitment, appraisal Introduction Human resource planning involves forecasting the organization's future human resource needs and planning for how those needs will be met. Human resource planning includes establishing objectives and then developing and implementing programs (staffing, appraising, compensating, and training) to ensure that people are available with the appropriate characteristics and skills when and where the organization needs them. Human resource planning also involves developing and implementing programs to improve employee performance or to increase employee satisfaction and involvement in order to boost organizational performance, quality, and innovation (Mills, 2013). Effective human resource planning (HRP) is a mechanism for building long-term capacity to meet these workforce challenges (Choudhury, 2007). The purpose of HRP is to forecast organizational needs for employees taking into account the internal and external supply of labour to meet staffing requirements; that is, identifying the gap between what is needed and what is available (Santos, Zhang, Gonzalez and Byde, 2009). HRP not only addresses employee supply-demand needs, but is also a critical component of an organization s integrated strategy. Finally, human resource planning includes gathering data that can be used to evaluate the effectiveness of ongoing programs and inform planners when revisions in their forecasts and programs are needed. As we move through the 21st century where a globalized workforce is the basis of competition we find that the principles of human resource planning are of prime importance. The success of a business or an organization is directly linked to the performance of those who work for that business. Under achievement can be a result of workplace failure because hiring the wrong people or failing to anticipate fluctuations in hiring needs can be costly, it is important that conscious efforts are put into human resource planning (Biles, 2010). Due to the rapid globalization of production and markets world-wide, oil and gas companies are faced with a changing competitive environment. They are competing in creating the conditions that will enable them to be competitive in both domestic and international markets. Accordingly, oil and gas companies seek to adopt and implement a set of strategic management practices that have been successful elsewhere and that will help them to respond proactively through improvements in major performance indices (Awolusi and Akinruwa, 2014). One of such strategic management practices is human resource planning, which has received great attention in the last two decades (Budhwar, 2000). Concept of human resource planning Planning provides a direction, reduces uncertainty and minimizes waste. No activity can be done without planning. Human resource planning has to do with the determining human resource requirements, selection and socialization. Human resource planning is also 151

2 called manpower planning, employment plans, and personnel plan. According to Terry and Michael (2010), human resource planning includes the estimation of how many qualified people are necessary to carry out the assigned activities, and what, if anything, must be done to ensure that personnel supply equals personnel demand at the appropriate point in the future. Human resource planning is the strategy for the acquisition, utilization, improvement, and preservation of an enterprise s human resources. It relates to establishing job specifications or the quantitative requirement of jobs determining the number of personnel required and developing source of manpower (Stainer, 2012). But like human resource management it has attracted criticisms from some quarters. The first criticism was on its interpretation, by Hansen and Brooks (2004) who claimed that human resource planning could be problematic particularly if an international perspective is taken because its interpretation and roles tend to vary from one country to another. Another criticism which is more acceptable is that of Jones and Mann (2002) who commented that there was a strong insistence that Human resource planning is not the same as training. Other debates include its role in promoting performance or learning. The debate maintained that it was difficult to make a clear statement about what should be included in human resource planning. Despite these criticisms, the professionals still went ahead to give human resource planning a place in human resource management. Wilson (2000) stated that Human Resource is diverse in its activities of which Human Resource Planning is one of such parts that ensures the adequate development of employees within an organization. Hence, while defining human resource planning, Armstrong (2009) defined human resource planning as a part of human resource management concerned with the provision of learning, development and training opportunities in order to improve individual, team and organizational performance. Armstrong went further to say that the overall aim of human resource planning is to see that the organization has the quality of people it needs to attain the goals for improved performance and growth. Chalofsky (2002) defines human resource planning as the study and practice of increasing the learning capacity of individuals, groups, collectives, and organizations through the planning and application of learning-base interventions for the purpose of optimizing human and organizational growth and effectiveness. Gomez et al (2005) defines it as essentially a strategic process which is concerned with meeting both business and individual needs. In their opinion, it is the field concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational settings. Weber (2008), not only view the organization by the quality of people but sees human resource planning as an effort to provide employees with the abilities the organization will need in the future. He differentiated training from planning by defining training as the process of providing employees with specific skills or helping them to correct deficiencies in their performance. Human resources planning from a business perspective are not entirely focused on the individual s growth and development, planning occurs to enhance the organization's value, not solely for individual improvement. Individual education and development is a tool and a means to an end, not the end goal itself (Elwood & james, 2006). Methodology The data collected were sorted, processed and analysed by using descriptive and inferential statistics. The analysis was in accordance with research objectives and hypotheses. The descriptive analysis defined the properties of the data to show the variations in responses and opinions using frequencies, percentage denotations as well as other descriptive tools such as means and standard deviations. The inferential analysis was done with the use of regression and correlation analysis in Statistical Package for Social Sciences (SPSS) to test the impact of the predictor variables on the dependent variables as well as relationships where applicable. Data analysis Presented here are details of the analysis and presentation of the data based on the specific objectives and research questions of the study. The respondents were employees of Total Nigeria Plc in Lagos state Nigeria; a total of 262 questionnaires were distributed, out of which 259 were successfully completed and returned. This represents a response rate of 98.8%. Data were analysed through descriptive and inferential statistics. Statistical Package for Social Science (SPSS) was used to analyse the data. 152

3 Table 1: Analysis of respondents composition by sex Sex Frequency Male % Female Total % Table 1 above shows that 111 respondents representing 42.9% were male while 148 respondents representing 57.1% were female. Table 2: Demographic Characteristics of Respondents marital status Marital status Frequency Single % Married % Others 0 0.0% Total % Table 2 above shows that 97 respondents representing 37.5% were single while 162 respondents representing 62.5% were married. Table 3: Demographic Characteristics of Respondents nature of employment Nature of employment Frequency Contract staff % Permanent staff % Total % Table 3 above indicates that 113 respondents representing 43.6% were contract staff while 146 respondents representing 56.4% were permanent staff. 153

4 Analysis of responses In this section data for this study were analyzed based on the objectives, research questions and hypothesis that relate to each other. The results of the data analysis provided information that formed the basis for discussion, conclusion, and interpretation of the findings and recommendations of the study. In order to answer the research questions, the data collected were categorized into agreed and disagreed. This was done in order to allow for good analysis of items, better judgement and conclusions. All computations were based on the five points scale. Table 4: We plan our Human Resources requirement well in advance Human resources planning Frequency y Valid Strongly Agree % Agree % Undecided % Disagree 7 2.7% Table 4 shows that 146 respondents representing 56.4% that strongly agreed that they plan their Human Resources requirement well in advance, 86 respondents representing 33.2% agreed, 18 respondents representing 6.9% were undecided, 7 respondents representing 2.7% disagreed while 2 respondents representing 0.8% strongly disagreed. Table 5: Our HR planning system is able to provide manpower as per business needs Human resources planning Frequency Valid Strongly Agree % Agree % Undecided % Disagree 7 2.7% Table 5 shows that 140 respondents representing 54.1% strongly agreed that their HR planning system is able to provide manpower as per business needs, 89 respondents representing 34.4% agreed, 21 respondents representing 8.1% were undecided, 7 respondents representing 2.7% disagreed while 2 respondents representing 0.4% strongly disagreed. Table 6: Human Resources Planning is considered as an important system in our organization Human resources planning Frequency Valid Strongly Agree % Agree % Undecided % Disagree % Table 6 shows that 123 respondents representing 47.5% strongly agreed that Human Resources Planning is considered as an important system in their organization, 82 respondents representing 31.7% agreed, 28 respondents representing 10.8% were undecided, 24 respondents representing 9.3% disagreed while 2 respondents representing 0.8% strongly disagreed. 154

5 Table 7: Our recruitment system is properly documented and followed Recruitment Frequency Valid Strongly Agree % Agree % Undecided % Disagree % Strongly Disagree 3 1.2% Table 7 shows that 160 respondents representing 61.8% that strongly agreed that their recruitment system is properly documented and followed, 52 respondents representing 20.1% agreed, 23 respondents representing 8.9% were undecided, 21 respondents representing 8.1% disagreed while 3 respondents representing 1.2% strongly disagreed. Table 8: Our recruitment system has a definite budget Recruitment Frequency Valid Strongly Agree % Agree % Undecided % Disagree % Strongly Disagree 0 0.0% 0.0 Table 8 shows that 182 respondents representing 70.3% strongly agreed that their recruitment system has a definite budget, 49 respondents representing 18.9 agreed, 17 respondents representing 6.6% were undecided while 11 respondents representing 4.2% disagreed. Table 9: When an employee does good work, his/her supervising officer takes special care to appreciate it. Innovation Frequency Valid Strongly Agree % Agree % Undecided 0 0.0% Disagree % Strongly Disagree 0 0.0% 0.0 Table 9 indicates that 197 respondents representing 76.1% strongly agreed that when an employee does good work, his/her supervising officer took special care to appreciate it, 52 respondents representing 20.1% agreed while 10 respondents representing 3.9% disagreed. 155

6 Table 10: The benefits we receive in our organization are similar to what most of the other organizations in the industry provide to their employees. Incentives Frequency Valid Strongly Agree % Agree % Undecided % Disagree % Table 10 above shows that 161 respondents representing 62.2% strongly agreed that the benefits they receive in their organization are similar to what most of the other organizations in the industry provide to their employees, 54 respondents representing 20.8% agreed, 19 respondents representing 7.3% were undecided, 23 respondents representing 8.9% disagreed while 2 respondents representing 0.8% strongly disagreed. Table 11: Rewards and incentives are fairly distributed in our organization. Incentives Frequency Valid Strongly Agree % Agree % Undecided % Disagree % The above table shows that 172 respondents representing 66.4% strongly agreed that rewards and incentives are fairly distributed in their organization, 47 respondents representing 18.1% agreed, 17 respondents representing 6.6% were undecided, 21 respondents representing 8.1% disagreed while 2 respondents representing 0.8% strongly disagreed. Table 12: Regression Results for Innovations and Employee Performance Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate a a. Predictors: (Constant), INNOVATION ANOVA a Model Sum of Squares df Mean Square F Sig. 1 Regression b Residual Total a. Dependent Variable: EMPER b. Predictors: (Constant), INNOVATION Coefficients a Model Unstandardized Coefficients Standardized Coefficients T Sig. B Std. Error Beta 1 (Constant) INNOVATION

7 a. Dependent Variable: EMPER Table 12 presents result of regression analysis of effect of Innovations on Employee Performance. The results revealed that Innovations has positive and significant relationship on Employee Performance of Total Nig Plc in Lagos state [β =.824t = , p =.000]. Furthermore, the regression results in Table 12 shows that the relationship between innovations and employee performance was positive and significant [R =.876, F(1/149) = , p < 0.05]. With R 2 =.767, the model implies that about 76.7% variation in Employee Performance is explained by variations in Innovations. This relatively strong association is attributed to the fact that innovativeness yielded equivalent results in terms of Employee Performance. It is therefore concluded that innovativeness have significant effect on employee performance. Conclusion Recruitment of candidates is the function preceding the selection, which helps create a pool of prospective employees for the organization so that management can select the right candidate for the right job. The main objective of the recruitment process is to expedite the selection process. Therefore, organizations use these practices to increase the likelihood of hiring individuals who have the right skills and abilities to be successful in the performance of their job which will enhance the development and growth of an organisation. Also, better recruitment and selection strategies result in improved organizational outcomes. Innovation becomes more interactive with more attention for incremental changes and knowledge creation. The advantage of this change is a better understanding of the selection mechanisms in innovations. The higher level of innovation is related to employee performance which emphasizes on development and participative decision making. Similarly, the ability of a firm to recognize the value of new idea or information and implement it commercially depends on organizational learning capability. Outside sources of knowledge are often critical sources of information for innovation and organizational learning. References Armstrong, M., (2009).A handbook of human resource management practice. 10th ed. Great Britain: Cambridge University. Awolusi, B. And Akinruwa, R.A (2014).A methodology for the development of a human resource strategy, Sloan School of Management. Biles, George, E.,& Holmberg, Stevan, R. (2010).Strategic human resource planning, Glenn Ridge, New Jersey: Thomas Horton and Daughters. Budhwar, P. (2000). Strategic human resource management, Dryden Press, Florida, USA. Chalofsky, A.O (2002). Culture and Organisations: software of the mind, London, Harper Collins Business. Choudhury, A.S (2007). Employee retention strategy, how to attract and retain top performers, Sada NY, Blue Boulder Internet Publishing. Elwood, G.,& James, E. (2006). Productivity gains from the implementation of employee training Programs. Industrial relations. 33(4), Gomez, W.,&Grundy, A. (2005). How are corporate strategy and human resources strategy linked? Journal of General Management, 23 (3), Spring. Hansen, C. D., & Brooks, A.K. (2004).A review of cross-cultural research on human resource development.london Barners and Noble. Jones, M.,& Mann, P. (2002).International perspectives on development and learning, West Hartford, Kumarian Press. Mills, D. (2013).Implementing strategy with the balanced scorecard: An introduction to the strategy-focused organization, DM Review. Santos, A., Zhang, A., Gonzalez, M. &Byde, A. (2009).Workforce Planning and Scheduling for the HP IT Services Business. Paper presented at the Multidisciplinary International conference on Scheduling: Theory and Application. August 2009, Dublin, Ireland.Sloan School of Management. Stainer, G.T. (2012).Introduction: frompersonnel management to human resource management, A critical Text, Thomson Learning. London. Terry, O. and Michael C.A. (2010).On the link between human capital and firm performance; A theoretical and empirical survey.fep Working Paper no. 121, November p Weber, M. (2008).Strategic human resource planning in academia.american Journal of Business Education, 2(7), 1-9. Wilson, M. C Human resource systems and sustained competitive advantage: A competency-based perspective. Academy of Management Review, 19: