IMPACT OF MANPOWER DEVELOPMENT ON ORGANISATIONAL PERFORMANCE

Abstract

The study is based on questionnaire administered on employees of drink producing company in Nigeria. This study examines the impact of manpower development on organizational performance. The sample size for the study is made up of one hundred and eighty seven (187) respondents. Descriptive and inferential statistics method was used to present and analysed the data collected through questionnaire. In testing the formulated hypotheses for this study both regression and correlation analysis was used. The research findings results indicated that there is a positive relationship between Manpower Development and Organizational Performance. The study suggests the need for continuous training and development of employees with focus on the competition, market dynamics, customer satisfaction, business and financial performance.

Full text

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IMPACT OF MANPOWER DEVELOPMENT ON
ORGANISATIONAL PERFORMANCE
Oluwasegun Abraham SOLAJA
Federal University of Agriculture, Abeokuta, Ogun State, Nigeria
E-mail: oluwasegunsolaja@gmail.com
Modupe OLADIMEJI
Abstract: The study is based on questionnaire administered on employees of drink producing
company in Nigeria. This study examines the impact of manpower development on organizational
performance. The sample size for the study is made up of one hundred and eighty seven (187) respondents.
Descriptive and inferential statistics method was used to present and analysed the data collected through
questionnaire. In testing the formulated hypotheses for this study both regression and correlation analysis
was used. The research findings results indicated that there is a positive relationship between Manpower
Development and Organizational Performance. The study suggests the need for continuous training and
development of employees with focus on the competition, market dynamics, customer satisfaction, business
and financial performance.
Keywords: Manpower, Development, Performance, Training, Career.
JEL Classification: J24, M12, M53.
1. Introduction
The most effective strategy to improve manpower productivity is to devout
resources for its development. Manpower is an important asset organization can leverage
on for success and gain competitive edge in the turbulence environment in which the
organization operates. Human resources is a key player in actualization of organization
goals, it combine others resources together to achieve organizational set goals.
Development of the organizational manpower is a dynamic and evolving practice
used to enhance organizational performance. Manpower development focused on turning
out human resource that is needed for effective performance in the organization (Drucker,
1999). It focuses on equipping employees with new techniques that will enable them to
perform effectively and efficiently (Lawal, 2006).
Emeti (2011) believes that performance should be measured since it helps to
monitor employees and provide feedback information for management. Daleney and
Huselid (1996) were of the opinion that organizational performance has to do with quality
of service or product rendered, employees productivity and retention as well as the level at
which the organization satisfies its customers. Bontis, Dragonetti, Jacobsen and Roos
(1999) opined that, human resources of an organization have the capacity to bring
innovative and creative ideas to the organization which is capable of bringing long term
survival of the organization if well managed and motivated. Manpower is the basis of all
resources use, it is the indispensable means of converting other resources to man kind’s use
and benefits. So how well we employ and develop human resources skills is fundamental
in deciding how much will accomplish as a nation, man power is plot of every human
institution. The concept of manpower development emerged as a strategy to enhance the
capacity of available employees in organization in order to improve performance and
productivity.
Agwu and Ogiriki (2014) were of the opinion that manpower development is the
integrated use of training and development to improve effectiveness in organization.
Different studies have been carried out to consider the effect of manpower
development on organizational performance (Agwu and Ogiriki, 2014; Rizov and
Croucher, 2008; Shih, Chiang and Hsu, 2006; among others). Despite the establishment of
these scholars that manpower development leads to increase in productivity and
performance, managers still pay little or no attention to manpower development but focus

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more on other resource. This practice renders organizations in Nigeria ineffective.
Egwunyenga (2012), observed that lack of manpower development results into mal-
administration and underperformance of the employees. Based on these assertions, it
becomes pertinent to investigate the effect of manpower development.
Objectives of the study
a) To examine the effect career advancement has on organization performance.
b) To investigate the relationship between on- the- job training and
organization performance.
c) To determine the effect off- the- job training has on organization
performance.
Research Questions
This study answers the following research questions;
a) What effect do career advancement has no organization performance?
b) What is the relationship between on-the- job training and organization
performance?
c) Do off- the- job training has affect organization performance?
Research Hypotheses
a) H0: Career advancement has no effect on organization performance.
b) H0: There is no significant relationship between on- the- job training and
organization performance.
c) H0: Off- the- job training has no effect on organization performance.
2. Literature review. Theoretical Framework - Human Capital Theory
The study is based on Human Capital Theory. This theory was proposed by Schultz
in the year 1961.The theory argues that a person’s formal education determines his or her
earning power. Human capital theory holds that it is the key competences, skills,
knowledge and abilities of the workforce that contributes to organisations competitive
advantage. It focuses attention on resourcing, human resource development, and reward
strategies and practices. According to Human Capital Theory, education is an investment
because it is believed that it could potentially bestow private and social benefits. Human
capital theorists believe that is relationship between education and earning power, which
means, theoretically, that the more education one has, the more one can earn, and that the
skills, knowledge and abilities that education provides can be transferred into the work in
terms of productivity (Dae-bong, 2009).
Concept of Manpower Development
According to Schults (1993), definitions of manpower have shown some essential
elements in enhancing organisations resources and help employees to improve productive
of the business or organisation. In order to endure business effectiveness in organisations,
the manpower becomes an asset and instrument used to grow productivity. This implies
that manpower development could lead to better employees’ productivity and ultimately
improve organisation productivity. Rastogi (2002) stated that manpower is an important
resource for organisations especially for employees’ continuous improvement of
knowledge, skills and abilities. Armstrong (2004) posited that human resource
development is concerned with the provision of learning, development and training
opportunities in order to improve individual, team and organisational performance.
Training and Development
Training and development are complementary parts of the same process. They are
interlinked and interdependent, rather than sequential and hierarchical. Training and
development is very crucial to the employees, the organization and their effectiveness
(Devi and Shaik, 2012). Increasing job satisfaction and employee morality, enhancing the

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employee motivation, improving the efficiencies in processes and financial gain, raising
the ability to obtain and use new technologies, developing the innovation in strategies and
products and reducing employee turnover are other important benefits of training
(Mcnamara, 2010).
Career Advancement
Career advancement normally entails a clearly marked path of progression
through the ranks of an organisation. It is based on merit without regard for race,
gender, age or ethnicity .Deserving cases become eligible for advancement. Graham and
Bennet (1995) noted that the prospect of career advancement is capable enough to
motivates employees to give their best to the organization. Capelli and Hamori (2005)
point out lack of career advancement for any reason damages a manager’s chances of
making it to the top. Gill and Kustron (2011) defined career development as a career
planning in which there is a continuous process for individuals to develop his own
occupational concept that will enable them to reach the peak of their career. Career
advancement is the upward movement of employee in the organization.
Off-The-Job Training
Training which takes place in environment other than actual workplace is called
off-the job training. Off-the-job training is usually designed to meet the shared learning
needs of a group rather than a particular individual’s needs. Lectures, computer-based
training, games and simulations are the common forms of off-the-job training methods.
The purpose of this method of training at a place rather than the work area is to give a
peaceful domain to the employees where they can focus just on learning. Learning
materials is provided to the trainees, for a complete theoretical knowledge .Usually training
programs which are assigned by management, leads to greater employee motivation than
those where attendance is optional. Employees take only those trainings seriously, where
they are clear about the content, objectives and outcomes (Tai, 2004).
On-The-Job Training
The purpose of on-the-job training session is to provide employee with task-
specific knowledge and skills in work area. The purpose of this training is to make the
employees get familiar with the normal working environment that is during the training
time frame, the workers will get the direct involvement of using of machinery, equipment,
devices, material and so forth. The knowledge and skills presented during on-the-job are
directly related to job requirements, job instruction technique, job rotation, coaching and
apprenticeship training are the common forms of on-the job training methods.
MburuMaina and Waithaka (2017) opined that on the job training equips employees with
needed knowledge and skill to perform a specific task in the work area. Mentoring,
apprenticeship, case study among others are different forms of on the job training.
Tukunimulogo (2016) revealed that on the job training has the capacity to increase
employees’ performance. Ndunguru (2015) confirmed that on the job training has a
significant effect on employee performance.
Organisational Performance
Performance of organisation depends on the knowledge and ability of its employees
toward understanding the dynamism in the market. Brown (2008) defines performance as
how well a person completes tasks and also the attitude with which he/she completes the
tasks. Organization performance is an index that can be used to measure how healthy the
organization is. Mwita (2000) explains organizational performance as the ability of an
organization to achieve its set goals and objectives. Organization performance can be
measured in terms of sales growth, financial performance, market share, customer
satisfaction and retention.

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Manpower Development and Organizational Performance
Manpower development equips employees with the necessary skills needed to
perform effectively which translates to organizational effectiveness in the long run. Human
resources development and organization performance are highly important and
fundamental to good organization performance. Ogbu and Osanaiye (2017), in their study
revealed that manpower development have a strong impact on organizational performance.
Olusoji, Adedayo, and Godbless (2017) ascertain that manpower development helps in the
actualization of organizational goals. Aigbepue and Mammud (2012) suggested that
organizations should focus on manpower training to secure improvement in organizational
performance.
Conceptual Framework
Source: the researchers, 2019.
3. Materials and Methods
The present study was limited staff of a drinks producing company in Lagos State,
Nigeria. Primary data which was generated through self-administered questionnaires to the
respondents. Yaro Yamane formula was used to determine the sample size of 200 from
total population of 400 employees that work in the organization. Out of the 200
questionnaires that were administered, 187 were found useful for the study. SPSS package
was used to analyzed data generated; both descriptive and inferential statistical tools were
used in the analysis.
Results and Discussions
Respondents Demography
Table 1. Demography and socio Economic Characteristics of Respondents
Frequency
Percentage (%)
Sex
Male
114
61
Female
73
39
Total
187
100
Age
Below 20
35
18.7
20 – 30 Years
79
42.2
31 – 40 Years
58
31
CAREER ADVANCEMENT
OFF THE
JOB TRAINING
ON THE
JOB TRAINING
ORGANIZATIONAL
PERFORMANCE

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Above 40
15
8
Total
187
100
Marital Status
Single
88
47.1
Married
85
45.5
Other
14
7.5
Total
187
100
Educational Qualification
NCE
24
12.8
OND
38
20.3
HND
53
28.3
B.SC
64
34.2
Others
8
4.3
Total
197
100
Work Experience
Below a year
30
16
1 – 5 Years
84
44.9
1 – 10 Years
48
25.7
Above 10 Years
25
13.4
Total
197
100
Source: Field Survey, 2019.
The table above shows the socio economic characteristics of the respondents. 61%
of the respondents are male while 39% are female, which implies that male gender
dominates the workforce in the case organization. Meanwhile, 18.7 % are below 20 years
of age, 42.2% are between 20 and 30 years of age, 31% are between age 31 and 40 years of
age while 8% are above 40 years, this implies that majority of the employees are between
20 and 30 years of age. The table also shows that 47.1% of the respondents are single,
45.5% are married while 7.5% of them are either divorce or widow/widower. This implies
the workforce is dominated with single employees. Moreover, 12.8% of the respondents
are NCE certificate holders, 20.3% hold OND certificate, 28.3% hold HND certificate,
34.2% hold B.Sc. certificate while 4.3% hold other certificates, this implies that B.Sc.
holders dominates the workforce in the organization. Regarding years of work experience,
16% of the respondents have less than a year work experience in the organization, 44.9%
have between 1 and 5 years work experience, 25.7% have between 6 and 10 years of work
experience while 13.4% have work experience that is above 10 years. This implies that the
organization is dominated by employees who have spent between 1 and 5 years in the
organization.
Test of Hypotheses
Hypothesis 1
H0: Career advancement has no effect on organization performance.
Coefficientsa
Model
Unstandardized
Coefficients
Standardized
Coefficients
T
Sig.
B
Std. Error
Beta
1
(Constant)
26.327
1.663
15.831
.000
Career
Advancement
.564
.113
.344
4.980
.000
R = 0.344, R2 = 0 .118, Adj R2 = 0.113, F=24.801, Sig=0.000

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Linear Regression technique was used to explore the effect of career advancement
on organizational performance. From the table above, it can be seen that career
advancement has a strong effect on organizational performance with a Beta Coefficient of
0.344, which is statistically significant as indicated by the p- value of 0.000.
The R square gives a value of 11.8%. This implies that career advancement account
for 11.8% of the variation in the organization performance in the organization. The result
from the table has a significance level of 0.000 which is less than 0.05. Therefore, the
study rejects the null hypothesis and accepts the alternative hypothesis. Therefore, career
advancement has effect on organization performance.
Hypothesis 2
H0: There is no significant relationship between on- the- job training and
organization performance.
Correlations
On the job
training
Organizational
Performance
On the job training
Pearson
Correlation
1
.337**
Sig. (2-tailed)
.000
N
187
187
Organizational
Performance
Pearson
Correlation
.337**
1
Sig. (2-tailed)
.000
N
187
187
**. Correlation is significant at the 0.01 level (2-tailed).
The result of the analysis as represented in the table above shows that there is a
positive relationship between on-the-job training and organizational performance with r
value of 0.337 which is significant at P value less than 0.05. The study thereby rejects the
null and accepts the alternative hypothesis. Therefore, there is significant relationship
between on- the- job training and organization performance.
Hypothesis 3
H0: Off- the- job training has no effect on organization performance.
Coefficientsa
Unstandardized Coefficients
Standardized
Coefficients
T
Sig.
B
Std. Error
Beta
21.712
1.687
12.868
.000
.935
.121
.492
7.697
.000
R = 0.492, R2 = 0 .243, Adj R2 = 0.238, F=59.237, Sig=0.000
Linear Regression technique was used to explore the effect of off-the-job training
has on organizational performance. From the table above, it can be seen that off the job

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training has a strong effect on organizational performance with a Beta Coefficient of 0.492
and a statistical significance of 0.000.
The R square gives a value of 24.3%. This implies that off-the-job training account
for 24.3% of the variation in the organization performance in the organization. The result
from the table has a significance level of 0.000 which is less than 0.05. Therefore, the
study rejects the null hypothesis and accepts the alternative hypothesis. Therefore, off-the-
job training has effect on organization performance.
4. Conclusion and Recommendations
The result from the study shows that manpower development variables used in the
study has effect on organizational performance .Thus, judging from the findings of this
study, the ability of any organization to improve on its career advancement, off-the –job-
training and on-the –job-training will significantly improve organizational performance.
Based on the hypotheses that were tested in the study, the study concludes that
manpower development has positive impact on organizational performance.
From the findings and subsequent conclusion of the study, it is important that
organizations that wish to improve performance through manpower development should
channel their focus and strategies towards the following recommendation;
a) The firms must continually provide for improvement of employee career
through advancement and secure a link to business performance.
b) Provision should be make for adequate on-the-job- training. This has potentials
of contributing to the performance of the organization
c) Off-the- job-training should enhance in the organization in order to ensure a
befitting organisational performance.
d) Organizations should set aside, separate budget that will cater for manpower
development.
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