THE IMPACT OF HUMAN CAPITAL DEVELOPMENT ON EMPLOYEES PERFORMANCE IN THE NIGERIA PUBLIC SECTOR: A CASE STUDY OF FEDERAL MINISTRY OF INTERIOR
The study titled “Impact of Human Capital Development on Employees Performance in Public Sector a case study of the Federal Ministry of Interior’’ is to identify some training and development programmes with a view to advice the Ministry on which one to adopt in accomplishing its objectives. Human Capital Development is pivot to personnel utilization, retention, motivation and productivity in organizations. Many employees in organizations have failed because their needs for development was not identified and provided for as an indispensable part of management function. The situation has now been made worse by, the problem of improper selection of resource persons; problem of transfer of learning, high cost of development programmes; vague objectives of development; improper planning; lack of positive reinforcement; and inability to evaluate development outcomes. In an effort to provide solution to these problems above, it was discovered that many organizations including the Federal Ministry of Interior have employees with ability and determination, matched with appropriate equipment and managerial support, yet productivity falls below the expected standard. This research project work, therefore, looks at the challenges facing pooling system and operational performance. To achieve the objective, the research adopts survey design and questionnaires were used as instrument for the collection of data from a population of 230 respondents. Only 100 questionnaires were returned out off the 230 questionnaires. Analysis was done using simple percentage methods of data analysis for the research questions, while the hypotheses were analyzed using the chi-square statistical analytical technique. The finding indicated that: human capital development can lead to increase performance in the Federal Ministry of Interior. The study recommends stronger leadership, institutions, and collective resolution to train, re-trains, retained, and developed it work force. The government must take proactive in area of development, growth, progress, decency, and stability in the civil service pooling system and operational policies.
TABLE OF CONTENTS
Table of content
List of figure
CHAPTER ONE: INTRODUCTION
1.1 Background to the study
1.2 Statement of Research Problem
1.3 Objectives of the study
1.4 Research Questions
1.5 Statement of Hypothesis
1.6 Significant of the study
1.7 Scope and Delimitation of the Study
1.8 Definition of Terms
CHAPTER TWO: LITERATURE REVIEW
2.2 Conceptual Clarification
2.3 Theoretical Framework
2.4 Literature on the Subject Matter
CHAPTER THREE: METHODOLOGY
3.1 Research Design of the Study
3.3 Sample size
3.4 Sampling Technique
3.6 Instrument Validation
3.7 Reliability of Research Instrument
3.8 Procedure of Data Collection
3.9 Method of Data Analysis
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.0 Data analysis, findings and discussion
4.1 Findings of the Study
4.2 Discussion of findings
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.4 Suggestion for further research
Appendix 1: Letter of introduction
Appendix II: Questionnaire
1.1 BACKGROUND OF THE STUDY
Human Capital Development is a pivot or personnel utilization, retention, motivation and productivity in organizations. Many employees in organizations have failed because of their needs for development was not identified and provided for, as an indispensable part of the management function. For employees to satisfy organizational goals irrespective of their qualification or experience, they need to be trained, retrained and developed within the context of the organization objectives.
Nwachukwu (1988) argued that in economic terms, human capital development contributes to the accumulation of effective and efficient human capital and its investment in the development of an economy. Countries such as Japan, Western Germany, Korea, Italy, etc, are known to have attained a high level of development despite the absence of mineral wealth of any significance. Thus the manpower development of any nation is intricate with her economic and social development.
One important reason for human capital development is that, the technologies and new work procedures emerge every day that calls for additional and improved skills of works and management. New employees, as well as older ones deployed to undertake new jobs often, require some development. Many organizations including the Federal Ministry of Interior believe that an employee who is well developed is capable of carrying out his functions competently, highly motivated with confidence and consequently more productive than an employee of equal physical ability.
Some organizations have staff with ability and determination, matured with appropriate equipment and managerial support, yet productivity falls below expected standard. It is against this background that this research was conceived using Federal Ministry of Interior in Nigeria to carry out a thorough research work on the impact of human capital development on performance in the Nigeria public sector.
The Federal Ministry of Interior in Nigeria (the focus of this research) was created by the control management ordinance of June 1958. The ordinance which came into operation on the 31st day of July, 1958, conferred on the Ministry the responsibility for the control and management of the public interior. The colonial period has passed through several phases and stages with each stage or phase leaving an indelible mark and legacy which have combined to make the Ministry the complex organization of seven functional departments today.
According to Deming (1988) Agencies of regulations must themselves be regulated. In other, word if the Federal Ministry of Interior is to perform its function satisfactorily as the controller and manager of the treasury department of the federation in this millennium, she should develop its workforce for the enormous challenges ahead.
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, human capital development is an important aspect of human resources management today. One important reason for human capital development is that new technologies and new work procedures emerge everyday that calls for the additional and improved skill of workers and management. New jobs often required some workers and development. Many organizations including the Federal Ministry of Interior believe that a trained employee is capable of carrying out his functions more competently, high motivated, committed and consequently more productive than an untrained employee of equal physical ability. An untrained employee is a threat to the organization. Some organizations in Nigeria have employees with ability and managerial support, yet productivity falls below expected standard. The missing link is inadequate development.
From the foregoing analysis, we are confronted with the following problems for investigation and subsequent remedies:
a. The problem of declining productivity or low quality output, which are acquired through the development of labour force.
b. High rate of labour turn over in organization which is caused by frustration or inability of the organization to motivate its labour force by means of training and development. As a result, a frustrated and unproductive employee hates his work and abandons it at the slightest provocation resulting from lack of training and development.
c. There is a problem of transfer of learning. Some of the concepts and principles taught in development programmes are too academic or explained in theoretical frame work and very difficult to apply in real life situation or at work.
d. In some staff development programmes, the consultants are not properly selected and do not adapt their lectures to suit specific organizational needs.
e. The objectives of some staff development programme are not clearly stated to participants. There is no mental preparedness. In this way, some employees see it as few days off duty that is meant for relaxation and consequently an instrument for promotion to the next grade levels.
f. There is a consequence of pooling system in which staffs that are trained in accounting procedure and treasury management are transferred to their ministry.
1.3 OBJECTIVES OF THE STUDY
The objective of this research is to study and recommend ways in which human capital development can lead to higher productivity in the Nigeria public sector in general and Federal Ministry of Interior in particular.
Therefore, the objectives which these embodiment of research record set to achieve be stated thus:
a. To study human capital development programmes available for staff in organizations and advise the Federal Ministry of Interior which wants to adopt and why.
b. To study the benefits of human capital development programmes in the Federal Ministry of Interior.
c. To identify the problem associated with human capital development programmes with a view to recommending remedies as an expert opinion.
d. To study effects of a pooling system involving the inter-ministerial transfer of professional accountants from the Federal Ministry of Interior with a view to make recommendations.
e. To identify the consequences of the inadequate human capital development of employees in organizations with a view to give expert advice.
f. To examine the various ways in which the staff development programmes can improve productivity in the Federal Ministry of Interior.
1.4 RESEARCH QUESTIONS
In this study, an attempt will be made to provide answers to the following questions.
1. Are their human capital development programmes available for staff of Federal Ministry of Interior to adopt?
2. What is the relationship between the human capital development and employees performance?
3. To what extent does the pooling system affect civil service operational performance in Nigeria?
4. What are the available measures provided by the government to enhance human capital development in Nigeria civil service?
1.5 STATEMENT OF HYPOTHESIS
Hypothesis refers to an assumed or conditional statement that has to be tested. The analysis is done in two ways – null hypothesis and alternative hypothesis. The null hypothesis is always stated in a negative form to show that there is no relationship between two variables. The alternative hypothesis is a statement made in a positive form to show that there is a relationship between two variables.
It can therefore be possible to formulate the following hypothesis which will be tested on its validity reliability in a later chapter.
i. Ho: Human capital development cannot lead to increase performance in the Federal Ministry of Interior.
H1 Human capital development can lead to increase performance in the Federal Ministry of Interior.
ii. Ho: There is no significance relationship between pooling system and operational performance in the Nigeria civil service.
H1: There is significance relationship between pooling system and operational performance in Nigeria Civil Service
1.6 SIGNIFICANCE OF THE STUDY
It is hoped that, this academic research will be of immense value and guide to the Federal Ministry of Interior as to which type of development programme to adopt; and how to impact it to accomplish the objectives of the ministry.
This embodiment of the research literature is a compendium of ideas, facts and figures for development consultants, resources person and management scholars as well research students who are in search of knowledge for achievement.
It is a hall mark of records and data bank for private business organizations and the entire organizations within the public sector in Nigeria.
It has provided a solution to the problems associated with training and development and indeed made recommendations on human capital development programme which will be of great benefit to organizations in and outside Nigeria.
It is an invaluable contribution to knowledge and scholarship for the general public and the world at large, who are interested in the impact of human capital development in enhancing productivity in the Federal Ministry of Interior in Nigeria.
1.7 SCOPE AND DELIMITATIONS OF THE STUDY
The extent of this research is focused on the Federal Ministry of Interior in Nigeria from July 1958 to December 2008. The year 1958 is very important to this research because this was the year the Federal Ministry of Interior in Nigeria was created by the control Management Ordinance of 1958.
Therefore, the period between 1958 and 2008 is not isolated period since the historical manifestation of the Nigeria Federal Ministry of Interior leading to its current growth and development is dynamic and a continuous process. The events of this period were connected with those of the period before it and after. In this way, this study where relevant will make reference to events before 1958 and after December 2008.
However, this research is limited by many factors. Among these factors is the substance of this academic research which is difficult one. In as much as it is difficult to get the data that are relevant to the topic of this research, it is indeed frustrating to note that human capital development in the Federal Ministry of Interior is one of the area which no serious academic research of this nature is written.
Lack of fund also limited the research work. The fund was necessary as transport fare to collect data, administer questionnaires and interview resource person.
The research is again faced with the problem of time factor. The research was given only few months to collect data and complete the dissertation which is grossly inadequate.
Equally important is the hostile attitude of staff in organizations where oral interview was conducted. They see the items of the oral interview as probing and as such, not ready to volunteer information for security reasons.
1.7 DEFINITION OF TERMS
This aspect of the study attempts to define the major operational terms as contained in the topic of this dissertation. These terms are:
Impact: Hornby (1975), define impact as “a strong effect or impression”.
The meaning of impact that is adopted here is the one given by Ewache (1998) thus: “impact is a positive impression or positive mark which makes a particular thing to have maximum advantage”.
Human Capital: Cole (1990) defined the phrase ‘human capital’ as a literate employee who has been given specific tasks to achieve within the frame work of organizational objectives”.
For the purpose of this dissertation “human capital is a skilled employee who is on establishment post and has been given adequate training and development to perform specific duties in a given organization” (Ngu, 1992).
Staff Development: Nwachukwu (1988), defined, staff development as “the activities undertaken to expose employee’s additional duties and assume the position of importance in the organizational hierarchy”. Staff development is educational process by which the top management and other employees in organization acquire conceptually, theoretical knowledge and skills for specific and general applications” (Ngu, 1992:28).
Public Sector: Child (1982) defined the phrase public sector’ as “part or branch of a particular area of activity which is owned by Federal State of Local Government or in which its agent have controlling interest or shares. Cole (1990), from its view of normative consideration as “government ministries, businesses, corporations or organizations which are created by a necessary legislation or establishment circular to provide services or product to the general population of people without discrimination in order to promote welfare, social, economic and political development.
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