CHAPTER ONE: Introduction
Increasing competition is continually pushing businesses towards more
efficient processes, and slimmer margins. Highly capitalized industries
have to ensure that their resources are used most effectively. Yet at
the same time, businesses must adjust to rapidly changing customer
requirements and supply chain conditions. The key to achieving
operational excellence, therefore, is in the effective and flexible
management of resources, and this means optimizing and scheduling
people, processes, vehicles, equipment, and materials so that
utilization is maximized while business goals are met.
Rowden (1995) define resources management as the process of using a company's resources in the most efficient way possible. These resources can include tangible resources such as goods and equipment, financial resources, and labor resources such as employees. Resource management can include ideas such as making sure one has enough physical resources for one's business, but not an overabundance so that products won't get used, or making sure that people are assigned to tasks that will keep them busy and not have too much downtime.
The wealth of any organization is to a very great extent determined
by its human resources. The place and value of human effort as a
resource for any organizational productivity, efficiency and
effectiveness in operation cannot be over emphasized. This capacity
building developing and maintaining well trained, skilled experienced
and quality human resources that will carry out the various task of the
organization becomes an issue of importance.
One of the major constraints to organizational development is lack of
adequate and effective managed human resources. It was not surprising
therefore when the third national Development Plan of the Osuji 1975 –
1981 as aptly documented by Zahradeen (1980) echoed that successful
implementation of a development plan either at organizational level, or
national Level depends not only on the availability of financial and
other capital input, but more importantly on the adequacy of well
trained, and managed human resource in various occupation.
Ugbana (1986), most of the organizations both public and private are
beginning to realize the significance of material management. In most
organizational balance sheet, it would be seen that the materials
carries the lion share of the total expenditure representing about
seventy percent (70%) of the organizational resources while cash
represent twenty percent (20%) and other forms of the organizational
expenses carried ten (10%). But amazingly it is found that most
organizations takes good care of cash by providing it with high security
than materials irrespective of its highest share of organizational
This should not be so; materials which have the lion share of the
organizational resources should be provided with adequate security and
should be managed properly by competent and efficient personnel (Ammer
1996). At the wake of 20th century many organizations had recognized the
role of materials and most material activities were carried out by
autonomous department such as purchasing, warehousing, stock control,
and distribution which at the same time was creating problems.
In Nigeria there has been series of changes in the managerial
capabilities and operations towards financial management with the recent
years, the noticeable changes are complex. Eminent Nigerians of various
caliber have dealt with the failure trend to financial management of
enterprises in Nigeria from deferent perspectives, for example, the
banking industry has experienced problem of various types such as fraud,
mismanagement of funds which leads to poor overall performance. There
and other problems formed the basis for inadequacies in financial
Some analyst has classified these causes in a member of ways as
factors militating against proper financial management and progress in
privately owned enterprises in Nigeria.
As development proceeds and the structure and organization of the
economy become increasingly complex, the failure of financial management
assures increased complexity. As many factors have been identified it
will enable the researcher to ask how and why these causes have
surfaced. What are the conditions for proper financial management
It is against this background that the researcher investigates the role of resources management on organizational development.
1.0.1 Brief Historical Background of Power Holding Company of Nigeria (PHCN) Plc.
Electric Power Development in Nigeria started towards the closing
year of the last century when the first generation plant was installed
in the city of Lagos in 1898 from this date onwards and until 1950 the
pattern of electricity development was set up at various towns, some of
them by the Federal Government the Jurisdiction of the public works
department and some by the Native Authority and one or two large
Electricity Corporation of Nigeria 1950 in order to integrate power
development and make it effective the Government passed the Electricity
Corporations of Nigeria ordinance No. 15 of 1950. This ordinance
brought under one control, all the electricity undertakings which were
under the public departments and all those undertakings which were under
Native Authority or municipal ownership and control. The Electricity
Corporation of Nigeria, usually referred to as ECN, then became the
statutory body responsible for generation, transmission, and
distribution and sales of electricity to all consumers and customers in
Niger Dams Authority
The Niger Dams Authority was established by an Act of parliament in
1962. The Authority was responsible for the construction and maintenance
of Dams and other works on the River Niger and elsewhere generating
electricity by means of water power improving navigation and promoting
fisheries and irrigations construction of the Kainji Dam which began in
march 1964 was completed on schedule in Dec 1968.
Nigeria Electric Power Authority
In September 1969 the Federal military Government decide to merge the
Electricity corporation of Nigeria and the Niger Dams Authority into a
Single body. A year later a Canadian firm of consultants “Shawment
Lurruted” was appointed to look into the technical details of the
merger. The report was submitted on November, 1971 by Decree No. 24 of
27th June 1972 (which become effective from 1 April, 12972).
The Electricity Corporation of Nigeria (ECN) and Niger Dam Authority
(NDA) were merged to become the National Electric Power Authority
The actual merger did not take place until 6th January 1973 when a
General manager was appointed. The decree stipulates that the authority
is to develop an d maintain an efficient, coordinated and economical
system of electricity supply for all parts of the federation.
Prior to privatization programmes that was introduced during the
regime of former President Chief Olusegun Obsanjo the company was
privatized and subsequently, the named was changed to Power Holding
Company of Nigeria Plc.
1.0 STATEMENT OF THE PROBLEM
The challenge in most organizations has posed a threat on the
realization of its development and the achievement of it’s set
objectives. This is as a result of fundamental issues of inadequate and
improper acquisition, utilization and maintenance of its human resource.
The under utilization of human Resource in the PHCN has seriously
led the organization into a mess because human factor is not properly
managed. Mismanagement is another serious problem facing our
organization today and has reduced it to nothing as people are no longer
kin with their work nor ready to own up to vital Resources in the
Both public and private organizations are usually faced with problems
of managing their material resources effectively starting from the
point of procurement to stores, issuance to user departments and finally
the finished goods. These material resources are scarce and should be
utilized properly for proper assimilation.
The factors that contributed or that are responsible for the failure
of different companies have different problems. Financial resource
management is neglected and has made most organizations to loose a
substantial part of their fund through these enterprises because of
Fraudulent act, Indiscriminate financing, Poor management, Lack of
zealousness and experienced personnel and Inability to utilized its
financial potentials etc
The poor quality and low quantity of product have revealed that the
quality of Human and material resource put in place in organizations are
not up to expectations and has thereby reduced the company
1.3 OBJECTIVE OF THE STUDY
The objective of this study is to assess the role of Resources
management on organizational development. The specific objectives are:
1. To identify the need of developing employee programme in an organization.
2. To identify the impact of material resource management on organizational development.
3. To identify Identifying the causes of inadequacies in financial resource management
4. To identify and ascertain some of the problems poised by materials management in an organziation
5. To examine the problem of developing employee productivity for efficiency.
1.4 SIGNIFICANCE OF THE STUDY
The significance of the study brings out the need for an organization
to constantly develop means of managing resources for organizational
The importance aspect of the study includes the following:
a. It will assist managers to know the need for human
resource training and development and ensure that the right numbers of
skilled/trained manpower are available for employment at the right time
for all levels in the organization.
b. The study, will contribution positively at the
rate at which, how resource can be effectively utilized and how it can
bring about high productivity in the organization.
c. Students aspiring to be a material executive in
the future see this study as an opportunity to fully investigate into
the field of human, material and financial resource management to see
the challenges therein.
d. It also hopes that the study will assist future
researchers of resources management and how it can leads to
1.5 STATEMENT OF HYPOTHESIS
For the purpose of this study, the following hypothesis is formulated:-
Ho: Resource management does not play a significant role in organizational development.
Hi: Resource management plays a significant role in organizational development.
1.6 SCOPE AND LIMITATIONS OF THE STUDY
The study is to assess the role of resource management on
organizational development. The study will be restricted to Power
Holding Company of Nigeria plc. Man, material, money and machines
constitute the resources of an organization. This study will not cover
all the resources of PHCN and as such it will be limited to Human,
Material and financial resources.
Data were collected and used based on records gotten from the
organization and it only covered records on past years as relevant
information which were suppose to be gotten based on recent and current
events were not given due to problems arising in the organization in
form of break down in machineries, mismanagement, fraud etc.
Other materials are from text books, journals, periodicals, internet
browsing etc will serve as the secondary source of data for the research
The scope of the study has limited the research work and in any
research undertake it is usually associated with some constraints. Some
of the constraints of this research work include the following:
a. Financial constraint: this is considered to be the
first constraint faced by the researcher. This hindered students from
getting all the needed data for this research work. This really did not
help matters looking at the very fact that as a student, there is always
limited fund at ones disposal which formed part of those factors that
discouraged the researcher to go further than this. This extent in
getting all this needed data from this research work. A typical example
is the fund for going to different places to get information buying of
related literature text books that are not available in the school
b. Available data: in no small measure, incomplete
and inaccurate data also provide a lot of difficulty in carrying out
this research work. As a matter of fact it is because most of the senior
staff were either too busy running their official responsibility that
made them hardly available to give the researcher the needed time to
gather information or they were not just willing to do that, though some
did cooperate just like most senior staff.
c. Time constraint: this was the biggest constraint
faced by the researcher because combing rigorous drilling of the
institution i.e. lectures, assignments (both individual and group),
tests etc. and carrying out the research work made it virtually
impossible to dedicate all the time needed to carry out this research
1.7 DEFINITION OF TERMS
In order to avoid any form of ambiguity as regards to the terms used
in this research work, the following are given optional definition:
-Human Resource Planning (HRP): This is the process of getting the right number of qualified people into the right job at the right time.
Productivity: productivity is the measure of how
well resources are brought together in organizations and utilized for
accomplishing a set of results. Productivity is reaching the highest
level of performance with the least expenditure of resources.
Organization: this is the process of dividing work
into convenient tasks or duties or grouping such duties in the formal
posts delegation of authority to each post and approving qualified staff
to be responsible that the work is carried out as planned.
Motivation: motivation is the term used to describe
those processes both instructive and rational by which people seek to
satisfy the basic desires, perceived needs and personal goals which
trigger human behaviour.
Forecasting: is the process of estimating the future number of people required and the skills and competences they will need.
Material Management: This is defined as the grouping
under one head all or some of the activities involved in the
organization and use of materials employed from the need stage up to the
storage of finished goods.
Purchasing: Purchasing is defined as the activity
directed to securing by legal means, the materials suppliers and
equipment required in the operation of an enterprise.
Sourcing: This is referred to the investigation and evaluation of sources of supply and suppliers.
Negotiation: Is a process of planning, receiving and
analyzing used by both buyer and seller to arrive at an acceptable
agreement through common understanding.
Expediting: It is a process of ensuring that goods are promptly delivered to the right place and at the right time.
Purchasing Requisition: It is a form usually prepared when a department or stores need materials to be purchased.
Issue: Issue is the withdrawal of goods and handover of some of user backed with authorized documents.
Quality Control: Is a process whereby goods and services are examined to ensure that they conform to predetermined standards.
· Obsolescence: These are materials for which
there is no demand either because of the presence of a better
substitute or they are out of use or fashion.
Stocktaking: This is the complete process of verifying the quality balance of the entire stock hold in the store
Mission: a statement of an organization over riding
purpose or vision for the organization usually expressed in general
terms, but tends to suffuse the organization culture.
Objective: an objective is the end point of a management program wherever stated in general or specific terms.
Planning: can be defined as the act of setting and
selecting goals or objectives in relation to the strategies, policies
and procedures for achieving the goals and objectives.
Manpower Planning: is concerned with developing a
systematic procedure for achieving an organizations objective through
the acquisition, utilization, maintenance and development of the human
resource required presently and in the future.