CHAPTER ONE
INTRODUCTION
Background of the study
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''sresources in the most efficient way possible. These resources can includetangible resources such as goods and equipment, financial resources, and labor resources such as employees. Resourcemanagement 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
resources.
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 management.
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.
1.2 Statement of the problem
The challenge in most organizations has posed a threat on the
realization of its development and the achievement of its set
objectives. This is as a result of fundamental issues of inadequate and
improper acquisition, utilization and maintenance of resource.
The underutilization of Resources in Coca-Cola Company has
seriously led the organization into a mess because resource 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
organization.
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
lose 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 productivity.
1.3 Significance of the study
The significance of the study brings out the need for an
organization to constantly develop means of budgeting resources for
organizational development.
The importance aspect of the study includes the following:
- 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.
- 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.
- 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.
g. It also hopes that the study will assist future
researchers of resources management and how it can leads to
organizational development.
1.4 Objectives of the study
1. To determine if there is a significant relationship between effective resource budgeting and project management.
2. To ascertain if effective resource budgeting is a tool for project management.
1.5 Research questions
1. Is there a significant relationship between effective resource budgeting and project management?
2. Does effective resource budgeting serve as a tool for project management?
1.6 Research hypotheses
Ho: There is no significant relationship between effective resource budgeting and project management.
Hi: There is a significant relationship between effective resource budgeting and project management.
Ho: Effective resource budgeting is not a tool for project management.
Hi: Effective resource budgeting is a tool for project management.
1.7 Limitations of the study
The study was limited by two major factors; financial constraint
and time. Insufficient fund and time tends to impede the efficiency of
the researcher in sourcing for the relevant materials. Inaccessibility
to the management of Coca-Cola company was also a challenge in
theprocess of data collection.
1.8 Scope of the study
The study focuses on effective resource budgeting as a tool for
project management using Coca-Cola bottlingcompany as a case study.
1.9 Definition of terms
Effectiveness: This refers to the degree to which something is successful in producing a desired result
Resource:This is something that a country or an organization has and can use to increase its wealth.
Budgeting:This is an estimate, often itemized, of expected income and expense for a given period in the future.
Project Management:This is the application of processes, methods, knowledge, skills and experience to achieve the project objectives.