1
CHAPTER ONE
INTRODUCTION
1.0 Background of the Study
Human resource planning is one of the growing areas of academic research. Organizations regard
its human resource as their core competency because it would lead towards better organizational
performance.
Human resource planning was introduced because at previous times there was no suitable system
of managing people within the organization and certainly while following the human resource
management, top managers realized that the efficiency of work has increased and certainly there
were some techniques and processes developed which can increase the organizational
performance, then gradually the whole layout of human resource management was made and it
was concerning the staffing needs, its demand and supply. The ultimate aim is to achieve economic
advancement through the provision of relevant education and hence the production of the right
combination of human resources (Ololube, 2009).
Human resources planning is the strategic planning process at the level of the senior management.
The human resources planning is a process of guiding activities related to the human resources
management (Mursi, 2003).
Human resource planning is indeed concerned with broader issues about the employment of people
than the traditional quantitative approaches of manpower planning. Such approaches, as Liff
(2000) comments, derive from a rational top-down view of planning in which well tested
quantitative techniques are applied to long term assessments of supply and demand. She notes
2
“there has been a shift from reconciling numbers of employees available with predictable stable
jobs, towards a greater concern with skills, their development and deployment”.
The purpose of strategic human resource management is to improve business performance through
people management. Organizations need to manage their human resources effectively and
efficiently to achieve the desired goals and objectives (Cania, 2014).
Huselid (1995) argued that the HR practices had a significant impact both economically and
statistically on the intermediate results of both productivity as well as turnover.
According to Michael (2006) has shown that “the human resource takes place within the context
of the organization. Organizations nowadays are looking forward to have a competitive advantage
against the threats present in globalization. Due to the high competency requirements, most
organization aim to generate the kind of performance that can bring more profit. In order to do
that, the employees are required to perform well and improve.
Once a business entity has analyzed its mission, identified all its stakeholders, and defined its
goals, it needs a way to measure progress toward those goals (Kaplan & Norton, 1996).
Campbell’s (1999) theory defines performance as behavior or action relevant to the attainment of
an organization’s goals that can be scaled, that is, measured.
According to Gopikrishna (2011), also highlighted the significance of human resource planning
process by mentioning that objectives of the organization are achieved when planning is done
properly.
Most organizations will employ effective human resource plan in other to improve business
performance through people management. These organizations must manage their human
resources efficiently in other to meet their expectations. The strategic role of human resource
planning not only assists the organization in short period but also in many times to come. Thus it
3
is being seen that those organization which consider human resource planning as the significant
and essential part of their human resource management, this could turn out to be very helpful in
terms of dealing with its human capital which could possibly make the organization to standout of
the competition prevailing in the market.
Planning is the process managers use to identify and select appropriate goals and courses of action
of an organization. They resultant plans that come out of planning process details the goals of the
organization and specifies how they are intended to be attained. Like people, organizations can not
have it all done, so in a scale of preference, they need to determine their pro-rates and concentrate
their time, energy, and other resource to release their aims (Stewart, 1994).
Planning is an element of management which can be defined in a variety of ways. According to
Adesina (1990), planning is a method of deciding what we want to accomplish. It is essentially
concerned with concepts of the future, and problems requiring imagination, choice, design and
deliberate fore thought. Planning, from the above analysis, can be described as an economic
activity directed at the management of time and essential resources with the aim of achieving an
identified set of objectives. The success or failure of a plan is therefore measured against the time
frame within which the plan is set and the resources made available for the implementation of the
plan. Planning is therefore a managerial process directed at the optimal utilization of time and
resources in the attainment of a set of clearly identified goals. It is an important process in
economic development. Planning bridges the gap from where we are to where we want to be.
Organization According to Stewart (1994) “organizations are set up to achieve purposes that
individuals to achieve on their own organization they provide a means of working with others to
achieve goal. Individuals in organization, depend on each other’s effort through interactions and
which enable them work to words the realization of common goal.
4
Performance has been the most important issue for profit and non-profit organization. According
to Barney (2001) asserts that researchers have different beliefs and thoughts about organizational
performance but it still remains a controversial issue. Performance means quality, condition or
function. Non-profit organizations view their performance in terms of how they meet their
missions and goals. According to Daft (2000), states that organizational performance is an
effective and efficient manner for organization’s activity to achieve goals by using resources.
1.1 Problem Statement
The idea behind the assumption that human resource planning significantly contributes to
organizational results is that the human resource practices affects the employees in a positive
matter, e.g. by increasing job satisfaction and motivation, which in turn affects the operational
results, such as the quantity and quality of the products and services, which again will have positive
effect on the financial and market performance of a company, like return on assets, revenue, and
market share (Paauwe and Richardson, 1997) .
Effective planning can be hampered by a lack of commitment, the confusion of planning studies
with plans, a tendency to under-estimate the importance of planning premises, failure to see the
scope of planning, excessive reliance on experience, lack of control and insufficient information
(Koontz et al, 1980).
These and other inhibiting factors including the politicization of manpower planning efforts and
the dearth of professionally trained manpower planners have been identified as major challenges
in the achievement of effectiveness planning (Agabi, 1999). Insufficient and unreliable
demographic data and poor funding also constitute major hindrances (Nelson-Twakor, 2005).
5
The issue of Human Resource Planning raises series of questions. For instance, how effective is
Human Resource Planning policies and practices in an organisation? How do they address human
capital challenges that hamper the execution of service delivery initiatives and interventions at an
organisaton? When organisations embark on proper and effective human resource planning, it
helps organisations to gain corporate control over operating units, and coordinating and integrating
organizations decision making and actions.
Due to lack of human resource planning in most organisation. If not, what else can explain the
sharp increase in workers strength as soon as any new chief executive emerges. For instance, in
departmental organizations like ministries, four directors are found in one obscure room doing
nothing and other junior workers are satisfied to find a place under the mango trees located around
the premises (Onah, 2008).
But the antecedents of human resource planning have not been studied as frequent as the outcomes
of human resource planning. Therefore the study aims to make a contribution to the existing
literature by examining the effect of human resource planning on organization.
1.2 Purpose of the Study
The main purpose of the study is to find out the effect of human resource planning on organization
1.3 Objectives of the Study
The general objectives of this study is to examine the significance effect of human resource
planning on organization using metro mass transit as a case study. The research will address these
specific objectives.
• To identify how metro mass transit manage their human resources.
6
• To evaluate the challenges Metro Mass Transit encounter in managing their human
resources.
• To examine how Metro Mass Transit help deal with these challenges.
1.4 Research Questions
In order to be within the limits of the research the following questions will guide the researcher to
obtain answers to the research problem:
• What strategies do Metro Mass Transit use in managing their human resources?
• Does Metro Mass Transit encounter challenges in managing their human resources?
• How does Metro Mass Transit deal with these human resource challenges they encounter?
1.5 Significance of the Study
The study will help organization managers in properly performing important human resource
functions such as true and timely information being provided about when to do recruitment of
employees. This timely process saves extra cost of company. The study will help human resources
managers in using the salaried staff in the organization effectively and salutary for the
organization’s benefits. It will also help human resource managers in recruiting skilled personal
for the job. It will also help contribute to the body of knowledge on effective human resource
planning by organisations in Ghana.
7
1.6 Scope of the Study
This study will focus on the public sector in general with a focal point on the Metro Mass Transit
in Kaneshie Pramprom, Accra Ghana. This is where the organization under study is located and
also the main location for accessing the respondents for the study.
1.7 Limitations of the Study
Despite the numerous advantages derived from undertaken this project, there will be some
limitations which includes the following:
Due to time constraints the researcher will not be able to gather a lot of information from
respondent because of the sample size chosen as well as focusing on one organization. The
researcher as a student will also be facing an issue of financial constraints and combining of her
regular studies leading to the inability to gather all questionnaires which will be sent out. In spite
of all these problems the research will encounter, the limitations will not be enough to affect the
outcome of the study.
1.8 Organizations of the Study
The study is organized and arranged into five chapters and the content of each chapter is outlined
below;
Chapter one outlines the background to the study, problem statements, purpose of the study
objectives and research questions of the study, the limitations and organization of the study.
Chapter two is devoted to the review of related literature on human resource planning on
organization.
8
Chapter three will present the methodology to be used for data collection, the compliance
assessment tool, the determination of sample size and administration of questionnaires.
Chapter four would highlight on the data analysis and discussion of findings, and chapter five will
outline the summary of major findings which would be followed by the conclusions and
recommendations.
9
CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter reviews the literatures relating to effect of human resource planning on organisation.
It is very difficult to develop a common specification on human resource planning. It's also
important to appreciate the orientation taken by researchers towards human resource planning in
their effort to enhance productivity or performance of employees. The main purpose of the study
is to investigate Human Resources Planning (HRP) on organization. The scope of this literature
review is expanded to include other related topic relevant in addressing the study. A well-
established organisation takes time and plan for their human resource. Human Resource Planning
(HRP) is one of the essential aspects of business planning which is geared towards the goals of the
organization or business.
2.1 Theoretical and Empirical Evidence on Human Resource
There have been a number of concerns and views which have been put forward by various scholars
and administrative practitioners on Human Resource. Among the reasons assigned by such
concerns is the effect of human resource planning on organizationis.
Quanah(2013), revealed that Human Resource are improperly planned; implemented and managed
by non-HR experts and that the practices, programmes and policies of organisations are lowly
perceived by their employees. For the purpose of the current study a number of theoretical
arguments have been developed or reviewed and integrated into the current study.
Study by Akhigbe (2013), was of the view that organizations being institutions are established to
accomplish specified goals. To achieve these goals, the human resource planning is seen as one of
10
the most crucial factors, without which the goals are as good as dead. The study recommended that
HRP should be a priority in every organization, since it has impact on organizational performance.
Adding to the array of concepts and theories is the term Human Resource which was originated by
Schultz (1961). Human Resource is the stock of competencies, knowledge, experience, social and
personal attributes including creativity and innovation, embodied in the ability to perform work so
as to produce economic value. Dess & Picken, (1999) assert human capital is generally understood
to consist of the individual’s capabilities, knowledge, skills and experience of the company’s
employees and managers, as they are relevant to the task at hand, as well as the capacity to add to
this reservoir of knowledge, skills and experience through individual learning. This theory is
concerned with how people contribute their knowledge, skills and abilities to enhancing
organisational capability and the significance of that contribution. This is rather broader in scope
than human resources.
2.1.1 Empirical Evidence
In Sang‟s (2005) study involving 160 respondents of two manufacturing firms in Cambodia and
Taiwan, it was asserted that a positive relationship exists between Human Resource Management
practices; human resource planning, staffing, incentives, appraisal, training, teamwork, employee
participation, status difference, and employment security on firm performance in areas of quality,
cost, and production flexibility.
According to Wang (2005) innovative firms treat HRM practices as the organisation’s strategy to
encourage team responsibilities, enhance organisational culture, and build up customer
relationships through participation and empowerment.
11
Richard and Johnson (2001) using a sample of banks examined the impact of strategic HRM
effectiveness on a number of performance variables. They found that the effectiveness of strategic
HRM is directly related to employee turnover and the relationship between this measure and the
return on equity was stronger among banks with higher capital intensity.
Guthrie (2012) examining the impact of HR practices on turnover and firm productivity among a
sample of firms in New Zealand noted that HR practices had an impact on turnover and that the
relationship between retention and productivity was positive when firms implemented high-
involvement HR practices, but negative when they did not. Strengthening the evidence of a
positive relationship between HRM practices and organisational performance is the research of
Ahmad and Schroeder (2003) which concluded that, there is a positive influence of Human
Resource Management practices (information sharing, extensive training, selective hiring,
compensation and incentives, status differences, employment security and decentralisation and use
of teams) on organisational performance as operational performance (quality, cost reduction,
flexibility and commitment). There has been the research into particular HRM practices out of the
bundle that contribute significantly to organisational performance.
Paauwe, J. and Boselie (2005), analysed 104 articles and established that the top four mostly
investigated human resource management practices that have a positive impact on organisational
performance are recruitment and selection, training and development, contingency and reward and
performance management.
Boxall (1998), suggests that in order for firms to generate human capital advantage, they should
recruit and retain exceptional individuals. Technology and capital can be acquired any time for a
price by most firms but it is not easy to acquire highly qualified and motivated employees.
Companies need to be careful when selecting employees.
12
Cole (2004), argued that, human resources are the most dynamic resource of all the resources at
the disposal of the organization and thus, the human resource needs to be given considerable
attention from managements to enable this resource realize their full potential in their work. For
this reason managements must address motivation, leadership, communication, work
restructuring, payment systems and training and development.
According to Osei (2017), effective Human Resources Management (HRM) practices within the
Small Medium Enterprise (SME) sector of Ghana may contribute to accelerating the growth of the
sector and the economy of Ghana at large.
Resource base view theory refers to how competitive advantage can be achieved through the
possession of valuable and rare resources that other competitors cannot imitate (Takeuchi, Lapak,
Wang & Takeuchi, 2007).
Finally, human resource planning includes gathering data that can be used to evaluate the
effectiveness of ongoing programmes and inform planners when revisions in their forecasts and
programmes are needed. Proper HR planning facilitates human resource utilization system that
affords human resource more effective equal employment opportunity planning, a better chance to
participate in planning their own careers and to share in training and development experiences.
2.2 Objectives of Human Resource Planning
The objectives of human resource planning in every organization are ensuring the optimum use of
human resources currently employed and providing for future human resources need as regards
skills, numbers and ages. This entails ensuring that the organization at all times has the right
number of personnel, with the right level of skills in the right jobs at the right time and that these
13
personnel are performing the right activities for the attainment of organizational objectives
(Ubeku, 1983).
However, the central objective of human resource planning in organization is to construct a
strategy of human resources development consistent with the organization’s broader aims of
economic development. As a plan, human resource planning seeks to define the ends and means
to achieving the overall organizational goal which include the following:
Attracting the number of people required with the appropriate skills, expertise and competencies
deficit in people. Development in a well-trained and flexible workforce, thus contributing to the
organization’s ability to adapt to an uncertain and changing environment. Reducing dependence
on external recruitment when key skills are in short supply by formulating relation, as well as
employee development strategies. Improving the utilization of people by introducing more flexible
system of work (Armstrong, 2004). Manpower planning establishes standard and control for
human resource management and this makes adaptation to future rational. Anticipating the
problems of potential surpluses or deficits of people (Ikeanyibe, 2009).
2.3 Process of Human Resource Planning
Human resource planning process deals with the activities involve in it. The Structure and
explanation below gives an overview of what goes into the planning process
14
Figure 2.1
Source: Armstrong (2008)
According to Hendry (1995), the process of HRP may be circular rather than linear, with the
process starting anywhere in the cycle. For instance, scenario planning may impact on resourcing
strategy, which in turn, may influence the business strategy. Alternatively, the starting point could
be demand and supply forecasts which form the basis for the resourcing strategy. The analysis of
labour turn over may feed into the supply forecast, but it could also lead directly to the development
of retention plans. There cannot be a well-articulated business plan as a basis for the HR plans.
The business strategy may be evolutionary rather than deliberate. It may be in parts intuitive and
incremental. Resourcing decisions may be based on scenarios riddled with assumptions that may
or may not be correct and cannot be tested. Resourcing strategy may be equally vague or based on
unproven beliefs about the future. It may contain statements about for example building the skills
base, that are little more than rhetoric. There is a systematic approach to developing, resourcing
strategy, scenario planning, demand and supply forecasting and labour turnover analysis. The
degree to which HRP can be carried out systematically will depend on the nature of the
Business Strategic Plan
Resource Strategy
Labour turnover Analysis Demand/supply
forecasting Scenario Planning
Operational effectiveness Work Environment Analysis
Human Resource
Plans
Work
Environment
Resourcing Productivity Flexibility Retention
15
organization. If the future is fairly predictable then formal planning might be appropriate. If it is
not so, the approach to human resource planning might have to rely on broad scenarios rather than
precise forecasts. The processes of Human resource planning (HRP) can be listed out as mentioned
here under.
a. Business Strategic Plans: These plans define future activity levels and initiatives
demanding new skills.
b. Resourcing Strategy: It gives a planning to achieve competitive advantage by developing
intellectual capital i.e. Employing more capable people than rivals, ensuring that they develop
organization specific knowledge and skills and taking steps to become employee of choice.
c. Scenario Planning: It assesses in broad terms where the organization is going in its
environment and the implications for human resource requirements.
d. Demand Supply Forecasting: It helps in estimating the future demand for people of both
quality and quantity and assessing the number of people likely to be available from within and
outside the organization.
e. Labour Turnover Analysis: It deals with analyzing actual labour turnover figures and
trends as an input to supply forecasts.
f. Work Environment Analysis: It seeks to analyze the environment in which people work
in terms of the scope that it provides for them to use and develop their skills and achieve job
satisfaction.
g. Operational Effectiveness Analysis: It analyses productivity, the utilization of people and
the scope for increasing flexibility to respond to new and changing demands.
16
2.3.1 The Need for Human Resource Planning and Development
Generally, human resources refer to people, humanity, and society with all its aspirations, needs
and capacities. As an economic resource, manpower is a representation of the aggregate skills and
attitudes resulting from the culmination of education and training. Such training is usually
designed to equip a labour force with the capacity to plan, organize and carry out economic process
when properly allocated. It is from this economic perspective that Gbosi (2003) describes
manpower as the bulk of human beings with relevant skills, energies, talents, knowledge and
attitudes that can be put to the production of goods and services. Here human beings are not
described as manpower or human resources except in that they can be put to some economic use
as a resource that in turn can be used for wealth generation or for the facilitation of increases in
wealth. The need for manpower planning is clearly expressed in the following excerpt from
Psacharopoulos and Woodhall (1985): Skilled manpower is one of the most crucial inputs of
modern economy growth (and to avoid critical shortages or surpluses of manpower). Planners have
sought to identify future requirements for skilled manpower and to design the education system so
as to produce a labour force with the necessary skill and technical or professional knowledge.
It is clear that every plan is directed at achieving specific objectives. Human resource planning
helps to eliminate or minimize problems of human resource wastage that arise from
unemployment, over-employment and under- employment, as the case may be. The central
objective of human resource planning is to construct a strategy of human resource development
that is consistent with a country’s broader objectives of social, political and economic
development. Human resource planning at the very least includes planning of the formal education
system, planning of in-service training and planning of adult education. This should also include
an analysis of the structure of incentives and the utilization of human resources as well as surveys
17
on unemployment and under-employment and the development of appropriate measures for their
alleviation.
According to Khadka (2009) human resource planning must be linked to the overall strategy of
the organization. It evaluates human resource requirements in advance keeping the organizational
objectives, operation schedules, and demand fluctuation in the background. Thus, human resource
planning should be future–oriented, system–oriented, and goal directed. According to him it
reduces uncertainty, develops human resource, improves labour relations, utilizes human resource
and controls human resource. Forecasting human resource requirements, effective management of
change, realizing organizational goals, promoting employees and effective utilization of human
resource are the main objectives of human resource planning.
2.4 Resource Strategy
According to Keep (1989) the objective of HRM resourcing strategy is to obtain the right basic
material in the form of a work force endowed with the appropriate qualities, skills, knowledge and
potential for future training. The selection and recruitment of workers best suited to meeting the
needs of the organization ought to form a core activity upon which most other HRM policies geared
towards development and motivation could be built. The strategic capability of an organization
depends on its resource capability in the form of people. This concept provides the rationale for
resourcing strategy. The aim of this strategy is, therefore, to ensure that an organization achieves
competitive advantage by employing more capable people than its rivals. These people will have
a wider and deeper range of skills and they behave in ways that maximize their contribution. The
organization attracts such people by being the employee of choice. It retains them by providing
better opportunities and rewards than others. It also develops a positive psychological contract
18
which increases commitment and creates mutual trust. Besides, the organization deploys its people
in ways that maximize the added value that they supply. The resourcing strategy determines.
a) The number of people needed in each of the key operational or functional areas in the short
term and long term.
b) The type of skills needed in the future.
c) The way to meet the needs from the existing resources.
d) The Place to find them.
e) The things needed to develop or extend skills base.
f) To identify people with potentialities and abilities.
g) The problem in attracting or retaining key staff.
h) The scope to make better use of people by increasing employment flexibility.
i) The danger of downsizing.
2.4.1 Components of Resourcing Strategy
Armstrong (2008) identified three components of resourcing strategy.
Resourcing Plans: These plans find people from within the organization and / or for training
programmes to help people learn new skills. If needs are not satisfied from within the organization,
resourcing plans prepare longer term by attracting more qualitative candidates as the employer
of choice.
Flexibility Plans: These plans increase the feasibility in the use of human resource to enable the
organization to make the best use of people and adapt swiftly to changing circumstances.
19
Relation Plans: These plans are intended to retain the people the organization needs. Resourcing
strategy provides the basis for these plans within the frame work of business needs. It will be
more effective, if it is supported by scenario planning.
2.4.2 Scenario Planning
Scenario planning is also called by the name, the formal strategic planning technique. An advanced
learner’s oxford dictionary defines a scenario as “an imagined sequence of future events”. It is a
more or less formalized process for establishing a view about any changes that can be seen to the
scale and type of activities in the organization and to its structure. It identifies all external
environmental changes that are likely to affect it. It aims at obtaining a better understanding of the
possible situation that may have to be dealt with in the future.
In this context, Reill (1999) observes that “Scenario planning tries to open minds to a range of
possibilities that organizations may have to confront. These possibilities are then ordered to
produce a series of internally consistent pictures of alternative futures. It is an intellectual process
that seeks to identify issues and examine the possible consequences of events. The scenario
planning involves making broad assessments of likely internal developments. It shows the
direction in which the organization is going and the implications this has on people requirements.
According to Armstrong (2008), the assessments may have to be made in the absence of any
articulated business plan, and thus involve questioning top management and key line managers on
how they see the future, and asking them to interrupt what this means in terms of their human
resource needs Assessments also have to be made on likely changes in the external environment
as it may affect the labour market. Scenario planning also helps sometimes in estimating future
people requirements. However, wherever it is feasible attempts can be made to produce demand
20
and supply forecast. They will help in determining the type of action needed to be taken if the
forecasts indicate the possibility of a human resource deficit or surplus.
2.4.3 Demand Forecasting
Demand forecasting is a process of human resource planning by which the number of people, their
skills and competencies required for an organization is estimated. The ideal basis of the forecast
is an annual budget and longer term business plan, translated into activity levels for each function
and department or decision on downsizing.
2.4.4 Supply forecasting
Supply forecasting is a process of human resource planning by which the number of people to be
available within and outside the organization is measured. Supply forecasting is based on the
following six factors. An analysis of existing human resources in terms of numbers in each
occupation skills and potentials; Forecasting losses to existing resources through attrition;
Forecasting changes to existing resources through internal promotion; Effecting changing
conditions of work and absenteeism; Sources of supply from within the organization; Sources of
supply from outside the organization in the national and local labour markets.
2.5 Challenges Associated with Planning Human Resource in an Organization by Armstrong
(2008)
One serious problem confronting organizations’’ human resource managers is the most effective
method of matching people with job which is what spurred that assertion that Human resource
21
planning is not an easy process. The following are some of the barriers of human resource planning
in achieving organizational goals:
a. Absence of productivity-oriented working culture and mechanisms to encourage labour
productivity;
b) High cost of skilled labour, and training.
c) The low level of computer literacy couple with the unstable power supply in this era of
computer-based organization structuring, hence without strong information base, human resource
planning becomes a tortuous assignment.
d) Lack of the willingness to recognize special talents in the formal education systems and to
encourage their development in specialized environments.
e) Poor record keeping constraining human resource planning; even though human resource
planning is not necessarily numerical estimation or list forecasting of the workforce, record
keeping is the hub of human resource planning. f) Career guidance is not a mandatory element
before the students leave schools after secondary education.
g) Limitations in the available systems for accreditation of training institutions, preventing the
training programmes on offer to meet job market needs and international standards.
Sadly, human resource planning has not often been successful; Byars and Rue (2004,) have
mentioned the following as obstacles to properly execution of human resource planning, and are
as follows:
Sponsorship of top management - for human resource planning to be viable in the long run, it must
have the full support of at least one influential senior executive. Such high-ranking support can
22
ensure the necessary resources, visibility, and cooperation necessary for the success of the human
resource planning programs.
Size of initial effort - many human resource planning programs fails because of an over
complicated initial effort, successful human resource planning programs start slowly and gradually
expand as they meet with success.
Coordination with the other management and HR functions - human resource planning must be
coordinated with the other management and HR functions, unfortunately human resource planning
specialists become absorbed in their own functions and fail to interact with others.
Integration with organizational plan - human resource plans must be derived from organization’s
plans. The key here is to develop good communication channels between the organization planners
and the HR planners.
Noninvolvement of operation managers - human resource planning is not strictly an HR
department function. Successful human resource planning requires a coordinated effort on the part
of the operating managers and HR personnel (Byars and Rue, 2004).
2.6 Benefits of Human Resource Planning
According to Koubek (2007), Human resource planning in the business practice should represent
generally used and key activity for human resource management because human resource planning
helps to make optimum utilisation of the human resources in the enterprise and it helps to avoid
wastage of human resources. Human resource planning allows to forecast the future manpower
requirements and also to forecast the number and type of employees who will be required by the
enterprise in a near future. In the long term period, success of any enterprise depends on whether
23
the right people are in the right places at the right time, which is the nature of human resource
planning.
The institute of Employment Studies, Reilly (1996) conducted a research suggesting a number of
why organizations choose to engage in HRP. These reasons include the following:
Planning for substantive reason; that is, to have a practical effect by optimizing the use of resource
and/ or making them more flexible, acquiring and nurturing skills that take time to develop,
identifying potential problems and minimizing the chances of making a bad decision. Planning
because of the process benefit which involves understanding the present in order to confronts the
future, challenging assumptions liberating thinking, making explicit decisions which can later be
challenged, standing back and providing an overview, and ensuring that long term thinking is not
driven out by short term focus. Planning for organizational reasons which involves
communicating plans so as to obtain support/adherence to them, linking HR plans to business plans
so as to influence them,(re) gaining corporate control over operating units, and coordinating and
integrating organizations decision making and action (Reilly, 1996).
The programme does not assist the Organization only, but it will also facilitate the career planning
of the employees and assist them to achieve the objectives as well. This augment motivation and
the Organization would become a good place to work. HR Planning forms an important part of
Management information system.
2.7 Human Resource Planning
Human resource planning is a process of analyzing an organization’s human resource needs under
changing conditions and developing the activities necessary to satisfy these needs (Biswajeet,
2010).
24
Organizations are realizing that it is imperative to hire employees who can do the job and be
successful at it. This requires the planning of Human Resource. It is unfortunate that many
organizations had to suffer due to improper HRP. Human Resources planning is based on the
concept that people are the most important strategic resources of an organization. Generally, it is
concerned with suitable resources to business needs both in longer tern needs and in shorter term
needs in terms of both quantity and quality.
Bulla and Scoh (1994), define Human Resource planning (HRP) that “it is the process for ensuring
that the Human Resources requirements of an organization are identified and plans are made for
satisfying those requirements”.
Firoiu (2003, human resource planning enables an organization to pursue both employees and
expectations of management organization).
It is a disciplinary and creative process for determining where the organization should be in the
future and how to taken to the future with the help of human resource staffing activities (Graf,
Hemmasi & Strong, 1996).
2.8 Importance of Planning
Planning is an element of management which can be defined in a variety of ways.
For Adesina (1990), planning is a method of deciding what we want to accomplish. It is essentially
concerned with concepts of the future, and problems requiring imagination, choice, design and
deliberate fore thought. For Koontz et al (1980), planning involves deciding in advance what to
do, how to do it, when to do it and who is to do it. Planning bridges the gap from where we are to
where we want to be. These authors acknowledge that although it is difficult to predict the exact
future, considering the interference of factors beyond human control even with the best-laid plans,
25
events are left to chance unless such events are planned. They conclude that planning is an
intellectually demanding process which requires the conscious determination of courses of action
and the basing of decisions on purpose, knowledge and considered estimates.
The definition of planning proffered by Koontz et al (1980) is supported by Akinwumiju & Agabi
(2008) who present planning as involving the prediction of events ahead of time and the mapping
out of strategies to meet such events. For this duo, planning also involves setting goals for the
future and deciding in advance the activities and resources that will lead to the realization of such
goals. The purpose of planning is to ensure that goals are achieved within the designated time
frame and at minimal cost. Planning, from the above analysis, can be described as an economic
activity directed at the management of time and essential resources with the aim of achieving an
identified set of objectives. The success or failure of a plan is therefore measured against the time
frame within which the plan is set and the resources made available for the implementation of the
plan. Planning is therefore a managerial process directed at the optimal utilization of time and
resources in the attainment of a set of clearly identified goals. It is an important process in
economic development.
2.9 Human Resource Management Practices
Many researchers over the period have identified different HRM practices by different names.
Researchers variously refer to certain sets of HRM practices as “best practices” or high
performance‟ (Huselid, 1995), sophisticated‟ (Golhar and Deshpande, 1997; Hornsby and
Kuratko, 1990; Goss et al., 1994; Wagner, 1998) or as “professional” (Gnan and Songini, 2003;
Matlay, 1999). Pfeffer (1994; 1998) argued the most appropriate term is “Best HRM practices”.
26
However, according to Chandler and McEvoy (2000), one of the lingering questions in HRM
research is whether or not there exists a single set of policies or practices that represents a
universally superior approach to managing people. Theories on best practices suggest that
universally, certain HRM practices either separately or in combination yield improved
organisational performance.
HRM practices are argued to initiate positive exchange relationships especially when mangers are
able to provide evidence of consideration and concern for needs of the individual worker (Gould-
Williams, 2007). There seem to be no agreement on what constitutes HRM practices. Over the
years, researchers have proposed various lists of practices; however, there is no agreement on what
or which qualifies as an aspect of HRM. It is worthy to note there are some practices that form the
core of the various proposed lists of practices. Nine of these practices are selected for this study
based on their significance in the literature reviewed, their impact and measurability.
2.9.1 Recruitment and Selection
According to Bratton and Gold (2007), Recruitment is the process of generating a pool of capable
people to apply for employment to an organisation and selection which is the process by which
managers and others use specific instruments to choose from a pool of applicants a person or
persons more likely to succeed in the job(s) given management goals and legal requirements.
According to Al-Ahmadi (2009), Recruitment and selection can play a pivotal role in shaping an
organisation‟s effectiveness and performance, if organisations are able to acquire workers who
already possess relevant knowledge, skills and aptitudes and are also able to make an accurate
prediction regarding their future abilities. Performance improvement is not only a result of well-
27
functioning system but also depends on effective human resource strategies that succeed in
recruiting and maintaining a committed and motivated workforce.
Recruitment and selection has become ever more important as organisations increasingly regard
their workforce as a source of competitive advantage. It is often claimed that selection nof workers
occurs not just to replace departing employees or add to the number but rather aims to put in place
workers who can perform at a higher level and demonstrate commitment (Ballantyne, 2009). This
function of HR is presented as a planned rational activity made up of certain sequentially-linked
phases within a process of employee resourcing, which itself may be located within a wider HR
management strategy. The process of recruiting and selecting may come in four stages: defining
requirement, planning recruitment campaign, attracting candidates and selecting candidates
(Armstrong, 2010).
2.9.2 Training and Development
According to (Armstrong, 2001) training is the formal and systematic modification of behaviour
through learning which occurs as a result of education, instruction, development and planned
experience. Training has the distinct role in the achievement of an organisational goal by
incorporating the interests of organisation and the workforce (Stone R J. Human Resource
Management, 2002). For training to have a better effect on performance, its design and delivery
should be well executed.
Training remains a vital to enhancing employee performance. The organisational commitment or
“the relative strength of an individual‟s identification and involvement in a particular
organisation” (Pool & Pool, 2007), depends on effective training and development programs.
28
According to these authors, organisations demonstrating keen insight make provisions for
satisfying the training needs of their current workforce.
Cheng and Ho (2001), indicate that adequate training produces marked improvements in employee
communication and proficiency of performances as well as extending retention time. Moreover,
when programs target communication skills with co-workers, there are significant increases in
profit as well as a greater number of reported positive working relationships that are formed. Also,
training and education have been shown to have a significant positive effect on job involvement,
job satisfaction, and organisational commitment (Karia and Asaari, 2006). Moreover, poor
performance reviews due to inadequate job training can produce employee dissatisfaction and
conflict.
2.9.3 Compensation
Bob (2011) , compensation processes are based on compensation philosophies and strategies
contained in the form of policies, guiding principles, structures and procedures which are devised
and managed to provide and maintain appropriate types and levels of pay, benefits and other forms
of compensation. This constitutes measuring job values, designing and maintaining pay structure,
paying for performance, competence and skill and providing employee benefit. However,
compensation management is not just about money, it is also concerned with that non-financial
compensation which provides intrinsic or extrinsic motivation.
Compensation has a motivational effect and therefore implies that having a compensation structure
in which the employees who perform better are paid more than the average performing employees
is vital to enhancing organisational performance (Hewitt, 2009). The growing recognition and
29
consensus that compensation promotes productivity is consistent with the early work of Peter
Drucker (1956) that states “happy workers are productive workers.”
2.9.4 Appraisal/Performance Management
Wiese and Buckley (1998), Performance appraisal of employees is the systematic evaluation of
employees‟ performance and potential for development during a certain period of time by
supervisors or others who are familiar with their performance. It is one of the oldest and widely
used management practices. Performance appraisal is an indispensable tool for an organisation
because the information it provides is highly useful in decision making regarding issues such as
promotion, merit increases transfer, discharge, training and development. Not only is performance
appraisal useful for the above issues, it may also increase employee’s commitment and satisfaction.
However, there has been a great realisation that it is more important to focus on defining, planning
and managing performance than merely appraising performance Pareek and Rao, (2006).
The increased competitive nature of the economy and rapid changes in the external environment
has forced many organisations to shift from reactive performance appraisals to proactive
performance management to boost productivity and improve organisational performance (Nayab,
2011).
Prasad (2005) defines performance management as the process of planning performance,
appraising performance, giving its feedback, and counselling an employee or teams to improve
performance.
Armstrong (2006) put it, performance management is a systematic process for improving
organisational performance by developing the performance of individual and teams. Performance
30
management is one of the most important developments in the field of HRM probably propelled
into visibility in the early 1980’s as a result of the growing importance of total quality management.
2.9.5 Employment Security
Studies by Delery and Doty (1996); Bjookman and Fey (2000) have emphasised the significant
correlation between employment security and organisational performance. According to Pfeffer
(1998) benefits of employment security, aside workers‟ free contribution of knowledge and their
efforts to enhance productivity, it also encourages people to take a longer-term perspective on their
jobs and organisational performance. In a study of the financial performance of 192 banks, John
Delery and Harold Doty observed significant relationship between employment security and the
bank‟s return on assets, an important measure of financial performance. Employment security
maintained over time helps to build trust between people and their employer, which can lead to
more cooperation, forbearance in pressing for wage increases and better spirit in the organisation.
The idea of employment security does not mean that the organisation retains people who do not
perform or work effectively with others; of course performance does matter. Employment security
is fundamental to the implementation of most other high-performance management practices such
as selective hiring, extensive training, information sharing and delegation. Companies are unlikely
to invest the resources in the careful screening and training of new people if those people are not
expected to be with the firm long enough for it to recoup these investments. Similarly, delegation
of operating authority and the sharing of sensitive performance and strategic information requires
trust and that trust is much more likely to emerge in a system of mutual, long-term commitments.
31
2.9.6 Employee Voice (Involvement and Participation)
The direct participation of staff to help an organisation fulfil its mission and meet its objectives by
applying their own ideas, expertise and efforts towards solving problems and making decisions is
termed as employee involvement. Research has shown that organisations that tap the strength of
their people will be stronger and more aggressive than those that cannot. Firms will never realise
the full potential of employees if they regard people as automatons or mere cogs in a wheel. In the
long run, such companies‟ inefficiencies attract competition, and unless the management
philosophy changes, they will disappear (Apostolou, 2000). So many studies have shown how
much of an impact employee participation can have on the performance and wellbeing of an
employee, team or the entire organisation: improved organisational decision-making capability,
and reduced costs through elimination of waste and reduced product cycle times (Apostolou,
2000); improved attitude regarding work (Leana, Ahlbrnadt, &Murrel, 1992); empowerment, job
satisfaction, creativity, commitment and motivation as well as intent to stay (Apostolou, 2000;
Light, 2004); increased employee productivity across industries (Jones, Kalmi, & Kauhanen,
2010).
2.9.7 Information Sharing and Knowledge Management
As Pfeffer (1998), asserts information sharing is an essential component of high-performance
work systems for two reasons; first, the sharing of information on things such as financial
performance, strategy and operational measures conveys to the organisation’s people that they are
trusted and the second is that even motivated and trained people cannot contribute to enhancing
organisational performance if they do not have information on important dimensions of
performance and in addition training on how to use and interpret that information. An enterprise
32
that makes real a shared culture that is in actual fact unbreakable through information flow will be
a competitive one. When the sharing of information is a vital component of the entire enterprise’s
culture, this can surely impact the effectiveness of the enterprise. When people work together,
share ideas, and sometimes wrangle, they build on one another’s ideas for the benefit of the
enterprise. The lack of communication and information sharing disrupts works and brings about
enterprise mediocrity.
In a study by Brian Hackett (2000) titled, “ Beyond Knowledge Management: New Ways to Work
and Learn,” knowledge management is defined as,” An integrated, systematic approach to
identifying, managing, and sharing all of an enterprise’s information assets, including databases,
documents, policies, and procedures, as well as previously unarticulated expertise and experience
held by individual workers.” In essence, it is gathering all the information and resources of a
corporation and making them available to the individual employee. In turn, the employee uses
these resources to create new innovative processes and thus, gives back to the firm.
2.9.8 Job design
Job design refers to work arrangement or rearrangement aimed at reducing or overcoming job
dissatisfaction and employee alienation arising from repetitive and mechanistic tasks. Through job
design, organisations try to raise productivity levels by offering non-monetary rewards such as
greater satisfaction from a sense of personal achievement in meeting the increases challenge and
responsibility of one’s work. Job enlargement, job enrichment, job engineering, job rotation and
job simplification are various techniques used in a job design exercise.
33
Opatha (2002) Job design is the functions of arranging task, duties and responsibilities in to an
organisational unit of work‟. The process of job design has been defined as, “...specification of the
contents, methods, and relationships of jobs in order to satisfy technological and organisational
requirements as well as the social and personal requirements of the job holder.”
(Buchanan, 1979) It can also be the process of putting together various elements to form a job,
bearing in mind organisational and individual worker requirements, as well as considerations of
health, safety, and ergonomics. In this rapidly changing business environment, it is has become
even more critical for jobs design to meet the requirement of challenging work. Changing
technology, advanced communication, and changing organisational structures have all impacted
job design. To be more responsive to the rapid pace of change, jobs must have some degree of
built-in flexibility. This flexibility is achieved through careful attention to job design. Job
simplification standardises work procedures and employs people in clearly defined and highly
specialised tasks. Job rotation and job enlargement were designed to take advantage of
specialization of labour from the job engineering approach (Luthans, 2005). Job rotation allows an
employee to work in different departments or jobs in an organisation to gain better insight in to
operations. Job enlargement can be used to increase motivation by giving employees more and
varied task. Job enrichment is the technique which entails the inclusion of greater variety of work
content, requiring a higher level of knowledge and skill, giving workers, autonomy and
responsibility in terms of planning, directing, and controlling their own performance, and
providing the opportunity for personal growth and meaningful work experience (Garg & Rastogi,
2006). A wealth of studies show that there exists a correlation between job design and performance
Al-Ahmadi (2009) indicated that the nature of job itself was found positively correlated with
34
performance , which indicates that satisfaction with amount of variety and challenge in one‟ s job
actually influence performance.
Job design gives a clear direction to how tasks are performed and this leads a positive change in
job performance and analysis as a result of which the organisational productivity is enhanced
though efficient work performance.
2.9.9 Career Planning
Career planning is the deliberate process through which someone becomes aware of his or her
personal skills, interests, knowledge, motivations, and other characteristics; acquires information
about opportunities and choices; identifies career-related goals; and establishes action plans to
attain specific goals (Dessler, 2008). According to Edgar Schein career planning (Manolescu,
2003) is a continuous process of discovery in which an individual slow develops his own
occupational concept as a result of skills or abilities, needs, motivations and aspirations of his own
value system. In HRM, career planning seeks to identify to identify needs, aspirations and
opportunities for individuals career and the implementation of developing human resources
programs to support that career. A well-planned career development system along with internal
advancement opportunities based on merit, results in high motivation among employees, which
has an impact on firm performance (Milkovich & Boudreau, 1998).
In a broader sense, career management which is defined by Mayo (1991) as the design and
implementation of organisational processes that enable the careers to be planned and managed in
a way that optimizes both the needs of the organisation and the preferences and capabilities of
individuals has become one of the most important elements in HRM. Byars and Rue‟s (2000)
explanation of career management is that, it is a joint-responsibility between individuals,
35
organisation, and employees‟ immediate managers. Individuals‟ responsibility, which covers two
main areas: preparing their own career plans and putting the plan into practice are termed as career
planning and career strategies respectively. The organisation’s and the immediate managers‟
responsibilities, if combined together would generate another dimension which is best named as
organisational career management.
2.10 Organization
According to Stewart (1994) “organizations are set up to achieve purposes that individuals to
achieve on their own organization they provide a means of working with others to achieve
goal….like to determine by whoever is in the best position to influence them. A key characteristic
of organization is their complexity”. Individuals in organization, depend on each other’s effort
through interactions and which enable them work to words the realization of common goal. Laid
down structures however fashion out how they relate to others. It can also be define as a group of
people identified with shared interest or purposes, example business or school.
Michael (2006) has shown that “the human resource takes place within the context of the
organization. The extent to which it is used, and the approach adopted, will be contingent on the
extent to which management recognizes that success depends on forecasting future people
requirement and implementing plan to satisfy those requirement.
2.10.1 Organisational Performance
Researchers have different opinions of what performance is. Organisational performance continues
to be a contentious issue in the management research circles. Javier (2002) equates performance
to the famous 3Es; economy, efficiency and effectiveness of a certain programme of activity.
36
According to Richard et al (2009) organisational performance encompasses three specific areas of
firm outcomes; financial performance (profits, return on assets, return on investment, etc), product
market performance (sales, market share, etc), and shareholder return (total shareholder return,
economic value added, etc.). Organisational performance is the organisation‟s ability to attain its
goals by using resources in an effective and efficient manner Daft (2000). We can put
organisational performance as the actual output or results of an organisation as measured against
its intended outputs, that is; goals and objectives. Performance should not be confused with
productivity; according to Ricardo (2001), productivity is a ratio depicting the volume of work
completed in a given amount of time. Performance is a broader indicator that could include
productivity as well as quality, consistency, effectiveness, efficiency and other factors.
A study by Chien (2004) found that there were five major factors determining organisational
performance, namely: Leadership Styles and Environment, Job Design, Organisational Culture,
Model Of Motive And Human Resource Policies.
The concept of performance borders on both what has been achieved and how it has been achieved.
Organisational performance can be measured in a number of different ways. The most obvious
way to measure what has been achieved and the approach used in many studies, is by reference to
key performance indicators (KPIs) which are usually to do with financial results (profitability) or
productivity. Measuring the “how” is more difficult. It has to rely extensively on qualitative
assessments of organisational capability or effectiveness.
2.11 Summary of the Chapter
The reviewed literature related to the effect of human resource planning on organization. The
chapter first presents the theoretical framework of Human resource planning (HRP) under which
37
the central objectives of human resource planning was differentiated from other objectives of
human resource planning. It presented the process of planning human resource , under which the
process of human resource were listed as ;Business strategic plans ,Resourcing strategy, Scenario
planning, Demand forecasting, supply forecasting and labour turnover Analysis , .It also presented
the resource strategy under which components of resourcing strategy were exposed and scenario
planning ,Demand forecasting ,supply forecasting were explained. Again. The need for Human
resource planning and as well as the of effective human resource planning were analyzed. The
study finally reviewed the literature on the challenges associated with human resource planning
on organization.
38
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction
This study is aimed at examining the human resource planning of Metro Mass Transit (Accra) such
practices on the organisation. This chapter discusses the research design, target population, sample,
sampling techniques sources of data, and data collection procedures used in obtaining the required
data.
3.1 Research Design
This study applied an explanatory research design since it seeks to establish the impact of Human
Resource planning on organisational. The study used a selected number of Human Resource
planning (HRP) to get empirical data on Human Resource planning and how they affect
organisational. The research strategy for the research is a survey approach in order to collect
quantitative data which was analysed using descriptive statistical tools. The use of a survey enables
generalisation to be conducted using findings generated from a sample size which is representative
of the whole population.
3.2 Sample and Sampling Techniques
A sample is a selection of a group of people or events from a population to be able to find out true
facts about the sample that will be representative of the population. This becomes necessary as the
entire population cannot be studied due to the size, inaccessibility, time and financial constraints.
39
This study had an estimated population size of one hundred and twenty (120) people and this large
size made it impossible for the researcher to test every individual members of the population. As
such, a sample size of fifty (50) respondents, representing 41.7% of the population was chosen as
a reflection of the population for the study. Based on non-probability sampling procedure,
purposive and convenience sampling techniques were used for selecting respondents for
managerial employees and non-managerial employees respectively. The purposive sampling
technique is done with a predefined group in mind. The subjects will be handpicked from the
accessible population and matched against the criteria for being in the sample. The purposive
sampling technique will be applied in sampling for managerial employees because they had to
meet a criterion of belonging to the predefined group of top level managers. Again, the
convenience sampling technique will be used so that any non-managerial employee can participate
as a respondent. The convenience sampling technique suited the non-managerial employees better
due to their relative ease of access and the fact that any employee belonging to this group is a
potential respondent. Out of the sample size of 50, (5) were top management staff of managers
and supervisors, and the other 45 respondents were a combination of non-managerial members
constituting middle and lower level employees.
3.3 Data Collection Instruments
The study utilized both primary and secondary data. Primary data was collected from the field
using questionnaires, while secondary data was collected from journals and books. Both methods
helps to widen the scope of the data to be analysed.
40
3.4 Data Analysis Techniques
In analyzing the data collected from the field, the researcher will make use of tables, frequencies,
percentages, bar graphs and charts. The responses of the various workers will be first edited and
summarized using frequencies. Both qualitative and quantitative approaches was used to analyze
the data. The values corresponding to some items will be further converted to percentages to
facilitate comparison between the items.
41
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.0 Introduction
This chapter presents information on primary data collected from respondents on assessing the
necessity of human resource planning in an organization. The data were processed and presented
in tables, graphs and other statistical representations using Microsoft excel . Interpretations
given were on processed data collected from the field that sought to establish the Effect Of
Human Resource Planning On Organization (Metro Mass Transit, Accra).
4.1 Gender
This ratio gives enough prove of about 70% male dominance, and therefore agreed to the assertion
that it’s the men’s world. Since the women are represented by 30% (minority) from the table 1
below, it is clear that a lot of men are involved in the operations of the company than the women
(female).
Table 1 Gender
Gender Respondents Percentage%
Male 35 70
Female 15 30
Total 50 100
Source: Field Survey, 2018
42
4.1.1 Age of Respondents
Age forms one of the essential demographic variables on which data is obtained surveys.
Table 2 Age of Respondents
Age Respondents Percentage%
18-25 7 14
26-35 8 16
36-45 21 42
46 and above 14 28
Total 50 100
Source: Field Survey, 2018
Table 2 portrays absolute and percentage distribution of respondent’s age in groups. The Table
shows majority of the employees fall within the age bracket of 36-45 representing 42% of
respondents, with age 46 and above close to it with a percentage of 28%. It also indicated that only
7 employees are within age 18-25. It is also clear that only 8 employees are in the ages of 26-35
and above representing 16%.
In all, the study revealed that the workforce had fair balance of blend of youthful and energetic
with intelligent middle age employees. It also indicated 28% of the workers are nearing to pension
age (46 ands above).
43
4.1.3 Educational background
Table 3 Educational background
Educational level Respondents Percentage %
SSCE/WASSCE 25 50
BECE 13 26
Masters 3 6
HND 3 6
Degree 4 8
Others 2 4
Total 50 100
Source: Field Survey, 2018
The research indicated in Table 3, shows that 25 respondents of the study holds SSCE/WASSCE
Certificates as their highest attained educational level and also the highest in the survey with a
percentage of 50. Whiles that of masters and diploma holders recorded an equal percentage of 6
and also others being the lowest with a percentage of 4 representing 2 respondents. In summary it
is clear that the employees have had a level of formal education or are educated with the least
being BECE holders.
44
4.1. 4 Current Position of Respondents?
Table 4 Current Position of Respondents?
Position Respondents Percentage %
Administrator 3 6
Conductors 14 28
HR officer 5 10
Driver 17 34
Others 11 22
Total 50 100
Source: Field Survey, 2018
From table 4 above, 6% of respondents were administrators, 5 respondents were HR officers
representing 10% of respondents. Out of the 50, 17 were drivers representing 34% and also the
highest. 14 of respondent with a percentage of 28 were conductors and also the second highest to
drivers. 22% of respondents were comprised of others. From the survey it was clear that majority
of the workers at Metro Mass Transit are drivers or conductors.
4.1.5 Tenure with Metro Mass Transit?
The table 5 below present data on the number of years respondents of the study have been with the
organization under study.
45
Table 5 Tenure with Metro Mass Transit
Number of years Respondents Percentage %
less than 3 years 10 20
Between 3 and 5 years 13 26
More than 5 years 27 54
Total 50 100
Source: Field Survey, 2018
Table 5 above indicates that, 10 respondents representing 20% have being working with the
organization for less than 3 years, whiles 265 representing 13 respondents have been with the
organization for 3 to 5 years. 27 of respondents have been with the organization for more than 5
years representing 54%. The survey shows that majority of the workers at Metro Mass Transit
have more than 5years working experience. This can be considered to be favourable to the
organization.
4.2 Awareness of resource planning policy of Metro Mass Transit?
Table 6 Human Resource Planning Policy
HRP Policy Respondents Percentage %
Yes 41 82
No 3 6
Not Sure 6 12
Total 50 100
Source: Field Survey, 2018
From table 6 above, 41 of respondents concluded that they are aware of human resource planning
policy of Metro Mass Transit. 3 respondents representing 6% indicates that they were not aware
46
of human resource planning policy of the organization and 6 respondents with a percentage of 12
were not sure of existing or not existing human resource planning policy of the organization. From
the survey the studies concludes that majority of respondents are aware of the human resource
planning policy, this is a clear indicator of an existing human resource planning policy at Metro
Mass Transit.
4.3 Respondents have undergone training since joining Metro Mass Transit?
Table 7 Training since joining Metro Mass Transit
Training Respondents Percentage %
Yes 50 100
No 0 0
Total 50 100
Source: Field Survey, 2018
Figure 1
Source: Field Survey, 2018
From figure 1 above, all respondents representing 100%, concluded that they all received training
since joining the organization (Metro Mass Transit). This implies that all workers of the
organization receive training or are given the required training on the job.
Training
Yes No
47
4.4 How did the training impact on your work performance
Table 8 Impact of Training on Performance
Training Impact Respondents Percentage %
Excellent 6 12
Very good 15 30
Good 21 42
Better than before training 5 10
No change at all 3 6
Total 50 100
Source: Field Survey, 2018.
Figure 2
Source: Field Survey, 2018
Figure 2 above shows that, 6% of respondent concluded there was no change at all concerning
impact on training but 42% of respondents concluded that impact on training and was good. This
implies that there is proper human resource planning at MMT.
12%
30%
42%
10%6%
IMPACT OF TRAINING ON PERFORMANCE
Excellent Very Good better than before No change at all
48
4.5 Training Content Relevant To Work?
The table and figure below show responses of respondents’ base on the relevant of training on the
job or work.
Table 9 Training Content Relevant To Work
Training Content Respondents Percentage %
Totally Relevant 14 28
Very Relevant 29 58
Not Relevant 3 6
Cannot Tell 4 8
Total 50 100
Source: Field Survey, 2018
Figure 3
Source: Field Survey, 2018
Table 9 shows that, 6% of respondents concludes that training was not relevant to their personal
needs, goals and self-development, whiles 8% of respondents could not tell the relevance of
28%
58%
6%8%
Training Content Relevant
Totally Relevant Very Relevant Not Relevant Cannot Tell
49
training content to the personal needs, goals and self-development. 28% of respondents concluded
that training was totally relevant to their goals and self-development but 58 respondents agreed
that the content of training was very relevant to their personal needs, goals and self-development.
In all it was clear that training content was highly relevant to the needs, goals and self-development
of the workers.
4.6 Relevance of Human Resource Planning to Metro Mass Transit?
Table 10. Relevance of Human Resource Planning to Metro Mass Transit
Company Consider HRP Respondents Percentage%
Very serious 34 68
Seriously 12 24
Somewhat serious 4 8
Total 50 100
Source: Field Survey, 2018
Figure 4
Source: Field Survey, 2018
68%
24%
8%
Human Resource Planning
Very serious Seriously Somewhat serious
50
Table 10. indicates that, out of the 50 respondents 4 representing 8% concludes that the company
(MMT) consider HRP to be somewhat serious whiles 12 respondents with a percentage of 24%
says the company (MMT) considers HRP to seriously.34 respondents being the majority with a
percentage representation of 68% concludes that the organization considers HRP to very seriously.
The out of responses implies that the organization under study considers Human Resource
Planning.
4.7 Challenges faced by Metro Mass Transit in human resource?
Table 11. Challenges faced by Metro Mass Transit in human resource
Challenges Respondents Percentage%
Yes 39 78
No 8 16
Not Sure 3 6
Total 50 100
Source: Field Survey, 2018
51
Figure 5
Source: Field Survey, 2018
From figure 5 above, the survey indicates that, 6% of respondent are not sure the organization’s
challenges in human resource planning.16% of respondents concludes that the organization faces
no challenge in human resource planning whiles 78% of respondents concludes that yes the
organization have challenge in human resource planning. This implies that MMT has challenges
in dealing with human resource.
4.8 Separate department for Human Resource Planning?
The figure below shows data on respondents view on the organization having a department for
human resource.
0%
10%
20%
30%
40%
50%
60%
70%
80%
Yes No Not sure
Series 1
Series 1
52
Figure 6. Separate Department for Human Resource Planning
Source: Field Survey, 2018
From figure 6, all 50 respondents representing 100% concluded that there is a separate department
for human resource planning. The indicates that Metro Mass Transit has a department which deals
with human resource.
4.9 Importance of Human Resource Planning to MMT?
Table 12 Importance of Human Resource Planning to MMT
Is HRP Important Respondents Percentage %
Yes 46 92
No 4 8
Total 50 100
Source: Field Survey, 2018.
0%
20%
40%
60%
80%
100%
120%
Yes No
Separate Department
Separate Department
53
Figure 7
Source: Field Survey, 2018.
Figure 7 above shows that 92% of respondent agrees that human resource planning is important to
the organization with only 4 respondents representing 8% disagreeing to the fact that human
resource is important. This implies that human resource planning is important to Metro Mass
Transit.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Yes No
Is HRP Important
Is HRP Important
54
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction
The study investigated the effect of human resource planning on organization a case study of Metro
Mass Transit (Accra). The researcher was interested in finding out how Metro Mass Transit
manage their human resources, evaluate the challenges Metro Mass Transit encounter in managing
their human resources and examine how Metro Mass Transit help deal with these challenges. This
chapter gives a summary of the entire study and also makes conclusions and recommendations for
future research. For these reasons, questionnaires were administered to respondents who were
workers of Metro Mass Transit.
5.1 Summary of Findings
Human resource planning is very important within any human institution, for this reason any factor
that affect or impact on human resource planning to an organization is worth researching. This
study focused on Metro Mass Transit (Accra) and it was discovered that 42% of workers at Metro
Mass Transit were between the ages of 36-45years, with most of them being males. Also most of
the workers had SSCE/WASSCE as their highest level of educational qualification and this was
attributed to the fact that entry into the service requires a person to complete at least Senior High
School, meaning that SHS certificate was the minimum qualification for entry. The study also
identified that most of the workers at Metro Mass Transit were drivers and conductors. Also the
study revealed that majority of the worker had more than 5 years working experience with the
organization which considered to be favourable to Metro Mass Transit. Most workers attested to
the fact that the organization has a separate department for human resource, obtained training
55
which was relevant to their needs and also concludes that the organization considers human
resource to be very serious.
5.2 Conclusion
In conclusion, human resource planning has a strong influence on organizational performance in
projecting future demand of organization and environmental factors which helped to manage
human resource demand as required. Having the qualified personnel in organization helps to
achieve firm’s goals. The implementation of human resource planning leads to employee
productivity, machine efficiency, customer satisfaction, quality and quantity of service delivery.
From the study findings and in relation to the objectives of the research, the researcher also
concludes management practices also contribute drastically to employees desire to remain or quit
their jobs depending on how they are handled. Therefore, with most workers being within the age
36-45, provision of rewards should be addressed to retain them in other to have more experienced
workers in the organization to achieve higher productivity. The study also identified that the
organization has a challenge in dealing with human resource which was link to finance. The
researcher concludes that adequate resource (funds) should be made available to the human
resource department of MMT to enable them to plan and strategize well for the organization since
the success of the organization cannot be achieved without a sound human resource department.
5.3 Recommendations
Based on the findings of the study, the following recommendations were made:
The human resource department should keep developing and implement a comprehensive career
development training programme for the staff. This would enhance organizational culture or
policies, and build up customer relationships through participation and empowerment.
56
The department itself should have human resource plans so that no matter the changes in
management, the plans will still be followed. These plans should be periodically reviewed in order
to adjust to the dynamic environment. This would overcome the issues of excess staff which leads
to increase cost of labour and also constant changing of directors in the organisation as a result of
change in political power.
Since, the central objective of human resource planning in organization is to construct a strategy
of human resources development consistent with the organization’s broader aims of economic
development. The researcher recommends that, human resource planning of Metro Mass Transit
must seek to define the ends and means to achieving their overall organizational goal such as
attracting the number of people required with the appropriate skills, expertise and competencies.
5.4 Suggestions for Further Research
This study focused primarily on the effect of human resource planning on organization, based on
the limitations of this study, the researcher recommends that a further study be undertaken
encompassing more organizations and more indicators that will help unearth the effect of human
resource planning on organizations in Ghanaian. The researcher further suggest if possible a
comparative study of companies with human resource plans and those without be undertaken.
Top Related