EFFECT OF MANPOWER TRAINING AND DEVELOPMENT ON EMPLOYEES MORALE IN KADUNA REFINING AND PETROCHEMICAL COMPANY

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EFFECT OF MANPOWER TRAINING AND DEVELOPMENT ON EMPLOYEES MORALE IN KADUNA REFINING AND PETROCHEMICAL COMPANY

TABLE OF CONTENTS

CHAPTER ONE

(INTRODUCTION)

1.1 Background of the Study – – – – – – 1

1.2 Statement of the Problem – – – – – – 3

1.3 Objective of the Study – – – – – – – 5

1.4 Statement of Hypothesis – – – – – – 6

1.5 Significance of the Study – – – – – – 6

1.6 Scope of the Study – – – – – – – 8

1.7 Limitation of the Study – – – – – – 8

1.8 Historical Background of the Case Study – – – 9

1.9 Definition of Terms – – – – – – – 13

CHAPTER TWO

(LITERATURE REVIEW)

Definitional Concept of Training and Development – 15
- Training Defined – – – – – – – 16
- Development Defined – – – – – – 17
- Differences between Training and Development – – 18
- Training and Development Needs – – – – 20
- Kinds of Training Needs – – – – – – 22
- Methods of Training and Development – – – – 24
- Factors Militating against Training and Development – 27
- Effects of Training and Development on Employee’s Morale 29

CHAPTER THREE

(RESEARCH METHODOLOGY)

3.1 Research Design – – – – – – – 33

3.2 Research Population – – – – – – – 33

3.3 Sampling Size and Sampling Techniques – – – 33

3.4 Method of Data Collection – – – – – – 34

3.5 Justification of Method Used – – – – – 34

3.6 Method of Data Analysis – – – – – – 35

3.7 Justification of Instrument Used – – – – – 37

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

Manpower Training is very vital for any development of any Organization. Why some organizations take it very serious others take is very lightly. There is always a positive result on the part of any organization that takes up staff training and development very importantly. Any organization that fails to take it manpower training and development very necessary tends to encounter difficulties in attaining its objectives and would find it difficult to compete favourably. There are various training and development procedures that can be undertaken by organization (s). This study is about highlighting the fact that unless training and development of manpower is properly done, objectives will be very difficult to attain.

Manpower development therefore, becomes the end result of the application of power and though career development. In the public sector, employees anticipate equitable and adequate Manpower development training. One of the purpose of an organization is to permit the group of individuals to enhance efficiency and effectiveness.

The study of Manpower development as in long time seen as a vital tool in enhancing employees morale which has it multiplying effect on organization’s productivity. The study of Manpower development as a tool for employees high morale towards Organizational efficiency and effectiveness has been embarked upon in attempt to access the extent to which organization especially the Kaduna Refining and Petrochemical Company (KRPC) cherish and promote Manpower training and development in boosting employees morale towards organization’s output.

Therefore, the study would like to access: How far Manpower development planned with the mind of those at the top level management whenever they are planning strategies to introduce new concept to the administrative procedures with particular reference to Kaduna Refining and Petrochemical Company (KRPC). In this development and recognition of the important of effective manpower development, the Federal Government of Nigeria inaugurated the National Manpower Planning Board on 18^th October, 1992.

STATEMENT OF THE PROBLEM

Kaduna Refining and Petrochemical Company is to some extent a large government organization both in its recruitment of employees from all the departments, its system of operation as well as functions.

The need for effective planning and manpower development need not to be over emphasized if the organization must remain on such positions and be among the best organizations in the country.

Benefits from Manpower development have rarely been demonstrated. This is partly as few Boards and parastatals attempt to evaluate the result of training because sometimes employees are allowed to pursue careers that have no relevance to the organization major functions.

Many believe that evaluation is difficult and that everyone would like to advance his or her career thereby overwhelming the organizational training request.

These and other aspects of manpower development and their potential benefits to transaction and individual form the basis of this study.

Despite its important position in the state, why has the benefit from manpower development seldom demonstrate?
Is this as a result of poor evaluation of training by the police board?
Is training evaluation so difficult to create the individual career goals overwhelming the organization training request?
Is development used as a motivation to how the staff work efficiently towards industrial development or is it assume as move benefits to the staff?
Or is it the un – cooperative attitude of the implementation machinery?

Ukpanah emphasized and recognized the important rule of effective manpower planning and utilization in National Economic Development. The problem of manpower development planning is seen as a National problem of which KRPC is not an exception.

OBJECTIVE OF THE STUDY

In the light of the problems already identified in 1.2 above, the study was undertaken with the following aims and objective.

To study the Manpower development system in order to appraise its adequacy as a form of employee morale booster.
1. To study the operation of Kaduna Refining and Petrochemical Company (KRPC), with the aims of identifying the manpower utilization and development.
1. To find out whether development is for occupational competence or to help those who have served long on a particular job to change.
1. To find out the implication of the method used and its consequences on the job and how it affects the workers behaviour.
1. To identify means for evaluating the effectiveness of the development procedures.
1. To increase the level of awareness of the organization of the effects of efficiency on general productivity, performance, morale and the need for management to design adequate schemes for its employees.

Generally, to make recommendation to the management of Kaduna Refining and Petrochemical Company on the possible areas of improvement.

STATEMENT OF HYPOTHESIS

H₀: Manpower Training and Development have no significant effect on employees morale.

H₁: Manpower Training and Development have significant effect on employees morale.

SIGNIFICANCE OF THE STUDY

The study is specified on Manpower training and development as a tool measuring employees morale, which explains the inefficiency that characterized our public sector and corporations which also result into lack of commitment to work and waste of resources which are strongly needed to enhance social and economic development.

It is hoped there fore that this study would provide information on the remote and immediate course and possible solutions to the manpower development problems as they affect KRPC. This is also hoped that the finding of this study will contribute to existing knowledge and information on the area of research. It is also expected that the findings and recommendations of this study will guide KRPC to establish a formidable manpower development planning.

The study would also be useful to the people who always cry that the organization does not have effective manpower development programmes, so that they know its limitations and area of help to the workers for their support and recognition of their efforts to the organization.

Finally, this study will be useful to the students that may wish to write or make research on similar topics and using this as a point of reference to re – orient them towards their profession or future research or practical endeavour.

SCOPE OF THE STUDY

The scope of this study is limited to Kaduna Refining and Petrochemical Company, which is a subsidiary of Nigeria National Petroleum Corporation (NNPC). Within this, the study will only be concerned with KRPC as a government organization of the country established to ensure the development of the country and the state in particular.

The research scope within this case study does not include its general activities but the area of manpower training and development as a prominent tool of measuring employees morale.

LIMITATION OF THE STUDY

Funds were in very short supply to the researcher and the researcher could not purchase some valuable print materials needed for this project at the time they were most needed. The expenses on transportation to KRPC are so enormous because of many occasions the researcher was not attended to and would have to leave without the information required.

Another constraint faced by the researcher was limited time for the completion of the project and engagement in other academic activities which occupied most of the researcher’s time.

The research was faced with some restrictions in the area of the case study; this is due to bureaucratic reasons in the administrative procedures in the Organization. It was not possible to get all the necessary information that would have helped in producing a comprehensive research work. The process of going through some records to get data was very tedious and formidable task as some materials needed are tagged “TOP SECRET”.

HISTORICAL BACKGROUND OF THE CASE STUDY (KRPC)

Since Kaduna Refining and Petrochemical Company (KRPC) is the main focus of this study, it is necessary to look at it more closely. The Kaduna Refining and Petrochemical Company is a subsidiary of Nigerian National Petroleum Company (Established in 1971 known as Nigerian National Oil Corporation [NNOC] by then).

The Federal government’s decision to construct the third NNPC refinery in Kaduna was taken along with that of Warri location as far back as 1974. The whole idea was to supplement the plant at Port – Harcourt and to discourage the wastage of foreign exchange used in the importation of petroleum products. KRPC thus was established for the purpose of refining crude oil into high value petroleum products and exportation of other related profitable business in cooperate interest of the organization and the whole nation in general. However, KRPC did not start operation until 1979.

The activities of KRPC are divided into refinery and petro-chemical units, with each unit leavings its own activities and producing different output from the other unit.

REFINERY PRODUCTS

The KRPC undertakes the refining of the following products i.e. dual purpose kerosene (for domestic use) motor gasoline, base fuel, lube oil, waxes, surplus, Naphtha, black wax, asphalt, Liquefied Petroleum Gas (LPG) and petrol.

PETRO – CHEMICAL (LABORATORY) PRODUCT

The following listed are petro-chemical products made at the KRPC Liner Alkene/Benzene Petro – Chemical plant, Kaduna.

Solvent (For End Users): Insecticides, plants, vanishes, degasses, mental cleansing, polishes for shoes, filer and furniture.
1. Benzene:Aromaticsolvent paints and leagues, pharmaceutical industrial chemicals and Aviation Gasoline.
1. Tins and Drums:Are also manufactured and other users of tins and drums are containers of their products.
1. Heave Alkylate:Transformer oil, lubrication oil, Greases and Tremolo fluids.

The essence of this study is to see how manpower development can be a tool for the efficiency of the production of the above mentioned products through the effect it has on employees morale.

ORGANIZATIONAL CHART OF KRPC

DEFINITION OF TERMS

Manpower: This is the human resources of an organization that coordinates and control materials, finance and others towards the attainment of an organization objectives.

Training: Training could be seen as an Organizational effort aimed at helping an employee to acquire basic skills required for the efficient and effective execution of the function for which he/she is hired for.

Development: This is a programme designed to provide new ideas and concepts that may be useful for present and future specification/response which take care of professionals and managers.

Planning: Is a strategy by which Organization ensures that right number of employees with the right talent/skill occupy the right position of the Organization. It is a deliberate effort put in place to attain a target goal.

Efficiency: This refers to an input-output relationship that is maximum work achieved for a minimum time or result. It is a notion of ‘Optimization’ whereby maximum satisfaction is obtained for a given out lay of resources.

Effectiveness: This is referred to how frequently and perfectly human or machine are able to carry out a task leading to a required output that always resulted to an Organizational efficiency. Effectiveness is therefore a means to an end”.

Organization: This is referred to as two (2) or more people working together in a co-ordinated manner to attain group results.

CHAPTER TWO

LITERATURE REVIEW

DEFINITIONAL CONCEPT OF TRAINING & DEVELOPMENT

Prasad (2006): Training refers to the teaching/learning activities done of the primary purpose of helping members of an organization to acquire and apply the knowledge, skills, abilities and attitude needed by that organization to acquire and apply same.

Isyaku (2000), Training is the act of increasing the knowledge and skill of an employee for doing a particular job.

Harrison (2005) to the field which is concerned with organizational activity at bettering the performance of individuals and groups in an organizational setting is referred to training and development.

In Human Resource Management, Training and Development refers to the imparting of specific skills, abilities and knowledge to improve current or future employee performance.

TRAINING DEFINED

Prasad (2006) defines training as a process that involves the acquisition of knowledge, sharpening of skills, concepts, rules or changing of attitudes and behaviours to enhance the performance of employees.

Training is activity leading to skilled behavior.

It is not what you want in life, but its knowing how to reach it.
It is not where you want to get, but is knowing how to get there.
It is not how high you want to rise, but it is knowing how to take off.
It may not be quite the outcome you were aiming for, but is will be an outcome.
It is not what you dream of doing, but knowledge to do it.
It is not a set of goals, but its more like a vision.
It is not the goal you set, but it is what you need to achieve it.

Harrison (2005), training is about knowing where you stand (no matter how good or bad the current situation looks) at present, and where you will be after some point of time. Training is about the acquisition of knowledge, skills and abilities (KSA) through professional development.

DEVELOPMENT DEFINED

Prof. Mcney (2001) of Harvard university states that why training of an employee is for immediate advantage, development of an employee is for future performance.

Prasad (2006), Employee development is a joint, on-going effect on the part of an employee and the organization for which he or she works to upgrade the employee’s knowledge, skills and abilities. Successful employee development requires balance between an individual’s career needs and goals and the organization’s need to get work done.

Isyaku (2000) looks at employee’s development as n on-the job activity(s) aimed at increasing employee understanding of the job for a better organizational performance. It is an individual thing which translates to the attainment of the organization’s goal.

DIFFERENCES BETWEEN TRAINING & DEVELOPMENT

Prasad (2006) states that training and development are closely interrelated terms that aim to help in achieving the objectives of the company while at the same time increasing the efficiency and productivity of the employees. Though similar in a broader sense, there are differences between training and development.

Training is imparted so that employees understand their roles and responsibilities and learns to perform the tasks entrusted to him/her with ease and with efficiency. It is only after a brief training period that a new employee is able to perform his job at a satisfactory level.
Training makes an employee more productive for the organization and is thus concerned with his/her immediate improvement.
Development of an employee is an ongoing process which continues well beyond training. The focus of development and process is the person himself where the focus of training is the organization.
Development concerns with making the employee efficient enough to handle critical situations in future.

Isyaku (2000) states the differences between training and development as follows:

Training concentrates on short term needs of the organization, while development looks after long term goals of the organization.
Training often takes place in groups, and is an event that is variously called as workshops and seminars. However, training can also be one or one when supervisor instructs a new employee on a machine. Sometimes a manager deliberately pairs up a new employee with an experienced one. This is done to make the new employee learn to do things correctly. This can be termed as employee development.
Sometimes, development refers to techniques such as management, breathing exercises through Yoga and meditation that are not directly relayed with the production process of a company but play an important part in the development of an employee.

Lucas and Olaniyi (2006) gave three (3) main distinctive features of training and development as:

While training is an event, development is a process.
Training focuses on short term goals of the company while development focuses on the employee as a person.
While training results can be measured in terms of benefits to the organization, the advantages of development are much more subtle.

TRAINING AND DEVELOPMENT NEEDS

According to Boydel (2000) the word “need” implies that something lacks and can be supply by training. He concludes that a training need exist when the application of systematize training will seem to overcome a particular worker. Thus, it could be said that training need is a situation where a gap exist or is noticed between the actual performance and the expected performance (i.e. standard set) of a worker in an organization, this could be in either set standards or future performance (expected).

The followings are the methods that determine training needs:

PERFORMANCE APPRAISAL: This is a process of checking individual performance to see whether there is a gap.
CHANGE IN PRODUCT: There are cases where organizations decide to switch to a different product or introduce a new product to the market, thus training need.
CHANGE IN EQUIPMENT AND FACILITIES: As technology advances, new equipment and facilities tend to be introduced. This will require training employee on the use of the new equipment.
A NEW FORMAT OF PRODUCTION: Technological development can also create new format of producing a particular product. An organization that decides to adapt to such format would find it necessary, to train its workers for such purpose.
PROMOTION: Promotion of workers from one cadre to another, one level to another may likely necessitate training. It means workers would now have larger and higher responsibilities that requires training.

KINDS OF TRAINING NEEDS

According to Boydel (1997) the word “need” implies that something is lacking while “Training” further implies that this lack can be supplied by training. Thus training includes:

Individual Training Need: This entails the type of training needed by individual based on the deficiencies identified on his knowledge, skills and attitudes.
Occupation Training Need: This involves a group of individuals within the organization that occupies similar position and perform similar functions in terms of their basis of entering requirement.
Training Need at Organization: Since individual make up an organizational, the totality of individual needs make-up the Organizational needs. Therefore, Organizational need exists if in a particular department, division, there exist an impediment which hinders the achievement of organizational objectives and which can only be supplemented by a systematic training and development.
Present Training Needs: These are those needs that could be achieved immediately. These are needs discovered as a result of deficiencies in the present situation. For instance, where a worker is not performing very well at his current job, his present training needs will be knowledge, skill and attitude to gulf his performance as expected.
Future Training Needs: These include those needs required by employee to perform based on demands in an employee’s job. For instance, an assistant executive officer will require a knowledge, skill or attitude that can enable him/her to occupy the position of an executive officer in future.
Off – House Training Needs: These are the needs that could be met only in organization other than the employee’s organization. Such organization could be training institutions i.e. Industrial Training Fund (ITF) or Centre for Management Development (CFMD). However, training actions should be in response to leg mate business related to needs.

METHODS OF TRAINING AND DEVELOPMENT

i) METHOD OF TRAINING

Adeniyi (1997) identified the followings as the method of training and development of employees in an organization.

On the Job Training or Coaching: This is related to formal training on the job. A worker becomes experienced on the job overtime due to modification of job behaviours at point of training or skills acquisition.
Induction/Orientation: This is carried out for new entrance on the job to make them familiar with the total corporate requirements i.e. norms, ethics, values, rules and regulations.
Apprenticeship: This is a method where an unskilled person understudies a skilled person to acquire the technical know – how of performing the task.
Demonstration: Teaching by example, where by the skilled workers perform the job and the unskilled closely observes so as to understand the job.
Vestibule: This is done through industrial attachment for the purpose of skills and technology transfer. It is therefore achieved through placement of an individual within another area of relevant work or organization. The effect is the acquisition of practical and specialized skills.
Formal Training: This is a practical and theoretical teaching process which could be done within or outside an organization. When training is carried out inside an organization, it is called an in – house training. Off – house training is carried out in professionalized training areas such as Universities, Polytechnics, and professional institutions.

ii) METHODS OF DEVELOPMENT

Adeniyi (1997) identified method of development as slightly different from methods of training. The followings therefore are identified as the methods of employee’s development:

Under – Study: This is good for succession planning. This allows for smooth transition of work when one officer leaves a schedule or organization.
Job – Rotation: It is necessary for all workers to move from one schedule to another within the same organization, to allow for competence on all spheres of work.
Self – Development/Self Assessment: Self development means a personal desire to improve through an individual’s attempt to embark on a study and practical explosive that are independent of an organization’s role and contribution. Self assessment means a personal identification of strengths, opportunities, weaknesses and challenges and an attempt to improve and build on current effort for a more fulfilling corporate movement, staff training and development.

2.8 FACTORS MILITATING AGAINST TRAINING AND DEVELOPMENT

Having critically studied Training and Development in full scale, those factors that could hinder the success of Training and Development must be discuss to have the subject matter fully trashed. Those factors militating against Training and Development as explained by Prasad (2006) are:

Lack/insufficient fund
Absence of staff development policies
Qualification problem
Misplacement of personnel
Unmatched policy
Management commitment
LACK/INSUFFICIENT FUND: Prasad describes this as the greatest factor militating against Training and Development. Training need must have been identified training need may be lacking completely or insufficient. As a result hindering the attendant benefit of Training and Development.
ABSENCE OF STAFF DEVELOPMENT POLICIES: An organization which must excel in it operations must have a policy in place backing and stating procedure for staff development. Absent to have this policy in place could militate against training and development.
QUALIFICATION PROBLEM: Staff Training and Development could be hindered when such staff did not have the require qualification to assume an office or attend a training.

It is a two way event. Even the trainer could lack the (qualification) i.e. training, expertise, experience to train thus hindrance to Training and Development.

MISPLACEMENT OF PERSONNEL: After recruiting an employee and selecting such employee for an organization. The next huddle is placement. If an employee is wrongly placed in the organization, the goal of “matching theory” will be defeated which automatically affect such employee’s output. Therefore, standing as a clog in the attainment of what T & D is meant to achieve.
UNMATCHED POLICY: Organizations Training and Development policy may be parallel to the goals and objectives of the organization. Therefore standing as a factor militating against Training and Development.
MANAGEMENT COMMITMENT: For the purpose for which Training and Development is set up to be achieved, Organization must show a practical commitment towards the attainment of this purpose. Management on its own part must show great and sincere commitment towards Training and Development.

2.9 EFFECTS OF TRAINING AND DEVELOPMENT ON EMPLOYEE’S MORALE

Prasad (2006), low employee morale can lead to high employee turnover.

Every time you need to replace an employee it cost you money in severance pay for the old employee, as well as the cost of living and training new employee. While some employee turnover is an inescapable part of business, some factors, including low morale, can lead to increased employee turnover, keeping morale high can help you to avoid unnecessary turnover and increase the productivity and loyalty of your employees.

There are steps businesses can take to increase morale and decrease turnover. The Missouri Technology Centre notes that some of the most important ways of reducing turnover through boosting morale including having in place adequate training and career development for employees.

James Heskett, W. Earl Sasser & Leonanrd Schlesinger (2001) wrote that: By offering continuing education and training, a company demonstrates that they are invested in the employee and that the relationship between the company and employee is a two way street. This has a real impact on loyalty. If you have loyal employees, they are willing to work hard (increasing productivity) and stay with you longer (reducing hiring and training cost, as well as potential liabilities from disgruntled employees).

STAYING CURRENT à LESS RISK: Training programs keep employees current with new rules and policies, leading to better compliance and risk management. This can help prevent costly mistakes and/or minimize exposure to expensive litigation. Clients or customers are better served, too, by more informed employees.

CAREER ADVANCEMENT: Ongoing education helps prepare employees for promotions or other career advancements. Companies that promote from within often enhance employee loyalty significantly. It also less expensive to promote a worthy employee than hire someone new because the learning curve is so much shorter.

Conclusively, a trained and developed employee is a happy employee and a happy employee is that employee who puts in his/her best towards attainment of the organization’s goal. When morale is high, it has the following multiplying effects:

High productivity
Good customer relations leading to high customer patronage
High turnover (in terms of sales)
More profit for the organization
Increase in employees take home reducing employee’s turnover
Growth of the organization.

CHAPTER THREE

RESEARCH METHODOLOGY

RESEARCH DESIGN

The research design for this study followed a pattern of survey research and descriptive research. The survey research method is used in this study. This is considered appropriate because survey design generally can be used to effectively investigate problem in realistic settings. The survey design provides the researcher with the accurate description of the respondents, opinion the survey several variable and uses multivariable artistic to analyze data.

RESEARCH POPULATION

At the point of writing the project, (precisely 14/2/2012) the Kaduna Refining and Petrochemical Company (the case study) have about one thousand, three hundred and twenty (1, 320) staff including management, senior staff and junior staff.

SAMPLE SIZE AND SAMPLING TECHNIQUES

As earlier stated, the population of Kaduna Refining and Petrochemical Company (KRPC) is 1320. For the sample size, we used Roscoe’s (1975) rule of thumb that says that 10% of total population is appropriate for this type of social research work. In this case, the sample number becomes 132. therefore, questionnaire were administered on 132 respondents but only 84 respondents submitted their completed questionnaires.

METHOD OF DATA COLLECTION

There are various research work methods but for the purpose of this project work, the researcher adopted the method of collecting data through personal interview and questionnaire.

JUSTIFICATION OF METHOD USED

The researcher found it very necessary to use the questionnaire method as it serves as the most convenient method of primary data collection. This is because it is said to be convenient and accurate for data collection in the sense that it enable the researcher of the project to obtain detailed descriptions of what is required from the respondents and even which the researcher has no previous knowledge upon. A substantial data was gathered through this method except that the researcher encountered difficulties with some officers who refuses to return their questionnaire which is one of the disadvantage of this method.

Close – ended questionnaire is a situation whereby certain questions that requires specific answers are drawn for the respondents to choose from the suggested alternatives or by either ticking the right answer’s box.

The researcher designed and administered many questionnaires to different category of employees in the organization. The category of employees includes top management, middle levels and lower levels and they all responded differently.

METHOD OF DATA ANALYSIS

The statistical methods of data analysis were used to transform the raw data into meaningful form. In analyzing the data collected, the researcher used a simple percentage (%) and chi – square (χ²) to analyze and interpret each response. The simple percentage was used to analyze and interpret each response in relation to the overall responses expressed as percentage. Thus, it is represented by the formula below:

a) No of Respondents X 100

Total No. of Respondents 1

The chi – square testing can be use when the researcher wishes to compare an actual and observed distribution with hypothesis distribution, it is represented by the formula:

b) X² = ∑(O – E)²

Where:

X² – Chi – square

O – The observed frequency

E – The expected frequency

∑ – Summation

The chi – square value observed from the formula is compared with value from chi – square table, which is shown below:

Level of significance = 0.05

Degree of freedom = (c -1) (r -1)

Where: C – No of columns

R – No of rows

DECISION RULE: If the calculated chi – square is greater than the value of the observation from chi – square table, we reject the null hypothesis (H₀) and accept the alternative hypothesis (H₁).

JUSTIFICATION OF INSTRUMENT USED

The researcher used simple percentage for rate of responses and chi-square method as procedure for statistical analysis and it helps to present the original data collected and present the data in an orderly or systematic manner.

These tools are sued to summarize or condense a mass of data. It is also used to aid decision making. The table eases the comparison made by the researcher between different classes of data and makes further analysis of data possible.

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