Strategic Human Resource Planning And Performance Of Small And Medium Enterprises (SMES)

Strategic Human Resource Planning And Performance Of Small And Medium Enterprises (SMES)

Chapter One

Preface

Background of the Study

The performance and growth of small and medium enterprises( SMEs) is a major motorist and indicators for the position of industrialization; modernization; urbanization, economic and meaningful employment for all those who are suitable and willing to work, indifferent distribution of income, the weal, income per capital and quality of life enjoyed by the populace( Aremu and Adeyemi, 2011); this is because SMEs contribute to employment growth at a advanced rate than larger enterprises( Farouk and Saleh, 2011). The SMEs sector with global recognition is view as an important force of driving the profitable growth and employment creation in both developing and developed countries( Ariyo, 2008; Kpleai, 2009).

Whether SMEs or larger enterprises, associations are moment getting decreasingly apprehensive of the place of strategic mortal resource planning( SHRP) in operation. This mindfulness in a system is a critical dimension in the performance of associations. The real life gests substantiate the supposition that no matter how sophisticated and ultramodern the business conditioning of the association may come, it’ll be extremely delicate to sustain its growth and effectiveness unless there are strategies and plans that round its operations( Rees, 2006).

The history of planning is as old as man himself. Planning has started from the ancient period during the primitive period when there were no diligence or enterprises. Planning is the process of setting pretensions, developing strategies, and outlining tasks and schedules to negotiate the pretensions of an association. It includes the selection of ideal, programs, procedures and programmes from among volition. A plan is a determined cause of action to achieve a specified thing. It’s an intellectual characterized by allowing before doing.

According to Terry( 2002) planning is a nonstop process and there’s no end to it. It involves nonstop collection, evaluation and selection of data, and scientific disquisition and analysis of the possible indispensable courses of action and the selection of the stylish volition.

Through planning, association pretensions and objects are determined; the resource available must be strategic to achieve the pretensions and objects. An organisation without planning becomes arbitrary in nature and opinions come pointless and ad hoc choices( Koontz and O ’ Donnell, 1972).

Strategic mortal resource planning( SHRP) is a methodical analysis of mortal resource needs in order to insure that correct number of workers with necessary chops are available when they’re needed( Igbinomwanhia, 2010). The mortal resource department of small and medium scale enterprises( SMEs) complete several tasks applicable to its workers including collecting of information, creating objects, pretensions and making conclusion in order for the business to achieve its pretensions. The reason for using strategic mortal resource planning in SMEs is to find out how numerous workers do the business have, what kind of workers the enterprise have, how an enterprise should use their available coffers and how can the enterprise stay and maintain its workers.

In this way, strategic mortal resource planning( SHRP) is used to totally and continuously assay a establishment’s mortal resource needs under shifting conditions and developing pool programs suitable to the longer term effectiveness of the association in a shot to achieve better commercial performance( Fajana, 2002).

thus, this exploration investigates the effect of Strategic Human Resource Planning on Performance of small and medium enterprises( SMEs).

Statement of Problem

Inadequacy of Human coffers Planning has been cited as the reason why utmost small and medium enterprises( SMEs) moment are facing a chaotic situations as they didn’t at onset plan their pool neither did they’ve any methodical mortal resource( HR) operation programme that put the associations pretensions first( Anyadike, 2013). Performing from this is the abating in business performance and productivity which is giving entrepreneurs, government and other stakeholders beget to worry and work each around the timepiece. The cause of this unfortunate development is primarily a lack or absence of strategic mortal resource planning( SHRP). still, what differently can explain the sharp increase in workers strength as soon as any new principal superintendent emerges?

If not.

Another abecedarian problem facing SMEs organistions in Nigeria is the deficit of good mortal coffers as a result of poor planning. mortal coffers being the set of individualities that makes up the pool in the association and makes productivity to take place must be well planned for and must be placed in the applicable positions in other to be effective.

Whether in fact the use of strategic mortal resource planning( SHRP) affects SMEs performance appreciatively or negatively in practice for the typical enterprises is an empirical question that remains open. It’s on this premise that this study seeks to explore the effect of Strategic Human Resource Planning on Performance of small and medium enterprises( SMEs) in Nigeria with particular reference to Alaba informal artificial sector in Lagos State.

Objects Of The Study

The major ideal of this study is to examine the effect of strategic mortal resource planning on organisational performance in named SMEs in Alaba informal artificial sector in Lagos State. While other specific objects are

identify the force planning programs and crucial performance pointers in SMEs in Lagos

examine the effect of strategic mortal coffers planning on organisational profitability.

assess the part of force planning on hand commitment in the SMEs sector

identify current challenges of enforcing strategic mortal coffers planning amongsmall and medium enterprises( SMEs) in Nigeria.

recommend strategies for enhancing mortal coffers planning for effective performanceof SMEs in Nigeria.

Exploration Questions

The undertaking of this exploration design will beam a searchlight on the following exploration questions;

1. Does strategic mortal coffers planning have any effect on productivity among SMEs in Lagos?

2. To what extent do effective mortal coffers planning influences organisational profitability?

3. What’s the relationship between force planning and commitment in the SMEs sector?

Exploration Hypotheses

The under listed suppositions will be tested in the course of this exploration.

thesis One

Ho There’s no significant relationship between strategic mortal coffers planning and productivity among SMEs in Lagos.

Hi There’s a significant relationship between strategic mortal coffers planning and productivity among SMEs in Lagos.

thesis Two

Ho Manpower planning isn’t a significant predictor of workers ’ commitment in theSMEs sector.

Hi Manpower planning isn’t a significant predictor of workers ’ commitment in theSMEs sector.