1.1 HISTORICAL BACKGROUND OF THE STUDY
In the early 1970s many companies were planning significant expansion. During this period such companies were quick to realise that the key to success was an adequate supply of appropriately skilled people. This led to the emergence of human resource planning as a personnel management tool. Manpower planning is the process of ensuring that the correct number of human resources are available at the right time at the right place. Companies attempt to forecast their human resource requirements for the medium, to long term. In order to do that they need appropriate analytical tools. Much effort was devoted to developing tools and techniques to assist managers with their planning. Many of these were based on the theory of stochastic processes and more specifically the concept of Markov chains [Bowel, 1974].
In large organisations the flow of individuals between the various ranks is a task which requires careful and detailed monitoring. Over a number of years patterns of behaviour may emerge and in many cases the role of manpower planning is to build a picture of such resource flows. In a stable environment where the features and characteristics of product and labour markets are expected to evolve in a predictable and orderly fashion, a model of long-term patterns of employment within the organisation would emerge. This would show the expected number of retirements, the expected turnover of staff, within departments and the average number of staff which leave for involuntary reasons. This can give a broad and rather basic picture of staff turnover. Hence it can also be used to provide valuable information on timings and rates for replenishing staff. To sum up, to maintain stable levels of employees over time management, required data on where, when and how many employees need to be recruited.
One of the major problems confronting the Nigerian nation is lack of effective management. It is not less stating the fact, if we say we lack effective management of the Nigerian economy because we fail to develop our management manpower. Quite a number of people are put in responsible management positions with little or no formal or even management education, even at the rudimentary level Umoru-Onuka (2001a) placed emphasis on the need to give adequate management education to those who are either put in management positions or who aspire to become managers. Invariably, therefore, the need for well-educated management personnel, in an era of globalisation hardly needs being emphasized, unless the economy wants to remain perpetually underdeveloped. It is also noteworthy that management, according to Umoru-Onuka (2001b), is largely a communicative profession and is to very large extent information based.
Organisations tend to be hierarchical with a finite number of levels (ranks). Humans are considered as the most crucial, volatile and potentially unpredictable resource which an organisation utilises. If an organisation fails to place and direct human resources in the right areas of the business, at the right time, and at the right cost, serious inefficiencies are likely to occur creating considerable operational difficulties or even business failure.
The situation is more crucial in Nigeria, where there is scarcity of qualified manpower to fill existing positions. Manpower planning is very compelling to effectively and efficiently utilize whatever personnel that is available. It is mainly in this way that people in the organization who need more training could be identified to upgrade their skill in order to assume more responsible position. It would also aid the organization to start very early to seek and find capable hands to replace those about to retire to cushion the effect of their departure from the establishment.
This Project work intend to identify the impact of manpower planning on organizational development, this would require identifying the challenges faced by organizations in Nigeria in deploying a proper manpower planning, and suggested solutions would be recommended.