The oil industry is one of the most rapidly
developing sector of the economy in Nigeria. This research study was carried
out in order to ascertain the impact of human resources planning and accounting
in organization development. To this end, a typical oil exploration industry,
the Mobile Oil Nigeria PIc was chosen.
To acquire the necessary material for the study, the
researcher relied heavily on expert’s suggestion on the subject. Many textbooks
journals and bulletins written by prolific writers in the field of management
The researcher, however, formulated working
hypothesis to be used in the study in order not to deviate from the main topic.
The hypotheses centered on the impact of human resources planning and
accounting programs on the moral, confidence, speed, turnover quantity and
quality of output of the organization. Questionnaire and personal interview
were used as the main instrument of gathering data. The main data collected
were analysed in the table using percentage to allow for easy understanding of
.the study. The hypothesis formulated were tested using the relevant questions
at alpha level 0.05, chi-square was used.
Based on the result of the analyzed data, the
following findings were inferred.
(i) That effective human resources
planning contributes significantly to organizational effectiveness.
(ii) That human resources planning increase the rate of employee turnover in an
(iii) That proper human resources accounting allows management to value
development of personnel that leads to organization efficiency.
(iv)That proper human resources
accounting prevents maltreatment of employee by officers in the management
In conclusion, recommendations were offered which
will be of tremendous use to the management of Mobile Oil Nigeria PIc in
particular and all employers of labour in general.
Table of content
1.1 History of the company
1.2 Statement of problem
1.3 Research Questions
1.4 Statement of hypothesis
1.5 Purpose of study
1.6 Significance of study
1.7 Scope and Limitation of study
1.8 Definition of terms
CHAPTER TWO: LITERATURE REVIEW
2.1 Human resources planning and accounting
2.2 Principles of human resources management
2.3 Implementing human resources plans
2.4 Benefits of human resources accounting
2.5 Evaluation of human resources planning and
2.6 The demand of human resources
Reservation about human resources planning and accounting
2.8 Application of human resources
planning and accounting
The supply of human resources
2.10 Defect of financial statement
Concept of human resources cost
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research method
3.2 Population of study
3.3 Sample size
3.4 Sample technique
3.5 Method of data collection
3.6 Design of questionnaire
3.7 Reliability of questionnaire
3.8 Validity test
3.9 Data editing, recording and tabulation
4.1 Analysis of personal data
4.2 Analysis of research questions
4.3 Test of hypothesis
SUMMARY RECOMMENDATIONS AND
5.3 Suggestion for further research
1.0 BACKGROUND TO THE STUDY
Management can be defined as the art of getting
things done through people. For any organization to operate efficiently, it
must have money, material, machine and man (Human resources) to run the' organization. Management can also be referred to as a process of
using both human and non-human resources to achieve organization objectives.
Among these inputs, human resources is the most important in any organization.
Man creates the organization, guide and direct its course, vitalize and
revitalize it. Man make decisions concerning all the organization resources,
for instance, man operates the 'machines, raise the money and come up with ideas about the
service or products to offer those who might need
them, which in turn gives the organization its purpose (Profit).
Therefore, for any organization to attain the set
down objectives and goals, there should be qualified personnel to manage the
affairs. In order to provide for this manpower (human resources), the personnel
department must plan the recruitment, selection, training and development
activities in advance. Human resources planning and accounting serve the
purpose of assisting the personnel department in improving the present and
future performance. In response to this, human resources planning and
accounting projects the size and composition of organization future work force.
The organization then trains employee to fill the forecast vacancies.
The basic purpose of planning in an organization is
to select the course of action best suited to meet objectives and goals set. Therefore, the process by which an organization ensure that it has the right number of people and right kind things for which they
are economically most useful is known as human resources planning (HRP).
This can be done in two ways; internal and external
sourcing. From the definition above, one. can easily conclude that
effectiveness 'of an organization depend upon the skills and caliber of
employees who are dedicated to a common purpose and also that, human resources
planning and accounting does not involve anticipating needs and implementing plans.
Although, human resources planning and accounting
seek to help organizations to source in the environment in which they operate,
the benefit of it may extend throughout the organization and develop the
organization for future responsibilities in the society.
Human resources accounting (HRA) means accounting for people as an
organizational resource. This involves ascertaining the cost incurred by the organization to
recruit, select, hire, train and develop its work force. It also involves measuring the economic value of
people to the organization.
Human resources planning and accounting is important to any organization because of the numerous advantages to be
benefited by organization that makes provisions for human resources. Match
personnel activities and future organization objectives efficiently and so on.
However, that is the reason why in Nigeria today, effort are being made by the
government in order to ensure that human resources planning is not the business
of educational institutions alone but also the responsibilities of other
institutions capable of performing human resources functions. To facilitate
this effort, ministry of labour, employment, productivity and industrial training
fund were established by the federal Government to ensure that there is
adequate trained manpower to run industry and commerce in the great nation.
However, human resources planners cannot formulate
its plans without considering the plans functional areas, and the activities of
other departments bear directly on the numbers and categories of employees
needed, their wages salaries and their training requirements. Its goals must be
coordinated with the planning of other department.
Research has shown that lack of human resources
planning and accounting in an organization often leads to shortage of personnel
or labour turnover. In fact, high turnover results from clash between what the
human resources planners expect and what their jobs actually offer them. If
human resources planners perceive the organization to be ineffective, unwanted or unneeded and have similar negative feelings, they seek to deal
with them by sourcing.
Research has also shown that, the efficiency of any
organization depends directly on how well its human resources planned recruit.
It moves the organization to an effective ladder, employ employees who
understand their jobs and have higher morale, also employees will be able to
see a closer relationship between their effort and performance.
Human resources planning and accounting is not
without its own problems. Many variables beyond an organizations control can
change and lead to fluctuation in the supply of labour. Most organizations
encounter various problem in their attempt to project for present and future
work force. In this project, however, an indept study will be made to discover
the various problems faced by "Mobil Oil Nigeria PIc" a subsidiary'
of EXXON Mobil Corporation, in planning its human resources and provide· necessary
solution to the problems.
As a result of the above facts, it becomes necessary
to conduct a research into the impact of human resources planning and
accounting as it relates to the survival of an organization in a typical oil
HISTORY OF THE COMPANY
Mobil Oil Nigeria plc. Is a subsidiary of EXXON
Mobil Corporation. It operates from its head office at Lekki Express way,
Lagos. Mobil Oil Nigeria (MON) was incorporated in 1985, but its history was
actually dated back to 1907 when Socony Vacuum Oil Company (SVOC) began
unbroken service to the community through sales of “Sunflower Kerosene”.
In October 1978, Mobil Nigeria became a public
quoted company with 40% of its share being sold to the Nigerian public and 6.0% retained by Mobil
Oil Corporate in Fairfax Virginia of 'the United State of America (USA). Today,
Mobil Oil Nigeria pIc markets a wide range of petroleum product with over 200
downstream outlets spread all over the country. It supplies fuel and lubricants
to state Government and other large industries.
Mobile Oil Nigeria PIc has manufacturing facilities
at its Apapa terminal, which encompass a modern aerosol in insecticide plan,
Lube Oil Blending Plant (LOBP) and Petroleum Jelly (PJ) Plant. Apart from this,
it is also into real estate and chemicals sales.
To ensure that all selling activities of the company
are efficiently and effectively administered, branch offices have been
established in Apapa, Kano and Port Harcourt. The company has achieved an
outstanding success and development. From its commencement in 1955, it has grown into a major group
with a turnover of 15 million dollar in the 1997/1998 Fiscal Year.
Mobil Oil Nigeria plc. invests funds in
environmental and safety projects. It also sponsors events like Nigeria Mobil track and field championship. The company, in order to enhance the
competence of its employees in the performance of their duties and also prepare
them to advancement and future responsibilities, organizes· and provides
training for them. It is also the company's policy to train student in
accordance with the Student Industrial Work Experience Scheme (SIWES). Over the
years, the company has been able to map out a good programme layout for
students on industrial training, both in industrial designs and other
1.2 STATEMENT OF PROBLEMS
Many organization try as much as possible to operate
human resources planning (man power planning) department and accounting for their
worth in order to get the maximum performance from employees. This makes the
organization to ensure that human resources planning department enjoys at minimum
cooperation from the management. The management constantly improves the welfare
and ascertaining the cost incurred by organization to recruit, select, hire,
train and develop its work force.
Despite all these effort by management to retain
this department and at the same time improve their performance and ascertain
their cost they still perform below exception.
1.3 RESEARCH QUESTIONS
The problems stated below are
identified to necessitate this project:
ii. How job vacancies are to be filled and selected.
iii. How to forecast for future human resources needs.
iv. How human resources accounting are to be evaluated and assessed.
v. How accounting procedures treat expenditure on building up human assets as
expenditure of revenue nature.
vi. How human resources accounting benefit the organization.
Hypotheses are tentative statement about the
universe. Which may, not' be true. For this study the following are the
hypotheses this project will be based on:
effective human resources planning contributes significantly to Organizational
human resources planning Increase the rate of employee turnover in an
proper human resources accounting allows management to value development of
personnel that leads to organization efficiency.
proper human resources accounting prevents maltreatment of employee by officers in the
There is need for human resources planning and
accounting in an organization in order to avoid occupational Hazard resulting
from employers' incompetence. The organization see the need for human resources
planning and accounting as means of achieving increased efficiency in
production, increased employees morale and reduced labour turnover and improve
Some organizations, knowing the statutory and
organization necessities for human resources planning and accounting now engage
on wide programme of human resources planning in their organization.
Surprisingly. Some organizations cannot specifically
pin point what they have achieved through human resources planning and
accounting programmes. They cannot also pin point what they have expended on
recruitment, induction, training and development of personnel. Even the value
of this asset is not shown in the balance sheets or accounted for in earnings,
nor is any rate of return calculated on it. The reason for this is not far from
the fact that, they have low level of appreciation of the importance of human
resources planning and accounting.
On the other hand, some organization knowing the
importance of human resources planning and accounting, first of all set out
identified human resources programs accordingly.
This study is therefore aimed at achieving the following purposes:
disclose to the organization the importance of a well-planned human resources
planning in an organization survival.
(ii) To make the management understand the invaluable effect of a well-planned
human resources program to the employee and organization as a whole.
(iii) To allow management to value hiring, training, development and
replacement decision on the basis of a realistic cost benefit-platform.
To disclose to the, organization how valuable its human resources is,
and to treat human resources explicitly as a form of capital investment.
allow management to make it appear in the balance sheet and income statement of
an organization that adopts the concept of human asset accounting.
This study will be of importance to the management
of Mobil Oil Nigeria PIc, since it' unfolds the extent to which the human
resources planning programs organized by the company have affected the organizations survival in the Oil industry environment. In fact. It will serve as a means of evaluating the
extent of success of human resources accounting programs so far under taken by
The study will also be of great importance to other
organizations, since it will disclose to them the need to have a purpose for
human resources" planning and accounting programs.
1.7 SCOPE AND LIMITATION OF STUDY
The project would be based on human resources
planning and accounting program as it affects the Mobil Oil Nigeria PIc. Apapa,
Lagos State. And the result of the study would also be based on the assumption
that respondents would honestly and accurately answer the survey questionnaire.
No research work could be said to be perfect without
its own short comings, thus the short falls of this study are:
results could be obtained while using same instrument at two different time due
to the dynamic nature of respondents' behaviour.
1.8 DEFINITION OF TERMS
- This is a process of keeping, analyzing, presenting financial and other
is the formulation, evaluation and selection of strategies to achieve a
targeted objective or goal.
- This is a person employed by another. He receives wages and salary from his
employer (business organization).
(D) HUMAN RESOURCES: - This is the work force
available for an organization to do certain job.
TRAINING:- This is the process of training new or existing workers in an
DESCRIPTION: - This is the description of what a job involve and the skill
needed for it.
- In the context of this study, organization is the business unit.
- This is the process of searching for and appointing new staff to join an
- This is the special ability to perform a required task.
(J) SURVIVAL: - This IS the ability of an
organization to continue to exist.
(K) TRAINING: - This is an act of going through an
exercise in order to 'acquire skill.
1.9 DATA ANALYSIS
Data analysis technique is a vital aspect in
research efforts. It serves as the core of resources, for the fact that it
gives meaning and- shape to the raw data collected during the data collection
In this project, the percentage method would be used
to analyze data collected from respondents and the information obtain from the
respondents would be qualified with numerical scores and then convert to
To test, data relating to the hypotheses, the
chi-square method would be employed and the research findings would then be