CHAPTER
ONE
INTRODUCTION
1.1 Background of the study
Increasing
competition is continually pushing businesses towards more efficient processes,
and slimmer margins. Highly capitalized industries have to ensure that their
resources are used most effectively. Yet at the same time, businesses must
adjust to rapidly changing customer requirements and supply chain conditions.
The key to achieving operational excellence,
therefore, is in the effective and flexible management of resources, and
this means optimizing and scheduling people, processes, vehicles, equipment,
and materials so that utilization is maximized while business goals are met.
Rowden
(1995) define resources management as the process
of using
a company'sresources
in the most efficient
way possible. These resources can includetangible
resources such as goods
and equipment, financial resources,
and labor
resources such as employees.
Resourcemanagement
can include ideas
such as making
sure one has enough physical resources for one's business,
but not an overabundance so that products
won't get used, or making sure that people are assigned to tasks
that will keep
them busy and not have too much downtime.
The wealth of any
organization is to a very great extent determined by its human resources. The
place and value of human effort as a resource for any organizational
productivity, efficiency and effectiveness in operation cannot be over
emphasized. This capacity building
developing and maintaining well trained, skilled experienced and quality human
resources that will carry out the various task of the organization becomes an
issue of importance.
One of the major
constraints to organizational development is lack of adequate and effective
managed human resources. It was not surprising therefore when the third
national Development Plan of the Osuji 1975 – 1981 as aptly documented by
Zahradeen (1980) echoed that successful implementation of a development plan
either at organizational level, or national Level depends not only on the
availability of financial and other capital input, but more importantly on the
adequacy of well trained, and managed human resource in various occupation.
Ugbana
(1986), most of the organizations both public and private are beginning to
realize the significance of material management. In most organizational balance
sheet, it would be seen that the materials carries the lion share of the total
expenditure representing about seventy percent (70%) of the organizational
resources while cash represent twenty percent (20%) and other forms of the
organizational expenses carried ten (10%). But amazingly it is found that most
organizations takes good care of cash by providing it with high security than
materials irrespective of its highest share of organizational resources.
This should not be
so; materials which have the lion share of the organizational resources should
be provided with adequate security and should be managed properly by competent
and efficient personnel (Ammer 1996). At the wake of 20th century
many organizations had recognized the role of materials and most material
activities were carried out by autonomous department such as purchasing,
warehousing, stock control, and distribution which at the same time was
creating problems.
In Nigeria there has been series of
changes in the managerial capabilities and operations towards financial
management with the recent years, the noticeable changes are complex. Eminent
Nigerians of various caliber have dealt with the failure trend to financial
management of enterprises in Nigeria from deferent perspectives, for example,
the banking industry has experienced problem of various types such as fraud,
mismanagement of funds which leads to poor overall performance. There and other
problems formed the basis for inadequacies in financial management.
Some
analyst has classified these causes in a member of ways as factors militating
against proper financial management and progress in privately owned enterprises
in Nigeria.
As development
proceeds and the structure and organization of the economy become increasingly
complex, the failure of financial management assures increased complexity. As
many factors have been identified it will enable the researcher to ask how and
why these causes have surfaced. What are the conditions for proper financial
management
It
is against this background that the researcher investigates the role of
resources management on organizational development.
1.2 Statement of the problem
The challenge in most organizations has posed a
threat on the realization of its development and the achievement of its set
objectives. This is as a result of fundamental issues of inadequate and
improper acquisition, utilization and maintenance of resource.
The underutilization of Resources in Coca-Cola
Company has seriously led the organization into a mess because resource is not
properly managed. Mismanagement is another serious problem facing our
organization today and has reduced it to nothing as people are no longer kin
with their work nor ready to own up to vital Resources in the organization.
Both public and private organizations are usually
faced with problems of managing their material resources effectively starting
from the point of procurement to stores, issuance to user departments and
finally the finished goods. These material resources are scarce and should be
utilized properly for proper assimilation.
The
factors that contributed or that are responsible for the failure of different
companies have different problems. Financial resource management is neglected
and has made most organizations to lose a substantial part of their fund
through these enterprises because of Fraudulent act, Indiscriminate financing,
Poor management, Lack of zealousness and experienced personnel and Inability to
utilized its financial potentials etc.
The poor quality and low quantity of product have
revealed that the quality of Human and material resource put in place in
organizations are not up to expectations and has thereby reduced the company
productivity.
1.3 Significance of the study
The
significance of the study brings out the need for an organization to constantly
develop means of budgeting resources for organizational development.
The
importance aspect of the study includes the following:
a.
It will assist managers to know the
need for human resource training and development and ensure that the right
numbers of skilled/trained manpower are available for employment at the right
time for all levels in the organization.
b.
The study, will contribution
positively at the rate at which, how resource can be effectively utilized and
how it can bring about high productivity in the organization.
c.
Students aspiring to be a material
executive in the future see this study as an opportunity to fully investigate
into the field of human, material and financial resource management to see the
challenges therein.
g. It
also hopes that the study will assist future researchers of resources
management and how it can leads to organizational development.
1.4 Objectives of the study
1. To determine if there is a
significant relationship between effective resource budgeting and project
management.
2. To ascertain if effective resource
budgeting is a tool for project management.
1.5 Research questions
1. Is there a significant relationship
between effective resource budgeting and project management?
2. Does effective resource budgeting
serve as a tool for project management?
1.6 Research hypotheses
Ho:
There is no significant relationship between effective resource budgeting and
project management.
Hi:
There is a significant relationship between effective resource budgeting and
project management.
Ho:
Effective resource budgeting is not a tool for project management.
Hi:
Effective resource budgeting is a tool for project management.
1.7 Limitations of the study
The study was limited by two major
factors; financial constraint and time. Insufficient fund and time tends to
impede the efficiency of the researcher in sourcing for the relevant materials.
Inaccessibility to the management of Coca-Cola company was also a challenge in
theprocess of data collection.
1.8 Scope of the study
The study focuses on effective resource
budgeting as a tool for project management using Coca-Cola bottlingcompany as a
case study.
1.9 Definition
of terms
Effectiveness:
This refers to the degree to which something is
successful in producing a desired result
Resource:This is something that a country or an organization has and can
use to increase its wealth.
Budgeting:This is an estimate, often itemized, of expected income and
expense for a given period in the future.
Project
Management:This
is the application
of processes, methods, knowledge, skills and experience to achieve the project objectives.