PROJECT REPORT

TO INVESTIGATE THE IMPACT OF HUMAN RESOURCE PLANNING ON

BY
MICHAEL CHISENGA

PROGRAMME
DIPLOMA IN HUMAN RESOURCE MANAGEMENT

STUDENT NUMBER: 673391

PHONE NUMBER: +260971658590

SUPERVISOR: MR MWEENE

JULY, 2024
ABSTRACT
This study examined the impact of human resource planning (HRP) on organizational
performance, drawing evidence from Austria, Nigeria, and Zambia. The project reviewed HRP's
effects across manufacturing firms in Austria, Oriental Foods in Oyo, Nigeria, and educational
institutions in Zambia. The objectives were to investigate the influence of human resource
staffing, training and development, strategic management, and compensation management on
organizational performance. In Austria, literature-based research showed that HRP is crucial for
anticipating skill requirements and ensuring an optimal workforce balance. Poor human resource
planning often leads to inefficiencies due to unqualified hires, while effective HRP improves
performance through the strategic alignment of workforce skills and organizational needs.
Similarly, in Oyo, Nigeria, a study of Oriental Foods using a questionnaire administered to 192
respondents and analyzed via multiple regressions revealed that human resource staffing, training
and development, strategic management, and compensation management significantly enhance
organizational performance. It concluded that effective HRP implementation leads to improved
outcomes by preventing skill obsolescence and retaining competent staff through competitive
compensation and conducive work environment. In Zambia, HRP is particularly relevant in
educational institutions, where proper planning is essential to maintain a motivated and skilled
teaching workforce. Without adequate HRP, schools struggle to recruit and retain qualified
teachers, resulting in lower educational standards. However, through strategic Human Resource
planning—including proper staffing, professional development, and staff retention strategies—
the performance of educational institutions can be substantially improved. The study concluded
that HRP has a positive and statistically significant impact on organizational performance across
different sectors and regions. It recommended that organizations in Austria, Nigeria, and Zambia
invest in Human Resource policies that focus on adequate staffing, continuous training, strategic
management, and competitive compensation to sustain high performance. Both internal and
external factors must be considered to ensure that the organization remains competitive in the
labor market and maintains a productive workforce.
Keywords: Human Resource Planning, Organizational Performance, Staffing, Training, Strategic
Management, Compensation, Austria, Nigeria, Zambia.
CHAPTER 1: INTRODUCTION
1.0 Overview
In today's competitive landscape, effective human resource management (HRM) is vital for
organizations seeking to enhance their performance and achieve strategic objectives. Human
Resource Planning (HRP), a critical aspect of HRM, involves forecasting an organization’s
future human resource needs and ensuring that the right personnel are in place to meet those
needs (Armstrong, 2020). It serves as the foundation for various Human Resource functions,
including recruitment, training, and development, thus contributing significantly to
organizational effectiveness (Mansaray, 2019). This chapter presents the background of the
study, the problem statement, project objectives, and project questions, significance of the study,
and the scope and limitations of the research.
1.1 Background of the Study
Globally, there is a growing recognition that the effective management of human resources (HR)
can provide organizations with a competitive advantage (Mansaray, 2019). Human resource
planning (HRP) is a key function that enables organizations to manage their workforce
efficiently by ensuring the right quantity and quality of employees are hired, trained, and
retained. HRP involves forecasting the demand for human resources and aligning recruitment
efforts with organizational objectives (Armstrong, 2020).
In Austria, HRP has been recognized as critical for organizational performance in the
manufacturing sector. However, the inability of Human Resource managers to select the right
personnel has led to underperformance in many companies (Edeh & Dialoke, 2020). Similarly, in
Nigeria, particularly in the food manufacturing sector, ineffective HRP has contributed to
challenges like high labour turnover and absenteeism (Tende & Alagah, 2017). In Zambia, HRP
is essential in educational institutions where teacher shortages and underqualified personnel have
led to operational challenges (Shikha & Karishma, 2019).Thus; HRP is an essential component
for ensuring that organizations in Austria, Nigeria, and Zambia achieve optimal performance by
hiring and developing staff that meet their operational needs and objectives.
1.2 Problem Statement
Despite the importance of HRP, many organizations in Austria, Nigeria, and Zambia face
challenges related to staffing shortages, underperformance, and unqualified personnel. In
Austria, underperformance in manufacturing companies is often linked to poor HRP, where
unsuitable staff are hired or existing staff are not properly trained or motivated (Edeh & Dialoke,
2020). In Nigeria’s food manufacturing industry, ineffective HRP has contributed to high labour
turnover and absenteeism (Tende & Alagah, 2017).
In Zambia’s education sector, the absence of strategic HRP has led to teacher shortages and
unqualified personnel (Shikha & Karishma, 2019).This study aimed to investigate the impact of
human resource planning on organizational performance across the manufacturing and education
sectors in Austria, Nigeria, and Zambia.
1.3 Project Objectives
Main Objective:
 To assess the impact of human resource planning on the performance of organizations in
Austria, Nigeria, and Zambia.
Specific Objectives:
 To examine the role of HRP in addressing staffing shortages in the manufacturing and
education sectors.
 To assess the influence of employee qualifications and continuous professional
development on organizational performance.
 To analyze the financial constraints affecting HRP in the manufacturing and education
sectors.
 To recommend strategies for improving HRP in organizations in Austria, Nigeria, and
Zambia.
1.4 Project Questions
• How does HRP address staffing shortages in the manufacturing and education sectors in
Austria, Nigeria, and Zambia?
• What is the impact of employee qualifications and professional development on the
performance of organizations in these three countries?
• How do financial constraints affect HRP in the manufacturing and education sectors?
• What strategies can be implemented to improve HRP in organizations in Austria, Nigeria,
and Zambia?
1.5 Significance of the Study
This study provided valuable insights into the role of HRP in enhancing organizational
performance in Austria, Nigeria, and Zambia. Policymakers, Human Resource managers, and
administrators in the manufacturing and education sectors will benefit from understanding how
effective HRP can address challenges such as staff shortages and underqualification. The study
also offered practical recommendations for improving HRP, ensuring that organizations can
achieve their performance objectives.
1.6 Scope and Limitations of the Study
This study focused on organizations in Austria, Nigeria, and Zambia, specifically assessing the
impact of HRP on organizational performance in the manufacturing and education sectors. The
research examined HRP challenges, such as staffing shortages and financial constraints. A
limitation was that the study might not have captured all unique challenges in other regions or
sectors and was confined to the data collected within a specific timeframe.
1.7 Definition of Key Concepts
1. Human Resource Management (HRM): HRM refers to the strategic approach to managing an
organization’s most valued asset—its people. It encompasses various functions, including
recruitment, training, performance management, and employee relations (Dessler, 2016). The
goal of HRM is to maximize employee performance and ensure alignment with the
organization’s strategic objectives.
2. Human Resource Planning (HRP): HRP is the process of forecasting an organization’s future
human resource needs and developing strategies to meet those needs. It involves assessing
current workforce capabilities, anticipating future demands, and implementing plans to ensure
the availability of skilled employees (Armstrong, 2020). Effective HRP is crucial for addressing
staffing shortages, reducing turnover, and aligning workforce capabilities with organizational
goals.
3. Organizational Performance: This refers to how well an organization achieves its objectives
and goals. Performance can be measured through various indicators, including profitability,
return on investment, and stakeholder satisfaction (Svendsen, 2019). Organizational performance
is often linked to the effectiveness of human resource management practices and the quality of
the workforce.
4. Staffing Shortages: Staffing shortages occur when an organization lacks sufficient qualified
personnel to meet operational demands. These shortages can lead to decreased productivity,
increased employee burnout, and challenges in meeting service delivery standards (Tende &
Alagah, 2017).
5. Underperformance: Underperformance refers to situations where an organization fails to meet
its established objectives or benchmarks. This can result from various factors, including
ineffective Human Resource practices, unqualified personnel, and lack of training and
development opportunities (Edeh & Dialoke, 2020).
6. Training: Training refers to the process of enhancing employees' skills, knowledge, and
competencies to improve their performance and contribute to organizational goals. It involves
structured programs that focus on the acquisition of new skills or the improvement of existing
skills, ensuring that employees remain competitive and capable in their roles (Dessler, 2016).
Training can take many forms, including on-the-job training, workshops, or e-learning, and is
essential for continuous professional development (Armstrong, 2020).
7. Strategic Management: Strategic management is the ongoing process of formulating,
implementing, and evaluating decisions that enable an organization to achieve its long-term
objectives. It involves analyzing both the internal and external environments, developing
strategies to capitalize on strengths and opportunities, and addressing weaknesses and threats
(David & David, 2016). In Human Resource, strategic management helps align human resource
practices with organizational goals, ensuring that workforce planning, training, and
compensation contribute to the company’s overall strategy (Armstrong, 2020).
8. Compensation: Compensation refers to the financial and non-financial rewards given to
employees in exchange for their work. It includes salaries, wages, bonuses, and benefits such as
health insurance, pensions, and vacation time (Noe et al., 2016). Effective compensation systems
aim to attract, retain, and motivate employees by ensuring that rewards are competitive and
aligned with industry standards and organizational performance (Armstrong, 2020).
9. Austria: Austria is a landlocked country in Central Europe known for its robust economy and
high standard of living. It has a diverse industrial sector, with manufacturing playing a
significant role in its economic development (OECD, 2020). Austria has a well-regulated labor
market, with a focus on worker protections and human resource planning, ensuring that
industries have access to skilled labor through effective Human Resource practices (Mansaray,
2019).
10. Nigeria: Nigeria is the most populous country in Africa and has a rapidly growing economy,
primarily driven by the oil and gas industry, agriculture, and manufacturing sectors. Human
resource management in Nigeria faces several challenges, including high labor turnover and
inadequate training systems, particularly in the manufacturing and service sectors (Tende &
Alagah, 2017). Despite these challenges, the country is making strides in developing effective
Human Resource practices to support economic growth (Shikha & Karishma, 2019).
11. Zambia: Zambia is a landlocked country in Southern Africa, with an economy largely
dependent on mining, agriculture, and services. The country faces human resource challenges,
particularly in its education and health sectors, due to staff shortages and limited training
opportunities (World Bank, 2020). However, efforts are being made to improve Human
Resource practices, with a focus on training and development to address skill gaps in critical
sectors (Mansaray, 2019).
1.8 Ethical Considerations
The Belmont Report (1974) summarizes three basic ethical principles relevant to research
involving human subjects.
Respect for persons; Individuals should be treated as autonomous agents –The investigator must
ensure that the subject has received a full disclosure of the nature of the study, the risks, benefits
and alternatives, with an extended opportunity to ask questions.
Beneficence; Maximize possible benefits and minimize possible harms –The investigator should
give forethought to the maximization of benefits and the reduction of risk that might occur from
the research.
Justice and fairness in distribution: Justice occurs when some benefit to which a person is
entitled is denied without good reason or when some burden is imposed unduly.
1. 8 Limitations of the Study
The study had several limitations, some of these limitations were:
Finance: Financial limitation nearly delayed the research study as activities involved in the
research were financed by the students own resources.
Time Limit: There was also limited amount of time in the course of investigation. This is based
on the fact that the researchers had other tasks to perform and also time limitation in this study
too was caused by the limited time employees had in answering questionnaire and interview.
Based on these, the project covered those areas that were very crucial to the problems under
investigation.
Citations time frame: The study was restricted to the publication dated from 2014 to date only.
Henceforth I disregarded important information which was researched before 2014.