ASSESSMENT OF THE EFFECTIVENESS OF INDUSTRIAL TRAINING FUND IN HUMAN RESOURCE DEVELOPMENT IN NIGERIA

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Abstract

The Industrial Training Fund (ITF) was established in 1971 by the Federal Government and was charged with the broad responsibility of manpower training and development. The enabling Decree No. 47 of 8th  October, 1971 defined the objectives of the ITF as the promotion and encouragement of the acquisition of skills in industry and commerce with a

view to generating a pool of indigenous trained manpower sufficient to meet the needs of the Nigerian economy. The main thrust of ITF programmes and services is to stimulate

human performance, improve productivity, and induce value-added production in industry

and commerce. The establishment of ITF is viewed as a positive step toward reducing the problems associated with the apparent shortage of indigenous trained manpower for our industry and commerce in Nigeria. In view of the significant role of human resource, there is the need to ensure that they are effectively trained. This study was, designed to assess the effectiveness of industrial training fund in human resource development in Nigeria. Specifically, the study determined the extent of achievement of stated objectives of ITF; determined the skills possessed by the training personnel of ITF; ascertained the adequacy of training facilities, tools and equipment in ITF; identified the training methods in use during the ITF training programmes; determined the theoretical knowledge acquired by graduates  of  ITF  training  programmes;  found  out  the  practical  skills  possessed  by graduates of ITF training programmes; ascertained the affective work skills possessed by graduates of ITF training programmes; identified the limitations in the effectiveness of ITF training programmes and determined strategies for improving the effectiveness of ITF.  In line with these objectives, nine research questions and six hypotheses were formulated to guide the study. The design of the study was the descriptive survey and observational technique. The study was conducted within six states in the six geo-political zones of Nigeria, namely Kaduna State in the North-West, Bauchi State in North-East, Plateau State in the North-Central, Enugu State in the South-East, Rivers State in the South-South and Lagos State in the South- West. The population of the study consisted of 2471 respondents made up of 607 human resource managers in industries that registered with ITF, 1800 graduates of ITF training programmes from years 1997-2007 and 64 training development officers of ITF. A total sample size of 823 respondents made up of 202 human resource managers; 600 graduates of ITF training programmes and 21 training development officers of ITF were selected using one-third of the population through proportionate stratified random sampling technique. The instrument for data collection was a 146-item questionnaire and observational schedule. The questionnaire was subjected to face validation by five experts and the internal consistency reliability estimate of 0.98 was established using Cronbach Alpha technique. Research questions were answered using mean and standard deviation, while the null hypotheses were tested using t-test. The major findings of the study revealed among others that the objectives of Industrial Training Fund as stated in its enabling Decree have been achieved to some reasonable extent with a

cluster mean ( X ) of 4.41. The training personnel of ITF possessed the required skills for training with a cluster mean ( X ) of 3.97; some training facilities, tools and equipment in

ITF were adequate while some of the items were not adequate. The ITF used different

training methods depending on the purposes for which such training programmes are designed. These training methods include lecture, discussion, brainstorming, problem solving, project, role playing, coaching approach, on-the-job training and case study. The

graduates of ITF training programmes possessed to some extent the required theoretical knowledge ( X =4.19), practical skills ( X =4.25)  and  affective  work  skills ( X =3.97). Some of the practical skills possessed by the graduates such as working on the lathe

machines, milling machines and electrostatic machines are not based on new technologies.

Better funding of ITF by the Federal government and regular curricular revision to ensure relevance with respect to the needs of the industries and society are some of the major strategies to make ITF more effective. The implications of these findings for all stakeholders of ITF were highlighted. Recommendations based on the findings were made.

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CHAPTER ONE INTRODUCTION

Background of the Study

Most countries of the world have realized that effective development of human resource (HR) is one of the best means of achieving economic development and growth. Human resource development (HRD) may, therefore, be regarded as an integral part of national development because adequate supply of human resources is both a pre-condition for and a prima test of the feasibility of a country’s national development (Akerele 1990).

Armstrong (1999) noted that, the goals of development are the maximum possible utilization of human beings in productive activities and the fullest possible development of skills, knowledge, and capacities of the labour force. In his view, such other goals as economic growth, higher levels of living and equitable distribution of wealth would be the likely consequences of the pursuit of the earlier goals.

The human resource component, therefore, plays a  vital role in economic and national planning. The importance of this role has long been recognized not only by the academic but also by many world leaders and governments. For instance, Late President Johnson of the United States in 1968 once observed that, nothing mattered more to the future of America, than the human resources; not their military preparedness, which he said, was worthless without brain power to sustain and certainly not the valued American democratic system which he noted would be fragile if the citizens were ignorant.

Appreciably, the Nigerian government  like other progressive governments, has recognized the importance of human resources development in national development. This explains  why Udoji (1974), in  his  report to  the  government  stressed that,  the  major constraint to Nigeria’s economic development was not just the availability of the financial and  other  capital inputs,  but  more  importantly the  adequacy of trained  manpower in various occupations. One could easily see the relationship between the conclusion drawn by Udoji and the emphasis of Late President Johnson in 1968.

According to Wikipedia (2005), human resource development is concerned with providing learning and development opportunities, making training interventions and planning conducting training programmes. It is essentially a strategic process, which is

concerned with meeting both business and individual needs. Bernardin (2003) stated that

1

human resource development is the use of training, organizational development, and career development  efforts  to  improve  individual,  group,  and  organizational  efficiency  to mobilize workforce. He  further  stated that  human resource development  helps to: (i) develop the key competencies that allow individuals in organisations to perform current or future jobs, through planned learning activities (ii) Groups within organisations initiate and manage change and (iii) ensure a match between an individual and organizational needs. Damachi (1979) defined human resources development in terms of providing the right type of  education,  training  and  work  motivation.  Development,  therefore,  constitutes  the process or procedure by which the capability of a person or a group of persons is rendered effective  on an  increasing  basis  for  the  performance of activities relating  to  specific objective.

There are several competing definitions for human resource development including things such as unleashing human potential, training and development, career development, organizational performance, complex systems, organizational change and development, and other issues.

Since independence in 1960, Nigeria has built a large number of educational and training institutions and has also developed mechanisms for human resources development. in  line with the  Ashby Report and the Federal Government Policy paper of 1961, a National  Manpower  Board  was  established  as  part  of  the  development  planning mechanism of government. Similarly, the National Universities Commission was established. Yet, there are still serious complaints of a  yawning  manpower gap. The presence of a gap and the need to emphasis human resource development has also been noted by Anyanwu (1991), who stressed the need for skilled manpower development in the development of Africa economics. One of his conclusions was that, skilled manpower was in short supply in many African countries including Nigeria.

It was in realization of the significance and quest for skills development that led to the establishment of the Industrial Training Fund (I.T.F.). The background to the establishment of the ITF can be found in the accelerated economic activity in the country from the early 1970s, an expansion and growth rate in the economy which revealed how heavily the country relied on foreign expertise and general manpower for the execution of her various economic policies. The Federal Military government felt the need to institute policies which will encourage effective indigenous participation in the national economy

and a reduction in the nation’s dependence on foreigners in the execution of economic programmes that touch on national integrity and the national economic and social security.

This led to the enunciation in 1970 by the Federal Military Government of the national economic philosophy of self-reliance and the promulgation of the Nigerian Enterprises Promotions Decree in the same year. The Industrial Training Fund was established by the Federal Military Government during the second National Development Plan Period (1970-1974).

The ITF, is a Human Capital Development agency of the Federal Government. By the provisions of the enabling Act, (Decree No 47 of 8th  October, 1971 as amended) the ITF  has  the  responsibility of promoting  and  encouraging the  acquisition of skills  in industry and commerce with a view of generating a pool of indigenous trained manpower sufficient to meet the needs of the Nigerian economy. Ultimately the ITF sets and regulates training standards and provides direct training and training services to its clients. The

customers/clients of the ITF include all employers of labour and their Association such as Manufactures Association of Nigeria (MAN), Nigeria Employers Consultative Association (NECA), Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Nigeria Association of small and medium enterprises (NASME), Federal and State Ministries, Parastatals, Local Government, supervising Agencies of higher institutions (National Universities Commission, National Board for Technical Education and National Commission for Colleges of Education), Universities, Polytechnics, Colleges of Education, Students of higher institutions and labour unions (Nigeria Labour Congress and Trade Union Congress).

The specific objectives that guide the operations of ITF have been derived from its enabling Decree, which empowered ITF to:

    Encourage employers to train and retrain their workers

    Provide facilities for industrial training in general

      Assist industries to organize in plant training programmes of their own and to develop facilities for the training of their staff

      Reimburse employers who contribute to the ITF levy training expense incurred by them

      Encourage  and   support  the   development  of  technological  and   commercial education

      Develop and train indigenous manpower for the country with a view to providing craftsmen for the maintenance of equipment and structures and for staffing the nation’s manufacturing industries

      Conduct research in identified training and development problems in industry and commerce in Nigeria

      Co-ordinate  the  activities  of  the  students  industrial  work  experience  scheme (SIWES) Provide advisory and consultancy services for employers of labour and the general public on human resources development.

In the process of human resource development, the ITF actually offer the following services:

  Identifying training  needs  in  sectors, sub-sectors and  companies /organizations through surveys /studies.

  Designing and developing programmes to solve identified needs.

  Providing technical assistance to enable employers attain high level standards in training of their  work force and  to  meet  necessary conditions for payment of Training Reimbursement Claims.

  Payment of Training Claims to contributing employers in accordance with statutory provisions and ITF Reimbursement scheme.

  Organizing on-and-off the job courses, conferences, workshops and seminars for clients, applying developed curricular and /or training modules to solve human performance problems in the areas of technical, technological, engineering and entrepreneurial skills.

  Providing training assistance to clients in the areas of supervisory and management skills development.

 Determining skills deficiencies and apprenticeable trades through study of employer’s skills profile and gaps with a view to establishing potentials for skills and apprentice training.

  Conducting process/systems consulting in agreement with clients to identify and redress process /systems problems and promote productivity.

  Conducting in-company safety surveys in collaboration with clients and assisting clients to develop and implement in-house safety training programmes.

  Assisting institutions of higher learning to find placement opportunities for students participating in Students Industrial Work Experience Scheme (SIWES).

  Processing and paying allowances to students and institutional supervisors who participates in SIWES in accordance with operational guidelines.

  Regularly reviewing standards, programmes and services to meet the changing needs in training and development of human capital in the national economy.

The Decree establishing the fund made all corporate bodies employing 25 or more employees liable to pay one percent (1%) of the total amount of their payroll annually to the fund as training levy.  The Decree also stipulated further that such contributors to the fund may reclaim up to a maximum of 60 percent of the levy as reimbursement for expenses incurred in training their staff provided they applied and obtained approval for such training programmes. The ITF sources of revenue is the 1 percent training levy from employers and subvention from the Federal Government.

Akerejola (2005) stated that in order to bring its services closer to industry and commerce, the ITF currently maintains a network of twenty seven (27) areas offices. These offices are located at Aba, Abeokuta, Abuja, Akure, Apapa, Awka, Bauchi, Benin, Calabar, Enugu, Gusau, Ibadan, Ikeja, Ilorin, Jos, Kaduna, Kano, Katsina, Lagos Island, Lokoja, Makurdi, Maiduguri, Minna, PortHarcout, Sokoto, Uyo, and Yola area offices. The area offices cover industrial training activities in the thirty-six (36) states of the federation as well as the Federal Capital Territory, Abuja. Akerejola further stated that in order to give effect to its mandate of providing facilities for training, the ITF established and runs industrial skills training centers at Ikeja and Kano.  The ITF also established a center for excellence in Jos to take charge of enhancing and developing professional competence of the Fund’s officers and staff.

Area offices and training centers were established across the country so that the impact of the fund can be felt even at the grassroot.   Training in form of workshops, seminars, and consultancy services are carried out systematically, in every state of the federation and the federal capital territory to achieve the onerous task of human resource development.

Typical human resource development programmes offered by ITF include: Executive and supervisory/management development; professional skills training; technical/job instruction and coaching; customer service training; sales and marketing

training; new employee orientation; health and safety training and organizational development consultation (ITF Handbook 2005).

Bello (2005) explained that ITF normally advertised their human resource development programmes using different media at the beginning of each year for the employers of labour to subscribe to the programmes. Organizations are free to choose for the programmes of their choice among the numerous programmes advertised by ITF. The human resource managers of each of these organizations nominate and send their workers to attend such programmes at ITF area offices or training centres as the case may be. Sometimes, the ITF Liase with the human resource managers and conduct some trainings in the organizations. The human resource managers are the personnel in organizations who are  in charge of human resources. The  human resource mangers are  responsible  for recruiting, discipling, promoting and appraising staff in industries (Akerejola 2005).

The consideration of the skills possessed by the trainer in ITF programmes is very vital.   This is even very central in meeting the objective of ITF. This goal can only be achieved through competent trainers who have vast knowledge in the practical as well as in theoretical aspects of their trades, who possess the pedagogical training as well as skillfulness  and  efficiency  in  the  use  of tools,  machine,  equipment  and  instructional materials for imparting learning experiences to the trainees.

The trainers are subject matter specialist both in theory and practice. They are masters in their own trades or vocation. They have the responsibilities of organizing their training to  suit  various needs of their trainees and the community in which they are working with adherence, however, to the general policy of firm on such programmes.

Trainer in the workshop has more intimate and closer contact with trainees than any other  member of firm or organization and consequently has greater  influence on the character and habits of the trainee. He is responsible to ITF administration not only for the quality and kind of training given in the fund, but also for the effective placement of his trainees in practical and commercial jobs. Therefore, the duties of training development officer include training in character, skills and knowledge of his craft.

The development of useful skill can be reinforced by the appropriate selection and use of learning facilities and resources (Anyakoha, 1994). The instructional facilities are normally recommended by International Labour Organization (ILO) for training agencies. The ILO is the tripartite United Nations agency that brings together governments, employers and

workers of its member states in common action to promote decent work throughout the world. The ILO is the global body responsible for drawing up and overseeing international labour standards. The ILO seeks to ensure that labour standards are respected in practice as well as principle (Wikipedia 2005). Instructional facilities include the workshop, working materials, tools and equipment. Success in the use of these instructional facilities depend, to a large extent, on the instructors commitment to his professional responsibility and more importantly, his resourcefulness and ingenuity.

Certain criteria are obvious for effective selection and use of facilities, equipment and tools. Mkpa (1987) explained that these facilities should be appropriate to the age of the learners, relevant to the lesson, simple or easy to manipulate, interesting to the learners and should develop the skills they are supposed to develop. When physical facilities, equipment and tools used in training are carefully planned and utilized, they attract and hold attention, assist in retaining essential information and procedure and make learning real and permanent. Some of the visual aids necessary for effective workshop instruction as highlighted by Bello (2005) include: Multimedia projector equipment and teaching aids such as slide, strip, sound, opaque and overhead projectors, projection screens, teaching aids, working models, bulletin boards, actual objects or parts, etc, which play significant roles in classroom/workshop instructions.

Generally, there are numerous types of training methods used in ITF programmes. This is better explained by different purposes for which such training programmes are designed, also their aims and objectives. Some of these methods of training commonly used by ITF have been identified by Ahmed (1997) to include: lecture method; Brainstorming method; problem solving  method; on-the-job training method and case method.

In spite of the well-articulated objectives and the general perceived benefits in the establishment of ITF, the clients of the ITF (Employers of labour) appear not to have the desired interest in the agency. Regrettably, many employers in both public and private sectors have expressed dissatisfaction with the level of performance of their workers even after attending the training and development programmes of ITF (Osinem & Nwoji, 2005). The resulting effect is that most of these employers have refused to register with ITF and to pay the 1 percent of the total amount of their payroll annually to the ITF as training levy

in compliance to the Decree establishing the agency. This situation has cast much doubt on the effectiveness of ITF in human resource development in Nigeria.

Regrettably too  it  appears there  are  no  comprehensive studies that  have  been carried out to determine the present status of ITF. Such studies would have provided an objective assessment of how the ITF is functioning at the moment and possibly suggest ways of improving its effectiveness. Related studies on the agency seem to be very scanty and narrow in scope.

It therefore, becomes imperative for an external assessment of the activities of ITF in human resource development in Nigeria. This is  because, the effectiveness of ITF training programmes could only be guaranteed when subjected to frequent assessment. The quality and success of a programme is determined through assessment of the various components. Assessment, according to Okoro (2002) is an appraisal of operations and the using of it in making appropriate decisions. It also involves the collection of data, judging the worth of the programmes and the use of such data to assess the effectiveness and quality of programmes. White (1971) stated that evaluation implies assessing the value of something or assigning value or worth of something. In this study, assessment and evaluation are used synonymously. Every human action or activity has specific purpose or planned target of achievement in view. The planned achievement target is the goal or objective or the desired result for carrying out the action or activity. Hence, if the action is able to produce the desired result, that action is said to be effective (Barnhart, 1987). Also, Simpson and Weiner (1991) defined effectiveness as the power or ability of an action to execute and accomplish the aim of a particular task. It also connotes doing the right thing at the right time to give the expected good result (Drucker, 1973 in Oke, 1994).

In writing about effectiveness in relation to collective efforts or organizational act, Oke (1994) defined effectiveness as the degree to which an organization achieves its goals. Hence, whether individual or collective, the effectiveness of an effort is a measure of its ability  to  achieve  the  desired  result-aims  and  objectives.  Therefore,  an  effective programme is one that produces the intended and successful result.

There was, therefore, the need to carry out an assessment to determine the effectiveness of Industrial Training Fund in human resource development in Nigeria.

Statement of the Problem

A  developing  industrial  economy  requires  adequate,  effective,  consistent  and regular human resource training and development programme geared towards revitalizing the agents of productive development.  The ITF was set up to perform this all important function in promoting and encouraging the acquisition of skills in industry and commerce so as to generate a pool of indigenous trained manpower sufficient to meet the needs of the Nigerian economy. In spite of the well-articulated objectives and the general perceived benefits in the establishment of ITF, the clients of the ITF (Employers of Labour) appear not to be satisfied with the performance of the agency. Many of these employers in both public and private sectors have expressed dissatisfaction with the level of performance of their  workers  even after  attending  the  training  and  development  programmes of ITF (Osinem & Nwoji, 2005). The resulting effect is that most of these employers have refused to register with ITF and to pay the one percent (1%) of the total amount of their payroll annually to the ITF as training levy in compliance with the Decree establishing the agency. Akerejola (2005) observed that the number of registered employers participating in ITF training programmes keep on decreasing on yearly basis. This situation has cast much doubt on the effectiveness of ITF in human resource development in Nigeria.

Regrettably too, it  appears there are no  comprehensive studies that  have  been carried out to determine the present status of ITF. Such studies would have provided an objective assessment of how the ITF is functioning at the moment and possibly suggest ways of improving its effectiveness. Related studies on the agency seem to be very scanty and narrow in scope.

The vacuum created by lack of comprehensive studies on the effectiveness of Industrial Training Fund in human resource development in Nigeria is what has motivated the present study. The problem of this study simply posed as a question, therefore, is: how effective is Industrial Training Fund in human resource development in Nigeria?

Purpose of the Study

The main purpose of this study is to assess the effectiveness of Industrial Training

Fund in human resource development in Nigeria. Specifically, the study sought to:

1.  Determine the extent of achievement of stated objectives of Industrial Training Fund.

2.  Determine the skills possessed by the training personnel of ITF.

3.  Ascertain the level of adequacy of some training facilities, tools and equipment in ITF.

4.  Identify the training methods in use during the ITF training programmes.

5.  Determine   the   theoretical   knowledge   acquired   by   graduates   of   ITF   training programmes

6.  Find out the practical skills possessed by graduates of ITF training programmes.

7.  Ascertain the affective work skills possessed by graduates of ITF training programmes.

8.  Identify the factors limiting the effectiveness of ITF training programmes.

9.  Determine strategies for improving the effectiveness of ITF training programmes.

Significance of the Study

The major benefit of this study lies in the fact that its findings will help reveal any deficiency  in  the  training  and  development  programmes offered  by ITF.  Information derived from this study will serve as a basis for making appropriate recommendation to the operators of ITF with a view to improving the effectiveness of their training and development programme.

Furthermore, it is hoped that the results of this study will help provide feedback to administrators of ITF about how well graduates of ITF training programme from industries are performing in work places. A positive feedback on the performance of the graduates can raise the level of confidence of the general public on ITF training programmes.   A negative feedback on the other hand, would send a timely signal to the effect that the administrators of ITF may need to re-examine their training and development programme and where need be, adjust same with a view to ensuring that graduates of ITF programme will become very effective in industries.

The Trainees undergoing training will benefit from the study. This is because based on the findings of the study, the ITF authority could make serious efforts to provide those tools, equipment and  instructional materials identified by the study as not  adequately available for the training programmes. The provision of these facilities will enhance the skills acquisition desire of trainees.

The findings of this study will benefit the training and development officers of ITF involved in training because they could use the identified and recommended instructional methods and techniques to effect instructions purposefully. This approach will also benefit

the trainees who will as a result of the new instructional methods acquire useful skills with less difficulties.

The Federal Ministry of Industry who is the parent body that controls ITF will benefit from the result of the study because the findings will help the ministry to identify and utilize those favourable managerial and social factors that can enhance the operations of ITF. The findings of the study could also inspire the federal Ministry of industry to resuscitate those useful trades identified by the study to have been phased out as a result of inadequate facilities. The result of the study could also inspire the ministry to restructure those needed facilities in the ITF where trainees will desire to acquire functional skills that can help them and the larger society.

Research Questions

This study is designed with the aim of finding answers to the following research questions:

1.  To what extent have the objectives of industrial training fund been achieved?

2.  What are the skills that the training personnel of ITF possessed?

3.  What are the level of adequacy of some training facilities, tools and equipment in

ITF?

4.  What are the training methods in use during the ITF training programmes?

5.  What  are  the  theoretical  knowledge  acquired  by  graduates  of  ITF  training programmes?

6.  What are the practical skills that graduates of ITF training programmes acquired?

7.  What affective work skills are possessed by graduates of ITF training programmes?

8.  What are the factors limiting the effectiveness of ITF training programmes?

9.  What  strategies  could  be  used  to  improve  the  effectiveness  of  ITF  training programmes?

Hypotheses

The following null hypotheses were formulated and tested at 0.05 level of significance.

H01: There is no significant difference in the mean responses of human resource managers from industries and training development officers of ITF on the extent of achievement of ITF objectives.

H02:    There  is  no  significant  difference  in  the  mean  responses of graduates of ITF training programmes and human resource managers from industries on the theoretical knowledge acquired by graduates of ITF training programmes.

H03:    There  is  no  significant  difference  in  the  mean  responses of graduates of ITF training programmes and Human Resource Managers from industries on the practical skills acquired by graduates of ITF training programmes.

HO4      There  is  no  significant  difference  in  the  mean  responses of graduates of ITF training programmes and human resource managers from industries on the affective work skills possessed by graduates of ITF training programmes.

H05        There  is  no  significant  difference  in  the  mean  responses of graduates of ITF training programmes and training development officers of ITF on the limitations to the effectiveness of ITF training programmes.

H06        There is no significance difference in the mean responses of graduates of ITF training programmes and training development officers of ITF on the strategies for improving the effectiveness of ITF training programmes.

Delimitation of the Study

The study was delimited to industries who registered with Industrial Training Fund in compliance with the decree establishing the ITF.

Responses to the instrument was restricted to human resource managers and ITF graduates from 1997 to 2007 from the registered industries only. While responses to the instrument by Training Development Officers of ITF was restricted to those with status range from Training Development Officers II to Directors only.

The study examined such components as objectives of Industrial Training Fund, skills  of  training  personnel  involved  in  training  programmes,  adequacy  of  training facilities, equipment and tools in ITF. Also, theoretical knowledge, practical skills and affective work skills possessed by graduates of ITF training programmes, as well as factors limiting the effectiveness and strategies for improving the effectiveness of ITF training programmes were examined.



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