The Contribution Of Industrial Training Fund in Manpower Development in Nigeria

Assessing the Contribution Of Industrial Training Fund (ITF) In Manpower Development In Nigeria.

Industrial Training Fund – All policies in organization are supposedly aimed at achieving the goals and objectives for which these organizations were established. The twin concept of industrial training and developments seldom escape the intellectual reporters of organizational policy formulators in their bid to design effective programmes for eventual goal. There is apparently a general inclination of organizational policy makers towards assuming a functional relationship between employee training and development programmes and the potential performance of the prospective beneficiaries of such programmes. The above claim, that a functional relationship between training and effective performance of trainees has acquired such theoretical solidification that it has become impossible to make any empirical disputation over it.

Although three appear to be a universal acceptance of the idea that training and development enhances performance, only few of the many types of training programmes have been subjected to extensive research.


This chapter is intended to succinctly examine the contributions of various authors to the literature of industrial training fund in particular. This will form the theoretical foundation for the current work. Under industrial manpower training, various definitions given on industrial training will be reviewed from this, the principles involved in industrial training and the industrial training and development techniques will also be reviewed. Then, distinctions will make between “Training” “Development” “Education” and role of industrial training in achieving organizational objectives will be considered. At the end what other studies on industrial training fund have done well and what they have not done well will be highlighted. This is to provide a justification for the current research.



Various authors have looked at industrial training from different perspectives. Defining industrial training, according to Osula (1987) that it is those experiences designed to help employees become more effective in performing the various tasks that comprise their jobs. In the same live Udo-Aka (1982) defined industrial training as the development of specific skills and attitudes needed to perform a particular job or services of job. A critical analysis of this definition shows that it is ambiguous. It tends to show that development is the same as training.

Stemmetz (1969) put training as short-term educational process utilizing a systematic and organized procedure by which non-managerial personnel acquire technical knowledge and skills for definite purpose, while he sees development in reference to staffing and personal matters as a long-term educational process utilizing systematic and theoretical knowledge for general purpose. Though, many writers have defined training this way but it is restrictive. It tends to emphasis that training must be for a short-term duration. Secondly, it implies that only non-manage can benefit from industrial training. But this is not so. Training is neither for a selected few or for only those at lower levels. Top management may recognize the training needs of first line supervisors but not for themselves. Yet top managers should be trained first to provide an example of their commitments to the continuos development of all people in the enterprise.


Furthermore, Stoner (1982) seems to agree with Stemmetz, he refers to training as teaching of technical skill to non-managerial personal while development is referred to the improvement of technical human relations and conceptual skills to mangers usually through programmes. Through they have attempted to give a clear cut definitions of development and training but the factual situation is that when one is trained, he is being developed.

Magehee and Thayer (1985) defined industrial training as the formal procedure which a company uses to facilitate employees” learning so that their resultants behaviour contribute to the attainment of the organizational objectives. Thus definition stressed the importance of industrial training in attaining of the organizational goal which I am inclined to accept because without objectives, an organization cannot exist, hence training helps in the achievement of the objective. Every organization exist to attain certain objectives or set of objectives which need skilled men to help in the attainments. In order words, training embraces the activities of developing complex knowledge integration of elaborate administration skills and desired attitude for difficult and controversial social issues. Diejomah (1977) gave credence to these elements of training put by Mcgehee and Thayer. He said that energies, knowledge and skills of a people purely for economic purposes are but dimensions of human endowment. To him thought motive, beliefs, feelings, aspiration and the culture of human beings which are beyond the work place are embodied in the industrial training.

What one can infer from this view is that human resource is the life wine of any organization or economy. As it produces and controls other factors of production it needs thoughtful provision, utilization and preservation. Hence Drucker (1969) said that vast majority of human potentials remain unrealized as employees possess on untapped intellectual reservoir that can serve as organizational creativity pool and resource if managed properly. The constant training and retraining keeps on employee with changes in technological skill for the demonstrating jobs.



Most employees of labour have Lukewarm attitude to training. Carl (1963) stated that there has been training for supervisors and managers in workshop for a long time but productivity has not improve in many area. It therefore fellow that something is wrong somewhere, either the environment, the trainers themselves the methods or the training premises.

A careful observation will reveal that most of our training programmes are based on the orthodox assumption that is inefficiency of our economy are mostly due to shortage of skilled manpower. This leads to the recommendation for various training institution most of these institution train workers in the operative, technical areas, commercial financial and managerial. The training modules forget that knowledge of what to do does not necessarily guarantee willingness to do it.

Harbison and Myers (1964) stated that efficiency can be achieved by integrating factors of good industrial relations and motivational factors of skill manpower. Hence industrial training is necessary. To this end, employers of labour should be meant to realize their duty in training their employees. This can be done by a comprehensive training programmes of up grading and training manpower in various establishment.

There is the need to put pressure on the employers of labour to take a greater responsibilities. This is because the building of modern nation depends upon the development of people and the organization of human activity, capital, natural resource all play important role in economic growth but non is more important that manpower. It is therefore the fundamental role of employers to train their employees. However, the government has made the work easier, especially for organizations who cannot run their own training school, by establishing a central unit that could organize such training programmes.

This is why industrial training fund was established in 1971 by decree no 47 but organizations that have their own training school are given re-imbursement for each course approved by the fund.



Various industrial training and employee development performance. These techniques aimed towards the same objective of improving production and efficiently. The impact of industrial training and development are manifested in the obvious contents of skills, knowledge, and attitudes. These are acquired after the employee has been trained and developed in relation to organizational functional performance pattern.

One of the training techniques that helps in ascertaining the impact of training on worker performance is the “Game techniques” Kibee and Craft, (1961) explained, it as a dynamic training exercise utilizing a model of a business situation. Merit and Wheldall (1978), believed that game place. The modification will enhance the relative change in both the individual attitude, skill and knowledge about his job activities. Game technique provides the participants with basic ideas of operating and policy decision are required in the real situation in the work place. This techniques of training provides active participation in some, what life like situation with the opportunity for feed back of the consequence of one’s decision. The participants should learn which key factors to observe in the actual on the job situations their attention should focus on establishing policies or strategies and on long-range planning. On the job training. This technique has long been used in industries and operational organizations. In 1944, the scheme is made compulsory in Britain for industries to train their employees with in the industry.

Katz and Morse (1950) referred to on the job training as a techniques that affords an example of the wide spread use of groups training for supervisors. It is aimed at making a rapid impact by the economic use of training resource, in groups of worker in industries. Singelton (1976) ascertained that the most frequently used technique in employee development in acquiring job skill, attitude and efficiency is on the training.

In practice, on the job training varies in formal organizations from simply assigning the new employees to an experienced worker to be shown-the-job, to a formal arrangement with instructor assigned to guide and evaluate the training efforts of trainees. There is little or not data from a carefully controlled experiments on the effectiveness of the on-the-job-training. It can be an effective training technique, but requires hard work and careful planning by those responsible for training to make certain the trainees have optimum situation for training.


APPRENTICESHIP TRAINING: Apprenticeship training offers an integration of on-and-off the job training, that under normal condition appears to be extremely for a variety of skilled occupation. Craing and Bittle (1976) stressed that apprentice training is on occasion subverted by a desire among certain management representatives to obtain as much productive labour as possible at the reduced apprentice rate. They further discovered that on the results that the training is de-emphasized and there is little concern as to whether the employees on training attend training courses or not. The major problem is on the result that the training objective are lost and a number of drop outs from apprentice programmes nevertheless go on to entries the same trade, inspite of the abbreviated learning periods.

Appleby (1979) emphasized that, to achieve the objective of apprenticeship training employers should assess the training needs annually to determine the numbers required in each category skills and knowledge of these trades should be constantly analyzed.

Therefore it is pertinent to note that views on programmed instruction depends on individual perception and the organization. Some organization may recommend the technique for preparing trainees for the actual job would face in real situation, while others way find the technique time consuming and expensive to handle. The programme is bound to change from time to time due to some dynamic effects on the organization. The changes add to the expensiveness. Therefore an economic consideration in terms of cost is necessary before adopting any such system in any organization.


CONFERENCE METHOD: The conference techniques of training provide the participants the opportunity to post ideas, to discuss ideas and facts, to test assumptions and drew inference will determine the manner in which it is carried out. If the purpose is that of developing the problem solving and decision making skills of the participating the conference leader (trainer) must facilitate the participating of the individual, but at same time prevent the conference from straying too far from the objective.

Despite the advantages of this technique, it still has some serious constraints. It is restricted to small group participation and centres around covering a much substantive content in a reasonable length of time. It lacks an organization and the emphasis is on demonstrating verbosity rather than learning. Probably the most important psychological principle involved is the active participation of those taking part in the conference which provide the opportunity for “reinforcement” of such participation by the trainer.


SEMINARS AND WORKSHOPS: These are other recent technique of industrial training and developing employees. The essence of seminar and workshop is to develop practicing and operative managers in their effort to achieve organizational goals.

Balogun (1986) stated that employees who get along well will others and who exert leadership in group are those who most often attend seminar and workshop discussion such employees add to what they have through seminars and workshop. To determine what retraining and redeployment is, seminar and workshop said avert on to say that seminar are necessary to achieve among other thing important productivity and rejuvenate through the institutions of management training. What he was saying in effect is that seminar contributes to uplift the ideas of employees, retrains him as to the organization productivity and acquisition of good qualities.

Wonodi (1987) stated that workshops and seminar programmes should include management and conservation of resources, guidance and counselling techniques, policy analysis and progressive seminar will give more than the formal education on management, because experience, knowledge and competence are always the hub of discussion.


There is also a need for regular seminar programmes to be organized at any particular time when actual conditions differ from desired conditions of organization performance or more especially when a change in present human knowledge skill or attitude can bring about the desired performance. And it is the surest way of unifying service staff training programmes, due to it provides form that brings staff from all organizations to pool ideas together and discuss freely.



Industrial training fund had over the years been designed by one problem or the other. These problems affects the performance of the fund.

According to the recent bulletin 1992 released by industrial training fund, the problem are insufficient funds. The industrial training fund has its source of fund from the subvention from government, annual levy and contributions from employer of labour to industrial training fund. The money is not enough to sustain the fund.


According to the body more #183000 million and 18,356,767 was spend on student industrial work experience scheme (SIWES) in 1987, 1988, 1989, 1991, 1992.

The money incurred in this student industrial work experience is too much that it does not allow them to carry out other activities.


LEVY COLLECTION AND INCIDENCE OF DEFAULT: Many firm are in default as regards to their annual training levy obligations firm do not pay as at when due hence this has compounded by economic crunch. Reluctance of employers to invest to manpower training. Some companies liable to industrial training fund normally refuse to fill the necessary form. According to the bulletin, most of their client (contributing companies) only pay their levy to comply with the law but have no systematic training programmes for their staff. This attitude has been referred to as “employers” “Hypocrisy” by the British service commission whereby employers like to absorb people with skills without doing anything to support the creation of young skilled ground.


Lack of compulsion by law to firms to train their own staff to train their staff as a matter of obligation, so they do not find it great compulsion to train their work.

STAFF PROBLEM: The numbers and qualify of the young professional working staff for the fund are not satisfactory. The professional are expected to deliver and organize seminars for experience company worker. The training at times find the training not appropriate to their specific need, and so they are reluctant to go again.

Furthermore, the trained professional that are supposed to work for the fund after training, set up their own consultancy firms. There is also lack of information or understanding of the nature and essential services of the fund in the national economy. The fund also suffers from loss of qualified and experienced staff to handle their training programmes in the same vain, the employer loose worker trained with the fund.



It is the contention of many researchers that emphasis should be placed not on training programmes instead on the result of training. Koontz and Donnel 1980 (posited that training benefits derived from attending development courses are negligible unless they satisfy a clearly defined training needs. This means that training programme must be designed based on the need of the training. This tend to receive the support of Stoner 1982. To him, the job skill requirement for the effectiveness of the receiving organization should be analyzed and appropriate programme designed. From the foregoing, it tend to mean that industrial training fund should not just design or recommend programmes for the employer. It is not also mere re-imbusing companies there should be evaluation of the nature of job required by organizations and appropriate programmes to be designed to that effect. This means that instructional techniques must meet the need and aspiration of the participants and the organization, which involves designing management courses and programmes to meet, the need for which they are required. In essence the training programmes of industrial training fund should be one that match the needs of the organization and the job.

Osuagwu (1985) stated that training programmes should be beneficiary. In this perspective, he called a complete judgement of organization strength and weaknesses before any training programme. So industrial training fund will make its training programmes meaningful by first analyzing the organization and the job to be done before designing any programme.

Scott and Mitchel (1979) posited that the consideration of training programmes should be based on the job to be done. He further stated that, there should be an analysis and that the data will help for appropriate programme to be developed. This boils down to mean that industrial training fund should design training programmes to fall in line with the job required will help the workers to match to the job. Industrial training fund should design training programmes in light of the time. It should not be like the old industrial training, which was nearly completely informal in its concept and practices as there was no principles of training.


Analysis of the organization and job for training compared

Standard of performance                  Employee performance level

Crap deficiencies

Design training need level

Training given and keep record

Performance after training

Standard of performance                  Standard of performance not met


SOURCES: Alten P. sales and sales management (1980)

It is our contention that industrial training fund should make its training programs more effective. In designing the programs as pointed of the organization to receive the training and the job to be done by the trainees should be undertaken. The deficiencies between the employees expected standard level of performance and his actual level of performance should be established. Based on this, industrial training fund can design training programs that will correct the deficiencies. This involves keeping appropriate records to fund out the employees performance and to check if their performance and line with the standard expected, if there are still deficiencies, corrective programs should be designed until the desired performance which the contributing companies requested for it is met.

Training can be very wasteful if it is not carefully planned and supervised. Without logical systematic approach, some training may be too short or too long. To this respect, industrial training fund should  not only design training programs but they should be participating in seeing that the training objective of contributing companies are met. By being participatory, they will detect short-comings of their training program-ones and know how to improve the programmes next time.



As earlier stated, the industrial training fund was created by the federal government to promote and encourage the acquisition of skills in industries with a view of generating a pool of indigenous training, manpower sufficient to meet the development needs of the economy. This creates a great impact in he effectiveness of the employee. According to Harbison and Myers (1964) efficiency can be achieved by integrating factors of good industrial relations and motivational factors of skill manpower.

The fund which was created by the government help in improving the employees performance on present jobs, aids, them in solving operational problems as well as obtaining bitter cooperation and greater loyalty. Some training programmes have these as their primary goals.




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