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- EFFECT OF INTERNAL AUDIT ON MANAGERIAL PERFORMANCE IN PUBLIC ENTERPRISE
- ECONOMIC EFFECT OF ADVANCED FREE FRAUD IN THE BANKING SYSTEM IN NIGERIA
- EFFECT OF FINANCIAL MANAGEMENT STRATEGIES IN THE MANAGEMENT OF PUBLIC ENTERPRISE (A Case Study of NNPC)
MANAGEMENT REFORMS AND ITS EFFECT ON PUBLIC ENTERPRISE PERFORMANCE: POWER HOLDING COMPANY OF NIGERIA AS A CASE STUDY
Public enterprises in Nigeria Have not lived up to expectations. Rather, their existences have been counterproductive to the very reason they were established. They have been regarded as inefficient, ineffective and unproductive among the numerous factors affecting public enterprises in Nigeria, this study specifically singled out management as the major problem. ThLlS1 this study examines the management related issues of public enterprises in Nigeria. It was discovered in this study that some negative management practices as well as undue government interference have been detrimental to the performance of public enterprises. Hence, Privatization and commercialization were recommended as the way out for the underperforming public enterprises. Also, it was recommended that more policies were needed to wither down excessive government control over the public enterprises. Furthermore, some Management techniques such as Management by Objective (MBO), Total Quality Management (TQM).etc, were recommended as techniques capable of improving management practices in public enterprises.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 Background of the study
1.2 Statement of the problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Statement of the Hypotheses
1.6 Significant of the Study
1.7 Scope of the Study
1.8 Definition of Terms
1.9 Organization of the Study.
CHAPTER TWO: LITERATURE REVIEW
2.1 Conceptual Framework
2.1.1 Definitions of management
2.1.2 Dichotomy between management and Administration
2.1.3 Management as a process
2.1.4 Definitions of Public Enterprises
2.1.5 Features of Public Enterprises
2.1.6 Types of Public Enterprises
2.1.7 Arguments for and against Public Enterprises
2.1.8 Nature and management of Public Enterprises in Nigeria
2.1.9 Management Problems of Public Enterprises in Nigeria
2.2 Management Reforms of Public Enterprises in Nigeria:
The Privatization and Commercialization programme
2.3 Problems of the management reforms of Public Enterprises in Nigeria
2.4 Historical Background of the case study
2.5 Theoretical Framework
CHAPTER THREE: METHODOLOGY
3.1 Restatement of Research Question and Hypotheses
3.2 Research Design
3.3 Population of the Study
3.4 Sample and Sampling Techniques
3.5 Data Collection Instrument
3.6 Administration of Data Collection Instrument
3.7 Procedure of Data Analysis
3.8 Limitations of Methodology
DATA PRESENTATION ANALYSIS AND INTERPRETATION
4. 1 Respondent's Characteristics and Classification
4.2 Presentation and Analysis of Data Accor ding to Research Questions.
4.3 Presentation and Analysis of Data According to Research Hypothesis.
4.4 Discussion of Findings.
CHAPTER FIVE: \
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of Findings
This chapter is the introduction part of this study. The subject matter is introduced and discussed so as to give an overview of the study. Also, the objectives, scope and significance of the study are also examined in this chapter. The research questions and the research hypotheses of this study are stated in this chapter. And some commonly used terms would be defined in this chapter.
1.1 BACKGROUND OF THE STUDY
As the human brain is important to the body and as it co-ordinate every thought and action of the body, so also is the management to an organization which equal performs similar functions using organizational structure.
In every organization, the four major functions of management are planning, organizing, motivating and controlling. The management plans the direction for the organization to be able to achieve a set goals. After planning, resources are arranged within the organization's structure, and then the management put in every mechanism to motivate the people in the (organization to put in their best to ensure maximum success to the functional objective of the organization.
Be it a large or small organization, or a public or private organization, the function of management is importal1t in getting things done by others. Without management, both human and material resources of an organization will be underutilized. Therefore, the term "management" can be seen as a function which involves planning, organizing, motivating and controlling (Cole, 2004).
Also, management as ''the art of getting things done through people" She also described management as philosophy. One can also think of management functionally, as the action of measuring a quantity on a regular basis and of adjusting some initial plan; or as the actions taken to reach one's intended goal. Mary Parker Follett (1888-1933),
Moreso, management can be seen as that central body in an organization which plans for, . organizes" motivates and controls organizational resources. It is simply a group of people called managers. In an organization, there are three levels of management. Top management, middle management and lower management Otokiti, 2000}"
In the public sector, the function of management is usually administration, and the managers of public enterprises are usually referred to as administrators. However, in modem times, there is a movement towards making public enterprises more business-like just as private sector businesses. This is being referred to as the New Public Management (Ogundele et al, 2004).
The importance of management in any organization cannot be over emphasized, if an organization performs weft, the management takes the credit but if it performs poorly, the management takes the blame.
1.2 STATEMENT OF THE PROBLEM
Public Enterprises in Nigeria have been identified with poor performance. Fekuru (2000) stated that "Public Enterprises presents a depressing picture of inefficiency, low productivity, losses, budgeting burdens, poor products and services"
In the past, government invested huge sums of money into public enterprises in order to provide goods and services at affordable rates (Soyibo et al (2001) noted that from 1975 to 1985 over N23 billion was invested in public sector enterprises with N933.7 million in returns on investment which is about 0.3%. this showed that public enterprises were non-performance, they were very inefficient.
It was in view of the above mentioned problems that the government in Nigeria decided to over haul the public enterprises in Nigeria by introducing management reforms into them.
In reforming the way public enterprises in Nigeria were managed, the two foremost techniques for improving public enterprises management were Privatization and Commercialization (Jerome, 2002). They were part of the Structural Adjustment Programme (SAP) introduced in the mid-1980s by the Nigeria government to ensure better management of the economy.
How far has management reforms improved upon the performance of Public Enterprises? Were the management reforms successful or otherwise in Nigeria? What are those factors that affected the implementation of the management reforms in Nigeria public enterprise?
These are some of the major issues that would be addressed in this study.
1.3 OJECTIVES OF THE STUDY
The major objective of this study is to examine the effect of management reforms on public enterprises performance. Other specific objectives of this study are:
1. To determine the extent to which management reforms have improved on the financial status of public enterprises.
2. To access the impact of management reforms on motivation of workers in public sector enterprises.
3. To analyze the relationship between management reforms and workers’ productivity in public enterprises.
4. To examine the extent to which external factors affect management reforms of public enterprises.
1.4 RESEARCH QUESTIONS
The following are the research questions of the study:
1. What is the effect of management reforms on public enterprises performance?
2. To what extent has management reforms improved the financial status of public enterprises in Nigeria?
3. What is the impact of management reforms on motivation of workers in public sector enterprises in Nigeria?
4. What is the relationship between management reforms and workers productivity in public enterprises?
5. To what extent do external factors affect management reforms of public enterprises?
1.5 STATEMENT OF RESEARCH HYPOTHESES
The following are the research hypotheses of this study:
1. Null hypothesis (Ho): management reforms have no effect on public enterprises performance. Alternative hypothesis (H1): management reforms have positive effect on public enterprise.
2. Null hypothesis (H0): management reforms have not improved on the financial status of public enterprises. Alternative hypothesis (H1): management reforms have improved on the financial status of public enterprises.
3. Null hypothesis (H0): there is no impact of management reforms on motivation of workers in public sector enterprises. Alternative hypothesis (H1): there is positive impact of ·management reforms on motivation of workers in public sector enterprises.
4. Null hypothesis (H0): there is no relationship between management reforms and workers’ productivity in public enterprises. Alternative hypothesis (H1): there is positive relationship between management reforms and workers’ productivity in public enterprises.
5. Null hypothesis (H0): external factors have lesser effect on management reforms of public enterprises. Alternative hypothesis (H1): external factors have greater effect on management reforms of public enterprises.
1.6 SCOPE OF THE STUDY
As earlier stated, this study examines the effect of management reforms on the performance of public enter prices in Nigeria. The case study is the Power Holding Company of Nigeria (PHCN).
In the past, government in Nigeria has introduced various management reforms in public enterprises. For the purpose of this study, the management reform programmes that would be examined are privatization and commercialization. Privatization is handing over the total ownership and management of enterprises from the government to the private sector, while Commercialization is contracting the management of public enterprises to private sector while the government retains ownership.
The public enterprise which this study focused on is the public utility enterprises in charge of generation, supply and distribution of electricity in Nigeria. It was formerly known as National Electrical Power Authority (NEPA) now called PHCN.
1.7 SIGNIFICANCE OF THE STUDY
This study is expected to make theoretical and practical contributions to the academic circle. It will add to the existing body of knowledge on management of public enterprises. Therefore, it will be profitable to Scholars, Authors, Writers and Students who are interested in studying management of public enterprises and how reforming the management of public enterprises can improve their performance.
Also, this study will be of great benefit to me the researcher of this study. It will bring about an increase in knowledge and understanding of the various, reforms introduced into the management of public enterprises in Nigeria.
Furthermore, this study will contribute greatly to policy makers in our government who are constantly in search of the most effective and efficient way of managing public enterprises. They will learn a great deal from this studies analysis of the strengths· and weakness of past management reform policies on public enterprises.
Finally, this study will benefit the nation as whole, public enterprises were mostly established to deliver goods and services at affordable prices. Therefore, improvement in their performance would mean providing quality goods and services, greater productivity and efficiency. This makes management reforms very essential in improving the performance of public enterprises.
1.2 DEFINITION OF TERMS
The following are the terms and their meaning:
1. COMMERCIALIZATION: This is a situation in which government removes subsidies from public enterprises so that they become self-financing.
2. EFFECTIVENESS: This is the ability of an individual, group or organization to achieve the right goals with the right resources at the rig tit time.
3. EFFFICIENCY: this is the ability of a person, group or organization to put in minimum use of resources so as to achieve maximum result or outcome.
4. MANAGEMENT: This is the function in an organization which is involved with planning, organizing motivating and controlling organizational resources to achieve set objectives.
5. PERFORMANCE: This refers to the actualization of set goals and objectives of an organization.
6. PRIVATIZATION: This is the transfer of ownership control and management of enterprises from the government to private investors.
7. PUBLIC ENTERPRISES: These are enterprises established owned controlled by the government to engaged in provision of goods and services at affordable rates.
8. REFORMS: These are changes that are introduced into a system or organization so as to make it function properly.
9. SELF FINANCING: This is the ability of a person, an organization, etc to be able to finance their activities by themselves.
10. SUBSIDIES: these are government funds allocated to public enterprises at regular basis to make the meet up with their financial Obligations.
1.9 OGANISATION OF THE STUDY
This study is divided into five chapters, the first chapter provides and introduction and a general overview of the study, the second chapter examines the conceptual and theoretical framework of the study. The third chapter discusses the methodology to be used in collected, analyzing and interpreting the data collected in this study. The fourth chapter analyses the data collected in this study in relation to the research questions and hypotheses. The fifth chapter provides a quick summary of the findings and concludes the chapter with some recommendations on the way forward