Credit Control Management As A Tool For Business Organization Growth And Survival (A Case Study Of Nigeria Bottling Company Plc)
This research work was investigating the effect of cooperate restructuring on employees in an organization using Nigerian Breweries as a case study. The study focuses on the corporate activities in human resources as a critical factor in terms of strategy put in place to maintain their organization position by ensuring their survival in the emerging economic integration. The researcher made use of personal interview and questionnaire and observation in the collection of primary data and information needed for the research work. The method of study referred to some of the workers of Nigerian Breweries Plc. This consisted of a combination of staff with different educational qualifications. In this study, the major sampling and statistical tool employed for data analysis were the use of percentages, tables and chi – square (X2). The percentages is used to analyze data elicited from selected respondents. In the same vein, the Chi -square (X2) was used to test the hypothesis formulated. The main aim of this research is to explore, assess and evaluate the effective or impart of corporate restructuring on employees in organizations. The research has also drawn up some recommendations on the issues with cooperate restructuring in organizations.
Table of Contents
- Table of contents
- 1.1 Background to the Study
- 1.2 Statement of the Problem
- 1.3 Purpose of the Study
- 1.4 Objectives of the Study
- 1.5 Justification of the Study
- 1.6 Relevance of Study
- 1.7 Research Questions
- 1.8 Research Hypothesis
- 1.9 Scope and Limitation of The study
Review Of Related Literature
- 2.1 Introduction
- 2.2 Business Organization as a Concept
- 2.3 Organizational Control
- 2.4 Concept of Restructuring
- 2.5 Organizational Change and Management
- 2.6 Corporate Restructuring
- 2.7 Human Resources or Human Relations
- 2.8 Human Resources Management
- 2.9 Assuring Restructuring Objectives
Research Design Method and Method of Study
- 3.0 Introduction
- 3.1 Population of the Study
- 3.2 Sample Population
- 3.3 Sample Size
- 3.4 Sampling Tool
- 3.5 Research Instruments
- 3.6 Methods of Data Collection
- 3.7 Limitations of Study
Data Analysis and Presentation
- 4.1 Introduction
- 4.2 Demographic Characteristics of the Sample
Summary, Conclusions and Recommendations
- 5.1 Summary
- 5.2 Conclusions
- 5.3 Recommendations
- 5.4 Suggestion for Further Studies
1.1 Background to the Study
The sources of changes are diverse, well known and, most times, irreversible. They include technological innovation, deregulation, and inauguration of the computer information age, changed consumer demands, globalization, and the rush toward democratization, among others. These changes are impacting seriously on the environment of business. Yet it looks as if the coast is not clear, as these changes are most likely to stretch into the next millennium and beyond long as the indices keep swinging.
In the economic sphere, Nigeria has been swimming in economic recession in the past two decades or more. It is not that economic recession is a recent phenomenon. In fact, Fajana and Osigweh (1993) did record that the world had passed through many phases of recession, beginning in the 1920s. But the economic recession in Nigeria is a reflection that the economy is fully plugged into the international economic system, which has also been characterized by deep economic changes.
Responses to the economic changes in Nigeria have been varied with various Nigerian governments applying different measures, many of which are short-term and clearly depicting the understanding and character of those administrations.
However, the most long- term and comprehensive of this economic measure was the Structural Adjustment Programme, SAP, introduced in 1986 by the Babangida administration. SAP was designed to restructure Nigeria’s economic and also promoting viability in fiscal and balance of payment policies. The success or otherwise of SAP is not the primary concern of this study.
The responses of businesses to economic, political, technological and social changes have been as varied as those of government. They have regularly altered their management strategies to be able to adapt to realities in their task environment. Such strategies range between long-term contracts, joint ventures, mergers, downsizing acquisitions, etc.
What the rapidity of change has done to business is that it has made business leader and managers to think of more effective methods of planning and implementing changes that are necessary for the growth and survival of their organizations. This is because, duringthe past couple of the years in which changes have occurred rapidly, many managers have found to their chagrin that the rules have changed; traditional methods of building businesses have failed to work as planned. Also, many well-designed career path has turned into a dead end.
The unavoidable consequence of this is the need to restructure corporately so that their companies can regain competitiveness. Corporate restructuring obviously demands skills, creativity, decisiveness and .pourage. In adopting and applying any of the doses of restructuring, alternatives re-capitalization, divestitures, and acquisitions each of which they’re own primary assumption.
Core area of any businesses usually consider restructuring or responding to changes in the task environment its human resources utilization and management is borne out of the fact that the human factor plays a critical role in the success or otherwise of any organization. Peter Drucker (1974) recognized this when he said that building a new structure or organization requires three-difference kind of work:
- The operating task, which is responsible for producing the results of today’s business.
- The innovative tasks, which creates the company’s tomorrow; and
- The top management task, which gives vision, directs and sets the course for the business of both today and tomorrow.
According to Gail Pollano et al, (2000), since obtaining competitive advantage through corporate restructuring represents a major concern of business managers, human resources rules cannot be underscored. Besides, competitive advantage distinguishes one firm from another, provides positive economic benefits and, according to Pfeiffer (1994) cannot be readily duplicated. Thus, business have discovered that although at a huge cost, traditional sources of success, product and process technology, protected or regulated markets. Access to financial resources and economies of scale, no longer provide much competitive leverage as in the past. Instead, organizations culture and capabilities, which are derived from how people are managed, is proving to be a more vital factor in corporate survival.
Thus, recruiting, utilizing human resources, as a success factors in corporate restructuring is now a major challenge in today’s competitive market place. This is simple because today’s employees are “new breeds” with different values, inspirational needs and motivation from his predecessor. Also, he is better educated being the produced being the product of the knowledge expansion, more aware politically, socially and economically and therefore, more demanding and less easily managed by traditional controls of allthese, utilizing an organizations skilled human resources as a driving force in business strategy is also a major challenge. For instance, many organizations that have gone through restructuring or turn around, aimed at increasing their competitiveness and ensuring adaptability in order to avoid the fate of the legendary dinosaur, in the past few years have done so with their people (human resources).
This fact is clearly buttressed by the existence of a body of research, which stress that human resources management policies are not only action producing but also affect the implementation of business- strategies. John Butler (1988) studies various human resources management options and pointed out how a successful combination of human resources options facilities the exploitation of market opportunities.
1.2 Statement of the Problem
While strategic management is being applied in liberal doses in business organizations in such areas as productivity improvement and balancing of business portfolios, the strategic possibilities in human resources management are frequently ignored. Apparently, they should not be. The result of ignoring the potentials of human resources are employee turnover, sudden hostility, strikes, decreased output, low morale, etc, and the business is worse for it.
1.3 Purpose of the Study
The approaches emerging today is to use growing ideas of management techniques to solve problems facing organizations and which also arises as a result of the dynamics and competitiveness to today’s turbulent business climate.
The purpose of the study is focused on today’s business environment, the change forces and restructuring alternatives, hi view of this, the purpose of this study is in analytical approach to the strategic employed by organization to ensure their continuing survival in the emerging world market that promises survival only to the fittest.
1.4 Objectives of the Study
The main aim of this research is to explore, assess and evaluate the effective or impart of corporate restructuring on employees in organizations.
To achieve the above aims, the following objectives are evolved.
- To identify the methods and processes involved in the corporate restructuring,
- To examine of the attitude and perception of employees toward the restructuringprocess,
- To assess of how the employees view the methods and procedure of the corporaterestructuring in organization.
1.5 Justification of the Study
The business world today is turning up many challenges and opportunities, these could either be internal or external to a business, redefining business practices and the way people view businesses. As a result of the pervasive forces of change, drive toward quality, increasing government regulations, environmentalism, democratization, etc, businesses are today more volatile than ever before. And yet, the lucrativeness and attractiveness, which businesses hold for individual and corporate investors, have not made them totally unable to adjust to change forces in their environment (Gail Pollano et al, 2000)..
While business firms continue to seek a maximization of their profit in a changing and dynamic task environment, they have also not underscored the relevance of human resources as a critical success factor for survival in a turbulent business climate. Consequently, the prudent management of both their human and material resources, also requires an equally corresponding efforts to manage the human resources that is a critical factor if the company goals of a business are to be realized in consonance with the foregoing, it becomes extremely imperative for business managers to appreciate the congruency that is involved in the management of funds. Provision of goods and services and the maintenance of human resources, so that none of the necessary resources serves as a hindrance to the other in the course of business operation.
Furthermore, today there is a growing realization that the human factor is a very critical factor in the success of a business organization, particularly competitivenessin a competitive market. To this end, business are not only spending an ever-increasing amount of money to select, train, retrain and retain their skilled personnel, they now regard personnel as business assets and, therefore, put them on their balance sheet.
1.6 Relevance of Study
The study is considered significant because its findings will provide useful ideas on the effect of corporate restructuring on employees in organizations. The findings will also reveal the extents and constraints in successful corporate restructuring in organizations, with a view to making adjustments where necessary to achieve a more effective of corporate restructuring on employees in organizations. The findings may also; serve as useful source of data for future researchers in this field of study.
1.7 Research Questions
The following research questions are raised in the study.
- Is there any factor which determines if restructuring is necessary for employees’ productivity?
- How can restructuring be used positively to influence employees’ productivity in an organization?
- Is there is a correlation between the survival of a company and the restructuring pattern?
- Is there a correlation between employees’ productivity and the organization survival?
1.8 Research Hypothesis
- H1: Restructuring is a means of improving employees’ productivity and organization’s survival.
- Ho: Restructuring is not a means of improving employee’s productivity and Organization’s survival.
- H1: The survival of a company in the new millennium depends on its responsiveness to the challenges of the time.
- Ho: The survival of-a company in the new millennium does not depend on its responsiveness to the challenges of the time.
1.9 Scope and Limitation of the study
This study shall concentrate on the corporate activities focusing on human resources as a critical factor in terms of strategy put in place to maintain their organization position by ensuring their survival in the emerging economic integration. However, the study may be limited by possible low response rate.
- Limited literature, since much has not been written on the challenges of new millennium in terms of restructuring.
- Financial resources and time.
- The employment of questionnaires as a method of gathering information from the respondents is somewhat tasking as they are prone to treating such enquiries unserious, thus resulting in the delay in filling them on time for processing of the information got.
- Secondly, the discouraging attitude of the average manager or director of an organization who treat such research casually and see it as a waste of company time and the researcher as one who should not be allowed to meddle in company affairs proved a major impediment.
The scope of this study is limited to examining selected organizations in the Lagos metropolis that have restructured in recent times and the role human resources played.
Summary, Conclusions and Recommendations
The purpose of this chapter is to outline the main findings of the study and the conclusion derived from the study. Based on these, conclusions, recommendations and suggestions for further studies are proffered. The study has attempted to explain how the organizations in responding to the challenges of time, adopted corporate restructuring as a means of improving employee productivity in the new emerging economic dispensation which exposes organizations to stiff international competition brought about by global economic integration.
The study focuses on the effect of cooperate restructuring on employees in organizations with special reference to Nigerian Breweries PLC.The research study is divided into five chapters.
Chapter one consists of introduction and background of the study, statement of problem, purpose and objective of the study, justification and significance of the study.
Chapter two considered literature review which includes Introduction of the study, business organization as a concept, organizational control, concept of restructuring in industries, organizational change and management, cooperate restructuring, human resources and human resources management.
Chapter three looks at the Research Methodology that was used during the course of the study which includes the source and methods of collection of data. It also briefly elucidates the methods to be used in the analysis of data in the next chapter. This section is very significant in view of the fact that the methodology employed in a research study determines to a large extent the validity of the findings of the study. It is also pertinent to note that thischapter highlights the problems encountered in the course of collecting data as well as the limiting factors to the effort.
Chapter four considers the Data Presentation and Analysis, such as the following findings of the study:
- Questionnaire method of survey was used as the main instrument for the collection of data on the application of corporate restructuring organizations to ensure their survival in the new economic dispensation. Sixty (150) questionnaires altogether were administered. A total of forty-five (85) was retrieved from the respondents.
- Restructuring facilitates goals and objective attainment. In the findings it actually revealed that 52.94% respondents strongly agreed that restructuring facilitative goals and objective attainment of an organization. This shows to the extent at which the respondents feel it’s good for the organization.
- From the work of management and organizational theorists reviewed, such critical variables as organizational control strategy and its consistency, change management and the involvement of human resources as the most vital was identified as relevant to corporate restructuring.
- These businesses have realized that they operate in a human climate that has become vital in determining their operations. Failure to detect and deal with emerging human climate patterns can devastate the best company management. Consequently, to level with employees, businesses have used various strategies to enlist the participation of their employees in managing change forces in the task environment.
- The study reveals that majority of the respondents strongly agreed that restructuring has led to increase productivity and profitability.
- The study reveals that 52.94% of the respondents in the organization are B.Sc. or HND holders while of respondents…Most members of staff have various educational qualifications as the least falling into the WASC group.
- Although both male and female were represented in the analyses shown in the findings, reveals that majority of the respondents 56.47% are males, and 43.52% are female.
- In the midst of these change forces, government and business have adopted a variety of measures and strategies to survive and some of the measures adopted by the Nigerian government to solve the problem of economic recession that has affected the country in the last 15 to 20 years.
- Many of the measures, Mainly short term have failed to address the issue properly because they are not long term in nature. Besides, such measure have also failed because they truly reflect the character and personality of its originators. The twin problems of corruption and mismanagement still manifest in Nigeria’s national life.
- For business, it used to be that events moved slowly and society changed only a bit at a time, however today, events tend to change with the speed of the electronic signals that propel them.
Some of the corporate restructuring strategies identified in this study such as acquisitions, divestiture and recapitalization were explained, with special reference to recapitalization as the most commonly used instrument by most organizations in Nigeria.
But the process of recapitalizing has always resulted in problems because of the unilateral approach usually adopted by management rather than delegated or shred approaches which promotes participation of employees. Beside, problems also arise when recapitalization is seen as a means to retrench recalcitrant employees. This is the problems some breweries currently face. Even when Nigerian use acquisitions, it is mostly foreign breweries that acquire shares in a Nigeria brewery rather than a Nigerian brewery acquiring shares in another, they also perceive it as another chance to shed staff weight.
The result of analyzed data led to the following findings.
- Challenges facing organizations always necessitate the search for solution to their ineffectiveness and inefficiency problems.
- Declining performance necessitates adoption of restructuring
- The findings also found as “not true” the notion that restructuring leads to worker’s redundancy of business plans, and reorganization of the company structure – no longer pay the dividends that they did in more placid and predictable times.
Since the human resource function provides the technical leadership, it is the role of management in each area of the corporation to identify the human resources needed to meet today’s and tomorrow’s business goals. Thus, in addition to implementing programmes (in such areas as recruitment, training and compensation, mangers use the methods available to them to structure their organizations appropriately.
That is why companies should begin to envisage new roles for their human resource. The five challenges of globalization, profitability through growth, technology, intellectual capital, and change have one overarching implication for business competition. In the new economy, winning will spring from organizational capabilities such as speed, responsiveness, agility, learning capacity, and employee competence. Successful companies will be those that are able to quickly turn strategy into action, manage processes intelligently and effectively to maximize employee contribution and commitment; and to create the conditions for seamless change.
The four hypotheses tested were based on the information gathered from the data collected shows evident that the study that majority of the respondents strongly agreed that restructuring has led to increase productivity and profitability.
Based on the literature reviewed, the data analysis, the summary of findings, and the conclusions of the study, the following recommendations are suggested:
- The organization should pay adequate attention to the business environment in order to develop effective survival strategy which would enable their staff to ensure improved productivity and maintain leadership positions among their competitors.
- Management should strive to cope with challenges of the time. Companies should adopt the total quality management approach in all activities.
- Management should know the change in the new order and innovations being the driving force in today’s business contents. Therefore, they must significantly be changing the organizations future, so that even if only a small percentage of them actually work out, the organization will still be step ahead at competition.
- Management must identify those lacking but needed elements in the human resource to’ meet the contemporary and future objectives of the organization. While strategic management is being applied in liberal does in such areas such as productivity improvement (via automation) and balancing of business portfolios (via acquisitions and divestitures), the strategic possibilities inherent in human resource management are frequently ignored.
- There is a need to build a flexible and adaptive organization, both for today’s work and tomorrow’s innovation. They must push to have sufficient internal diversity in strategies, structures, people and processes to facilitate quick adaptations to the reality of the economic dispensation.
5.5 Suggestion for Further Studies
It is not an overstatement to assert that further research is needed in this particular area of study. This is necessary in order to replicate or improve on the finding of this research. Furthermore, the scope to this research could be widened to cover areas not covered by this research. The areas that will be suggested for further studies include:
Successful survival strategies require a well coordinated sequence of actions. The guiding philosophy should be sharing of responsibilities for strategies which in effect will mean democratizing the strategy making process. The strategy making is no longer a top-down process; the impetus for new strategic innovations will have to come from bottom-up which will give a clear understanding for supportive and unsupportive efforts from all members of the staff.
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