The Effect Of Poor Management In Private Owner Establishment

Project and Seminar Material for Business Administration and Management BAM

The Effect Of Poor Management In Private Owner Establishment


This study was designed to give an insight in the effect of poor management in private owned establishment.

In attempt to focus the study there are formulated research questions.

  1. Cause of poor management
  2. How effect of poor management affected power life limited.
  3. How effects poor management can be prevented

A questionnaires constructed and issued to 16 staff used as sample from power lux limited. The result of the study indicated that the effects of poor management is very disastrous to the private sector as well as the economy. following this findings some implications were highlighted upon which recommendations were made on how to reduce the effects of poor management in private sectors and the of study.

Chapter One


1.1 Background of the Study

All over the world management is know to be the very aspect that has contributed immensely in the development of any country’s economy. It is also refer to coordination of the resources of an organization through the co-operative efforts of others in order to achieve a given target or objective but when any establishment or economy is enable to co-ordinate its resource and the activities of others. Through the process of planning organization directing and controlling in other to achieve a set objectives then poor management is in place. Poor management could also result from inadequate managerial ability. It could be the inability of the management to utilize the scarce resources under their control as well as the inability to apply the required manpower for executing a particular task. An establishment or organization could experience poor management when all the require equipment unable to manage the scarce resources effectively this is the possibility of ineffective management. Poor management goes with a lot of uncountable effects which are disastrous and spread like a wild fire. No establishment or economy will like to experience the effect of poor management but nobody can change it especially which poor management has been nursed in an establishment.

In a situation like this no individual will like to associate with such establishment there by scaring people away and the work as of such establishment to not stand the chance of being exposed in any from.

The contribution of land capital and labor are not effectively utilized the inability to communicate effectively with the outside world and not being able to compete favorable with other establishments which leads to the lost of people/ public interest.

Furthermore the services rendered are very poor not to talk about the substandard quality of their products resulting from their absence of training and not applying the modern techniques of management and production the establishment will only be coming across losses and no profit will be made. The is a state and no individual will be encouraged to do business with such establishment because the quality of their service is below what is expected and the economy of the country is affected badly. Worldwide, state-controlled or centrally planned economies are being substituted with market-oriented economies with the private sector as the main engine of growth. In that regard, several developing countries have embarked on initiatives to boost the private sector. These initiatives include new investment regime, trade liberalization and privatization of state owned enterprises. The emphasis on private sector development coupled with the growing globalization of world production and trade in recent years have made investment, particularly foreign direct investment very crucial in industrial development in particular and economic development in general.

Over the years, Nigeria, like other developing countries, has adopted a private sector-led growth with emphasis on policies that will promote investment and industrial development. Recognizing the leading role of the private sector organizations in economic growth does not necessarily mean that the nature of its role in fully understood. With so much focus on the role of the private sector throughout the world , the key question to ask is how can the problems/challenges and prospects of private sector organizations be harnessed and managed to bring about economic growth and a sufficient quality of life to the people. Providing answers to this question amongst others is the sole objective of this paper, and doing this is more important to developing countries like Nigeria who are always at the receiving end of different development paradigms. It needs be pointed out that posing such a question as the sole aim of the paper in no way discounts the essential and invaluable prospects of the sector.

Organizational effectiveness rests on the efficient and effective performance of workforce that makeup the organization. The efficient and effective performance of the workforce in turn, rest on the richness of the knowledge, skills and abilities possessed by the workforce. Capacity building and development in most organizations is a continuous act/exercise. The inexorable march of time and the ceaseless glamour for social change combine to make adaptability and continuing preparation of the workforce as inevitable as the initial acquisition of knowledge and skills. This cannot happen if employees‟ capacity building and development do not occur in an enterprise. In other to maximize the productivity and efficiency of the organization, every executive, manager or supervisor in a public or private organization has the responsibility and indeed the bounding duty to ensure the development of their employees who have requisite knowledge and expertise (Dada, 2004) Capacity building is like sharpening an existing skill in order to reflect the trends in technology and other social –cultural environmental changes of an organization. Productivity is the goal of today‟s competitive business world and capacity building can be a spring board to enhance productivity. The aim is to enable them contribute their full measure to the welfare, health and development of the organization (onah 2007). The main objective of capacity building and development in FRSC is to increase efficiency of employees with 2 the resulting increase in corporate productivity. This accounts for why a large number of fund and time is expected by organization at one period or the order in the improvement of the skills of their employees at various levels.

The principal intention of capacity building according to Akinola (2007), is to equip people with the knowledge required to qualify them for a particular position of employment, or to improve their skills and efficiency in the position they already hold. Manpower development on the other hand, implies growth and the acquisition of wide experience for future strategic advantages of the organization. Capacity building and development therefore, improves the effectiveness and efficiency of the employee. Therefore, the aim of this research is to know the current state, nature, procedure and method of capacity building and development used by the Guaranty Trust Bank for their employees and let‟s not forget that any organization that has no plan for the capacity building and development of its staff is less than dynamic for learning is a continuous process and acquired skills get obsolete when the environment changes. Also, a popular caption in the field of personnel management says, “If you think capacity building and development are expensive try ignorance‟‟. While capacity building and development prosper organization, ignorance destroys it. Therefore, workers like machines must be updated on constant basis or else, they end up becoming obsolete or misfit (Muhtar, 2007).

1.2 Statement of the Problem

The challenge of human capital development for developing nations is daunting. This is in consideration of how far ahead the rest of the world is and the enormous efforts and resources required of them to catch up. Nigeria’s high population, vast socio-cultural diversity, yet-to-mature political culture and the great hope repose on her to emancipate the black-race, makes the challenge even more critical for us. The good news however, is that there is cause for great optimism because the nation has more than enough human capital potentials to surmount the challenge if harnessed, activated and effectively channeled. It is in view of the above that the researcher intends to investigate the effect of poor management in private own establishment.

1.3 Objective of the Study

The main objective of this study is to ascertain the effect of poor management in private owned establishment; but to aid the completion of the study, the researcher intends to achieve the following specific objectives;

  1. To ascertain the effect of poor management on organizational performance
  2. To examine the impact of poor management on the effectiveness of private owned establishment
  3. To examine the relationship between poor management and organizational performance in a private organization
  4. To ascertain the impact of poor management on the profitability of private establishment

1.4 Research Hypotheses

The following research hypotheses were formulated by the researcher to aid the completion of the study;

  1. H0: there is no significant relationship between poor management and organizational performance in a private organization
    H1: there is a significant relationship between poor management and organizational performance in a private organization
  2. H0: poor management does not have any impact on the effectiveness of private owned establishment
    H2: poor management does have an impact on the effectiveness of private owned establishment

1.5 Significance of the Study

It is believed that at the completion of the study, the findings will be of great importance to the management of private establishment as the study seek to explore the nemesis of poor management style in private establishment as this will retard the growth and profitability of the firm; the study will also be of importance to researchers who intend to embark on a study in a similar topic as the findings will serve as a reference point to further research.

Finally, the study will be of great importance to entrepreneur, student, teachers, academia’s and the general public as the study will contribute to the pool of existing literature on the subject matter and also contribute to knowledge.

1.6 Scope and Limitation of the Study

The scope of the study covers the effect of poor management in private owned establishment with emphasis on powerful Ltd Enugu state. But in the cause of the study, there are some factors that limited the scope of the study;

a) Availability of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study.

b) Time:

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Finance:

The finance available for the research work does not allow for wider coverage as resources are very limited as the researcher has other academic bills to cover

1.7 Operational Definition of Terms

Poor Management

Poor management skills carry long-lasting effects and may infect an entire organization. The results of toxic, misguided leadership reach far and wide.

Private Establishment

Private industries and services are owned or controlled by an individual person or a commercial company, rather than by the state or an official organization.

Capacity Development

Capacity development is the process through which individuals, organizations and societies obtain, strengthen and maintain the capabilities to set and achieve their own development objectives over time.

1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows.

  • Chapter one is concern with the introduction, which consist of the (background of the study), statement of the problem, objectives of the study, research questions, research hypotheses, significance of the study, scope of the study etc.
  • Chapter two being the review of the related literature presents the theoretical framework, conceptual framework and other areas concerning the subject matter.
  • Chapter three is a research methodology covers deals on the research design and methods adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study.

Chapter Five

Summary Conclusion and Recommendation

5.1 Introduction

It is pertinent to note that this research was aimed at examining the effect of poor management in private own establishment.

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of poor management in private own establishment.

5.2 Summary

Different organization meets the above mentioned challenges in different ways. Clearly there is no magic bullet in achieving success. Business success is a consequence of embracing the whole package of strategies in order to succeed. Selling a variety of products or offering a variety of services is just as important as embracing prudent financial management systems. The development of SMEs and its effective promotion have not been approached seriously in Nigeria; hence, the lack of their impact in the economy. In Nigeria, various governments instituted various programs aimed at developing SMEs sector. The Non-Governmentalorganization and Donor Agencies are currently involved in the promotion of private establishment in Nigeria.

5.3 Conclusion

Having critically discussed the challenges and prospect of private sector organizations in Nigeria, we shall now draw our conclusions on the strength of the total evidence available to us. Clearly, there is growth in the financial performance of private sector organizations. In recognition of their critical role in the economy, various policies and other numerous initiatives are usually undertaken by governments to create an enabling environment for increased private sector involvement in the economy. Organizations in this sector are witnessing increase trend in profitability ratios and recording healthy fluctuations in these ratios. Organizations by their very nature process and transform organizational resources (input) into products and services (output). To measure organizational performance is to measure how effectively and efficiently the transformation process takes place. The prospect for private sector organizations led growth in Nigeria is very high. The success of this hinged on all those series of initiatives and policies of the government to advance private sector led growth by encouraging enterprising Nigerians, to participate in the transformation of the country into an economy that is robust, stable, dynamic, competitive and export-led.

5.4 Recommendation

The following recommendations and suggestions are made in order to improve the rapid growth of a resilient and competitive private sector, which is a key component of sustainable economic reform programs of the government: Having examined the generic policy management of private sector organizations, the pointer is that to achieve a desired sustainable private sector led growth of the economy, it is imperative for government to continuously put in place policies and programs that will encourage private sector participation and contribution to the development process.

In addition to government policies presently being implemented appropriate fiscal and monetary polices within the context of economic reforms should be initiated, developed and adopted. This will amongst others improve access to banking services and available credit facilities to the sector. Ensuring stable policy environment and harmonizing various policies through regular consultation with the government and the private sector and reorienting the role of the government as a facilitator to private sector development by doing away with its involvement in commercial activities at a faster pace. There is need for sustained collaboration between government and the operators of private sector organizations by providing adequate incentive and the needed enabling environment to stimulate and foster the growth of the private sector organizations in Nigeria.

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