The Management Problem Of Public Enterprises In Nigeria (A Case Study Of PHCN In Owerri District)
This research study tries to investigate the management problems of public enterprises, a case study of power holding company of Nigeria (PHCN).
One of the major objectives of any government is a stable growth and development of the country through industrialization. One of the avenues through which this is achieved is by the establishment of public enterprises.
PHCN, being public enterprises, the research has undertaken to investigate how much it has contributed to the general growth and development of Nigeria and also investigate any managerial problem.
Chapter two talk about the review of the literature on the topic.
Chapter three is about the research methodology, chapter four talks about analysis and interpretation of data.
Chapter five contains conclusions. Followed by recommendations which the researcher believe that research work will be of great benefit to the management of PHCN and other public enterprises that may have similar problems
Table Of Content
- Title Page
- Approval Page
- Table Of Content
- 1.1 Background of the Study
- 1.2 Statement of the problem
- 1.3 Hypothesis Formulation
- 1.4 Objective of the Study
- 1.5 Significance of Study
- 1.6 Scope of the Study
- 1.7 Limitation of Study
- 1.8 Research Questions
- 1.9 Definition of Terms
2.0 Literature Review
- 2.1 Introduction
- 2.2 The Concept and Purpose of Public Enterprises
- 2.3 History and Growth of Public Enterprises
- 2.4 Structure of the Public Enterprise
- 2.5 The Problems of Public Enterprises
- 2.6 Economic Factors
- 2.7 Financial Problem / Mismanagement
- 2.8 Political Factors
- 2.9 Ethnicity Problem
- 2.10 Nigeria Work Attitudes
- 2.11 Administration Factors
- 2.12 Operational Technical Factors
3.0 Research Design and Methodology
- 3.1 Introduction
- 3.2 Sources of Data
- 3.3 Research Instrument
- 3.4 Population Techniques
- 3.5 Sampling Techniques
- 3.6 Methods of Investigation
- 3.7 Reliability of the Instrument
- 3.8 Validity of the Instrument
- 3.9 Method of Analysis
4.0 Presentation and Analysis of Data
- 4.1 Introduction
- 4.2 Data Presentation and Analysis
5.0 Summary of Findings, Conclusion and Recommendations
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendations
1.1 Background Of Study
In any developing economy, the government is the main initiator and promoter economic development, especially in Nigeria. In developing countries, government usually intervene in some areas of the economy in which the private sector cannot perform, according to Abubakar (1986) in order to facilitate the federal government has instituted and made use of many public enterprises over the years.
It would be recalled however that in the fifties and sixties, agriculture was the main stay of the Nigerian economy. The early seventies earned for Nigeria a lot of revenue including revenue from all level that was never anticipated. This new dimension got government involved more with widely diversified investments in areas that span both the traditional public sector and exclusive private sector business.
As a result of this development include oil, agriculture that was the main stay of our economy was later given less attention. Owing to this circumstance, the government investments were sponsored mostly by the oil revenues. The oil boom era (1974-1979) has been described as the golden era for public investment. The government invested in over 30 parastatals and companies within this period.
Most of them have been unprofitable; some cannot even meet their operating costs and have depended on government subventions for their year to year survival. Public co-operations in Nigeria have been considered inefficient and wistful; this is because they have viewed it with the profit criterion. Kindleberger (1986) however Hinks that this is not a fair judgment, economic activities, it is usually not appropriate to use the performance standard of the private sector they are, the objective of private business is profit, while the government enterprises is services to the society or promotion of general welfare.
Olisa (1985) said that prior to independent and after Nigeria was faced with the problem of attaining her social economic objectives, there was no well destined capitalist class that could operate the much needed development through their productive and industrializing activities. The civil service as that time was inappropriate for accelerated development and the country was saddened with the problem of running many businesses.
These parastatals are established out side the civil services and this allows for greater freedom of action, quicker decision making which will promote their efficiency and effectiveness. These corporations are managed through government appointed officials who could utilize the profits accruing from their operations in catering for the public interest (onwudunm:1970). (Ugwu:1990) said that in Nigeria, it is very unfortunate that government have rapid development and this is because the management of these enterprises have constituted the bane of these enterprises.
Most of them failed to meet people’s expectations in terms of provision of goods and services and development in general. The commercially oriented ones neither make profit nor even sustain themselves. All efforts by successive government yield no positive result despite various commissions of inquiring and review parties.
The performance of these enterprises still fall shorts of peoples expectations. It is based on this hat the researcher finds the needs to investigate these problems in power holding company of Nigeria (PHCN).
1.2 Statement Of The Problem
It is important to note that public enterprises in any given economy has important role to play in the rapid socio-economic development of the country.
Government owned enterprises and business in Nigeria are established to accelerate the pace of economic development in which government is the major investor. Due to the important roles associated with the major public enterprises in Nigeria.
There is need for good management for its efficiency. It is a fact that government spends large sums of money in setting up these enterprises and this look forward to making profit. As a result of inefficiency in running these enterprises, federal government and state government have in the recent past set up committee which studied the public corporations and parastatals and recommended privatization and commercialization of some of these enterprises. These enterprises perform so poorly than privately owned business.
Since public enterprises are important in growth of any economy, there is the need to investigate the problems of public enterprises in Nigeria? Also, there is need to identify the reasons for criticism leveled against them. Despite the enormous investment in public enterprises, is Nigeria obviously not getting good value for the money being spent or invested on these public enterprises. This gives the decision to this research on “management problems of public enterprises in Enugu state” using PHCN as a case study.
1.3 Hypothesis Formulation
- Hi: There is a relationship between efficient management of public enterprises and high productivity in Nigeria.
Ho: There is no relationship between efficient management of public enterprises and high productivity in Nigeria..
- Hi: Poor managerial skill affects pubic enterprises in Nigeria
Ho: Poor managerial skill does not affect pubic enterprises in Nigeria.
1.4 Objective Of The Study
This study is aimed at the management problems of public enterprises in Enugu state with a view to identifying these problems and therefore coming up with solutions to them as related to the aforementioned corporation.
This study aims to:
- Identifying some of management problems facing the public enterprises like inadequate finance, poor managerial skills, inadequate infrastructural facilities etc.
- Examining the influence of the problems on the corporations in particular and state as a whole.
- Identify if there is any impact of government interference on their performance.
- Giving recommendation based on the findings of the study and suggesting suitable ways and strategies of improving the managerial efficiency.
1.5 Significance Of Study
In third world countries, public enterprises are noted for their inefficiency and waste of resources. To save the situation, an inquiry is needed in his sector of our economy especially at this time of economic difficulties facing the country.
The country cannot afford to encourage or entertain any kind of economic waste in our public enterprises since if efficiency is maximized, it will definitely have a positive effect on the improve standard of living of the general public. This is the significance of this study. It is roped that the study of the management problems in the public enterprises in Enugu state (PHCN) will help management sort some managerial problems so that both workers and organizations will benefit, and public enterprises will achieve more in future.
1.6 Scope Of The Study
This study seeks to cover various management problems identified in the government owned establishment. Anambra motors manufacturing company. The scope of this study covers whatever problems that will hinder the profitability of this company, sustainability and continued growth. They have so many opportunities to study and require series of contacts in their company. Also they have useful data for kind of study that agencies needed in their work for economy.
1.7 Limitation Of The Study
This is the process, that various management facing in Anambra motors manufacturing company. Their limitation in terms of lime and financial logistics, also lack of encouragement from staff of the organization being studies and administrative bottleneck act as impediments to smooth carry out of this work.
1.8 Research Questions
- How can management proficiency be determined in public enterprise?
- Can the government tackle the problem of the management of public enterprise in Nigeria
- In what ways could the solution of these problems helps PHCN to improve in their management functions
- What impacts could it create in the transformation of PHCN productions
1.9 Definition Of Terms
A warehouse is a commercial building for storage of goods. Warehouse are used by many factors, importers and exporters, wholesales, transport business, customs etc. they are usually large plan building in industrial parts of town. They come equipped with coaling docks to load and unload trucks or sometimes are loaded directly from railways, airports or seaports. They also often have cranes and fore lifts for morning goods.
Is the process by which term applied to the craft or making the producers or a producer or service with customers, both existing and potential. It provides any direction to someone hoping with that, a more modern explanation of what marketing is and what makes it effective. Marketing is a four stop process that begins with analyzing and defining a qualified universe of potential users of buyers.
The consumer deals with the last final customer who buys the product or their aim satisfaction / personal use or student consumer, you could possibly be a member of the markets of the market for “brand name” dothing and shoes, collage book backpacks, newspapers and bicycles. The consumer market covers a wide variety of people of different ages, tender race and etc. as long as they also the end user of product.
Enterprise Management Service:
This provide complete life cycle and configuration management of enterprises assess through an integrated toll suite, we provide “cradle to grave” services utilizing a suite of product for standardized, repeatable processes for procurement. The enterprise management service data base provides the enterprise management service data base provides the resources for continually assessing and improving customer service.
Sales or the activity of selling forms an integral part of commercial activity mastering sales considered by many as some sort of persuading “art on the contrary, the methodological approach of selling, refers to its as a systematic process of repetitive and measurable milestones, by which a sales persons rotate his offering enabling the buyer to visualized how to achieve his goals in an economic ways. Selling is a practical implementation of marketing. It often forms a separation or separate grouping in a corporate structure, employing a separate specialist operatives known as sale men.
5.0 Summary Of Findings, Conclusions And Recommendations
At the end of the presentation of data obtained from the field student, a presentation of the summary of these findings were of great importance and of course a recommendation which the researcher thinks will be of help to the management problem of public enterprises in Nigeria.
Furthermore, efforts were made at presenting the views of various researchers and authors on the problems of public enterprises and this influences the formation of the three hypotheses presented for research.
5.2 Summary Of Findings
The researcher / research attempted to study the development of public enterprises in Owerri with reference to Power Holding Company of Nigeria. In addition, efforts were made of renewing the concepts and purpose of public enterprises. The performance and problems of public enterprises were also reviewed.
Furthermore, efforts were made at presenting the views of various researchers and authors on the problems of public enterprises and this influences the formulation of the three hypotheses presented for research.
Finally, the analysis made in chapter four forms an important part of the discussions that follows. After the data collected have been preserved and analyzed, the following findings were made by the researchers.
- That management’s misplacement of funds reflects its inefficiency.
- That staff salaries were not paid regularly and this affects their appreciation for their job.
- That the exertion of control by the government do not facilitate decision making and do not improve the efficiency of the organization.
- That lack of training staff affects the manpower planning of the organization.
In consideration of this findings, the researcher dealing with the first finding, it was proved that management misplacement of organizational objectives is not the bone of efficiency, this could be attributed to the fact that in so far s the workers are selected on the basis of merit and properly remunerated, and goals could still be realized despite poor performance of management. There are cases in everyday life where workers set to right the wrong-doings of management especially in areas were managers are appointed on the basis of sectional representation and not by merit.
Finally, there was also the finding the execution of control by the government do not facilitate decision making and do not improve the efficiency of the organization. It has been observed that the state and method of government control and interference over activities a public corporation affects it operation. The management is not given the freedom to initiate activities that can guide administration. The management has to seek the approval of the board of directors who in most cases has no knowledge of the business before taking crucial actions.
In some cases, answers may take too long to come. The general managers and the managers who are in organization are likely to be more knowledgeable than a political appointee or members of the board of directors, in organizing and management of company. The management should be allowed to handled issues that need immediate attention or otherwise impair efficiency of the organization.
The success of any business enterprises is entirely dependent upon the efficiency on its managerial system. Therefore, the demand for a strategic managerial approach in such sector as in PHCN in Nigeria cannot be over-emphasized. It is often a misnomer to regard as mere public sector, which cannot be managed efficiently and cost-effectively, the concepts of all disciplines of human endeavour and most especially in the process of technological transformation and commercialization of the enterprise product in Nigeria.
Continuous interference by government, non regular payment of staff salaries and the obvious lack of training staff are within the general preview of management planning and competitive strategy. Efficient management is the key to managing the desired product of the enterprise available to the public at the right time. The enterprises product, being a strategic product in Nigeria, the government and other agencies connected with he marketing and distribution are hereby called upon to find a lasting solution to the management problems associated with the company (PHCN) by complementing the recommendation attempt to provide solution to the problems earlier identified in the study.
As a result of the importance of government owned companies in the development of the economy and their problem expressed by the respondents in the course of the research work, the following recommendations were made by the researchers;
These will help in improving the performance of the public enterprises in particular and the nations economy at large.
- The management should maintain a dear rationalized staff established policy and procedure consistent with its defined goals and the mechanisms for their attainment. Staffing should bee seen as one of the most important functions in the establishment. The management should appoint and promote their personnel on the basis of some rational guidelines.
- Adequate revenue should be allocated to government owned enterprise. Due to the grossly inadequate allocation of revenue, many facilities and equipment have been ground. This led to the reduction in the service the organization can offer and led to low patronage. Funds should be made available to enable the enterprise to acquire modern facilities and maintain properly the ones they already have.
For the purpose of the organization, management should be given some means of authority in taking quick routine decisions as necessary by contingency without interference of government or board of directors. The management should initiate new plans that are necessary for the successful operation of the company because being part of the organization, they can identify fully with the aspirations and problems of the company.
We agree that management is important because every human organization requires effective management to be successful.
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