Public Sector Reforms And Its Impact Or Organizational Productivity

Project and Seminar material for Public Administration

Public Sector Reforms And Its Impact Or Organizational Productivity


Abstract


This study examines public sector reform and its impact on organizational productivity, a case study of Lagos state civil service commission. The study also examines the institutional details, of the economic environment. The organization being the mostly rapidly growing and technologically dynamic sector of the economy. Pressure to move the sector out of its traditional public utility, monopolistic status is being exerted all over the world and is ultimately irresistible. Data were elicited through the administration of research questionnaires among the sample respondents that were selected for the study. A total of 120 questionnaires were administered while 100 were returned. The single percentages and frequency distribution tables were adopted in the analysis, while the Chi-Square statistical technique of hypothesis was employed in confirming the proposed research hypotheses. From the findings of the study, it can be concluded that public sector reform would significantly help in motivating the private sector in achieving greater performance and growth. Also, resituating of the public service influences to a greater extent the efficiency and effectiveness of the private sector. Finally public reform programmes and job creation have significant relationships between poverty reduction and job wealth creation respectively.


Table of Content


  • Title Page
  • Certification
  • Dedication
  • Acknowledgement
  • Table of Content
  • List of Tables
  • Abstract

Chapter One:

Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objective of the Study
  • 1.4 Research Questions
  • 1.5 Research Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Scope of the Study
  • 1.8 Limitation of the Study
  • 1.9 Definition of Terms
  • 1.10 Organisations of the Study

Chapter Two:

Review of Literature

  • 2.1 Conceptual Framework
  • 2.2 Theoretical Framework
  • 2.3 Empirical Review

Chapter Three:

Research Methodology

  • 3.1 Research Design
  • 3.2 Population of the Study
  • 3.3 Sample Size Determination
  • 3.4 Sample Size Selection Technique and Procedure
  • 3.5 Research Instrument and Administration
  • 3.6 Method of Data Collection
  • 3.7 Method of Data Analysis
  • 3.8 Validity of the Study
  • 3.9 Reliability of the Study
  • 3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

  • 4.1 Data Presentation
  • 4.2 Analysis of Data
  • 4.3 Answering Research Questions
  • 4.4 Test of Hypotheses

Chapter Five:

Summary, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • References
  • APPENDIX
  • QUESTIONNAIRE

Chapter One


Introduction

1.1 Background of the Study

In recent years, many developing countries have embarked on the reform of public enterprises, including privatization, within the framework of macroeconomic reform and liberalization. More than 100 countries across the continent, most of them developing have privatized some of their state-owned enterprises (SOEs). Equally striking is the volume of transactions. Between 1988 and 1993, over 26,000 privatization transactions with sales values exceeding US$50,000 each were recorded world-wide, generating a gross receipt of US$271 billion. Of these transactions, about 900 were conducted in 1993 alone, against only about 60 in 1988. Developing and transition economies accounted for much of this tremendous growth (Sader, 1995). Between 1988 and 1994, developing countries around the world sold about 3,300 SOEs, with sales revenue rising from only US$2.6 billion at the beginning of the period to a peak of US$29 billion in 1992 (Megyery and Sader, 1997).

The resort to privatization/commercialization was informed by several considerations.

First, by 1985, the quantum of resources required to sustain the SOEs had become an unbearable burden on the affected nations. Second, it was envisaged that a carefully planned privatization program would be an effective strategy for improving operational efficiency, broadening share ownership, attracting foreign investment and reducing the role of the state where the private sector has the capabilities to operate more efficiently. Finally, since the beginning of the 1980s, privatization of public enterprises has become a major policy tool in both developed and developing countries following the apparently successful privatization program in Britain. Privatization gained considerable momentum in developing countries given its endorsement by the multilateral financial institutions as a major plank of adjustment policies. The urge for privatization was further reinforced by the need to reduce government expenditure in the face of burgeoning fiscal deficits, and was also in conformity with the resurgence of “economic liberalism” in the development literature.

Yet despite widespread privatization efforts, empirical evidence indicates that its anticipated benefits are yet to be felt in African countries. Most studies have documented the relatively pear performance of SOE reform efforts in Africa compared with other areas of the world in both relative and absolute terms (World Bank 1996; Kikeri et al., 1992; Adam et al., 1995). However, only limited efforts have been made to identify the causes and determinants of the uniquely unsatisfactory performance of SOE reform in Africa relative to other environments. As in most developing countries, the Nigerian economy until recently witnessed a growing involvement of the state in economic activities. The expansion of state-owned enterprises (SOEs) into diverse economic activities was viewed as an important strategy for fostering rapid economic growth and development. Massive foreign exchange earnings from crude oil, which exacerbated unbridled federal government investment in public enterprises, reinforced this view. Thus, by 1990, there were over 1,500 public sector enterprises in Nigeria, 600 of which were owned by the federal government and the rest by state and local governments (Jerome, 1995). The public enterprise sector excluding Petroleum accounted for about 15% of Nigeria’s gross domestic product in 1990.

Unfortunately, most of the enterprises were poorly conceived and economically inefficient. They accumulated huge financial losses and absorbed a disproportionate share of domestic credit. By 1985, they had become an intolerable burden on the budget, as they were being sustained through budgetary allocations from the treasury. In the wake of the economic recession that began in 1981, following the collapse of oil prices, the activities of public enterprises attracted more attention and underwent closer scrutiny, much of it centering on their poor performance and the burden they imposed on government finance. The poor financial returns from these enterprises against the background of severe macroeconomic imbalance and public sector crisis precipitated the concern of government towards privatization.
With the adoption of the structural adjustment program (SAP) in 1986, SOEs came into the forefront as a major component of Nigeria’s economic reform process. Consequently, the Technical Committee on Privatization and Commercialization was established in 1988 to implement the SOE reform component of SAP. In what appears to be a uniquely comprehensive initiative, 101 enterprises in virtually all sectors were slated for total or partial privatization and another 35 for commercialization. Subsequently, public utilities such as Nigerian Telecommunications Limited (NITEL), the Nigerian Postal Services, Nigerian Airways and the Nigerian Electric Power Authority, among others, were restructured and reoriented towards higher efficiency. Nigeria is probably the only country in the world that carried out a hybrid program of privatization and commercialization simultaneously. The decree defined commercialization as the reorganization of enterprises, wholly or partly owned by the government, into profit making commercial ventures without subvention from the government. The process entails explicit performance-based contracts with managers of SOEs. In return for managers’ expanded power over pricing, procurement, production and personnel, the enterprise is subjected to a hard budget, which entails cutting subsidies and transfers.


1.2 Statement of the Problem

Public sector reform is a critical component of governance aimed at enhancing efficiency, transparency, and accountability in the delivery of public services. In the context of Nigeria, a country grappling with various socio-economic challenges, the impact of public sector reform on service delivery is a topic of significant concern.

The Nigerian public sector has undergone multiple reform initiatives in recent years, including efforts to streamline bureaucracy, improve financial management, and enhance the overall effectiveness of public institutions (Iheduru, 2018). However, despite these reform efforts, there is a growing body of evidence suggesting that the anticipated positive impact on service delivery has not been fully realized (Olowu, 2016).

One key aspect contributing to the problem is the persistence of bureaucratic bottlenecks and corruption within the public sector (Ikelegbe, 2018). Despite attempts to address these issues through reform measures, such as the establishment of anti-corruption agencies, the extent to which these initiatives have translated into tangible improvements in service delivery remains questionable.

Furthermore, the implementation of public sector reforms in Nigeria has often faced challenges related to weak institutional capacity and a lack of sustained political will (World Bank, 2019). The success of reform initiatives is contingent on effective implementation and the commitment of key stakeholders. In Nigeria, issues such as inadequate infrastructure, limited financial resources, and political instability have hampered the full realization of the intended benefits of public sector reforms on service delivery.

The problem is further exacerbated by a lack of comprehensive evaluation frameworks to assess the impact of public sector reforms on service delivery outcomes in Nigeria (Oyinlade & Abiola, 2020). The absence of robust monitoring and evaluation mechanisms makes it difficult to gauge the effectiveness of reform strategies and identify areas that require further attention.

Nigeria has undertaken significant public sector reforms, the impact on service delivery remains a pressing concern. Addressing the identified issues, including persistent corruption, weak institutional capacity, and inadequate evaluation mechanisms, is crucial to ensuring that public sector reforms translate into tangible improvements in the delivery of essential services to the Nigerian population.


1.3 Objective of the Study.

The main objective of the study is to examine the public sector reforms and its impact on organizational productivity; the specific objective of the study is;

  1. To Assess the Influence of Bureaucratic Reforms on Service Delivery
  2. To Examine the Role of Anti-Corruption Measures in Enhancing Service Delivery and productivity
  3. To Evaluate the Institutional Capacity and Political Will for Reform Implementation and its impact on organizational productivity

1.4 Research Questions

In carrying out this study, the following questions are necessary:

  1. To what extent have bureaucratic reforms in the Nigerian public sector influenced the efficiency and effectiveness of service delivery?
  2. How effective are anti-corruption measures, implemented as part of public sector reforms in Nigeria, in mitigating corrupt practices and fostering a conducive environment for enhanced service delivery?
  3. What role does institutional capacity play in influencing the implementation and sustainability of public sector reforms?

1.5 Hypothesis of the Study

The following hypothesis was formulated and tested by the study;

  • Ho: There is no significant relationship between public sector reforms and organizational productivity and service delivery
  • Hi: There is a significant relationship between public sector reforms and organizational productivity and service delivery

1.6 Significance of the Study

The significance of the study on the impact of public sector reform on service delivery and productivity in Nigeria lies in its potential to contribute valuable insights to policy formulation, decision-making, and academic discourse.

Understanding the impact of public sector reform on service delivery is crucial for policymakers. The findings of the study can provide evidence-based insights into the effectiveness of specific reform measures, enabling policymakers to refine existing policies or design new ones that better address the challenges hindering optimal service delivery and productivity in Nigeria.

The study’s outcomes can contribute to fostering a culture of transparency and accountability within the Nigerian public sector. By identifying areas where reform initiatives have succeeded or fallen short, the research can guide efforts to strengthen governance mechanisms, reduce corruption, and enhance overall accountability, leading to improved service delivery.

Understanding the impact of public sector reform on productivity allows for more efficient resource allocation. Policymakers can prioritize areas that have shown positive results in terms of service delivery improvements, ensuring that limited resources are directed toward initiatives with the highest potential for positive societal impact.

The study contributes to the academic understanding of public sector dynamics in Nigeria. It can serve as a foundation for future research, encouraging scholars to explore specific aspects, delve deeper into identified challenges, and propose innovative solutions. This scholarly contribution is essential for building a knowledge base that informs both national and international discussions on public sector reform.

The findings of the study can empower civil society organizations, advocacy groups, and other stakeholders to engage in informed discussions and advocacy. Armed with evidence about the impact of public sector reform, these groups can actively participate in dialogue, demand accountability, and collaborate with the government in shaping policies that align with the needs and expectations of the Nigerian population.

The study’s findings can contribute to the global discourse on public sector reform by offering insights into challenges and successes unique to Nigeria. Comparative analyses with other countries undergoing similar reforms can provide a broader understanding of effective strategies and lessons learned, facilitating international collaboration and knowledge exchange.

In summary, the study’s significance extends beyond academic curiosity, influencing policy decisions, governance practices, resource allocation, and the empowerment of various stakeholders. By shedding light on the impact of public sector reform in Nigeria, the research contributes to the ongoing efforts to improve service delivery and productivity for the benefit of the Nigerian populace.


1.7 Scope of the Study

The study will analyze the public sector reforms and its impact on organizational productivity in Lagos State. The study is limited to some selected public offices in the state. Hence, the respondents for this study will be obtained from and among the civil servants.


1.8 Limitation of the Study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. However, the researcher were able to manage these just to ensure the success of this study.


1.9 Definition of Terms

Public Sector:

The public sector, also called the state sector, is the part of the economy composed of both public services and public enterprises.

Public Sector Reform:

Public sector reform consists of deliberate changes to the structures and processes of public sector organizations with the objective of getting them to run better.

Service Delivery:

Service delivery is a business idea and framework, the main goal of which is to provide services from a vendor to a customer. This includes the regular interactions between the two parties throughout the entire process of the business supplying the service and the client purchasing it.


1.10 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 (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
  • Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
  • Chapter three deals on the research design and methodology 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, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings on the public sector reforms and its impact on organizational productivity using Lagos State civil service commission as case study. The chapter consists of summary of the study, conclusions, and recommendations.


5.2 Summary of the Study

In this study, our focus was on the public sector reforms and its impact on organizational productivity using Lagos State civil service commission as case study. The study is was specifically focused on assessing the Influence of Bureaucratic Reforms on Service Delivery, examining the Role of Anti-Corruption Measures in Enhancing Service Delivery and productivity and evaluating the Institutional Capacity and Political Will for Reform Implementation and its impact on organizational productivity.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 100 responses were validated from the enrolled participants where all respondent are staff of Lagos State civil service commission.


5.3 Conclusions

With respect to the analysis and the findings of this study, the following conclusions emerged;

In this age of globalization, it is essential to say that for the public sector that the Nigerian public sector has come of age and for it to be able to cope with international demand, there is need for the principles New Public Management and ideal public sector to be observed. Governments are faced which centre on improving on the management of human resources, training of public servant, high competition from the domestic and foreign investors, exploiting modern information technology to the maxim in the course of running public administrative activities, ensuring and enforcing performance through constant control and accountability of public workers, effective delegation of authority from superior to subordinate and proper devolution of government institutions to enhance smooth administration. In this age of new Nigeria where the desire for a change is rising up every day, there is need for the Nigerian government to consider the global economic market and public sector dynamism which characterized the international arena. To be able to do this perfectly, there should be good governance that will give way for transparency, accountability, rule of law, equity, justice and constitutional government.

Findings from the study revealed that problems of the public sector is vast ranging from unavailability of industrial machines, poor road network and transportation, energy and utilities. Findings from the study also reveals that the level of government support has been on the average hence inability to finance industrial project. This has also lead to the increase reliance on imported. Finally the result of the study shows that government have been challenges with problems in managing the sector this is rooted in corrupt behaviour of politicians who lobby for contracts and when awarded with it, they abandon the project or embezzle the fund and the resistance to change of public servant who has refuse to remain accountable and transparent while discharging their duties.


5.4 Recommendation

Base on the result of the study, the researcher recommends that there is need for the Nigerian government to consider the global economic market and public sector dynamism which characterized the international arena. To be able to do this perfectly, there should be good governance that will give way for transparency, accountability, rule of law, equity, justice and constitutional government.

Finally, before leaders decided to adopt any kind of change like reforms into public sectors they have to conduct pilot study to some of the departments to measure reliability of the change, the change also supposed to be publicized to the civil servants so as to make them aware with what is about to take place.


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