Management of Public Enterprises in Nigeria
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MANAGEMENT OF PUBLIC ENTERPRISES IN NIGERIA: A CASE STUDY OF NTA, AWKA
BY
EZEUDU, TOCHUKWU SIMON PG/M.Sc/09/51120
DEPARTMENT OF PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT UNIVERSITY OF NIGERIA, NSUKKA
OCTOBER, 2011
MANAGEMENT OF PUBLIC ENTERPRISES IN NIGERIA: A CASE STUDYOF NTA, AWKA
BY
EZEUDU, TOCHUKWU S. PG/M.Sc/09/51120
BEING A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF SCIENCE (M.Sc) OF THE DEPARTMENT OF PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT
UNIVERSITY OF NIGERIA, NSUKKA
OCTOBER, 2011
i
TITLE PAGE
MANAGEMENT OF PUBLIC ENTERPRISES IN NIGERIA: A CASE STUDY OF NTA, AWKA
ii
CERTIFICATION
I, Ezeudu, Tochukwu Simon, a post graduate student of Department of Public Administration and Local government, whose Registration number is PG/M.Sc/09/51120 has satisfactorily completed the requirement for the award of Master of Science (M.Sc) in Public Administration and Local Government of the University of Nigeria, Nsukka. The work embodied in this research study (Thesis) is original and has not been submitted in part or in full for any other certificate, diploma or degree of this or any other University.
_______________ _____ ____________________ PROF. C. OFUEBE Project Supervisor
_______________ _____ ____________________ PROF. FAB. O. ONAH Head of Department
_______________ ____________________ _____ PROF. O.E. EZEANI Dean of Faculty
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APPROVAL PAGE
This Thesis has been approved for the award of Master of Science degree in Public Administration and Local government, University of Nigeria, Nsukka.
_______________ _____ ____________________ PROF. C. OFUEBE Project Supervisor
_______________ ____________________ _____ EXTERNAL EXAMINER
_______________ _____ ____________________ PROF. FAB. O. ONAH Head of Department
_______________ ____________________ _____ PROF. O.E. EZEANI Dean of Faculty
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DEDICATION
This work is dedicated to God Almighty for his guidance and love throughout my stay in this institution and to members of my family.
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ACKNOWLEDGEMENT
I wish to first register my sincere gratitude to God Almighty who granted me the special grace throughout the period of my study at University of Nigeria, Nsukka. My heartfelt appreciation goes to my supervisor, Prof. C. Ofuebe, who inspite of his tight schedule still devouted time to supervise this work. His priceless effort, endurance, painstaking and meticulous contribution immensely led to the success of this research work. My profound gratitude goes to my brothers, Ugochukwu, Emeka, Chijioke, Ejike, Anayo, Ikechukwu, Chidi and Obiora, and to my lecturers and other staff of the Department of Public Administration and Local government, their contribution cannot be over-emphasized. I must express gratitude to my good friends, Dibua Tochukwu, Nweke Chikwendu, Ugwu Julius, Mr. Tochukwu Oguegbe, Ozuru Kenneth, Innocent Nwangwu,
Yuni
Dennis
Nfor,
Onyema
Bourgeoisie,
Ndive
John,
Chukwuemeka Okafor, Ezeh Henry, Iwuchukwu Akunne, Eze Egodi, Umeokafor Chidinma, Audu Amodu, and others who helped me in various ways to boost my ego in this University. Uni versity. Finally, I wish to thank staff members of NTA, Awka for their contribution and information. EZEUDU, TOCHUKWU S.
PG/M.Sc/09/51120
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ABSTRACT
Management in all ramifications has been noted as a critical and indispensable element in all organizations. Nevertheless, public enterprises are in dilemma of some management constraints, which tend to hinder their goals and objectives. Against, the background of the above explication, this research work empirically explored into the management of public enterprises in Nigeria with a particular reference to Nigeria Television Authority, Awka. The purpose of which is to investigate the management problems of NTA, Awka and as well pro proffer ffer solution to such problems. However, in order to investigate this, relevant data were collected through both primary and secondary sources such as direct interviews and well structured questionnaire distributed to some staff in various departments of the organization. Also other information was gathered from books, journals, newspapers, unpublished materials and internet to complement the primary data. From the analysis of the data, the findings shows that there are factors that constitutes management problems of the company. Among the critical factors are managerial inefficiency and government interference, bureaucratic corruption, poor staff relationship, lack of motivation, conflicting objectives, lack of training and development, excessive control nepotism. These were identified as impediments of operational efficiency of NTA, Awka. As a result of these problems the following recommendations were made. Management should accelerate the growth of the company through increase in skill and knowledge acquisition. Also training and motivation is important. Government should curtail its excessive interference and control on the affairs of this organization. It was also recommended that adequate measure should be in place to check the menace of corruption in the company. Furthermore, improvement should be encouraged in staff relationship. Achievement of efficiency and effectiveness depends to the extent management deviates from the above mentioned problems; otherwise, achievement of goals and the task of promoting economic growth and a nd development will ever remain a dream.
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TABLE OF CONTENT
Title page
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Certification page -
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Approval Page
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Dedication -
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Acknowledgement -
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Abstract
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Table of Contents -
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CHAPTER ONE: Introduction
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Background to the Study -
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1.2
Statement of the Problem -
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1.3
Objective of the Study
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1.4
Significances of the Study
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1.5
Scope and Limitations of the Study
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CHAPTER TWO: Literature Review and Methodology
2.1
Literature Review -
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2.1.1 The Concept of Management
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2.1.2 The Public Enterprises
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2.1.3 Reasons for the failure of Public Enterprises -
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2.1.4 Factors Affecting Management of Public Enterprises in Nigeria
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2.1.5 Gap in the Existing Literature
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2.2 Hypotheses
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2.3 Operationalization of the Key Concepts -
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2.4 Methodology -
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2.5 Theoretical Framework
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3.1 Background information on NTA Awka -
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CHAPTER THREE
CHAPTER FOUR: data presentation, Analysis and finding
4.1 Lack of good Knowledge of Management and Operational Efficiency of NTA, Awka -
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4.2 Government Interference, Conflicting Objectives, bureaucratic Corruption, Lack of Motivation and Lack of Training and Development are the Management Problems of NTA, Awka
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4.3 Management Inefficiency and Poor Performance are the effects of Management Problems on the Operational Efficiency of NTA, Awka. -
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CHAPTER FIVE: Summary, Conclusion and Recommendation
5.1 Summary
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5.2 Conclusions
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5.3 Recommendations
Bibliography
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CHAPTER ONE INTRODUCTION 1.1
Background to the Study
In most Countries of the world, particularly the developing ones, the decades following World War II (particularly, the 1960s and early 1970s) witnessed a massive intervention of the government in national economics. One of the ways through which the government intervened in the economies of these countries was by establishing public enterprise state-owned companies. According to Ezeani (2006:211) stated “that public enterprise was seen as veritable tools for achieving national socio-economic development”. Thus, since the 1950s, successive governments have used public intervention in the development process. This was eloquently stated in the Nigeria Second National Development plan (1970-74) thus: their primary purpose is to stimulate and accelerate National economic development under conditions of capital scarcity and structural defects in private business organizations. There are also basic considerations arising from the dangers of leaving vital sector of the national economy to the whims of the private sector often under the direct and remote controls of foreign large scale industrial combines co mbines
Also according to Nwoye (2001:1) opined “that there are many reasons for establishment of public enterprises, which one of them is development emphasis, he further stated that in many developing countries, the resources available to the private sector are not adequate for the
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provision of certain goods and services for example, the investment required in the construction of a hydroelectricity-generating plant or a water scheme for large urban center are quite enormous and the returns on such investment will take a very long time to realize. Ozor (2004:10) stated that “like many other British-ex-colonial territories, Nigeria realized soon after political independence that she still had to battle for her economic independence. Her weak economic base limited infrastructural facilities, paucity of social service-providing inadequate local financial entrepreneurship etc. Furthermore, Adeyemo (2005:224) stated that “other factors that accelerated the growth of Nigeria’s public sector was the indigenization policy of 1972 1 972 as enacted by tthe he economy, the policy furt further her provided much needed legal basis for extensive government participation in the ownership and control of significant sectors of the economy”. Ugorji (1995:541) also observed that “public enterprises have also been established for political reasons; many government undertakings are used to provide jobs for constituents, political allies, and friends, Public Enterprises and the distribution of government employment were further been defended in the need to maintain “federal character” and promote national integration. Consequently, the Public Enterprises especially in developing countries became active in likely sectors such as manufacturing,
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construction, finance, services, utilities, transportation, agriculture, natural resources, etc. According to Ezeani (2006:21) stated that “the colonial government established some public enterprises to provide essential services like electricity, railway, telecommunication and pipe borne water to mention but a few.” Also according to Obadan and Ayodele (1998:1) they opined that “it is in order to put socio-economic development underway and also guard government finances under conditions of capital scarcity and structural detects in private business organizations, Nigeria and most other African countries, regardless of Ideological dispositions, unavoidably made fairly extensive use of public enterprises for resource mobilization and allocation, particularly within the utilities and social services sectors as (NTA, Awka) in the 1950s through the 1960s. In both technical and economic perspectives Public Enterprises are seen as: Organizations whose primary function is the production and sale of goods and/or services and in which government on other government controlled agencies have an ownership stake that is sufficient to ensure their control over the enterprises regardless of how active that control is exercised.
The Public Enterprises approach to resource mobilization and allocation for national socio-economic development is in consonance with
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the Keynesian approach to economic approach reflected the problem of market failures and the growing demand for citizenship rights such as a decent living standard, adequate education and health care, and minimal social equality, he further stated that whereas in developing countries, this approach became the pivotal policy option to ensure national development, wealth redistribution, employment generation, and economic self-reliance. In most developing countries like Nigeria, where ideology has not played any significant role in the shaping of their economic activities, the reason for the spread of public enterprises can be found mainly in the realm of political, social and economic considerations, but not ideological. Thinking in the direction, S.A. Sosna in Ozor (2004:110) asserted that: The emergence of a fairly extensive public sector is a major regularity in the development of the young states. Although, the scope and pace of the change differ form country to country, the public sector and related problems are central to their the ir economic polices. To a certain eextent xtent this is independent of what social forces that hold the reins of government; the reason being objective which are with not rooted in political and ideological motive alonefactors, but are associated the processes occurring in the multi-structural economic patterns of these countries and with their economic and social situations.
Implicit in the above citations of eminent scholars in the subject matter, is the fact that public enterprises are established for various reasons which include not only ideological but also objective factors such as, the provision of essentials services. Ozor (2004:111) also maintained tthat hat public
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enterprises are established to provide certain essential services and public wants which if left in the private hands these services will be beyond the reach of the average man in the society. Even when the exclusion principle can apply in the satisfaction of these services, they are considered basic necessities of these services; they are considered basic necessities or merit goods. Government must, therefore, step into provide such services and subsidies their consumption; otherwise the discretionary pricing policies of private monopolies will render their consumption too exorbitant for the average consumer/citizen. This is why government establishes social services like NTA, Awka in order to achieve its education and information objective. This explains the existence of state governments. Some public enterprises are established for the purpose of mineral exploration and exploitation. The rationale is that the benefits of such minerals should accrue to their owners. i.e. The public; in the producing country. This is the reason for the establishment of the Nigeria Coal Corporation, Nigerian National petroleum Corporation (NNPC) etc. Indeed a prime reason for enterprises to undertake such major functions as transportation, communication and manufacturing.
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Public enterprises may also arise as a result of governments desire to create an integrated national economy and to stimulate balanced regional development throughout the country. The establishment in Nigeria, of steel, rolling mills at Oshogbo, Jos, Katsina, and Ajaokuta are clear examples. Also, at times, public enterprises are set up by government in response to the complaints of its citizens regarding poor services, extortionate prices, uneven performance, and discrimination in private service delivery by private concerns. For example, the establishment of state transports companies by various state governments as well as the incorporation of the national freight and cargo handling company about the high fare charged by private transporters. In order, orde r, therefore to effect a fair distribution of ser service vice and national resource and thereby achieve economic integration, various governments in the federation had to address and redress some of these complaints. Another reason for the blossoming of public enterprises is strategic. In most countries, national security has constrained the government to assume direct responsibility for certain activities such as the production of arms and ammunition including transport and fighter vehicles, military air fields and defense installations. For one thing, investments in them are quite exorbitant and sometimes prohibitive. For another, the security of the nation may be at
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stake if private investors handle and thus become acquainted with information regarding vital defense equipment and strategic military locations and installations etc. This is the rationale for the establishment of the defense industries Corporation (D.I.C) of Nigeria and the Government of the United States of America’s Intervention in providing some military establishments in America. 1.2 Statement of the Problem
Public enterprises are expected to have their hallmark and watchword as efficiency and effectiveness. This is predicated on the rational behind their establishment by both the state and federal government, but unfortunately the reverse has been the case most contemporary public enterprises are associated with inefficiency and ineffectiveness, which have led to liquidation of some enterprises like the Nkalagu Cement Company, This is reason Adeyemo (2005:223) stated that “inspite of the impetus given to public enterprises especially in Nigeria criticisms are leveled against them. He further stated that their problems are so enormous that even left the Nigerian public in a state of great disillusionment. These criticisms vary from lack of profitability and reliance on large government subsidies. Also Ogundipe (1986:7) once argued that between 1975 and 1985,
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government capital investments in public enterprises totaled about 23 billion Naira, in addition to equity investments government gave subsidies of 11.5 billion to various state enterprises. All these expenditures contributed in no small measure to increase government expenditures and deficits. Similarly, public enterprises suffer from gross mismanagement and consequently resulted to inefficiency in the use of productive capital, corruption and nepotism, which in turn weaken the ability of government to carry out its functions efficiently. NTA, Awka is not excluded from this problem. Still S till on the pro problems blems assoc associated iated with public eenterprises nterprises in Nigeria. Obadan (2000:8) argue that, “in country after country, unbridled state expansion has led to the following. i.
Economic inefficiency in the production of goods and services by inadequate and costly delays in delivery of the goods produced.
ii. Ineffectiveness in the provision of goods and services such as failure to meet intended objectives, diversion of benefits to elite groups etc. iii. Rapid expansion of the bureaucracy severally straining the public budget with w ith huge deficits o off pub public lic enterprises becoming massive dra drain in on government renounces inefficiency in government etc. iv. Poor financial performance of Public Enterprises reflecting a history of huge financial losses, overstaffing, and burden of excessive debts. Also
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Ezeani (2006:223) opined that “most public enterprises operate at a loss, and therefore, constitute a massive drain on government resources through transfers and subsidies”. Obadan (2000:10) further maintains that: In Africa, Africa, the poor performance of Public Enterprises attracted a great deal of criticisms, particularly, in the 1980s as the macro-economic policy environment, arising from the impact of the global economic crisis became less accommodation to the resulting inefficiency in resource allocation.
Generally, speaking the performance of these enterprises has been disappointing perhaps, these form the reason government embarked on restructuring and strengthening of public enterprises in the country via privatization and commercialization the purpose of which is to make them more viable result oriented and formidable. This is the reason Rondinelli and Lacono (1996:247) viewed that “Latin America countries such as Chile and Argentina had transferred large-state controlled telecommunication railways, power and energy, energ y, airline, mining and oil o il and petroleum industries to pr private ivate ownership or management during the 1970s and 1980s.” Also Ostrum and Ostrum (1992:309) argued that in terms of improving state-owned enterprises performance. Market forces are only half the equation. After all, market are unforgiving. Even when carefully structured, they produce inequitable outcomes.
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Quite a number of public sector enterprises are operated without respect to financial cost or returns. Not all such investment is expected to yield immediate financial return as some of the benefits are social rather than private in character that is, they accrue to particular or denominated individuals. Okigbo (1998:16) suggested that the production method must be efficient and that the price change should at least cover the cost of operations, therefore commercialization which differ from privatization is one of the policy thrust of the reform of state-owned enterprises. Also Kuye (1990:7) once asserted “countries such as United Kingdom, France, Canada, Turkey, Nigeria etc. which adopted mixed economy, the government of these countries have now accepted the obvious truth that if all, or at least most of the public enterprises were turned over to the private sector they would be better managed and their economy would fair much better in terms of the set out goals. In Africa, the poor performance of Public Enterprises attracted a great deal of criticism, particularly in the 1980s as the macro economic policy environment arising from the impacts of the global economic crisis became less accommodating to the resulting inefficiency in resources allocation.
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Also Ukwu (1985:80) he stated that “structure and management problems real enough and should be addressed directly. According to Ozor (2004:155) opined that “the performance of public enterprises in Nigeria is nothing to write home about”, he also stated that public enterprises in Nigeria have failed to per perfume fume the initial ro role le for which w hich they were established striking at this Augustine Otiji, in Ozor,(2004:156) maintained that “the bane of the Nigerian Public enterprises has been that of to underlined roles”, it is confusing to play a welfare role and at the same time run a profitable venture the image of the public enterprises is so bad that has come to symbolize inefficiency, red tapism, lack of initiative and corruption, this may not be totally justified but it reflects apparent dissatisfaction with public establishments. Implicit in Otiji’s assertion is the fact that public enterprises have failed to live up to expectations and have therefore become unviable. Specifically looking at NTA Awka which is not excluded from the above problem, it can perhaps be posited that management problems of the company are multi-faceted such as operational inefficiency, poor employees relation, over staffing lack of coordination at staff level, poor motivation, conflicting objective and functional connection syndrome vis-avis under utilization of staff.
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However, against this backdrop, the primary questions that require investigations and which these studies intend to address are: i.
What is management and public enterprise?
ii.
What are the management problems of NTA, Awka?
iii.
What are the effects of management problems on the operational efficiency of NTA, Awka and the measures for overcoming these problems?
1.3 Objective of the Study
In a nutshell, the objectives of this study are categorized into two: the general and specific objectives. The general objective of this study is to explain the management of public enterprise in Nigeria, especially NTA, Awka. On the other hand, the specific objectives are stipulated as follows. 1. To explain the meaning of management and public enterprises 2. To find out the management problems of NTA, Awka. 3. To find out the effects of management problems on the operational efficiency of NTA, Awka and as well suggest possible panacea to these problems.
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1.4 Significance of the Study
Theoretically, this research shall be a relevant material and a contribution to scholarship, constituting a reference material on the studies of management of public enterprises in Nigeria and related subject matter for further research. It will also expose the m management anagement of public enterprises in Nigeria including NTA, Awka to the modern styles of management and leadership, as well as other strategies for improving public sector performance such as Total quality management, Capacity Building, Decentralization,
Ethics,
Accountability
and
Information
and
Communication Technologies. Empirically, at the end of this study, it is hoped that it will create awareness and assistance on the need to improve the management of public enterprises in Nigeria especially the management staffs of NTA, Awka. In addition to this, the study provides baseline data on the numerous management problems undermining operational efficiency of NTA, Awka to the management of the enterprise, particularly the policy makers as making such information available will help to forestall future of the organization. Apart form contributing to empirical research and increasing the quality and quantity of information available in the field of management, most often; poor performances or services of some of these enterprises have
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attracted criticisms without any devoted attempt to identifying causative factors of these anomalies. It is on this premise that an in-depth research becomes imperative to pin-point these variables and at the same time proffers solution. This study at the end will enlighten the management of the company on the implication of employing mediocre instead of competent and skilled labour in the name of functional connection and ethnic consideration. Finally, this study exposes us to the effects of management problems of NTA, Awka on the operational efficiency and thus, it serves as correctional measure to the company and to other related enterprises that have similar problems, which erode and impair the productivity or rather performance of the company. 1.5 Scope and Limitations of the Study
This study is intended to examine the management of public enterprise in Nigeria with a particular emphasis on NTA, Awka. During the course of this study, the researcher was confronted with numerous constraints that pose difficulties to proper understanding of the subject matter.
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The first constraint relates to the dearth of adequate literature on management of public enterprises in Nigeria. It was rather difficult and in most cases impossible to get hold of certain documents and records that would have been vital to this study, most especially as it concerns endogenous problems that tend to displace the objective of the company from time to time. Also bureaucratic red-tapes and the hostility of the top level management could not help issues. There was misconception about this study to the extent the researcher was seen and treated as intruder. The human resources head refused answering most questions directed to him by the researcher. Finally, the location of the company posed a little impediment because the t he researcher wa wass obliged to permeate beyond the boundary of his school to his state in search of materials and information.
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CHAPTER TWO LITERATURE REVIEW AND RESEARCH METHODOLOGY 2.1 LITERATURE REVIEW
Management of public enterprises and its problems can be seen as those
dysfunctional
factors
affecting
the
operation
of
government
established business. Generally, it has been agreed that these enterprises have performed below the expectation of people. This situation however has attracted the attention of some scholars and authors, who have made various contributions on the subject matters. Therefore, in this section, I shall examine the major contributions of some scholars with a particular reference to the concept of management, public enterprises and factors affecting management of public enterprises in Nigeria.
2.1.1 The Concept of Management
The discourse of the subject matter cannot be complete without touching on the concept of management. The act of management is not a new creation. From the recorded events of man in the Garden of Eden through the successful organization of the extended family relations to the period where organizations such as the church, army, school and hospital were established, there has always been traces on management practices
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exhibited, for example the ancient history of Egypt is replete with construction of great palaces and pyramids; there are the ancient but great walls of China; there is the Hanging Garden of Babylon; we know also of the military prowess and accomplishments of Romans in the battle fields. All these speaks of management practices in the areas of planning, organizing, directing and controlling. Perhaps what may be new about management is the search for a rational and systematic ways of management. Management according to Amobi and Nnabuife (1999:2) “is the role of certain group of officers occupying top and privileged positions in the organization. These people formulate the overall policies of the organization giving guide and setting limits as it were on how the organizations resources are to be utilized.” According to Lawal (1993:2) stated that “the word management was derived from the Italian “managgiare”, meaning to train horse. It was originally used to indicate the process of managing, training or directing sporting and house keeping activities.” Later it was extended to the operation of government and businesses. Also according to Heinz, Mark and Harold (2008:4) opined “that management is the process of designing and maintaining an environment in which individuals, working together in
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groups efficiently accomplish selected aims.” This basic needs according to them is expanded: 1. As managers, peoples carry out the managerial functions of planning, organizing, staffing, leading, and controlling. 2. Management applies to any kind of organization 3. It applies to managers at all organizational levels 4. The aim of all managers is the same: to create a surplus 5. Managing is concerned with productivity, which implies effectiveness and efficiency. Also the word management is used in four ways, namely, as a resources as a body of knowledge, as a process of organizational section and as economic at of allocation of very scarce resources. According to Cole (2004:9) opined that “the system approach to organizations is based on the three major elements of inputs, conversion, and output. The process of management is concerned with all three of these elements, and especially with the conversion processes of organization”. Also according to Griffin (1997) in Onah (2003) unequivocally posited that “management is perhaps best understood from a resource-based perspective, human, financial, physical and information resources. Thus, management to him is a set of activities involving planning; organizing,
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coordinating and controlling directed at an organization resources with the aim of achieving organizational goals in an effective and efficient manner”. Most acceptable by Ejiofor (1984:21) “management is the art and science of directing and coordinating activities of people to achieve one’s personal goals in the context of the goals of one’s organization”. This is in recognition that individual work in organization not necessarily for the goal of the organization but for their own goals. This form of deviation stagnates the success of organization. All types of organization, government, business, industries, cooperatives whether profit or non-profit making require good management to ensure viability and perfection via efficient and effective goal attainment. However, to achieve the organizational goals the manager has to plan, map out strategies, find suitable people and the material to do the job, assign different roles to different employees and ensuring that jobs are carried out according to mission statement of organization. Also management has paradigmatic perspective. First, it is seen as a group of persons, referring to those in the helm of affairs in any organization. Second, it refers to a process of activity of managing, relating to integrating resources of organization, channeled towards making organizations prolific. From the various views and contributors of writers and authors, management can be summarized to be an activity as well as
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process, which involves the coordination and controlling of group activities with the purpose of maximizing organizational goals effectively and efficiently. This no doubt suffices to say that achievement of organizational goals depends heavily to the extent manager adhere to the fundamental principles of management, which are: planning, organizing, coordinating, controlling, directing and supervising. Also Fayol in Ogunbameru (2004:44) stipulated the fourteen principles of management as follows: 1. Division of work: Fayol believed division of labour to be efficient but
subject to certain limits beyond which it would bring diminishing returns. 2. Authority: Fayol also believed that official authority should be
legitimized by personal authority and aligned with responsibility. 3. Discipline: This refers primarily to the honouring of agreements and
rules. 4. Utility of command: Employees should not be subject to orders from
two different and potentially contradictory sources. 5. Unity of direction: Fayol consistently uses the biological analogy.
Seeing the organization as an organism which should not have two heeds.
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6. Subordination of individual interest: Fayol saw it as essential that
the interests of one group should not be advanced at the expense of the others or of the organization as a whole. 7. Remuneration: Fayol argued that remuneration should be fair and
should be enough to motivate but should not be solving conflict between capital and labour, and believed instead in the need for judgment and experience in finding the right rate of pay. 8. Centralization: Although Fayol appears to see top management in
the role of the brain bra in of the organization, he states clearly that 9.
Scalar chain: All personnel are to be arranged in a clear hierarchical
structure. Fayol was aware of problems of communication across the hierarchy and therefore advocate the use of lateral “bridges” where appropriate, although he appears to have preferred this to be agreed
formally. 10. Order: Everyone and everything must have its appointed place,
although, this may be seen as an ideal rather than an injunction to organize every last detail. 11. Equity: All levels should treat their staff equitably. Here Fayol is
clearly thinking in terms of employee’s perceptions rather than any hard and fast status.
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12. Stability of tenure of personnel: This refers to the high cost of
developing managers who know the organization and those in it. Fayol goes so far as to state that mediocre managers who stay are better than outstanding managers who leave. 13. Initiative: Allowing initiative is seen as means of motivating staff.
Managers are expected to allow this at the expense of their own “vanity”. 14. Esprit de Corps: Fayol was an advocates of what might be termed an
integrated culture. Interestingly, for ones often seen as the epitome of bureaucratic management, Fayo Fayoll argued against the culture of memowriting (as opposed to verbal communication) which he saw as necessarily divisive. These principles are what Fayol believed that if applied in any enterprise both public or private, that efficiency and effectiveness will be enhanced. Looking at most public enterprises in Nigeria, including NTA, Awka, it is obvious that these principles according to Fayol are lacking. The understanding of management could be seen from other perspective, according to Bruce and Peter (2003:1) (200 3:1) opined “that the nature of management may be conceptualized from a perspective of system theory as the process by which an organization generates a global representation of its
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own processes”. Also according to them management depends upon modeling an organization, which means that modeling allow management to perform its distinctive information processing activities such as monitoring, evaluation, prediction and control. The purpose to which these management is a product of the interaction between a management system and its environment. The question I am asking is how can public enterprises in Nigeria be managed using system approach to management? This question can not be answered properly without understanding organization as a social system. Olum (2004:1) sees management as one of most important human activities, from the time human beings began forming social organization to accomplish aims and objectives they could not accomplish as individual; he stated further that managing has been essential to ensure the coordination of individual efforts. As society continuously relied on group effort, and as many organized group have become large, the task of managers has been increasing in importance and complexity. Henceforth, managerial theory has become crucial in the way managers manage complex organizations. The central thesis of Olum’s view is that although some managers in different parts of the world could have achieved managerial success without having basic theoretical knowledge in management, it has to be unequivocally
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emphasized that those managers who have mixed management theory in their day-to-day practice, have had better chances of managing their organizations more efficiently and effectively to achieve both individual and organizational objectives, which is one of the major aims of this research project as it concerns NTA, Awka as a public enterprises in study. Therefore,
managers
of
contemporary
organizations
ought
to
appreciate the important role they play in their respective organizations if they are to achieve set goals. Secondly, there is need to promote excellence among all persons in organizations, especially among managers themselves. Also
seeing
management
from
performance
perspective,
Economic
Commission for Africa (Development Policy Management Division, DPMD) (2004:12) maintained “that performance management is one of the various New Public Management (NPM)-inspired measures to address some of the accountability problems in pursuit of the goal of performance improvement, performance management advocates for the “empowerment” of managers, i.e. vesting the public manager”. Also seeing management from Decentralized Perspective, the ECA (2004:15) still maintained “that Decentralizing management is a strand of NPM derived from “managerialism” which is part of an effort to “debureaucratize” and “delayer” the hierarchies within the public service,
25
the key concern is to give managers the freedom to manage their units in order to achieve the most efficient output. The above explanation is to understand management from decentralized and public management perspective, which shows that if government should decentralize function and authority and also reduce interference in the activities of public enterprises, especially in Nigeria, that efficiency and effectiveness will improve. This lack of decentralization and government interference is one of the causes of failure of public enterprises in Nigeria including NTA, Awka. Still on public management, World Bank (2003) put it thus: the final dimension of management decentralization is the adoption of new forms of corporate governance and the board of directors model, which aims to reduce the power of elected representative and minimize the influence of labour union management”
Understanding the concept of management is not complete without touching on scientific perspective of management. According to Taylor (1911) in Ogumbamerm (2004:6 2) in his book “the principles of scientific management” published in 1911 sought to establish a scientific process to address productivity problems by organization. He criticized the arbitrary approach of managers to their responsibilities and the workers irresponsible disposition to work maintaining that such actions accounts for poor productivity performance by organization. For tthis his reason, Taylor urged the
26
need for managers and workers to be guided by a system of established rules and standards. He proposed four principles of management in the hope of making management a science resting on well recognized, clearly defined and fixed principles instead of depending on more or less lazy ideas. These principles include: 1. The development of a true science of managing complete with clearly stated laws, rules and principles to replace old rule-of-thumb method. 2. Scientific selection, training and development of workers (whereas in the past workers were randomly chosen and often untrained). 3. Enthusiastic cooperation with workers to ensure that all work performed is done in accordance with scientific principles; and 4. Equal division of tasks and responsibilities between the worker and management. Fredrick Taylor by these principles envisioned a “mental revolution” in which the concerns of both management and workers would be based on a “mutuality of interest”. He sees management interest and those of workers as mutual and thus the need for better understanding and cooperation between them. Management for example press for increased productivity and the workers for enhanced remuneration. Understanding it is through returns from productivity that the enterprise survive and groves thereby assuring
27
improvement on workers remuneration which factor also influences their motivation on the job. In his presentation before a special United States House Committee Taylor defended his ideas as: not a piecework system, not a bonus system, not time-study. The great revolution that takes place in the mental attitude of the two parties under scientific management is that both sides take their eyes off the division of the surplus as the all-important matter, and together turn their attention toward increasing the size of the surplus until this surplus becomes so large that there is ample room for a large increase in profit for the manufacturer.
His overall goal was industrial efficiency in terms of high productivity, lower cost as well as higher pay for workers for increased productivity. Looking at all these veins of management, the question one supposed to be asking is, managers in our public enterprises are they really practicing management or not? Still on management, Koontz and Weihrich (1990:4) stated that “management is the process of designing and maintaining an environment in which individuals, working in groups, efficiently accomplish selected aims.” Stoner et al (2003:31) also opined that “principles in management are fundamental truths, explaining relationship between two or more sets of variables usually an independent variable and a dependent variable, he further maintained that principles may be descriptive or predictive, and not
28
prescriptive, that is they describe how one variable relates to another, what will happen when these variables interact. However, the concept of management is still not complete without touching on Total Quality perspective. According to ECA (2004:39) opined that “Total Quality management (TQM) is a management technique that emphasizes high quality service (performance-oriented civil service) and customer satisfaction (Customer-Driven Government)”. TQM entails the constant improvement of product or service quality and reliability, combined with shorter and more reliable response times through the production and sales chain or service-provision process. It also involve increasing flexibility of response to customer requirements and a constant concern about efficiency through waste elimination, the removal of duplication of efforts, and curtailing overlaps of roles and responsibilities. Management commitment is the sine-qua-non for a successful TQM strategy. TQM will not be successful without linc management ownership, active involvement and leadership by example. The commitment of ministers and senior officials has been identified as a major influence on implementing successful public service reforms. Such commitment must involve a willingness to indicate a clear preference for a better future and
29
also entail the willingness to take responsibility, and to accept praise and blame. What it means is that, the public enterprises in Nigeria lack Total Quality management since they are characterized by inefficiency and ineffectiveness this is according to Ezeani (2006:212). Let look at the human resources or personnel aspect of management. There is no doubt that the ability of any organization or society to achieve its goals depends to a large extent on the caliber, organization and motivation of its human resources. This point was succinctly captured Similarly, Harbison (1974:52-77) opined that “human resources and not any other constitute the ultimate basis for the wealth of nations. And according to Drucker (1978:273) “good organizational structure does not by itself guarantee good performance. Human resources is as a fact of life of the existence, survival and development of an organization as food is to man”. These and such other statements by human resources management experts and practitioners alike are pointers to the importance and critical role of the human element in organization. Indeed, the human resource is a critical factor in the attainment of the goals of any organization. However, the ability of the human resources to contribute to the attainment of the goals
30
of an organization such as the public enterprises like NTA, Awka depends to a great extent on how well they are managed. The human resources of an organization comprise of men and women, young and old who engage in the production of goods and services and who are the greatest assets of the organization. According to Ndiomu (1992:34) opined that “the personnel of an organization have to be properly managed for them, to be able to make maximum contribution to the organization. What then is human resources managements? There are many definitions of human resources management but, a widely accepted definition is the one provided by the institute of personnel management: manage ment: personnel management is that part of o f management concerned with people at work and with their relationships within an enterprise. Its aim is to bring together and develop into an effective organization the men and women who make up an enterprise and having regard for the well-being of the individual and the working groups, to enable them to make their best contributions to its success.
It is important to mention that in this section, human resources management is used interchangeably with personnel management. Human resources management is therefore an activity aimed at ensuring efficient use of human resources of an organization to achieve optimum productivity for the organization and at the same time enable the employee to gain optimum psychological and material benefit from his or her work. It is however, important to state that although human resources management is a
31
responsibility of all those who manage people, it is a function of the specialist and part of the general managerial process. Croft (1996:81) also stated that “although managers must deal with people, the organization can also provide a number of specialists who can easer the load of the line managers and provide a specialist advisory service.” Croft also has identified a number of reasons why human resources management has become increasingly very important: i.
Human resources are becoming increasingly expensive to employ. It is therefore essential that they are managed effectively.
ii. Social science research has emphasized the importance of increasing productivity and the benefits of having a satisfied workforce. iii. Legislation
and
the
development
of
industrial
relations
has
encouraged the emergence of specialists able to interpret and apply their skills to this area. Human resources management at the public enterprise in Nigeria, like NTA Awka aims at obtaining for the organization the greatest possible benefits from the employees and at the same time enable the employees gain optimum psychological and material benefit from his work. Ezeani (2002:4) stated that “to achieve these aims or objectives, the director of personnel management must be able to:
32
i.
Plan for human resources it requires
ii. Recruit/select the critical skills and abilities it requires iii. Develop its human resources iv. Utilize its human resources v. Motivate them adequately vi. Provide inspiring leadership; and vii. Ensure the existence of cordial relationship between management and employees. As I noted earlier, the human resource is the most pivotal of all the resources for organizational productivity. To this extent, this ‘most critical resource’ has to be planned for, procured, nurtured and sustained for overall organizational efficiency. Thus, all the activities directly or indirectly related to the planning procurement and nurturing of the human side of any enterprise are ultimately “personnel functions”. The Nigerian public service is not left out in this search, the public service is the means of carrying out the activities of government, it is the life wire of the nation. Whatever the policies or resource of a state, there must be a reliable and proper administrative apparatus to put into effect the policies and translate the resources into concrete goods and services for the benefit of the state and the people, for this the political system contrives the public
33
service. The activities of the employees who put these policies into effect must be coordinated and directed. This is the work of administrators and managers in public organization. They form the leadership in the public service for effective management of the public service, the leadership should ensure that the policy objective should be successfully and achieved with the least cost, if the public service lacks the right caliber of leadership, this task will not only be poorly performed but the organization itself will be in shambles. Hence the organizational ineffectiveness mostly associated with the public service in Nigeria. Theories of Leadership
Considerable volume of theories and research has been carried out on leadership because of its relevance to group action. It is, therefore, no surprise that when in 1974 Stogdul completed his research on leadership, he analyzed over 3000 books and articles in the field. Though legion of leadership theories have been propounded, we are going to discuss briefly those considered popular are relevant to us. a. Trait theories of leadership
The trait theory of leadership argues that there are certain traits which effective leaders should possess. According to Stogidill (1974) in Ogunabameru (2004:236) he found that even among the traits most
34
commonly
cited
in
empirical
studies,
intelligence,
achievement,
dependability, and socio-economic status. He further argued that this might be due d ue to the fact that so someone meone with one o orr more of tthese hese tra traits its might be so different from others in the group that he would be viewed more as a deviant then a leader. The facelessness trait studies and many contemporary studies can be traced to several methodological and measurement problems, first, measurement of personality traits are still inexact science. There is a considerable amount of disagreement regarding even the most familiar and most frequently tested traits. Intelligence, for example is measured in many different ways while there is generally some correlation in intelligence test, it is common for a person to score s core high in one test ad relatively low in another. Second, Seco nd, there is a failure to distinguish between effective and ineffective leadership. One might have a great deal of leadership capacity and have little ability to lead others in productive activity. Also according to Nwankwo (2003:7) stated that “characteristic like decisiveness, charisma, intelligence, enthusiasm, strength, bravery, integrity, self-confidence etc have been suggested as relevant traits which leaders should posses”. Mahatma Ghandi, Martin Luther King (Jr) Adoff Hitter etc. were all leaders, but for sure, they were
35
individuals with utterly different characteristics. Herein lies the futility of the trait theory. If this theory were to be valid then all leaders should possess specific characteristics that could be identified in each. eac h. b. Behavioural theory
If the trait theory had been successful, it could have provided the basis for selecting effective leaders for various organizations, but its futility led to the emphasis on the behavioural theory. The behavioural theory argues that effective leaders have distinct ways of behaving. It emphasizes the training of the leaders. This implies that leadership behavior could taught and learned. Experiences have however, shown that the behavior of each leader is determined by prevailing situational variables. This implies that a leader can act in divergent ways at different situations. The demise of the behavioural theories is its inability to clarify such situational factors. c. The situational approach to leadership theory
This theory is in some academic quarters, called the “zeigeist” theory; “zeitgeist” is a German word meaning spirit of the times. According to Igboeli (1990:158) “this theory of leadership maintains that a leader is a product of time or o r situation. This implies that one will be called, a leader if he is able to meet up with the demands of a situation or time.
36
d. The path-goal theory
The path-goal theory was developed by Robert House of the University of Toronto. According to this theory, the subordinates accept a leader’s behavior once they view it as a source of their satisfaction, either immediately or in the future. It could also be stated, that a leader, becomes acceptable to his sub-ordinate once his behavior appears motivational to them. According to Robbins (1988:390) stated that “the path-goal model proposes that leader behavior depends or the degree of task structure in the job, the subordinate’s perception of his or her own ability, and the subordinate locus of control.” This theory, therefore, identifies two basic dimensions of leadership as: i. Initiating structure; and ii. Consideration In other words, the leadership should be motivational when the task structure correlates effective performance with the satisfaction of the subordinate needs, as well as provide the requisite training, guidance, support and reward that would enhance the effective performance. e. The contingency model
This model was first developed by Fieldler (1967) according to this model, effective group performance is dependent upon the compatibility
37
between the style of the leader is controlled and influenced by the work situation with his least-preferred co-worker (LPC) questionnaire, he purportedly measured if a person is task-or task-o r relationship o oriented. riented. He further isolated three situations criteria-leader-member relations, task structure, and position power. He believes that these criteria could be manipulated to create the proper match with the behavioural situation of the leader. This is according to Robbins (1988:390). The managerial grid
This theory was developed by Blake and Mouton (1984) depicting two-dimensional framework of leadership styles. One dimension depicts the concern of the leader for people, while the other dimension depicts the concern of the leader for production. The significance of the managerial grid is that it enable the leader to express his style of leadership with the aim of attaining 9.9 team management style of leadership. Styles of Leadership
It is administratively difficult to isolate theories of leadership from the styles of leadership or behavior of leaders. According to Koontz (1980:670) stated that “study of leadership is somewhat incomplete, if styles of leadership is omitted. Since the ability to lead and willingness to follow are based on leadership styles.
38
Leadership styles refers to different philosophies adopted by leaders in the piloting of the affairs or activities of an organization. Eilon (1992:134) maintains that “these philosophies often find expression in the way the enterprise is organized and in the design of lines of demarcation of authority, accountability and responsibility. There could be numerous styles of leadership but for academic convenience, most scholars in the study of corporate management have compressed them, and categorized them into three major kinds namely: laissez-faire, autocratic/despotic and democratic styles of leadership. i.
Laissez-faire style of leadership: The assumption here is that there is
no need to keep people under control, dictate for them, or direct them towards a given action. Rather, the leader should, given the subordinate free hand to discharge their functions as they deem fit without any sort of control as this style of leadership presupposes, there will be no discipline and where there is lack of caution, people will not know their limits, and anarchy soon sets in. ii. Democratic style of leadership: This style of leadership implies the participation of both the leader and his subordinate which could be beneficial to the leader in his formulation of intelligent corporate
39
policies, instead of assuming that the leader knows all, it rather accepts that two heads are better than one. o ne. Consequently, democratic style of leadership maintains that the best decision emerges when many heads are participating. iii. Autocratic or despotic style of leadership: This style of leadership assumes that the consummation of intelligence needed for the formulation of corporate policies lies in the leader. Consequently, the leader does the thinking and takes all decisions while the subordinate are duty bound to concede and implement his politics without any objection. This style of leadership relies on intimidation and coercion to win compliance. The major de merit of this leadership behavior according to Wilkinson (1994:260) is that “it may waste workers creativity and expertise, and it will fail to motivate and make workers feel committed to their tasks.” Public
enterprises
cannot
be
effective
and
efficient
without
understanding its management from strategic and policy management perspective. Organizational strategic management
Organizational strategic management (OSM) integrates all major activities and functions of an organization and directs them towards
40
advancing an organization’s strategic agenda. It integrates all other management processes to provide a systematic coherent and effective approach in establishing, attaining, monitoring, and upgrading an agency’s strategic objective. Poister and Streib (1999:41) stated that “an effective strategic management capability is essential for maintaining or strengthening the links between the organization, external stakeholders, and managing for result.” African public service agencies need to formulate their strategic plans and use the plans as a basis for effective public service management. Policy management
Policy management is the process of policy initiation, analysis, formulation, approval, implementation, and monitoring and evaluation evaluation (M α E) in the public sector. Policy analysis skills have been identified as a key weakness within the civil service in many developing countries, particularly Africa. In Australia, New Zealand, the United Kingdom, and Zambia, this has been addressed by strengthening the office of the president prime minister and cabinet through the creation of policy units. In Ghana and Malaysis, Inter-ministerial Committees have been set up for special policy issues, supported by national forum involving the private sector. The new culture of policy management emphasizes participation, accountability and transparency. It hinges upon the involvement of the
41
private sector and civil society in policy formulation, monitoring and evaluation, and on the recognition that at stakeholders in the policy development process must be involved in order to enhance support and ease implementation.
2.1.2 Public enterprise
There is no generally accepted agreement among scholars with regards to the definition of public enterprise. This lack of universal agreement on definition among scholars emanated. From the variation in the nature of public enterprise. According to Amara (2009:51) stated that “public enterprises are essentially the public organization that have emerged as a result of government acting in the capacity of an entrepreneur” he further stated that they include the parastatals, state- owed companies and statutory corporations. Also Ezeani (2006:213) opined that “public enterprises are defined here as legally constituted bodies operating services of an economic or social character or both on behalf of the government” he also further stated that through largely autonomous in their management then are subject to different types of government control and are also characterized by different degrees of public financed support. Ozor (2004:108) stated that “the term public enterprise denotes an organization
42
operating or supposed to be operating on commercial principle wholly or partly owned and effectively controlled by public authority. This definition emphasizes the type of public enterprise that are commercially oriented and therefore less encompassing. Public Enterprise combines the features of public administration with the key attributes of private enterprise. The creation of these enterprise results from the desire to infuse more flexibility and efficiency in the organization of some governmental activities. It must be emphasized here that while the civil service exists by the some law (authority) will government pubic enterprise are created by separate laws. Therefore, subsidiary arm of government, like local government, come under public enterprise classification. This is why laieye (2002:28) stated that “a public enterprise is an organization that is set up as a corporate body and as part of the governmental apparatus for and entrepreneurial or entrepreneurial like objective”. Also SoSna (1983:27) opined that “there are many reasons why in developed capitalist countries there is no single standard definition of public enterprise, he also stated that public enterprises were established at different periods and each epoch naturally brought forth the types of public enterprises most clearly matching its own conditions.
43
It is therefore believed that the variation in definition are informed by the ideological, values interest, disposition and circumstances that brought public enterprise into existence whatever the controversy and the lack of uniformity of some scholars of public enterprises. For instance Efange (1987:5) defined public enterprise or parastatal as institution or organization, which are owned by the state or in which the state holds a majority interest, whose activities are of a business in nature and which provide service or produce goods and have their own distinct management. Obadan and Ayodele (1998:1) have seen public enterprise as organization whose primary function is the production and sales of goods and /or services and in which government or other government controlled agencies have no ownership stake that is sufficient to ensure their control over the enterprises regardless of how actively that control is exercised. Also Cheng (2006:145) stated the term “public enterprise” is used for any enterprise that is solely owned by the government or other public enterprises, or is jointly owned by the government or other public enterprises and private individuals, provided the public section hold more then 50 pe percent rcent o off the cap capital/ ital/ shares. Also Cheng (2006:168) in his own view stated that “legally public enterprise is treated as an important part of the government structure, with annual budgets, critical investment plans, high level personnel nomination personnel management,
44
financial auditing and even-day to day matters all under the strict regulation and supervision of relevant government organs and processes”. In a United Nations (1974:2) publication public enterprise are defined as those enterprise “in which the government has majority interest of ownership and /or management”. Another United Nations (1968:1) Source defines public enterprise as “industrial agriculture and commercial concerns which are owned and controlled by central government (in a Unitary state) or the control government and regional government (in a federation) Adamolekun (2002:28) identified some of the main feature and implications of public enterprise. i.
A Public Enterprises as an organization implies that it is an entity with explicit or implicit objective. Men money and materials are supposed to be utilized in the pursuant of these objectives. In addition as an organization a public enterprises would be expected to have its own internal power or authority and its own method of operation.
ii.
A critical dimension of government involvement in a public enterprises has to do with its financial commitment the capital ownership does not have to be exclusively public the government may only control the majority of the shares, leaving other share holders to hold remaining shares.
45
iii.
As a corporate body a public enterprises has a legal personality separate from that of the government that establishes it. It can own property enter into contracts and sue and be sued. In recent developments across the SSA countries this feature is being stressed as a key element of a public enterprise. Consequently departmental organizations
or regimes in francophone parlance are being
surreptitiously accorded the corporate body status iv.
The entrepreneurial or entrepreneurial like objective connotes business orientation. However, this should not be equated with profit making. The experience in many countries indicates that the aim is to promote efficiency, cost consciousness, and cost-deduction
v.
The implication of the fact that a public enterprise is part of the government apparatus are numerous. Three of these implication should be highlighted, a public enterprises is by virtue of its intricate relationship with government an instrument of public policy its primary mission is in connection with governmental objectives and programs and is there fire naturally under governmental control second by its nature a public enterprises mostly utilizes or manages public resources especially public money. This means that attention
46
must be paid to mechanisms for enforcing accountability. Third the combination performance measurement instrument.
Justifications for public enterprises
According to Ezeani (2006:24) he stated some of the justification for public enterprises. Among which are the following: follow ing: 1. The paucity or in some case absence of indigenous private sector that can undertake to provide certain infrastructural facilities particularly in services requiring heavy financial investment e.g. railway, electricity ports and harbour, airways, etc under such circumstance direct government control may be required to ensure that prices are not set above the cost of providing such service 2. Establishment of public enterprise by the state enable it to pursue objective relating to social equity which the market would ignore notable among which is preventing the concentration of wealth or the means of production and exchange reason. Ozor (2004:111) stated that “public enterprises are certain essential services and public wants which. It left in the private hands, these service will be beyond the reach of the average main society. 3. Paucity and sometimes lack of private incentives to engage in promising economic eco nomic ventures due to factors such as uncertainty abo about ut
47
the size of local market unreliable sources of supply and the absence of technology and skulked labour. This is according to Obada (2000;6) 4. The need to ensure government control over strategies sector of the economy such as central banking broadcasting, iron and steel. International
air
transport
shipping
etc.
klintworth
(1995:90)
maintained that government was strongly committed to the public enterprise system as the best method of controlling any extreme inflation and of maintaining Taiwan’s political economic and social stability. 5. State control of the key profitable enterprises enable it to general overawes that will add to available national capital for financing development programs and projects 6. State ownership of some enterprise is seen as a means of employment creation in a situation where the private sector of the economy offers very united employment opportunities. This is why Wu (2004:148) stated that the government has determined to use its state owned enterprise as pioneers and innovator in establishing new generation high risk , high capital and high technology industries in order to remain competitive in world trade market
48
7. Public enterprise is seen as a veritable instrument of plan implementation especially, in a context where the private sector appears weak Classification of public enterprises
The share size and diversity of public enterprises have made its classification necessary in order to structure the discussion of the variety of organization in the sector. Adamolekun (198334) stated that classification of public enterprise have been made according to a variety of criteria and by different authorities the classification model according to Ozor (2004:131) is as follows STATUTORY –CORPORATIONS (a)
Public Utilities
National Electric Power Authority (NEPA) now (PHCN) (P HCN) Nigeria Coal Corporation Nigeria Ports Authority Nigeria National Petroleum Corporation (NNPC) Nigeria Railway Corporation Nigeria Airways Nigeria Telecommunication Limited (NITEL) Nigeria External Telecommunication (NET)
49
Nigeria Mining Corporation Nigeria Film Corporation Nigeria Cargo Handling Company etc (b)
Development and finance
Nigeria Industrial Development Bank (NIDB) Nigeria Insurance Corporation of Nigeria (NICON) Nigeria Agricultural and Commerce Bank (NACB) Federal Mortgage Bank Nigeria Agricultural Development Bank (NADB) Nigeria Bank for Commerce and Industry (NBCI) Export Credit Guarantee Corporation Lotteries, Pools, Betting, and Casino Commission Co mmission Afribank Plc Chases Merchant Bank (Nigeria) Limited Union Bank of NIGERIA Plc First Bank Nigeria Plc. United Bank for Africa (UBA)
50
(c) Welfare and Social Service Federal Radio Corporation of Nigeria (FRCN ) Nigeria Television Authority (NTA) Federal Housing Authority National Library Board Housing Management Board Housing Corporation Scholarship Board Tafawa Balewa Square etc
(d) Federal –Owned Enterprise Nigeria National Supping Line Limited Nigeria National Supply Company Limited National Root Crops Production Company Aba Textile Mills Ltd Nigeria Hotels Limited Federal Palace Hotel Durbar Hotel Limited Daily Times Newspapers New Nigeria Newspaper
51
National Freight Handling Company Nigeria National Fish Company Nigeria Produce Marketing Board, etc Nigeria Rumanian Wood Industry National Oil Nigeria Limited Agip (Nigeria) Limited Elf (Nigeria) Limited Shell Petroleum Development (Nigeria) Ltd State Government –Owned Enterprises in Nigeria
1. (Enugu and Anambra States) (a) Public Liabilities Enugu State Water Corporation Enugu State Transport Company Transport Company Of Anambra State Anambra State Water Corporation Anambra State Rural Electrification Board Enugu State Rural Electrification Board Anambra-Enugu State Steel Industry Emene etc
52
(b) Development and Finance Enugu State Insurance Company Anambra State Insurance Company Enugu State Lotteries, Pools Betting and Casino Commission Anambra State Lotteries, Pools Betting and Casino Commission
(c ) Welfare and Social Services Enugu State Broadcasting Service Anambra State Broadcasting Service Enugu State Library Board Anambra State Library Board Enugu State Housing Corporation etc
(d) State Government – Owned Enterprise Nike Lake Resort Hotel Daily Star Newspapers Nigeria Fracture and Construction Company Presidential Hotel Limited Ikenga Hotel Limited Ebony Paints Limited Vanguard Industries Limited
53
(e) Mixed- Economy Enterprises Co-operative and Commerce Bank Plc Orient Bank Plc etc Management of Public Enterprises
The principal actor in the management of public corporation are the board the general manager (managing director) and the secretary of the board. We shall discuss in detail the role of each of these actors The Board of Directors
According to Ozor (2004:142) stated that “At the apex of the organizational structure of public enterprises is the board of directors. The powers and duties of the director are usually stated in the document incorporating the enterprises known as the Article of incarnation. However, on the while the board of directors is usually the policy making body nit an executive one Admolekun (1983:38) identified two types of boards of public enterprises the policy board and the executive board. The policy board iiss composed mostly of persons from outside the organization with the Chief executive as the only internal board member. The policy board is more widespread then the executive board. It is important to state that the size and composition of the boards vary from one country to another as will as from
54
Public Enterprises to another. The size usually ranges from a minimum of fire to a maximum of about twenty –five members. In general the size of an enterprise, board depends on its scope and strategic importance within the economy.
The General Manager (or Managing Director)
The general manager supervise the actual operational functions of the public enterprises. As Olisah et al (1990:86) state. He is the person who comes into direct touch with all the corporation’s staff and he can take a wide range of decisions on his own initiative, in order to ensure that the corporation is functioning smoothly and effectively. The General manager is usually assisted by several deputies and assistant who are in charge of various division and section of the public enterprises. The Secretary of the Board
The secretary of the board records the board’s transactions and decisions. Usually the secretary is a non-managerial member of staff. In many public enterprises the secretary is a lawyer, who gives legal advice to the organization whenever necessary the secretary. Therefore help to clear any doubts or misinterpretation about the boundaries of authority and
55
function between all categories of official of the corporation “this is according to Olisa et al (1990:86) Organogram of a typical public enterprise in Nigeria BOARD OF DIRECTORS
GENERAL MANAGER
Administration
Personal
Accounts
Production
Department
Department
Department
Department Marketing/Commercial Department
General
Personnel
Accounts &
Production
Administrati
Department
Finance
Packaging Ware-
General, Sales
on Public
Recruitment
Revenue
Housing Units
Promotion of Sales
Relations
staff
Collection
Security
Disposition
Accounting
Transport
Development
Disbursement
(units)
and Advertisement
Reconciliation (units)
Control of public enterprise
Although public enterprises enjoys substantial autonomy and freedom in the management of their affairs, they are still subject to some control. The two main from of control according to Ezeani (2006:218) are ministerial control and parliamentary control.
56
Ministerial Control
According to Ezeani (2006:218) stated that “ministerial control of public enterprises take various forms: firstly although the public enterprises enjoy a lot of autonomy and freedom in their daily cooperation they are under a controlling ministry which supervises its policies and operations receives general public complaints about it and takes ultimate decision s on all important matters. Also Olisa et al (1990:89) stated that “a public enterprises must inform the ministry and obtain its permission before it makes any major change and embarks on any new important lines of operation especially where such major changes affect the public interest. Finally each ministry at the end of the year prepares an annual report which it submits to the government through its supervising ministry. The minister after studying the report ask questions where necessary before submitting the report to the government with its own comments. Parliamentary Control
Apart from ministerial control public enterprises are ultimately accountable to parliament through the ministers who are the political heeds of specifies government ministers that oversee one or more public
57
enterprises. According to Ujo (2001:83) stated that parliamentary control takes the following form.
1. Control through annual report of its activities to parliament through the minister 2. Control through annual account. A public enterprises usually submits its annual account for a given financial year to the parliament. Such annual account and report are subjected to debate in the parliament and 3. The financial commit of the house may summon the minister of a particular public enterprises to explain or discuss concerning his corporation.
Judicial Control
Many public enterprises in Nigeria have, at one time or the other, been subjected to judicial control by the government. As Olisa et al (1990:90) state “from time to time, a government sets up a commission of inquiry into the affairs of one or other of its public corporation, mismanagement in incompetence in the company.
58
2.1.3 Reasons for the Failure of Public Enterprises
A number of factors account for the poor performance of most public enterprises. The main reasons according to Ezeani (2006:224) are as follows. i. Multiple and often Contradictory Objective of the Enterprises.
The social goals or obligations of most public enterprises often conflict with their economic objective for instance, some public enterprises are expected to supply goods below costs in an effort to subsidize the public, or hire workers to meet national employment objective even when they are already overstaffed. Consequently, they become inefficient and ineffective. ii. Excessive control and lack of autonomy
Public enterprises managers suffer from excessive control and interference
in
their
daily
operations
by
supervising
government
departments. Also Obadan (2000:11) stated that “this often stifles managerial initiative and leads to costly operational inefficiencies and loss of accountability”. iii. Excessive political interference
Public enterprises also suffer from frequent political interference. They are often seen as instrument of political patronage by the government in power. This results in overstaffing poor choices of product and location, recruitment of mediocre etc.
59
iv. Absence of Competitive Environment
This leads to complacency on the part of the management of most public enterprises, resulting in poor services delivery and inefficiency. v. Corruption
Most public enterprises, especially in the developing countries, such as Nigeria, are seen as instrument for private wealth accumulation by their managers and political appointees. Consequently, huge sum of money are often siphoned into private accounts, leading to huge losses by the enterprises. vi. Poor Infrastructures.
The deteriorating state of infrastructures in most African countries also contributes to the failure of public enterprises as they contribute to high cost of operation. In Nigeria for instance, power supply is unreliable, consequently, most public enterprises rely on standby generators which cost much to purchase and maintain. In addition, the roads are in a bad state.
Public Enterprise Reforms
Since 1980s, some developed and developing countries have embarked on reform of PE, starting with Britain, which embarked on comprehensive privatization programme, and new Zealand, which combined privatization
60
with commercialization Pt reformers in these countries seek to achieve a combination of the following objectives According to Adamolekun (1983:45) i.
To ensure profitability by avoiding trading losses.
ii.
To avoid liquidity crises and rising debts.
iii.
To restructure and rationalize the public sector in order to remove the dominance of unproductive investments.
iv.
To prevent public enterprises from being an ever-increasing burden on the government budget and to facilitate their access to capital markets.
v.
To ensure positive returns on investments in restructured enterprises
and
improve
the
managerial
and
operational
performance of those enterprises that will remain in the public sector. vi.
To initiate the process of the gradual cession of private sector of public enterprises that by the nature of their operations and other socio-economic factors, is best performed by the private sector.
vii.
To create a favorable investment climate for both local and foreign investors.
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viii. To provide institutional arrangement and operational guidelines that would ensure that the gains of the reform program are sustained in the future. For this purposes and the widely use of privatization as public enterprises re reform form ttools ools we will explain the meaning of privatization as form of public Enterprise Reform.
Privatization
This is “the partial or total transfer of ownership of a public enterprises to the private sector. Full privatization entails government’s total surrender of its ownership, whereas in partial privatization, government still holds some shares (sometimes majority shares) in the public enterprises. The public enterprises that are partially privatized are usually the ones the government considers strategic, and want to keep under close supervision. Arising from the above, empirical evidences points to the global acceptability of privatization policy. Rondinelli and Lacono (1996:247) viewed the Latin American Countries such as chile and Argentina had transferred large-state controlled telecommunication, railways, power and energy, airline, mining and oil and petroleum industries to private ownership or management during the 1970s and 1980s. Also Kuye (1990:7) on asserted “countries such as united Kingdom, France, Canada, turkey, Nigeria etc.
62
which adopted mixed economy the government of these countries have now accepted the obvious truth that if all, or at least most of the public enterprises were turned over to the private sector they would be better managed and their economies would fair much better in terms of the set and their economies would fair much better in terms of the set out goals.
Arguments in Favour of Privatization
There are arguments for the privatization of public enterprises the main one are:
i.
i.
economic arguments
ii.
argument about management and efficiency: and
iii.
Ideological conceptions of what the role of government should be.
Economic
Argument:
The
first
economic
argument
is
that
privatization exposes economic activities to market forces and competition. Competition could be brought abut by selling or deregulating to allow the entry of competitors. As Hughes (1998:117) rightly noted “selling assets only improves competition, if an enterprises is already in a competitive environment, selling a monopoly with its regulation in fact does nothing for competition”. Therefore “the easiest way of introducing completion is to deregulate the industry,
63
rather than sell assets unless deregulation occurs at the same times as assets are sold. ii.
Managerial Efficiency and Privatization: the argument here is that
public management is inherently inferior to its private counterpart. Hanke (1986:13) stated that “the private firms are believed to be more efficient than public ones”. This has been attributed to the limited capacity of public enterprises to perform efficiently owing to a variety of reasons which government have not succeeded in eliminating. iii. Ideological Arguments: Ideological considerations re an essential
component of the privatization debate. Hughes (1998:122) points out that “privatization is part of the more general debate about the respective merits of market and non-market system of resources allocation, “privatization is based on capitalist values assumptions and ideologies. Proponents of privatization hinge their argument on the superiority of market forces and private enterprises. They argue that an even spread of ownership can be achieved with sound planning of privatization.
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2.1.4 Factors affecting management of public Enterprises in Nigeria.
Generally speaking, the performance of public enterprises in Nigeria over the years has been undermined by a conglomeration of both centrifugal and centripetal forces of various dimension exogenous and endogenous factors. The reasons however is consequent upon these dysfunctional variable hampering the operational efficiency of public enterprises. According to Obadan (2000:8) stated that “the performance of most public enterprises in both developed and developing countries has been generally disappointing”. Also Ozor (2004:155) opined that ‘the performance of public enterprises in Nigeria is nothing to write home about”. This means that public enterprises in Nigeria have failed to perform the initial role for which they were established. However, for the case of this study, we shall examine these problems specifically as it affects public enterprise. These problems specifically as it affects public enterprises. These problems includes: Conflicting objective, incompetent
management,
unstable
management/board,
general
incompetence, government interference, corruption and monopoly. 1.
Conflicting Objectives: the establishment of public enterprises,
especially in developing countries are predicated on basically two reasons, economic and political reasons. This suggests that public
65
enterprises exist for national developmental purposes, and in particular to play a leading role in the overall growth and development of the economy. Unfortunately, in Nigeria, these enterprises are profit bound to the extent that the very fundamental reasons for their establishment have been scarified. In other words, the twins objective of social service provisioning and profit maximization are contradictory and as such impediment to the operational efficiency of organizations. Implicit in the above assertion is that public enterprises have performed disappointedly and have therefore, become unproductive. Apart from being unviable, many have withered away. 2. Incompetent management/Board
The management mechanism of public enterprises, especially the Board of Directors constitute the decision making body, and as such assume the most strategic position in the hierarchy of enterprises. On this note, it is therefore expected the management would have the technical or managerial competence with which the realization of organizational goals and made possible. Conceptually, the management sstructures tructures of public p ublic enterprises lack required skill, experience and expertise necessary for keeping or4ganizations
66
above board. This problem perhaps is pivotal to the liquidation of some government establishments in the country. More so, appointment of board members is on political patronage or other primordial consideration in-lieu of merit. Also Ozor (2004:116) posits that the bane of public enterprises in Nigeria draws largely from the composition of the Board. To him, the management of these enterprises is not run on sound universal criteria consistent with basic bureaucratic principles and rules and advocated by max Weber.
3. Unstable management/Board
This is associated with political problems, which as associated Nigeria since independence in 1960. The manifestation of political instability in terms of constant change in government leads to alteration in the leadership structure of public enterprises. This however follows that new Board members emerge with new administration and thus makes for epileptic existence of these enterprises. In addition, the appointment of new Boards by a new administration follows the same pattern of political affiliation and considerations. This problem scuttles any meaningful growth or improvement of public enterprises in Nigeria.
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4. General Incompetence
The management apparatus of public enterprises both at the top and bottom is highly characterized by a magnitude of incompetence. This however results from the nature of recruitment and selection being made in respect to these enterprises. In most cases, recruitment of staff of these enterprises are not based on technical qualification and meritocracy as proposed by Weber. Incompetence among staff of public enterprises results to gross inefficiency in their operations. The effectiveness and efficiency of public enterprises depend significantly on the intelligent quotient, skills caliber, potentials, capabilities and quality of employees recruited. 5. Government Interference
Obviously,
since
public
enterprises
are
government
owned
establishments, they are accorded limited autonomy. This however entails that public enterprises operates under the supervision and control of the government through its various ministries. Consequently, in most cases the management structure of public enterprises is subjected to the dictates, whims and caprices of the politicians who supervise a particular government establishment. For example, some issues that ought to be handled by the
68
board or management are acted upon by these politicians without formal arrangement with the board. The aftermath of this development in our society can be grave since it tends to create bureaucratic bottle-necks in the day to day running of this enterprises as such distort the goals and objectives of these companies . 6. Corruption
Corruption has been described as unpleasant phenomenon, which has eaten deep into the fabrics of our nations. Most contemporary writers see it as an endemic development that permeates every sphere of our existence, especially in Nigeria. Corruption manifests in varying degrees in Nigeria public enterprises that its affects has been grave. Most of these enterprises have been derailed as a result of certain corrupt practices by both the government and the management. 7. Monopoly
Most public enterprises in Nigeria is associated with monopolies. These enterprises however face problem accompanying monopolies. One of the major problems of monopolies, which some of these enterprise suffer arises from the fact that they do not have competitors. However, they are often not in a hurry to either innovative or often better services since there is
69
no alternative. This is typical of NEPA now PHCN and NITEL before the introduction of GSM network. 2.1.5 Gap or Inadequacy in Existing Literature
There is gap in other literature of management of public enterprises in Nigeria, because other works on management of public enterprises in Nigeria failed to state strategies for improving public sector performance which this study have done by stating strategies for improving public sector performance. Such strategies are: as follows i.
Total Quality Management: is a management technique that emphasizes high-quality service (performance-oriented civil service) and customer satisfaction (customer-driven governemnt).
ii.
Capacity Building: A competency-based approach to the training and development of public servants is recommended. The need to train public servants as better managers is widely recognized as an essential element of any public service reform programme.
iii.
Decentralization: Decentralization of responsibilities in its various forms is advocated as a means of achieving public sector effectiveness.
iv.
Ethics and Accountability: Fostering and promoting conditions of service that enhance professional and ethical standard.
70
v.
Information and Communication Technologies: It is well understood and acknowledged that application of new public management tools cannot be possible without information and communication technologies.
These are the strategies recommended for this study for improving public sector performance that cannot find in other works on management of public enterprises in Nigeria. 2.2
Hypotheses
Drawing form the statement of the problem and objectives of the study as pinpointed in chapter one. The following hypotheses are formulated: i. Lack of good knowledge of management and public enterprises constitute bane to operational efficiency of NTA, Awka. ii. Government interference, conflicting objectives, bureaucratic corruption, lack of motivation and lack of training and development are the management problems of NTA, Awka. iii. Management inefficiency aand nd poor performance are the eeffects ffects of management problems on the operational efficiency of NTA, Awka.
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2.3 Operationalization of the Key Concepts 1.
Management: This is a process as well as an activity, which involves
getting things done through people with the view of achieving a desired result. 2.
Public Enterprises: These are institutions wholly or partly owned by
the government, created to perform some essential developmental functions which the deficiencies of the public bureaucracy make it incapable of undertaking. 3.
Performance: This means notable action and achievement centered
responses. 4.
Poor: of low in quality and quantity of service.
5.
Privatization: It means the handing over or selling of government
owned enterprises to private buyers. 6.
Bureaucratic Corruption: This refers to deliberate attempt by the
employees of Nigeria television Authority Akwa to enrich themselves. It encompasses all those practices that stagnate the growth and development of the company. 7.
Motivation: Motivation involves encouraging the employees to give
off their best this could be by promotion increase in the salary, and providing a better condition of employment e mployment to workers.
72
8.
Conflicting objective: Conflicting objective relates to the dual role of
providing social services will little or no cost and making profit at the same time. 9.
Efficiency: This relates to the ability of the management to achieve
desired result or the responsiveness of a given input to produce a commensurate or greater output with low cost. 10.
Training and development: It involves the process of equipping the
staff with relevant skills and knowledge required for a job. 11.
Government Interference: This captures unusual involvement of
government in the activities of public enterprises.
2.4 Methodology
The methodology refers to the framework of activity or operations of the research. Research is obviously an activity centered endeavor. It requires not just the mere writing of sound theoretical insight but also the practical efforts of designing instruments, collecting data and analyzing the data so collected. Seen purely in terms of method of study, Oguonu and Anugwom (2006:33) stated that it denotes the range of approaches used in research to gather the appropriate data to be used for the purposes of inference and interpretation on which to anchor explanation and predications”.
73
I. Type of Study
From the nature and procedure of this study, it will be named “Survey Research”. According to Obi (2005:64) opined that in survey research, the design should also take into account of the different methods of generating data such as the personal interview, a telephone interview, a mail questionnaire and “questionnaire” which tthis his study adopted as m method ethod of data gathering.
II. Data gathering instruments
In an attempt to explore and explicate the management of public enterprise in respect to NTA, Awka, the researcher gathered information through both primary and secondary sources of data.
1. Primary Source
The primary source of data for this work will be by oral interview. According to Ofuebe (2002:12) interview constitutes the major techniques for gathering relevant information. This survey instrument enables the researcher to have a face-to-face discussion between the person giving out the information and the person receiving the information. This helps to provide sufficient information to the researcher.
74
2. Secondary Source Under this, various materials relevant to the study are used, such
materials include: Newspapers, Magazines, journals, books and other unpublished documents. This was therefore facilitated through the use of Nnamdi Azikiwe Library of University of Nigeria Niger ia Nsukka.
iii Population of the Study
The population of this study is members of staff of NTA Awka including, senior and junior staff; because of the procedure of this study three key managers of the organization will be interviewed. Such managers are as follows: The General Manager; the News Manager and The Finance Manager. iv Sample of the Study
The study would sample 70 members of both senior and junior staff. They will be interviewed but the major information will come from the three managers. The General manager, the News manager and the Finance manager.
v. Sampling Procedure
The sampling procedure shall be convenience samplings since the primary source of data is oral interview. Some people will be interviewed
75
especially the three key managers of the organization. According to Obi (2005:75) convenience sampling implies the selection of whatever sample unit that are conveniently available. For example, a student doing research project may select his friends who can respond accurately to his research questions or an individual who he thinks possess the required information.
vi. Method of Data Analysis
The data from the in-depth interview will be analyzed using qualitative techniques by relating to outstanding points of the responses to the objective of study, upon which inferences will be drawn for generalization. Because the study relies heavily on secondary data as its major source, it will therefore, adopt “Content Analysis” as the method by which data generated will be analyzed. According to Ofuebe (2002:14) content analysis implies the systematic collection of data through a set of procedure. It is especially appropriate when it is difficult or impossible to interview a study’s subject. Either because they are deed. Rarely available for lengthy interview session and so on. Also elucidating further, Babbie (quoted in Gawarah, 1996:60) posit that when it is manifest or content. Content Analysis requires logical
76
reseasoning and judgment replication in order to ascertain its reliability and validity. He further stated that this method of analysis relies on replication and corroboration. As a result, if several source point to the same set of facts, it increase the confidence in such source and could therefore be used as a basis for generalization. Similarly, if the information obtained from the indept interview hold the same views with those obtain from secondary source, they will be held as being valid and reliable and also serve as basis for generalization.
2.5 Theoretical Framework
Hardly do we discuss and analyse concept meaningfully in social sources without linking them to or understanding them from some theoretical viewpoint or orientation, for this reason, this study will adopt a management
theory
from
contemporary
viewpoint,
the
theoretical
framework of this study is contingency theory of management. According to Ogunbameru (2005:112) contingency theory is a strand of organization theory (sometimes also known as the “rational system perceptive”, situational s ituational approach approac h “or “ or it aall ll depends sometimes”) the leading practitioners of which were T. Burns, J. Woorward, P. Lawrence, and J. Lorsch, an otherwise theoretical eclectic group who were nevertheless united
77
in their belief, that no single organizational structure was inherently more efficient than all others. The variation also prompted the question of an “ldeal” Theory. It showed that variation occurred because situation differed. According to Marshall (1996:89) stated that since organization differ in the task, they perform and environment they face, the appropriate organizational structure should in each case be a function of such factors as technology market, and the predictability of tasks”. Also Stacey (1993:177) opined that “the effectiveness of a particular organizational structure, culture, or sequence of actions is contingent upon or depends upon a number of factors. The most important of these contingency factors according to Stacey are as follows: a) The environment, particularly the market b) The size of the organization c) The technology it employs d) The history it employs e) The history of the organization f) The expectations of the employees and customers The theory states that success will be secured when an organization secures a good match between its situation and its strategies and structures.
78
In the words of Armstrong (2000:18) “contingency theory is essentially about the need to achieve fit between what the organization is and wants to become (its strategy, culture, goals, technology, the people it employs and its external environment) and what the organization does (how it is structured, the processes, procedures and practices it puts into effect)”. “Contingency is a theory about the nature of cause and effect. It makes statements like these: if an organization is operating in an environment that is very complex and changing rapidly, then it requires organic form of organization to succeed”. Ogunbameru (2005:114) stated that, contingency theory postulates a complex web of interconnections between the features of organization and their environment in which the causal connections are liner in the sense that they run in one direction. It is a particular environ environment ment that causes a particular kind of successful strategy and that causes a particular kind of successful structure. The theory does not contemplate circular causation in which the structure of organization cause them to follow certain strategies which then create certain kinds of environment to which they respond. The basic conclusion of the contingency theorists therefore is that the nature of the organization’s technology; its size, its legal incorporation, the character of its market, and other factors confront the organization with
79
some opportunities as well as constraints and therefore set the tone of the organization’s adaptation as revealed by its structure. The position of the contingency theory that effective management varies with the organization and its environment agrees with the equifnality concept propounded by Katz and Kahn on the question of what should be an “ideal” theory. The equifinality concept contends that it is possible for open system to reach the same final state from differing initial conditions if one pursues this line of thought deeply, it would appear that the contingency management theorists seem to align themselves with w ith the view that the end justified the means. Application of the theory to the study
The management of public enterprises in Nigeria should learn how to adapt to the changing environment, depending on the speed at which the environment changes. For example, the rapid changes in ICT world, most organizations have introduced the use of computers and internet to their operation. So the management of public enterprises in Nigeria should adapt to ICT environment by laying off analog style of management and embrace digital style of leadership by recruiting computer literate personnel, and making use of computers in the organization. This will go a long way of enhancing organizational intelligence. That the organization is intelligent is because of o f kind of information it receives and how constant it receives ssuch uch
80
information. Provision of internet facilities in our public enterprises will improve its efficiency and effectiveness because the internet will enhance the rate and quality of information it receives. However, the management of public enterprises in Nigeria, including NTA, Awka, should know that management is situational according to contingency theory. Contingency theory will serve as a tool of motivation to managers because it will gives the managers ability to use their private initiative. The situational or contingency theory asserts that when managers make a decision, they must take into account all aspect of the current situation and act on those aspects that are key to the situation at hand. It is the approach that “it depends”. For example, if one is leading troops to Iraq, an autocratic style is probably best. If one is leading hospital or university, a more participative and facilitative leadership style is probable best. So this theory will expose the leadership of public enterprises in Nigeria including NTA, Awka on the need to app apply ly a leadership style tthat hat is best suited to the situation at hand.
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CHAPTER THREE 3.1 BACKGROUND INFORMATION ON NTA, AWKA
Before giving a brief history of NTA Awka, I will first give a general background information infor mation of Nigeria Television Authority in Nigeria. The history of the Nigerian Television Authority (NTA) can be traced st
back to that modest beginning on 31 October 1959 when the Western Nigerian Television (WNT) beamed out the first Television Signals in Nigeria, Barely a year after. In 1960, the Eastern Nigeria Television (ENTV) ( ENTV) came alive. This was followed in 1962, by Radio Television Kaduna (RTK). Still in 1962, the development was given an added boost by the federal government with the establishment of the Nigerian Television Services (NTS), Lagos, Midwest Television (MTS) came on stream in 1973 while Benue/Plateau Television (BPTV) Jos, made history by commencing transmission in colour from inception in 1974. Nigerian Television Authority was inaugurated in May 1977 although Decree 24 of 1977 was promulgated in March 1977 having effect from April 1976. By that Decree the Nigerian Television Authority became the only body empowered to undertake television broadcasting in Nigeria. All existing state television stations were thereby taken over and incorporated in NTA. The authority was or organized ganized o on n tthe he six zones st structure ructure ssuch uch that each
82
zone consist of 3 stations except for one which is made of four stations. The production centre exist in each state to contribute programme to the zonal output. When all the installations, have been completed, it should be possible for anyone in Nigeria to receive any of o f the six zonal programmes by choice. In 1977, when the NTA was inaugurated, there were 7 stations with 3 in their final stages of commissioning whilst the other states had none at all. By December 1979, there were scheduled television broadcasts from every state capital in the country. Programming
A number of NTA programmes can be viewed online via affricate. NTA News bulletins are frequently aaired ired on Africa. Independent Television, and BEN Television in the United Kingdom. The state was made available through sky in the UK on channel 202, but in early March 2010, they refused to make their channel pay-per-view on sky, the next day the channel was removed from the sky EPG. It is also on the IPTV platform suncas TV, and via free-to-air statellite on Galaxy 19, intelsat 905 and intelsat 907.
83
NTA braches and network centers
NTA Aba
NTA Gomber
NTA Lafia
NTA Abeokuta
NTA Gusau
NTA Lokoja
NTA Abuja
NTA Ibadan
NTA Maiduguri
NTA Plus Abuja
NTA Ife
NTA Makurdi
NTA Ado-Ekiti
NTA Ijebu-Ode
NTA Minna
NTA Akure
NTA Ilorin
NTA Ondo
NTA Asaba
NTA International
NTA Osogbo
NTA Awka
NTA Jalingo
NTA Owerri
NTA Bauchi
NTA Jos
NTA Port Harcourt
NTA Benin
NTA Kaduna
NTA Sokoto
NTA Calabar
NTA Kano
NTA Uyo
NTA Damaturu
NTA Katsina
NTA Yenagoa
NTA Dutse
NTA 2 Channel 5 Lagos
NTA Yola
NTA Enugu
NTA Channel 10 Lagos
NTA Sapele
NTA Education NTA Sports Organization
The Decree establishing the NTA provides for one National Board and Six Zonal Boards. The National Board has overall responsibility for policy and standards and remains the corporate legal entity with the Director-General as Chief Executive he is assisted at HQ by departmental Directors of Engineering, News, Finance, Programmes, Legal and
84
Manpower Resources. The chairman of each zonal Board is a member of the central board and the chief executive to the zonal board is t he zonal managing director. The zonal management consists essentially of specialist advisers to the zonal managing director namely secretary to the Board, Programmes Coordinator, Chief Engineer and Chief Accountant. In addition, the zonal auditor ensures that proper books are kept in the various production centers. It is the duty of the zone to ensure that the programmes broadcast conform with the national policies and standards of NTA, the production centre which is the third tier within NTA does the actual making of programmes. It is headed by a general manager and staff strength in the oldest stations numbers up to 500. In March, 1980, the Board of Authority was dissolved and its functions were taken over by Chief Olu Adebanjo, special Adviser to the president on information. In September, 1980 the position was revised and an interim committee was set up by the president-in-council, with powers to carry out the functions of the board. The members of the committee are the permanent secretary, federal department of information, the chief press secretary to the president, the federal director of information, and the director-general NTA, with the special
85
Adviser now as chairman of the committee NTA-The largest TV network in Nigeria
The Nigeria Television Authority, NTA is the largest TV network in Africa as well as one of the oldest and most accomplished indigenous broadcast outfit in Nigeria. The NTA has over the years, distinguished itself as a force in the field of television broadcasting globally. Its quality programmes have received numerous awards at international competitions and festivals, which includes the following: 1. 1st prize ffor or drama categ category ory at the the URTNA competition in Algi Algiers, ers, Senegal, etc with Cock Crow at Dawn, moment of Truth, etc. 2. 1st prize for drama at the US prized pieces festival, with “this fall part”. 3. 1st prize in Documentary Category with ‘A Labour Honour lost at the 1988 TAM-TAM International Video Competition in Italy, among other laurels. The authority is equipped with new state of the art digital facilities, which has additionally enhanced its competitive advantage as a major player in the broadcast industry, worldwide. worldw ide.
86
Brief historical background of NTA, Awka st
Nigeria Television Authority was Commissioned on 31 March 2003 by Prof. A.B.C. Nwosu, on behalf of Mr. President Olusegun Obasanjo. It started with Eight Staff, the General Manager then was Mr. Azuka Amangbo, he headed the organization for six months before handed over to Lady Mary Okonkwo, the staff strength by 2004 increased to 14 staffs. The major functions of the enterprise in respect to its social services objective is a) To educate people b) To entertain people and c) To inform people Organizational structure
At the Apex of organizational organogran is the General manager (GM) under him are managers that head each units as assistants. The Organogram is illustrated below
87 General Manager (GM)
Administrati
Finance
Engineering
Marketing
News
Programme
ve manager
manager
manager
manager
manager
manager
Asst.
As. Finance
Asst.
Asst.
Asst. News
Asst. Programme
Administrative
manager
Engineering
Marketing
manager
manager
Prin. Admin.
Principal
Principal
Principal
Principal
Officer
Accountant
Engineer
Marketing Officer
Editor
Senior
Senior
Senior
Senior
Senior
Senior
Admin.
Accountant
Engineer
Marketer
Editor
pgoramme
manager
Officer
Prin. Program officer
officer
Admin.
Accountant
Officer 1
1
Admin
Accountant
Officer 2
2
Engineer 1
Marketing
Editor 1
Officer 1
Engineer 2
Marketer 2
Programme Officer 1
Editor 2
Programmer 2
88
Therefore, from the structure of the company. It is apparent that there are proliferation of departments and sub-units assigned different responsibilities based on job specialization. Some of the major departments are, 1. Administration Department 2. Finance/accounts Department 3. Engineering Department 4. Marketing Department 5. News Department 6. Programme Department In so far, we shall examine these various departments under the management structure of Nigeria Television Authority Awka. Administration Department
This is the center of all activities as well as an indispensable unit of any organization. It is concerned with the day-to-day routine administration of the enterprise. At the head of the department is the administrative manager. The sections making up this department include the following personnel unit, general administration, public relation, security, transport etc. i. General Administration: The general administration is concerned with
the general aspect of the administration such as mails-incoming and out-
89
going correspondence to and from the enterprises, etc. This section is headed by an administrative officer. ii. Personnel Unit: This unit is headed by the personnel manager, the
personnel manager is responsible for the staff disposition of all departments.
The
function
of
this
unit
include:
recruitment,
training/orientation, and placement of staff, as well as staff development and welfare. It formulates well developed employee welfare policies and programmes, and ensures their effective implementation. It also takes care of intra-and inter-staff relations within and outside the organization. The unit also ensures that supervisors fully understand and effectively apply personnel management policies in dealing with the workers under their supervision. It further ensures that workers work under conducive environment that the performance or output of each staff is well evaluated: that workers are transferred, reassigned or promoted and disciplined when and where necessary; that job specification and role assignment are made with effectiveness and efficiency as their benchmarks. iii. Security Section: The security section is charged with the responsibility
of ensuring the safety of the property of the enterprise. This section is headed by the chief security officer, responsible to the administrative
90
manager. However, experience has shown that this section does not effectively protect the property of the enterprise as evidenced by incessant cases of missing property, pilfering rampant in most public enterprise organizations in Nigeria. iv. Transport Section: This section is concerned with transporting all the
materials needed by the enterprises raw materials from outside to the enterprises or finished products from the enterprises to the outside. It is also responsible for the transportation of workers to and from their work place. This section is headed by a transport officer who also reports to the t he administrative manager. Its main personnel are drivers and their mates. In addition to other technicians and mechanics. Finance/accounts Department
The accounts department is usually headed by a qualified accountant. This department is responsible for all the financial transactions which include: accounting, revenue collection, control, and disbursement of fund. The significant position of this department in any organization cannot be overemphasized. This is illustrated by the fact that effective financial management is necessary for the survival of any organization.
91
Engineering/works Department
This department caters for the transmitting and broadcasting, the transmitting equipments are under this department, also maintenance of equipments. This department is headed by Chief Engineer. Marketing Department/Commercial Department
At the head of this department is the marketing manager. This department is responsible for the marketing of finished products including services, namely-distribution, advertising, sales promotion and general sales and services. It is also responsible for drawing up effective and efficient marketing strategy and planning for the products. This department also search for news. News Department
This department source for news, daily information for dissemination, packaging and reading the news for people to listening i.e. (News Casting). The department is headed by Chief Editor. Programme Department
This department has sole responsibility of packaging and arranging new for news casters. The department also arrange other activities of the station for airing. The department is also head by programme manager.
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CHAPTER FOUR DATA ANALYSIS
This chapter will deal specifically with the information from data results. It will be analysed and thereafter inferences will be drawn for generalization, the researcher makes use of interview instruments, hence interview schedule was the researcher’s main technical instrument of information gathering in eliciting good response from the respondents. The data analysis will be done under the three following sub-headings i.
Lack of good knowledge of management and operational efficiency of NTA, Awka.
ii.
Government interference, conflicting objectives, bureaucratic corruption,
lack
of motivation
and
lack
of training
and
development are the management problems of NTA, Awka. iii.
Management inefficiency and poor performance are the effects of management problems on the operational efficiency of NTA, Awka.
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4.1. Lack of good Knowledge of Management and Operational Efficiency of NTA, Awka
From the interview with managers of NTA, Awka, it is indicated that most managers of our public enterprises are not professional managers, they lack the basic skills of management and knowledge of what they are managing. In this study, it was observed that there are many reasons for this problem. Nigeria is a country richly endowed with resources, theses resources enabled the country acquired modern technological and financial leverage. The improvement gained in our financial returns from natural factors was so much that one of the Heads of States boasted that Nigeria’s problem was w as not how to make money b but ut how to spend it and consequently embarked on a jamboree spending including hosting of Nigeria’s festival of Art and Culture. But the truth is that the considerable growth in economic output and in the resources available for development over the period since 1960 through 1970s was due largely to fortuitous factor Crude petroleum and its fortunes in the world market. Actual economic development has been less impressive while that in social development has been most disappointing. Indeed the present setting confronting us is a testimony that Nigeria ranks among the poorest nations of o f the world.
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The question that agitates ones mind therefore is why is the country in such an object poverty condition in the midst of plenty? Researchers on this issues seem to come to one conclusion. The country has management problem. There is the thinking that our inability to properly manage our enormous resources to increase our prosperity. According to Ejiofor (1981:126) opined that businesses that were set up by Nigerians both private and public but which phase out at various stages of existence because of management problem. If our problem as identified is lack of knowledge and poor management, one would expect that the growing number of management training institutions and management consultancy services in the country would have created considerable impact on the fortunes of the nation. Many writers have averred that the management problems we have in this country is traceable to the management approach developed in the western countries not being appropriate to Nigerian situation because Nigerian culture varied from western culture base of the management theories. Also Akpala (1990:123) cautioned that the problem many not be that of cultural variation but perhaps because Nigerian managers, at all levels have not show proper orientation for rationalized m management anagement in planning, organizing and controlling. Ejiofor (1981:128) gave a rather practical explanation for the variation, He opined that it came from the
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separation and differences in orientation between the academic theorists who propounded the theories and the practicing managers who applied them. Whichever way we look at the matter, it is obvious that the relevance of culture to responsibility and evaluating the success of managerial approaches. The fact is most relevant in developing any management approach for the Nigerian environment and we intend to explore this angle deeply. According to Oshagbemi (1989:16) he stated that the following factors have been pinpointed as being responsible for the poor performance of most government-owned organizations in Nigeria. i.
Illiteracy:
This has been pinpointed as one of the reasons why most organizations in Nigeria including NTA, Awka fail to perform. Most managers did not gain the qualitative education it takes to properly manage organization. Many rise from the ranks, from cleaners to clerks etc to managers as a result they perform poorly. ii. Value System
Nigeria’s value system te tend nd to control tthe he actions of the managers such that the managers respect the value system instead of adopting the proper management practices. An instance is the value system that sees the elderly as somebody to be respected since his words are words of wisdom, even
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when his ideas are wrong, the manager who must respect the value system carries out the elders instruction. These practices then rundown the organization since they do not go in line with the known management practices. iii. Person to Person Relationship
When this exists in organization then personalities are listened to, attended to and respected instead of following a stated management procedure. In our public organization including NTA, Awka, for example, up till the present time, if a customer does not know one of the workers who may help to quicken the services rendered, then such customer must be ready to spend hours waiting for their turn. The proper management principles should be person-to-object pe rson-to-object and not person to perso person n as it presently the case in developed nations. Extended Family
This is a situation where workers are loyal to the family rather than to the organization as far as their works in the firm are concerned. As a result, family obligations are attended to at the detriment of the work obligations for instance, Thursday and Fridays have now become the traditional burial days with the result that sometimes only very few workers are seen loitering
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in the offices. Sometimes also to please an extended family members a worker may commit offence which will make the organization suffer. iv. Superstitious Belief
Nigerians believe in reincarnation with the result that somebody’s failure can be attributed to his reincarnator or “Chi”. As a result of this basic belief system, it may be very difficult to convince a worker to admit his wrong doing and be sincerely sorry and responsible for them. Rather the person’s “Chi” is blamed for the misdeeds. Also according to Oshagbemi, when this is the case, then different management principles peculiar to the Nigeria environment environ ment will have to be de deviced viced to make them wo work. rk. Accord According ing to Onyemelukwe (1981:182) cited an example where people are never told that they are wrong rather parables and innuendoes are used to hide the truth. He further referred to the open appraisal system and maintained that it is not Nigeria’s culture to tell somebody that he is totally wrong. v.
Attitude to Time
Managers of our public enterprises including NTA, Awka have been known to believe in “African time,” it has even become a syndrome because after fixing a time for an event, cognizance is or hours are given before the function takes off. In a work organization, such allowance cannot be given because workers must be in their offices by 7.30am presently. In some
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offices, the offices are still locked by 10.00am sometimes, the manager who also come late are locked out with the result that sometimes before offices are formally opened for work, it is already 11.30am and yet the offices must close by 3.30pm. vi. Formation of Cliques
This is a situation where some workers group together to run down the progress being made b by y the person at the helm o off aaffairs ffairs once the person is not “Our man” such people never attend meetings to contribute meaningful to organizational growth and progress and whatever decision taken in their absence are never abide by this practice tends to pull the organization backwards. vii. Embezzlement
It is generally still believed in Nigeria that the funds and property of any government-owned including NTA, Awka belong to the masses. As a result, office holders see their appointments to office as an opportunity to enrich themselves. Huge sum of money embarked for different projects are shared without executing any project. Besides people tend to believe that such opportunity may never present itself again, therefore one should make the most out of it.
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viii. Bribery and Corruption
The progress that should ordinarily be made in offices are not made because many believe in giving and receiving bribes. Sometimes, somebody’s file is hidden until the person greases the palms of the officer in charge. When the bribe is not given, the important files gets missing and the purpose for which it would have served is not accomplished. The few that still refuse to engage themselves in the bribing suffer so much. ix. Retaining Indolent Workers
Some workers are not useful in organization because they are not productive. But b because ecause they are related to the managers, they are retained. Some of these categories of workers go to banks everyday, some go to the hospitals. Some take casual leaves more than they should in a year etc. They always look for excuses not to come to work yet at the end of the month they look forward to receiving their pay. Also according to Ejiofor (1986:130) stated that there are factors that are still lacking in the Nigerian managers including managers of NTA, Awka which if imbibe will helps to overcome some of the problems of management mentioned above. These factors are as follows;
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1. The Integrity Factor: Ejiofor defined integrity as the aspect of one’s character rooted in his conviction which serves to deter him from taking advantage of his position or strength to gain at the expense of his organization, customer, client or subordinate. The average Nigerian still lacks integrity and that is why managers still use their position to take advantage of their clients, organization, and subordinate. Though Ejiofor tried to differentiate between integrity factor and corruption, it must be noted that once a manager is encouraged to bribe in the name of “PR” to gain a contract, such manager can also defraud his organization. The manager does not lack integrity but can be termed corrupt. A corrupt manager therefore lacks integrity and that is basically why managers take advantage of their organization when they embezzle company’s fund or commit so many other offences. 2.
Attitude to Work:
The general attitude exhibited by the Nigerian managers to work is poor and a nd negative by Ejiofor’s definition, work attitude is the predispos predisposition ition to work arising from concepts, feelings, beliefs, habits and motives. He attributed
these
to
infrastructural factors.
have
arisen
from
historical
socio-cultural
and
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Under the historical factors, Ejiofor feels that the traditional reward system which was usually with the white collar jobs, people are paid fixed wages no matter what input they have made. In addition, the traditional system allowed the workers opportunity to identify with the work, take decision concerning its implementation. This is not the case with the civil service rather, impersonality and anonymity are encouraged. Still under the historical factors, Ejiofor writes that the traditional setting encouraged work by age grade but that is not the case presently. The present prese nt requirements are salary, experience and academic stratification. One workers loose pride in the work they are doing, they become so non-challant that anything goes. The socio-cultural factors emphasize those practices which the Nigerian people live with and which have resulted to negative attitude to work. Areas cited by Ejiofor are extended family system where the worker thinks he is working for the extended family rather than for his nuclear family, and resorts to doing other works once the pay is not enough to meet the enormous responsibilities facing him in the family.
Under the
infrastructural factors, it is maintained that good infrastructural facilities enhances work in organization. Some of these are good roads, electricity, water, good communication network etc. When these are available, they
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engender positive attitude to work. But when they are lacking, workers exhibit negative attitude to work. 3.
Poor Instrumentality/Reward System:
Instrumentality according to Ejiofor is the relationship between an individual’s goal or the reward he desires and the organizational objectives that he is expected to fulfil. Instrumentality is present when an individual sees his efforts to achieve organization goal ad closely related to the reward that is apportioned to him. On the other hand, when a person does not see his efforts in an organization which help the achievement of organizational goal as directly related to the reward he is getting, he develops a negative attitude to work and this pull down the progress of the organization. 4.
Lack of Discipline:
In discussing indiscipline as one of the factors perpetrating lack of growth and progress in our public enterprises including NTA, Awka. We emphasize the fact that people are allowed to go unpunished for crimes they have committed. Take for instance if it is discovered that a manager has embezzled some company’s funds, the manager is merely removed or redeployed. His successor having seen the way his predecessor was treated, is ready to commit his own embezzlement hoping that he will not be treated
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differently. If strict disciplinary actions are taken on offenders, others would be deterred from committing similar offences. 5.
Meeting the Basic Needs:
Maslow in his hierarchy of needs writes that the needs of man are arranged in a hierarchy comprising of physiological, safety, social, esteem or ego needs and self-actualization. The first three needs he termed lower-order needs. Most Nigerians are still battling with fulfilling the lower – order needs especially the physiological need of food, shelter and clothing. They are not sure of three meals a day which should be the minimum. As a result of the above, any manager who sees a way to embezzle indulges, so that he will not go back to the shackles of his former positions when he vacates office. When the salary is not enough and the manager has lots of family responsibilities, a manager that lacks integrity steals organizations fund as an insurance in case he is removed. So in this section, it is observed that most managers of our public enterprises including NTA, Awka lack basic skills and knowledge in management and also other factors influences their behaviour as managers.
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4.2. Government Interference, Conflicting Objectives, bureaucratic Corruption, Lack of Motivation and Lack of Training and Development are the Management Problems of NTA, Awka
The above statement have answered the research question two, which sought to know the management problems of NTA, Awka. Form the responses of the managers of NTA, Awka, it is indicated that Government Interference, Conflicting Objectives, bureaucratic Corruption, Lack of Motivation and Lack of Training and Development are the Management Problems of most public enterprises in Nigeria including NTA, Awka. The performance of most public enterprises in Nigeria including NTA, Awka has been generally disappointing, resulting in the words of O Obadan badan (2000:8), in widespread as to whether the benefits of public ownership are worth the cost. Paul and Simon (cited in Obadan (2000:8) argued that in country after country, unbridled state expansion has led to the following; (a) Economic Inefficiency in the production of goods and services by the public sector, with high cost of production, inability to innovate and costly delay in delivery of the goods produced. (b) Ineffectiveness in the provision of goods and services such as failure to meet intended objectives diversion to benefits to elite group etc.
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(c) Rapid expansion of the bureaucracy severally straining the public budget with w ith huge deficits o off pub public lic enterprises becoming massive dra drain in on government resources, inefficiency in government etc. Most public enterprises operate at a lost, and therefore constitute a massive drain on government resources through transfers and subsidies. Obadan (2000:10) further maintains that “in Africa, the poor performance of public enterprises enterpr ises attracted a g great reat deal of criticisms, particularly in the 1980s and the macro-economic policy environment arising from the impact of the global economic crisis, become less accommodating to the resulting inefficiently in resources allocation”. Ezeani (2006:224) also stated that a number of factors account for the poor performance of most public enterprises, the main reasons according to him are as follows; i.
Multiple and often contradictory objectives of the enterprises.
The social goals or obligations of most public enterprises often conflict with their economic objectives for instance, some public enterprises are expected to supply goods below cost in an effort to subsidize the public, or hire workers to meet national employment objectives even when they are already overstaffed. Consequently, they become inefficient and ineffective.
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ii. Excessive Control and lack of Autonomy Public enterprises managers including NTA, Awka suffers from excessive control and interference in their daily operations by supervising government department. Obadan (2000:11) also stated that this often stifles management initiatives and leads to costly operational inefficiencies and loss of accountability.
iii. Excessive Political Interference
Public enterprises also suffer from frequent political interference, they are often seen as instrument of political patronage by the government in power. This results in overstaffing, poor choices of product and location recruitment of mediocre etc. iv. Absence of Competitive Environment:
This leads to complacency of the past of the management of most public enterprises, including NTA, Awka, resulting in poor service delivery and inefficiency. v.
Corruption
Most public enterprises, especially in the developing countries, such as Nigeria, are seen as instrument for private wealth accumulation by
their managers and political appointees. Consequently, huge sum of
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money are often siphoned into private accounts, leading to huge losses by the enterprises. vi.
Poor Infrastructures
The deteriorating state of infrastructure in most African Countries also contributed to the failure of public enterprises as they contribute to high cost of operation. In Nigeria for instance, power supply is unreliable, consequently, most public enterprises rely on standby generators which cost much to purchase and maintain. In addition, the roads are in a bad state. Like in NTA, Awka according to GM. Inadequate equipment constitutes challenges in the area of production as well as transmission. Sometimes a reporter or a producer returns to base with aan n eempty mpty cas cassette sette or a untransmittable material ofte often n being in the field for hours. This could be due to bad tape mal-function of equipment or even poor handling. This is very embarrassing especially when the situation cannot be recreated one of the biggest challenges that station has been facing since inception is running daily transmission on generator. A large chunk of the stations lean finances goes into the purchase of the diesel for running the generator. This is a very challenging strength depends on how well we are received in the commercial centers of Onitsha and Nnewi from all indications we are
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barely received in these places. The 60KVA ups which would have given us the much needed relief was damaged during installation by the contractor company. So all these challenges are what we are battling now to make sure that our services are better. Also according to the response of one of the managers of NTA, Awka, stated that nepotism, unqualified personnel’s are being hired into the system. Leadership in Nigeria public organization has been highly influenced and shaped by the country’s changing political scene. The experience of working in the public service since independence has bee largely in the direction of master-servant relationship al all levels, between ministers and top public servants. Also the subordinates are very much removed from the decisionmaking arena. They are denied the opportunity of exercising the function of presetting alternative ways wa ys of ac achieving hieving objectives and setting consequences co nsequences of implementing implementing policy alternatives. So the relationship between superiors and subordinates in the public service in Nigeria as one of acrimony and antagonism in the conflict rather than partnership in an enterprise with resultant lack of team-work necessary in modern management. Still in corruption, it is clear that most public enterprises, especially in developing countries, such as Nigeria, are seen as instrument for private wealth accumulation by their managers and political appointees. Huge sum
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of money are often siphoned into private accounts, leading to huge loses by the enterprises. Any public officer or manager are expected to give account of public resources entrusted to them. Despite these expectations, public servants in Nigeria have often been found wanting in the discharge of their duties. I think reason for this dirty act could be value system of the people lack of commitment, general poverty of Nigerian, lack of social services and political interference. So corruption is a big problem, prob lem, in a system where high premium is place on material resources becomes a mean for private enrichment when sources of wealth are not queried but praised. We live now in the society where the end justifies the means, it is not a surprise the way our
social
institutions
recognize
people
of
questionable
character.
Traditional rulers encourage people of questionable means in the society by giving them chieftaincy title. So corruption is a major issue to tackle in the public enterprises including NTA, Awka. Striking on corruption as one of the management problem of public enterprises in Nigeria including NTA, Awka. Ikejiani-Clark (1995:142) see “corruption as the inducement of means of improper consideration to commit a violation of duty, an inducement in cash or kind to secure services or goods from public officials or agencies through illegitimate or unlawful or irregular means”. As it was further stressed corruption in general include the
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misuse of authority as a result of consideration of personnel gain which need not necessarily be monetary. In public enterprises, corruption is mot usually taken to mean the receiving or offering of money or other clear advantages in return for contracts, not being obliged to discharge an obligation; obtaining a job which one is not qualified. Also Arnold (1977:147) opined that corruption is a behaviour of public officials which deviates from accepted norms in order to serve private ends. Corruption is universally accepted as exceptional behaviour tat is condemnable, like most concepts used in the social science, corruption lacks an accepted definition. Leadership is a universal phenomenon. The qualifies which go to make a goon leader are essentially the same everywhere with inevitable variations based on cultural and traditional difference. What is required in public enterprises leadership are universal qualities recognized an accepted everywhere particularly in democratic societies. Stockdale (1983:35) argued that leaders’ need to be moralist not just poseurs who pretentiously exhaust people to be good. This requires a clear idea of right and wring and the integrity to stand behind your assessment. The quality and strength of an administration lies in his or her capacity to effectively deal with the moral complexities of the organization. The leaders give others a sense of perspective and set the moral social and motivational climate among
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followers. It is generally accepted that corruption is the public enterprises problem and what is required in the country is a incorruptible leadership which is not interested in acquiring wealth. It is expected of any public officer to manage the affairs of the public and society in general in good faith. This require high sense of moral standard, accountability of resources, both human and financial in public service, therefore becomes very important as it concerns development and proper harnessing har nessing of the limited reso resources. urces. Public ser servants vants are tthus hus expected to give accounts of public servants in Nigeria have often bee found wanting in the discharge of their duties. Edache (2003:5) opined that there are many reasons for officials in public positions to indulge in corruption practices in Nigeria, these include value system of the people, lack of commitment, general poverty of Nigerians, lack of social services and political interference. Also looking at lack of motivation and lack of training and development as a problem of management in Nigerian public enterprises including NTA, Awka. Basically training helps as employee to learn the job quickly and effectively and thereby helps to minimize the money incurred during the training period. The standard and quality of work required by the
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organization is more likely to be achieved and maintained if employees are trained for he job then id arrangement are haphazard and left to chance. Generally, training is often considered to be narrowly vocational in contrast to education, which is liberal and concerned with the whole man. However, an employer is interested in the responsibility, capacity for leadership and foresight of his managers and supervisors, so that experience including training courses, which demand institutive test stamina or broaden people’s understanding of social stages and at certain levels as those which increases technical knowledge or improves manual skills. According to Nnadozie (2002:5) he stated that an employee who have not gotten an adequate training before being given responsibility lack the necessary confidence with which to execute the duty. A trained employee is a confidant worker. He can think and originate ideas on how best to carry out the task required of him or her. The interrelationship between training and motivation is that a trained employee is motivated employee. So the necessity for managers and administrators to motivate their employees cannot be over-emphasized. There is no doubt that the ability of any organized enterprises and indeed any group to achieve its goals depends to a large extent on the motivation of
its employees. Indeed, no manager or administrator can succeed in achieving
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optimal productivity for his or her enterprises without knowing what motivates people. It was also suggested that all those who are responsible for the management of private enterprises including NTA, Awka to build into the entire system factors that will induce people to contribute as effectively and efficiently as possible. A manager does this by building into every possible aspect of the organization climate those things which will cause people to act in desired des ired ways. So motivation is very iimportant mportant for any public p ublic enterprises that wants to succeed.
4.3. Management Inefficiency and Poor Performance are the effects of Management Problems on the Operational Efficiency of NTA, Awka.
This section of the analysis will be guided by research question number three, which sought to know the effects of management problems on the operational efficiency of NTA, Awka and the measures of overcoming these problems. Also form the response of the management of NTA, Awka, it is clear that the effects could be poor performance and management inefficiency. Most Nigerians have been living witnesses to the very poor performance of the Nigerian public enterprises. Since independence, these enterprises have not only failed to justify the huge government investment
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and subventions to them but have constituted a huge financial burdens of the government including NTA, Awka. Management inefficiency and poor performance of most public enterprises led to their privatization, privat ization, for example NEPA to PHCN. So talk talking ing abo about ut po poor or management is also a major reason, because the enterprises were so poorly administered and managed that they had little or nothing to offer to the public for which they were meant to serve and therefore could not justify their continued existence. One of the cardinal objectives for the establishment of public enterprises in Nigeria was to aid economic development. Sequel to the weak economic structures inherited from the Colonial government and the absence of any strong indigenous capitalist and local entrepreneurs strong enough to pilot the economic development of the country. Regrettably enough, the public enterprises have not only been unable to justify the high hoped and expectations reposed on them, but also appeared incapable of managing efficiently, the huge financial resources hitherto appropriated to them for their supposed crucial role. According to Ozor (2004:170) stated that public enterprises in recent times, have been found to be inefficient, unproductive, unprofitable and therefore have failed to perform most of the roles they were expected to perform, this including NTA, Awka. Consequently, they were
seen in many quarters as constituting a financial burden on the government
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instead of performing the various functions for which they were instituted. Ozor further stated that the image of public enterprises is so bad that it has come to symbolize inefficiency, red-tapism, lack of initiative and corruption, this may not be totally justified but it reflected apparent dissatisfaction with public establishment. Olabode (1988:2) stated that publicly run enterprises are notorious for their ability to forget the reasons for their creation, thereby becoming ends in themselves. The result is that million of naira of a significant proportion collected from the taxpayers, for whom these services are created are spent on paying employees who do not have any idea of what they have been employed to do, purchasing equipment which nobody knows how to maintain and generally funding mismanaged enterprises and their debts. Nigeria Airways and the National Electric Power Authority are just two examples of such wasted fund. Nwachukwu (1988:16) opined that a glance at the public corporation – Nigerian Niger ian Coal Corporat Corporation, ion, Nigerian Niger ian Airways and the Nigeria Railways to operate efficiently necessitated the sub-contracting of the management of this corporation to expatriates. Another reason for the privatization exercise embarked upon in Nigeria was due to management inefficient which
characterized these enterprises. The enterprises were so poorly administered
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and managed that they had little or nothing to offer to the public for which they were meant to serve and, therefore, could not justify their continued existence. Referring to this point Ozor (2004:173) stated that it is surprising to note that despite the existence of Centre for Management Development (CDM), the Administrative Staff College of Nigeria (ASCON), the Nigerian Institute of Management (NIM) and all our universities, a number of public enterprises are still being managed on the principle of trial and error, or by intuition and quite unscientific methods. Adebayo (2000:169) stated that in considering the factor of inefficiency in the Nigerian public service, thirteen main reasons are identified below, these reasons according to him can be grouped broadly under five main categories i.e institutional, political, psychological, attitudinal and sociological.
Institutional Faculty recruitment of employees
One of the banes of the Nigerian public organization is the recruitment of mediocre or totally unsuitable candidates of preference to candidates of high merit. The reasons for this ugly situation can be traced directly to nepotism. Corruption plays only a little part and is generally
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prevalent in the recruitment of very junior officials of lower middle rank who see an opportunity of making money on the side by collecting little bribes from applicants. Much as this situation is reprehensible, it is not the heart of the matter. The selection of unsuitable candidates,, which undermine efficiently and lower performance of higher grades of staff-assistance secretaries,
accountants,
technical
officers,
works
superintendents,
information officers. Highly placed functionaries at the top of the system are responsible for the recruitment of these grades of staff. It is not being suggested that the illustration cited above represent the state of affairs generally in the public organizations like NTA, Awka. On the contrary, there are institutions within the public service which rigorously uphold and enforce the principle of merit and whose integrity cannot be faulted. Yet this fact should not blind us to the existence of frequent lapses in the system, when mediocre or totally unsuitable candidate are appointed to senior position in the public organization, the seed of inefficiency has started to germinate. One fact which is seldom realize today is that mere paper qualification is not a true test of the merit which the qualification proclaimed in the certificate is supposed to carry. It is not unusual today to find two young graduates holding the same degree qualification, but while
one can write down his thoughts and ideas in logical sequence and correct
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grammar, the other can hardly write one sentence correctly without elementary errors of spelling, grammar and in totally unintelligible prose. Yet, they both hold the same degree qualification. This is why it is frightfully important that the processes of recruitment or appointment should be an instrument for the promotion of o f efficiency in the public organization.
Faculty and Frequency Postings
A man’s capability can be best demonstrated in field most familiar to him by training and experience. When you put a man on a job for which he has no previous experience or background training, then it is asking too much expect him to be master of that job immediately. The situation becomes most exasperating and self-defecting when w hen you keep shifting such a man from job to job, each one hardly related to the previous one. The situation described above is all too common in the Nigerian civil service. The question of frequent postings, again usually argued on the ground of exigencies of service can be detrimental to efficiency. No one who is constantly on the move and never able to find his fact, let alone master the subject matter of his schedule of work, can be expected to offer useful advice or assist in the formulation of policy.
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Inadequate Training
Admittedly, much progress has been made in various public organizations towards training and staff development during the past decades, and particularly since the introduction of a result-oriented approach to public service. Attention appears to be focused on senior management training to relative neglect of the numerous other cadres in the public organizations.
Deterioration of Health
Perhaps because of domestic commitments and responsibilities, most Nigerian public organization managers whose health has deteriorated to the point of o f permanent impairment of efficiency, never learn to retire gracefully from public office, they hold on and drag themselves to work, painfully labouring with their official assignment by day, and collapsing on their back after office hours. Mental concentration on work is difficult for a man afflicted with a physical ailment, difficult aggrieved by the psychological fear of the possible outcome of the illness. The General orders contain adequate provision for dealing with official whose efficiency had run low as dealing of ill-health, such official are required to be sent before a medical board and if tthe he boar board d finds that such officials ca can n no longer operate with a
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degree of competence compatible with efficiency in the public organization, they are to be removed from public service. In practice,, however this provision in the general orders is hardly ever utilized, the fault is that of Nigerian socio-cultural behaviour. The department boss who should initiate action is reluctant to do so because of the fear that he has taken the bread one of the month of a fellow Nigerian. Even where the departmental boss summons up courage to refer the case to the medical board, the officer concerned will set in motion such numerous channels of pressure and lobby that the medical board is most likely to decide in his favour. Whether it is the department boss or the medical board that develops cold feet, the result is still the same; the official continues in office and with detrimental effect to the efficiency of public organization.
Incompetent Superior
It sometimes happens that by some fluke or deficiency in the system, some incompetent officials climb to a high point of seniority, at which they have to direct and supervise the work of junior officials, such officials may have shown some promise in their earlier years but somehow they have risen to achieve final placement at their level of incompetence when such officials have to direct and supervise the work of junior officials, they infect the
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juniors with their t heir incompetence. In this particular instance the senior official had made no worthwhile contribution to advance the progress of the matter under consideration. And he had kept doing was picking faults at the various efforts made by the junior to solve the problem. A senior official who is worth his salt will after going through the submission from his junior, put up his own submissions, referring to and making use of the contribution from his junior where appropriate and giving his own views and recommendations in the light of his experience and knowledge at a higher plane in the department. His own submission will then go up to the permanent secretary who will take whatever action he deems best. When the file returns to the senior official, a good practice is for him to send it to his junior official so that the junior can see the improvement made by the senior on the junior official’s submission. This is where the junior learns by comparing his work with the much superior prudent of the senior. A junior official head for the road to stagnation and inefficiency when he had nothing to learn or gain from his superior, when there are quite a number of junior officials in this predicament and there is no means of removing the obstacle before them quickly, then the seed of inefficiency have been undoubtedly sown into the system.
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Lack of Clear Objectives
One great malady which afflicts most of the work in the public organisation is the complete absence of goals of objectives forming targets for public managers to pursue. A public manager placed on a schedule of work or assigned to take charge of some specific department or organ of government, believes that his main role is to attend to any work coming into the tray on his table. As he comes in every morning and sits at hi hiss desk, he glances at the in-tray and commences, one after the other, to attend to the letters and other papers placed in files in the tray. These papers deal with more or less routines matters – requests for information, applications for the approval of one thing or the other, preparatory work for some routine meeting or the visit of some celebrity. Occasionally the placed routine is broken by an order from above for the preparation of a memorandum on some subject or by the issue of a query on certain development in such occasion, there is some stir in department the official summoning his subordinates and everyone rushing to an from. Between the month of October and February attention is largely concentrated on the preparation of the budget. The exercise is not approached with a sense of a programme of achievement in relation to an objective, but largely as an annual routine
exercise.
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False Declaration of Age
There is another allied cause of deterioration of efficiency in the Nigerian public organization. o rganization. This is the chronic habit of false declaration of age by some public managers. It is remarkable how out of every ten public officers in Nigerian public organizations, it is difficult to find fun of them who declared their true age on joining the public service. This perhaps, is another factor of socio-economic culture in Nigeria. The average Nigerian wants to stay as long as possible in the public service in order to insure himself against want and penury in his advancing years. If he declares his true age, he finds that some of his children are still at school by the time he reached the age of retirement. There may also be the children of an uncle or some other elation falling to him to train. Added to these are other innumerable personal and domestic commitments. Faced with these distant but highly
foreboding problems, a good many Nigerian public officers
reduce their age by as much as five to ten years, whatever efforts such official might make to deceive the world. The truth is that no one can chest nature. But then such officials are often placed on assignments befitting their declared age. The result is that having to cope with the physical strain and demand of a job meant for someone ten tears younger. They crack under the
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strain and become a physical wreck. Efficiency of course becomes seriously impaired.
Attitude False Reporting
This is a phenomenon commonly found when the public managers in Nigeria used tthe he syste system m of confidential reporting. Some senior officials and heads of department have been known to write untrue confidential reports on their subordinates, giving to such subordinates merits and virtues that they did not posses. The possible reasons for this situation is. A reporting officer who has himself been guilty of conduct unbelieving of an official in his position and who known that a certain subordinate official is aware of the conduct, becomes afraid to write an adverse reporting on the subordinate, lest he should turn round and appeal against the report and bring to light the reporting officer’s own misdemeanor.
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CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATION
5.1
Summary
The performance of public enterprises in Nigeria has become a subject of national debate and hence a matter of crucial policy agenda of the government of this country for the past two decades. This is why many investigative and administrative study groups, commissions, committees, and bureaux have been set up to resolve the problem of poor performance of these enterprises. Moreover, the manner of the implementation of the privatization and commercialization policy of these enterprises has, more than ever before brought this agenda to the fore. There have been serious allegation of frauds, unethical deals, and lack of public accountability surrounding the disposal of some of these public enterprises to the extent that members of the Nigerian senate committee on privatization have expressed concern on the matter. This unsatisfactory state of affairs on such a matter that touches on the welfare and economic well-being of every Nigerian cannot but attract serious research attention and study activity of scholars in the areas of economic, politics and policy matters.
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On the other hand, the study noted that management is a cross-curtain concept that transcend in all facet of human endeavour. Thus, management is seen as an activity as well as a process of getting things done in an organization
through
people
by
planning,
organizing,
coordination,
controlling, supervising and directing. This presupposes that management is geared towards achieving goals and objectives of organizations. Various intervening variables tend to impinge on the efficient management of public enterprises in Nigeria. Some of these problems are, conflicting objectives, poor
management
board,
unstable
management
board,
general
incompetence, government interference, corruption and monopoly to mention but a few. 5.2
Conclusion
The performance of public enterprises in Nigeria including that of NTA, Awka has been regrettable inspite o off hu huge ge ssum um o off money invested o on n them. However, without an attempt to checkmate these management problems of public enterprises in Nigeria which include poor and unstable management board, incompetence, excessive government interference and control, conflicting objective, corruption and monopoly, achievement of efficiency, profitability and socio-economic growth and development in the
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country will be unwillingly dwelling in utopia. The current predicament of public enterprises the world over, notwithstanding, an active public sector presence is desirable des irable so as to counterba counterbalance lance the excesses and contradictions of the ubiquitous private sector.
5.3
Recommendation
On the strength of the observations and findings made in this study the following recommendations have been made. i.
Effective training and development programme should be inculcated by the t he management of o f NTA, Awka. The es essence sence of training is to equip staff with necessary skills and techniques needed for the particular job in the organization. In the case of change in technology and innovations, an employee needs to be educated and trained in relevant job. This significantly will help to boost eefficiency fficiency and effectiveness o off the company and ensure full capacity utilization.
ii.
Since it is agreed that motivation induces employee to give their best, proper motivation cannot be de-emphasize in NTA, Awka. This could take the form of promotion, increasing the salaries of employees, allowing their initiative in some policy issues and remunerating them
adequately so that their social obligation and responsibilities are
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attained with good working condition, employees of NTA, Awka no doubt will increase their elasticity to achieving desired result.
iii.
Under government interference, there is a policy which will aim at making management board independent and autonomy in issues relating to employment and decision making. With this attempt, excessive politicization will be checked thereby creating a competing ground for skilled and qualified personnel to discharge their duties without fear and favour. In addition, regulating government interference through policy initiation will contribute positively to the performance of the organization.
iv.
Conflicting objective is a very critical aspect of the problems. This is because depriving enterprises their original role of social provisioning will be to the detriment of the masses as exploitation will set in to reconcile this two Opposing variables. There should be an equilibrium between the loose and profit p rofit accruing to tthe he masses and the government go vernment respectively. With this situation in government owned companies which NTA, Awka is one, each side will break down supposedly, the masses should not wait to be completely provided for rather, it should be a joint
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effort in which payment will be made for such social goods and services.
v.
Also in bureaucratic corruption, government should see corruption as a deadly cancer that has eaten deep into the fabric of our economy and social life. This phenomenon has posed a serious set-back to the achievement of the much desired socio-economic growth and development in Nigeria. On this note, an effective correctional measure should be ensured in the polity. Similarly any action of corrupt practice among employees should be accompanied with a heavy sanction. For example, such unethical issues as late coming, laissez fair attitude and unwillingness to work attract punishment.
There are other strategies for improving public sector performance 1. Total Quality Management
Total Quality Management (TQM) is a management technique that emphasizes high-quality service (performance oriented civil service) and customer satisfied (customer driven government) TQM entails the constant improvement of product or services quality and reliability, combined with shorter and more reliable response times through the production and sales
chain or services-provision process. It also involves increasing flexibility of
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response to customers requirements and a constant concern about efficiency through waste elimination, the removal of duplication of efforts and curtailing overlaps of roles and responsibilities.
2. Capacity Building
The globalization of the world economy and the demand from client citizens call for a new form of civil service and new procedures whereby the quality of service offered by public administration are essentially put under the same scrutiny as service provide by the private sector. To respond to these requirements, the civil service should be provided with adequate material, human and financial resources.
African government should now emphasize investment in developing human capital towards effective policy formulation, analysis, implication and evaluation. Trained and highly developed personnel, complemented by political will and commitment, have become basic inputs into the realization of the public sector reform agenda in Africa.
A competency-based approach to the training and development of public servants is recommended and to train public servants as better managers in widely recognized as an essential element of any public service reform programme.
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Schools and universities curricula should include civic education geared towards the transformation of mentalities and instilling a business culture into citizens and public servants in particular.
3. Decentralization
Decentralization of responsibilities in its various forms is advocated as a mean of achieving public sector effectiveness and ensuring that public administration are more responsive to citizens needs. Decentralization improves the quality of decision making through better information flows and participation of all stakeholders at the local level. In order to strength the capacity of decentralized agencies, substantive measure include:
Delegation of authority in respect of finance and personnel management to managers at lower levels within the framework of broad guidelines from the centre to strength field administration and laterally from policy making units to implementing organs.
Mechanism for full participation of the private sector and CSOS in public policy formulation and decision-making should be established in order to improve local democracy, accountability, efficiency equity, effectiveness and sustainability in the provision of social services
country wide.
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4. Ethics and Accountability
These can be enhanced by:
Fostering and promoting conditions of service that enhance professional and ethical standards.
Advancing and affirming sound policies on recruitment, training and public personnel management.
Creating, strengthening and upholding the integrity and effectiveness of public institution of accountability.
Enacting, improving and effectively enforcing legal instruments, code of conduct and regulations that promote ethics and accountability.
Establishing coalition of business association and civil society to expose and combat corruption.
The systematic and impartial prosecution of violators. Fostering popular participation to ensure the responsiveness, accountability and transparency of governance.
5. Information and Communication Technologies (ICT)
It is well understood and acknowledged that application of the new public management tools cannot be possible without the information and communication technologies. Indeed, the information should flow freely and
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timely from one institution to another and within institutions in order to be treated and analyzed for policy formulation and decision-making at all levels of management. To this effect and given that Africa is lagging behind other continents, the following measures are recommended.
African countries should commit themselves individually and collectively to creating and enabling environment for the development of ICTs, including broadcasting at government, private sector, civil society organization and international levels.
Government should eliminate import tariff on ICT related equipment and services, and identify mechanism to encourage national and subregional manufactured of suitable ICT equipment.
6. Enhancing Local Financial Management
The establishment of tools that will help to develop the financial management of the local authorities is a key element, as are analytical tools to backstop appropriate appraisal. Sound management and transparency in local financial system should also be encouraged.
Establishing a civil service and the training of municipal tax collectors should become a priority. This must be centred on local accounting,
local budgeting, financial analysis and local tax system; and
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It is recommended to establish a regional institution of credits to local authorities that will serve as interface between financial markets and local authorities.
7. Partnership with CSOS and the Private Sector
The involvement of the private sector and civil society organizations (SCOs and NGOs, etc) in public sector management is now recognized worldwide. African government should improve their relationship with these organizations, and use them as partners in development rather than adversaries.
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NEWS PAPERS
Ogundipe, V. (1986) “The Inevitability of Privatization” the Guardian: January 7. Lagos, p.7. Okigbo, P. (1998) “A Layman’s Guide to Privatization ” The Guardian, August 19.
INTERNET MATERIALS
Economic Commission for Africa (2004) Public Sector Management http://www.uneca.org.. Reforms in Africa. Addis Ababa, Ethiopia. http://www.uneca.org Wu, Y. (2004) Rethinking the Taiwanese Development state the china Quarterly 177 .
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