ABSTRACT
Management is essential to the continued operation of an organization, be it small, large, manufacturing, distribution or service like the poultry business at a profit. This work evaluates the effect of application of management functions in the performance of poultry organizations in Umuahia, Abia State as a broad objective with other specific objectives- to determine the roles played by management functions in the operations of poultry businesses in poultry organizations in Umuahia, Abia State; to investigate the operational efficiency of management on the performance of poultry organizations in Umuahia, Abia State; to examine the importance of managerial functions on the performance of poultry organizations in Umuahia, Abia State and to study the contributions of poultry organizations in Umuahia to the growth of the economy of Abia State. Five research questions were posed and five hypotheses formulated in line with the objectives of the study. The research design adopted for this study was the survey and descriptive research design. Data was drawn from both primary and secondary sources. The primary data was collected directly from the field through interview schedule and distribution of questionnaire to the poultry owners while secondary data were obtained through Textbooks, Journals, the internet and other valuable hard copy materials like mimeograph. The population of the study consisted of all the poultry farms in Umuahia, Abia State which is thirty (30) in number. The total number of employees in the above poultry farms is about four hundred and twenty (420). The Sample size was determined using the Taro Yamane formula and a sample of 205 was obtained. The instruments for data collected were validated using content validity while the reliability of the instrument was done through the cronbach alpha (α). All the Data were analyzed using SPSS 20 software package while Correlation and Chi-square tests were used to test all the hypotheses. Hypothesis one shows a correlation value of 0.084. Hypothesis two shows a calculated Chi-square value (χ2) of 398.419Hypothesis three indicated a correlation value of 0.077. Hypothesis four shows a correlation value of 0.060 while hypothesis five shows a correlation value of 0.954. The above results led to the recommendations that the application of management functions has a significant effect on the performance of poultry farm organizations; the role played by management functions has significant impact in the operations of poultry businesses in poultry farms in Umuahia, Abia State, among others.
Keywords: Management functions, Performance, Poultry organizations.
TABLE OF CONTENTS
Title
page i
Certification ii
Declaration iii
Dedication iv
Acknowledgements v
Table
of contents vii
List
of tables xi
List
of figures xii
Abstract xiii
CHAPTER ONE
INTRODUCTION 1
1.1 Background of
the Study 1
1.2 Statement of
the Problem 3
1.3 Objectives of
the Study 6
1.4 Research
Questions 6
1.5 Research Hypotheses 7
1.6 Significance
of the Study 7
1.7 Scope of the
Study 8
1.8 Limitations
of the Study 9
1.9 Definition of
Terms 9
CHAPTER TWO
REVIEW OF RELATED
LITERATURE
2.0 Introduction 12
2.1 Conceptual
Framework 12
2.1.1 The Concept
of Management 12
2.1.2 Management
Functions 13
2.1.3 The Concept of Organization 21
2.1.3.1 Types of Organization 22
2.1.3.2 The
Concept of Performance 22
2.1.3.3 Relationship between Managerial functions and Organizational
Performance 24
2.1.4 The effects of the application of managerial
functions in a poultry
organization 25
2.1.5 Brief x-ray of poultry business – The case
of US and UK 27
2.1.5.1 Intensive and Alternative Poultry Farming 27
2.1.5.2 Egg-laying chicken – husbandry systems 28
2.1.5.3
Prospects of Poultry business in Nigeria 28
2.1.5.4 Problems 29
2.1.6 The advantages, importance and contributions
of Poultry farming
organization/business in Nigeria –
The Ota Farm example. 30
2.1.7 Tabular representation on innovative ways of
managing poultry businesses 33
2.1.8 Starting a new business: - Poultry business
referenced 34
2.1.9 Steps in starting the new business (Poultry
business) 35
2.2 Theoretical framework of the Study 39
2.3 Empirical Review 43
2.4 Gap in Literature 49
2.5 Summary
of Literature Review 49
CHAPTER THREE
RESEARCH
METHODOLOGY
3.0 Introduction 53
3.1 Research
Design 53
3.2 Area of Study 53
3.3 Sources of
Data Collection 54
3.3.1 Primary Sources 54
3.3.2 Secondary Sources 54
3.4 Population
of the study 54
3.5 Sample and
Sampling Technique 54
3.6 Sample Size Determination 55
3.7 Method of Data Collection 56
3.8 Description of Research Instrument 56
3.9 Validity of the instrument 56
3.10 Reliability of Instrument 56
3.11 Method of Data analysis 57
CHAPTER FOUR
DATA ANALYSIS
PRESENTATION AND RESULTS
4.1 Return rate 59
4.2 Data Presentation 59
4.2.1 Analysis of
Research questions 62
4.2.2 Analysis of
Research Questions based on Objectives 70
4.3 Test of
Hypotheses 75
4.4 Discussion of
Results 81
CHAPTER FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATIONS
5.1 Summary of
findings 86
5.2 Conclusion 86
5.3 Recommendation 87
5.4 Areas of
Further studies 88
Bibliography
Appendices
LIST OF TABLES
Table Page
1.
Tabular representation on innovative ways of managing poultry business 33
2.
Distribution of Respondents by Gender and Marital status 59
3.
Distribution of Respondents Work Experience 60
4.
Academic Qualifications of Respondents 61
5.
Planning is a necessary step for the takeoff poultry business 62
6.
Control function is as important
as the planning in a poultry organization 63
7.
SWOT analysis is necessary in a poultry organization 63
8.
Poultry business is profitable like any other business 64
9.
Lack of the coordination function can affect the effectiveness of a
poultry 65
10.
Feasibility study tool 65
11.
Funds allocation 66
12.
Skills and knowledge of managing a poultry business 67
13.
Greater Awareness table 68
14.
Compass table 68
15.
Poverty alleviation table 69
16.
Poultry business require fund like other business 70
17.
Managerial function table 71
18. Operational efficiency of management
table 72
LIST OF FIGURES
Figures Page
1.
Sex distribution 59
2.
Marital status of respondents 59
3.
Work Experience of Respondents 61
4.
Academic Qualifications of Respondents 61
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Good
management weaves together the various parts of the organization so that all
factors function as a united body (Musselman and Hughes, 1981). Management is
essential to the continued operation of an organization, be it small, large,
manufacturing, distribution or service oriented like the poultry business at a
profit. Organizations without managers will lead to waste of effort. The reason
is that managers coordinate the activities of people and other resources. Thus,
effective management leads to purposeful, coordinated goal-directed
activity.
The
poultry business which is the emphasis of this work cannot be operated by
chance. Some who engaged in the poultry business do it as a part time business
and so do not apply serious measures or managerial principles in its
operations. It is pertinent to state that the management of poultry businesses
requires mental effort to keep them going profitability just like other
businesses.
Poultry is a term addressing wide variety
of domestic birds such as chickens, ducks, geese, turkeys, guinea fowls and
ostriches.
Poultry keeping is a lucrative business
venture and it requires little investment to start. Its benefits abound; Poultry
droppings is an excellent organic manure for enriching vegetable gardens; while
crop residues are in turn fed to poultry. (Banereje, 2005). Such a symbiotic
farming operation enhances efficiency of farm resources to increase outputs.
Thus, Ezeibe (2010) reported that poultry production is a very important arm of
the livestock sector as poultry has high feed conversion rate, high fecundity
and contributes high to economic gains of the operators in Nigeria. He stressed
further that poultry production enjoys high interest among livestock production
and the meat has high demand in Nigerian markets because of its nutritional
content. But Mohammad and Fatholah, (2011) reported that the demand and supply
of poultry products is very high to provide the least needed animal protein of
36g per person in a day. This report is in keeping with the general observation
of inefficiency in poultry enterprises heading to low productivity. This calls
for analysis of the managerial skills of the operators to properly define the
skills possessed and utilized for production.
In the words of
Hornby (2010) evaluation means investigation, examination, enquiring or
revering something. It is the study or examination of the skills possessed and
utilized by farm operators, for poultry production. Reviewing of the skills and
their extent of utilization by poultry operators is vital. (Operators in this study are managers who use
various skill areas to run poultry businesses). That is, for poultry managers
to act with maximum efficiency to reach an end, they need one set of management
skills. A skill is an ability to do something expertly well (Egbe, 2005). In
this study, skills are the abilities of poultry operators to correctly take
decisions and set goals of the enterprise, mobilize and utilize resources,
utilize technical skills in poultry business venture, manage risks and make
poultry farm manager take informed decisions and work toward maximizing
profits. These are the consonants with the views of Arena (1998) that farm
managers require marketing, financing
and accounting skills in order to choose the best time to sell their
products, record sales and estimate profits of the farm. Onuka and Olaiton
(2007) added that poultry producers need skills for daily inspection and
sanitary of the farm, proper feeding management of resources like feeds and
keeping records of farm activities. But the extent the poultry operators
possess and use these skills in the study area has not been defined.
The people of Umuahia have great value for
poultry, as it is highly required during marriages, burial rites, feast and
festivals. Unfortunately, poultry productions, in most cases are left to small
scale native farmers who find it difficult to apply high level management
skills. Economic studies indicate that most farmers find it difficult to maximize
profit because of risks and challenges. It is in recognising this that this
study is made to identify the management functions possessed by the operators
and the extent of utilizing them for managing poultry enterprises, with a view
to enhance production activities and output.
1.2 STATEMENT
OF THE PROBLEM
There
are many problems that are encountered by small business owners throughout the
course of managing their businesses. All entrepreneurs including those in the
poultry farming must be prepared for solving problems that come their way.
However, creating a start-up is not an easy task, Agu (2001).
New
entrepreneurs including poultry farmers are not usually prepared for the
problems coming their way. The first thing to do is to understand that problems
are an everyday part of every business and then` face each problem with
determination and a proper solution. Akanwa and Agu (2005) opine that these
varied and many problems make it difficult for some of the businesses to
survive, expand or grow. Lack of fund is a serious problem militating against
the establishment and running of small scale businesses, which poultry farming
is among. In most cases, the individual has to raise the money either from his
savings or from relatives or borrowing from friends and or financial
institutions. In addition, Madu, Francis, Agu and Kanu (2000) assert that lack
of data for planning is among the problems faced by small business operators
including poultry farmers. Data banks where prospective investors can find information
does not exist. There are little or no documentation on the experiences,
prospects and problems of older organizations and this makes the whole picture
to appear very hazy for a potential entrant. There is also the inability to
keep adequate records. It has been observed that many businesses, including
poultry organizations fail in Nigeria because of lack of adequate records of
their operations. Accounting records have been known to offer major assistance
to enable one determine the performance of his or her business. Unfortunately,
not many businessmen take effective business record keeping very serious
(Akanwa and Agu, 2005). In addition, the inability to separate business
accounts from personal accounts is also a big problem for small business
operators. The owners of small businesses seldom separate the business accounts
from their personal accounts with the result that the business is not treated
like a separate entity from the owner. Sometimes, the owner withdraws money or
goods from the business without proper record. Agu (2001) postulates that there
is also the unwillingness to accept advice from experts as part of the problem.
Most business owners including poultry operators think that it is a simple
business that needs no expertise and so assume that they know enough to run
their businesses.
Furthermore,
lack of infrastructural facilities, such as water, communication facilities,
power supply and banking services are also problems facing the poultry farmers
especially in the rural areas, and where these facilities are available, they
are irregularly and inadequately supplied. In addition, there is the challenge
of high interest rates on borrowed funds. Most entrepreneurs do not have access
to credit facilities from banks and where they have access they may not have
securities to attract the needed fund. Others that are opportune are faced with
the challenge of high interest rate and therefore find it difficult to repay
the interest not to talk of the capital. Even so, most financial institutions
are unwilling to lend to small businesses. Because of this high lending rate,
many people with viable business ideas, including poultry farming shy away from
going to ask for bank loans. Madu, Francis, Agu and Kanu (2000) assert that
lack of effective policies is also among the challenges of small businesses.
Though the government has taken some positive steps to encourage the growth and
development of small businesses in Nigeria, a lot more still needs to be done.
This is mainly in the area of policy implementation as most of the loans meant
for small businesses are diverted by the agents and banks that issue them.
Other challenges include lack of time for the business, as many do it as part
time business and with every level of non-challency or indifference, Lack of
skills and knowledge are also part of the challenges faced by small business
operators. Others can be seen as poor marketing plan, which hinder small
businesses from marketing their products profitably. Madu, Francis, Agu and
Kanu (2000) observe that lack of managerial expertise is among the challenges.
Most business proprietors still do not consider management training and
managerial functions essential for success in their businesses, with the result
that even when brilliant business ideas are initiated, they are poorly
implemented. This leads to lack of direction and planning for the business.
This poor management ability which is the main crux of this work has led to
this research on how the application of the managerial functions can affect
small businesses with poultry farming as a study case.
1.3 OBJECTIVES
OF THE STUDY
The
broad objective of this study is application of management functions in the
performance of selected poultry farms in Umuahia, Abia State
The
specific objectives are to:
i.
determine the effect of planning on the profitability of
poultry farms in Umuahia
ii.
determine the effect of organizing on profitability of
poultry farms in Umuahia
iii.
determine the relationship between budgeting and
profitability of poultry farms in Umuahia
iv.
determine the effect
of directing on profitability of poultry farms in Umuahia
v.
determine the relationship between control and profitability
of poultry farms in Umuahia
1.4 RESEARCH
QUESTIONS
The
following research questions were stated to guide the study:
i.
What are the effect of planning on the profitability of the of
poultry farms in Umuahia?
ii.
What is the effect of organizing on profitability of poultry
farms in Umuahia?
iii.
What is the relationship between budgeting and profitability
of poultry farms in Umuahia?
iv.
What is the effect of directing on profitability of poultry
farms in Umuahia?
v.
What is the relationship between control and profitability
of poultry farms in Umuahia?
1.5 RESEARCH
HYPOTHESES
The following null hypotheses were
formulated to guide the study
Ho1: Planning has no significant effect on the
profitability of the poultry farms in Umuahia.
Ho2: Organizing has no significant effect on profitability
of poultry farms in Umuahia
Ho3:
Budgeting has no significant
relationship with profitability of poultry farms in Umuahia
Ho4: Directing has no significant effect on profitability
of poultry farms in Umuahia.
Ho5 Controlling has no significant
relationship with profitability of poultry farms in Umuahia.
1.6 SIGNIFICANCE
OF THE STUDY
This
study will be of value to management scholars and practitioners, the management
of poultry organizations in Umuahia, Abia State as well as other poultry
organizations in other states and those who are interested in the business but
have fears and doubts as to the profitability of the business. It will be
greatly appreciated by higher institutions who offer poultry management as a
course of study and have poultry farms like MOUAU. The government will benefit
since the spirit of entrepreneurship is needed to be inculcated to the
unemployed who are busy looking for white collar jobs, not knowing that poultry
business can be good business. The
consumers of poultry products will appreciate this work since they now know that
what they consume – like the eggs, and chicken, etc are handled in a
professional way. Moreso, the result of this study will add to the existing
store of knowledge on the subject as well as serve as a channel for further
research on innovative and professional ways of handling poultry businesses
through the application of managerial functions for the overall economic
well-being of the state and nation at large. In addition, this study will be
very important to other researchers who are interested in the area. That is to
say that, the product of this study will serve as a base for academicians who
might want to conduct further studies on the management of poultry businesses.
This study will provide vital information
to investors, serve as a guide to farmers as well as reveal important hints on ways
of averting risks challenges in poultry business. It will also improve poultry
industry and motivate more people into it.
1.7 SCOPE
OF THE STUDY
This
study is on the effect of the application of management functions on the
performance of poultry organizations in Umuahia, Abia State. The choice of
poultry organization stems from the fact that the researcher has a background
and an interest in Agric-Business and would also appreciate it if many people
in Abia State can venture into this often-neglected area which has a lot of
profit attached to it. He understood the fact that a country like Sieme has it
as one of its major products and Nigerians travel there to import even when we
have all the where-withal to efficiently and effectively engage in the venture
which can help in boosting the Gross Domestic Product (GDP) of our country.
In
addition, the study focused only on poultry business because it is often a
neglected area and those who are doing it are doing it with every level of
unprofessionalism and lack of seriousness. The study involved management
functions due to the important and crucial roles they play in the performance,
productivity and profitability of organizations in achieving their organizational
goals and objectives. This study, in addition to studying management functions
also covers other management variables like planning, organizing, directing,
controlling and budgeting. It also covers performance variables like
profitability. However, the study limits
its coverage on poultry farms and excludes areas like horticulture, duck
farming, cheese and geese, piggery, cattle rearing and seed farming.
1.8 LIMITATIONS
OF THE STUDY
No
research venture has ever been an easy road. Constraints often set in to
interrupt the researcher’s ability to see to the successful end of the work.
Such limitations range from lack of complete and accurate information on the
part of the selected poultry managers since they do not keep good record of
their poultry businesses. Moreso, the researcher was mitigated by time and
distances to the selected poultry farms. The researcher was also laden with the
burden of reading for the examination and other school activities which also
limited the time used for the thesis. However, to mitigate the constraints the
researcher applied a little principle of time management which was valuable to
overcome the challenges in order to see that this research work became
successful and a reality. Lack of secondary data also constituted a constraint
to the study. However inspite of all the these, the researcher is convinced and
justified that this work is of quality and will justifies the time spent.
1.9 DEFINITION
OF TERMS
Planning: planning is a management process
concerned with defining goals for a company’s future direction and determine
the missions and resources to achieve those targets. Planning consists
essentially of deciding in advance what you want to do and how you are going to
do it. It is the application of rational and systematic analysis to the process
of development with the aim of making and becoming more effective and efficient
in responding to the needs and goals of the society (Ukeje and Akanwa, 2000).
Organizing: This is the assigning of tasks to
individual employees in the farm so as to ease division of labour. Organizing
function is one of the managerial functions. it observes that a major benefit
of organizing for the entrepreneur is that it enables him or her to crystallize
his/her thinking beforehand on what work should be done in the business. Once
an enterprise has been established, organizing function is required to ensure
that there is no confusion on the responsibilities and authority of each
member. (Agu, 2001).
Directing: This involves guiding and assisting
people in the way necessary to achieve the goals of the organization. It means
guiding the behavior of workers in the required direction (Agu, 2001).
Directing function is necessary in management to enable employees carry out
operations and activities as expected of them, particularly in non-routine
jobs. Agu (2001) further opines that directing function is accomplished using
communication, leadership, delegation, motivation, training and influence. It
is one thing to get employees to commit their energy towards organizational
activities,
Budgeting: budgeting in its general sense is
the act of quantifying objectives in the financial terms, it assists the farm
manager in decision making process. This is the process of setting up financial
plan of the poultry enterprise so as to ensure proper allocation of resources.
Control: Control as a management function
is defined as a systematic effort by business management to compare performance
to predertermined standards, plans or objectives in order to determine whether
performance is in line with these standards and presumably in order to take any
remedial action required.it is a method for managing performance in the poultry
farm.
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