Public enterprises in Nigeria Have not lived up to
expectations. Rather, their existences have been counterproductive to the very
reason they were established. They have been regarded as inefficient,
ineffective and unproductive among the numerous factors affecting public
enterprises in Nigeria, this study specifically singled out management as the
major problem. Thus, this study examines the management related issues of
public enterprises in Nigeria. It was discovered in this study that some
negative management practices as well as undue government interference have
been detrimental to the performance of public enterprises. Hence, Privatization
and commercialization were recommended as the way out for the underperforming
public enterprises. Also, it was recommended that more policies were needed to
wither down excessive government control over the public enterprises.
Furthermore, some Management techniques such as Management by Objective, Total
Quality Management (TQM).etc, were recommended as techniques capable of
improving management practices in public enterprises.
TABLE OF CONTENTS
Table of Contents
Table of Tables
CHAPTER ONE: INTRODUCTION
1.1 Background of the study
1.2 Statement of the problem
1.3 Objectives of the
1.4 Research Questions
1.5 Statement of the Hypotheses
1.6 Scope of the Study
1.7 Significant of the Study
1.8 Definition of Terms
1.9 Organization of the Study
CHAPTER TWO: LITERATURE REVIEW
2.1 Conceptual Framework
2.2 Management reforms of public
enterprises in Nigeria: the privatization and commercialization programme.
2.3 Problems of the management
reforms of Public Enterprises in Nigeria
2.4 Historical Background of the
2.5 Theoretical Framework
CHAPTER THREE: METHODOLOGY
3.1 Restatement of research question and
3.2 Research design
3.3 Population of the study
3.4 Sample and sampling techniques
3.5 Data collection instrument
3.6 Administration of data collection
3.7 Procedure of data analysis
3.8 Limitation of methodology
CHAPTER FOUR: DATA PRESENTATION ANALYSIS AND
4.1 Respondent’s characteristics
4.2 Presentation and analysis of
data according to research questions
4.3 Presentation and analysis of
data according to research hypothesis
4.4 Discussion of findings
CHAPTER FIVE: Summary of Findings, Conclusion and
5.1 Summary of findings
5.3 Recommendations References
TO THE STUDY
This chapter is the introduction part of this study. The
subject matter is introduced and discussed so as to give an overview of the
study. Also, the objectives, scope and significance of the study are also
examined in this chapter. The research questions and the research hypotheses of
this study are stated in this chapter. And some commonly used terms would be
defined in this chapter.
OF THE STUDY
Just as the human brain is important in the body and coordination every thought and action of the body, the management of an
organization performs similar functions using organizational resources.
In every organization, the four major functions of
management are planning organizing, motivating and controlling. The top management
must plan the direction the organization wants to chart in order to achieve set
goals. After planning organizational resources are arranged within the
organizational structure, and then the top management would put in every
mechanism that would motivate the people in the organization to put in their
best effort while making sure that control measures are put in place to make
actual performance meet up with the standard set.
Be it a large or small organization, or a public or private organization,
the function of management is important in getting things done by
other. Without management, both human and material resources of the
organization will be underutilized. Therefore the term "management
"can be seen as a function which involves planning, organizing, motivating
and controlling (Cole, 2004).
Also management as "the art of getting things done
through people" She also described management as philosophy. One can also
think of management functionally, as the action of measuring a quantity on a
regular basis and of adjusting some initial plan; or as the actions taken to
reach one's intended goal. Mary Parker Follett (1868-1933).
Moreso, management can be seen as that central body in an organization which
plans for organizes, motivates and controls organizational resources. It is
simply a group of people called managers. In an organization, there are three
levels of management. Top management middle management and lower management
In the public sector, the function of management is
usually administration and the managers of public enterprises are usually
referred to as administrators. However, in modern times, there is a movement towards
making public enterprises more business-like just as private sector businesses.
This is being referred to as the New Public Management (Ogundele et al, 2(04).
The importance of management in any organization cannot be
over emphasized. If an organization performs well, the management takes
the credit but if it performs poorly the management takes the blame.
OF THE PROBLEM
Public Enterprises in Nigeria have been identified with
poor performance, Fekuru (2000) stated that "Public Enterprises presents a
depressing picture of inefficiency, low productivity, losses, budgeting
burdens, poor products and services"
In the past, government invested huge sums of money into
public enterprises in order to provide
goods and services at affordable rates (Soyibo et al (2001) noted that from
1975 to 1985 over N23 billion was invested in public sector enterprises
with N933.7 million in returns on Investment which is about 0.3% this showed that public enterprises were
nonperformance, they were very inefficient.
was in view of the above mentioned problems
that the government in Nigeria decided to over haul the public enterprises in
Nigeria by introducing management reforms into them.
In reforming the way public enterprises in Nigeria were
managed, the two foremost techniques for improving public enterprises
management were Privatization and Commercialization (Jerome 2002). They were
part of the Structural Adjustment Programme (SAP) introduced in the mid 1980s
by the Nigeria government to ensure better management of the economy.
How far has management reforms improved upon the
performance of Public Enterprises? Were the management reforms successful or
otherwise in Nigeria? What are those factors that affected the implementation of the management reforms
in Nigeria public enterprise?
These are some of the major issues that would be addressed
in this study.
1.3 OBJECTIVES OF
The major objective of this study is to examine the effect
of management reforms on public enterprises performance. Other specific
objectives of this study are:
To determine the extent to which management reforms have
improved on the financial status of public enterprises.
To access the impact of management reforms on motivation
of workers in public sector enterprises.
To analyze the relationship between management reforms and
workers productivity in public enterprises.
To examine the extent to which external factors affect
management reforms of public enterprises.
1.4 RESEARCH QUESTIONS
The following are the research questions of the study:
What is the effect of management reforms on public
To what extent has management reforms improved the
financial status of public enterprises in Nigeria?
What is the impact
of management reforms on motivation of workers in public sector enterprises in
What is the relationship between management reforms and workers
productivity in public enterprises?
To what extent do external factors affect management reforms of public
1.5 STATEMENT OF
The following are the research hypotheses of this study:
Null hypothesis (Ho): management reforms have
no effect on public enterprises performance. Alternative hypothesis (HI):
management reforms have positive effect on public enterprise performance
2. Null hypothesis (HO):
management reforms have not improved on the financial status of public
enterprises. Alternative hypothesis (HI): management reforms have
improved on the financial status of public enterprises.
3. Null hypothesis (HO): there
is no impact of management reforms on motivation of workers in public sector
enterprises. Alternative hypothesis (HI): there is positive impact
of management reforms on motivation of workers in public sector enterprises.
Null hypothesis (HO): there is no relationship
between management reforms and workers productivity in public enterprises.
Alternative hypothesis (HI): there is positive relationship between
management reforms and workers productivity in public enterprises.
Null hypothesis (HO): external factors have
lesser effect on management reforms of public enterprises. Alternative
hypothesis (HI): external factors have greater effect on management
reforms of public enterprises.
1.6 SCOPE OF THE
As earlier stated, this study examines the effect of
management reforms on the performance of public enterprises in Nigeria. The
case study is the Power Holding Company of Nigeria (PHCN).
In the past, government in Nigeria has introduced various
management reforms in public enterprises. For the purpose of this study, the
management reform programmes that would be examined are privatization and
commercialization. Privatization is handing over the total ownership and
management of enterprises from the government to the private sector while
Commercialization is contracting the management of public enterprises to
private sector while the government retains ownership.
The public enterprise which this study focused on is the
public utility enterprises in charge of generation, supply and distribution of
electricity in Nigeria. It was formerly known as National Electrical Power Authority
(NEPA) now called PHCH.
OF THE STUDY
This study is expected to make theoretical and practical
contributions to the academic circle. It will add to the existing body of
knowledge on management of public enterprises. Therefore, it will be profitable
to Scholars" Authors, Writers and Students who are interested in studying
management of public enterprises and how reforming the management, of public
enterprises can improve their performance.
Also, this study will be of great benefit to me the
researcher of this study.
It will bring about an increase in knowledge and
understanding of the various reforms introduced into the management of public
enterprises in Nigeria.
Furthermore, this study-will contribute greatly to policy
makers in our government who are constantly in search of the most effective and
efficient way of managing public enterprises. They will learn a great deal from
this studies analysis of the strengths and weakness of past management reform
policies on public enterprises.
Finally, this study will benefit the nation as whole,
public enterprises were mostly established to deliver goods and services at
affordable prices. Therefore, improvement in their performance would mean
providing quality goods and services, greater productivity and efficiency. This makes management
reforms very essential in improving the performance of public enterprises.
The following are the' terms and their meaning:
Commercialization: This is a situation
in which government removes subsidies from public enterprises so that they
Effectiveness: This is the ability
of an individual group or organization to achieve the right goals with the
right resources at the right time.
Efficiency: This is the ability
of a person group or organization to put in minimum use of resources so as to
achieve maximum result or outcome.
Management: This is the
function in an organization which is involved with planning organizing
motivating and controlling organizational resources to achieve set objectives.
Performance: This refers to the
actualization of set goals and objectives of an organization.
Privatization: This is the
transfer of ownership control and management of enterprises from the government to
Public Enterprises: These are
enterprises established owned controlled by the government to engaged in
provision of goods and services at affordable rates.
Reforms: These are changes
that are introduced into a system or organization so as to make it function
Self Fianancing: This is the ability
of a person, an organization etc. to be able to finance their activities by
Subsidies: these are
government funds allocated to public enterprises at regular basis to make the
meet up with their financial obligations.
OF THE STUDY
This study is divided into five chapters the first chapter
provides and introduction and a general overview of the study the second
chapter examines the conceptual and theoretical framework of the study. The
third chapter discusses the methodology used in data collected, analyzing and
interpreting the data collected in this study. The fourth chapter analyses the
data collected in this study in relation to the research questions and
hypotheses. The fifth chapter provides a quick summary of the findings and
concludes the chapter with some recommendations on the way forward.