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.
ThLlS1 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 (MBO),
Total Quality Management (TQM).etc, were recommended as techniques capable of
improving management practices in public enterprises.
of the study
of the problem
of the Study
of the Hypotheses
of the Study
1.7 Scope of
of the Study.
CHAPTER TWO: LITERATURE REVIEW
between management and Administration
as a process
of Public Enterprises
2.1.5 Features of Public Enterprises
2.1.6 Types of Public Enterprises
2.1.7 Arguments for and against Public Enterprises
2.1.8 Nature and management of Public Enterprises in Nigeria
Problems of Public Enterprises in Nigeria
2.2 Management Reforms of Public Enterprises
The Privatization and Commercialization programme
2.3 Problems of the management reforms of Public Enterprises
2.4 Historical Background of the case study
2.5 Theoretical Framework
of Research Question and Hypotheses
3.2 Research Design
3.3 Population of the Study
3.4 Sample and Sampling Techniques
of Data Collection Instrument
of Data Analysis
PRESENTATION ANALYSIS AND INTERPRETATION
4. 1 Respondent's
Characteristics and Classification
and Analysis of Data Accor ding to Research Questions.
and Analysis of Data According to Research Hypothesis.
CHAPTER FIVE: \
FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of
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.
1.1 BACKGROUND OF THE STUDY
As the human brain is important to the body and as it
co-ordinate every thought and action of the body, so also is the management to
an organization which equal performs similar functions using organizational
In every organization, the four major functions of
management are planning, organizing, motivating and controlling. The management
plans the direction for the organization to be able to achieve a set goals.
After planning, resources are arranged within the organization's structure, and
then the management put in every mechanism to motivate the people in the (organization
to put in their best to ensure maximum success to the functional objective of
Be it a large or
small organization, or a public or private organization, the function of
management is importal1t in getting things done by others. Without management,
both human and material resources of an 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 (1888-1933),
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 Otokiti, 2000}"
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 modem 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, 2004).
The importance of management in any organization cannot
be over emphasized, if an organization
performs weft, the management takes the credit
but if it performs poorly, the
management takes the blame.
1.2 STATEMENT 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 non-performance, they were very
It 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 OJECTIVES OF THE STUDY
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:
1. To determine the extent to which management
reforms have improved on the financial status of public enterprises.
2. To access the impact of management
reforms on motivation of workers in public sector enterprises.
3. To analyze the relationship between
management reforms and workers’ productivity in public enterprises.
4. 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:
1. What is the effect of management reforms
on public enterprises performance?
2. To what extent has management reforms
improved the financial status of public enterprises in Nigeria?
3. What is the impact of management reforms
on motivation of workers in public sector enterprises in Nigeria?
4. What is the relationship between management
reforms and workers productivity in public enterprises?
5. To what extent do external factors affect management reforms of public
1.5 STATEMENT OF RESEARCH HYPOTHESES
The following are the research hypotheses of this study:
Null hypothesis (Ho):
management reforms have no effect on public enterprises performance.
Alternative hypothesis (H1): management reforms have positive effect on public enterprise.
Null hypothesis (H0):
management reforms have not improved on the financial status of public
enterprises. Alternative hypothesis (H1): management reforms have improved on
the financial status of public enterprises.
Null hypothesis (H0):
there is no impact of management reforms on motivation of workers in public
sector enterprises. Alternative hypothesis (H1): there is positive impact of
·management reforms on motivation of workers in public sector enterprises.
Null hypothesis (H0):
there is no relationship between management reforms and workers’ productivity
in public enterprises. Alternative hypothesis (H1): there is positive
relationship between management reforms and workers’ productivity in public
Null hypothesis (H0):
external factors have lesser effect on management reforms of public
enterprises. Alternative hypothesis (H1): external
factors have greater effect on management reforms of public enterprises.
1.6 SCOPE OF THE STUDY
As earlier stated, this study examines the effect of
management reforms on the performance of public enter prices in Nigeria. The
case study is the Power Holding Company of
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
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
now called PHCN.
1.7 SIGNIFICANCE 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
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
1.2 DEFINITION OF TERMS
The following are the terms and their meaning:
1. COMMERCIALIZATION: This is a situation in which government removes
subsidies from public enterprises so that they become self-financing.
This is the ability of an individual, group or organization to achieve the
right goals with the right resources at the rig tit time.
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.
This is the function in an organization
which is involved with planning, organizing motivating and controlling organizational
resources to achieve set objectives.
This refers to the actualization of set goals and objectives of an
This is the transfer of ownership control and management of enterprises from
the government to private investors.
ENTERPRISES: These are enterprises
established owned controlled by the government to engaged in provision of goods
and services at affordable rates.
These are changes that are introduced into a system or organization so as to
make it function properly.
FINANCING: This is the ability of a person, an organization, etc to be able
to finance their activities by themselves.
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 to be used in 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