EFFECT OF WORKING CAPITAL ON BUSINESS PROFITABILITY(A CASE STUDY OF HOZOPAC NIG. LIMITED. LAGOS)

BEING A PROJECT WORK SUBMITED TO THE DEPARTMENT OF BUSINESS ADMINISTRATION, SCHOOL OF BUSINESS STUDIES, IN PARTIAL FULFILMENT FOR THE AWARD OF HIGHER NATIONAL DIPLOMA (HND) IN BUSINESS ADMINISTRATION.

NOVEMBER 2009

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CERTIFICATION

We hereby certify that this research project was carried out ....................................... for the award of HIGHER NATIONAL DIPLOMA CERTIFICATE. Department of Business Administration,

______________________

____________________ DATE

Project supervisor

_____________________

________________ DATE

Centre co-ordinator

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DEDICATION

This research project is dedicated to the Almighty God for His ever enduring love, kindness, mercy and grace all through the course of this programme. Father, I thank and worship you and give You all the Glory and Honour.

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ACKNOWLEDGEMENT

I hereby which to Acknowledged the following people that has made my dream and purpose in life to come through. First of all, thanks to Almighty God who gave me power and wisdom, and the grace to be educated and to my dear One and Only love that gives me Joy, MR

___________________________________________ and my dear mother Mrs. ___________________________________________ who is an encouragement to my life and my brothers and Sisters ________________ ________________________________________________________________ ___ for their love towards me in prayer, also my supervisor who has been a great help to me. _______________________________________ and my lovely Register of warri center MRS Stella my Oyabugbe and father whose

..

______________________________________________________

Vision for my life was to be great and useful in life and those many love ones too numerous to name. My prayer to God Almighty is that HE should bless you richly in JESUS NAME.

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ABSTRACTThis research work analyzes the effect of working capital management on firm profitability. In accordance with this aim, to consider statistically significant relationships between firm profitability and the components of cash conversion cycle at length, a sample consisting of the company working capital analysis has been included. Empirical findings showed that accounts receivables period, inventory period and leverage affect firm profitability negatively; while growth (in sales) affects firm profitability positively. Decisions relating to working capital and short term financing are referred to as working capital management. These involve managing the relationship between a firm'sshort-term assets

and its

short-term liabilities.

The goal of working capitaloperations

management is to ensure that the firm is able to continue its

and that it has

sufficient cash flow to satisfy both maturing short-term debt and upcoming operational expenses.

In this research work, the researcher will consider in chapter one.the introduction of the study which will in turn considers the following topics. The background of the study, the statement of research problem, the objective of the study, significance of the study, the hypothesis and the structure of the work. Chapter two focuses on the literature review, this chapter is where the researcher extract materials from various books, magazines, news papers and internet resources. In chapter three, the researcher deals on research methods while chapter four is data analysis and presentation. The findings, summary, and conclusion is in chapter five.

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CHAPTER ONE

INTRODUCION

1.1

BACKGROUND OF THE STUDY

The concept of Working Capital includes Current Assets and Current Liabilities. There are two concepts of Working Capital which are Gross and Net Working Capital. 1. Gross Working Capital: Gross Working Capital refers to the firm's investment in Current Assets. Current Assets are the assets, which can be converted into cash within an accounting year or operating cycle. It includes cash, short-term securities, debtors (account receivables or book debts), bills receivables and stock (inventory). 2. Net Working Capital: Net Working Capital refers to the difference between Current Assets and Current Liabilities are those claims of outsiders, which are expected to mature for payment within an accounting year. It includes creditors or accounts payables, bills payables and outstanding expenses. Net Working Capital can be positive or negative. The concept of Gross Working Capital focuses attention on two aspects of Current Assets' management. They are:

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a) Way of optimizing investment in Current Assets. b) Way of financing current assets. a. Optimizing investment in Current Assets: Investment in Current Assets should be just adequate i.e., neither in excess nor deficit because excess investment increases liquidity but reduces profitability as idle investment earns nothing and inadequate amount of working capital can threaten the solvency of the firm because of its inability to meet its obligation. It is taken into consideration that the Working Capital needs of the firm may be fluctuating with changing business activities which may cause excess or shortage of Working Capital frequently and prompt management can control the imbalances. b. Way of financing Current Assets: This aspect points to the need of arranging funds to finance Company Assets. It says whenever a need for working Capital arises; financing arrangement should be made quickly. The financial manager should have the knowledge of sources of the working Capital funds as wheel as investment avenues where idle funds can be temporarily invested.

1.2

STATEMENT OF THE PROBLEM In looking at the effect of working capital on business profitability, some of the questions easily come to mind are:1. 2.

what are root causes of working capital on business? what are the major effects on accounts receivable ?8

3.

what is the nature of relationship between working capital and capital employed?

4.

what steps should be taken to ensure that it effect on the profit of the firm will not be negative?

5. 6. 7.

how can working capital be managed? what make up the working capital cycle? how can debtors be controlled? OBJECTIVE OF THE STUDY

1.3

The main objective of the study is to determine the effect of working capital on business profitability which has to do with................................... Maintenance of working capital at appropriate level, and Availability of ample funds as and when they are needed

To accomplishment of these two objectives, the management has to consider the composition of current assets pool. The working capital position sets the various policies in the business with respect to general operations like purchasing, financing, expansion and dividend etc, The subsidiary Objective of Working Capital Management is to provide adequate support for the smooth functioning of the normal business operations of a company. This Objective can be sub-divided into 2 parts:-

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1. 2.

Liquidity Profitability

1) Liquidity The quantum of Investment in Current Assets has to be made in a manner that it not only meets the needs of the forecasted sales but also provides a built in cushion in the form of safety stocks to meet unforeseen contingencies arising out of factors such as delays in arrival of Raw Material, sudden spurts in demand etc. Consequently, the investment in current assets for a given level of forecasted sales will be higher if the management follows a conservative attitude than when it follows an aggressive attitude. Thus, a company following a conservative approach is subject to a lower degree of risk than the one following an aggressive approach. Further, in the former situation the high amount of Investment in Current Assets imparts greater liquidity to the company than under the latter situation wherein the quantum of investment in Current Asset is less. This aspect exclusively covers the liquidity dimension of Working Capital.

2) Profitability Once we recognize the fact that the total amount of financial resources at the disposal of a company is limited and these can be put to alternative uses, the larger the amount of investment in current assets, the smaller will be the amount available for investment in other profitable avenues at hand with the company. A conservative approach in respect of Investment in Current Assets leaves fewer amounts for other Investments than an aggressive approach does. Further, since the Current Assets

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will be more for a given level of Sales forecast under the conservative approach, the turnover of Current Assets (calculated as ratio of Net Sales to Current Assets) will be less than what they would be under the aggressive approach. Even if we assume the same level of Sales Revenue, operating Profit before Interest and Tax and Net (Operating) fixed assets, the company following a conservative policy will have a low percentage of operating profitability as compared to its counter part following an aggressive approach.

1.4

SIGNIFICANCE OF THE STUDY

This study is significant because it will produce data on the working capital management on firms profitability useful to: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.12.

managers and top executives in organized private sector students carry a research work in this same issue. Bankers that deals with such firms Auditors Accountants Financial analyst Stock exchange dealers The staff of the organization Prospective customers of the firm Creditors of such organization Legal practitioners The stakeholders and management staff

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1.5

LIMITATIONS OF THE STUDY

There was the limitation of the reluctance of the respondents to give answers to survey probes. The Questionnaire method of primary data collection was limited to the verbal responses of subjects to pre-arrange questions. It also had limitation that its usefulness depended on the level of education of the subjects. There was the limitation of the problem of memory in remembering past facts. The structured nature of the questionnaire may compel the respondents to give answers that they do not fully endorse, There was the limitation of the rigidity of the research instrument, which diminishes the amount of information that could be gathered. There was the limitation that the cost of administering the questionnaire was very high due to high administrative, personnel and traveling costs especially when some of the respondents were initially not on their seats. There was the limitation that the researcher and the field data collectors were not policemen and so they could not force some of the respondents if they refuse to give answers. There was also the limitation of the scarcity of time and money resources. Let categories the limitation as follows:..

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Material Procurement There was a lot constraints as to getting information and materials for the job. The researcher made series of consultations and visit to most renowned institutions to acquire the needed information. Most materials used were very difficult to come by, as there is no library within the town. Time Constraints Combining academic work with job is no doubt a thought provoking issue, as it has to do with time. Actually, a lot of time was wasted as the researcher visited the

organizations and individuals together with government agencies to obtain valuable information for the project. Financial Constraints The researcher would have obtained more information than what is obtainable here but due to lack of money to

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visit some of the firms and government agencies located a bit farther from the researcher place of resident.

1.6

STRUCTURE OF WORK This research work is to be organized in five chapters as follows: 1. Introduction 2. Review of Related Literature 3. Research Methods and Procedures 4. Data presentation and Analysis and 5. Summary, Findings and Conclusion

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CHAPTER TWO REVIEW OF RELATED LITERATURE 2.1 THE SPECTRUM OF WORKING CAPITALCash is most important factor in financial management. Every activity in an enterprise revolves round the cash. As because cash is limited in every enterprise and it cannot be raised as and when one likes it, it is, therefore, desirable that available cash must be managed properly. Every undertaking is desirous of utilizing the available cash most effectively so as to accomplish the goals of the undertaking, i.e., maximization of profits with the minimum of efforts. But management of cash is not as simple as it might appear. In case, the undertaking does 15

not keep sufficient cash in hand, it shall not be in a position to meet the unexpected challenges, which challenges and cash remains unutilized in the business, it will result in losses. If heavy amounts are blocked for unforeseen contingencies the company will not be in a position to carry on its day to day working efficiently. It is where the real problem of cash management comes, i.e., how much cash should be set aside for unexpected challenges and how much for the regular day-to-day working. It is really not an easy problem to solve. In fact, no hard and fast rules can be suggested for the problem. All the financial management can do in this regard, is to study the past records an take the necessary decision bearing in mind the present economic circumstances and the behaviour and practice of the sister concern. In Hozopac Nigeria Limited, there are two types of assets in each concern i.e., fixed assets and current assets. Both types of assets are to be managed efficiently so as to earn maximum profit with minimum possible investments because maximization of profits is the prime object of every business. Decisions regarding investment in fixed assets are taken through the capital budgeting process but decision making regarding management of working capital is a continuous process which involves control of everyday and flow of financial resources circulating in the enterprise in one form or the other. The accomplishment of the prime object-maximization of profits in most businesses depends largely how their working capital is 16

managed. Working capital management is considered to involve the management of current assets, i.e., cash, accounts receivables and inventory. Unlike the management of fixed assets which may be arranged in special cases on long-lease basis, the working capital has no alternative except to arrange them and us them efficiently. There are certain special problems peculiar to the management of working capital requiring operational and financial skills of a high order.

(1) There is a positive correlation between the sale of the product of the firm and the current assets. An increase in the sale of the project requires a corresponding increase in current assets. It is, therefore, indispensable to manage the current assets properly and efficiently.

(2) More than half of the total capital of the firm is generally invested in current assets. It means less than half of the capital is blocked in fixed assets. We pay due attention to the management of fixed assets in details through the capital budgeting process. Management of working capital too, therefore, attracts the attention of the management.

(3) In emergency (Non availability of funds etc.) fixed assets can be acquired on lease but there is no alternative for current assets. Investment in current assets, i.e., inventory or receivable, can in no way be avoided without sustaining loss.

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(4) Working capital needs are more often financed through outside sources, so it is necessary to utilise them in the best way possible. In nutshell, Working capital management involves the relationship between a firm's short-term assets and its short-term liabilities. The goal of working capital management is to ensure that a firm is able to continue its operations and that it has sufficient ability to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable, and cash. 2.1

WORKING CAPITAL DEFINED

Working capital means the funds (i.e.; capital) available and used for day to day operations (i.e.; working) of an enterprise. It consists broadly of that portion of assets of a business which are used in or related to its current operations. It refers to funds which are used during an accounting period to generate a current income of a type which is consistent with major purpose of a firm existence.

2.2 Management of working capitalManagement adopt a combination of policies and techniques for the management of working capital. These policies aim at managing the current assets (generally cash and cash equivalents, inventories and debtors) and the short term financing, such that cash flows and returns are acceptable.Cash

management. Identify the cash balance which allows for the business to

meet day to day expenses, but reduces cash holding costs.

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Inventory

management. Identify the level of inventory which allows for

uninterrupted production but reduces the investment in raw materials - and minimizes reordering costs - and hence increases cash flow; see Supply chain management; Just In Time (JIT); Economic order quantity (EOQ); Economic production quantityDebtors

management. Identify the appropriate credit policy, i.e. credit terms

which will attract customers, such that any impact on cash flows and the cash conversion cycle will be offset by increased revenue and hence Return on Capital.Short

term financing. Identify the appropriate source of financing, given the

cash conversion cycle: the inventory is ideally financed by credit granted by the supplier; however, it may be necessary to utilize a bank loan (or overdraft), or to "convert debtors to cash" through "factoring". Working capital is directly affecting by other management issues, such as product mix, supply chain design and business model (for example agent vs. distributor)

2.3 Decision criteriaBy definition, working capital management entails short term decisions - generally, relating to the next one year period - which are "reversible". These decisions are therefore not taken on the same basis as Capital Investment Decisions (NPV or related, as above) rather they will be based on cash flows and / or profitability.

One measure of cash flow is provided by the

cash conversion cycle

- the net

number of days from the outlay of cash for

raw material

to receiving payment from

the customer. As a management tool, this metric makes explicit the interrelatedness of decisions relating to inventories, accounts receivable and payable, 19

and cash. Because this number effectively corresponds to the time that the firm's cash is tied up in operations and unavailable for other activities, management generally aims at a low net count.

In this context, the most useful measure of profitability is

Return on capital

(ROC).

The result is shown as a percentage, determined by dividing relevant income for the 12 months by capital employed;Return on equity

(ROE) shows this result for the

firm's shareholders. Firm value is enhanced when, and if, the return on capital, which results from working capital management, exceeds thecost of capital,

which

results from capital investment decisions as above. ROC measures are therefore useful as a management tool, in that they link short-term policy with long-term decision making.

2.4 MANAGING WORKING CAPITAL1. Working Capital Cycle Cash flows in a cycle into, around and out of a business. It is the business's life blood and every manager's primary task is to help keep it flowing and to use the cashflow to generate profits. If a business is operating profitably, then it should, in theory, generate cash surpluses. If it doesn't generate surpluses, the business will eventually run out of cash and expire. Click here for more information about the vital distinction between profits and cashflow. The faster a business expands, the more cash it will need for working capital and investment. The cheapest and best sources of cash exist as working capital right within business. Good management of working capital will generate cash will help improve profits and reduce risks. Bear in mind that the cost of providing credit to customers and holding stocks can represent a substantial proportion of a firm's total profits. There are two elements in the business cycle that absorb cash - Inventory (stocks and work-in-progress) and Receivables (debtors owing you money). The main sources of cash are Payables (your creditors) and Equity and Loans.

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Each component of working capital (namely inventory, receivables and payables) has two dimensions ........TIME ......... and MONEY. When it comes to managing working capital - TIME IS MONEY. If you can get money to move faster around the cycle (e.g. collect monies due from debtors more quickly) or reduce the amount of money tied up (e.g. reduce inventory levels relative to sales), the business will generate more cash or it will need to borrow less money to fund working capital. As a consequence, you could reduce the cost of bank interest or you'll have additional free money available to support additional sales growth or investment. Similarly, if you can negotiate improved terms with suppliers e.g. get longer credit or an increased credit limit, you effectively create free finance to help fund future sales. 2. Sources of Additional Working Capital Sources of additional working capital include the following:

Existing cash reserves Profits (when you secure it as cash !) Payables (credit from suppliers) New equity or loans from shareholders Bank overdrafts or lines of credit Long-term loans

If you have insufficient working capital and try to increase sales, you can easily overstretch the financial resources of the business. This is called overtrading. Early warning signs include: 21

Pressure on existing cash Exceptional cash generating activities e.g. offering high discounts for early cash payment Bank overdraft exceeds authorized limit Seeking greater overdrafts or lines of credit Part-paying suppliers or other creditors Paying bills in cash to secure additional supplies Management pre-occupation with surviving rather than managing Frequent short-term emergency requests to the bank (to help pay wages, pending receipt of a cheque).

3. Handling Receivables (Debtors) Cashflow can be significantly enhanced if the amounts owing to a business are collected faster. Every business needs to know.... who owes them money.... how much is owed.... how long it is owing.... for what it is owed. Late payments erode profits and can lead to bad debts. Slow payment has a crippling effect on business, in particular on small businesses who can least afford it. If you don't manage debtors, they will begin to manage your business as you will gradually lose control due to reduced cashflow and, of course, you could experience an increased incidence of bad debt. The following measures will help manage your debtors: 1. Have the right mental attitude to the control of credit and make sure that it gets the priority it deserves. 2. Establish clear credit practices as a matter of company policy. 3. Make sure that these practices are clearly understood by staff, suppliers and customers. 4. Be professional when accepting new accounts, and especially larger ones. 5. Check out each customer thoroughly before you offer credit. Use credit agencies, bank references, industry sources etc. 6. Establish credit limits for each customer... and stick to them. 7. Continuously review these limits when you suspect tough times are coming or if operating in a volatile sector. 8. Keep very close to your larger customers. 9. Invoice promptly and clearly. 10. Consider charging penalties on overdue accounts. 11. Consider accepting credit /debit cards as a payment option. 12. Monitor your debtor balances and ageing schedules, and don't let any debts get too large or too old. Recognize that the longer someone owes you, the greater the chance you will never get paid. If the average age of your debtors is getting longer, or is already very long, you may need to look for the following possible defects:

weak credit judgement poor collection procedures

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lax enforcement of credit terms slow issue of invoices or statements errors in invoices or statements customer dissatisfaction.

Debtors due over 90 days (unless within agreed credit terms) should generally demand immediate attention. Look for the warning signs of a future bad debt. For example.........

longer credit terms taken with approval, particularly for smaller orders use of post-dated checks by debtors who normally settle within agreed terms evidence of customers switching to additional suppliers for the same goods. new customers who are reluctant to give credit references receiving part payments from debtors. Profits only come from paid sales. The act of collecting money is one which most people dislike for many reasons and therefore put on the long finger because they convince themselves there is something more urgent or important that demand their attention now. There is nothing more important than getting paid for your product or service. A customer who does not pay is not a customer. Here are a few ideas that may help you in collecting money from debtors: Develop appropriate procedures for handling late payments. Track and pursue late payers. Get external help if your own efforts fail. Don't feel guilty asking for money.... its yours and you are entitled to it. Make that call now. And keep asking until you get some satisfaction. In difficult circumstances, take what you can now and agree terms for the remainder. It lessens the problem. When asking for your money, be hard on the issue - but soft on the person. Don't give the debtor any excuses for not paying. Make it your objective is to get the money - not to score points or get even.

4. Managing Payables (Creditors) Creditors are a vital part of effective cash management and should be managed carefully to enhance the cash position. Purchasing initiates cash outflows and an over-zealous purchasing function can create liquidity problems. Consider the following: Who authorizes purchasing in your company - is it tightly managed or spread among a number of (junior) people? Are purchase quantities geared to demand forecasts?

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Do you use order quantities which take account of stock-holding and purchasing costs? Do you know the cost to the company of carrying stock ? Do you have alternative sources of supply ? If not, get quotes from major suppliers and shop around for the best discounts, credit terms, and reduce dependence on a single supplier. How many of your suppliers have a returns policy ? Are you in a position to pass on cost increases quickly through price increases to your customers ? If a supplier of goods or services lets you down can you charge back the cost of the delay ? Can you arrange (with confidence !) to have delivery of supplies staggered or on a just-in-time basis ? 5. Inventory Management Managing inventory is a juggling act. Excessive stocks can place a heavy burden on the cash resources of a business. Insufficient stocks can result in lost sales, delays for customers etc. The key is to know how quickly your overall stock is moving or, put another way, how long each item of stock sit on shelves before being sold. Obviously, average stockholding periods will be influenced by the nature of the business. For example, a fresh vegetable shop might turn over its entire stock every few days while a motor factor would be much slower as it may carry a wide range of rarely-used spare parts in case somebody needs them. Nowadays, many large manufacturers operate on a just-in-time (JIT) basis whereby all the components to be assembled on a particular today, arrive at the factory early that morning, no earlier - no later. This helps to minimize manufacturing costs as JIT stocks take up little space, minimize stock-holding and virtually eliminate the risks of obsolete or damaged stock. Because JIT manufacturers hold stock for a very short time, they are able to conserve substantial cash. JIT is a good model to strive for as it embraces all the principles of prudent stock management. The key issue for a business is to identify the fast and slow stock movers with the objectives of establishing optimum stock levels for each category and, thereby, minimize the cash tied up in stocks. Factors to be considered when determining optimum stock levels include:

What are the projected sales of each product? How widely available are raw materials, components etc.? How long does it take for delivery by suppliers?

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Can you remove slow movers from your product range without compromising best sellers?

Remember that stock sitting on shelves for long periods of time ties up money which is not working for you. For better stock control, try the following: Review the effectiveness of existing purchasing and inventory systems. Know the stock turn for all major items of inventory. Apply tight controls to the significant few items and simplify controls for the trivial many. Sell off outdated or slow moving merchandise - it gets more difficult to sell the longer you keep it. Consider having part of your product outsourced to another manufacturer rather than make it yourself. Review your security procedures to ensure that no stock "is going out the back door "

6. Key Working Capital Ratios The following, easily calculated, ratios are important measures of working capital utilization.Ratio Formulae Result Interpretation On average, you turn over the value of your entire stock every x days. You may need to break this down into product groups for effective stock management. Obsolete stock, slow moving lines will extend overall stock turnover days. Faster production, fewer product lines, just in time ordering will reduce average days. It take you on average x days to collect monies due to you. If your official credit terms are 45 day and it takes you 65 days... why ? One or more large or slow debts can drag out the average days. Effective debtor management will minimize the days. On average, you pay your suppliers every x days. If you negotiate better credit terms this will increase. If you pay earlier, say, to get a discount this will decline. If you simply defer paying your suppliers (without agreement) this will also increase - but your reputation, the quality of service and any flexibility provided by your suppliers may suffer. Current Assets are assets that you can readily turn in to cash or will do so within 12 months in the course of business. Current Liabilities are amount you are due to pay within the coming 12 months. For example, 1.5 times means that you should be able to lay your hands on $1.50 for every $1.00 you owe. Less than 1 times e.g. 0.75 means that you could have liquidity problems and be under pressure to generate sufficient cash to meet oncoming demands. Similar to the Current Ratio but takes account of the fact that it may take time to convert inventory into cash. A high percentage means that working capital needs are high relative to your sales.

Stock Turnover (in days)

Average Stock * 365/ Cost of Goods Sold

= x days

Receivables Ratio (in days)

Debtors * 365/ Sales

= x days

Payables Ratio (in days)

Creditors * 365/ Cost of Sales (or Purchases)

= x days

Current Ratio

Total Current Assets/ Total Current Liabilities

= x times

Quick Ratio Working Capital Ratio

(Total Current Assets Inventory)/ = x times Total Current Liabilities(Inventory + Receivables Payables)/

Sales

As % Sales

Other working capital measures include the following: -Bad debts expressed as a percentage of sales. -Cost of bank loans, lines of credit, invoice discounting etc. -Debtor concentration - degree of dependency on a limited number of customers.

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Once ratios have been established for your business, it is important to track them over time and to compare them with ratios for other comparable businesses or industry sectors.

CHAPTER THREE RESEARCH METHODS AND PROCEDURES 3.1 RESEARCH DESIGN The research method selected for the study is a combination of a survey and an industrial study. The survey research method is described hereunder that: (i) It is a design in which primary data is gathered from members of

the sample that represents a specific population; (ii) It is a design in which a structure and systematic research

instrument like a questionnaire or an interview schedule is utilized together with the primary data;

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(iii)

It is a method in which the researcher manipulates no explanatory

variables because they have already occurred and so they cannot be manipulated; (iv) (v) (vi) Data are got directly from the subjects; The subjects give the data the natural settings of their workplaces; The answers of the respondents are assumed to be largely

unaffected of the Context in which they are brought; (vii) The impacts of the confounding factors are controlled statistically; and (viii) The aim of the research may span from the exploration phenomena to hypotheses testing (stone 1995). The survey research method has some merit, which are to be articulated hereunder: In the survey research method, the sample of the respondents is selected in such a way as to make for the generally low due to the utilization of big sample sizes, which results in generally low sample errors. Also the probability sampling techniques utilized in selecting the samples of the respondents in a survey especially, the selecting the samples of the respondents in a survey especially, the random sampling techniques makes it possible to give every element in the population a known and chance of belonging to the sample and by so doing, sample bias is either minimised or completely eliminated (Stone 1995). Sampling27

even as a compromise has a lot of strength. The survey research method also has the merit that data collection takes place in the natural settings of the workplace rather than an activated laboratory. Data is collected directly from the respondents. The advantage that the survey yields data that suggests new hypothesis is very illuminating. There is also the merit that a set of systematic data collection instruments such as questionnaire interview schedules and observation gadgets can either be used alone or in conjunction with other instruments (Stone, 1995). The survey research method also has some demerits. There is the demerit that there is a decreased willingness of the subjects to give responses to survey probes. There is the demerit that most surveys are one shot or at most two short as opposed to the panel type of research design, in which repeated measures are taken on the same sample using questionnaires. The result of this shortcoming is that the ability of the survey research method to yield data with which to test the causal relationships of variables is minimized (stone, 1995). There is also the demerit of the survey that in terms of total expenditure, the survey research methods is a highly costly research method due to a large administrative, and/or personnel and travel expenses especially when the research and the field data collectors have to do several trips to get at some subjects that were not originally available. There is also the

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demerit that the structured and pre-arranged response formats of many survey measures e.g. questionnaires and structure interview schedules many compel the subjects to give response which they do not really accept (stone, 1995 ). Apart from the choice of the survey research design, the industry is also chosen for the study. The study on the internal control in the aviation industry is for only industry and there was the need to deliver questionnaires to the managers in at least two firing investigation in some depth.

3.2

SAMPLING Spiegel (1992) observes that sampling theory is a study of the relationship existing between a population or universe and the samples drawn from it. The population in this study is the entire staff of the firm. In order to make conclusions of sample theory and statistical references to be valid, a sample must be selected as to be representative of the population (Spiegel, 1992 ). One way in which a representative sample

may be got, is by the process of stratified random sampling. In this research work, the technique of simple random sampling is used to select the sample of 100 respondents from a total sample size of 200.

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The list of all the senior staff in the two firms in the aviation industry is got from the personnel department of the firms in the industry. The numbers are written on a piece of paper, put in a basket and the papers are folded to cover the numbers and one of the pieces of paper is selected at a time without replacing it and any name corresponding to the number becomes a number of the sample. This method of sampling without replacement is done until the sample of 100 respondents per firm is got.

3.3

DATA COLLECTION As earlier stated, the primary data collection instrument in this study was the questionnaire. In the questionnaire method of primary data collection, a heavy dependence was placed on verbal reports from the subjects to get information on the role of packaging as a management strategy. The questionnaire had a lot of merits. It needed less skill to administer. Further, Questionnaire can be administered to a big number of individuals at the same time. Also with a specific research budget, it was usually possible to cover a brooder area and to get information from more subjects by a questionnaire. The impersonal nature of a questionnaire, its structure and standardized wording, its order of question, its standardized instructions for recording answers might make one to conclude that if

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offers some uniformity from one measurement occasion to another (Selltiz et al, 1976).

Another merit of questionnaire was that subjects may have a bigger confidence in their anonymity, and thus feel freer to express views they feel might be disapproved-Another attribute of the questionnaire that is sometimes, through not always desirable is that it might place less pressure on the subjects for immediate response (Selltiz et al, 1976).The questionnaire also has some demerits. It has been estimated that for purpose of giving dependable responses to a questionnaire, one respondents must be considerable educated, Thus one of the demerits of the usual questionnaire is that it is appropriate only for with a considerable amount of education. There is also the demerit that subject may be reluctant and unable to report on the particular subject matter. Also, if a subject misinterprets a question or give his or her answer in a batting manner, there is often a little that can be done to ameliorate the situation. In a questionnaire, the information the researcher gets is limited to the fixed alternative answer format, when a specific answer is not available, it can lead to errors (Selltiz, 1976). There is also limitation of memory in reporting on past facts. There is also a problem beyond memory. Usually, the cause of a failure to report

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past facts is not forgetting in the usual sense of the word but rather, it may be motivational. Also the researcher is not a policeman that can compel answers. That is, the information may not be readily accessible to the subject and thus the subject may be reluctant to put forth enough alternative information that he or she is only barely conscious of (Selltiz et al, 1996). In this research project a structured and undisguised questionnaire is utilised which is made up of two parts namely, the personal data section and the section on the data on the actual subject matter of the work. The questionnaire is undisguised in the sense that the purpose of the data collection which is to collect primary data for writing up the researchers HND project is made known to the 200 respondents. The questionnaire is structured in the sense that the questions are logically sequenced and are to be asked to the respondents in the same manner and no follow up questions are to be allow. Some of the questions are of the fixed alternative answer format type. Ten (10) of the questions have yes or no answers, Ten (10) of the questions have alternative answers for the respondents to tick. The structured questionnaire has the merit that it yields data that is easier to analyse than data produced by an unstructured questionnaire. Also the structured nature diminishes both researchers and research instrument

32

biases. It however has the demerit that the rigidity of the research instrument diminishes the amount of information that could be got. The method of communication of the research instrument is by means of the personal interview. The method has the merit that it produces a better sample of the population than either mail or the telephone methods. It also has the merit that it gives a very high completion and response rates. It has the merit that the interview has a bigger sensitivity misunderstandings by the respondents and gives a chance for clarification of misunderstood questions. It has the merit that it is a very feasible method (Selltiz et al, 1976). The personal interview method has the demerit that it is more costly than the mail or the telephone methods of communication of a questionnaire.

3.4

FIELD WORK The researcher and three other field data collectors did the fieldwork. The field data collectors were other classmates also offering the part-time HND program, who have also offered Research Methodology and are staff of the firms studies and so they had no problem gaining entrance in the firms. They were to be trained by the researchers on how to gain entry , greet the respondents and , how to tick the questionnaire correctly, and honestly.33

3.5

DESCRIPTION OF DATA PRESENTATION AND ANALYSIS TOOLS The data presentation tools were simple bar charts, histograms, and pictorial tables. The most important parts of a table include; (a) (b) (c) Table numbers Title of the table Caption

Stub or the designation of the rows and columns The body of the table. (f) The head note or prefatory note or explanatory just before the title; Foot note, which is an explanation not at the end of the page (h) source note, which refers to the literally or scientific source of the table(Mills and Walter 1995) Anyiwe (1994) has observed that a table has the following merits over a prose information that; A table ensure an easy location of the required figures; (j) Comparisons are easily made utilizing a table than a prose information;

34

(k)

Patterns or trends within the figures which cannot be visualised in the prose information can be revealed and better depicted by a table; and A table is more concise and takes up a less space than a prose formation:

The data is to be analysed by means of percentage, cross tabulation and the z test of population proportions for testing the three hypotheses. Percentages express the ration of two sets of data to a common base of 100. Percentages facilitate comparison and address the problem of the misleading tendency of absolute in which 8 over 10 is greater than 12 over 15 as the first ratio gives a percentages of 80 while the later gives a percentages of 75 . Cross tabulation involves utilising a table to display two or more variables. The z test of population of the respondents who said yes to a particular yes or no question is given at 5% level of significance to a particular (Spiegel, 1992)

It is in this respect that this study finds it worthwhile to address the following questions using time series data for a 31-year period, 1970-2000: (a) what is the35

nature of relationship between poverty, unemployment and growth in Nigeria? (b) what steps should be taken to ensure that growth is such that brings about decrease in unemployment and poverty in Nigeria?

REFERECES Anyiiwe, E. M. A. EXOSTAT! Statistical Handbook of Economist, Social Scientists, (Yaba, Lagos: Ama Resources Nigeria Limited, 1994) Mills, G. Ho, and Wallter, J. A. Technical Writing, (New York: Holt, Rinehart and Winston, 1995) Selltiiiz, C. Wrightsman, L. S., and cook, S. W. Research Methods in Social

Relations,(New York: Holt, Rinehart and Winstons, 1976). Spiegel, M. R. Schauns outline of theory and problems of statistics in S. I. Units, (New York: Mcgraw-hill book company 1992)

36

Stone, E. Research method in organisational behaviour (Santa, Monica, California:Good Year incorporated, 1995). publishing company

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1

INTRODUCTION In the previous chapter, the research methods and procedures have been handled. In this chapter the data presentation and analysis are to be done. The data is to be presented by means of tables, two simple bar charts, one histogram and one pie chart to make it amenable for further analysis. By analysis, it meant the act of noting relationship and aggregating the set of variables with similar attributes and also breaking the unit of their components (Mills and Walters 1995).

37

In this research work, the researcher accepts the contention of Podsakoff and Dalton (1995) that the factual information from the data can be used as a basis for reasoning, calculation and discussion. Apart from the heading above, the other headings in this chapter includes: 1. Data presentation, 2. Percentage analysis 3. Cross- tabulated analysis 4. Hypothesis testing 4.2 DATA PRESENTATIONTABLE 1 THE SUMMARY OF THE PERSONAL DATA OF THE RESPONDENTS 1 SEX Male Female Total 2 Marital status Married Single Total 3 AGE 21-30 years 31-40 years 41-50 years 51-60 years Total 4 HIGHER EDUCATIONAL QUAIFICATION 90 90 10 10 200 130 70 200 FREQUENCY 150 50 200 Angles suspended in degree

38

DIPLOMA OND HND FIRST DEGREE SECOND DEGREE ACA TOTAL 10 30 80 20 40 20 200 18 54 144 36 32 36 360

The marital statuses of the 200 respondents, it is found that 130 of them are married while 70 of them are single. For the ages of the 200 respondents they are 21-30 years, 31-40 years, 15-60 years with frequencies of 90 and 10 respectively. For the highest educational qualification of the 200 respondents they are diploma, OND, HND, First Degree, Second Degree, A.C.A. and they have frequencies of 10, 30, 80, 20, 40 and 20 respectively. Figure 4.1 below shows the simple bar chart of the data on the sex of the respondentsFIGURE 4.1: THE SIMPLE BAR CHART OF THE DATA ON THE SEX OF THE 160 150 140 130 120 110 100 90 80 70 M F Sex of the respondents 39 50 RESPONDENTS 150 FEMALE MALE

Source: from data in table 1 From figure 4.1 above, it is shown that male respondents have the modal frequency of 150 of the 200 respondents while the female respondents have the frequency of 50 of them. Figure 4.2 below shows the simple bar chart of the data on the marital statuses of the respondents.FIGURE 4.2: THE SIMPLE BAR CHART OF THE DATA ON THE MARITAL STATUSES OF THE RESPONDENTS

MARITAL STATUS OF THE RESPONDENTS140 120 100 80 60 40

Frequency

20 0

MARITAL STATUS OF THE RESPONDENTS Frequency Percent Valid Percent Cumulative MARITAL STATUS OF THE RESPONDENTS Percent

MARRIED

SINGLE

Valid

MARRIED SINGLE Total

130 70 200

65.0 35.0 100.0

65.0 35.0 100.0

65.0 100.0

40

From figure 4.2 above, it is shown that the married respondents have the modal frequency of 130 out of the 200 respondents while the single respondents have the frequency of 70 of them.

FIGURE 4.3: THE HISTOGRAM OF THE DATA ON THE AGES OF THE RESPONDENTS.

AGE OF THE RESPONDENTS100

80

60

40

Frequency

20

Std. Dev = .78 Mean = 1.7 N = 200.00 1.0

0

AGE OF THE RESPONDENTS 2.0 3.0 4.0 Frequency Percent Valid Percent 45.0 45.0 5.0 5.0 100.0

Valid 21 - 30 YEARS 31 -40 YEARS 41 - 50 YEARS 51 - 60 YEARS Total

AGE OF T HE RESPONDENT S 45.0 9090 10 10 200 45.0 5.0 5.0 100.0

Cumulative Percent 45.0 90.0 95.0 100.0

41

SOURCE: From the data in Table 1.

From figure 4.3 above, it is shown that the age classes are 20.5-30.5 years, 30.5-40.5 years, 40.5-50.5 years and 50.5-60.5 years with frequencies of 90, 10, and 10 out of 200 respectively. This shows that this is a bi-modal distribution as the age classes of 20.5-30.5 years and 30.5-40.5 years have a frequency of 10. Figure 4.4 below shows the pie chart of the data on the highest educational qualifications of the 200 respondents.EDUCATIONAL QUALIFICATION OF THE RESPONDENTS Frequency Percent Valid Percent Cumulative FIG.4.4 THE PIE CHART OF THE DATA ON THE HIGHEST Percent Valid DIPLOMA 10 4.8 5.0 5.0 OND 30 14.3 20.1 EDUCATION QUALIFICATIONS OF THE 200 15.1 RESPONDENTS HND 80 38.1 40.2 60.3 FIRST DEGREE 19 9.0 9.5 69.8 SECOND DEGREE ACA Total System 40 20 199 11 210 19.0 9.5 94.8 5.2 100.0 20.1 10.1 100.0 89.9 100.0

42

Missing Total

EDU CATION QU AL ALIFICATION OF TH RESPON E DEN TSM issing AC A D LOM IP A ON D

SE ON D GR E C D E E

FIR D GR ST E EE

H D N

SOURCE: From the data in table 1. From figure 4.4 above, the Highest Educational Qualifications are Diploma, O.N.D, First Degree, Second Degree and A.C.A and the

43

subtend angles equal to 180, 540, 1440, 360, 720 and 360 and respectively at the center of the circle.

PERCENTAGE ANALYSIS Table 2 below shows the percentage analysis of the responses to the yes or no Questions.S/N QUESTIONS YES % NO % TOTAL IN NUM.1 2 Can unemployment be caused by an individual? Is there any relationship between poverty, unemployment and growth? 190 200 95 100 10 0 5 0 200 200

TOTAL IN %100 100

3

Does government regulation cause unemployment?Can unemployment leads to sickness and mental disorder? Does unemployment leads to homelessness and loss of selfesteem? Can we say that unemployment is one of the causes of youth

190

95

10

5

200

100

4 5

180 200

90 100

20 0

10 0

200 200

100 100

6

100

80

40

20

200

100

44

disturbances in the community?

7 8

Is unemployment a social problem? Can government do something to reduce the rate of unemployment in the country?

200

100 85

0 30

0 15

200 200

100 100

170

9

10

Does politics contribute to the cause of unemployment? Is it possible eradicate unemployment totally from the society?

200 200

100 100

0 0

0

200 200

100 100

SOURCE: From the questionnaires administered Table 2 above shows the answers to the yes or no questions in both absolute numbers and percentages. The 200 respondents were asked if the unemployment be caused by an individual. 190 of them making 95% said yes and 10 of them making 5% of them said no. The 200 respondents were asked whether there is any relationship between poverty, unemployment and growth. 100 respondents making 50% of them said yes. The respondents were asked if government regulation can cause unemployment, 190 of them making 95% of them said yes while 10 of them making 5% of them said no. The 200 respondents are asked whether unemployment can lead to sickness and mental disorder, 180 of them making 90% said yes and 20 of them making 10% of them said no. The 200 respondents were asked if unemployment can lead to homelessness and loss of self-esteem 100 of them making 50% said yes. The 200 respondents were asked whether

45

unemployment is one of the causes of youth disturbances in the community. 160 of them making 80% of them said yes and 40 of them making 20% of them said no. The 200 respondents are asked if unemployment is a social problem. 100% of them said yes. The 200 respondents are asked if government can do something to reduce the rate of unemployment in the country. 170 of them making 85% of them said yes and 30 of them making 15% of them said no. The 200 respondents are asked if politics contribute to the cause of unemployment 100% of them said yes. They were asked if it is possible to eradicate unemployment totally from the society.100 of them said yes.

`4.4 CROSS TABULATED ANALYSIS Table: 3 below shows the analysis of the statuses of the 200 respondents TABLE: 3 THE ANALYSIS OF THE STATUSES OF THE 200 RESPONDENTS. STATUS SENIOR FREQUENCY 80 PROPORTION 0.4

STAFF JUNIOR STAFF 120 0.6 TOTAL 200 1 SOURCES: From the questionnaires administered.

46

From the table 3 above, it is shown that the 200 respondents has the proportion of 0.4 for senior staff and 0.6 for the junior staff making a proportion of 1 in all .

TABLE

4:

THE

ANALYSIS

OF

THE

COST

OF

UNEMPLOYMENT

COST OF UNEMPLOYMENT i. individual ii. society TOTAL F. Stands for frequency, p for proportion.

F 110 90 200

P(%) 0.55 0.45 1

SOURCE: from the questionnaires administered. From table 4 above it is shown that the cost of unemployment are: 1. cost to individual 2. cost to the society

47

They have frequencies of 110and 90 respectively out of 200 making proportions of the total of 0.55, and 0.45 respectively.

TABLE 5: THE ANALYSIS OF THE CAUSES OF UNEMPLOYMENT CAUSES OF UNEMPLOYMENT i. Economic growth ii. Technological advancement iii. Politics iv. Government regulation v. Individual Total FREQUENCY 40 35 30 55 40 200 PROPORTION 20 17.5 15 27.5 20 100

SOURCE: From the questionnaires administered.

From Table 5 above, it is shown that the major causes of unemployment by the respondents are economic growth, technological advancement, politics, government regulation and individual. They have frequencies of 40, 35, 30, 55 and 40 respectively out of 200 making proportions of the total of 20, 17.5, 15, 27.5 and 20 respectively. Table 6 below shows the analysis of the components of their internal control system TABLE. 6: THE ANALYSIS OF THE COMPONENTS OF THEIR

48

PACKAGING SYSTEM. COMPONENT I: inputs Ii: units FREQUENCY 75 PROPORTION 0.375 0.425 0.20 1.000

processing 85 40 200

Iii: outputs TOTAL

Source: From the questionnaire administered From table 6 above it is shown that the components of their packaging system are processing units, Inputs and output in a descending order of magnitude. They have frequencies of 85. 75 and 40 respectively

TABLE:7 THE MEASUREMENT MEASUREMENT 1: Official Estimates

ANALYSIS

OF

THE

UNEMPLOYMENT PROPORTION 29 30 8.5 32.5 100

FREQUENCY 58 Sample 60 17 200

2: Labour Force Surveys materials

3: Social Insurance Statistics

4. Employment Office Statistics 65

SOURCE: From the questionnaires administered. From table 7 above, the constraints on packaging system are lack of knowledge of materials, choice of packaging materials and cost of packaging. They have frequencies of 82,60,and 58 out of 200 respectively giving proportions of 0.41, 0.30, and 0.29 respectively.

49

4.5

HYPOTHESES TESTING Three hypotheses are to be tested as follows, that the proportion of the respondents that said yes is 90% when asked:

1. 2. 3.

If UNEMPLOYMENT IS CAUSE BY INDIVIDUAL; If UNEMPLOYMENT IS CAUSE BY GOVERNMENT REGULATION If UNEMPLOYMENT ADVANCEMENT IS CAUSE BY TECHNOLOGICAL

The alternative hypotheses in each case are that the proportion is greater than 90% at 5% level of significance. The z test of the population proportions is used. TABLE 8: THE COMPUTATIONAL DETAILS OF THE THREE HYPOTHESES HYPOTHESES NO. 1 2 3 HO: P = 0.9 HA: P > 0.9 SOURCE: From the data in table 2 and from the statistical table From table 8 above it is shown that for each of the three hypotheses, the calculated value is greater than the table value and so the null hypotheses in each case is rejected and the alternative hypothesis is accepted. So in each case the proportion of the respondents who said yes is greater than 90% CALCULATED VALUES 2.357 4.714 4.714 TABLE VALUE 1.045 1.645 1.645 DECISION Reject Ho Reject Ho Reject Ho

50

REFERENCES

Mills. G .A AND Walter, J.A.C. 1995) Technical writing New York: holt. Rinehart and Winston. Podsakoff, p.m and Dalton, P.R. (research methodology in organisational studies. Journal of management. Volume 13, number 2, 419 441

51

CHAPTER FIVE FINDINGS, SUMMARY, CONCLUSION AND RECOMMENDATION

5.1

FINDINGS Through this research, the researcher has been able to discover and established the fact that: 1. The unemployed are those who want and are able to work but who

have no work at present. They might alternatively be described as having no work, being available for work, and looking for a job or waiting for their work to resume or begin in the near future 2. 3.Unemployment levels are increasing dramatically in many parts of the world.

Unemployment has obvious and well-documented links to economic disadvantage and has also been connected in some discussion to higher crime rates this our country.

4.

5.2

SUMMARY52

According to Adrian Sinfield, when there is high unemployment (1) the employed feel less secure; (2) workers are less willing to leave unsatisfactory jobs; (3) divisions in society increase; (4) the prospect of equality of opportunity decreases. Some local areas can develop a culture of despair. Lea and Young argue that this occurred in some inner cities of Britain and helped cause the riots of the 1980s. Various attempts have been made to link unemployment to many social ills such as ill-health, premature death, attempted and actual suicide, marriage breakdown, child battering, racial conflicts and football hooliganism. There is evidence to link unemployment to poor health. For example, (1) some unemployed graduates in this nation had poorer mental health than employed ones; (2) in 1971 a study based on the British census found a 20% higher mortality rate among the unemployed than among the employed; (3) a 1982 study of Edinburgh found the suicide and attempted suicide rate of unemployed men was 20 times higher than that of employed men; (4) studies indicate that children of the unemployed are not as tall as those of the employed. Such studies do not actually show that unemployment causes ill health, but they establish a statistical correlation. Chas Critcher, Bella Dicks and Dave Waddington in the early 1990s studied the effect of unemployment on two pit villages in53

Yorkshire using a questionnaire method. In both villages pit closure resulted in significant long-term unemployment, and there were high stress levels throughout the community. Women suffered as much as men; wives of miners had to bear the brunt of family poverty and cope with male despair. There were social and economic problems for the community as a whole, and the fabric of the villages started to decay. Crime increased. Both villages were communities that had experienced total disorientation. Unemployment costs the taxpayer. Between 1979 and 1985 unemployment benefits amounted to 33 billion. There is also a loss of tax revenue, since people who are out of work do not pay taxes. In Nigeria, the national unemployment rate, estimated by the Office of Statistics as 4.3 percent of the labour force in 1985, increased to 5.3 percent in 1986 and 7.0 percent in 1987, before falling to 5.1 percent in 1988 as a result of measures taken under the SAP. Most of the unemployed were city dwellers, as indicated by urban jobless rates of 8.7 percent in 1985, 9.1 percent in 1986, 9.8 percent in 1987, and 7.3 percent in 1988. Underemployed farm labour, often referred to as disguised unemployed, continued to be supported by the family or village, and therefore rural unemployment figures were less accurate than those for urban unemployment.

54

The International Labor Organization (ILO) is trying to do something about unemployment in Nigeria. The ILO says that 6.4-million Nigerians are looking for work, which would make the unemployment rate there 4.7 percent. 5.3 CONCLUSION The unemployed can be distinguished from the much larger number who are employed, on their own account or by an employer, or who, unlike the employed and the unemployed, are not in the labour force. The employed have jobs, although some may be temporarily absent from work because of illness, strikes, bad weather, etc. Those not in the labour force do not want to or cannot participate in the LABOUR MARKET. They include housewives, students, retirees, etc.

Because of the unemployment problem and all the evils that it brings about, the large youth population is often considered more a burden than a boon for the nation by the general people, but not so by the policy makers who continue to remain optimistic and inspire others into believing that it is this youth who will change the future of the nation for the better.

5.4

RECOMMENDATION

55

The trust for modernization in African countries has produced a variety of unintended consequences which created in-coherences in the social and psychological worlds of large number of citizens. Cyclical unemployment is caused by the economic downturns. When the economy improves the unemployment rate falls. In this case, is it recommended that government should be more concern about the improvement of nations economy. -Structural unemployment is caused by changes in the structure of the economy. I.e. a technological shift can replace jobs that used to be held by often low skilled or unskilled workers. It recommended that people should engage themselves constantly in training and retraining in order to meet the ever-changing need/demand in the labour market. -Frictional unemployment is caused by those who are temporarily unemployed moving from one job to another. At any one time there will be some who are frictionally unemployed. The researcher hereby recommend that people should be satisfied with their current employment to avoid move about. -Seasonal unemployed are those such as grape pickers who are unemployed for half the season because there is a lack of demand for

56

them in a particular season. When the season of the job elapses, people should not relax but move to a different job. -Long term unemployed are those who have been out of work for 18 months or longer. It is usually extremely hard for those people to gain employment. It is recommended that such people should learn a particular trade to later become self-employed.

57

REFFERENCES When persons e number of citizens. When persons experience extreme social dislocations and anxieties with regard to legitimate expectations and values, they often are in APPENDIX 1 COVERING LETTERDepartment Administration Polytechnic of Business Akwa Ibom State

Continuing Education Centre Km 3 Refinery Road, Effurun-Warri Dear sir/ madam, QUESTIONNAIRE You will no doubt share with me the conviction that a Higher National Diploma student in the above department is researching on unemployment syndrome among Nigerian graduates: effects and solution Please take the little time required to complete the attached questionnaire. Your responses are to be kept in the strictest confidence and share under no circumstances to be divulged. They are to be combined with those of other subjects to get composites and averages for writing up the researchers HND project. Yours sincerely, KATE OMEH.

58

APPENDIX II: QUESTIONNAIRRE Unemployment Syndrome among Nigerian graduates: Causes, effects and solution. PERSONAL DATA 1 2 SEX: MALE Marital status Divorced 3 FEMALE Married Widowed Single Separated 21-30 years Above 60 years

Age : Less than 20 years 41-50 years

31-40 years 4

Highest Education Qualifications

Senior School Certificate H.N.D. First Degree

Diploma

O.N.D Second Degree _______________

Professionals Qualification (state which) (5) Status: Senior Staff Junior Staff

DATA ON UNEMPLOYMENT SYNDROME (4) Unemployment is a state in which an able-bodied individual is actively seeking, but is unable to secure, any gainful employment.

59

Yes

No

(6) Is it possible eradicate unemployment totally from the society? Yes Yes No NO (7) Does politics contribute to the cause of unemployment?

(8) Can government do something to reduce the rate of unemployment in the country? Yes (9) Is unemployment a social problem? expectation Yes No (10) What are the steps to control unemployment in the country? Steps i. Establish goals and standard for al the unemployed graduates No

ii.

Implementing the plan

iii.

Measuring performance against goals

iv.

Evaluating

v.

Taking action if things are okay

vi.

Taking corrective action if things are not okay

vii.

Modifying plans

viii.

Modifying operations

60

(11)

Is Official Estimates, one of the means of measuring unemployment? YES

No

(12)

Can we say that unemployment is one of the causes of youth disturbances in the community?

Yes (13)

No

What are the different types of unemployment that is prevalence in the country ?

TYPES i. unemployment ii Employee Incentives (14) (15) Can Economic Growth cause unemployment? Frictional

YES

NO

Does unemployment leads to homelessness and loss of self-esteem? YES NO

(16)

Can unemployment leads to sickness and mental disorder? NO YES

(17)

Does government regulation cause unemployment? YES NO Is there any relationship between poverty, unemployment and growth? YES NO Can unemployment be caused by an individual? NO YES

(18)

(19)

(20)

Unemployment may impair the functioning of families NO YES

61

BIBLIOGRAPHY Agbadudu, A.B. (1994). Statistics for Business and the Social Science Benin City. Uri Publishing Limited.

Agenlejika, G. (1990). Auditors and section 359 (2) of the companies and Allied Matters Decree (1990), The Nigerian Accountant, Volume xxiii, number 4, p-15.

Alabi, S.A. (1990).Auditing and Appraisal of oil and Gas Reserves. Paper presented in the Institute of Chartered Accountants of Nigeria Silver Jubilee Seminar on Accounting in the oil industry, November 8 &

62

9, pp 1-10.

American Institute of Certified Public Accountants (AICPA) (1981). Statement on Auditing Standards (SAS), no. 39: Audit Sampling New York: AICPA

AICPA (1983). Statement on Auditing Standards. No. 47: Risk and Materially in conducting an Audit. New York; AICPA

AICPA (1988). Statement of Auditing Standards, no. 55: Consideration of the Internal Control Structure in Financial Statement Audit. New York; AICPA

Anthony, R.N. (1991). Planning and Control Systems: a Framework for Analysis. Harvard: Division of research, Harvard Business School.

Ouchi, W.G. (1978). The Transmission of control through Organizational Hierarchy, Academy off Management of Management Journal, Volume 21, 173-192.

Paula, F.C. and Attwood, F.A. (1993). Auditing Principle and Practices.

63

London: Pitman

Podsakoff, P.M., and Dalton, D.R. (1987). Research mythology in Organizational Studies, Journal of Management. Volume 13, Number 2,419-441.

Selltiz, C., and Wrightsman, L.S., and Croh, S.W. (1976). Research Methods on small Relations New Yok: Rinehart and Winston. Spiegel, M.R. (1992) Schaums Outline of theory and problems of Statistics in S.R. Units. New York: McGraw-Hill book company Stone, E,. (1995(. Research Mathology on organizational Behavior Santa Monca, California: Good Year Publishing Company Incorporated. Yomere, GO., and Algbonifoh, B.A. (1999). Research Methology in social sciences and Education. Benin City; Uniben press.

]http://www.google.ca/search? hl=en&q=CAUSES+OF+UNEMPLOYMENT&meta= http://www.google.ca/search? hl=en&q=CAUSES+OF+UNEMPLOYMENT&meta= http://www.bizcovering.com/Business-and-Society/Causes-ofUnemployment.42495

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Unemployment - Consequences Of Unemployment

http://goliath.ecnext.com/coms2/gi_01994732102/Employment-in-Nigeria-Brief-Article.html http://www.photius.com/countries/nigeria/economy/nigeria_ec onomy_unemployment.html

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