F University of Nigeria Research Publications

Aut

hor

AGADA, Emmanuel Adejoh PG/MPA/88/6664

Title

Managing Public Enterprises in Nigeria: A case study of Benue Cement Company Limited, Gboko Benue State

Facu

lty

Social Sciences

Dep

artm

ent

Public Administration

Dat

e

November, 1990

Sign

atur

e

MANAGING PUBLIC ENTERPRISES I N NIGERIA:

A CASE STUDY OF BENUE CEMENT

COMPANY LIMITED, GBOKO

BENllE STATE.

AGADA, EMMANUEL ADEJOH

~ ~ / M ~ ~ / 8 8 / 6 6 6 4

A THESIS/PROJECT SUBMITTED TO THE SUB-DEPARTMENT

OF PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT,

UNIVERSITY OF NIGERIA, NSUKKR, I N PhRTIAL

FULFILMENT FOR THE AWARD OF THE DEGREE OF

MASTER OF PUBLIC ADMINISTRATION

(M.P.A.)

TABLE OF CONTTPtTS

CERT IF1 CLTI ON

APPROVI\L PAGE

4 DEDICATION

)( PXKNOWLEDGEPIENTS

LIST OF Tt'\BLES

LIST OF MAP/cHPRT

AB STR;iCT

CKIPTER ONE

I n t r o d u c t i o n

; Background t o t h e Problem ... ... I S t a t e m e n t of t h e Problem ... . . .

Hypotheses . . . ... . . . 1 O b j e c t i v e s of S tudy ... . .. . C e

, S i g n i f icc7nce of t h e S tudy ... . * b

Methods of Data C o l l e c t i o n ... ... The P o p u l a t i o n ... . . . . . . Thc Sample . . . ... ... P r i m m y Source of Data C o l l e c t i o n i t r

Secondary Source of Datz ,. ... ... Data f m a l y s i s ... . . . . . . F i e l d E x p e r i e n c e s Dur inp 1)atn Collection

( D e f i n i t i o n of Terms ... ... ...

T/\,DLF, OF CONTTVTS .-- - (CONT'D)

CHAPTER ONE ( CONT ID)

Arrqngement of t h t Ch-lpters . . . ... Refe rences . . . . . .

CH,?PTER TWO

L i t e r a t u r e Rcview and 'i'l:~ o r t > t i c g q l F r~mework 26

The Concept of Mannge~nent . . . ... 26

Management; Approaches ~ 9 9 ... 34

The E m p i r i c a l o r Case Study 1,ppronch . . . Humnn Behaviour ~ p p r o n c h ... ... The Systems lipproach ... . . . The Concept of p u b l i c E n t s r p r i s e s . . . C ~ t e g o r i e s of P u b l i c E n t e r p r i s e s ...

'l

The IIRnison DcEtrefP ... ... The T h e o r e t i c a l Frnm~worl; ... ... Refe rences . . . ... CHFPTET THREE

H i s t o r i c a l Dcv?loprn~nt - m h 1 0 r ~ ~ n i z n t i o n n l

S t r u c t u r e of ptnuc: Cement Cnlnpgny L imi ted

H i s t o r i c a l Development ... . . . Company Phi losophy r n d O b j e c t i v e s . . . Locn t ion . . . ... The Produc t ... . . . 60

~ o r k e t i n g nnd S a l e s . . . ... 70

o r g n n i z - t i o n S t r u c t u r e a * & ... 71

F ' inance/Adminis t r ,~ t ion D i v i s i o n ..* 77

T e c h n i c a l D i v i s i o n ... ... 79

TABLE OF CONTENTS (cONT'D)

CFlAPTER T H R m (CONT'D)

Corn~nercial Division ... ... ... The Company Secretary/ l,egal Adviser ... lief erences - a . . . . . . .

CHAPTER FOUR ---- Presenta t ion , Analysis of Data and Test of Hypotheses . * . ... ... References . . . ... . . .

CEAPTER FIVE -__I

Summary of Findings, Recommendations and ... Conclusion . . . . . . ... Summary of Finding ... . . .

Recommendations ... ... ... Conclusion ... ... ... Bibliography . ... ... AFPENDIX - Le t t e r of I d e n t i f i c a t i o n ...

- Quest ionnai res ... . . .

PAGE --

(i)

CERTIFICATiON -------.--- AGADA, EMMAMJEL ADEJOH, a pos tg radua te

Student i n t h e Sub-Department o f p u b l i c Administra-

t i o n and Local Government and with R e g i s t r a t i o n

Number ~~/MP~/88/6664, has s a t i s f a c t o r i l y completed

t h e requi rements f o r course and r e s e a r c h work fop t h e

degree of Master af pub l ic Adminis t ra t ion,

The work embodied i n t h i s THESIs/PROJECT i s

o r i g i n a l and has n o t been submitted i n p a r t o r f u l l

f o r any o t h e r d2ploma or degree of t h i s o r any other

Univers i ty .

( i i )

We hereby approve t h i s r e scz rch jjrc j c t

submit t c d by :,gad3 , Emmnue 1. /,di :j oh -;;c 'i;l:~c! Sub-

Dep~.rtrncnt of p u b l i c A d m i n i s t r z t; i o n .- :?l:i L!?c,? 1

Government, TJniversi t y of Nigeri:? , Nsul,:;:.:,.

DR. C . (HEAD OF DEPARTMENT)

( i i i ) ,

of her l a t e h u s b ~ n ~ q -r? b r o u ~ h t up i n spiJ;c (. !l

d i f f i c u l t i e s .

I owe so much t o many people i n t h e accomplishment

of a study of t h i s nature.

My expression of deep g r a t i t u d e goes t o Almighty God

f o r t h e var ious ways Iie provided a l l my needs, and f o r t h e

guidance throughout the dura t ion of t h e course.

I am g r a t e f u l t o t h e Management of t h e College of

Education, Ankpa f o r grant ing me study leave t o pursue

t h e course.

I a m g r a t e f u l t o my f i r s t Supervisor, D r . G. 0.

Nwankwo f o r approving t h e research t o p i c and f o r his

i n i t i a l guidance a t t h e e a r l y s t a g e of t h e work.

To Dr. C. 0. Ejimofor, my second Supervisor, I am

most g r a t e f u l f o r accepting t o supervise t h e work a f t e r

t h e departure of D r . Nwankwo. D r . C. 0. Ejimofor ts

wi l l ingness t o accept me, and h i s humane a t t i t u d e i n

a t t end ing t o me even ou t s ide o f f i c i a l hours were sources

of encouragement t h a t motivated me very s t rong ly t o

complete t h e work.

H i s guidance and c r i t i c a l comments were of immense

c o n t r i b u t i o n t o t h e success of t h i s work. r

b

I am g r a t e f u l t e t h e Management and s t a f f of Benue

Cement Company Limited Gboko, f o r t h e i r co-operation

period of t h i s study when I committed our meagre finan-

c i a l resources i n t o it.

To my s i s t e r s Peninnah, Rebecca, Aladi, Enechojo

and Esther , and t o my brothers Arome, Job and David

I am g ra t e fu l f o r a l l t h e i r concern i n t he course of

t h i s study.

Last ly, but i n no way the l e a s t , I am gra t e fu l t o

M r . James Y, Ichado f o r typing t h e work.

- EMMANUEL A. AGADA UNIVERSITY OF NIGERIA, NSUKKA .

FEBRUARY , 1 990

LIST OF TABLES

PAGE - 85

TABLE

Sex Dist r ibut ion of Respondents

Dis t r ibut ion of Respondents by Qua l i f i ca t i on on Appointment * * e

Sex Distribution of Company Managers

Dist r ibut ion of Company Managers by qua l i f i ca t i on on Appointment -.. Dist r ibut ion of Company Managers by Duration they have been heading t h e i r Divisi ons/Deprtments ... Responses an the Method of Staff Recruitment . . . *.. Responses on the 'slelfare Services enjoyed by s t a f f ... ... Responses on Staff who have under- gone Training . . . ... Responses on those sponsored by the Company ... e r n . Responses on prompt Payment of Salary

Responses on Normal Promotion ... Responses on attendance t o ~ o m ~ l a i n t s / g r i e v a n c e s ... ... Responses on Method of Staff Recruit- ment ... ... .. Responses on the Welfare Services provided by the Company . . . Responses on whether the Company has any Training Programme a. . Responses on S t r ike Action ... Responses on the working Relationship between Manazement and Workers ...

LIST OF TABLES (cONT'D)

TABLE - I 8

19

Responses on required Working mate r i a l s

Responses on regu la r breakdown of equipment . .. am. * * B

Responses on qua l i f i ed Technicians . m e Responses on l ack of needed raw mate r i a l s f o r production ... . . . Responses on obtaining t h e required raw material s .. e m *

Responses on break-down of equipment . . . Responses cn q u a l i f i e d Technicians ... Responses on i f the company i s producing a t f u l l capaci ty ... Responses on i f t he company is producing a t f u l l capaci ty . . . ... Responses on any case of ~mbezzlement/ f raud ... ... m a *

Responses on i f the Company h a s an e f f i - c i e n t Accounting system . . ... Responses on any Financia l Loss . . . Responses on any problem(s) from t h e Community ... ... . ..

\' " J

LIST OF I:JIAP/CHAHT - <

Map of Benue State Showing Gboko

Organisational C h x t ...

PAGS .-a

... 69

0.. 74

T h i s s t u d y p r t n c i p n l l y s e ~ k s t o exnmin~s 1:.

management of pub1 i c e n t e r p r i s e s i n NiL:f>ri-i. 'I", c n s e

s t u d y i s b-st d on t h e >enup Ccrnimt rlorxp-iny 1,1:1ril: (:

Gboko. Thc i n t c r 1 7 s t o f t h e r e s e 2 r c h ~ r i n t i 1 , l~I-l,j c t

of Managing P u b l i c E n t ? r p r i s e s w ? ~ ; ? roused l2.f L '

p e r s i s t e n t c o r n p l n i ~ + ; s ~ g q i n s t ; t h e i r non-perf .:& . ncc 7s

n r e s u l t of m i s - m , n n ~ c n c n t . The s t u d y lo9kr: I? c 111

t h i s o rgan izL i kion i s m ~ n n g e d w i t h a view LC) (', t ,?r i l ; ining

t h e f a c t o r s t h ~ t c o n t r i b u t e t o o r 2 f f e c t pi1rfc1r.. w e i n

N i g e r i a n P u b l i c (-n tc r p r i s c s ,

I n u n d e r t ~ k i n g t h i s r e s c n r c h , question;! !- 7, werc

q d m i n i s t d r e d Trnon:: t h e ccmp3ny m3nngt.r:; ?nc7 1 L-

comp7ny s t a f f . n11ri .n~ t h ~ p e r i o d of d ? t ? c s l l t. c t i o n

which w ? s don? h:~t;w.;~en 7 t h and 22nr! Deccrnb. r, ,1989 t h e

compmy hrd n t o t q l w ~ r k f o r i r o f 1,400 enplcy )..a.

T h i s f i g u r e e x c l u d e s c a s u a l 1 2 b o u r c r s ~ h n ( i j . '

q u a l i f y ? s respondents b e c a u s e t h c y l q c k e d s u i T i - c i e n t

i n f arm? t ion a b o u t L i ~ i cnmpnny.

Thc s implt !i:incJom sampl in m,:t hcd 1 b 7 r 1 s l ~ l c , J h\c,cluse

of i t s s u i t r \ b i l i t y . From t h e Divisions/D:p -r - v t s

randomly s e l ~ c t e d , ttit. s t ~ f f l i s t s wcrc i sed ;: ? b

s e l e c t e d from cnch ~ i v i s i o n / ~ e p a r t n i o n ' , !. ,\rl.ic-ir s--lmplcd.

( xi) Thus 300 employees w2re s e l e c t e d f o r t h i c s tu i ly ,

, ? T h i s f i g u r e w ~ s rmdc up Of 24 mqnngers 2nd 276 : ~ , , i ~ t r

company s t a f f i n t h o s c ~ i v i s i o n s / D e p a r t m c n t s ,

The r e s p o n s e p r t t e r n s s h o w d t h ~ t t h e ~ c l l' :w

m a t t e r s o f t h e employres i n t e r m s of hous in~ : , Lr*. . L S-

p o r t , t r a i n i n g ~ n ( 1 m i d i c n l c p r c m o n q s t o t h : r:; .,;OTP

p r o p e r l y nddresscd by t h e m7n?gcrnent,

The r e s p o n s e s showed t h n t t h e r n ~ t c r i ~ l - I , , :

f i n p n c i n l r e s o u r c e s ? v n i l ? b l e i n t h ~ cornpFny , ~ , , r ~ . - p r o p e r l y rnann,:cd, F z t h e r m o r ~ . , t h c prob1t .m - L - L ~ ; : ils

from t h e e x t c r n f l l c;nvircnment e s p e c i ~ l l y t , h ~ ~ c ~ ~ ~ m ~ : l i f y

i n which t h c compptny i s l o c a t e d a r e nde(wqtc1ly t :~c l<lcd

by t h e mnn2gernent , :; :;hawn%y o u r r e s p o n s e p - > t h L a r i r,,

From t h e e m p i r i c - ( 1 d n t ~ g ? t h c > r ~ d , t h c s t u f i r ~ ) , T s

shown t h n t rnc3nrlgcmcnt of rlv? il.?hl.i$ humzn, m - t 22- i l \nd

f i n a n c i a 1 r e sourcc , s i . ~ t h e enterprise c o n t r i b u i L . i- t h e

a t t a i n m e n t of i t s o b j e c t i v e ( s ) . The e x t e n t t l i.lt~i.ch

t h e problems n r i s i u ! ; from t h e e x t e r n ~ l m v i r o n r i7-;; W P ~ C

gdequn te ly t ack1 ccl 31.~0 c o n t r i b u t e d t o t he ? c j-t xl;.:!l r ? t

of e n t e r p r i s e o b j ~ c t F v e ( s ) . Thus, the compnny '(1 u

been mmnged i n t c r w s of p roduc ing ~ n d m9rk:>iri.i? Lcp

q u a l i t y p r o d u c t s f c r t h e p e r i o d u n d e r s t u d y ; ill: L i s

1980 - 1988.'

l i t c r : ? t u r e r ev iew wc observed t h q t m q s t Nj..:;:-.:l-.5:-\n

p u b l i c e n t e r p r i s e s were n o t p e r f n r r n i n , ~ b,.;cL : . i : _ : ~ : ;-:f

poor m,-nagemcnt, Our e m p i r i c n l d ? t ? h- s r;'i.l::;.,.- a :I

t h a t t h i s e n t e r p r i s e i s pe r fo rmin8 due t(-) i.!rc pi:>r

mqnageri~ent . The p l m s i b l e c o n c 1 . u ~ i . ~ n i s -,;h -;; t h e

f a c t o r s t h 2 t enh:mcc t h e rn?n,ngernent ?nd n.. ~-:'i:!x'i~!~ncc

i n o u r case study were n o t i lv2 i lnb lc i n thc:::,c,c_: t . .ntcr-

p r i s e s earlier c i t e d i n t h o li-tc:rntur-e r:2vLL:i,!, For

them t o be ni:1nL7~l;ed 7,nd p r o d u c t i v e thosc: fr.c; . ; S.,S t h ? t

enhnhced mnn.r:::rncrI.t nnd p r o d u c t i v i t y hnvi: .i;i 1:;c

imtroduced.

CHAPTER ONE

I N T R - O D U C T I O N

T h i s study pr inc ipa l ly seeks t o examine the manage-

ment of Public Enterpr ises i n Nigeria using Benue Cement

Company a s a c a s e s t u d y . This chapter deals w i t h the

background t o t he problem. I t is approached from the

a r t i cu l a t ed concern of governments over the management,

usefulness and performance of public en t e rp r i s e s i n

Nigeria. The disenchantment w i t h the degrading standard

of public en te rpr i ses i s a testimony of t h e i r poor perfor-

mance which could be a t t r i b u t e d t o t h e i r poor management.

The chapter f u r t h e r ou t l ines t he statement of t he problem,

t he guiding hypotheses, objec t ives of study, s igni f icance

of study, research methodology, f i e l d experiences during

data co l l ec t i on and de f in i t i on of terms. It ends w i t h the

arrangement of the chayters.

1.1 Background t o t h e Problem 6

The Management of public en t e rp r i s e s has been an

i s sue of much concern t o government and even the general

public. T h i s is because public en te rpr i ses a r e es tabl ished

by governments t o accomplish c e r t a i n object ives. Such

object ives range from the provision of e s s e n t i a l public

'services l i k e water, e l e c t r i c i t y , medical f a c i l i t i e s t o

creat ion of job opportunit ies among others. Thus we have

en te rpr i ses l i k e t h e Public U t i l i t i e s Board, National

E lec t r i c Power Authority (NEPA), Health Management Boards

and the Nigerian National Petroleum Corporation t o render

such services.

Furthermore, the ra t iona le f o r es tabl ishing Public

en te rpr i ses i n the developing countr ies and Nigeria i n

pa r t i cu l a r i s t o accomplish the predominant respons ib i l i ty

f o r developing and managing t h e i r economies, In t h i s

regard the necessary fac tor f o r development and growth

t h a t should always be s t ressed is management, A s pointed

out by two scholars:

!'Management i s viewed a s t he s ing le most c r i t i c a l soc i a l a c t i v i t y i n connection w i t h economic progress. Physical, f i nanc i a l and manpower resources a re by themselves but passive agents, they must be e f f ec t ive ly combined and co-ordinated through sound, ac t ive management if a country is t o experience a subs t an t i a l , l e v e l of economic growth and developmentu

An examinatiowof the management of public enter-

p r i s e s i n Nigeria is of c ruc i a l importance, T h i s is

because management, especia l ly e f f ec t ive management

leads t o goal attainment (product iv i ty) , growth, v i a b i l i t y

and the overa l l development of a nation. The importance

of management and managers i n present day organizations

cannot be over-emphasized. It i s the manager t h a t

determines t he appropriate technology required and the

bes t way t o e f f i c i e n t l y and e f f ec t i ve ly u t i l i z e a l l types

of resources (physica l and human) .2 Experience i n

Nigeria has shown t h a t i n s p i t e of the abundant na tu ra l

resources, most organizat ians perf- below standard and

expectat ions, One of the reasons f o r t h i s i s t h a t manage-

ment which i s a ' s i ne qua nonl f o r development i s lacking.

A c r i t i c a l look a t the performance of some public enter -

p r i s e s i n Nigeria w i l l show g la r ing evidences of f a i l u r e

even when the en t e rp r i s e i s being managed by the govern-

ment, The f a i l u r e s of the Nigerian Airways, Nigerian

Railway Corporation, and National E l ec t r i c Power Authority

(NEPA) are c l ea r examples of poor management r e su l t i ng i n

i n e f f i c i e n t and ine f f ec t i ve performance. For instance

between 1960 and 1966 the Nigerian Railway Corporation

alone had t h i r t e e n i nqu i r i e s i n to i t s a c t i v i t i e s . I n

1965, it had a d e f i c i t of $47 mil l ion and t h e World Bank /

described i t s f inantes a s l ld isas t rous t l . 3

Consequently, the re i s a continuing concern i n

Nigeria over t he "management, e f fec t iveness and usefulness

of public en te rpr i ses as instruments of development and

changeu4 i n order t o accomplish defined National goals.

As compared t o the s i t u a t i o n i n some developed indus t r i a -

l i z e d economies l i k e America, public en t e rp r i s e s cons t i t u t e

a l a r g e p a r t of the publ ic sec to r and they have been

* r e f e r r ed t o as those autanomous bodies which are e i t h e r

p a r t l y o r f u l l y owned by government t o provide public

s e rv i ee s or u t i l i t y , Some a re es tabl ished t o provide a

coed o r service which, although, e s s e n t i a l , cannot be

provided by p r i v a t e finance. Examples a re the s t e e l

complex, cement Companies and many others . Public enter-

p r i s e s could therefore be regarded as government agencies

f o r s o c i a l and economic development and t h e i r management

vis-a-vis performance i s c r u c i a l t o our economic survival

n s a Nation.

." With t h i s r e a l i z a t i o n , the Federal and S t a t e Govern-

ments have been es tab l i sh ing public en t e rp r i s e s a s well

as s e t t i n g machinery i n motion t o re-s t ruc ture and review

pub l ic cn te rp r i ses with a view t o making them viable and

r e s u l t or iented. The current p r i va t i z a t i on and commercia-

l i z a t i o n of publ ic en te rp r i ses i n Nigeria by the Federal

Yiil i tary Government i s i n accordance with t h i s object ive.

Furthermore, it i s i n ac,Qrdance with t h i s ob jec t ive t h a t :

even now one of t h e major areas of i n t e r e s t of the public service Review Commission of Nigeria i s discovering ways and means by which Public enter- pr ises can be made more e f f ec t i ve f o r developmentl1. 5

T h i s ob jec t ive w i l l not be achieved i f those who a r e

charged w i t h the r e s p o n s i b i l i t y of managing these en tc r -

p r i s c s do not apply t h e concept of managerial e f f e c t i v e -

ness , T h i s r e f e r s t o thd e x t e n t t o which a manager

:chieves t h e output requirements of h i s p o s i t i o n by what

h e o r she achieves r a t h e r than by what he does, I t i s

[tlso those s e t s of managerial a c t i o n s t h a t a r c op t iona l

f a r i d e n t i f y i n g , a s s imi la t ing and u t i l i z i n g i n t e r n a l and

e x t e r n a l resources with t h e aim of sustaining t he func-

t i o n i n g of the u n i t f a r which t h e manager i s responsible .

The c3mphasis i s on r e s u l t s , t h a t is , what a manager can

produce, given t h e ava i l ab le resources. The manager per-

forms c e r t a i n managerial func t ions of h i s p o s i t i o n which

include planning, ~ r g a n i z i n g , d i r e c t i n g , co-ordinating,

con t ro l l ing , leadership e t c . 6

Although we have had a number of highly competent

managers and technocra ts running t h e a f f a i r s of some of

our publ ic e n t e r p r i s e s , t h e i r e f f o r t s a t making a success

of t h e i r assignments have some times becn f r u s t r a t e d e i t h e r

by the wrong economic p o l i c i e s , inadequate c a p i t a l ,

p o l i t i c a l in t e r fe rence or inadequate t echn ica l o r m~magc-

rntmt support . AS pointed ou t by Bethel:

'!an en t e rp r i s e may possess t h e most modern p l an t 2nd equipment, a highly s k i l l e d and experienced labour and s a l e s fo rce , ample f i n a n c i a l resources and an adequate source of raw mater ia ls y e t f a i l t o p2rform e f f i c i e n t l y . There a re many reasons but the most important reason i s paor managemontbs7

Many of the Nigerian publ ic en t e rp r i s e s have not

performed e f f i c i e n t l y over the years a s evident i n the

number of commissions s e t t o probe some of them. S t a t c

owned en te rpr i se i n p r a c t i c a l l y a l l developing countr ies

have over the years performed below expectat ions, For

example a 1985 survey of one hundred state-owned

en t e rp r i s e s i n Ghana revealed t h a t t h e performance of

most of thEm a r e charac ter ized by l o s e s , low produc t iv i ty

and increas ing l i q u i d i t y problems.8 The Ghana Airways

Corporation f o r ins tance has had twenty-two Managing

l ~ i r e c t o r s i n only twenty-six years. Favouritism and

nepotism ensured t h a t most of the state-owned en t e rp r i s e s

management pos i t ions came t o be occupied by incompetent

and quest ionable func t ionar ies who were only i n t e r e s t ed i n

t h e comfort and p r e s t i ge at tached t o t h e i r pos t s , - , The Nigerian s i t u a t i o n today may not be a s bad a s

t he Ghana s i t u a t i o n described above, but t he t r u t h s t i l l

remains t h a t a number of our s t a t e owned en t e rp r i s e s have

a l s o performed v e r y poor ly f o r more o r l e s s t h e same reasons .

From t h e foregoing , t he poor performance of p u b l i c

e n t e r p r i s e s eould be a t t r i b u t e d t o t h e i r poor management,

For t h i s reFison, t h i s s tudy has been designed t o examine

haw pub l i c e n t z r p r i s e s s r e managed, namely t h e k n u e

Cement Company Limited. We want t o examine t h e e x t e n t t o

whieh t h e company i s f r e e f&om t h e a l l e g a t i o n of non-

performance. By looking a t t h e p roces s of t h e company's

management, i t s o r g a n i z a t i o n a l s t r u c t u r e , employees,

f i n a n c i a l and o t h e r r e sou rces management, we s h a l l examine

t h e e x t e n t t o which t h ? company has been e f f e c t i v e l y

managcd between 1980 - I 988.

1 . 2 Sta tement of t h e Problem 7- --.-=--

My i n t e r e s t i n t h e s u b j e c t of managing p u b l i c e n t c r -

p r i s e s was aroused by t h e i r poor performance. Of t sn one

h e a r s t h e acronym "Never Expect Power A l ~ n y s ' ~ r e f e r i n g t o .. t h e cons t an t b lackout by t h e Na t iona l E l e c t r i c Power

Author i ty (NEPA). The ou t of s t o c k (O/S) syndrome i s

always a s s o c i a t e d w i t h l a c k of drugs i n our p u b l i c h e a l t h

i n s t i t u t i o n s . The p r i v a t i z a t i o n and commercia l izat ion d r i v e

o f t h e p r e s e n t m i l i t a r y a d m i n i s t r a t i o n a s a r e s u l t of

t h e i r poor performance a l s o c o n t r i b u t e d t o t h a t i n t e r e s t .

8

The s t u d y r ~ i s o s b- f o l lowin17 problems:

( i ) Whnt a r e t h e f : ,c tors t h l t n r c responsible

f o r t h e minngcm,-)n t - nil p e r f ormqnce o r

o t h e r s i s e of th ; . cornp?ny9 Dol)s t h e ou?l i t ,y

of p e r s o n n e l i n tcms o r q u 7 l i f i c ; l t i o n coq-

t r i b u t e t o t h e m ~ n n g e ~ n e n t o f t h c company?

m o t i v z t e t h e cmployses i n o r d e r t o e n s u r e

produc t i v i t y ?

( i i i ) How h a s t h e m z n a p r ~ c n t been 7hlc t o utilize-

?vn i lnb lc> ma t ,> - i ? l :ind f i n n n c i n l r e s o u r c e s 'h

enhance produc t i . v i t y ? 2nd;

( i v ) Whnt mnnngr_ment s t y l ; , if any , hns b T p n a d o p l cj

by t h e company tc.1 ensur t - perform,?^ cc...z

"2 hypotht * i s i s 9 s t ? t c m e n t of t h e o b j e c t of r c s c a r c h which may bc deduced from e x i s t i n p t h e o r y :)nd '1 which w i l l luLid t o a n e m p i r i c n l t e s t .

9

The a u t h o r s a!< n t f u r t h e r t o s ~ y t h 1 t .;.I, i *- i . s s e n t i ~ 1

f o l l ~ w i i ; ~ ; h y p o t h e s r s were used to , : . ~ ? : i ~ : ; t h i s s tudy :

The a t t a i n m e n t of e n t e r p r i s ~ ~ b j i : : c i ~ i v ~ ( s ) i s

dependent on human r e s o u r c e mpn? ; , . r r ; t

P r o p e r ht7rmoniznt ion and u t i l t ; : ) ;,i r.1 o f t h e

m z t e r i 7 l r e s o u r c e s i n nn c n t c rp,>i s b . c o n t r i b u t e s

t o i t s perform8nce,

Finr;nci?l. mnnaprnent i n Fn ei?t --rnr '_:,(> l e n d s t o

i t s ( c n t e r p r i s e ) c o a l a t t ? i n m c n t ,

The pcrformnnce of ?n e n t e r p r i z ~ , rids upon t h e

~ n d t:?ckli-. c e r t z i n cons t ; rz i.n?;; f .iq.' . i t s extcrnicll

environm.2ni;.

O b j e c t i v e s of S t u d 2 ---.L-----

T h i s s t u d y s e e k s t o nchieve tl:;c .fo?:i.owinl: a b j c c t i v c s :

Gener? l O b j e c t i v e :

The q i \ncr -1 ob j c c t i v e of t h i s :; i , i ~ ~ ; ~ ~ is t o ernpir i -

i n Ni!;eria, u s in r : Renue Cement C:. ap ny Limi ted

qs o c C , s e s tudy .

b) S p e c i f i c O b j e c t i v e s

The Sp c i f i c o b j e c t i v e s - r e :

i ) To cx7mine e m p i r i c n l l v h:~w m-r1 . '-it c ? n

I _ c o n t r i b u t ~ t o t h e p e r f o r m ~ n c c . (:

compC-iny by m o t i v a t i n g o r nddrc-:.sr: ; , l f

and prlxluc t i v i t y ; and

i i i ) To e m p i r i c a l l y e s t a b l i s h i f e:c1,~.r -1.

nnd performance o f t h e company.

I . 5 S i g n i f i c Y : l c e of t h c S tudy ---.A s -------

Th* s i r i n i f i c a n c e of t h i s s t ~ ! ~ , c L 3 be s p l i t

i n t o f o u r u n i t s .

F i r s t l y , t hcl usc='fulne ss of :> ; ' ;,\I(: j~ i s

measured by how mucl: i t h a s made 131::i- c o n t r i b u -

t i o n t ; ~ .he c x i s t i n r : knowled-;c ~ n d ' ' L r c ) t u r e

on thcl sub j c c t of i n v e s t i g a t i o n .

T h i s e f f o r t i s s i g n i f i c a n t because it i s t h e f i r s t

- a t tempt t o s c i e n t i f i c a l - L y examine t h e s u b j e c t of managing

p u b l i c e n t e r p r i s e s i n N ige r i a wi th s p e c i a l r e f e r e n c e t o

dcnue Cement Company Limited. I t i s y e t unknown t o me

i f qny prev ious a t tempt had been made e i t h e r by a s t a f f 09 - t h e company o r any o t h ? r o u t s i d e r e sea rche r i n t o t h i s

aspkct . Secondly, t h e r m p i r i c a l f i n d i n g s and t h e i n t e r p r c - . t a t i o n of t h e d a t a p l u ; t h e recommendations based on t h e

i n v e s t i g a t i o n w i l l c e r t a i n l y be of h e l p t o managers of

our p u b l i c c n t c r p r i s e s . This will enable them t o r e f l e c t

on t h e i r management s t y l e s and r e d r e s s t h e c o n s t r a i n t s

- t o t h e b e t t e r p ~ r f o r m a n c e of our p u b l i c e n t e r p r i s e s . I t

will f u r t h e r he lp t o expose t h e v i r t u e s of e f f e c t i v e

managers of our p u b l i c e n t e r p r i s e s . Th i rd ly ,

t o t h e r e s e a r c h e r , t h e s tudy i s a means of exposure t o

r c a l rnanagemcnt environment, t o observe and a p p r e c i a t e how

p o l i c i e s a r e made executed towards t h e a t t a inmen t

of o r g a n i z a t i o n a l goa l s . From t h e empi r i ca l knowledge

2cquircd and t h ~ p r a c t i c a l exper iences ga thered t h e i

r e s e a r c h e r would be i n :i p o s i t i o n t o recommend modern

management t echniques t o f u r t h e r enhance e f f e c t i v e b

mnnagerncnt and b e t t e r pt?rf ormance of our p u b l i c e n t e r p r i s e s .

Four th ly , t h e importance of t h i s s tudy could be seen i n

t h e f a c t t h a t it could s t i m u l ; ? t ~ fu r th (5r ~:: : : - ;errch

of a. wider scopc. by e i t h e r cmployees o r -I;:- 2 ccrnpany

o r o t h e r r e sea rch bodies . Furthermore, i,!1 t:tudy is

s i g n i f i c n n t becnuse it i s comini: :?t 71 t i r j i'#c rovcrn-

ment is p r i v a t i z i n g and commercis l iz in wr p u b l i c

e n t e r p r i s e s clue t o poor manal;enent pe r f .;LL ;-tee. It i s

t h e r e f o r e important t o know how p u b l i c ( ; n t r r p r i s ~ s h ~ v e

been managed, t h e c m s e s of poor perform cc o r o ther -

wise and how t h i s can b e improved upon t.-!nhance deve-

3.3pment A

1.6 Methods of Data C o l l e c t i o n . . -- - ~ ~ c o r d i n g : t o Chava Nachimins nntl I)-vS !T-chimins,

S c i e n t i f i c mcthodolo,:y i s 'a system of l->x:)li c i t r u l e s

and procedures upon which c la ims f o r kno\1l_ l ;< -e Pre

10 e v ~ 1 u a t e d ~ P . Both w t h o r s f u r t h e r exp l*+ ' t h a t t h e s e

IVrules nncl procedures a r e c o n s t a n t l y I r o ~ r . v, :iPT 'I i s

s c i e n t i s t s con t inue t o search f o r new r n ~ c. '., of

obse rva t ion , i n f e r e n c e , g e n c r n l i z n t i o n .l;.i . n ~ 2 y s i s .

Expressing n s i m i l a r view B a i l e y define!?. ~ ~ ~ , ~ , r ! t h o d c ? l o - y ~ ~

'!The philosophy of t h e r e s c s r c h prc~ccss . Th is i nc ludes t h e assumptions ant' v, I1lc.s

t h a t s e rve a s r ~ t i o n a l e f o r rese-j:-.clm n cl s t a n d a r d s o r c r i t e r i a t h e r e s e ~ r c ~ ~ ~ j r u s e s f o r i n t e r p r e t i n g d a t a and rwchin: ; con- c l u s i o n ~ ~ ~ . ~ 2

I t i s from t h e f o r e g o i n g t h a t t h e r u l e s and p r o c e d u r s s

employed i n t h i s s t u d y w i l l be c l e a r l y s t a t e d :

i ) The P ~ u l a t i o n -La-

h f o n j a d e f i n e s p o p ~ l a t i o n a s 'Ithe s e t of a l l

o b j d c t s ( u n i t s ) o r o b s e r v a t i o n s abou t which c o n c l u s i o n

:,re t o be drawn" . Th; e n t e r p r i s e under s t u d y has a

~ o p u l n t i o n of 1,400'~ employees. T h i s comprises of t h e

annagement t o g e t h e r w i t h o t h e r s t a f f and workers t h a t makc

up tht. workforce.

The d i s t r i b u t i o n of s t a f f by D i v i s i o n / ~ c p a r t r n e n t

i s shown i n t h e t z b l e below:

T e c h n i c a l

Audi t

D i v i s i o n / ~ e p a r tment

Finance/Adminis t r : . t ion

Commercial I 1 90

S t a f f S t r e n g t h

480

Corpora te P l a n n i n g I 80

Lagos L i a i s o n I 35 O f f i c e of t h e Company ~ e c r e t a r y / ~ e g a l Adviser

T O T A L

i i ) The Sample

According t o Ba i l cy , a sample is:

s e l e c t i o n : hopefu l ly r e p r e s e n t a t i v e , of t h e t o t a l popula t ion o r un ive r se t h a t one des.'.res t o studyfl.16

I n t h i s s tudy , t h e ~ a r n > ~ ) l e i s drawn from t h e sampling

frames ( l i s t s ) of both management and o tho r s t a f f and

workers of t h e company,

The simple Random Sampling method was employed,

u s ing t h e c x i s t i n g ~ i v i s i o n s / ~ e ~ a r t m e n t s as a f ixed frame.

This sampling p rocedur~? was chosen because it i s a s impler

ntlthod. Employing t h i s procedure the fo l lowing ~ i v i s i o n s /

D?pwtments were se l ec t ed :

Finance/Administrntion

Commercial Denartnent

Technical Div is ion

Corporate Planning, 2nd

Audit Department.

These D i v i s i o n s / ~ e p a r t m c n t s pu t t oge the r has a popu la t ion

of 1,325. A sample of s i x t y (60) respondents were randomly

s e l e c t e d from each d i v i s i o n / ~ u p a r t m e n t u s ing t h e s t a f f

l i s t i n each ~ i v i s i o n / D ~ p w t m e n t as a frame. Ths sample

s i z e was 300 and t h e e ques t ionna i r e s were d i s t r i b u t e d t o

managers and. workers i n t h e same divis ion/depar tment .

I t i s hoped t h a t t h e a n a l y s i s of d a t a from t h i s sample

s i z e w i l l y i e l d s u f f i c i e n t in format ion upon which we can

base our g e n e r a l i z a t i o n on t h e e n t i r e popula t ion of t h e

conpany. I t should be noted t h a t a l l respondents are

t r e a t e d on occupat ion?l b a s i s , No e f f o r t i s made t o dis-

t i n g u i s h between t h e sex of t h e respondents .

i i i ) --- Prirnarj. o u r c e of Data C o l l e c t i o n -

Thc d a t a c o l l e c t i o n mcthod employed f o r t h i s s tudy

i s the_ ques t ionna i r e . The closed-ended o r s t r u c t u r e d

type of q u ~ s t i o n n a i r c was used. Open-ended ques t ions were

however asked where respondents were r equ i r ed t o provide

reasons f o r some of t h e i r choices .

There were two s e t s of ques t ionna i r e s . One s e t was

f o r company managers and t h e o t h e r f o r t h e r e s t company

s t a f f , Doth s e t s of questionnaire were r2imed a t e l i c i t i n g

~ n f o r m : ~ t i o n about f a c t u : ~ l ques t ions , recru i tment p rocess ,

u t i l i z 2 t i o n . of resourcEs ( m a t e r i a l and f i n a n c i a l ) ,

employ,e wel fa re and t h e management p rocess i n t h e company

among o thers . A. t o t a l of 300 q u e s t i o n n a i r e s were d i s -

t r i b u t e d t o t h e respondents through t h e d i r e c t c o n t a c t

ml.thod. 'This means t h a t t h e r e sea rche r pe r sona l ly d i s t r i -

buted thd q u e s t i o n n a i r e s t o t h e respondents . I n t h e p rocess

he explained t h e purposo and s i g n i f i c a n c e of t h e s tudy ,

and i n o t i v ~ ~ t c respondents t o answer ques t ions c a r e f u l l y

2nd t r u t h f u l l y , The completed ques t ionnzi re were c o l l c c t c d

through t h ~ same method, and with the help of interme-

d i a r i e s wherc the d i r e c t con tac t method f a i l e d . idcedless

t o po in t out t h a t t h i s method was time and energy consuning.

i v ) Stcondary Source of Data

Apart frorn the information e l i c i t e d from the rc s -

pondcnts, we a l s o obtained v i t a l information from r e l e -

vant text-books, Journa l s , Magazines, Da i l i e s , and

Compmy records, pub l i ca t ions and News B u l l e t i n s , The

piecc s of information helped t o po l i sh t h e w r i t e r ' s idea

on t h e sub jec t under study. This was e s p e c i a l l y i n the

cours? of t h e review of r e l a t e d l i t e r a t u r e , The sources

01 such information have bezn adequately acknowledged i n

t h i s work.

v ) Data Analvsis: . - . --. ,-

For the purpose of ana lys i s and proper understanding

of t h c da ta , t a b l e s , percentages and o ther d a t a ana lys i s

techniques have: been employed t o t e s t t h e hypotheses.

1.7 -.----- Fie ld Experiences -- During Data Collect ion: - b

There i s a nuad f o r a genera l overview of the problems

encountered i n the course of t h i s study. The research

t o p i c of t h i s work was approved by the supervisor about

t h e end of January , 1989. The q u e s t f o r r e l e v a n t m a t e r i a l , -

p l r t i c u l a r l y t h e l i t e r a t u r e review m a t e r i a l s commenced

irnm.dintely. The l i m i t e d s t u d i e s on t h e management of

P u b l i c E n t e r p r i s e s i n Niger ia compounded t h e d i f f i c u l t y

in ob ta in ing t h e r e l e v a n t m a t r r i a l s . I had t o c o n t a c t r:iy

co l l eagues under tak ing t h e i r mas te rs programmes a t t h e

U n i v e r s i t i e s of Ibadan and I f e who photocopied some

r e l e v a n t m a t e r i a l s f o r m e . The sea rch f o r m a t e r i a l s took

me t o t h e Enugu Campus L i b r a r y of t h e U n i v e r s i t y of N ige r i a

whcre I photocopied s e c t i o n s of r e l e v a n t Textbooks.

Furthermore I had t o t r a v e l t o Gboko twice i n t h e

month of A p r i l , 1989 t o c o l l e c t d a t a on t h e h i s t o r i c a l

development of t ho company under s tudy . On both occas ions

I had t o spend hours wa i t i ng f o r t h e Company S e c r e t a r y

and Legal Adviser who i s in-charge of keeping such r eco rds .

The l e t t e r of i d e n t i f i c a t i o n in t roduc ing me t o t h e

company menagement and i t s subsequent approva l by t h e

Personnel Manager reduced t h e b u r e a u c r a t i c red-tapism i n

e n t e r i n g i n t o t h e compzny premises and, i n r e c e i v i n g

a t t a n t i o n from t h e app rop r in t e o f f i c e r s . I hqd t o photo-

cop^ t h e m,>, ter ia ls made 7v2i lnb le t o me by the company

3 l s o . From t h e foregoing , t h e c o s t i m p l i c ~ , t i o n s of

t r a v e l l i n g and photocopying of m a t e r i 7 l s and r i s k involved

i n t r a v e l l i n g could be understood by t h e render .

The ques t ionns i re w S l s d r w n and approved by the

supervisor between November and December, 1989. Again,

copies of the ques t i on~~ . z i r e had t o be re-typed on s t e n c i l .

Three hundred (300) cogies were cyclostyled t o be c i r -

cul3ted t o the respondents, An 3 d d i t i o n d f i f t y (50) copies

were cyclostyled t o give room f o r l o s t o r misplaced

copies by respondents. I had t o t r s v e l t o Gboko 3gain

t o 3dminister t he quest ionnaire between 6 t h and 22nd

December, 1989, It was 3 h e c t i c and f r u s t r a t i n g per iod i n

co l l e c t i ng the completed ques t ionns i re back. I t required

energy, time, persuat ion and pleading with respondents

i n t h e i r o f f i c e s t o r e t u rn t he completed quest ionnaire .

The i s sue became more d i f f i c u l t s ince most of the respon-

den t s were on s h i f t du.;y. I had t o spend time i n wait ing

f o r the respondents anJ I exhibi ted a l l manners of p o l i t e -

ness being a t the receiving end, The adminis t ra t ion/

c o l l e c t i o n of the ques t ionnai re s t a r t e d on 7 th and was

concluded on 22nd Dece~~ber , 1989, A t o t a l of 276 out of

300 copies administered were returned.. 24 copies were

unreturned,

, Datg. ana lys i s commenced immediately. Data w m pro-

ccessed manually and it i s needless t o poin t out t h a t

t h i s process was excrucia t ing and tedious t h 3 t the

researcher r e g r e t s t he l a rge sample population. The

ana lys i s s t z r t e d i n thl. l a s t week of December through

t he month of January, 1990.

Due regard and cognizance rnust be given t o the cos t

i n terms of money, entrgy and time cons t r a in t s i n carry-

ing out a s tudy of t h i s nature.

I .8 - Def in i t ion of Terms

The fol lowing terms have relevance i n t h i s research

only i n t h e sense i n which they are defined.

1 :8.1 - Management:

T h i s i s the managerial processes through w,hich t h e

a c t i v i t i e s of the compmy are decided, co-ordinated,

executed, supervised and financed according t o s e t out

p o l i c i e s . Functions suzh a s planning, accounting,

s t a f f inaintenmce, mat2r ia ls and f i n a n c i a l procurement

and expenditure, procedural documentation and communica-

t i o n which together f a i - i l i t a t e an order ly opera t ion of

the production and adminis t ra t ive d iv i s i ons a r e embeded

i n t h e concept of rnznagernent.

1 : 8 22 Manager - The manager is an ~idrnin is t ra t ive o f f i c e r duely

authorized t o ca r ry out t h e managerial/administrative

f u n c t i o n s of t h e company i n c l ~ d i n ~ : t h e t n s k o f co-

ordin : l t ing and f i n a n c i n g t h e implementa t ion of t h e

companyfs programmes. He i s i n c h a r g e o f t h e fo l low-

in{{ d u t i e s : Recrui tment ~ n d m o b i l i z a t i o n of s t ~ f f ,

procurement of equipment , f u n d s , communication w i t h -

i n and between t h e company, p r o p e r r e p r e s e n t a t i o n of

t h c compmy b e f o r e t h e o u t s i d e world when nncq i f

n e c e s s a r y , and t h e o v e r a l l a c t i v i t i e s of t h ~ compmy

a r e p r o p e r l y accounted f o r before t h e Bo:lrd of Di rec -

t o r s t h q t r e p r e s e h t s i ts ownet- a t a p b o h t e d p e r i o d s ,

The c o n c e p t manager e q u a l l y d e s c r i b e s d e p a r t m e n t a l

man?.[<ers who a r e n o t n e c e s s a r i l y t h e heads o..' t b e

company,

1 ~ 0 . 4 O r g a n i z a t i o n a l S t r u c t u r e

T h i s r e f 3 r s t o t h e s t r u c t u r e of t h c compr3nyls

o r . g m i 7 a t i o n which s u p ~ o r t s t h e d i v i s i o n of dnepc7rt-

ments 2nd powers of Managers t o e x e c u t e m s n ~ g e r i a l

f u n c t i o n s

r e l a t e d t o t h e i r departments. The s t r uc tu r e simply denotes

the hierarchy and hor izonta l pa t t e rn s of r e l a t i onsh ip

among the o f f i c i a l s , which f a c i l i t a t e t h e taking of

orders by thc s u b o r d i n ~ t e s from the senior o f f i c i a l s .

I t enhances work co-ordination, supervis ion, s t a f f con t r~o l

and performance e v a l u ~ ~ t i o n , promotes i n t e r n a l cornmunica--

t i o n , a s well as accountabi l i ty i n the case of pursuing

company objec t ives .

1:B.S ~ e p a r t m e n t / ~ e c t i o n

This des ignates 3 d i s t i n c t a rez , d iv i s i on , sec t ion

o r branch of t h e company over which a manager has autho-

r i t y f o r the performance of spec i f i ed a c t i v i t i e s . For

examplc prod.uction, commercial, f inance e t c departments. I 8

I : 8.6 Financia l Management

This r e f e r s t o t h c processes and t a sk s associa ted

with accounting, audi t ing , budgeting, cash-flow con t ro l ,

and accountabi l i ty f o r incomes and expenditure of t he

company.

1~8.7 Company

This i s a combination of the necessary human beings,

equipment, f a c i l i t i e s and appurtenances, mater ia ls and

. t o o l s , assembled i n some systematic and e f f ec t i ve

co-ordination, i n order t o accomplish some des i red and

defined object ive. 19

1 ~ 8 . 8 -r Co-ordination

T h i s i s t he work of assuring t h a t production,

s a l e s , f inance, personnel, a s well as t he l e s s e r func-

t i o n a l a c t i v i t i e s , a re in tegra ted and i n t e r r e l a t e d , i n

terms of both appropriate s t r u c t u r e s and a t t i t u d e s , i n

ord?r t o achieve most smoothly t he .desired end r e s u l t .

T h i s funct ion is concerned w i t h reconci l ing and unifying

the ::f f e c t i ve i n t e rp l zy of the several necessary

funct ional d iv i s ions and outlooks. 20

7 : G. 3 Production

T h i s r e f e r s t o the operat ion of the spec ia l

z c t i v i t y or work the clmpany i s organized t o under-

take . 21 That i s , the production of cement.

1.9 Arranaement of the Chapters

The remaining p a r t of t h i s work i s divided i n t o

four chapters,

Chapter Two deals with the l i t e r a t u r e review and

t h e o r e t i c a l framework. It reviews the r e l a t e d l i t e r a t u r e

on t h e concepts of Management and publ ic en te rp r i ses ,

This i s followed by an examination of t he t h e o r e t i c a l

underpinings behind t h e study.

Chapter Three concerns i t s e l f with the h i s t o r i c a l

cievelopent of the corny any, and i t s organizational

s t ructure .

The presentat ion, m a l y s i s of data and test of

nypotheses form the main concern of chapter four .

The l a s t chapter dea l s w i t h t h e summary, conclusions

and recommendations.

R E F E R E N C E S

1 Koontz and O'Donnel, Mana ement, I n t e rna t i ona l ----g-7j- Students Edi t ion , Mc raw H i l l Kogakushat

Ltdo, 1980, P.70.

2. C. C. Nwachukwu, Msn A f r i cana Nigeria , 1988, P.XVii.

3. A. H. Rweyemanu and G. Hyden; A Decade of Public Administration i n Africa, b a s t African L i t e r a t u r e Bureau, Nairobi, Kampala, Dar-Es-Salaam 1975, P.241.

5. I b i d

6. M r s . F. K, Gyang; '{Scope and Values of Publ ic Enter- -- p r i s e ~ ' ~ The Nigeria Standard, Monday, Apri l 16,

1984, P.8.

7. L. L. Bethel e t a l ; I n d u s t r i a l Orkanization and Management, 5 th Edi t ion , McGraw H i l l Inc. , Tokyo, 1971. P.27.

0 . J. 0. Ir ukwu, "Future Challenges f o r Nigerian Public Enterpr isesfP Business Times Vo1.12, No.25, Lagos Nigeria , June 22nd, 1987, P.14.

3. W. J, Goode and Ha t t P.K. a s quoted by Maragaret Stacey, Methods of Soc ia l Research, Pergamon Press , Oxford, 1969, P.8.

.mias and D. Nachimias, Research Methods i n the Soc ia l Sciences, Edward Arnold (Publ ishers) Ltd., 41 , - ~ e d f o r d Tquare , London, 1982, P.15'.

Ibid. P.15 - Kenneth D. Bailey, Methods of Social Research

The Free Press, New York, 1982, P.32.

Afonja B i y i , thers

Benue Cement Company Limited A t a Glance: Prepared s - -

and Produced by the Public Relations ~ ~ ~ a h r n e n t , BCC Ltd., C ~ O ~ O , 1988, p.8.

Ibid. P. 13-14 - Kenneth D. Bailey, Ou.cit, P.497

Koontz e t a l , Mana ement; In te rna t iona l Students - *on, McGraw H i l l , Kogakushat Ltd., 1980, P.332.

Ibid. P.334 -- Tead Osdway, The A r t of Administration; McGraw-Hill - lnc . , N,Y., London, Toronto,

1 1957, Pe10lm

Ibid. P.102-103. - Ib id* P.102.

CHAPTER TWO

LITERATURE REVIEW AND rn 2.1 In this Chapter, we shall examine i m w a n t l i t e r a -

t u r e on the , ceneepts ef management and publ ie U r p - F - e s -

T ~ Q re- is r o a d e d - ~ X W Q uw ~ . t i c U l a ~ uio*rpoint

of various writers and theories, In t h e course of the

discussion, critical analysis a r e made against the back-

- ground o f t h e data gathered from t h e relevant l i t e r a t u r e .

This is followed by an examination of the theo re t i ca l

frame work that guide the study,

r-

Management i s a universal phennmenm &hat is present

i n a l l works of l i f e , whether i n industry, government,

churches, organizations and even the home, Management

i s an ip tegra l p a r t of an arganised l i f e w i t h s t a ted

object ives t o accomplish, The accomplishment of complex

organizat ional goals are contigent upon such f a c t o r s

a s qua l i t y and s t y l e s g f management,

1 Scholars have d i f f e ren t def in i t ions of Management, i

For ekample, Louis Allen defines management as 'a means I - of co-cFdination and co-operatian"+' Koantr and OtDonnel

regard managament as;

'la means of get- things d m through and w i t h people I ) . 2

For Dauis management i s "the function of executive

leadership anywheretf. These def in i t ions , though

expressive of ce r t a in ideas about management, do not

give precise meaning t o the concept. If the concept of

manageme& should not be bogged down i n the quagmire of

m i s u n b e r ~ ~ a n d rn l z in t e rp re t~ t ion then it should

be given a sharp and deta i led definition which w i l l

give tke - c m t speoif ic content ,

Cleland and King define management as "the process

concerned with achievement of objectives!' .4 Although

t h i s def in i t ion points out t h e most c ruc i a l element i n

manqement - achievement of object ives, it f a i l s t o

define the nature of the lfprocessll. Management should

be viewed a s a d i s t i n c t process requiring d i s t i n c t s k i l l s

involved i n an organization. In a s imilar view Donald

Clcwgh defines management as:

I f the a r t o f guiding t h o a c t i v i t i e s of a group of people towards the achieve- ment of a common goalfl.5

de f in i t i on which gives management spec i f ic

content i s offered by Oesmund KL-ling. According t o

him management i s *the search f o r the bes t use of

resources i n pursu i t of object iv i ; subject t o changec. b

The two key words i n Keclingls d e f i n i t i o n a re slresourccsL1

and "objectives1'. By re- ,.,aurces Keeling means money,

matt-rials, acpipmank and pers~nnel. Keeling r e f e r s t o

object ives a s a generic t e r m ernbracing three concepts

aims, goals and t a rge t s .

Management i s achievement or icnted and the

u t i l i z a t i o n of resources cons t i t u t e s i ts primary task .

I n management, much a t t en t ion i s attached t o aims, gof 3-s

and t a rge t s . Management is concerned with success and

achievement of object ives ra ther than with mistake - ...

evoidance, In management roles ar:. defined i n terms or:

t a sks ; emphasis is on r e s u l t s r ~ ~ t h : . r than procedures:

h ie ra rch ies a re sho r t e r while delegat ion of funct ions

and au thor i ty i s a t maxirnun. Manp.qt.ment i s time sens i -

t i v e and r i s k accepting. Management i s quickly responsive

t o changes i n output and input va r iz t ions . 7

The F u l t ~ n Report on the B r i t i s h C iv i l Service (1968)

provided a d e f i n i t i o n which t r i e s t o bring out the naturc

of management i n organizat ions thus:

b

"Management, a s w e unecrstand it, c o n s i s t s of the formulst ion and opera t ion of t h e p o l i c y of t h e e n t e r p r i s e . This can be seen a s a continuum r-mging from f i r s t l i n e supervis ion through a h ierarchy of t h e rnan:,gers t o the board of d i r e c t o r s . A t each l e v e l , a s s e t s - whether hu-nm, f i n a n c i s l o r ma te r i a l - have t o be deployed i n t h e manner bes t c a l c u l a t e d t o achieve p a r t i c u l a r ob jec t ives which con t r ibu te t o the o v e r a l l p o l i c y ob jec t ives formulated by t h e boardu .8

I n management, decision-making i s pervasive i n t h e

e n t i r e process. Thus, Donald Clough described manage-

ment as " the a r t md science of decision-making and

From t h e above d e f i n i t i o n s , one can e a s i l y see

t h a t emphasis on management i s on r e s u l t s . That i s

what t h e manager can produce given t h e a v a i l a b l e

resources. OtDonnel sees management as:

"Planning, organizing, s t a f f i n g , d i r e c t i n g :md cont ro l l ing" . 10

By planning 0' Donne1 means s e l e c t i n g ob jec t ives - and

t h e s t r a t e g i e s , po l i c i f .3 , programmes and procedures f o r

achieving them - e i t h e r f o r t h e e n t i r e e n t e r p r i s e o r

f o; any organized p a r t thereof jf .I

O r ~ l uiews nrgAZljzjng as '!the establishment

of an i n t e n t i o n a l s t r u c t u r e of roles through determina-

t i o n and enumeration of the a c t i v i t i e s required t o

achieve t h e goals of ap organiz- ion and each p a r t of

it, t h e grouping of thcsz a c t i v i t i e s , t h e assignment

of such groups t o a mtln:lger, the de legat ion of a u t h o r i t y

t o ca r ry them ou t , and provis ion f o r co-ordination of

au thor i ty and informational r e l a t i o n s h i p s hor izon ta l ly

and vertically i n tbe organiza t ion s t ructurel1. - 1 2 Put

s i m p l y , o rganiza t ion function involves the establ ishment

of organizational s t r u c t u r e s and the provis ion f o r

e f f e c t i v e - co-ordination of funct ions and a u t h o r i t y

.-. r e l a t ionsh ips .

nS ta f f ing involves manning, and keeping manned,

the p o s i t i o n provided f o r by t h e organiza t ion s t r u c t u r e it'' 3

S t a f f i n g here embodies a l l f a c e t s o f personnel manage-

ment such a s recru i tment , compensation, motivation,

d i s c i p l i n e and t r a i n i n g .

"Direct ing involves guiding and leading subordinatest t , 74 This concept sounds very simple but t h e func t ion i s

w f r augh t with complexities. I t involves t h e manager incul-

eating i n h i s subordin? tes a keen i n t e r e s t and apprecia-

t i o n of t h e o rgan iza t ion ' s t r a d i t i o n s , values, norms,

ro l e assignmenks, guiding them t o work with zeal and *

ccmf idence.

We now come t o t h e l a s t term PYcontrol l ingf t which

means "the measuring and carrec t in , , of a c t i v i t i e s of '. I 5 subordinates t o assure t h a t events conform with p lans t1 .

The qual~ty and s t y l e of management of any en t e rp r i s e

motivate t he employees t o work towards e f f e c t i v e perfor-

mance of the enterprise. The resporlses of these motiva-

t i o n s are attested t o b y t h e attainment of enterpr ise

o~&ck&y~s-, The proper management of publ ic en te rp r i ses

should lead t o t h e attainment of or$anizat ional ob jec t ives .I

through e f f e c t i v e planning, organizim, s t a f f i n g ,

d i r e c t i n g and -trolling.

Simi lar ly George R. Terry h,zd t h i s t o say about

)'Management i s a d i s t i n c t process cons i s t ing of planning, organizing, ac tua t ing 2nd con t ro l l i ng performance t o determine and accoraplish the objec t ives by the use oi people and mate r ia l resources". 16

This shows, tha t management i s n s e r i e s of ac t ion by a

leader' who has men and mater ia ls under him f o r the pur-

po,se of achieving some goals. I t a l so implies d i r ec t i on ,

deciding care- and thinking out why, how and when

t o ~ c c m p l i s h a s e t t a sk 4Ammgr. yeople. George Terry

fur- ~~ M a t no enterpr ise can succeed

without t h e e f f ec t i ve ~ . ; t i l i z a t i on of e f f i c i e n t manage..

ment. Management provi5es e f fec t iveness t o human c!.di-i;s,

it helps t o achieve b t c t e r s e r v i c ~ s , innovation, it

always seeks f o r improvement. Ee f i n a l l y saw the t ~ s k

of: constructing a bet- ter economic soc ie ty and improved

social s tandards as the chal lenges of modern managerial

s k i l l s .

The au thor ' s view i s appreciated but h i s observat ion

i s inadequate, Modern management goes beyond u t i l i z i n g *

men and mater ia l s f o r work. Other f a c t o r s such a s t h d

cons t r a in t from the external environment, f inance,

ma te r i a l and human resources management, and time co~zbine

t o make o r mar the ef fec t iveness of management,

According t o F. A . Nigro and L. G. Nigro:

Wuch co-operative human e f f o r t takes place wi th in formal organizat ion of which govsrnment agencies a r e only one example. Others a r a p r i v a t e companies, k b o u r unions, churches,

II I 8 hosp i t a l s and profess ional Unions . b

This implies t h a t manigement takes place only i n t he

context of an organizat ion. An organizat ion i s a s o c i a l

rei;iairs &~~i&an ~f l a W a o n c ~ecrpte .J;I$Mee e f f o r t s .. a r c t o be c w d i n a t e d . In practice it i s also conc,16md

w i t h specifying objec-Lives f o r t h e business a s a whole

and each of t h e sub-units and deter .lining i n broad tercls ,

tb6 8&iui%ies and d e c i s i w necesswy t o accomplish

these s t a t e d goals, T;li:< i s no e a s y t a sk hence L ike r t

&served that:

#'how bes t to organize t h e efforts o f individuals to achieve des i red o b j c c t i w s has long been one of the ~arld's most d i f f i c ~ i l t and contro- wrsia.1 pro tilernsfr .I9

Y. 17;'. Drucker, a famous w r i t e r on management sees t i - ! c ;

manager as t h e dynamic, . l i f e - g i - ~ i n g element i n every

business. According t o him;

IiWithout h i s leadership t he resources of production remain r:?sources and never become productionqi .20

Jrucker ex to l l ed rnan;i.;cment, l abou r and c a p i t a l

emphasising t h a t management i s super ior t o the rest ~ : s

product ion f a c t o r s . PLch of wh:~ t Lhe author sa id abou-t

the importance of mansgcrnent holds t r ue . It i s however

an omission t o ignore land as one of t he f a c t o r s of

production j u s t as it i s an e r r o r of judgement t o see

management as t he alpha and omega i n an en te rp r i se .

.- One wonders how much i-mnagement can achieve i n t h e f rc;z

of inadequate c a p i t a l inputs , incoclpetent and unhapyl-

la!..c?ur fo rce and an unfavourable s o c i a l system.

According t o Professor H. T;. IJwosu:

"Management ;:is a scarce human resource input is a v i t a l ingre2 ien t i n a l l goa l or iented organizu-Lions whether these a r e public o r nrivateW.21

H e maintained t h a t manyp,crs lead , i n s p i r e and motivate

t h e i r subordinates t o -iccornplish t h e i r o rgan iza t iona l

ob3eo tives . m

I n summary, f o r t h e purpose of t h i s study, the

concept o f management s h m l d be seen as a process

involving the search for the be s t use of personnel,

ma te r i a l s and f i n a n c i a l resources i n pu r su i t of the

en t e rp r i s e objec t ives .

2.3 MAN AGET4ENT APFROuC--1ES

Having examined t h e various d e f i n i t i o n s of manag<--

ment, l e t us now discuss a few minagement approaches.

This w i l l . help us i n c.rl'nancing our understanding of

the concept, and finding a theoretical foundation for

t h i s study. In doing so we s h a l l examine c r i t i c a l l y

thc following approaches:

(i) The Empirical o r case study Approach,

(ii) Human Behaviour Approac::, and

( i i i ) The Systems *ppmach.

Th, se approaches are chosen bec ,use of time and spzc\-.

cons t r a in t s . We s h a l l , however, mke reference t o

o t h t r approaches as t h e need t o (do so a r i s e s i n the

course o f our discussion.

2:j .q The Empirical o r Case Study Approach

The proponents of t h i s approach study management

"through the analys is o-f t he ex..c:.7ience of successful.

managersu , 22 The assu:r;ption i s that by studying manage-

r i a l successes and f a i i u r e s i n various individual c?ses, t

s tudents and p r a c t i t i ~ : ; e r s w i l l 5::: able t o form genera-

l i z a t i o n concerning th; nature of management and be ab le

t o apply t h e best management techniques. We can hardly

doubt the importance of analyzing pas t experiences o f

managers. However, management i s not a science based

e s s e n t i a l l y on precedent and fea tu re . Experiences r e s ~ n b l - . .

ing those of the pas t are unlikely -to occur. Too ziuch

re l i ance or1 pas t expcr7iences cljuld cons t i t u t e a major

cons t r a in t t o e f f ec t i ve management. This i s becausc :-,

techdique found r i g h t i n the p t s t may not be qu i te

relevant t o a somewhat s im i l a r s i t u a t i o n i n t he futur t . .

Undoubtedly, i n some circumstances the empir ica l appmach

c - be usefu l e s p e c i d l y when i t d r ~ w s from the rese-,.?ch

i n t o p a s t cases which have relevarlci. t o p resen t probJens.

2 : 3 . 2 Human B e h a v i + x u , k p p r ~ a ~ h

This approach looks a t manzpment pr imar i ly a s a

study of group behav iox pa t t e rn s . It emphasized uni-!~~ Y,-

standing of employees by management, motivation,

meeting workersf needs and a s p i r ~ t i o n s ... e f f e c t i v .

use of human r e l a t i onsh ip w i l l ? i d management i n r e a l i -

2: z i n t t h e organizat ion& goals.

T h i s approach t o n1::nagement h?:; been of help t o ." bot,h t h e t h e o r i s t and -pract icing mnager . I t draws

t he a t t e n t i o n of both kne p o s i t i v e and negat ive roles

of informal groups, the place o f incent ive i n inducing

group behaviour and i n t e rna l i z i ng organiza t ional norms.

The c r i t i c i s m of t h i s approach i s t h a t it t r i e s t o

l i n k management too c lose ly t o t h e f i e l d of psychology

and. sociology.

"The s tudy of group dynairi$.cs and in te rpe rsona l r e l a t i onsh ip i s no t i i m i t e a t o managcm~nt~~. 24

2:3.3 The Systems Appro&

:- This approach t o the study t..nd ana lys i s of manage-

IIILL,: thought has been emphasized by many scholars and

w r i t e r s - (Ta lco t t Parsons (1951) Satz and Kahn (1966;

and David Easton (1957 -nd 1951). They f e e l t h a t t h i s

a ~ - , r o a c h is t h e most e f f e c t i v e means by which such

thought cen be orgaaAged, presented end understood,

"A system i n general c m be defined as an es tab l i shed arrmgement of components dl ich l e a d ; to t he attain- ment of particulmr ob,jectives according t o plan. "25

This d e f i n i t i o n implies t h a t alnior~t a l l l i f e i s a

b system. For example our bodies, homes, u n i v e r s i t i e s ,

government agencies and our bus:nesses. These a r e

interconnected with va2lous o ther systems, and each

has wi th in i t a numbi;..] of subsystems. The subsystems

cons i s t of p a r t s , ernbe[;-ed i n an environment and the

r e l a t i onsh ip between tl-;. subsystems and the environ-

ment is a s e r i e s of i n t e r ac t i ons .

Systems can e i t h e r be f tc losedu o r tlopentt. 26 A

system i s open if it exchanges information, energy, I

o r ma te r i a l with i ts environment as happens with

b io log ica l ( l i k e people o r anim,lls) o r s o c i a l ( l i k e a

company) systems. It i s closed i f it doe< not have

$ u ~ h bteraotione with i t s environment+ 27

b ?he Itmplicatlon of thf s approach for marrageman*

functhms $s that o w e organizational obJ&iaces have

k e n clef baed, it is the P- ib i l i ty oi top mabage-

ment to de- appwprlate system f o r its accomplishmcrrt,

ZR -aa jgaw sya%ms ~ & e Wgani~ed in input8 sut-

puts, and t h e system functions i n an environment,

Having examined t h e s e approaches to management,

we now look at the concept of public enterprises,

2 k The Conceuf, o f Public EnterpriseJ

Scholare and writers do n o t use the sams c r i t e r i a

- in definlng p u b l h enterprieed, T h i s i s because t he

concept of development which they are designed tt~

promote has evoked dtfferest images such as eaonomic

w e l l be ing , socia% weAl-being, s o c i a l hemony' wiiversal

political participation, CuZt$iral freedm end other

desirable objective8 for mmkinu auch that definitions

largely depend on pe~apectivea~ 20

pointed aut that ; '*

"As f a r as public enterpr ises a r e concerned there does not 2ppear t o be any agreement among experts as t o t he precidite de f in i t ions ' .Z9

I n s p i t e of t h i s , we s h a l l attemp% $0 c r i t i c a l l y ex,.i..;riil-ie

t h e concept as defined by scholars , Irikwu defines

pub l ic en te rpr i ses as;

#@any organisht ion, i n s t i t u t i o n o r en te rpr i se which i s operated under the auspices of the s t ? t e , e i t h e r a s a commercial concern, or a s an instrument of soc i a l welfare and services . They a re general ly a corporate b d y ul t imate ly responsible t o the s t a t e u . %

Gyang s imi l a r ly refer red t o public en te rpr i ses as:

"Those autoric.:ious bodies which a re e i t h e r f u l l y o r p a r t l y owned by government t o provide public u t i l i t y or service. Some of thesc bodies a r e es tabl ished t o provide a good or service which although e s s e n t i a l cannot be provided by p r iva te f inancen. 3 1

The above de f in i t i ons a re useful a s they point

out the object ive f o r aatab1ishin.g public en te rpr i ses .

However, they do not pravide a concise de f in i t i on of

the concept. A s a r e s u l t Teriba p re f e r s t o s t a t e t h e i r

uni formit ies thus: They are created by spec ia l l eg i s -

l a t i v e s t a tu t e s . They can purchasc, l ease , hold and

dispose of lands, share.>;;, and other property of whatever

k i n d . The management i s i n the ivnds of governmentally

appointed Boards under t h e direc- t ion and con t ro l of the

responsible rninisbrs. '?hey a r e . . . i ~ n e r a l l y exempted :Cr<:);:i

most regula tory and p r o ~ ~ i b i t o r y .s tatus appl icable t o

the v:,xpenditure of puh:iic funds. F ina l l y , they a r e

wholly o r p a r t l y owned. by the g~vr,rnment. j2 ,Some of

t h e uni formi t ies enurn~~l-:.-ted by '.?,>i?iba as given above

are common t o most publ ic en t e rp r i s e s i n Nigeria ,

Hunson emphasized -;:he econo,.iic aspect when he

defined publ ic en t e rp r i s e s a s governvent organiza t ion

e s t ~ b l i s h e d for the pur [Jose of Lng,~L;ing i n economic

activity t h a t represen-1-s ac t ive sovernment involvemen-t tr

i n t h e sorzomic sphere beyond the provision of guidc-

l i n e s and t h e c r ea t i on of an env i roment encouraging t o

t he p r i v a t e sec to r . 33 A c l o s e r exnrnination of the

nature and func t ions ~f many publ ic en t e rp r i s e s howsver,

w i l l reveal t h a t some ?re economic, some s o c i a l and

son? support ive, hence it i s n o t necessary t o emphasizz

t h e economic aspect lone i n def in ing publ ic en te rp r i ses .

Ramanadham pref e r z t o c a l l - 1 ~ h l i ~ en t e rp r i s e s

of many c o u n t r i e s - wkdther soc ia l i s - t , c a p i t a l i s t o r

~ i x e d economieS. They r ep resen t a p a r t i c u l a r form of

d e l e g a t i o n f o r deve1or:;:lent purposes. That t hey are con-

ce ived of a s v e h i c l e s f o r development can be seen i n

t h e i r phenomenal growth i n many coun t r i e s . The r a t e a t

which t h e y a r e being cri2ated and t h e l a r g e amount of.'

money channel led i n t o them f l a b b e r g a s t t h e a s t u t e

observer, By 1973, t h e r e were o w r two hundred and f ' i z ty

of them i n Nigeria c o r ~ s i s t i n g of s t a t u t o r y corporatii-)!.is

b o t h federal or s t a t e , state-owni?:: companies and t h e i r

subsidiaries, and s t a t e c o n t r o l l e d companies and t h e i r

specialized organiza-ti ons . 36 I n Tanzania, an e q u a l l y

impress ive number has been est:>!:jlished e s p e c i a l l y

s i n c e 1967 when t h e country moved towards a s o c i a l i s t

c o n s t r u c t i o n of s o c i e t y . By 197u9 t h e r e were t e n

government companies, t h i r t y - f i vc b a r d s and corpora-

t i o n s wi th s e v e r a l su b s i d i a r i e s , ,The Nat iona l Developnent

co rpora t ion a lone had s i x t y - s i x s ~ i ' 5 s i d i a r i e s i n f i e l d s

cover ing a g r i c u l t u r e , m n u f a c t u r i n g , cons t ruc t ion ,

cornmerce and s e r v i c e s . 37

I t i s appropr i a t e t o s t a t e t h a t much of t h e

r e s p o p s i b i l i t y f o r managing and t r m s f o r m i n g t h e pub l i c

s e c t o r has been delegcltc d t o pub l i c e n t e r p r i s e s

pa r t i cu l a r ly i n develo,2ing countr ies . They a re however

of d i f f e r e n t ca tegor ies ,

2.5 Categories of Public Enterpr ises

The 12th I n t e r - ~ f r i c a n Publtc Administration

Seminar held a t Ibadan, ldigeria i ! ~ '1973 focused e n t i r e l y

on the ro le of public i n t e r p r i s e s i n the development

process, It grouped th::n i n to three ca tegor ies based

on t h e i r funct ions and object ives , 30 F i r s t l y , there

a r e the business-type public en te rpr i ses t h a t a re

expected t o compete an:i show a p r o f i t e i t h e r t o re-

irivcst i n t o further in^ the en te rpr i se i t s e l f or a s 3

source of revenue f o r the publ ic sec to r o r both, In

C Nigeria, these include the Nigeria iiirways, the

National Insurance Corporation of Nigeria, e t c ,

secondly, the re a re t h r i n f r a s t r u c t u r a l public enter-

p r i s e s t h a t undertake to provide the basic services

nerded by the nat ion t o develop, These a r e e s s e n t i a l l y

i n the f i e l d s of t ransportat ion, communications,

banking e t c * These may or may not be expected t o make

prof it depending on t h e i r funct ions, They play a

supportive r o l e t o the r ~ r i v a t e sec tor , given the colonia l

bacl~ground of most of th t - s t a k s . In African s t a t e s

f o r zxample, the colonia l administrat ions l e f t t h e i r

economies t o t a l l y u n d e r I a e l o p e d . I n many c a s e s , t h e

l i t t l e bus ine s s a c t i v i . i ,?s whict-1 Tnr<:re i n h e r i t e d were CI.

e s s e n t i a l l y i n t h e hancis o f f o r t i c n e r s , Throughout t h e

c o l o n i a l p e r i o d , few , J ' r i c a n s were g iven t h e o p p o r t u n i t y

t o accumulate p r i v a t e c a p i t a l and t o a c q u i r e l a r g e s c , ~ l e

b u s i n e s s management s::ills which could be r e l i e d upon

by t h e new s t a t e s t o build t h e i r ccunomies, A s J u l i u s

Nyerere p o i n t s o u t , Th i rd World c o u n t r i e s do n o t h a v ~

t h e k ind of wea l th and ind igenous s k i l l s t o e s t a b l i s h

l a r g e - s c a l e modern i n d u s t r i a l u n i t s s u f f i c i e n t t o mect

$xpanding needs of t h e peop l - . H e s a i d :

The

i t A s a gene rz l r u l e no in: j . ividual , o r group of i n d i v i d u a l s !‘ram w i t h i n any of ou r n , l t i o n s h x c a p a c i t y t o e s t a b l i s h even a l a r g e modern t e x t i l e m i l l , much l e s s opercite a diamond mine, p u t up a s t e e l m ' l l , o r r un a l a r g e s c a i c comrnerci!::l e n t e r p r i s e , That qmount o f money - n i t h a t k ind o f e x p e r t i s e , j u s t do n o t e x i s t t 1 . 3 9

governments oi the new committed

r ap id economic and s o c i : j l d e ~ e l o p ~ ~ ~ e n t of t h e i r s o c i e t i z s

had no choice bu t t o r> : 2rt t o thc: c r e a t i o n of such

s u p p o r t i v e p u b l i c e n t i -,, r i s e s fo?- bt is iness and i n d u s t r y ,

E x m p l e s a r e t h e Niger..i.,in Railwzys Corpora t ion , t h e

N ige r f a P o r t s Author i t ) ; , t h e N ige r i ? Bank f o r Commerce

and Indus t ry .

Third ly , t h e r e a r e t h e s e r v i c ? e n t e r p r i s e s t h a t ,re

c r e ~ t e d t o d e l i v e r s e r v i c e s t o t h ~ p u b l i c , o f t e n a t

a r e r l $ of h e a l t h , s p o r t s md school:,. Here, p r o f i t s a r e

n o t a p e c t e d t o be mad(-.

This t h r ee - fo ld c,:-tegorizatioi , ) i n p o i n t s t h e

p a r t i c u l a r a s p e c t of t h e s o c i e t y L lch e n t e r p r i s e i s

supposed t o func t ion . However, th : . Lhree-fold c a t e g o r i .

z a t i o n is too broad. Thus it t ends t o exclude such

C pub l i c e n t e r p r i s e s l i k e state-ownzd l i m i t e d l i a b i l i t y

a cornpanis which i s t h e focus of t h i s s tudy.

The 1971 Wages and S a l a r i e s Review Commission '*

(popu la r ly known as t h e Udoji Co ln i ss ion) c l a s s i f i e d

p u b l j c e n t e r p r i s e s i n t o f o u r bro, d c ~ t e g o r i e s a s f o l l o :st

(i) p u b l i c corpo.r:: . t ions whi..c,l? a r e r e g u l a t o r y

agenc ies ;

( i i ) p u b l i c co rpo r3 t ions w h i ~ l i a r e we l f a re

o r s e r v i c e agenc ies ;

(I?) State-owned i i!.iited 1 . i a b i l i t y Companies. 40

enterprises. Example5 of such in i j iger ia would include

.. Nigerian Breweries, Nigeria Airways, Nationel Insurance

Corporation of' N i g e ~ l a , NSgeria Cenient Company, Nkalagu,

Benw Cement Company, Cboks, Bendel and other s t a t e

owned Breweries eta, Cne p e r c ~ l i a ~ i t y of these comp::nies .

according to Olisa i s that they flea* shares wbLch are

purchased by the publ ic a2though the state oms con-

trolling interest by possessing most o f the shares, ,

These companies formulate and o p e m t e wlthin govern-

mental lLmitations, they dealare profits or losses

periodically (usual2y once in a y e a r ) but their profits

are distrbbuted as divlderads t o t h e share holders o r C

ploughed into the cap i t s l i za tkon of the companies

concerned i s the form 01 Certain specific

alms however call for ~ n d j u s& i f y their existence+

2.6 The iiAAISON D 8 E T W

The rationale f o r setting up pubiic enterprises

range from desire fer rapid a ~ o n ~ m i c deveX.opr@e~t to

ideology and public in$eres% syndrome ~ O W V ~ F xaguely

Befined they may be. iis we hsw earlier b i n e d , Sn

developing 'cauntsLes, %bey %end to give Leadership to

. private concerns with qwae havhg shares In them,

They a r e thus instmunents f u r incre?,s ing indigenous

participation i n commerce and i~-i.dustry. A t t imes, the, . ,

w a r e c r e a t e d t o r e b u i l d ;>. d e c l i n i n g economy. I n U.S .A.

f o r sxample, t h e Tennesse Valley Authori ty (T.V.A)

was es t ab l i shed by Prct ; i . ient Rooss:i?lt i n t h e days G:::

the rlepression t o rev ive t h e t o t t c 7 i n g economy, I n

co;.a:i:unist-oriented c o u n t ~ ~ i e s , thcy cover most i f n o t

a l l business a c t i v i t i e ; : .

Some p u b l i c enterpi- ises a r e si , b i l i z e r s of t h e

economy. For example, t h e produce marketing boards

seek to provide s t a b l e ; ~ r i c e s fovz .:?,jar primary

products and t o provide the f a c i l i t i e s f o r t h e i r t r a n s -

+. p o r t a t i o n and marketing. T h i s i s however done a t t he

expense of t h e producer:; who a r e r1aid l o w p r i c e s f o r

t h e i r products. On t h e o the r hand, s u r p l u s accruing

from t h e i r ope ra t ions have been used t o champion

development programmes. For examble, t he Cocoa House

i n ibndan, L ibe r ty Stadium, and 'I n i v e r s a l Primary Eu~i - -

c a t i o n i n Western Region, Niger iz which was s t a r t e d i n

1955 were some of t h e d-evelopment nrogrammes executed

w i t h t h e he lp of t h e su rp lus generated from t h e s a l e

of cocoa by t h e Westerr? Xiger ia Yarketing Board. b

A t times, publ ic en t e rp r i s e s a r e s e t up by goverrl-=

ment i n response t o the complaints of c i t i z e n s regardSng

poor se rv ices , ex to r t iona te p r i c e s , uneven performance

and d iscr iminat ion i n p r i va t e business. For example,

t he stablishment of :; t-lte Tran:; )rt Corporations i n

Nibsr ia a s well as the National F'c'eight Company r e f l e c t

t he growing concern o r members o: the public about t h e

h i z h f a r e s charged by p r iva te t r m,criorters.

There i s a l s o the need t o provide e s s e n t i a l publ ic

se rv ices such a s water , e l e c t r i c i t y , medical f a c i l i t i e s

of ten a t reduced cos t s . Thus, we h r v e Water Boards,

National E l e c t r i c Power Authority (NEPU) and Health

Services Management Bo?llds,

The r a t i ona l e f o r public en t e rp r i s e s i s a l so p z r t l y

i n t e l l e c t u a l , The i n t e l l e c t u a l Lrgument l i e s i n the

pos i t i on of these en t e rp r i s e s a s ?nswers t o the accu-

s s i i ons l eve l l ed agains t t he c a p i t a l i s t system, t h a t

it not only encourages i l lonopolistic ownership but

exp lo i t s a l a rge sec t ion of t he !+u la t ion who a re

c o l l e c t i v e l y t he r i g h t f u l owners of 311 resources of

t h e i r land. It does t h i s when i t permits a few persons

o r ;;royps t o enjoy t h i s xonopoly, rrobably on the bas i s

of t h i s reasoning, t h ~ e x - l i e r n u b l i c en t e rp r i s e s were

assigned such v i t a l areas as port ; , ra i lways, e 1 e c t r i l : i t y

and marketing of export produce (-the coun t ry ' s key

fo re ign exchange- earn^;). 42

Caiden held a s i ; ~ i l s r view w:,er? he s a i d t h a t p,ul:;.ic

e n t e r p r i s e s may a l s o be c rea ted f o r ideo log ica l -

reasons. 43 I n c o u n t r i e s committed t o s o c i a l i s t const.!-uc-

t i o n , n a t i o n a l i z a t i o n oi' l a rge - sca le p r i v a t e enterprii-!i?s,

f i n a n c i a l i n s t i t u t i o n s and o the r commanding he igh t s , ,

of t h e economy i s viewed t o be cons i s t en t w i t h t h e

s o c i a l i s t goa ls of th:-: l eadersh i? . I n Sovie t Union f o r

instance, t h e i n s t i t u ~ ~ m of p r i v a t z e n t e r p r i s e and

p r i v 2 t e proper ty facc congeni c.11 problem af accept- ace.

They have been v i c i o u s l y c r i t i c i 7 c d by communist and

so i . : i a l i~ t i n t e l l e c t u a l s a s imrnor~~l , e x p l o i t a t i v e ,

c o r r u p t , u n j u s t , bourpoois, pa r r i s i t i c and was te fu l ,

Thc communists comple-Le:l..y r e j e c t c; ip i ta l i sm and i n s i s t

on i t s v i o l e n t over-thyow t o ush ' ' i n a c l a s s l e s s

s o c i e t y based on ~ 0 1 1 ' - c t i v e ownership of proper ty ,

The s o c i a l i s t , recognir,:,ing the tr , : :nsitory cha rac te r

of soc ia l i sm a r e prep),.red t o work through the i n s t i t u -

t i o n s of the s t a t e such a s bure.iucrzcy and pub l i c

e n t e r p r i s e s t o reach t h e goal of communism. They thus b

l a y emphasis on pub l i c ownership ( i n many cases p a r t i a l ) ,

n a t i o n a l i z e d inclustry, p u b l i c i n i t i a t i v e and p o l i t i c d

regulation of economic enterprises,

Public enterprises may also f r i s e as a result of

g o v ~ r n r n e n t ~ s desire t o create an in tegra ted national

economy and to stimulate balanced regional developmmt

throughout the country, The establishment i n Nigerio of

steel rolling mills at Oshogba, J o s , Katsina and Ajeokuta

are examples,

The need to o b t a i n international finance on a scale

large enough to develop a i a rge scale industry is : i lso

a rc:3son, It is the government ~ , ,~ : i ich can give t h e assurance

required to attract external capital, Examplea are siarld

w Bank Development Pro jec t s , and o t h e r business conosrns

lAL-, banks and breweries t h a t emerge ou* s f partnership

agreements beltween goverment6 nnd external financial

institutions,

There i s a l ~ o %be fw%or o f p u b l i c in teres t syndrome,

Before independence, t h e n a t i o n a l i s t s proaised a lot of

things that would accornpmy s o v e r c i g n i t y , To meet these

needs Ln the p a s b c o l u a l a l disgensg-ltion., govex??l;ncn%s

are forced to gp t a any length including $he establl.shmen$

P-F -wmercial. ventures, S u ~ b ac t ions are ~ d e r t a k e n

on the bas i s LH the i r own concept ion of the i n t e r e s t

of t h e pub l i c . FurtheL,nore, i n revolutl ionary leader: ; \ L?

s i t u a t i o n s , government ::lay na t ionaLize c a r t e l s and w

monopolies, c la iming t h a t t h e y 3 r ~ doing s o i n t h e

i n t e r e s t of t h e pwpl, IS t h e y hnvc done i n Alge r i a ,

Libyq and W i o p i a . 41-1

Pub l i c e n t e r p r i s e s inay be looked upon a s a form

of s t a t e c a p i t a l i s m whereby o p p o r t m i t i e s f o r develol-: : m t

are; sought, r i s k s a r e -Liken, inv,?st inents made and p r o i ' i t s

accr-wd for $he b e n e f i t of t h e soc i e ty . This process

t a k e s p l ace along wi th p r i v a t e e n t e r p r i s e e i t h e r i n th;?

same functim or .twsiniss or a s : j o i n t venture . I n

fact, a prime reason f o r e s t a b l i s h i n g pub l i c e n t e r p r i s \ ? s

i n (nost Af r i can c o u n t r i - s has bel..:.? t h e l a c k of priv:?te

e n t e r p r i s e t o undertal., such m; 30; Sunct ions a s tr(ms-

por - ta t ion , cornrn~nicat io~i , manuf i c tu r ing , e t c . Thus,

t h e need f o r pub l i c e r1~;erpr i ses i n Africa t o f u l f i l

r o l e h i s t o r i c a l l y playg~d elsewhere by p r i v a t e e n t e r -

45 p r i s e s i s also c i t r iL .

Some p u b l i c e n t e r y r i s e s arE e s t a b l i s h e d f o r t h e

purpose of mineral expl , i t a t i o n , 'Lrle r a t i o n a l e i s th, i

t he b e n e f i t s of such il!rinerals : ; ! i~uI i accrue t o t h e

producing country. T h i s i s t h e re;ison f o r t h e es tabi i r 'hment

*

of the Nigerian N a t i o w l Petroleurn Corporation ( N r N . F n C ) ,

The f a c t that most o f our examples are taken fro:

Or devnloping cauntrfes should n o t ignore %he f a c t t h a t

publ ic sn terp~i ses can na$ be found in capitaAist ,

s o c i a l i s t , and mixed economies, In advanced capi tal ic-L

countries, as Abdul Kadir observzs, t h e i r role i s

r e l a t i v e l y marginal, sc:r3ving only to impose some c h e c k

and balances upon t h e market, 46 T y p i c a l l y they ccver

i ndus t r i e s which are n a t u r a l monopolies , pub l i c se rv ices

o r areas where sub6taskia2 externaXities @ x i a t $u%

prospects o f quick p r o l i t a b i l i t y e re slim*

Another rationale f o r publi~ ,-nterprbses i s

+ strategic , Xn m ~ s k countries, nwtional secur i ty has

c n s t r a i n e d the govwmcnt to a g s u w d i r e c t ~ e s p o n s i b i l i t y

f o r cer tah actfvlties such as production ~f arms

and ammunition, For 0% t h h g , Lgwestwat~, in them art.

exorbitant, Fos anotbag, the s e ~ y p i t y ~f t h e natLon

may be a t skake i f pr iva te inveg%~rs handle defence

equipmenta, Thig $5 t h e rmtionaxc: f o r the e s t a b h i s h m w t

o f k f enoe IndusWies i=;~rpo. ra t$~n ,(ID,. I , C ) i n Nigeria

and tbe Ul Ss h t e r v e n t & m in the rni;l$.ta,r"y eat~t'bl&shmcnts

Public enterprises are a l s ~ e.tytablished to maintain

emy~loyntent, and to prc:- .ok irrurstL,lent i n new, r i s k y

bulky and high technology industr ie ls such as pe t ro -

chemicals and I r o n and S t e e l . ? r1 l t3 in and I t a l y a r e

e x m p l e s of countries here pub l i c e n t e r p r i s e s a r e

madc t o p l a y t h i s r o l L .

I t i s one t h i n g .to p o s i t th ; - t p u b l i c e n t e r p r i s c s

perform v i t a l f u n c t i c n s i n t h e ci; ,rvlopment process.

On t h e o the r hand, th ; e x t e n t -to ,vLiich they a re

e f f e c t i v e l y managed t o perform t h t s 3 func t ions i s

another . An eva lua t ion of t h e i r rmnagement i s therefore

crucial.

2.7 The Theor-etical ?'mework

The importance o f : t heo re t i c .11 framework i n a

s tudy l i k e t h i s i s t o provide 2, t n t o r e t i c a l foundatio, :

on which t h e s tudy i s brised and t h e r e l a t i o n s h i p t h a t

exi : , t s between t h e t h ~ ~ o r y and t a e p a r t i c u l a r s tudy.

Kclinger d e f i n e s a t h c ~ ~ r y as:

"a s e t of intc-:rrelated c o n s t r u c t s o r concepts , d e f i n i t i o n s and p r o p o s i t i o n s t h a t p r c r c n t a sys temat ic 15, w of ph :;omt._na by spec i fy ing L,L l a t i o n s mong v a r i a b l e s v;ith t h e purpose of exp la in ing ?n:i p r e d i c t i n g t h e phenomenaPt .4'7

( iv ) an i rnput- t r~nsforming technology. ..; (v) a boundary which e x c i ~ d e s t h e p l e t h o r a 1

of o t h e r sys-L.ms and c. > f i n e s t h e t h r e s h o l c

of t r a n s a c t i o n s among the un ive r se of

systems; and

( v i ) an environm,nt meaning t h e l a r g e r con tex t

i n which t h ? ~ y s t e m i s s i tua t ed . . . 48

The con tex t of syrtems funcii .oning can schemntic . l l y

be represen ted a s fol lows:

CONVERTING

SOURCE : Adaptea from Lawrens, C , Mayer, Comparative P o l i t i c a l ~ n q u i r y , A Metho-. do log icz l Survey (Homewood, I11 The 1;o;'- c.y P r e s s ) 1972, P.130.

I n aidopting t h e systen:. approach, t h e Open systems

would be adopted. The x r v i v a l oi an open system dcp,_i 1s

on i t s a b i l i t y t o : b

( ! inges t enough i n p u t s from i t s environment t o o f f s e t it;:: o u t p u t s p l u s t h e energy and t h e mater>i.als used i n the opera t ion of t h e systL..~,i, t h a t i s . :3. ' s t eady s t a t e f o r dynamic 'h:xneostasis , . . ilSO

Acc;~rdingly, an enterpi: w i l l f ' ;- ,Lil t o "survive i f ii;:: 5,l

i n p u t s do not a t l e a s t ;:qua1 i t s ou tpu t su , '

Gur r a t i o n a l e for xlopt ing -i;h..? systems approach i s

t o enable u s i d e n t i f y t h : var ious c p i t i c a l p a r t s of tk2 : :

e n t e r p r i s e under s tudy :md t o know how these a r e i n t e r -

r e l a t e d o r interconnecteid t o func t ion i n order t o a c ~ o ~ i i p l i s h

An e n t e r p r i s e such as t h e be nu^ Cement Company

Limited, i s viewed a s n sub-system " ~ i t h i n t h e l a r g e r

system o r soc ie ty . It h?s both i n t c r n a l and e x t e r n a l

environments and does not opera te i n i s o l a t i o n . By t:-e

systcms approach we as:.:;:rie t h a t i ~ ~ ~ , kjenus Cement C o r i ~ , aL:y

Limited has some f u n d m n t a l suk - - s t ruc tu res - adminis t ra-

t i o n , commercial, proouct ion, rna-1'>;, t i n g , Publ ic K e l ~ t i Ins

e t c . departments. Each or t h e s e de;)cnds on t h e o t h c r

f o r proper o r e f f e c t i v e ~ u n c t i o r l , r l L o f t h e compaily.

The systems approa(:'n enable, , u t o i d e n t i f y b o t h ,he

i n t , r n a l and e x t e r n a l i .lvironmenL 1 c o n s t r a i n t s ,(if :,II;T)

b

and. suppor ts t h a t impt.ai;li o r i n f l u i n c e s t h e company

f o r e f f e c t i v e performance. By t h e approach we assume

t h l t t h e employees make demands from t h e company's

Man~gement and o t h e r customers m d D i s t r i b u t o r s

c o n s u l t t h e company f o a l l o c a t i )n and supply of ccr; i-k

whcn t h e y need cement. L'hey a r c L i t h c r a l l o c a t e d

immediately o r a f t e r son? time ~ ~ c c o r d i n g t o a v a i l a b i l i t y

of cement and payment of advancc r lcposit . The company

stencls a loof from t h e customers and d i s t r i b u t o r s u n t i l

they- come f o r a l l o c a t i r , n . The ai..,;ram below makes t h e

p o i n t c l e a r ,

DEMANDS I S U P P O P 1 1 FROM ir

I EMPLOYEES

I N P U ':? C C!'.J7\rER S I ON

Ci-iIEF EXE-

SYSTEMS 14ODEL OF dENUE CEMENT COMPANY LIPUTZD

I n this and o t k r p u b l i c enterprises the ~rgan i zc t -

tional prmess cont inu(~s t o t s a v c l i t s continuous Xowpr

Demand and Supports~Conversion Process+ Outpu%s-,Wteomes--,Feedbacks+New Demands and 80 on, world without end. 11 52

ka illustrated in t h e d i a g r a r ~ ~ , demands and supports

are made by the employ-cs on t h e rnnnag~reent~ Workers

demand f ~ i n g e Benefits such as promotion, v e b i c k and

Houeing loana song o t h e r th ings ,

It i s the management t h a t nrticulates and aggre-

g n t ~ s all interests and carries out t h e conversion

proces&, Management d e ~ i f i e s and transforma inputs i n

an e f fec t ive and e f f i c J c n t maruler ts praduce t h e outcoo~es,

The systems approach enables u s t o i d e n t i f y t h e

environmental aupport Bike the 7v;l,illabiZLty sf new

mater ia ls needed which h e l g *Q sup imr t the company's

perf omance,

F u r k h e m r e , f iyq9~~ms maintain s t a b i l i t y in order

to survive, By a d o p t a g -the systcms approach we s h a l l

be able t o i d e n t i f y ~snagemont s t y l e o f %he company

i~ wder t o cope wit-& t h e de~arrds coming from $he

exteqnal er rv i rowe~ts , ~ Q P exwple , the c~mmun i ty

demands t h a t t h e e n t e r p r i s e shoulcl be a $'good c i t i z e n , 53

providing t h e maximum number of jess w i t h a minimum c F

* p o l l u t i o n , The Federz.1, S t a t e and Local governments

depend on t axes paid ?:y t h e e n t e r p r i s e , b u t they a l s o

exr: ~ :=t t h e e n t e r p r i s e t o comply ,with t h e i r laws, ihJh?.t

doe:.: t h e management d.o t o cope ,~Lt?i a l l t h e s e and cii;b&i-

demands in o rde r t o maintain s t - h i l i t y ?

In summary, from thl-. abovc oclr t h e o r e t i c a l fram 7 , $ark

and our r a t i o n a l e f a r lclopting i-'; h a s been c lear ly

s t a t e d .

Louis Allen, Mana7e nent and Organizations e , r m g ; P.5.

H. Koontz and C. O7Donnel, ~ r & c i p l e s o f ManaqLry= ,t Tokyo, 1972, P . -

{alph C. Davies, T n c -- Fundarn -.,- r-t; -, . l s of Top PIanagernxLfis& New '<;rk, 1951 ,>.6.

..%%.- - ..a 11. I, Cleland an:; ':!, R. Kin: , ,;:istems, Analysis -....." .-d Proj,:r-.-:: . --. , . . -. . .+-- Mana emr~nt, -- New York, M c G r a w ill 0 ompc:!ny, 1968, F .4 .

Donald J b Clough, C - - mcepts i n 14anagement Sciencc, EngL-.hood Cliffs, Prentice-Hall , 136? P.32.

Desmund Keeling, ':nagement i n Government, London, George , i l l en and Uriwin Ltd. , 1972, 1 .32.

Ib id P,gl-113 - Ib id P. 22 .- Donald J , Clough 2 . c i t - P.2 H. Koontz and C. OIDonnel, -.. o a c i t - P.46

Ib id - P,47

Ib id P,48 - Ib id - Ib id P.49 - Ib id v

George R. Terry; - Fr inc i p l e s .-. Mana ement Rich-ml D. L J ~ V , ? ~ ~ ~ ~ P.3

18. F. A. Nigro and L. G. Nigro, llodern Pub l i c Adrn i r1 ' ; - . t r a t i o n , 5 t h E d i t i o n , Harper and Row Pub. ?i(:w York, 1940, P. 121.

19, Kenis L i k e r t , New P a t t e r n s of Imagement ~ c G r ~ ~ - - = i - ~ i l l Book Company, N.Y. 1961. .5.

20 . P. .F . Drucker, T'h, Practicc- o f Management, Heint ~nn ~td: 15-76 E T - n :~=t Playfair ' r . 1

21. Professor H. N. ~ , : ~ l ; s u , Leci>ur7,? Se r i e s on Pub l i c Personrlel Manz,; w n t PALG, UNN, Novembc_r, 1988 -to Fc bruary, 1 989.

22. C, C , Nyi~:hukwu, lLma ernent, T h ~ o r y and P r a c t i c c ~f r i c''.?;a *i;.blishers Ltd. . 0 n T f ~ h a

I b i d - I b i d _I__

I,amard J. Kazmic~,, P r i n c i p l l . :: o f Manapement Tat? Mc2raw-Hill publish in^ Company L t d . , hbw Delh i 1979, p.478.

Harold Koontz, C y r i l OtDonnel-l and Heinz Weihrich, Mana;l::.ment, Ei.:;ht X i t i o n , 1nternatic;:lal ~ t u d c n m d i t i ' o n , l..IcGraw-Hill I n t e r - n a t i o n ~ ~ l Book Corr?any, Japan, 1984, k. 14..

I b i d P. 14-15 - G. E. Caiden, Thi J namics oi' Pub l i c Administr{,-i;j. ,. . )n -

Hol t --*n~ ~ ~ l n t . a r t . : inston, Inc. Hans.. ! l e

s9 , Sosna, - P u t t - i c =-. " Enterplxis :; i n Developin Countrids: ~ e ~ ~ ~ 3 t x i - t ~ ~ ~ Progresz ____I-

Publishers ~ o s c o ~ ~ ~ , P.26.

J. 0, I r i k w , "Future Chall.c~np;es f o r Niger ian - - P u b l i c Znterpri;;esic , Business Times, Lagos, idigeria June 22, 1987, ~.9:-"

M r s , F. K. Gyang; ',;cope and T i lues of Public Enterpr ises t1 Th(2 -\-i;.erian Standard -- Apri l 15, 1964>~8.

A. H. Rweyemanu ,:i?;? G , Hycic_n, -1 Decade of Public -.. Adminir c ra t ion in--"Trica, Eas t A f r i c m --- L i t e r * , t 7 r e Bure:iu, airo obi , Kampala, Dar Es Salaam, 1975, P.235.

A. H. Hanson e t -1, O r a n i z ~ t i o n and Administration .+ of Pul-~Lic nterprT-m9 --.

A, H. Rweyemanu an:: G , Hyden, Op c i t . P.235,

Ladipo Adamolekun, Public idmin i s t ra t ion ; -- ,- A Nigt;;4c2,n and Coir~parative Yerspective, Longmans Nigeri,: L t d , , Ikeje Lagos, 1983, p.41.

J. 0, Udoji, "Some neasures for improving Perfor- mance :md IvIanagment of Public Enter- p r i s e s , $ i n a Decide of Public Adminis ..L- . x t i o r . --- i n Africa Op.cit lJ.238

Ibid P.237 __D

Ib id P.233

Ib id P.234 - M. S, 0. Olisa , "Operation:>l iiutonomy I n N ige r im

Publ ic Uorporati{jnsii i n t h e f u t u r e of Public Corporations -- i n National Develoument , .-a- : A ~ o l i ? ? ' Study, Kuru, J o s 22-2i.i. Septemh:-r, 1960, ~ ~ 6 2 - 6 3 .

Ib id P.63

H. N. Nwosu, --- Prob lem of Nigerian Administration Fourth ~imension Rlbl i sh lng Coy. ~t&:, Enugu, ~ " i g e r i a , 1085, P.133.

G. E, Caiden, (1971 ) ; As quoted by i n A. H e Rweyemanu and G , il;iden, 0p.ci-t P-2.35.

S. A, Sosna, 0 p . c i t P.37-39.

Abdul Kadir, jsTht-, !{ole of PuXic En te rp r i ses i n - ~ a t i o n a l Developrl n t H New Nigeria -, June 11th 1984, : -6.

F. N. Kerlinger , $'oundatior,c, ( 7 ; Behavioural Ilcr -ch 2nd i y i t i o n , s& ' t i;L~swoode ~ a l a n t y h i bd., Great L3r i ta in , 1979, P.9.

The Quar te r1 Journal of 1 z i n i s t r a t i o n Vol . X V r ----- -. -- - ; 3 d i t e d b y Lqdipo ~darnolekun-

Abi-pr.int and PI\.: Ltd., Ibadan, Janurjr'y 1980, i ,111.

Ib id P.112 - Harold Koontz, Cyr i l O t D o r i r ~ , ; l l and Heinz Weihr ic . '4

S c i t , -. - P.15

I b i d . -- Austine Raney, -rief I n t r o ' uc t ion t o Po l i t i cc j .

Scicnc 2 , 2nd EL L bi9n, The Dryden s , c; 1975, k . f ' e

Harold Koontz, C r i l OfDocr-i-1 and Heinz Weihricll, 0p.c -L. 1.18.

64 CHAPTER THREE

HISTORICAL DEVELOPMENT !.I'D ORG.:NIZI'LTION .L .- STRUCTURE OF BENUE CEME - NT COMPPJY -- L I M X T ~ --A *-I

3 .I H i s t o r i c a l Development L -.-

m y a t tempt t o s tudy t h e Management of Bcnue

Ccment Company ~ o u l d be incomplete wi thout i t s h i s -

t o r i c a l development,

I n t h i s c h a p t e r , a t t emp t s have been made t o s t a t e

t h e h i s t o r i c a l development of t h e company, The c h a p t e r

w i l l f u r t h e r d i s c u s s t h e o r g a n i z ~ t i o n a l s t r u c t u r e of

t h e company.

1 I n t h e e a r l y 1 9 6 9 s t h e Geoloy<ical Survey Develop-

ment of t h e Fede ra l l l i n i s t r y of Mines ?n(1 power d i s -

covered t r a c e s of l imes tone d e p o s i t s a t Tsekucha-Mbayion

i n Gboko Loca l Government Area, Benue S t a t e . Th is d i s -

covery prompted t h e then Benue-Plateau S t a t e Government

i n t o cons ide r ing t h e e s t a b l i s h m e n t of a cement i n d u s t r y

i n t h e s t a t e i n view of t h e sho r t ages of cement through-

o u t t he count ry a t t h a t time.

Arrangements f o r a f e a s i b i l i t y s tudy were made and

by 1972, t h e Fede ra l Government i n d i c a t e d i n t e n t i o n t o

p a r t i c i p a t e i n t h e p r o j e c t , The ~ e d e r a l Government

then i n v i t e d Cementia Holding iiG of Zur ich t o under take

conf imrzrtive study for* the -st uotion af a cement

p l a n t a t Tsekucha-Mbayion, Gboko.

A s a r e s u l t of t h c confirm.?:i;ive s tudy and rcco!r,r;!'. .I-

d a t i o n s by Cementia Holding AG, t h e r e was a modifice '- . ' 1 L i...~n

of t h e i n i t i a l l y projected 600,U.X tonnes p e r annum

cerndnt p l a n t t o a gOO,UOO tonnes ].:I-ant.

i3y J u l y 16, 1975, .,&nue Ceri...:-;i Sompany was incoy-a

poroted as a limited 1 i : : b i l i t y COY^^ ciny wi th t h e f o l l o ~ ~ ~ [ -

in8 shareholders : - - Federa l Governl.,nt of Xik:c.rin - - Heme S ta t e Govurnment - - P l a t e a u S t a t e Government - - Cementia Holding AG of Zurich - - Nigerian Bank f ~ r Commerce and

I n d u s t r i e s (NBCI ) - - Niger ian I n d u s t r i a l Develop-

ment Bank (NIDU) - Cementia Holding >(A o f Zurich i n a d d i t i o n t o

a c t i n g as t e c h n i c a l p a r t n e r s wer t o become t h e i n i t l 1-

man :,,ement p a r t n e r s t o t r l e p r o j ~ - c t . t hey were, t h e r c . ~ ~ , e ,

givcn t h e r e s p o n s i b i l i t ; of d e s i ; p i n ~ , and c o n s t r u c t i ~ ~ ~

t h c factory. C o n s t r u c t i m work on ;he p r o j e c t commtnci '

i n a r n e s t i n January, 1977.

With a l l t h e cons, v c t i ~ n wo. : completed and

machines i n s t a l l e d , t'; company rolled o u t i t s f i r s t

According t o 0n.ilo::yo Eluekezi henue Cement Company

i s t h e most modern an;\ soph i s t i ca t i ?d cement f a c t o r y o ~ t

of t h e e i g h t i n t h i s country. The o t h e r s a r e WAPCO

( ~ w e k o r o and sagamu), XIGERCEM, C;~L,CEI4CO, ASHAKACEM,

B E N E L UKPILLA and the Cement Corn-gany of Northern

Niger ia , Sokoto. The product o f this company has bocc?:rie

t h e "builders f i r s t cc\-i.;>iceU i n :\iir-;.criafs c o n s t r u c t i o n

industry today. The ccjnstruction work a t t h e Nation ' is

New C a p i t a l Abuja cons:.irn?s over 30% of t h i s companyY s

h i g h q u a l i t y home madt product. -t i s i n acknowledge: ;~at

of the high s tandard t h e brand kiss ~na in ta ined s i n c e tb:

fir:: 't year of p roduct ion t h a t f o r t h r e e yea r s running,

t hi: company s product - t h e LION XiiiND PORTLAND CEW,l<i'

has rece ived t h e C e r t i l ' i c a t e oi' :,r.o:iuct q u a l i t y from

t h e Standards Organ iz~Aion of Ni[;<.ria. 5

3.2 C h a a ? ~ ..-. P h ~ l o s o p h " ------ nd Object ive -- The Philosophy of Alenue Cerri.:n t Company Limited

s t a t e s thus:

Our company is n p r o f i t - o r i 2 n t . d o rgan iza t ion

whose primary o b j e c t i v e i s t o pro5uce and market

top q u a l i t y p r o w s 2nd servic,:s a t t h e most

prof itable pri ce . I n doing s o we w i l l recognj.zL: our r e s p o n s i b i l i " - ~ . s

t o our shareholders , ci::.;7loyers, customers and t h e

envi mnments . . . 6

The main o b j e c t i v e o f es ta ; . . ) l i sh ing Benue Cement

Company L i m i t e d was t o harness the abundant raw mati2rl .d

(limestone) a v a i l a b l e .in t h e loc :~ , l i - t y .

It was hoped t h , i- -!;he cornl,,~ny would ensure ad~-.!~~t t~

supply of cement f o r thd numeroil: i n f r a s t r u c t u r a l

p r o j e c t s embarked upou' by i nd iv idu ils and governments

i n t h e country. Also, i t was re-s,med t h a t t h e camp, nv

would provide g a i n f u l employment to t h e people espcc.1 %lly

t h e indigenes .

3.3 Location

From t h e foregoing, . , it i s c l t , r t h a t Benue Ccn L;

Campany was es tab l i s ' t l , a t i t s n r c s e n t s i t e - Tsekuct! - Mbayion, Gboko due t~ tho a v a i l r b l e large d e p o s i t s c'

l iml?stone i n t h e area. -1s0, ev n though t h e compan-7

does no t use water i n i t s product ion process , a str<:: -dart, b

n e a r the factory site p r o v i d e s an adequate supp ly of

wa t e r f o r o t h e r u s e s i n t h e p l a n t .

Q The l o c a t i o n of t h 2 Company 3t Tsekucha-Mbayion

on Alilometre 72 Makurcli-Zboko ro?d makes it e a s i l y

a c c e s s i b l e from any p a r t o f t h e country . P l a n s a r e ai:,o

underway t o connec t a r ~ i l w a y l i r i t o t h e f a c t o r y . It

i s hoped t h a t when c o n s t r u c t e d , -5hc r a i l l i n e w i l l i ' u r the r

f a c i l i t a t e t h e e a s y t r a n s p o r t a t i o c of t h e f i n i s h e d

product as w e l l as t h e ;.:.<~ulage of (Clinker t o o t h e r

cement m i l l s i n t h e c o x t r y .

Map I i s a map of knue Sta5c showing the Loca l

Government Counc i l s ant! t h e study a r e a .

* 3.4 The P roduc t

The Company i s renowned f o r p roduc ing t h e f i n e s t

O r d i n a r y P o r t l a n d Cement (oPC) con fo rn ing t o t h e

N i g e r i a n I n d u s t r i a l S t anda rd (NIS) and t h e Universc LLy

accep t ed B r i t i s h S t a n d x d ( B S ) . The s u p e r i o r i t y of

Lion Brand P o r t l a n d Cement s tems from t h e h igh q u a l i t y

l im(2stone which is unsurpassed by any i n t h e coun t ry .

T e s t s c a r r i e d o u t i n Swi t ze r l and m d Germany by several

c o n s t r u c t i o n companics show t h a t Lion Brand Po r t l and *

Cement meets t h e i r r equ i rements ,?s a s p e c i a l cement of

3.5 market&^ -4 Tbe Campmy's Gustomem consists o f mainly irsbividuals

aod cos?p~rate bodies %ha$ we engaged in buPldf~g wd

other foma of coaaQruction, They a r e categorized as

Pollmmr -

e) XndustriaX users who use cement aa %heSs wajas raw msteria33; and

It i s cbgas Pgwq t h e above t h a t de22besw$ie efforts

taking ~ h a r g e 81 each zone. The sales zones are as follrpws: \

Eastern Zone A

Eas t e rn Zone B

Cen t ra l Zone A

Cen t ra l Zone B

Western Zone A

Western Zone B

Northern Zone

Snnthern Une

Benue S t a t e

Benue

~lateau/B, :uchi

~ l a t e a u / l l t L c r a l C a p i t a l T e r r i t o r y .

~ n a m b r a / i ~ L , / c ross River 8 Bendel and Kiver s S t a t c s .

In a d d i t i o n t o t h ~ above arrangement t h e company

has H I B ~ dfices in Gboko, Makurdi, Otukpo, J o s , Ka<.u~- > ,

Abuja, Enugu, Yola and Lagos which make i t easy f o r

W company t o reach an: serve hdr customers.

It could be seen from t h e t ~ i s t o r i c a l development

of t h e company t h a t i t i s an ex:::inple of i n d u s t r i a l

co-operation. The shar;: holding r x g e s from Goverr.m:.:r.~ .,

t o S i n a n c i a l i n s t i t u t i o n s and thc t e c h n i c a l p a r t n e r :.: n e n t i a .

The nex t s e c t i o n of t h i s chapter t a k e s a look :A-L

t h o o rgan iza t iona l s t r u c t u r e of' t h ~ ! company.

3.6 Organiza t iona l S t r u c t u r e

Every o rgan iza t ion has a s t; of ob jec t ives . Thc

grouping of a c t i v i t i e s j.n accorti-nce with t h e f u n c t i o m

of the o rgan iza t ion tr .:chieve t h ~ s t a t e d ob j2c t ives i s : L

widely accepted p r a c t i c e . The or:-c>nizational structure

of an e n t e r p r i s e i s a framework f o r c a r r y i n g out respotl-

%. s i ? ~ i l i t y , f o r t h e manngenent, for Lhe d e l e g a t i o n of

a u t c o r i t y , f o r t h e co-r r d i n a t i o n o , 3 c t i v i t i e s and f o r

mot iva t ion of i t s men~l,~.rs.

According t o T. , L A . Surhan x i * . ;I. Bramley:

uOrganizat ionnl s t ruc tu l ' e i l l u s t r a t e s t h e span ol c o n t r o l or ~ 9 c h managerial p o s i t i o n 1.ir1.A most important of a l l , enables thix i l l t imate p r i n c i p l e of o rgan iza t ion t o be obslArvcd.. . !'9

T h c o r g a n i z a t i o n a l str8u::ture of s company has g r e a t

relevance t o e f f i c i ency because it :!cals w i t h t h e

e s s e n t i a l elements i n o r g a n i ; r , ~ t i o n such as d i v i s i o )

of iabour, power r e l a - t ionsh ip , r ~ , s p o n s i b i l i t y , speci:;li-

z a t i o n and interdepend,:nce of pa1,ts of t h e system.

According t o Nwachukmi9 C .C. :

"Sound o rgan iza t ion s t r l , ~ c t u r e involves d i v i d i n g ac; i v i t i e s il: -3 departments, d i v i s i o n s , u n i t s an(: s l l J -uni ts , d e f i n i n g rL17 tionship: , between t h e heads and r ? . ber s th:& .?ake up t h e uni ts ." lO

The most important t h i n g about an o rgan iza t iona l

strur:ture i s i t s e f f e c t i v e rnaniy:d,i ion by t h e human

+ element t h a t ope ra t e s thd s t r u c t u r t . The crux of this

p r o j r c t work i s how e f ~ c t i v e doLs t h e management of

Benu~ Cement Company op- ra te t h ? cot, -3n iza t iona l

s t r u c t u r e f o r t h e e f f i c i e n t per fomance of i t s functi i , IS,

Organiza t iona l s t r u c t u r e s , ~ c c o r r l i n g t o Char les

Perrow, could be c l a s s i f i ed according t o t h e r o u t i n c s

of t h e technology, The less r o u t i n i t h e technology,

t h .n 3 mmechanistic s t r u c t u r e i s apnropr ia te , IJIechai7l.t; LC

structures a r e a l s o known a$ bureauc ra t i c s t r u c t u r e s

whose management fol lows t h e c l z t . s i c a l t h e o r i e s of

manc:zement, A n organizf- t i on l i k e Gcnue Cement Comparl,,

whose technology i s r o u t i n e (accor-! ing t o perrow) s t ~ u l d

(an(! ha$) a bureaucra t ic s t ruc tu r t . , The v i r t u e o f t h ,

bureaucratic s t r u c t u r e i s t o m a x i ~ i ,e c o n t r o l o f hurn~~r!.

and ma te r i a l resources. Such st:,lx-Lures emphasises r d s

and regu la t ions , and h i ~ r a r c h i e s i n r epor t ing r t . l a t i ~ ; ~ - h i p c .

The company under :- .udy i s \li r a r c h i c a l i n orgol;i .a-

t i o n , Figure I i s t h c organizati~r,:: . l c h a r t of the con:;-l,-iriy.

Eenqe Cement Company h , s a Mwat6ing Di rec to r who is on

the coqpanyl s Board of d i rec tors ?n i s t h e Chief ExLc-: t ive

of t h e Company,

The Organizat iond S t r u c t ~ r ~ . approved by the Lo: 1 !

\. of Direc tors shows t h a t the re would be two General

I Managers f o r Finance/;. l 3 i n i s t r ~ ' ~ ' ~ n and Technical Givisions.

There a re s i x Ass i s t an t Gen,.ral Managers f o r

Fin:.rlce, Administrati on, Commerc : ,-1, Production, an1-l

Eniineering Services. &he post 01 Company sec re ta ry /

Legal Adviser i s a l so i, i iissistmt Gt-neral Manager st t l ~ : ; .

The o f f i c e s of t t i , Company SL clqctary/Legal Advisc:r,

Public Rela t ions and Commercial are d i r e c t l y under the

Managing Director .

Nineteen ( I 9) o f f i c e r s of lblandger s t a t u s oversce

the following departments: Public i?t . lations, I n t e rna l

\a Audit, Lagos Liaison O f l ' ice, Corpur i-ce planning and 1-1; La

Processing, Finance - ~ ~ c c o u n t s , Man ~gement - Account;,

Personnel, Es t a t e Maintenance, 1 i,.dical, Training ancC

Man;jower Development.

Others include, i'.';ar.keting, L21gs9 Production,

Quarry, Q u a l i t y Control , Mechanical Engineering, Electrical

Engineering, Power Hou,c:;-:, and l-:?-. chasing and Supply.

I t could be seen from the s . t ructure t h a t a l l thc

orgnns of t he company or-e respo~is i l ~ l e t o the Planagini b

Dir~ .c to r and Chief EXLL: hive ei-th -- d i r e c t l y or i n d i r t c t l v i

through h i s ima&i&a subordinates . The organiza t ionr!

structure shows t h e au thor i ty r7z1::tionship of the co ,12y

and the v e r t i c a l and t he hor izon ta l p a t t e r n of i n t e r -

ac t ion .

There i s the net. l t o b r i e f l y h igh l igh t t he man _

mcnt process of t he cor;;:,iny i n o r ~ , - r t o assess i t s

managerial ef f ec t ivenc ss.

Management which i: 2 prom : of leading other:;

i n a co-rative e f f o r t t o realj .sL, 2 se t purpose i s

an e s s e n t i a l charac ter i . ; t i c of * ny grganizat ion, ;ji-n~. ,

C e m ~ n t Company i s a L i i t e d Lial - j i? lty Company and s o

has t o depend and re1 I.,_ e f f e c t i v t i y t o the shareholrli.rs.

Extreme dependency, ho;kr ver , mk:r s the autonomy princj. ,le

i n which an o r g a n i z a t i m i s concL:i,,d. Though Benue

Cement Company i s expected t o operate a s a p r o f i t

making organiza t ion , c i . r ta in con-trols over genera l

p o l i c i e s a r e vested on -the share holders. The Board o f

Direc tors may give the company .:ir c t i v e s of a gent:tqz-&.I

charac ter a s t o t h e !?i.scharge o:? i-k:: d u t i e s a s may

appear t o t he Board nl ccssary t o nsure conformity i:!il,.i

t he i n d u s t r i a l po l i cy 1~1f the go-d- ~rnrnent and t he coil1 !: ;

has t o comply even a t t,hc expens,- c l n ~ r m a l opera t ic l ,. b

T h e &ewreral e x p e c Lation is t h s t an org;anizatior,

according to Teriba:

"should be a l l o w d ns f a r ~s possible t o ca r ry out i t s funct ions w i t h f l e x i b i l i t y i n -1 manner b c i i t t i n g a commercial cnterpr ises ' l 2

TMgr 'the Board of , l i ;-ector* i,; t he Managing Dir,:c cor

and Chief Zxecutive wt;o ensures c t l a ~ ; t he company m?c ts

adequa;te pol icy i m p l ~ ~ r : <rl tat ion c'. ~ r h t e v e r nature. 111

uur study 01 the manag-.:nent of t h i s company the fo1loi;iinp:

p r i nc ipa l Divisions pr covered,: il i nance /~dmin i s t r ~ C i o r i ,

an-1 Technical Divisior~.;. Each o t h e s e Divisions i s

3-1 aanx&Administr;$ion Divisis

This div i s ion i s m7de up of two sec t ions Financc m u

Administration. Each of' t he sec t ion is headed by an

Ass is tant General Manay-r.

The f inance s ec t i on cons i s t s of Finance - Account

and Management Accounts Departments. The Departments 're

hca-led by hcads known , s Msnagers.

The f inance sec t ion i s centr9::l t o t he operation, 1

capab i l i t y of any organization. To produce and sell -1-.:~.:!rc

must be adequate financ._. t o acy::.i.-.e t he necessary a

111aci1 i.n?ry and other supplies . TI1 : .i7... should a l s o be ~.!n.<'!igh

cash t o meet o b l i g a t i o n s f o r wag~?s , s a l a r i e s , misccl!. neous

expenses and o t h e r n e c e s s i t i e s .

- The s e c t i o n a l s o performs the s t a f f f u n c t i o n s 02-

maintaining records , l i v i n g advict. and gene ra l ly co;l \.let-

in;:. d u t i e s involv ing rri'nnetary tr:ms:ictions. I t i s fu:,-:;her

concerned with t h e r?cor73ing of t r a n s a c t i o n s so a s tc be

a b l c t o c a l c u l a t e p r o f i t o r lo:::; i;r more t r a n s a c t i o n s ,

anci t o show t h e a s s e t s :-lnd 1iabi.-i. i-Lies owned o r incuri9cd

by t h e company.

Adminis t ra t ion Sec t ion

"Administrat ion .i t h e or, :ni r - t i o n and LLirec.tioL~

of persons i n order to ~ccornpl i~t .1 :j s p e c i f i e d endbi . 13

I t i s t h e f u n c t i o n of -11 comparly c ~ i ' f i c c r s below t h e

Board of Di rec to r s . Those h ~ a d s of Departments art

i n d i v i d u a l l y and c o l l c t i v e l y ri :sponsible f o r t h e ini-l11-.-

mentation of t h e compmy's p o l i c i t : ; t o achieve i t s

o b j e c t i v e s . I n t h e main the Man.,:iilg Di rec to r and

Chief Executive s e e s t o t h e ovr)r2ll admin i s t r a t ion o.'

th r> company.

The A d m i n i s t r a t i v ~ s e c t i o n comprises of PersonK 7 ,

E s t a t e maintenance, M(- .: i c a l ser.i . ic:?s, and Train ing .ii

Development Departments. Each cL.:r,:2rtrnent i s headed !;)! .-1

Manager.

function8 weh as recrwitemt, placemen*, promotion,

.., discipline and termination o f s t a f f .

COMPERC?IAL JIVISION ---w

The Commercial d iv i s i on w h i c h i s headed by an

Assistant General Manager comprises of Marketing an:.

Sale9 Departments eaoh headed by a idimager* T h i s

d i v i s i o n i s d i r e c t l y r -spons ib l , t o the Managing D i r ::-tor

and Chief Executive,

T h i s d i v i s i on is incharge of' s a l e s , market rescr,.l:ch,

adver t i s ing , s a l e s s t a - t i s t i c s , xx! sales promotion.

THE COMPANY SECRETARY/LdAL ADVI Z R - -. ---- The Company Secretary/Legal ~ ~ d v i s e r is headed by

t h e ,dquivalent of an Assistant Ge?nt2ral Manager. This

s ec t i on i s directly respons ib le t o t h e Chfef E x e c u t i v ~

'I and undzr t h i s is the I-u'olfc Rel2tions Department h m &?ri

by a IJlanager,

The sect ion i s incharge of 311 correspondences

of t he company and promoting t he p u b l i c image of t h e

company,

Other departmentti d i r e c t l y res;)onsible t o the Chi-f

Executive are Audit, LL\,OS Liaison d f f i ce , and Corpo:? te

Planning, Each is hesddd by a Xanager, and t h e y arc

responsible f o r t h e performance of various funct ions ,

I t could be seen +:rom t h e : '.,ow t h a t each divisic:1

o r department bas some spec i f is<; :f imct ions t o accornqi:L;.i:;h

%-. i n o rde r t h a t t h e s y s t ~ i . r i (company) I u n c t i o n s e f f e c t i - v . ly

an<! e f f i c i e n t l y .

The e x t e n t t o w i : , i c h t h i s a,-:~l;:;~;crnent f u n c t i o n s ;,J'~.

cf-Li;ctively performed is t h e conci>rn of t h e chap te r

t h a t fol lows.

Benuc S t a t e of Ri .ria: Des i , -n d by Di rec to ra t e o-' Inforl , ,zt ion, Off i c of t h e Governor, Makurl i ; Onaivi P r i n t i n g P r e s s , Makur i, 1983, 9.40

Bcnue Cement Cornl-~.~.~~;i; P r ~ d u c , ~ :: by t h e Marke t i n 6 Department , N e w L ~ n e r a t i o n Production P r i n t s r s , Makurdi, 1987, P.S.

Onuonye Eluekezi (Tra in ing ' -in lg-er) "Lion B r a n d Cement Product ion ' . , A Paper p r e s p n t ; a t t k i ( 2 Yraining Schoo l , B.C.C. May ic,(th, 1982, f'.ll.

knue Cment Compmy L i m i t i l c l A t d Glance: Prepsr , I and y.rndur=ed by t;hc Public Relation,: Dept . , 3.C .C, L t I., Gboko, I 988, P.6,

Ibid P.1 - I b i d . , P.6

T. H. Burnham e t al; Engineering Economics and Managcmnt; S l r Is-ac Pitman and Sons Ltd. , Tingsway (:. /, London, 1960, P.26.

Charles Perrow ( * i f : , b); a s quo t . by Sombo Adzend2 tfImpro-ring Protluc t i o n i n Niger ian Organizat ions : A iiiirage?'r BEPJCEM NE>V':; J an . , - March, 19?9, S i x t h Issue, F.10.

12. D. J. Murray e t d; Studie:, i n Nigerian kdrninkt -.- . A- >a- tion, JIutchinson and Co .Lt ', - F. Sq i r , London, '1'378, P. ,'.

1 J . Augustus Adebayo ; r r i n c i bly 1 2: rnd P r a c t i c e of Pu lc I h i n i s t r a t i o n i n ll ' i r - , ---. John d i l - . y and Sons, N.Y. -19i1,

CHAPTER FOUR

P R E S E N T A T I O N , A N A L Y S I S OF DATA AND TEST OF HYPOTHEXES

A t t he e a r l y s t age of t h i s work, we pu t forward

four hypotheses t h a t would enable us prove t h e f a c t o r s

t h a t could l ead t o t h e e f f e c t i v e Management of P u b l i c

En te rp r i ses i n Nigeria .

A s shown under t h e methodology, the data c o l l e c t e d

made possible through t h e use of var ious t o o l s o f

s o c i a l research which included Library research and

ques t ionnai re .

For a n a i y t i c a l purposes, we s h a l l r e l y heavi ly

on t h e ques t ionna i re because t h e number of those who

re turned wel l completed ques t ionna i re s were s u f f i c i e n t .

Out of 24 ques t ionna i re s administered among company

Managers i n the Divisions/Departments t h a t made up t h e

sample s i z e 21 were returned. S imi la r ly o u t of 276

ques t ionna i re s administered among o the r company s t a f f

255 of them were returned. Here t h e responses t o both

q u ~ s t i o n n a i r e s would be used t o t e s t t h e hypotheses

as they r e l a t e t o them.

The responses t o t h e f a c t u a l ques t ions on t h e

ques t ionna i r e administcmred among o t h e r company s t a f f

i nd ica t ed t h a t a t o t a l of 177 o r 69.4% of the respondents

were males while a t o t ~ l of 78 o r 30.6% were females.

'This i s depic ted i n t h e Table below.

'TABLE 1: DISTRIBUTION OF WSPONDENTS BY SEX

The d i s t r i b u t i o n of t h e respondents by q u a l i f i c a t i o n

on appointment i n t h e category of o t h e r s t a f f i s shown

i n t h e t a b l e below:

TABLE 2 : DISTRIBUTION OF RESFONDENTS BY CIUALIFICATION ON APPOINT -- - MENT

WASC/GCE O/L

First Degree

From the above t ab l e it could be seen t h a t a t o t a l

number of 22 or 9% of trle respondents were holders of the

Primary School Cer t i f i c a te . 65 o r 2% of them were

holders of West African School Ce r t i f i ca t e or the General

Ce r t i f i ca t e of Educati'1.1 Ordinary Level. 95 o r 37%

of the respondents wer2 holders of the National Diploma

or the Higher National Diploma, while 73 o r 2% of them

were h o l d e r s of the F i r s t Degree.

S i m i l a r l y , t h e responses t o the f ac tua l questions

on the questionnaire al.lrninistered among company Managers

ind ica ted t h a t by sex ;hey were all males.

TmLE 3: LEL-.DISTRIBUTION OF COMPANY 14ANAGERS -- SEX I NUMBER I PERCENTAGE - Male

Female I I I

TOTAL I 21 I -.- -

100 I T h e d i s t r i bu t ion of t h i s category of respondents by

qua l i f i ca t ion on appointment i s shown i n the Table

below:

TA3LE 4: UISTRIEUTION OF COMPANY MANAGERS BY QUALIFICATION ON APPOINTMENT

QURLIF ICATION - WASC/GCE O/L

H N ~ / F i r s t Degree

Masters Degree

I Ph.D

NUMBER 1 PERCENTAGE I

From t h e t a b l e above it could be seen t h a t a t o t a l

of 12 o r 5'7% of t h e cvrnpany managers were ho lde r s of t h e

H i g h e r Nat iona l Dip1orr.a o r t h e First Degree. A t o t a l of

9 o r 43% of them were ho lde r s of t h e Masters Degree,

The d i s t r i b u t i o n of t h e company Managers by t h e

number of years t hey have been heading t h e i r d i v i s i o n s

o r departments is shown i n t h e t a b l e below:

1 - 2 Years

From t h e t a b l e , a t o t a l of 1 o r 5% of t h e respon-

d e n t s has been heading h i s s e c t i o n f o r a pe r iod of

1 - 2 years . 11 o r 52% have been heading t h e i r departments/

d i v i s i o n s between t h e l a s t 3 - 4 years while a t o t a l of

9 o r 43% have been heading t h e i r s e c t i o n s f o r a pe r iod of

5 years and above.

I t could be i n f e r r e d from t h e above p r e s e n t a t i o n s

and i n t e r p r e t a t i o n s t h a t t h e e n t e r p r i s e under s tudy

has q u a l i f i e d personnel i n terms of c e r t i f i c a t i o n . This

1 s with respect t o t h e management s t a f f and o t h e r

employees of t h e company.

However f o r t h e purpose of t e s t i n g our hypotheses

we s h a l l r e l y on t h e op in ion ques t ions on t h e ques t ionna i r e .

Our f i r s t hypothes i s i s "The a t ta inment of e n t e r p r i s e

o b j e c t i v e ( s ) i s dependent on human resource

managementii, To f i n d out t h e fa l sehood o r t h e t r u t h

of t h i s s ta tement , ques t ions 6 , 7 , 8, 9 , 10, 11 and 1 2

have been asked on t h e ques t ionna i r e adminis tered among

o t h e r company s t a f f .

Ques t ion 6 :

. How were you r e c r u i t e d by t h e Company?

The responses t o t h e ques t ion a r e presented and

i n t e r p r e t e d as follows:

TABLE 6: - RESPONSES ON THE METHOD OF STAFF RECRUITMENT

RESPONSES -CI 1 NUMBER I PERCENTAGE 1

Favourit ism I 0 I Tes t /~xa rn ina t ion

In te rv iew

B & C only

None of t h e above

From the t a b l e it could be seen t h a t a t o t a l of 159

o r 62.4% of t h e respondents were employed through i n t e r -

view. 49 o r 19.2% were employed through ~ e s t / E x a m i n a t i o n

and In te rv iew while 47 o r 18.4% were employed through

~ e s t / ~ x a l n i n a t i o n . T h i s means t h a t t h e methods of

r e c r u i t i n g s t a f f by t h e company a r e

in te rv iew and a combination of t hese methods.

According t o Henrich:

i t t h e most important a s s e t of any indus t ry o r business o rgan iza t ion a s it marsha l l s i t s resources t o achieve a p r o f i t and t o meet cornpe- t i t i o n i n t h e dynamic years ahead i s know-how human t a l e n t N . l

One of t h e aims of human resources management i s

t o obta in f o r the organiza t ion t h e g r e a t e s t poss ib le

b e n e f i t from the employees through an e f f i c i e n t use of

t h e employee's ap t i tude and a b i l i t i e s . To accomplish

t h i s , the organiza t ion must be able t o i d e n t i f y t h e c r i -

t i c a l s k i l l s and a b i l i t i e s it requ i res t o achieve i t s

objec t ives .

Test/Examination, Interview o r a combination of

both are known t o be s a t i s f a c t o r y methods of recrui tment

processes. According t o Braddick:

"A very s a t i s f a c t o r y means of s e l e c t i o n i s t o br ing a l l t h e candidates toge the r , ... t o ask each t o give a s h o r t t a l k , t o in terv iew them s e p a r a t e l y , , . before f i n a l l y deciding". 2

I f the management of our pub l i c e n t e r p r i s e s a r e t o be

successfu l the human resources element which w i l l help

accomplish the e n t e r p r i s e o b j e c t i v e ( s ) must be se lec ted

or r e c r u i t e d through s a t i s f a c t o r y methods. Enterpr i se

ob jec t ive ( s ) cannot be achieved without employees w i t h

t h e r i g h t s k i l l s and know-how.

The impl ica t ion of t h e responses t o t h i s quest ion

i s . t h a t a l a r g e percentage of t h e employees were

r e c r u i t e d through s a t i s f a c t o r y methods. This lends

credence t o our f i r s t hypothes i s sha t t h e a t t a inmen t

of e n t e r p r i s e o b j e c t i v e ( s ) i s dependent on human

r e source management.

Question 7 : - .-- How many of t h e s e wel fa re s e r v i c e s do you en joy

from t h e company?

The responses t o t h e ques t i on appear and a r e

i n t e r p r e t e d as follows:

TAGLE 7 :

RESPONSE I-- .-A . -.- - - - Free iiccomri~odation/ Rent subs idy

I Free Medical Care I Free ran sport/ Vehicle Loan

S p e c i a l d l o c a t ion

I

PERCENT !;GE

The above t a b l e shows t h a t a l l t h e respondents

en joy f r e e accommodation o r t h a t t hey o b t a i n r e n t

subsidy, f r e e lunch ( though a t h i g h l y subs id i zed r a t e ) ,

f r e e

medical c a r e and f r e e t r a n s p o r t ( a t h igh ly subs id ized

r a t e ) o r v e h i c l e l o a r from t h e company as p a r t of w e l -

f a r e s e r v i c e s . 193 o r 76% of t h e respondents en joy

s p e c i a l a l l o c a t i o n o r s t a f f s a l e . The i m p l i c a t i o n of

t h e s e responses i s t h a t a l a r g e number of t h e employees

enjoy a number of we l f a re s e r v i c e s . This shows t h a t i f

employees9 wel fa re an? proper ly addressed by management

t h e y will c e r t a i n l y give o f f t h e i r b e s t i n o rde r t o

accomplish e n t e r p r i s e objective(s), A s po in t ed o u t by

La11 and La11:

'!If t h e f o r n a l o r g a n i z a t i o n meets member's needs, t hey w i l l p u t f o r t h t h e i r b e s t e f f o r t s f o r t h e organiza- t i o n , but i f it does n o t meet t h e i r needs , they w i l l work wi th equa l enthusiasm t o thwar t t h e purposes of t h e o rg&niza t ionu .

Ques t ion 8:

Have you undergone any t r a i n i n g s i n c e you were

employed by t h e company? The responses t o t h e above

ques t ion a r e p re sen ted a s fo l lows:

TABLE 8;

From the t a b l e a t o t a l of 144 o r 56.9k of the res-

pondents have undergor (2 some form of t r a i n i n g s ince

they w e r e employed by the company while a t o t a l of 111

o r 43.9h have not. T r : in ing i s an important p a r t of

human resource managuent. I t could sometimes be on the

job, sho r t o r long term o r even formalized courses.

Training no matter tt-c type i s important because it

enables t he s t a f f :

l 'to grow iri knowledge, i s exposed t o new de~elopments i n technology and manag~ment and i s made t o c u l t i v a t e a very s trong sense of belonging' .4 *

The management of an en te rp r i se could

r ee l i z e the s e t o b j x t i v e s i f employees who a r e t h e

human resource element i n the organizat ion a r e

managed through t r a i n ing .

Quest ion 9:

I f your answer t o quest ion 8 is yes, who sponsored

you? This question was asked a s a r idder t o quest ion

8 i n order t o determine the ex ten t of the e f f o r t s made

by the management t o t r a i n the employees. The responses

t h a t were given a r e as follows:

TABLE 9:

The Company

T h i s shows t h a t a to7,al of 144 or 5 6 , s respondents

t h a t have undergone some form of t r a in ing since they

were employed by the company were sponsored by the corn-.

pany fo r t h e i r t r a in ings .

Question 10. - Does l a t e payment of s a l a ry occur i n the company?

The responses t o t h i s question are presented i n the

t ab l e below:

PERCENTAGE

From the above t ible it could be seen t h a t a to- tal

of &I or 16% of the r2spondents were of the view t h a t

l a t e payment of sa la ry occurs i n the company while a

' t o t a l of 214 o r 84% of the respondentswere of the

contrary view, t h a t i s , l a t e payment of s a l a r y does

not occur i n the company.

Prompt payment of s a l a ry as and when due promotes

employees morale and good working r e l a t i onsh ip between

the Management and employees. Recently, t he employees

of Agro Mi l l e r s , a l imi ted l i a b i l i t y company i n Makurdi,

Benue S t a t e placed the management s t a f f under ''house

a r r e s t u , Their reason was:

E f i n p r o t e s t over al leged non-paymeht of t h e i r December 1989 s a l a r i e s , SAP r e l i e f package and o ther allowances due t o them. According t o the workers, it was no longer t o l e r a b l e t o continue t o work on empty stomachsllS

It could be i n f e r r ed from the above t h a t i f s a l a r i e s

a r e delayed it leads t o i n d u s t r i a l disharmony and reduc-

t i o n i n out-put on the p a r t of t he management. Regular

payinent of s a l a r i e s i s an ind ica to r of e f f ec t i ve human

resource management i n an en t e rp r i s e . A s pointed out

by Koontz e t al...llmoney can never be overlooked as a

motivator. Whether i n the form of wages, piecework o r

any o ther incen t ive pay bonuses, s tock opt ions, company- *

paid insurance, o r any of the o ther th ings t h a t may be

given t o people f o r performance, money i s important". 6

96

Ques t ion 11:

Have you been g e t t i n g your normal promotion s i n c e

you became an employee of t h e company? The responses

a r e p resen ted and i n t e r p r e t e d a s fol lows:

TABLE 11 :

I I Yes I

I ! I

Frm t h e t a b l e a t o t a l of 184 o r 72% of t h e re*

pondents have been g e t t i n g t h e i r normal promotions

s i n c e they became employees of t h e company. A t o t a l

of 71 o r 28% of t h e respondents have n o t been g e t t i n g

t h e i r normal promotions s i n c e they became employees af

t h e company.

Even though n o t de r ived from t h e d a t a above, it i s

a f a c t t h a t when employees a r e e l eva t ed t o h igher

p o s i t i o n s a s and when due, t hose a f f e c t e d become d i s c i - b

p l i n e d , e f f i c i e n t and f e e l committed t o t h e p rog res s of

t h e e n t e r p r i s e , The management w i l l r e a l i z e t h e en t e r -

p r i s e o b j e c t i v e ( s ) i f employees a r e managed i n t h i s way.

The l a s t ques t ion asked t h e respondents i n t h i s

ca tegory t o t e s t our f i r s t hypothesis i s ques t ion 12.

Does t h e management always a t t end t o your corn-

p l a in t s /g r i evances? The responses t o t h i s ques t ion a r c

presented and interprl.?ted a s follows:

TABLE 12: _I_.-

RESPONSES k i- NUMBER I PERCENTAGE I I

I I

TOTAL I 255 I 100

From t h e t a b l e it could be seen t h a t a t o t a l of

177 o r 6% of t h e rcspondents have t h e i r complaints/

g r ievances a t tended t o by t h e management, w h i l e a t o t a l

of 78 o r 31% of t h e respondents ' complaints /gr ievances

were n o t a t tended t o by the management. If 78 or 31%

of the respondents f e e l t h a t t h e i r ~ o m ~ l a i n t s / ~ r i e v a n c e s

a r e no t a t tended t o by t h e management, something i s

wrong, and t h ~ environment cannot be s a i d t o be hea l thy .

The Management should do something about it.

I n a s i t u a t i o n where t h e management a t t e n d s t o tho

complaints and gr ievances of t h e employees c o n f l i c t s

cannot e a s i l y a r i s e , T h i s i m p l i e s t h a t t h e channel

of communication between management and employees must

be open f o r bo th t o confer on m a t t e r s of disagreement.

Th i s w i l l enab le t h e management t h e oppor tun i ty t o t a p

t h e i n t e l l i g e n c e and t h e l e a d e r s h i p p o t e n t i a l s of t h e

employees. According t o Marx and Engels:

!!Workers should n o t be t r e a t e d a s t h i n g s , commodities o r mere ins t ruments of l abour r t7 ,

Although n o t de r ived from t h e d a t a above, it i s a f a c t

t h a t employees abe human be ings with human sen t iments

of a l l k inds , They want i n a d d i t i o n t o job s a t i s f a c t i o n ,

se l f -es teem and r ecogn i t i on . I n r e t u r n f o r accord ing

them r e c o g n i t i o n they t r y t o i d e n t i f y t h e i r l i f e f s a sp i r a -

t i o n s w i t h t h e e n t e r p r i s e . The management of an en t e r -

p r i s e w i l l t h e r e f o r e accomplish e n t e r p r i s e t s o b j e c t i v e ( s )

i f worker t s cornplaints /gr ievances a r e a t t ended t o

accordingly.

TO f u r t h e r f i n d ou t t h e fa lsehood o r t h e t r u t h of

ou r first hypothes i s q u e s t i o n s 7, 8, 9 , 10 and 1 2 were b

added t o t h e q u e s t i o n n a i r e adminis te red among company

managers,

Q u e s t i o n 7:

How d o e s t h e company r e c r u i t h e r s t a f f ? The

r e s p o n s e s t o t h i s q u e s t i o n a r e p r e s e n t e d and i n t e r -

p r e t e d a s fo l lows :

TABLE 13:

-- -- RESPONSES 1 NUP~E'R ' . PERCENTAGE f -- --- . -- . - .- -4 -

t f Tes t f ixamina t ion 1 21 I 0 0 L I

,I i

I TOTAL I 21 I I 0 0 I

I F a v o u r i t i s m 1 Through ( a ) and

The t a b l e i n d i c a t e s t h a t a t o t a l of 21 o r

0 I 0 i

1

100~6 of t h e r e s p o n d e n t s s a i d t h ~ t t h e company

r e c r u i t s h e r s t a f f through t e s t / e x a m i n a t i o n ,

I ( c ) only I 2 I

I n t e r v i e w and a combinat ion of b o t h methods. The

loo i

i m p l i c a t i o n of t h e r e s p o n s e s i s $hnt i t goes f u r -

t h e r t o show and conf i rm t h e methods of r e c r u i t m e n t

e a r l i e r i n d i c a t e d by t h e employees. I f management

i s t o r e a l i z e e n t e r p r i s e o b j e c t i v e ( s ) emplcyees

have t o b e engaged th rough t h e s a t i s f a c t o r y methods.

Ques t ion 8:

How many of t h e s e welfare s e r v i c e s does t h e company

provide f o r t h e employees? Tick (./ ' ) . The responses

t o t h i s q u e s t i o n a r e a s p re sen ted and i n t e r p r e t e d

below:

TABLE 14: RESPONSES ON THE WELFARE SERVICE PROVIDED BY THE COMPANY

RESPONSES

Free Accommodation, Rent Subsidy

Free Medical Care

Free rans sport/ Car Loan

Free Lunch

S p e c i a l A l loca t ion t o s t a f f

TOTAL

NUMBER PERCENTAGE -.

From t h e above it could be seen t h a t 21 o r 100%

of t h e responses show t h a t employees of t h e company

enjoy such we l f a re s e r v i c e s l i k e f r e e accommodation o r

r e n t subs idy , f r e e medical c a r e , f r e e t r a n s p o r t o r c a r

l o a n , f r e e lunch ( a t very subs id i zed r a t e ) and s p e c i a l

a l r o c a t i o n t o s t a f f . This shows t h a t t h e management has

a number of we l f a re s e r v i c e s f o r t h e employees a s

e a r l i e r a t t e s t e d t o by them, According t o t h e companys s

handbook, i n a d d i t i o n t o t h e above wel fa re s e r v i c e s t h e

campany has:

fla Group Insurance p o l i c y which indemnif ies all staff of t h e 8 company i n event of any hazardsf! ,

T h i s i s b e m u s e workers i n an industrial concern like

Benue Cement Company would be prone t o acc iden t s , illness

o r d i s e a s e a s s o c i a t e d w i t h t h e cement indus t ry .

Furthermore, t h e compeny established a staff schoo l

i n 1985 t o e a t e r f o r t h e e d u c a t i o n a l needs of the t t l i ldrm 9 and wards of s t a f f ,

According t o t h e company's handbook, confirmed staff

of t h e company whose appointments end except those

summarily d i smissed , a r e e n t i t l e d t o a g r a t u i t y and

pension (bo th of which a r e s u b j e c t t o approved c o n d i t i o n s

agreed between staff and management1*).

Ques t ion 9:

Has t h e company any t r a i n i n g programme f o r t h e

enfployees? The responses t o t h e ques t ion a r e as

presen ted and i n t e r p r e t e d below:

TABLE 15: RESPONSES ON WHETHER THE COMPANY HAS ANY TRAINING PROGRAMME FOR THE EMYLDYEES

From t h e t a b l e , it could be seen t h a t 21 or 100%

1

of the respondents indica ted t h a t the company has a

, RESPONSES

Yes

No

TOTAL

t r a i n i n g programme f o r t he employees,

Training i s a major objec t ive of t he company f o r

NUMBER

2 1

0

2 1

as pointed out:

"employees s h a l l be given a high standard of t r a i n ing so t h a t t h e i r f u l l p o t e n t i a l s a t work can be r ea l i z ed , Training courses a r e organized f o r s e l ec t ed employees a t c e r t a i n s t ages i n t h e i r res- pec t ive ca r ee r s w i t h the company. ... sponsors se lec ted and deserving employees on long term courses i n i n s t i t u t i o n s of higher l ea rn ing l l i n t h e i r r e l evan t discipline^^^.

t--

PERCENTAGE

100

0

1 00

The company es tab l i shed a Training Centre i n 1981' i n

,

recogni t ion of the need f o r s t a f f and technological

development i n the industry. Most s t a f f and workers

of t h e company have benef i t t ed d i r e c t l y from various

t r z i n i n g programmes organized by the cent re . 13

Ques t ion 10:

Has t h e company experienced any s t r i k e a c t i o n by

t h e employees? The responses t o t h i s ques t ion are

dep ic t ed i n t h e t a b l e below.

TABLE 16:

I - RESPONSES ! NUMBER ! PERCENTAGE

It could be seen from t h e t a b l e t h a t 21 o r 100%

Yes

No

TOTAL

of t h e respondents have i n d i c a t e d t h a t t h e company has

n o t experienced any strike a c t i o n by the employees. To

0

2 1

21

f u r t h e r i n q u i r e why t h e r e ha s been i n d u s t r i a l peace i n

t h e company ques t ion 12 was asked.

0

1 00

100

If your answer t o ques t ion 10 i s No, would you

L

a t t r i b u t e t h i s t o good working r e l a t i o n s h i p between

rnanagcment and workers?

-.

RESPONSES 1 NUMBER 1 PERCENTAGE I I

Yes 2 1 I 100

0 I I 1 TOTAL I 2 1 I 'lo0 I

From t h e t a b l e it could be observed t h a t a

t o t a l of 21 o r 10q4 o f t h e r e s n o n d e n t s were of t h e

view t h a t t h e i n d u s t r i a l peace i n t h e company is a s

a r e s u l t o f t h e good working r e l a t i o n s h i p e x i s t i n g

between t h e management and employees.

Whenever t h e management of an e n t e r p r i s e is

d e m o c r a t i c , and t a k e s c o n s i d e r ~ : t i o n of a l l i n t h e

o r g a n i z a t i o n , t h e r e w i l l be co-opernt ion and e f f i -

c i e n c y i n c r e a s e s , ~ n c i d c n c e of i n s u b o r d i n a t i o n and

i n d i s c i p l i n e w i l l d e c r e a s e corlrespondingly. F o r

management t o succeed e v e r y one i n an e n t e r p r i s e has

b o t h a p a r t and a say i n t h e t o t a l management of t h e

e n t e r p r i s e . T h i s w i l l h e l p t h e management t o r e a l i z e

t h e e s s e n t i a l i n g r e d i e n t i n t h e e f f i c i e n c y , e f f e c t i v e -

n e s s and smooth r u n n i n g of t h e e n t e r p r i s e t h e r e b y

accompl i sh ing t h e s e t g o a l s .

The ~ m p l i c a t i o n o f t h e above p r e s e n t a t i o n ,

a n a l y s i s and i n t e r p r e t a t i o n i s t h a t t h e r e s p o n s e s t o

t h e i t e m s on t h e q u e s t i o n n a i r e l e n d s u p p o r t t o o u r

f i r s t hypo thes i s . ~f t h e hyman r e s o u r c e s e lement

i n an e n t e r p r i s e is managed through s a t i s f a c t o r y

methods of s e l e c t i o n , p r o v i s i o n of b a s i c w e l f a r e

s e r v i c e s , t r a i n i n g , s p o n s o r s h i p f o r t r a i n i n g , r e g u l a r

payment of s a l a r i e s

and o the r emoluments, promotion a s and when due

at tending t o employees complaints/grievances amongst

others , the management w i l l r e a l i z e en t e rp r i s e

ob jec t ive ( s ) . The responses of the company managers

t o the items on the quest ionnaire a s they r e l a t e

t o t h i s hypothesis f u r t h e r give s u b s t a n t i a l support

t o our f i r s t hypothesis.

t

Our second hypothesis i s t h a t ItProper harmoniza-

t i o n and u t i l i z a t i o n of the mater ia l resources i n an

- en t e rp r i s e con t r ibu tes t o i ts performance N.

Quest ions 13, 14, 15 and 18 on the ques t ionnai re

administered among o the r company staff would be used

t o t e s t t h i s hypothesis.

Quest ion 13:

Do you always have the required mate r i a l s t o

work with i n your department/section? The responses

t o t h i s quest ion are presented and i n t e rp r e t ed as

follows:

From t h e t a b l e it could be seen t h a t a t o t a l of

202 o r 79% of the res7ondents always have t h e required

mate r i a l s t o work w i t : ] i n t h e i r ddpartments o r sec t ions .

A t o t a l of 53 o r 21% of the respondents do n o t always

have t h e requi red mate r i a l s t o work w i t h i n t h e i r

department o r sec t ion . The responses here by implica-

t i o n support our hypothesis.

I n order f o r an e n t e r p r i s e t o accomplish s e t

o b j e c t i v e ( s ) it is t h e r e s p o n s i b i l i t y of management

b; ts harmonize t h e a v a i l a b l e m a t e r i a l

resources f o r production and ensure t h a t such a r e

u t i l i z e d accordingly by t h e employees.

Quest ion 14: Do you experience regu la r breakdown of equipment

i n your department o r sec t ion? The responses t o t h i s

ques t ion a r e presented and i n t e r p r e t e d a s follows:

- - TABLE 19: "

-

NUMBER

From the t ab l e a t o t a l of 57 or 22% of the res-

pondents experience regular breakdown of equipment

i n t h e i r departments o r sect ions, while a t o t a l of

,198 o r 78% of them do not experience regular breakdown

o f t h e equipment i n t h e i r departments o r sect ions.

The majority of the responses here supports our con-

tent ion t h a t i f the required materials are

managed, the object ive(s) of the enterpr ise w i l l be

accomplished. To f u r t h e r invest igate why majority

opinion of 198 o r 7 8 W f t h e respondents do not

experience regular breakdown of equipment, Question

15 was asked.

Are there qual i f ied technicians i n your Dept./

Section t o maintain the available machinery? The

responses t o t h i s question are presented and in t e r -

preted below:

TABLE 20:

b

From the t a b l e we observe t h a t there a re qua l i f i ed

technicians i n the corn?any t o maintain the avai lable

machinery. T h i s has bwn proved by the majority

opinion of 200 o r 78% > f the responses. The maintenance

of avai lable equipmen.; which an organization uses

i n i t s operat ions has important influence on i t s

fortunes. This implie; t h a t the management has t o

manage t t ~ mater ia l resources t o enhance

product iv i ty i n order t o accomplish the en te rpr i se

Question 18:

Does t h e company a t any time experience lack of

needed raw mater ia ls f 2 r production? The responses

t o the above question are presented below:

TABLE 21:

.SESPONSES 1 NUMBER I PERCENTAGE *.,

I

From t h i s da ta ana lys i s we can observe t h a t the

company does not experience lack of the needed raw

. mater ia ls f o r production. T h i s has been proved by the

m a j o r i t y op in ion of 205 o r 80.4% of t h e responses

whi le on ly 50 o r 19&6$ were of t h e opinion t h n t i t

lacked t h e necessary r g w m a t e r i a l s . The management

of any o rgan iza t i on can no t be s u c c e s s f u l i f t h e

o rgan iza t i on l a c k s t h e neces sa ry m a t e r i a l s f o r produc-

t i o n .

To f u r t h e r t e s t t h e v a l i d i t y of ou r second hypo-

t h e s i s q u e s t i o n s 13, 1 4 2nd 1 5 were asked on t h e

q u e s t i o n n a i r e admin is te red aimong company managers.

Ques t i on 13:

How does the company o b t a i n t h e r e q u i r e d raw

m a t e r i a l s ? The responses t o t h i s ques t ion a r e pre-

sen ted a s fo l lows:

[ Impor ta t ion I 21 " r 100

1 TOTAL 21 1 00 I . 5 - . . . i i

The above a n a l y s i s shows t h a t t h e r equ i r ed

raw m a t e r i a l s a r e ob ta ined through impor ta t ion and

l o c a l l y .

The major raw m a t e r i a l used i n t h e manufacture

of cement i s limestone. This i s a v a i l a b l e i n commer-

c i a 1 q u a n t i t y i n t h e l an3 on which t he f a c t o r y i s lot,,-

ted.

About 95 p e r c e n t of t h e companyrs raw m a t e r i a l n c ~ : d s

1 4 ( l i m e s t o n e and c l a y ) is g o t l o c a l l y .

The o t h e r raw m a t e r i a l used by t h e company j-ii

t h e manufac ture of cement i s Gypsum. It cons ti-Lutlc:s

a b o u t f o u r t o f i v i . p e r c e n t o f t h e t o t a l raw n:qtL --,I 1.s

need i n t h e mnnuf ac t u r c of Ord ina ry P o r t l a n d C-jrnc;~ L,

T h i s is t h e o n l y impor ted raw m a t e r i a l used i n i ;Lsc!

1 5 pkoduc t ion p r o c e s s T h i s f u r t h e r s u p p o r t s t h e

m a j o r i t y o p i n i o n t h a t t h e company d o e s n o t l a c k t h t

needed raw m a t e r i a l f o r p r o d u c t i o n s i n c e 99: of 3-i; is

o b t a i n e d l o c a l l y . T h e management of an e n t e r p r i s e

w i l l t h e r e f o r e r e a l i z e t h e s e t g o a l ( s ) o f t h e or[;; n i -

z a t i o n if t h e m a t e r i a l r e s o u r c e s a v a i l a b l e a r e ::dc-

q u a t e l y harmonized and u t i l i z e d .

Q u e s t i o n 14:

Does t h e company e x p e r i e n c e b r e a k down of ci.:uf.p-

ment? The r e s p o n s e s t o t h i s q u e s t i o n a r e p r e s z n k d

a s f o l l o w s :

TADLE 23:

L TOTLL 1- 21 1 100 1 -.-'-- .. - - . --- -'- ---- . . . A .

~ S ~ ~ S E S ----A A-r . NUi"lBER PERCEKT --.---- '.GT . . . { 6 29

k--- - -.-- - 1 5 1 71 .. a I 4

The impl ica t ion of t h e above ana lys i s is t h a t

t he company does not experience frequent breakdown

of equipment. The majori ty opinion of 15 o r 71%

supports t h i s view. However, it i s necessary t o f i n d

ou t why t h i s s i t u a t i o n i s l i k e t h a t . A s a r e s u l t

quest ion 15 was asked.

Ques t ion 15:

Has t h e company q u a l i f i e d technic ians t o main-

t a i n t he equipment?

The rcsponses a r e presented a s follows:

I t could be observed t h a t a l l the respondents,

21 or 100% of them were of t he view t h a t the re a r e

q u a l i f i e d technic ians t o maintain t he equipment. The

impl ica t ion i s t h a t i f the machineries used i n the

p ~ o d u c t i o n process a r e r egu la r ly serv iced and main-

t a ined they a r e no t l i k e l y t o breakdown regular ly .

r

- RESPONSE Yes

No

TOTAL -

NUMBER

21

0

2 1

PERCENTAGE

100

0

100

This contributes to rnalagerial success in our

public en-terprises and the accomplishment of enter-

prise objcctive(2).

The objective of ;>roper harmonization of an

organization's material resourcesis to enhance pro-

ductivity. To this enfi question 19 on the questionnaire

administered among ottwr company staff and cuestion

16 on t h ~ questionnaire administered among company

nanagers were asked. h t h questions are analyzed

and interpreted as foLlows:

Question 19:

Do you accept the view that the company is pro-

ducing at full capacity?

'TABLE 25:

RESPONSES I NUMB~R I PERCENTAGE 1 1

I I

I TOTAL 1 255 I 100 t It could be observed that a total of '129 or 51%

of the respondents were of the view that the company 6

is producing at full czpacity. A total of 126 or 49%

were of the view that the company is not producing at

f u l l capaci ty.

Quest ion 16:

Is the company py71ducing a t f u l l capaci ty i n

your opinion? The re.:;ponses t o t h i s quest ion a r e as

follows:

TABLE 26:

The ana lys i s shoks t h a t a t o t a l of 12 o r 5777

I L

were of t h e view t h a t the company i s producing a t

RESPONSES -

Yes

No -

f u l l capaci ty while 9 o r 43% were of the view t h a t

the company i s not.

NUMBER

I 2

9

A s 2 t now it cou l l be sa id t h a t t he company i s

PERCENTAGE

57

43

TOTAL --a- 1 2 1

producing a t f u l l capa7ity because t he company

I00

opera tes two productio:? l int?s each with an annual

capaci ty of 45,000 met--ic tonnes of cement. 16

However, s ince t he r e i s plan f o r expansion:

?'such t h a t the p l an t could be expanded t o six l i n e s producing t h r ee mi l l ion tonnes of cement annuallyIf1 . 7

it could be s a i d t h a t !,he company i s no t yet produ.cing

a t f u l l capacity. I t w i l l be producing a t f u l l capaci ty

when the manageinent i s 2ble t o e f f e c t i v e l y implement

the expansion plan.

T h e answers t o t h ' ~ re levant ques t ions a s analyzed

and i n t e rp r e t ed above, show t h a t a majori ty of

opinions support our hypothesis. Our publ ic enter -

p r i s e s by impl ica t ion would accomplish t h e i r s e t goals

i f t he management coul-l properly harmonize and u t i l i z e

the ava i l ab le mater ial resources.

Our t h i r d hypothesis i s t h a t "Financial *

nanagement i n an m t e r p r i s e l eads t o i t s

( e n t e r p r i s e ) goal attainment". To t e s t t he v a l i d i t y

o r otherwise of t he above proposi t ion quest ions 20

and 21 were asked on t hc ques t ionnai re administered

among o the r company s t a f f .

Quest ion 20:

Have -you heard of any case of embezzlement o r

fraud i n the company? The responses t o t h i s ques t ion

a r e a s follows:

7 -- --

! TOTAL 1 2 2 5 [ 100 ---- ..".. . . .- * - w e - t

could be observed from t h e t a b l e t h a t a

m a j o r i t y opinion of 2 2 0 o r f!& have n o t heard of

any case of embezzlement o r f r aud i n t h e company

whi le 35 o r of t h e respondents heard of it.

The imp l i ca t ion i s t h a t ma jo r i t y views supported ou r

hypothes i s t h a t f i n a n c i a l manazmcnt i n an e n t e r -

p r i s e l e a d s t o i t s goa l a t ta inment .

F i n a n c i a l management p l a y s 3 s t r o n g r o l e i n t h e

l i f e of an o r g a n i ~ a t i o n r ~ i n a n c e i s needed t o pay

workers, buy equipment, buy spa re p a r t s , c o n s t r u c t

necessary i n f r a s t r u c t u r a l f a c i l i t i e s and o t h e r

s e r v i c e s , A l l t h e s e which a r e provided by f inance

c o n t r i b u t e t o t h e o v e r a l l performance of t h e en t e r -

p r i s e , F i n a n c i a l management thsr<-f o r e c o n t r i b u t e t o

t h e success of our pub l i c e n t e r p r i s e .

Question 21:

Would you accept the view t h a t t he company has

an e f f i c i e n t accounting system?

The responses t o t h i s question are analyzed

below.

TABLE 2 8 :

RESPONSES NUPIBEER

Yes

I I 1 TOTAL I 255 I 100 I I t could be observed from the analys is above

t h a t a majority of 195 or 76% were of the view t h a t

t he company has an e f f i c i e n t f i nanc i a l system, This

goes fu r the r t o support our hypothesis t h a t

f i nanc i a l management leads t o the goal attainment of

an enterpr ise .

Most public en te rpr i ses i n Nigeria a re character i -

sed by l i q u i d i t y problems which have resu l ted t o

lr_.ly=k of s u f f i c i e n t working cap i t a l . For example, i n

t he case of Agro-Millers e a r l i e r c i t e d , the General

Manager a t t r i bu t ed t he i n a b i l i t y t o pay worker's

s a l a r i e s to:

i fs deb t load of over 6.4 mi l l ion Naira, accruing from a four m i l l ion na i r , 3 loan, procured from t h e Co:l-cinental Merchant Bank (cMB) uo purchase paddy r i c e . . . Also, overd:-:if t s of ~865 ,000 from Lcbi Bank and WlZO,OOO from United Bank f o r Africa were pro- cured by t h ? Company w i t h the a t tendant i . l t e r e s t burdenst1. 18

A s a r e s u l t of tiic above s i t u a t i o n the company

which has a productiou capaci ty of metric

tonnes of r i c e per an131m, i s now engaged i n occasional

small sca le con t rac t mil l ing due t o lack of funds

t o buy i t s own s tock from the market. The impli-

c a t i on of t h i s i s t h a t t he machines remain i d l e

when t he r e i s no con t rac t mil l ing.

The above examp12 shows t h a t i f an en t e rp r i s e

h a s no proper f i nanc i a l management, it w i l l not

accomplish the objec t ives f o r which it was es tabl ished.

, Financial management a s demonstrated

by our empir ical da ta however leads t o t he goal

zttainment of t h e en te rp r i se .

To further test the validity of this hypothesis,

questions 19 and 20 were asked on the questionnaire

administered among Company Managers.

'hestion 19

Was the company recorded any financial loss since

its establishment?

TAELE 29

LRESPONSES I NUMBER ( PEKCENTAGE I H

I yes I

The analysis shows that a total of 17 or 81%

the respondents were of the view that the company

has not recorded any loss since its establishment.

If financial resources are properly managed there

will be no room for fraud or embezzlement either on

the part of the staff or the customers. To find out

why this is so question 20 was asked.

If your answer to question I 9 is NO, what reason(s)

would you give for this? One of the reasons given by

ttie respondents is that the company has an efficient

accounting system as a result of the qualified personnel.

719

The f a v o u r a b l e m a r k e t i n g e n v i r o n m m t is a l s o a con-

t r i b u t i n g f a c t o r . The company h a s a u d i t t r a i n n e e s

who m o n i t o r c o n s t a n t l y t h e f i n a n c i a l t r a n s a c t i o n s

of t h e o r g a n i z a t i o n . I n a d d i t i o n , thc, yood manage-

ment i n t e r m s of employee w e l f a r e and e f f i c i e n t

s e c u r i t y a r rangements a l l c o n t r i b u t e t o t h e f a c t

t h a t t h e company h a s n o t r e c o r d e d any f i n a n c i a l l o s s

a c c o r d i n g t o o u r r e s p o n d e n t s . From t h e ;2nn lys i s o f

t h e r e s p o n s e s t o t h e q u e s t i o n s r e l a k i n ~ : t o o u r t h i r d

h y p o t h e s i s , t h e r e s p o n s e p a t t e r n s u p p o r t s o u r t h i r d

h y p o t h e s i s which s t a t e s t h a t " F i n a n c i a l M:in?gement

i n an e n t e r p r i s e l e a d s t o i t s ( e n t e r p r i s e ) g o a l

a t t a i n m e n t v s ,

The p l a u s i b l e e x p l a n a t i o n f o r t h i s p a t t e r n of

r e s p o n s e s is t h a t i f t h e company h a s q u r ~ l i f i c d

p e r s o n n e l i n t h e accbUnts s e c t i o n t o m n t h e f i n a n c e s

of t h e o r g a n i z a t i o n , c a s e s of f r a u d or cnbezalerncnt

w i l l n o t a r i s e . A s a r e s u l t , t h e company's f i n a n c e s

. cou ld be s a i d t o be p r o p e r l y managed,

Our f o u r t h h y p o t h e s i s i s t h a t ; T h e per formance

of an e n t e r p r i s e depends upon t h e e x t e n t t o which i t s

management i s a b l e t o i d e n t i f y and t a c k l ( , c e r t a i n

c o n s t r a i n t s from i t s e x t e r n a l envi ronment i i .

To f i n d out the v a l i d i t y of t h i s hypothesis

quest ions 2 1 , 22 and 23 were asked on the quest ionnaire

administered among company managers.

aues t ion 21.

Does the managwent experience any problem(s)

from the cornriunity i n c.hich the company i s located?

The responses t o t h i s quest ion indica ted t h a t

the company experiences some problems from the

community as depicted i n the t a b l e below.

I n order t o f i nd out what the problem(s) a re

quest ion 22 was asked:

If your answer LO quest ion 21 i s Yes, what a re

these problc?ms?

One problem l i s t e d by our respondents i s environ-

mental po l l u t i on caused by the limestone dus t p a r t i c l e s

Prom the fac tory . This c r ea t e s a l o t of harzards t o

the people and t h e i r farm crops.

The other problem is payment of compensation

f o r t he land taken over by t he fac to ry and mining

l eases .

,:hestion 23 was asked t o know what the manage-

ment has done o r i s doing t o t ack le these problems.

What does t he management do t o avoid these

problems?

The responses t o t h i s ques t ian indica ted t h a t

t he company extends severa l s o c i a l se rv ices t o the

people i n the l o c a l i t y . For instance:

'!The company has expanded t he scope of i t s s t a f f c l i n i c t o cover medical needs of members of the community ... s t a f f Primary School i s a l so open t o ch i ld ren within the communityb'.20

The company a l so make donations i n cash and mate r i a l s

t o a s s i s t the various community p ro jec t s . Theee pro-

j e c t s include the cons t ruc t ion of roads, cu lve r t s ,

dams, community bui ldings and school classrooms. 2 1

I n add i t ion t o t h e above ges tu res , the company

has sunk a bore-hole w i t h a i'36,000 l i t r e elevated

tank f o r t he immediate community a t Tsekucha". 22

T h i s w i l l g r e a t l y ease off the problem of provision

of por tab le water f a r the people i n the l o c a l i t y .

According t o the Managing Direc tor and Chief

Executive of the company, the i s sue of compensation

was aggressively tackled i n t he pas t . The management

had done everything poss ib le t o pay compensation

t o those whose land were taken over. 'The management

i s equal ly doing everything poss ib le t o make the

people f e e l the presence o f the company i n t he erea. 2 3

The above p a t t e r n of responses support our

four th hypothesis which s t a t e s t h a t " the performance

of an en t e rp r i s e depends upon t h e extent t o which

i t s management is ab le t o i d e n t i f y and t a ck l e cer t : i in

cons t r a in t s from i t s ex te rna l environn~ent '~.

The p l aus ib l e explanat ion f o r t he ac t ions taken

b y the management tg t a ck l e these environmental

problems i s t h a t 99/o of the raw mate r i a l ( l imestone)

needed f o r production of cement i s ava i l ab le i n the

community a s we e a r l i e r pointed out. The Nanagement

a l so requ i res land f o r expansion and development.

To obta in the needed raw ina ter ia l and land which

the management needs, it h3s t o extend these ges tures

t o t h e people i n the community.

I n conc lud ing t h i s c h a p t ~ r , we may n o t e t h a t

t h e r e is a r e l a t i o n s h i p between o u r hypo theses

and t h e v iews of o u r r e sponden t s . T h i s means t h a t

f o r t h e management of c u r p u b l i c e n t e r p r i s e s t o be

s u c c e s s f u l t h e management must s t r o n q l y a d d r e s s t h e

i s s u e s of managing t h e human, m a t e r i a l and f i n a n c i h l

r e s o u r c e s a v a i l a b l e p r o p e r l y . It a l s o means t h a t

c e r t a i n problems a r i s i n g frc[,i t h e e x t e r n a l env i ron-

ment should be p r o p e r l y a d d r e s ~ ( ~ d and t a c k l e d & I f

t h e s e a r e p r o p e r l y done t h e management would be

a b l e t o accompl ish t h e o b j e c t i v e ( s ) f o r which t h e

e n t e r p r i s e was e s t a b l i s h e d .

REFERENCES

J. R, Kenriche, High Ta len t Personnel: Planaging a C r i t i c a l Resource (American Management Assoc ia t ion Inc . , 1966.

A. G. Braddick "The S e l e c t i o n inter vie^'^ i n Management i n Niger ia XII I /2 February, 1977, P.24-26.

Bernard M. La11 and Greeta R. L a l l ; Dynsmic Leadership P a c i f i c Publ i sh ing Assoc ia t ion , Mbuntain View, C a l i f o r n i a , 1979, P.127.

Problems of stration; H. N. Nwosu - n P u b l i s h i n g Co, Ltd.,

The Voice, Vol ,g , No. 2482, Saturday, January 6 t h , I.Iupi.pvoPm~. Benue P r i n t i n g and Publ i sh ing Corporat ion, Makurdi, P.6.

Harold Koontz/C. ~ ' ~ o n n e l l / ~ . Weihrich; Management Eighth Edi t ion . I n t e r n a t i o n a l Student ~ d i t i o n . MeGraw-Hill I n t e r n a t i o n a l Book Company, Takyo, 1984, P,491.

Max and Enpels, Manifesto of t h e Communist P a r t y ; grogr 'ess ive Fub l i she r s Moscow, 1977, P.43.

Denue Cement Company Limited A t a Glance, --- --- P r e ~ a r e d and ~ r o d u c e d bv t h e Pub l i c R e l a t i o n s Oept., BCC ~ t h . , ~ b o k 0 ~ ~ 1 9 8 9 , P-9.

Ibid . -

Ibid . .ls13.

Ib id . P.4 - I b i d . -.- I b i d . P.11 - Ibid. u__.

The Voice 0p.Ci.g. p.6 - I b i d - BCC Limi ted a t a Glance Op.Cit. P.11

Ibid U__

I b i d , P.11-12 - BENCEM NEWS, A p r i l - June , 1988, Produced by t h e

P u b l i c R e l a t i o n s Department, BCC Ltd. , Gboko, P.134.

CHAPTER FIVE

SUMMARY OF FINDINGS -a-

RECOMMENDATIONS AND CONCLUSION -.'----

This l a s t c h a p t e r of t h e s tudy w i l l summarise

ou r f i n d i n g s , make recommendations and reach some

conc lus ions on t h e work.

SUMMARY OF FINDINGS --a

We have been a b l e t o f i n d o u t i n t h e course of

t h i s work, e s p e c i a l l y from t h e emp i r i ca l d a t a , t h a t

t h e fo l l owing f a c t o r s c o n t r i b u t e d t o t h e management

and performance of t h e e n t e r p r i s e under s tudy,

( i ) The management of t h e human r ecou rces a v a i l a b l e

i n t h e o rgan iza t i on : This i nc ludes t h e c a l i b r e of

personne l i n terms of q u a l i f i c a t i o n , me tho^ of r e c r u i t -

ment ~ n d t h e way management has been ab l e t o a d d r e s s t h e

i s s u e of employees1 welfare , Human r e sou rce management

f u r t h e r e n t a i l s o p p o r t u n i t i e s a v a i l a b l e t o t h e employees

f o r t r a i n i n g and sponsorship and t h e mot iva t ion of I

employees through r e g u l a r pay and advancement \in terms '>

of promotion. The a b i l i t y of management t o pronlptly

a thend t o employees1 complaints and

gr i evances con t r ibu t ed t o t h e mann g m e n t

and a t t a inmen t of t h e o r g a n i z a t i o n ' s o b J e c t i v e ( s ) .

( i i ) That t h e management has been a b l e t o harmonize

and u t i l i z e t h e a v a i l a b l e m a t e r i a l r e sou rces needed

f o r product ion i n o rde r t o enhance perforrnmce. The

machinery used i n t h e product ion process P ~ L ~ m i n t a i n e d

and t h e r e i s cons t an t p rov i s ion of t h e needed ravi

m a t e r i a l s f o r product ion. These enhance performance

and a t t a inmen t of e n t e r p r i s e ob jec t ive .

( i i i ) The management has been a b l e t o p roper ly u t i l i z e

h e r f i n a n c i a l resources . Finance p l a y s a c r u c i a l r o l e

i n t h e management and performance of any e n t e r p r i s e .

It enab le s t h e management t o accomplish such o b j e c t i v e s

l i k e paying employees, purchasing equipment ~ n d spare

p a r t s and i n t h e prov is ion of o t h e r necessary f x i l i t i e s .

( i v ) The management has been a b l e t o i d e n t i f y and t a c k l e

c e r t a i n d i f f i c u l t i e s a r i s i n g from i t s e x t e r n a l environ-

ment e s p e c i a l l y t h e immediate community. The company

does n o t e x i s t i n i s o l a t i o n , it e x i s t s a s s system i n

a l a r g e r system o r contex t . The way t h e management has

be& a b l e t o r e l a t e t o t h e environment by i d e n t i f y i n g

, and t a c k l i n g t h e c o n s t r a i n t s t h a t would m i l i t a t e a g a i n s t

i t s performance con t r ibu t ed t o i t s performance.

( v ) That t h e company i s p r o p e r l y managed and pro-

d u c t i v e i s n o t dependent on any e x t e r n a l i n f l u e n c e

i n view of ( i ) t o ( i v ) above.

The r o l e of management i n u t i l i z i n g l a b o u r ,

f i n a n c e , t echno logy and t h e environment t o a c h i e v e

o r g a n i z a t i o n a l o b j e c t i v e ( s ) h a s bee11 s a t i s f a c t o r y .

There i s t h e r e f o r e a s t r o n g r e l a t i o n s h i p between t h e

management of human, m a t e r i a l and f i n a n c i a l r e s o u r c e s ,

and t h e envi ronment , and t h e p e r f orml-.nce v i s -a -v i s

accomplishment of t h e e n t e r p r i s e o b j e c t i v e ( s ) . RECOMI'ENDATIONS --- -

Based on t h c above f i n d i n g s , the f o l l o w i n g

recommendations a r e o f f e r e d :

( i ) The company shou ld i n t e n s i f y more

e f f o r t s i n t h e a r e a of employees'

t r a i n i n g ( s e e t a b l e s 8 and 9) . T h i s

i s n e c e s s a r y because cemcni p r o d u c t i o n

i s a c a p i t a l i s t v e n t u r e t h ~ j t r e q u i r e s

h igh and s o p h i s t i c a t e d t echno logy and

pe r sonne l .

( i i ) The company should ensure t h a t more

e f f o r t s a r e made i n t h e a r e a s of

s p e c i a l sale o r a l l o c a t i o n , and

housing l o a n t o t h e employees

( s e e t a b l e 7 ) . I t i s n o t j u s t

enough t o provide employees wi th

a l l t h a t enable them t o do t h e i r

b e s t i n th(3 working environment.

Lrnployees r e q u i r e persona l s t r u c -

t u r e s t o l i v e i n wi th t h e i r f a m i l i e s

on r e t i r emen t . Housing Loan t o

employees t o enable them accomplish

t h a t w i l l f u r t h e r make them t o be

more committed t o t h e i r work.

( i i i ) The r a t e a t which the management

a t t e n d s t o employees1 complaints/

g r ievances i s n o t s a t i s f a c t o r y ,

That 78 o r 31% of t h e employees

f e e l t h a t t h e i r complaints /gr ievances

were n o t a t tended t o by t h e manage-

ment show t h a t something is wrong,

and t h e environment cannot be s a i d

t o be hea l thy ( s e e Table 12) .

130

I t i s recommended t h a t t h e Management

should a t t e n d t o a l l ~ o m ~ l - a i n t s / ~ r i e v a n c e s

brought t o i t by t h e employees. T h i s w i l l

enhance commitment t o duty on t h e p a r t of t h e

aggr ieved and ensure t h e accomplishment of

e n t e r p r i s e ob jec t ives .

( i v ) The company s i t e i s about 21 k i l o m e t r e s from

Gboko town where most of t h e w o r k e ~ s r e s i d e ,

I n view of t h i s , t h e p rov i s ion of r e c r e a t i o n

and r e l a x a t i o n f a c i l i t i e s wi th in t h e company

s i t e f o r t h e employees should be given maximum

a t t e n t i o n ,

( v ) The company should mainta in t h e p r a c t i c e of

prompt payment of employees, pe r sona l and o t h e r

emoluments. This i s necessary because t h e

money t h a t accrues t o employees i s in s t rumen ta l

t o s a t i s f a c t i o n of some b a s i c needs, and t h i s

w i l l mot ivate them t o hr more ded ica t ed and

committed t o duty ,

131

That t h e management i s s u c c e s s f u l i s

dependent on c e r t a i n f a c t o r s l i k e t he

s t y l e of management . The management

s t y l e i d e n t i f i e d w i t h t h e company is

t h e committee system. By t h i s s t y l e

t h e management c o n s t i t u t e d a number

of committees whose membership a r e made

up of t h e employees. For example t h e r e

a r e Top Management, S t a f f Yelf a r e , ' ra in ing

and Development Committees. The Top

Management Committee i s made up of t h e

Managing D i r e c t o r and Chief Execut ive of

t h e Coqany , and t h e v a r i o u s D i v i s i o n a l

and depar tmenta l hends. Th i s committee

meets monthly t o t a k e s t o c k of problems,

review performance, and t ake d e c i s i o n on

t h e recommendations from t h e o t h e r

committees. The o b j e c t i v e of t h e

committee system is t o invo lve t h e

employees i n t h e management of t h e Company

so t h a t they do no t sabotage t h e e f f o r t s of t h e

management and d i s r u p t produc-tion. From t h e

v a r i o u s committees, t h e management i s a b l e to

f e e l t he minds of t h e ernnloyees and would the re -

f o r e a s a p p r o p r i a t e t o a v e r t p o s s i b l e d i s rup-

t i o n . This s t y l e of management is t h e r e f o r e

recommended t o o t h e r pub l i c e n t e r p r i s e s i n o rde r

t o ensure performance and accomplishment of s t a t e d

o b j e c t i v e ( s )

( v i i ) Those p u b l i c e n t e r p r i s e s t h a t a r e no t

p r o p e r l y managed and a r c consequently n o t perform-

i n g should in t roduce and f u r t h e r implement t h e

f a c t o r s i d e n t i f i e d t o have enhance t h e management

and performance of t h e e n t e r p r i s e under study.

CONCLUSION - We have seen from t h e background t o t h e s tudy ,

and the l i t e r a t u r e review on m n a g i n g pub l i c en te r -

p r i s e s t h a t most of t h e e n t e r p r i s e s were n o t p rope r ly

managed and were t h e r e f o r e n o t performing.

133

From t h e e m p i r i c a l d a t a g a t h e r e d , we have

s e e n t h a t t h e e n t e r p r i s e under s t u d y was managed,

and was consequen t ly p e r f orrning,

The p l a u s i b l e e x p l a n a t i o n f o r t h e non-perfor-

mance of t h e p u b l i c e n t e r p r i s e s e a r l i e r c i t e d i n

view of o u r f i n d i n g s a r e :

( i )

( i i )

The

Those t h a t were n o t p r o p e r l y managed

and have f a i l e d t o perform may have

been s o because t h e i r o b j e c t i v e ( s ) were

n o t c l e a r l y d e f i n e d ; and

The f a c t o r s t h a t h:ive enhanced t h e

p r o p e r management and performance of

t h e e n t e r p r i s e s t u d i e d were n o t

p r e s e n t i n t h o s e t h a t have f a i l e d .

f a c t o r s t h a t c o n t r i b u t e d t o t h e management

of p u b l i c e n t e r p r i s e s v a r i e s aud a r e numerous, It,

t h e r e f o r e , a p p e a r e s t h a t no s i n g l e s t u d y can i n c o r -

p o r a t e a l l t h e f a c t o r s t h a t enhance management and

performance of o u r p u b l i c e n t e r p r i s e s , Each s e p a r a t e

a t t e m p t is l i k e an a d d i t i o n a l d r o p of w a t e r t o t h e

boay o f ocean w a t e r b u t each d r o p is a s i m p o r t a n t as

t h e whole ocean water .

134

Benue Cement Compmy Limited, Gboko, l i k e t h e

r e s t of t h e Cement Companies i n t h e country i s

saddled w i t h t h e r e s p o n s i b i l i t y of thorough pre-

p a r a t ion f o r a meaningi'ul i n d u s t r i a l take-of f

p a r t i c u l a r l y i n t h e b u i l d i n g engineer ing i n d u s t r y

of which cement is t h e c ~ r n ~ r s t o n e . N i g e r i a ' s

s e l f s u f f i c i e n c y i n cement product ion i s n o t only

d e s i r a b l e bu t it e q u a l l y boos t s t h e manufacturing

indus t ry , This t a s k i s enormous, t h e r e f o r e , t h e

management should make t h e employees know t h a t each

of t h e i r c o n t r i b u t i o n s t o t h e a t t a inmen t of t h e

o rgan iza t ion t s o b j e c t i v e ( s ) i s important . Th i s ,

t h e management w i l l do by paying a t t e n t i o n t o t h e

f a c t o r s t h a t enhance ps r fomnnce and p r o d u c t i v i t y ,

l i k e the human, m a t e r i a l , f i n a n c i a l r e sou rces and

a t t e n d i n g t o t h e complaints from t h e e x t e r n a l

environment t h a t m i l i t a t e a g a i n s t t h e o r g a n i z a t i 0x11-

ob jec t ives . Once t h e a v a i l a b l e r e sou rces a r e

managed and t h e mission of t h e e n t e r p r i s e i s clear.1-y

q t a t e d , performance and achievement of o b j e c t i v e s

w i l l be a t t a i n e d ,

BIBLIOGRAPEY

1 . Allen, L. ; yanagement and O r g a n i z a t i o n s ~ New York, 1358. -

2. Adamolekun, L. Fubl ic Administrat ion: A Niger ian and Comparative Pe r s e c t i v e Lon mans S i g e r i a Limited, h~, 19E3.

3. Aust ine , R. -. A Br ie f - In t roduc t ion t o P o l i t i c a l Science, 2nd Ed i t ion . The ~ ) ryden%ess , U;S.A. , 1375.

4. Afonja, B. I n t roduc to ry S t a t i s t i c s : A Learners Motivated Approach; Evans Bro thers v i g e r l m u b l i s h e r s ) Ltd. , Ibadan-Nigeria, 1975.

5. Adebayo, A. ; P r i n c i p l e s and P r a c t i c e o f Pub l i c Admini"8tration ix?. N i ~ e r i a , ~o""h-ey and Sons, New York, 1981.

6. tiurnham, T. H. e t a l ; Engineer ing Ecopomics Organizat ion and Management, S i r I s a a c Pitman and Sons, London, 1960.

8. Ba i l ey , K. D. -- Methods of S o c i a l Research, The Free P r e s s , New York, 1982.

9. Clough, D . J . ; Concepts i n Management Science, Englewood C l i f f s , ~rentice- all,' 1963,

11. Caiden, I;. E.; The Dynamics of Publ ic Adminis t ra t ion --.-. - E o l t Rinehar t and Winston, Inc . Hamsdale I l l i o n s , 1971 .

12. Desrnund, K. - Management i n Government; . London, George Allen and ~ n w i n Ltd., 1972.

13. arucker , P.F. The Pract ice of Management, Heincmann Ltd.. Mavfair W . I . London,

14. George, R.T. - Pr inc ip les .- of Managemea Richard D. Urwin Inc . , 1968.

1 . Hanson, A.H. e t a1 Organization and Admids t ra t ion ... of ~ ' u b l i c Enterpr ises , New York, lm. --

16. Henriche , J. R e High Talent Personnel: fihnaging; a C;- i t ica l Resource, American Manage- - ment Association Inc . , 1966.

17. Kerl inger , F.N. Foundations of Eehavioural Research, 2nd Edi t ion , ~ p ~ ~ w o o d e Bal:intye Ltd. , Great E r i t a i n , 1979.

18. Kazmier , L. J . Pr inc iy les of Management, Tata ~ c r r a w H i l l Publishing Company Ltd.,

l9. Koontz, H e ,

20. Koontz, H . ,

21. Koontz, H.,

New Delhi, ,1979.

OIDcnnel, C . and Weihrich, H. p r inc ip les of Management; McGraw-Hill - In te rna t iona l Book Company, 1972.

OIDonnell. C . and Weihrich. 1-1. ~{ana~ernent , In te rna t iona l Students r z i t i o n , 1"lGraw-Hill Kogakushat Ltd.,

OqDonnel, C. and Weihrich, H. ~ a n a ~ e m e n t (Eighth ~ d i t i o n ) , In te rna t iona l Students Edit ion. J m a n ,

22. Lal l , B.M. and L n l l , G.R. %amic Leadership Pac i f i c Press Pub. ~ s s o c i a t i o n , 1979.

23. Murray, D.J. e t a1 Studies i n Nigerian Administration, Hutchinson and Co. Ltd.. F. Sauare. London, 1978.

.L

24. Max, K . and Engels, F. Manifesto of the Communist Part7; Progressive Publ ishers , M O S C ~ W , m9

25. Xwachukwu, C.C. Management Theory and- P r a c t l 2 , Afrir:ana FEP Publ ishers Ltd, . - .

79 Awkn Road, Onitsha, ~ i ~ e r i a . 1989.

26. Nigro, F. A . and Nigro L . G . Modern Public .-

Adm,Astration, 5 t h Ed i t ion , Harper S( - Row ,kb; New York, 1980.

Nachimias, C . aid :Jachimias, D. Research Methods i n -';be Socia l Sciences, Edward Arnxd ' m y l i s h e r s ) ~td., Bedford Square, Lontlon, 7982.

Nwosu, H.N. Problems of Nigerian Administration --. Ei-mension Publishing Coy,Ltd., - Enugu, Nigeria , 1985.

Ordway, T. -,- The Art of Administration, McGraw-Hill Inc . , New York, London, Toronto, 1957.

Rweytimanu, A.H. 2nd Hyden G. A Decade of Public Administration i n Africa, Eas t ~ f r z c a n - L i t e - a t u r e Bureau, N3irobi9 Kampals, Dar .Ss Salaam, 1975.

Renis, L. New Pa t t e rns of Management, McGraw-Hill T s Company, New York, 1961.

Stacey, M. Methods of Socia l Research, Pergamon Press , Oxford, 1969.

Sosna, S . A . Public En te rp r i ses i n Developin Countries : Legal S t a tu s , Progrefs Publ ishers , 1 v l o s c o ~ 3 .

J O U R N A L S

1. The Q u a r t e r l y Jou rna l of Adminis t ra t ion Vol.XIV,

No. 2 , Abipr in t and PAK Ltd. , Ibndan, January, 1980.

2 . l\?anagement i n Niger ia X111/2, February, 1977.

3. Benue S t a t e of L ige r i a : Designed by D i r e c t o r a t e of

Informat ion, Office of t h e

Governor, Makurdi, Onaivi P r i n t i n g

F res s , 1983.

4 . Benue Cement Company Limited A t a Glance:

Prepzwed and Produced by t h e Pub l i c

Re la t ions Dept., BCC Ltd. , Gboko,

7988.

5. The Future of Publ ic Corporat ions i n Nat iona l

Development: A Po l i cy Study.

Nat iona l I n s t i t u t e of F o l l c y &

S t r a t e g i c S t u d i e s , Kuru, J o s . September, 1980.

M A G A Z I N E S - --.-

1 , Business Times Vo1.12, No.25, Lagos Niger ia .

June 22, 1987.

D A I L I E S - 1 . New N l x r i a June l l t h , 1994. ----- - ?. -=- The N i - e r i a n -- Stsndard Apr i l 1 6 t h ~ 1984,

The Voice Vo1.9, No.2482, Saturday, January 6 t h , 1990. 3. --

hEWS BULLETINS

1 . BENCEM NE-dS, Aprl l - June , 1988

2. EZNCEM NEWS, Janli-lry - March, 1989.

UbiPUHLISI-IED = -.-"- ESSAY - ' [Lion Brand Cement Produc t ions ' ;

14 P a ~ z r p re sen t ed 3 t t h e Training School ,

BCC, May I g t h , 1982 by Onuoye Oluekezi

raining ) .

Agade, E.A (Reg N o , I. l':,,r'psi i ? / l c i l / r . ;,' : T h h r e , , , , , - a

ii jm:,tqraduake s t u d e n t of the Sn1. I r 1 I:,L "1' - 1 t I -

. ,, 111i I ti:; l r a tion and Local Gover'rmentr , ' 1 1 7 : $ i t t , , .' f

tr:;vl;ka. We/Me fls conducking a rer,t. I 1 i I , , / ~:.l.t~rsc ( $ 2 s t u d y a n d is required to c ill s4( : , , + t , ,

I rorn YOLII: Company . * I Y . - - l l l l . . " " l . " -*I*-.-"- 14,.+.-.- _ . _ " " " "*.

I N T R O D U C T I O N - I am Zmmanuel A. Aj;ada, a Post-Graduate S tudent

i n t h e Sub-Department c f Fub l i c Adminis t ra t ion and Local

Government (Reg. No. PG l?ll~k/€38/6664) U n i v e r s i t y of

N i g e r i a , Nsukka.

I am under tak ing a Research work on:Managing Pub l i c

E n t e r p r i s e s i n Niger ia : A Case Study of Benue Cement

Company Limited, Cboko . P l e a s e co-operate by prov id ing t h e in format ion

r e q u i r e d below' by t i c k i n g ( ) t h e box of your choice .

Don ' t i n d i c a t e your rime.

(ADTJIINISTERE~ .-. & \ l o CTHZR COPIPANY STAFF)

1 . Your Sex Category: ( a ) Kale 7 ( b ) Female

2. Your Age: ( a ) Under 30 yea r s C-7 ( b ) 30 - 35 yea r s ( c ) 3 6 3 n d a b o v e /-7

3 .. Date of Appointment: ................................ 4. P o s i t i o n on Appointment:. ........................... 5. Q u a l i f i c a t i o n on A~nointment :

( a ) Pririlary L_7 ( b ) ~IMSC/GCE O/L /-J

, ( c ) ND/HXD [Ip ( d ) F i r s t Degree /7 ( e ) Master Degree

6. How were you rec ru i t ed by t he Company? Through:-

b ) Test Examination /c/ c ) Interview 0 d ) b and c above l-T

7. How many of these g3 l fa re se rv ices do you enjoy from t h e Company? Plea-e t i c k (V )

a ) Free Accommodation/~ent Subsidy /-7 b ) Free Lunch f--7 c ) Free IcLedical CE r e - d ) Specia l Allocrltion

e ) Free Transport/Vehicle Loan /-7 f ) Ijousing Loan g ) Any o the r speci fy : , . , . . . . . . . . . . . . a * , . , , . , . . . . . . .

8. Have you undergone any t r a i n i n g since you were employed b y the Cospany?

9. I f your answer t o quest ion 8 is Yes, who sponsored you?

a ) The Company

b) Self Sponsored r/ 10. Does l a t e payment of s a l a ry occur i n the Company?

I I. Have you been g e t t i n g your normal promotion s ince you became an eroployee of the company?

12. Coes t he management always a t tend t o your complain-ts/ grievances?

a ) Yes a b ) No ,f-7

Do you always have the requi red m a t e r i a l s t o work with i n your Department/Section?

a ) Always /-7 b ) Not Always a Do ycu experience regular breakdown of equipment i n your D e p t . / ~ e c t i o n ?

a) Yes L-1 b) No

Are t h e r e q u a l i f i e d t echn ic ians i n your Dept . / s ec t ion t o maintain t h e a v a i l a b l e machinery?

Do you experience any waste i n t h e use of m a t e r i a l s f o r production?

I f your answer t o ques t ion 16 i s Yes, how do you preserve t h e ma te r i a l s?

Does t h e company a t any time experience l ack of ne:eded raw m a t e r i a l s f o r production?

a ) Yes

b ) No f--7

Do you accept t h e view t h a t t h e company i s producing a t f u l l capaci ty?

Have you. heard of any case of embezzlement i n the Company?

21. \ ~ / o u l d you acoept the view t h a t the company has :'n e f f i c i e n t accounting system?

I am Emmanuel A Agada, a Post-Gr2duate Student

i n t he Sub-Department of Public Administration and

L O C R ~ Governmwtt ( ~ e g . Xo. ~G/ i ' i~~ /BC/6664 j Universi ty

of Nigeria , Nsukka.

1 :lm undertaking a Research work on: *ilqanagin[;

Publ ic Entzrprises in i$ iger in : A Case Study of Benuo

Cement i'oi~>L:my L i m i t e d , Gboko" . Please co-opcrate by providing t he information

required below by t i ck ing ( V ) t h e box of your

choice. fion't ind ica te your name.

I . Your ;>ex c a t e g o r y :

a) Nnle 'D) Felnale

Lz7 L=r

2 . Your Age:

a ) Under 30 y e a r s

3 ) 30 - 140 1 f-7 c ) 41 and above a

3. Your m2r i t a l S t a t u s :

c ) Widowed =/ d ) Livorced o r Separated

b -

.......... 5. dhlcb b i v i s i o n / ~ i partmcnt do you head?.

5. Tiow long have you been he3din,y t h e ~ivision/ EL.;: l r tmrn t?

7. How does t h e Comuany r e c r u i t h e r s t a f f ? Through:

a ) Test/Zxamination U 5 ) Favourit ism L-.7 c) In t e rv i ew L7 d) Th~ough ( a ) and (c j only /I-'I --a.

E ) None of - the above

2 . !!ow x ,my of thcsc wel fa re s e r v i c e s docs t h e Cornyany render t o t h e employees? Tick ( / )

a) Free ~ccoomodntion/Rent Subsidy f'-7 b) Free Medical C w e a c) Free Wansport/lrt-lhicle Loan r ] ....- . d) Mousing Loan f'-7 ej Free Lunch l-:-T' f ) Spec ia l Allcx;:.tion t o staff r-7 *.-

g) t " i y i ~ ~ t h e r s p c i f y : ...........................

Has the company any t ra in ing programme f o r the employees?

a) Yes

has the company experienced any s t r i e ac t ion by thc employees'?

2) Yes /7

If your answer t o question 10 i s Yes, how many times?_*__ - If your answer to question 10 is No, would you a t t r i b u t e t h i s t o good working re la t ionsh ip between management and workers?

a j Yes

How does the company obtain the required raw matcrials? Through:

a) Importation /17 b) Locally /-7 Does the company experience breakdown of equipment?

Has the company qua l i f i ed technicians t o maintain the equipment?

Is the company producing a t full capacity i n your own opinion?

rrclo ~ t ~ t . 1 . ~ veer1 any case 01 Sraud o r ernbezzlement i n t h e company?

Yes L-7 b) No L7 Vould you a c c e p t t h e view t h a t t h e Company h a s hccn managing h . r f i n a n c i a l r e s o u r c e s w e l l ?

a ) Yes [-7 b) N', /-f--;7

i!ss the? company recorded any financial loss s i n c e i t s c s . t~b l i shmen t ' ?

a ) Y t . s f-7 b) Eo %_u7 I f your 3nswcr Lo ~ : u e s t i o n 19 i s 3 0 , what r e ? s o n ( s j w o u l ~ you g ive f o r t h i s ?

20es t h e rnnnagtnent expcricnce any problem(a) from t h z community i n which t h e company is l o c tcd':'

If your answer t o q u e s t i o n 21 i s Yes, what w e t h b sc problems?

?It=,-:t does t h e management do t o avoid t h e s e p rob l e i~ i ( s ) ?