AN ASSESSMENT OF THE MANAGEMENT PERFORMANCE OF PUBLIC ENTERPRISES IN NIGERIA

(A CASE STUDY OF ENUGU STATE TRANSPORT COMPANY LIMITED)

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ABSTRACT

 

This study was conducted to assess the management performance of public enterprises in Nigeria using Enugu state transport company as a case of study. The researcher using the questionnaire method collected first hand information from the management and staff of the company in question.

Interviews were also granted to some selected management staff. Based on the findings, the researcher were able to draw reasonable, conclusions from where they were able to give useful recommendations which they strongly immuned that if religiously followed will liberate government owned company from immuned decay.

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

CHAPTER ONE: INTRODUCTION

• General background to the subject matter
• Problems associated with subject matter
• Problems that the study will concern with
• The importance of studying the area
• Definition of importance terms
• Reference

 

 

CHAPTER TWO:          LITERATURE REVIEW

• The origin of the subject are
• Schools of thoughts within the subject area
• Schools of thoughts relevant of the problem area
• Different methods of studying the problem
• Summary
• References

 

CHAPTER THREE:      CONCLUSION

• Data presentation
• Analysis of the data
• Recommendation
• Conclusion
• Reference
• Bibliography

CHAPTER ONE

 

INTRODUCTION

• THE GENERAL BACKGROUND OF THE STUDY

The survival of any economy be it a developed or underdeveloped countries require the direct involvement of the government (state or federal) in production of some goods and services.

Unlike the situation in some developed countries the world where public enterprises play normal role in economic development, the public in Nigeria forms the major part of the national economy, Nigeria, which is a developing country, has a greater co-operation of her labour force in agriculture.

In our knowledge of development, it is believed that for a country to strive to develop, the greater proportion of the labour force must be engaged in the modern sector. This has necessitated the government to set up some vital companies such as manufacturing, construction, financial institution; transportation services among others, to moblize the idea of industrialization.

These companies set up by government are known as public enterprises or government owned companies. According to the main report to public services review commission 1974 (the Udoji report). Public enterprises include all corporations, authorities, boards council and any limited liability companies in which the government has full or majority interest.

Within this context, four types of organization are identified, namely – public utilities, financial institutions, commercial and industrial companies and regulatory or service bodies.

In pursuance of this nationalization policy government also used the weapon of nationalization to acquire some private owned companies more especially foreign owned companies.

However, many people have adduced the reason the constant interference in the day to day operations of the company, the appointment of unqualified personnel, corrupt management and practice poor attitude to work and power struggle between management and the board of directors as contributing factors to the failure of public enterprises.

The need for management in both private and public organisations cannot be over looked. With out effect and effective management, the goals and objectives of organisations cannot be achieved

To appreciate the performance and problems of management, it is necessary to understand what management is all about.

Management is not easily defined. This is because different authors defined management in different ways. According to Udeze (1993) management is getting things done through other people so as to include to management as well as the lower strata of management.

The government companies under study are ventures which must operate under management. Therefore, governments at various levels of authority advanced their reasons for participating in business of owing companies and parastatals

According to Ejiofor (1985) some of the reasons for government

Ownership of business includes:-

1. Raising of revenue (profit motive)
2. Provision of social welfare services.

• Ensuring adequate supply as essential scares and consequently expensive leadership.

1. A demonstration of economic leadership.
2. Avenue for investment of surplus funds.
3. Provision of employment opportunities.

In the light of the above the Enugu state government established a number of companies which includes. Enugu state transport company Limited Entraco).

Therefore, in the study of management in the company, the following areas are collered administration. Finance and financial management, control and accountability, political interference, attitude to work etc. all these will help the researchers to asses the performance of this company.  According to Ofora (1977) the experience and stories with the functions of the government companies have shown much indue influence or disagreement relationship particularly between the board of directors and management  (in particular between the chainman of the board and the general manager). The business of the company therefore, suffers because of this disagreement relationship. This amount of conflicts of duties and personnel interest in the utilization of the company’s property which led to making secret profits or achievement of other unnecessary benefits.

According to Enugu state report (1992) cases of financial mismanagement embezzlement. Nepotism and indiscipline have continued to affect government attention to set panel of inquiry into Enugu state owned companies.  At the end of such investigation and recommendations, government reactions have included dissolution or re-appointment of Boards and management functionaries.  According to Ajuluchukwu (1992) the effect of this kind of government reaction could only create another problem of non-continuity of policy and style.

In recognition of the continued existence of these problems, the Enugu state Transport company limited decided to improve on their effectiveness and efficiency. They have therefore encouraged cordial relationship between Board and management and avoided serious industrial action by their staff. The management practically applied Odaju’s Human Relation model, which defined efficiency as a function of motivation and ability. This was done by providing the staff with incentives and extra allowance to raise their income.

These efforts did not achieve the desired result of effectiveness and efficiency in the management of government owned companies as well as indicated by the frequent dissolution or reappointment of Board and management functionaries in 1990s.  In spite of the government efforts, the performance of government owned companies parasists while their private counterparts continued to service, grow and make profits.

 

• PROBLEMS ASSOCIATED WITH THE SUBJECT MATTER

In recent times, government owned countries in Enugu state have been encountering a lot of problems in their activities. Among the Manifested problems are:- Some of these companies have continued to make steady loses since their establishment. According to Ibie (1988), the poor performance of management was as a result of the fact that supervising ministries of government owned companied have not been able to allow enough freedom of action to these companies.