managing public organizations in nigeria a case study … chinyelu e..pdf · a case study of...
TRANSCRIPT
i
ORJI, CHINYELU ELOCHUKWU
REG NO.: PG/M.Sc/07/42532
PG/M. Sc/09/51723
MANAGING PUBLIC ORGANIZATIONS IN NIGERIA
A CASE STUDY OF SCIENTIFIC EQUIPMENT
DEVELOPMENT INSTITUTE, ENUGU
PUBLIC ADMINISTRATION AND LOCAL
GOVERNMENT
A THESIS SUBMITTED TO THE DEPARTMENT OF PUBLIC ADMINISTRATION
LOCAL GOVERNMENT, FACULTY OF SOCIAL SCIENCES, UNIVERSITY OF NIGERIA
NSUKKA
Webmaster
Digitally Signed by Webmaster‟s Name
DN : CN = Webmaster‟s name O= University of Nigeria, Nsukka
OU = Innovation Centre
2008
ii
TITLE PAGE
MANAGING PUBLIC ORGANIZATIONS IN NIGERIA A CASE STUDY OF
SCIENTIFIC EQUIPMENT DEVELOPMENT INSTITUTE, ENUGU
BY
ORJI, CHINYELU ELOCHUKWU
REG NO.: PG/M.Sc/07/42532
A THESIS
PRESENTED TO THE DEPARTMENT OF PUBLIC
ADMINISTRATION AND LOCAL GOVERNMENT, UNIVERSITY OF
NIGERIA, NSUKKA IN PARTIAL FULFILMENT OF THE REQUIREMENT
FOR THE AWARD OF MASTER OF SCIENCE DEGREE (M.Sc) IN PUBLIC
ADMINISTRATION
PROJECT SUPERVISOR: DR. C. OFUEBE
DEPARTMENT OF PUBLIC ADMINISTRATION AND LOCAL
GOVERNMENT, UNIVERSITY OF NIGERIA, NSUKKA.
2008
iii
APPROVAL PAGE
This research work has been approved for the award of Masters in Science (M.Sc)
Degree in the Department of Public Administration and Local Government University
of Nigeria Nsukka.
………………………………………. ………………………………
Dr. C. Ofuebe Dr. (Mrs.) R. C. Onah
Supervisor Head of Department
Date …………………………….. Date ………………….
………………………………….. ………………………………
External Examiner Dean faculty of social science
Date: ……………………………. ………………………………
iv
CERTIFICATION
This project has been certified to be written by Orji Chinyelu Elochukwu with reg.
number PG/M.Sc/07/42532. It is a research work carried out as part of the partial
fulfillment of the requirements for the award of M.Sc. Degree Honours in Public
Administration and Local Government.
………………………………………. ………………………………
Dr. C. Ofuebe Dr. (Mrs.) R. C. Onah
Supervisor Head of Department
Date …………………………….. Date ………………….
v
DEDICATION
I dedicate this work to the Almighty God for his bountiful love, faithfulness and
provision to me throughout my period of stay in this programme.
To my parents Mr. And Mrs. G. N. Orji, for their parental love, care and support.
May God bless and keep you.
vi
ACKNOWLEDGEMENT
I owe my sincere gratitude to God for his favour towards me throughout the course of
this work. I profoundly express my appreciation and love to my parents, Engr. and
Mrs. G. N. Orji and siblings for their earnest prayers and support. I am grateful to
God for being a part of the family.
With all due respect, I wish to acknowledge my intelligent supervisor Dr. C. Ofuebe
for his erudite prowess and mentorship on this work. Your contributions will ever
remain impactful. It is my singular honour and privilege to appreciate Prof. P. O.
Ebigbo for his fatherly support and scholarly advice. I am quite grateful Prof, may
God bless you real good.
I would not fail to acknowledge my colleagues Mr. Fidelis Ojugbeli and Mr. Johnson
Chukwusa. Thanks for being there. To Mr. Solomon Ani and Mr. Ezeani, your
painstaking effort and sacrifice in ensuring the questionnaires were well administered;
are highly valued. Mr. Desmond Nnamani, I owe you my gratitude.
For doing a wonderful job on the manuscript, I owe my special thanks to Mrs. F. O.
Onuoha and Mrs. J. C. Okoro. May God bless you. To my friends Uche and Mezie at
the International Federation for Psychotherapy (IFP) Enugu; thanks for your support.
Finally, I wish to acknowledge my special friend Nonye. Your prayers and concern
will remain indelible in the memory.
vii
TABLE OF CONTENTS
Title Page
Approval Page i
Certification ii
Dedication iii
Acknowledgement iv
Table of Contents v
List of Tables vi
Abstract vii
CHAPTER ONE
1.0 INTRODUCTION 1
1.1 Background to the study 1
1.2 Statement of the Problem 6
1.3 Objectives of the Study 9
1.3.1 General Objective 10
1.3.2 Specific Objective 10
1.4 Significance of the Study 10
1.5 Scope and Limitations of the study 11
CHAPTER TWO
2.0 LITERATURE REVIEW AND METHODOLOGY 13
2.1 Literature Review 13
2.2 Hypotheses 67
2.3 Operationalization of Key Concepts 67
2.4 Research Procedure (Methodology) 68
viii
2.4.1 Survey Research 69
2.4.2 Data Gathering Instrument 70
2.4.3 Test of Reliability 73
2.4.4 Test of Validity 73
2.4.5 Location of the Study 74
2.4.6 Population of the Study 74
2.4.7 Sample of Study 75
2.4.8 Sampling Technique 77
2.4.9 Method of Data Collection 80
2.5 Method of Data Analysis 81
2.6 Theoretical Framework 81
CHAPTER THREE
3.0 BACKGROUND INFORMATION ON THE
SCIENTIFIC EQUIPMENT DEVELOPMENT
INSTITUTE, ENUGU (SEDI-E).
85
3.1 Brief History of SEDI-E 85
3.2 Location of SEDI-E 88
3.3 Population of SEDI-E 88
3.4 Temperature region of SEDI-E 88
CHAPTER FOUR
4.0 DATA PRESENTATION, ANALYSIS AND
FINDINGS
89
4.1 Data Presentation 89
ix
4.2 Findings 96
4.3 Discussion of Findings 104
CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND
RECOMMENDATIONS
112
5.1 Summary 112
5.2 Conclusion 114
5.3 Recommendations 115
Bibliography 117
Appendices 122
x
LIST OF TABLES
1. Tables 2. 4. 1 – Distribution table showing the number of Departments of SEDI-E
……………………………………………………...80
11. Table 2 .4. 2 – A complete tabulation table showing the sample size for the strata (ie, the
five departments of SEDI-E)…………………….85
xi
ABSTRACT
Public organizations are tools for massive intervention of the government in national
economies. In Nigeria, public organizations gained significance after her independence
basically in 1960s and early 1970s.This was the period when Nigeria inherited weak
infrastructural base which could not support effective post independence development and
expectations. This issue was aggravated by the fact the indigenous private sector was
extremely weak, small and backward. Hence, public organizations in Nigeria were designed
by the federal and state government to play active roles in the economic development of the
country. This was meant to be achieved through the provision of the much need
infrastructural base and essential social services to the populace. In this regard, public
organizations in Nigeria became active in the key sectors such as manufacturing,
construction,finance,services,utilities,transportation,agriculture,natural resources, et cetera.
Nevertheless, there is a general opinion that majority of the government owned organizations
in Nigeria are not productive. Most of them perform below standard and are poorly
managed. The nature of our politicking, inadequate funding, paucity of skilled manpower,
lack of motivation among others; are the factors that affect the management of public
organizations in Nigeria. In the course this research, the problems attributing to the poor
performance of public organizations in Nigeria are interpreted to be management induced
and government induced. To this end, this research contains five chapters. Chapter one
contains the background to the study, statement of the problem, objectives the study, scope
and limitations of the study .Chapter two contains literature review, hypotheses,
operationalisation of key concepts, research procedure(survey research ,research instrument,
test of reliabilility, test of validity, location of the study, population of the study, sample size,
sampling technique, method of data collection, method of data analysis), theoretical
framework. Chapter three contains background information of the case study-“Scientific
Equipment Development Institute- Enugu”. Chapter four subsumes data presentation,
analysis and findings. Finally, chapter fives presents the summary, conclusion and proffers
recommendations.
1
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
the successive public service “is a product of colonialism, established as an instrument
of the British colonialist, from the late 19th
century” (inyang,2008a:52). According to
Tokunboh (1990:17):
the system of the state enterprises begun in 1898 when the British colonial
administration undertook the railway transport project from Iddo in the
capital city of Lagos to the hinterland. This was followed by coal mining
electricity and Marine Ports. All these enterprise were established
primarily as administration organs for facilitating trade and commercial
activities of the colonial government.
Subsequently in the 1950s, the following public corporations were established in
Nigeria. Nigeria Coal Corporation; Electricity Corporation; Nigeria Cement
Company, Nkalagu; Nigeria railway Corporation and Nigerian ports Authority. All
corporations were managed by boards (Inyang, 2008a:99).
Thus, successive governments have used public corporations and state-owned
companies as tools of public intervention in the development process. This was
eloquently stated in the Nigerian Second National Development Plan (1970 – 74: 75
quoted in Ezeani, 2005: 211) thus:
Public organization‟s primary purpose is to stimulate and
accelerate national economic development under
conditions of capital scarcity and structural defects in
private business organizations. There are also basic
considerations arising from the dangers of leaving vital
sectors of the national economy to the whims of the
private sector often under the direct and remote controls of
foreign large-scale industrial combines.
Similarly, Bagaji(2002:124) observes,
2
The Nigeria economy has been wading through the muddy waters
of economic imbalance and financial dislocation since the
beginning of 1980s.This is the direct result of years of in-built
distortions in macro-economic quantity in the early
70s,developmental emphasis shifted from agricultural production
to crude oil exploration and exploitation. The huge demand for
oil in the world market provided enormous foreign exchange. The
latter supported the industrial policy of that era. Emerging
industries grew to depend on external inputs in th manufacturing
process. The consumption pattern followed suit. this made
Nigerians to import virtually everything required for their living.
efforts were not made to properly invest the petro-dollars in self-
sustaining and inward-looking industries Rather, the huge foreign
exchange earnings were magnetized and recycled in pursuit of
flamboyant and profligate consumption patterns. This only aided
the development and growth of the metropolitan economies and
to the detriment of the Nigeria economy.
The period described above saw the emergence of the public sector as
the dominant actor in the economic scene. Ezeani (2005:211) posits:
Public Enterprises wre seen as veritable tools for achieving national
socio-economic development.
Thus the government of Nigeria got actively involved in the development of the
national economy. This was done in order to make for an independent economy that is
home based. In the same vein, it was aimed to provide huge capital requirements and
technical knowledge needed for meaning development among indigenous
entrepreneurs. (Ozor, 2004: 126). The Nigerian government grew to be the greatest
spender, investor and employer in the economic management of the country.
Adamolekon (2002:28) posits:
the organization and functioning of public enterprises vary in some
important respects among countries worldwide”. As long as there is
government, there are likely to be public enterprises since they actually
represent a form of political expression of the economic intention of the
government.
3
At this juncture, it is expedient to define the concept of public organization as given
by various scholars and practitioners. The definition of public organizations,
according to an expert group meeting on the “Concept, Definition and Classification
of public enterprises (organizations),” was needed for two major purposes (Bohn,
1981: 72 quoted in Ezeani, 2005: 212). Firstly, for the purpose of undertaking
comparative research studies; and secondly, for the wider purpose of better
understanding of the nature and character of public organizations, with a view to
improving their performance. However, as far as public organizations are concerned,
it was pointed out in a United Nations (1971:151) general report that,
there does not appear to be any agreement among experts as to the precise
definition of public organizations. This is due to the diversity in the legal
structures, organizational patterns and external forms of public
organizations.
Similarly, in a United Nations publication(quoted in Ezeani,2005:212),public
organizations are defined as “those organizations in which the government has
majority interest of ownership and/or management”. Adamolekun (2002:28), “A
public organization is an organization that is set up as a corporate body and as part of
the governmental apparatus for an entrepreneurial or entrepreneuriallike objective”.
For example, Vlachos quoted in (Ezeani, 2005:212) defines a public organization as
“public property used for an industrial or commercial purpose and legally separate”. A
major flaw of the above definitions is that they are very narrowly conceived, and
therefore, reflect only commercially-oriented public organizations. (Ezeani, 2005:
213).He further opined that public enterprises are defined as:
legally constituted bodies operating services of an
economic or social character or both on behalf of the
government. Though largely autonomous in their
management, they are subject to different types of
4
government control, and are also characterized by
different degrees of public financial supports
This definition is comprehensive because it takes into cognizance, the various types of
public organizations: commercially – oriented, social service-oriented or
both.(Ezeani,2005:213).
Nevertheless, if the activities and performances of public organizations are critically
assessed over the years, it can be observed that many of these organizations have not
operated profitably and efficiently. Even the essential services oriented ones have
made colossal losses and are therefore, run on government subsidies. The reasons for
this state of affairs are complex, but one can unequivocally say that a lot of difficulty
has come from the practice of managing the organizations as if they are government
departments and from the nature and political economy including corruption and
political interferences (Bagaji, 2002:123 – 124). The performance of most public
organizations in developing countries has been generally disappointing. There is wide
spread doubt as whether the benefits of public organizations are worth the cost
(Obadan, 2008: 8).
Thus Clarke (1994:399), comments:
The performance of public organizations came under
challenges posed by various issues especially the growing
dissatisfaction among citizens with bureaucratic
inefficiencies, the diminishing performance of public
enterprises, the declining public confidence in government
institutions, the deteriorating situation of inflation
allegedly caused by public sector deficits, led to the critic
of state intervention and the advocacy for market driven
remedies (Clarke 1994: 399).
From the above analysis, it can with all good intention be said that public
organizations in Nigeria have not lived up to the expectation of Nigerians because
5
they have not satisfied both the basic requirements for developmental philosophy as
well as general and specific reasons in their operations and performance. It is also
important to note that a number of factors account for the poor performance of most
Public Organizations. Ezeani (2005:224), summarized these reasons as follows:
(a). Multiple and often contradictory objectives of the enterprises,
(b). Excessive control and lack of Autonomy,
(c). Excessive Political Interference,
(d). Absence of competitive environment,
(e). Corruption
(f). Poor Infrastructures.
On the hand, Onwuchewa (2003:6), opined that “management is the most important
among all the factors that are necessary for economic development”. Different
meanings and definitions have been attributed to the word “management”. According
to Onah (2003:28), “it is the combination and coordination of human, financial,
physical and information resources, to achieve the organization‟s goals”. It is a
process, which demands the performance of specific functions. According to
Polinaidu (2004:298),Fayol was the first to put forward a classic analysis of the nature
of managerial activity, based on his own experience of the job in the mining and
metallurgical combine. He defines management in terms of the following five key
functional elements:
1. Planning: It is the act of forecasting future and drawing up the plan of action.
2. Organizing: It refers to structuring the human resources of the undertaking into
jobs, departments and so on to enable them to put the plans into action. It also
involves the use of material/resources.
6
3. Commanding: It consists of setting the human resources into activity toward
the organization‟s objectives. This is what we today call “leading”.
4. Coordinating: It involves unifying and harmonizing all activities and efforts. It
permeates the other four basic functions.
5. Controlling: It means, “Seeing that everything occurs in conformity with
established rule and expressed command”. It serves to make certain that all
operations are proceeding according to plan to accomplish the goals. These five
managerial activities are treated by Fayol as universal. In his opinion, these
activities have to be performed by managers of all types of both Public and
Private Organizations (Polinaidu 2004: 298).
1.2 Statement of the Problem
Ezeani(2005:222),observes:
Most Public Organizations in Nigeria are not productive. Their performance
have been very disappointing. The rationale for, and the genesis of the
establishment of Public Organizations in Nigeria was for general/national
developmental purposes…
Paul and Simon (cited in Obadan, 2000:8 and in Ezeani, 2005:222) argue that, in
country after country, unbridled state expansion has led to the following:
i. Economic Inefficiency in the production of goods and services by the public
sector, with high costs of production, inability to innovate, and costly delays in
delivery of the goods produced.
ii. Ineffectiveness in the provision of goods and services, such as failure to meet
intended objectives‟, diversion of benefits to elite group et cetera.
7
iii. Rapid expansion of the bureaucracy, severely straining the public budget with
huge deficits of public organizations becoming massive drain on government
resources, inefficiency in government et cetera.
iv. Poor financial performance of public organizations reflecting a history of huge
financial looses, overstaffing and burden of excessive debts.
All the above, are peculiar in majority of Nigeria Public Organizations. Most Public
Organizations operate at a loss and therefore constitute a massive drain on government
resources through transfers and subsidies (Obadan, 2000:10).
In Africa, the poor performance of Public Organizations attracted a great deal of
criticism, particularly, in the 1980s, as the macro-economic policy environment,
arising from the impacts of the global economic crisis, became less accommodating to
the resulting inefficiency in resources allocation.
For instance, the federal government of Nigeria, invested heavily in government
parastatals and companies between 1980 to October 1985, as follows:
i. Equity Investments N11,430,077,534.00
ii. Loans N10,424,720,053.00
iii. Guaranteed Naira loans N23,215,267,219.00
Loans guaranteed in foreign currencies DM 2,128, 706, 062.00
DFL 8,974,500.00
US & 16,200,000.00
Source: (Sanda, 1987: 176 quoted in Ezeani, 2005:223)
Apart from the preceding, the then Chief of General Staff (Admiral Augustus
Aikhomo), in his briefing to the media in November 1985, also indicated that a total
8
of N11,513,052 was given as subvention to the parastatals during the review period
1980 – 1985 (Sanda, 1987: 176 quoted in Ezeani, 2005:223).
It has been noted that the public organizations in Nigeria had enjoyed the following
transfers in 1998 alone (Umezurike, 2005:215).
Subsidized foreign exchange N156.5 billion
Imported duty waivers N12.5 billion
Tax exemption arrears N15.0 billion
Unremitted revenues N29.5 billion
Loans and guarantees N16.5 billion
Grants/Subventions N35.0 billion
Furthermore over $100 billion had been sunk into public organization in Nigeria
(Umezurike quoted in Ezeani, 2005: 224). Public organizations managers suffer from
excessive control and interference in their daily operations by supervising government
departments. This often stifles managerial inefficiencies and loss of accountability
(Obadan, 2000:11).
Public organizations also suffer from frequent political interference. They are often
seen as instruments of political patronage by the government in power. This results in
overstaffing, poor choices of product and location, recruitment of unqualified staff, et
cetera. Most public organizations, especially in the developing countries, such as
Nigeria, are as instruments for private wealth accumulation by their managers and
political appointees. Consequently, huge sums of money are often siphoned into
private accounts, leading to huge losses by the organizations (Bagaji, 2002:9). All the
above problems characterize public organizations in Nigeria.
These problems raises the following questions:
9
1. How does government interference impinges on efficient and effective
management of “Scientific Equipment Development Institute Enugu, (SEDI-
E)”?
2. Is it not a possibility that lack of motivation of “Scientific Equipment
Development Institute Enugu, staff produces negative results in their job
performance?
3. Is the productivity of “Scientific Equipment Development Institute Enugu,
(SEDI-E) not stifled by its management problems?
1.3 Objectives of the Study
This paper focuses on some bogging issues to public servants of public organizations,
scholars and students alike.
1.3.1 General Objective
In this regard, the general objective of this study is to ascertain whether the poor
performance of Public Organizations in Nigeria has pathological effects on the
national growth and development of the economy.
1.3.2 Specific objectives
The specific objectives of this study are as follows:
i. To show that excessive government interference, hampers the efficient
management of the Scientific Equipment Development Institute-Enugu.
ii. To initiate a process of gradual change of attitude among subordinates and
superodinates of the Scientific Equipment Development Institute-Enugu
iii. To create an enabling environment for managerial productivity in the Scientific
Equipment Development Institute-Enugu
10
1.4 Significance of the Study
The public sector emerged in Nigeria as a result of the need to harness rationally scare
resources. The latter was intended to produce goods and services for economic
improvement as well as promotion of welfare of the citizens (Bagaji,2002:125).
However, there is a general opinion that most of the public organizations have failed
to deliver on the purposes for which they more established. Management
ineffectiveness and inefficiency have been advanced by practitioners and researchers
of public organizations as the bane of the Nigerian public sector (Tokunboh,1990:50).
Similarly, Agagu (2008:243), asserts that “the public service which was seen as the
custodian of rules and regulations and the engine of the development had lost its
prestige and confidence…”
Furthermore, Obasanjo (2003) observes:
Nigerians have too long been feeling short-changed by the
quality of public service. Our public offices have long
been showcases for combined evils of inefficiency and
corruption, whilst being impediments for effective
implementation of government policies
In what ways therefore, do these problems contribute to the significance of this study?
1. It will contribute to the existing literature knowledge on management of public
organizations.
2. It will show how lack of motivation of SEDI-E staff, stiffs their performance
and productivity.
3. It will provide an explanation for events and relationships in the management
of Public Organizations.
4. Access the impact of motivation on job performance as perceived by staff of
SEDI-E.
11
5. It will show whether some observed characteristics of SEDI-E staff, have any
significant role to play in the way public servants are perceived in other public
sectors in Nigeria.
1.5 Scope and Limitations of the Study
The scope of this study, focuses on management of public organizations in Nigeria
from 1997 – 2008. Particular reference will be given to the “Scientific Equipment
Development Institute” Enugu. This is aimed at cost reduction and complexies
associated with scientific research of any academic endeavour.
This study has the following limitations:
1. Paucity of Data – One of the major problems of this research is paucity of data.
Eliciting information was difficult. Proper statistical record was not
documented. I tackled this challenge by resorting to the use of internet and
obtaining basic information from a reliable staff of SEDI-E.
2. Insecurity: Respondents were a bit afraid of government repression and what
the information elicited from them will be used for. However, I assured them
that their responses will be treated in absolute confidence.
3. Problem of storage and Retrieval of data – In Nigeria, poor storage and
retrieval of data, poses a big challenge. Inspite of this, I was enable to interview
some staff of SEDI-E, who are knowledgeable about the organization and
obtained some vital information.
4. Low Response rate: There was display of apathy from respondents. Some of
them were unwillingly to cooperate. For instance, I distributed 320
questionnaires but only 280 were correctly filled and returned.
12
5. Poverty-Research Undertaking is usually an expensive venture. Often times,
not many people have the funding nor are willing to sponsor academic research
due to financial constraints.
6. Lack of interest – This is one of the problems that could affect researches.
Thus, all the above mentioned challenges are enough to weaken the moral of
the researcher and make it uninterested to him.
13
CHAPTER TWO
2.0 LITERATURE REVIEW AND METHODOLOGY
2.1 LITERATURE REVIEW
As been noted earlier, most public organizations in Nigeria, have been performing
below standard. A lot of research works and discussions have been undertaken on this
area by many researchers and scholars. This chapter will review most works of
scholars and researchers on the concept of public organizations and it‟s management
in Nigeria.
CONCEPT OF PUBLIC ORGANIZATION
According to Drucker quoted in (Polinaidu, 2004:156) “today‟s society is a society of
Organizations”. Virtually all-social tasks are undertaken by various organizations of
different forms, shapes and sizes such as schools, universities churches, hospitals,
labour unions, political parties, government departments and many others.
All government activities are carried on by a number of public organizations in order
to fulfill the social objectives of government and to maximize many diverse values.
Government organizations aim at the provision of services and the application of
constants to individuals and groups. To fulfill the goals of government, public
organizations must be financially self-sufficient and administratively efficient
(Polinaidu, 2004:156).
In the views of Farazmand and Kluwer (2002:199), the concept of a public
organization is defined as one that includes “governmental, non-governmental, and
non-profit organizations”. By integrating research at these three levels public
organization review will help us understand how modernity and globalization have
brought about a deep convergence of organizational modes and structures over vast
14
distance with far-reaching implications. Traditional organizations were small in scale,
usually family-based, and either hierarchal or equalitarian in structure, but not both.
Modern public organizations combine both aspects, permitting “members” (Citizens,
stock holders, partners) to exercise polyarchic control through elected councils,
boards, or assemblies over vast hierarchic bureaucracies capable of managing far
flung administrative or managerial functions.
Public organizations are formally structured to enable management to discharge their
functions efficiently and effectively. Public organizations for instance are the visible
presence of government administration in particular areas for serving entire
communities or a particular community (Suleimanu, 2007:4). However, when public
organizations perform badly, it draws indictment on government and tarnishes their
performance image.
Ezeani (2005:213), defines public organizations as
legally constituted bodies operating services of an economic or social
character or both on behalf of the government. Though largely autonomous in
their management, they are subjected to different types of government
control, and are also characterized by different degrees of Public Financial
Support.
According to Ozor (2004:108), “There is no generally accepted agreement among
scholars with regards to the definition of public enterprises”. This lack of universal
agreement on definition among scholars emanated from the variations in the nature of
public enterprises – their organization, functions and control, among countries.
Constantly, these differences make it difficult for a universal definition. The United
Nations summarizes this in its report by saying that “there does not appear to be any
agreement among experts as to the precise definition of public enterprises” (United
Nations, 1974:2). Sosna quoted in (Ozor, 2004:27), emphasizes further that:
15
There are many reasons why in developed capitalist
countries there is no single standard definition of public
enterprises: Public enterprises were established at different
periods, and each epoch naturally brought forth the types
of public enterprise most clearly matching its own
conditions.
On the other hand, in the developing countries the concept of public
organizations embraces several kinds of state economic establishments and,
therefore, less definite. Similarly, Caiden (cited in Ozor, 2004:108) pointed out
thus:
… this is because the concept of development which they are designed to
promote has evoked different images such as economic well-being, social well-
being, social harmony, universal participation, cultural freedom, and other
desirable objectives for mankind such that definitions largely depend on
perspectives.
Public organization is defined as “a business organization wholly or partly owned by
the state and controlled through a public authority” (www.britannica.com). Some
public organizations are placed under public ownership because for social reasons. It
is thought the service or product should be provided by a state monopoly. Utilities
(gas, electricity, broadcasting, telecommunications (et cetera). Certain forms of
transport are examples of this kind of public organization (www.britannica.com). In
the light of the above, the Nigerian public service “is a product of colonialism,
established as an instrument of the British colonialist, from the late 19th century”
(Inyang, 2008a: 52).
The United Nations, defined a public enterprise (organization) as “an incorporated or
large unincorporated enterprise in which public authorities hold a majority of the
shares and/or can exercise control over management decisions” (www.capdm.com).
16
Irukwu(1987:9), defined public organizations as
any organization, institution or enterprise, which is operated under the
auspices of the state, either as a commercial concern or as an instrument of
social welfare and services. They are generally a corporate body, ultimately
responsible to the state
In the view of Powell (1987:18);
The primary organizational component of public system is the
corporation. Most governments undertaking enterprise activities
establish corporate bodies through a special legislative act, and a joint
stock company established under the commercial or civil law of the
country, with limited liability to its members in their corporate dealings.
Public enterprises (organizations) are also established to perform mediatory and
regularly functions. They are institutions wholly or partly owned by the government,
created outside the framework of civil service, to perform some vital developmental
functions which the deficiencies of the public bureaucracy make it incapable of
undertaking (Ozor, 2004:110).
Polinaidu (2004: 157 – 158), refers to public organizations as:
i. The act of designing the administrative structure,
ii. Both designing and building the structure, that is, planning the scheme of the
structure and appointing suitable personnel to it and
iii. The resulting administrative structure itself.
The various definitions of public organizations quoted above are merely indicatives of
the views of both traditional and behavioural writers. The controversy over the
importance of organization goes on endlessly. Classical writers argue that structure is
of prime importance for efficient functioning of an organization. It is said that
experience shows that good men will be thwarted in their best efforts by faulty
17
organization. On the other hand, a favourable organizational structure attracts good
men and give them a chance to do an efficient, economical job (Polinaidu 2004:158).
On the contrary, the behaviouralists and the humanists give much importance to the
people in the organization. They argue that the element of good persons in the jobs
matter more than the structure (Bell, S.J., Whitwell, G.J., Luklas, B.A., 2002: 70-86).
The fact is that public organizations are both structure and human beings. This denotes
the interrelation of functions and persons into productive relationships (Polinaidu,
2004:158). Furthermore, he opined that, “for any public organization to perform
effectively, it is necessary that”:
i. Both the mission and the immediate task are abundantly clear to every one.
ii. The results are clearly specified.
iii. The performance is assessed against a clear set of goals and objectives.
iv. The organization is managed.
Thus, there needs to be someone who accepts responsibility for making decisions and
for achieving results.
JUSTIFICATIONS FOR PUBLIC ORGANIZATIONS
In the views of Ezeani (2005:214) and Powell(1987:18), the case for the establishment
of public organization has often been made on many grounds, among which are the
following:
1. The paucity or in some cases absence of indigenous private sectors that can
undertake to provide certain infrastructural facilities, particularly, in services
requiring heavy financial investment e.g. railway, electricity, ports and harbour,
airways, et cetera. Under such circumstance, direct government control may be
18
required to ensure that prices are not set above the costs of providing such
services.
2. Establishment of public organizations by the state enables it to pursue
objectives relating to social equity which the market would ignore, notable
among which is preventing “the concentration of wealth or the means of
production, and exchange in the hands of few individuals, or of a group”
(Adamolekun, quoted in Ezeani, 2005:20). Others are provision of employment
and ensuring that a great majority of the citizens have access to essential goods
and services at an affordable price.
3. The need to ensure government control over “strategic” sectors of the economy
such as central banking, broadcasting, iron and steel, international air transport,
shipping, et cetera (Adamolekun, 2002:35).
4. State control of key profitable enterprises enables it to generate revenues that
will add to available national capital for financing development programs and
projects.
5. State ownership of some public enterprises (organizations) are seen as a means
of employment creation in a situation where the private sector of the economy
offers very limited employment opportunities.
6. Paucity and sometimes lack of private incentives to engage in promising
economic ventures due to factors such as uncertainty about the size of local
markets, unreliable sources of supply, and the absence of technology and
skilled labour (Obadan, 2000:6).
7. Public enterprise (organizations) are seen as a veritable instrument of plan
implementation, especially, in a context where the private sector appears weak.
19
8. Economic of scale, cost of research development and the introduction of
new technologies are all frequently given as justifications for government
interventions when these are beyond the capability of local private
investors (Powell, 1987: 18).
9. In countries blessed with an abundance of natural resources, particularly oil
and other energy resources including minerals and other strategic raw materials;
the desire to exploit those resources efficiently while avoiding speculation by
foreign nationals is frequently a strong justification for establishing state
corporations. This is coupled with the need to ensure that foreign exchange
earning from those resources accrue to the state and not to the private
(foreign) entrepreneur, especially when these earnings are substantial
(Powell, 1987:8).
It is important to note that the above justifications for the establishment of public
enterprises (organizations) are not only difficult to put into practice, but they contain
serious contradictions. For instance, as Adamolekun (1983:48) rightly posits:
Emphasis on the provision of employment may seriously hinder
the achievement of the objective of profitability. Also, the
enterprises established to provide critical services that are not
profit-oriented might consume all the profits generated by the
profit-making enterprises.
Public organizations particularly, in the developing countries, are until recently,
crucial in their quest for national economic development and self-reliance.
CLASSIFICATION OF PUBLIC ORGANIZATIONS
The share size and diversity of public enterprises (organizations) have made their
classification necessary “in order to structure the discussion of the variety of
organizations in the sector” (Adamolekun, 2002:34). The classifications of public
20
organizations have been made according to a variety of criteria and by different
authorities. But as Adamolekun (2002:34) observes, “there is no single best way of
categorizing public organizations, and no classification is fully satisfactory in all
circumstances. With this in mind, public organizations will be classified according to
the public service review commission cited in (Ezeani, 2005:101) as follows:
(a) Public utility corporations, which are quasi-commercial and also social service
oriented agencies e.g. Federal Radio Corporation of Nigeria (F.R.C.N),
Nigerian Television Authority (N.T.A), Nigerian Electric Power Authority
(NEPA) among others; and
(b) Financial institutions such as Federal Mortgage Bank of Nigeria, NICON, et
cetera.
(c) Commercial and Industrial enterprises such as Oshogbo Rolling Mills, Federal
housing Authority, national Shipping line, et cetera.
(d) Regulatory or Service Bodies such as National Universities Commission
(NUC); National Library Commission, Central Bank, Joint Matriculation and
Admission Board (JAMB), et cetera.
SOME FEDERAL AND STATE-OWNED ORGANIZATION IN NIGERIA
As a result of the reasons for the establishment of public enterprises, the Federal and
State government in Nigeria established several public enterprises. These will be
categorized based on classification model provided by Adamolekun cited in (Ozor,
2004:132 – 134).
Public Enterprises System
21
1. Federal-Owned Enterprises in Nigeria
STATUTORY CORPORATIONS
(a) Public utilities
Nigeria Coal Corporation
Nigeria Ports Authority
Nigeria National Petroleum Corporation (NNPC)
Nigeria Railway Corporation
Nigeria Airways
Nigerian Telecommunications Limited (NITEL)
Nigerian External Telecommunication (NET)
Nigerian Mining corporation
Nigerian Film Corporation
Nigerian Cargo Handling Company etc.
(b) Development and Finance
Nigerian Industrial Development Bank (NIDB)
National Insurance Corporation of Nigeria (NICON)
Nigerian Agricultural and Commerce Bank (NACB)
Federal Mortgage Bank
Nigerian Agricultural Development Bank (NADB)
Nigerian Bank for Commerce and Industry (NBCI)
Export Credit Guarantee Corporation
Lotteries, Pools Betting, and Casino Commission
Afribank Plc
22
Chase merchant Bank (Nigeria) Limited
Union Bank of Nigeria Plc. (Controlling Share-Holding)
First Bank of Nigeria Plc.
United Bank for Africa (UBA)
(c). Welfare and Social Services
Federal Radio Corporation of Nigeria (FRCN)
Nigerian Television Authority (NTA)
Federal Housing Authority
National Library Board
Housing Management Board
Housing Corporation
Scholarship Board
Tafawa Balewa Square etc.
(d) Federal-Owned Enterprises
Nigerian National Shipping line Limited
Nigerian National Supply Company Limited
National Root Crops Production Company
Aba Textile Mills Ltd
Nigerian Hotels Limited
Federal Palace Hotel
Durbar Hotels Limited
Daily times Newspapers.
National Freight Handling Company
23
Nigerian National Fish company
Nigerian Produce Marketing Board, etc
Nigerian Rumanian Wood Industry
National Oil Nigeria Limited
AGIP (Nigeria) Limited,
Elf (Nigeria) limited,
Shell petroleum Development (Nigeria) Ltd., etc.
2. State Government-Owned Enterprises in Nigeria
(i). (ENUGU AND ANAMBRA STATE)
(a) Public Utilities
Enugu State Water Corporation
Enugu State Transport Company
Transport Company of Anambra State
Anambra State Water Corporation
Enugu State Rural Electrification Board
Anambra State Rural Electrification Board
Anambra-Enugu State Steel Industry, Emene, etc.
(b) Development and Finance
Enugu State Insurance Company
Anambra State Insurance Company
Enugu State Lotteries, Pools Betting and Casino Commission
Anambra State Lotteries, pools Betting and Casino Commission.
(c) Welfare and Social Services
24
Enugu State Broadcasting Service
Anambra State Broadcasting Service
Enugu State Library Board
Anambra State Library Board
Enugu State Housing Corporation
Anambra State Housing Corporation, etc
Enugu State Health Management Board
Anambra State Health Management Board
(d) State Government-Owned Enterprises
Nike Lake Resort Hotel
Daily Star Newspapers
Nigerian Furniture and Construction Company
Presidential Hotel Limited
Ikenga Hotels Limited
Ebonyi Paints Limited
Vanguard Industries Limited
(e) Mixed-Economy Enterprises
Co-operative and Commercial Bank, Plc
Orient Bank PLC.
(ii). IMO STATE
Statutory Corporations
(a) Public Utilities
Imo State Water Corporation
25
Imo State Transport Corporation
Imo State Rural Electrification Board
(b) Development and Finance
Imo State Insurance Company Limited
Imo State lotteries, pools Betting and Casino, etc.
(c) Welfare and Social Service
Imo State Broadcasting Service
Imo State Library Board
Imo State housing Corporation
Imo State Health Management Board, etc.
(d) State-Owned Enterprises
Imo State Flour Mills, Akabo
Ada palm, Ohaji, Egbema
Imo State Newspapers Corporation etc.
26
(e) Mixed-Economy Enterprises
Imo State Investment Company Limited
Co-operative and Commerce Bank, etc.
(iii). BENUE STATE
Statutory Corporations
(a) Public Utilities
Benue State Water Corporation
Benue State Transport Corporation
Benue State Rural Electrification Board
(b) Development and Finance
Benue Insurance Company Limited
Benue State Lotteries, Pools Betting and
Gambling Board etc.
(c) Welfare and Social Services
Benue State Broadcasting Service
Benue State Library Board
Benue State Housing Corporation
Benue State health Management Board
(d) State-Owned Enterprises
Benue Breweries Limited, Makurdi
Benue Burnt Clay Industries
Benue Hotels Limited
Benue Cement Company, Gboko, etc.
27
(e) Mixed-Economy Enterprise
Benue Investment Company Limited
(N.B. similar public enterprises (organizations) were established in other states
throughout Nigeria)
CONCEPT OF MANAGEMENT
Taylor’s Contribution to Management Thought and it’s Impact on Public
Organizations
By contemporary standards much of what Taylor had to say appeared naïve,
paternalistic, inaccurate and sometimes just plain silly. His scientific management
does stand as a pioneer and a revolutionary approach management. In specific terms
Taylor‟s legacy has been pronounced in industrialized management, industrial
engineering, industrial psychology, and a group of activities found in contemporary
personnel administration Polinaidu, 2004:295).
Taylor emphasized on need for professional management. He gave a specific
definition and function to the discipline of management. Based upon the work of
Taylor, there began to evolve a set of responsibilities and function specifically
associated with the practice of management.
Taylor‟s scientific management contributed to the still prevalent idea that productivity
is the primary object of organization and that the good organization is the one that
efficiently produces what is intended to do. Even now almost all countries continue to
define the work place in terms of efficiency and productivity. Even in the USA the
prevalent attitude is that good performance could be rewarded and inadequate
productivity should be punished (Polinaidu, 2004:296).
28
Taylor‟s scientific management had an important influence on public administration
theory as well. In the public sector position, classification and job design continue to
reflect many of the attitudes and ideas of scientific management. Moreover even on
such emotionally wrenching issues as mandatory retirement, many prefer to enhance
organizational efficient rather than reduce human costs.
Despite their crudity, Taylor‟s ideas acquired their greatest popularity first in the
business world, and had an important influence on its development. The ideas of
scientific management captured the interest of many business and government
officials who were trying to understand how to cope with and perhaps tame the
complex organizational world cropping up around them in the early 20th century.
Taylor‟s scientific management has greatly influenced public administration in many
ways: first: the techniques and spirit of scientific management began to pervade
gradually governmental administration. Taylorism “contributed to the widespread
acceptance of efficiency as a primary goal or purpose of administration and
management”. Its emphasis on replacing ignorance and conflict with knowledge and
harmony extremely appealed to the founding fathers of public administration
(Polinaidu, 2004:296).
The principle of division of work and specialization was Taylor‟s main contribution to
the science of administration. Such administrative theorists as Henry Fayol, Luther
Gulick and Lyndall Urwick later popularized these principles. In fact, the conceptual
framework adopted by the administrative management theorists was mainly derived
from Taylor‟s ideas of rationality, predictability, specialization technical competence,
efficiency and productivity (Polinaidu, 2004:296).
29
Scientific management‟s concepts were widely accepted by professional
administrators and scholars of public administration between 1900 and 1930.
Robert Waterman says many managers of the 1990s continue to practice Taylorism
without realizing it. Taylor‟s thinking has been developed into what is now called
work study.
It is because of scientific management that Frederick Winslow Taylor became one of
the outstanding figures in the history of management thought. As Peter Drucker cited
in (Polinaidu, 2004:296) acknowledged in “Management: Tasks Responsibilities,
practices”, “Taylor was the first man in history who did not take work for granted but
looked at it and studied it”, (Polinaidu, 2004:296).
Henri Fayol, a French mining engineer and manager, is generally regarded as the first
management theoretician and founder of the “Management process School”. His fame
as a management thinker rests mainly on his short but widely influential work, entitled
“Administration Industrielle et Generale” (1916). This book is regarded as an
outstanding contribution to the formulation of classical administrative theory. Its
English version appeared as “General and Industrial Management” in 1949. In his last
years, he studied the problems of public services (Polinaidu, 2004:296).
His approach operates on the grand assumption that workers are motivated by
economic gains to work. It therefore, proceeds to design structures and rules
necessary to cash in on these worker characteristics. Because it focus primarily on
structures and treats workers as tools, it has been called “Organization without
people”. Its guiding slogan seems to be that the most efficient organization will be the
most satisfying one (Okoli, 2004:19)
30
The Activities of an Industrial Undertaking
Henri Fayol cited in (Polinaidu, 2004:298), identified the activities of an industrial
undertaking and grouped them into the following six categories.
(1) Technical Activities: (Production, Manufacture, and adaptation)
(2) Commercial Activities: (buying, selling, exchange)
(3) Financial Activities: (search for the optimum use of capital)
(4) Security Activities: (Protection of property and persons)
(5) Accounting Activities: (Stocktaking, balance sheet, costs, statistics).
(6) Managerial Activities: (planning, organization, command, coordination,
control).
These six groups of essential activities are always presenting in most jobs, in varying
measure. For instance, the managerial element is greatest in senior jobs and least or
absent in direct production or lower clerical tasks.
Fayol‟s Definition of Management and Its Elements
In the words of (Polinaidu, 2004:298), Fayol was the first to put forward a classic
analysis of the nature of managerial activity, based on his own experience of doing the
job in the mining and metallurgical combine commentary – Fourchamboult –
Decazeville.
According to Fayol, a successful manager must possess leadership qualities,
knowledge of the business and his workers, and the ability to instill sense mission. A
manager having these qualities can obtain the best performance from his work force.
Knowledge of necessary administrative powers and functions that have to be
performed would give the manager the power to organize and run any undertaking
relations, political or commercial. To Fayol good administration is a process, which is
31
distinct from the particular management task at hand. To put it differently, Fayol;
treated administration as a universal process, which is equally applicable to both
public and private organizations.
In Fayol‟s theory, the organization chart graphically depicts the essence of the
organization. According to Fayol, “such charts indicate the scale chair of managerial
staff of the concern and show each man‟s immediate superior and subordinates, and
are a kind of photograph of the framework of the concern at a given moment”.
Fayol’s Fourteen Principles
Fayol as cited in (Polinaidu, 2004:299) summarized the lessons of his own lengthy
experience in running a large coal mining business in a number of „general principles
of management. These principles are as follows:
(1) Division of Work: it means specialization of work or labour in a managerial
and non-managerial jobs. Specialization allows individual to build up skills and
increases organizational productivity.
(2) Authority and Responsibility: Authority means the right of a manager to give
commands and require conformity to those command. Responsibility must go
with authority and must match authority.
(3) Discipline: It implies that employees obey orders of management if it provides
good leadership.
(4) Unity of Command: Each employee should receive orders from one superior. It
eliminates conflicting lines of command.
32
(5) Unity of Direction: People engaged in a group of activities must have the same
objectives in one plan.
(6) Subordination of Individual interest to the general interest of one employee or a
group of employees must be subordinated to the overall interests of the
organization.
(7) Fair Remuneration for Effort: Since payment is an important motivator, it
should be a matter for manager‟s constant attention.
(8) Centralization or Decentralization: Whether an organizations should be
centralized or decentralized depends on the condition of the business and
quality or culture of its staff.
(9) The Scalar Chain: It refers to the line of authority, from superior to
subordinate, running from the top to the bottom of the organization. This
principle is necessary for unity of direction.
(10) Order: Both material order and social order are necessary for the proper and
efficient working of the organization.
(11) Equity: All employees should be treated with fairness, kindness and justice.
(12) Stability of Tenure: Stability of tenure among personnel is necessary for the
successful running of the undertaking.
(13) Initiative: All personnel in an organization must be allowed to show their
initiative in some way. This represents a great source of strength for business,
although it requires the manager to sacrifice some personal vanity.
(14) Esprit De Corps: A sense of Esprit De Corps is essential for management to
foster the morale of its employees.
Fayol used these principles to help explain organizational behaviour. He did not
believe that the principles of organization and administration were mutable laws. They
33
may, at best, serve as guidelines for managers in performing their duties. These
principles have to be flexible and adaptable to circumstances. The process of applying
them would be more of an art than an experience. (Polaindu, 2004: 299-300).
MANAGEMENT OF PUBLIC ORGANIZATIONS
The principal actors in the management of public corporations are the Board, the
General Manager (Managing Director, and the Secretary of the board
(Ezeani:2005:216).
The Board of Directors
The board of a public enterprise (organizations) plays a key role in its management.
The board of directors of public enterprise (organizations) are appointed by
government from within and outside government circles and their primary
responsibilities include:
(1) Formulation of policies for the public enterprises (organizations) within the
framework of broad government policies and priorities (Adamolekun 2004:38);
(2) Approval of public enterprises (organizations) budget, monitoring of its
performance, and protection of its management from encroachments of
sectional interests (Adamolekun, 2004:38). The performance of a public
enterprises (organizations) is, therefore, to a large extent, dependent on the
quality of its board.
Adamolekun (2004: 39) identified two type of boards of public enterprises
(organizations): the policy board and the executive board. The policy board is
composed mostly of persons from outside the organization with the chief executive as
34
the only internal board member. The policy board is more widespread than the
executive board. Most public enterprises (organizations) in Nigeria have policy
boards. The executive board is composed mostly of persons who are heads of major
units of the organization, with the chief executive as the chairman. There are normally
few outside members appointed to represent outside interests in the board. In 1950s,
the following public corporations were established in Nigeria; Nigerian Coal
Corporation, Electricity Corporation, Nigerian Cement Company Nkalagu, Nigerian
Railway Corporation, and Nigerian Ports Authority. All the corporations were
managed by boards. Since then more corporations have been established based on
national interest. (Inyang and Esu, 2009:65)
The Nigerian Railway Corporation is an example of a public enterprise that has an
executive board. The main advantage of executive board is that the body responsible
for policy is not separated from management. Again, the appointment of a few
outsiders to the board, apart from ensuring that perspectives from outside the
enterprise are considered, also constitutes a form of control (Adamolekun, 2004:39).
It is important to state that the size and composition of the boards vary from one
country to another as well as from one public enterprises (organizations) to another.
The size usually ranges from a minimum of five to a maximum of about twenty-five
members. “In general, the size of an enterprise‟s board depends on its scope and
strategic importance within the economy” (Adamolekun, 2004:39). Worthy of note is
lack of consensus on who should be appointed into the board. The tenure of the board
membership varies from one country to another, ranging from two to six years, and
can be renewed (Adamolekun, 2004:40).
35
The General Manager (or Managing Director)
The General Manager supervises the actual operational functions of the public
enterprises (organizations). He usually possesses professional knowledge of one or
more areas of the corporation‟s operations. The General Manager plays a vital role in
the success or failure of the public organizations. As Olisah et al cited in (Ezeani,
2005: 217 - 218) state, “He is the person who comes into direct touch with all the
corporation‟s staff, and he can take a wide range of decisions on his own initiative in
order to ensure that the corporation is functioning smoothly and effectively”. The
General Manager is usually assisted by several deputies and assistants who are in
charge of various divisions and sections of the public enterprises (organizations).
The Secretary of the Board
The Secretary of the Board records the board‟s transactions and decisions. Usually,
the Secretary is a non-managerial member of staff. In many public organizations, the
Secretary is a lawyer, who gives legal advice to the organization whenever necessary.
The Secretary, therefore, helps “to clear any doubts or misinterpretations about the
boundaries of authority, and function between all categories of officials of the
corporation” (Ezeani, 2005:218).
Management
For efficient management and effect administration, the enterprises are divided into
major departments with the General Manager as the Chief Executive of all
departments. These departments are as follows: administration, Accounts, personnel,
production, and Commercial Departments, among others. The heads of these
36
departments are known as managers. For instance, the head of the Production
department is known as the Production Manager (Ozor, 2004:135).
Administration Department
This is the centre of all activities as well as an indispensable unit of any organization.
It is concerned with the day-to-day routine administration of the organization. At the
head of the department is the administrative manager. The sections making up this
department include the following – general administration, public relations, security,
transport, etc.
i. General Administration: The general administration is concerned with the
general aspects of the administration such as mails – incoming and out-going
correspondence to and from the enterprises, etc. This section is headed by an
administrative officer.
ii. Security Section: The security section is charged with the responsibility of
ensuring the safety of the property of the enterprise. This section is headed by
the Chief Security Officer, responsible to the administrative manager.
However, experience has shown that this section does not effectively protect
the property of the enterprise as evidenced by incessant cases of missing
property, pilfering, and cannibalization, rampant in most public organizations
in Nigeria.
iii. Transport Section: This section is concerned with transporting all the materials
needed by the enterprises. – raw materials from outside to the enterprises or
finished products from the enterprises to the outside.
It is also responsible for the transportation of workers to and from their work
place. This section is headed by a transport officer who also reports to the
37
administrative manager. Its main personnel are drivers and their mates, in
addition to other technicians and mechanics.
iv. Public Relations Section/Unit: This section deals mainly with the public – the
distributors, suppliers, consumers, etc. it equally handles other public relations
matters that might affect the image of the enterprise. The department is headed
by a public relations officer. In most public enterprises (organizations) in
Nigeria, this unit, as the image maker for the entire organization is usually
directly attached to the office of the General Manager, or that of the
Administrative Manager who reports directly to the General Manager. It,
therefore, becomes the mouth-piece of the enterprise and publicizes its
activities to the outside world Ozor, 2004: 139-140).
Personnel Department
This department is headed by the Personnel Manager. The Personnel Manager is
responsible for the staff disposition of all departments. The functions of this
department include: recruitment, training/orientation, and placement of staff, as well
as staff development and welfare. It formulates well developed employee welfare
policies and programmes, and ensures their effective implementation. It also takes
care of intra-and inter-staff relations within and outside the organization.
The department also ensures that supervisors fully understand and effectively apply
personnel management policies in dealing with the workers under their supervision. It
further ensures that workers work under conducive environment; that the performance
or output of each staff is well evaluated; that workers are transferred, reassigned or
38
promoted and disciplined when and where necessary; that job specifications and role
assignment are made with effectiveness and efficiency as their benchmarks.
However, the Personnel Department in most public enterprises (organizations) in
Nigeria is not allowed free hand in the performance of these related functions. Most of
them, instead of following the universal procedures and processes of recruitment
which ensure that the best candidates are recruited, usually bow to extra-bureaucratic
pressures from the top on such important issues as recruitment, staff disposition, and
discipline, in public enterprise management. Since he who pays the piper dictates the
tune, the department has to succumb to such pressures from the top and accommodate
such recruitments irrespective of their unsuitability for the jobs in question. The result
is massive inefficiency which leads to the demise of many public enterprises in
Nigeria.
This type of imposition which makes it impossible for the personnel management
department to plan well and to discipline the workers, is a very dangerous
phenomenon since it is usually openly discussed that such a staff or the other, is Mr.
A‟s or Mr. B‟s candidate, and, therefore, a sacred cow not pervious to discipline.
So any attempt to discipline or call him/her to order would be frowned at by the
superior officer who sponsored him/her. Under such circumstances, it is productivity
and efficiency in the particular public enterprise and the general Nigerian economy
nation that have to pay the eventual prize in terms of colossal losses and inefficiency
(Ozor,2004:141).
39
Accounts Department
The accounts department is usually headed by a qualified accountant. This department
is responsible for all the financial transactions which include: accounting, revenue
collection, control, and disbursement of funds. The significant position of this
department in any organization cannot be overemphasized. This is illustrated by the
fact that effective financial management is necessary for the survival of any
organization, though, this is hardly the case in so many of the public enterprises
(organizations) in Nigeria. For instance, such public enterprises (organizations), like
the former National Electric Power Authority (NEPA), now Power Holding Company
of Nigeria (PHCN), under privatization are usually sluggish in the prompt collection
of money billed their customers. Some of the workers even collude with their
consumers to tamper with, and distort the metre readings, thereby defrauding the
authority of huge sums of potential earnings. The same is applicable to the Water
Corporations throughout the country. This leads to the unprofitability of these
organizations, hence the current poor state in which most of them find themselves
today, and the consequent call for their privatization. These fraudulent staff usually
hide under the principle that government businesses are not established to maximize
financial, but social, profits. They fail to realize that by their nefarious activities, they
run down their organizations with the result that they are unable to offer their public
the usually social services not to talk of maximizing such benefits for their
consumer/client citizens (Ozor, 2004:142).
40
Production/Engineering/Works Department
This department is headed by a production manager for enterprise that embarked upon
production, and chief engineer in the Works Department for the enterprises that offer
only services. The department is responsible for carrying out the actual production of
whatever the enterprise produces.
The works department is responsible for the maintenance and repair of equipment and
machines for both categories of the enterprise. For instance, an enterprises produces
goods/commodities such as cement, beer, or generates electric power (e.g Power
Holding Company) has a Production Department separate from a Works/Engineering
Department. Another enterprise that produces only services, such as a library board
may have only a Works Department to maintain/service the board‟s vehicle and
electrical works (Ozor, 2004: 142).
Marketing/Commercial Department
At the head of this department is the marketing manager for enterprises. Produces
goods and commodities, and the commercial manager for those that produce services
such as the radio states, water boards, rural electrification boards.
This department is responsible for the marketing of finished products including
services. It is also responsible for drawing up effective and efficient market strategy
and planning for the products.
The above, therefore, represent the general features of the organizational
administration of Public Enterprises in Nigeria. However, minor variations exist
depending on the nature of a particular enterprise. (Ozor, 2005; 143 – 147).
41
Finance and Profitability of Public Organizations in Nigeria
The financing of public organizations in Nigeria as in other parts of the world are
usually based on certain criteria or guidelines. Thus, certain considerate principles
should be borne in mind in the financing of public organizations are many and varied
but as (Ozor, 2004:148) succinctly summarized them, they should include the
following:
a. the laid-down national financial policies,
b. financial autonomy and flexibility,
c. consistent and coherent financial behaviour,
d. flexible governmental control, and
e. planned sectoral allocation of national resources.
ORGANOGRAM OF A TYPICAL PUBLIC ENTERPRISE IN NIGERIA
BOARD OF DIRECTORS
GENERAL MANAGER
Administration
Department
Personnel
Department
Account
Department
Production
Department
Marketing/Commercial
Department
General
Administration,
Public Relations,
Security,
Transport (Units)
Personnel
Department,
Recruitment, Staff
Disposition,
Development and
Training Welfare
(Units)
Account & Finance,
Revenue Collection,
Accounting,
Disbursement,
Reconciliation
(Units)
Production,
Packaging,
Ware-Housing
(Units).
General Sales,
Promotion of
Sales and
Advertisement
(Units)
42
By keeping with the laid-down national financial policies, it is meant that any activity
Within a country, be that in the private or in the public sector, should be in line with
the national economic policies. This criterion affects the public sector more in that its
finances and control are in government hands. As Ozor (2005: 148) posits.
… but it is even more imperative that public enterprises
should follow government guidelines because it is the
national government which has to guarantee external loans
for these enterprises, regulate the size and direction of
investments in both the public and private enterprises, and
give guidelines to these two sectors with regard to foreign
exchanges conservation during periods of balance of
payments difficulties
Financial autonomy and flexibility mean that, although the public organizations
should operate within the guidelines prescribed by the government, they should be
given some degree of freedom to make their internal financial decisions and
adjustments. Flexible governmental control implies that once major policies with
regard to pricing and profit making have been made by the government, the role of
government in implementing them should be very minimal. The rest should be left to
the individual Public Enterprise concerned without further governmental, Intervention.
Coherent and consistent financial behaviour means that the government should ensure
the avoidance of unnecessary duplication and disorder in the public sector. The
essence is to eliminate unnecessary wastes and thereby conserve scarce resources.
Finally, planned sectoral allocation of national resources means that the financing of
public organizations should be in accordance with the targets of the national planning
agencies and plan guidelines.
43
Financing of Public Organizations
Public organizations require adequate funding in order to be efficient and effective.
However, because of the strong linkage between finance and autonomy, funding
public organizations in Nigeria has always been a critical issue. (Ezeani 2005: 220 –
222), identified the main sources of funding, and the problems associated with each
source. There are two main sources of funding public organizations internally
generated revenues and secondly, through funds from external sources.
Internally Generated Revenue
These are revenues generated internally by public organizations from trading
surpluses, taxes and dividends, and earnings from sales of goods and services after
payment of employed capital. The amount of revenue derived internally by public
organizations is usually small due to the fact that they are not primarily established to
make profit. Furthermore, government‟s control over public organizations tariffs and
prices constrains their capacity to make profit (Adamolekun, 2004:42).
External Sources
External sources of funds to the public organizations comprise of funds from the
government, national financial institutions, local private entrepreneurs, and
international sources. These sources of funding, are discussed in detail (Ogden and
William, 2007:28).
Government Sources
Public organizations derive different sorts of funds from the government (Ogden and
William, 2007:28). They include:
44
1. Capitalization funds: These are funds provided by the government in order to
meet the needs of public enterprises (organizations), in terms of equipment,
plant, and running capital (Adamolekun, 2004:42);
2. Grants: public enterprises (organizations) receive various grants from the
government. Grants can be statutory or special. Special grants are given for
specific project or activities, whereas statutory grants also referred to as
subventions, are regular and mandatory;
3. Subsidies: These are funds given to public enterprises (organizations) to assist
them offset the losses they incurred due to the following reasons: operation of
uneconomic routs: government control of tariffs and prices, et cetera:
4. Loans given to them by the government to ease their financial management
problems or to assist them in specific projects or interventions that are of
special interest to governments (Adamolekun, 2004:42). The main
disadvantage of loans is that they are not a reliable source of revenue; and
5. Equity: This is a situation whereby “Government in its capacity as a
shareholder in a joint venture, contribute to increase the capital of the
enterprise or to increase its share” (Adamolekun, 2004:42).
National Financial Institutions
Public organizations derive their revenues from financial institutions in the form of
either equity or loans. For instance, financial institutions that have shares in mixed
economy enterprises. Public organizations have the government as the major share
holder, operating in collaboration with other private investors could decide to increase
their shares in the enterprises (Tokunboh, 1990:56).
45
Private Entrepreneurs
Private entrepreneurs are external sources of funding for public organizations. They
do this through equity (share holding) or contractor finance. Contractor financing is a
situation whereby a private entrepreneur funds a particular project for a public
organizations (e.g. a building) and is refunded later along with agreed interest
(Adamolekun, 2004:43).
International Sources of Funds
Public organizations also derive their external funding from international sources,
such as foreign private sector (financial institutions, as well as entrepreneurs),
international development agencies, and in some cases, foreign government
(Adamolekun, 2004:43).
In conclusion, public organizations rely mainly on external sources of funds than on
internal sources. Also in virtually every Sub Sahara African country, public
organizations rely mostly on government funding. Furthermore, they must get
government approval before they borrow from both the domestic and the international
capital market. The implication of heavy dependency on government for funding is
limited autonomy for the public organizations.
Performance of Public Organizations in Nigeria
A number of factors account for the poor performance of most public organizations in
Nigeria. For instance, the former President of Nigeria, Olusegun Obasanjo (2003:19)
observes :
Nigerians have long been feeling short-charged by the quality of public
service. Our public offices have too long been showcases for combined
evils of inefficiency and corruption, whilst being impediments for
effective implementation of government policies. Nigerians deserve
better and will ensure they get what is better
46
Similarly, Agagu (2008:243) asserts that “the public service which was seen as the
custodian of rules and regulations and the engine of the development had lost its
prestige and confidence. The aftermath of this is the invention of series of reforms
which, have led to privatization, downsizing and right sizing of the public service and
even minimizing the role of the public sector in the national life”. On the other hand,
the concept of privatization is old fashion. It was based on the notion of superior
private sector efficiency. Evidence from studies done by the International Monetary
Fund (IMF) (2004), shows that there is a consistent stream of empirical evidence
consistently and repeatedly showing that there are no systematic significant
differences between public and private operations in terms of efficiency or other
performance measures. The theory behind the assumption of private sector superiority
is also being shown to have serious flaws.
Secondly, the main reasons for the poor performance of public organizations in the
views of (Ezeani: 2005:224) are as follows:
i. Multiple and often contradictory objective of the enterprise
The social goals or obligations of most public organizations often conflict with their
economic objectives. For instance, some public organizations are expected to supply
goods below costs in an effort to subsidize the public, or hire workers to meet national
employment objectives even when they are already overstaffed. Consequently, they
become inefficient and ineffective.
ii. Excessive control and lack of autonomy
Public organization managers suffer from excessive control and interference in their
daily operations by supervising government departments. This often stifles managerial
47
initiatives and leads to costly operational inefficiencies and loss of accountability
(Obadan, 2000:11). In addition, they suffer from a civil service culture where chief
executive officers are administrators rather than enterprising business-men (Obadan,
2000:11).
iii. Excessive political interference
Public organization also suffer from frequent political interference. They are often
seen as instruments of political patronage by the government in power. This results in
overstaffing, poor choices of product and location, recruitment of mediocres et cetera.
iv. Absence of competitive environment
This leads to complacency on the part of the management of most Public Enterprises,
resulting in poor services delivery and inefficiency.
v. Corruption
Most public organizations, especially in the developing countries, such as Nigeria, are
seen as instruments for private wealth accumulation by their managers and political
appointees. Consequently, huge sums of money are often siphoned into private
accounts, leading to huge losses by the enterprises.
vi. Poor Infrastructures
The deteriorating state of infrastructures in most African countries also contributes to
the failure of Public organizations as they contribute to high cost of operation. In
Nigeria, for instance, water supply is unreliable, consequently, most railway lines are
in a deplorable state. In addition, the roads are in a bad state.
48
Control of Public Enterprises
Although public organizations enjoy substantial autonomy and freedom in the
management of their affairs, they are still subject to some control. The two main forms
of control are ministerial control and parliamentary control (Ezeani, 2005: 218).
Ministerial Control
Ministerial control of public organizations takes various forms: firstly, although the
public organizations enjoys a lot of autonomy and freedom in their daily operations,
they are under a controlling ministry, which supervises its policies and operations,
receives general public complaints about it, and take ultimate decision on all
important matters (Olisa, cited in (Ezeani, 2005: 218 219). Thus, a public
organizations must inform the ministry, and obtain its permission before it makes any
major changes, and embarks on any new important lines of operation especially;
where such major changes affect the public interest. For example, a public
corporation, such as the former National Electric Power Authority (NEPA), now
Power Holding Company of Nigeria (PHCN) used to obtain clearance from its
controlling ministry before it takes any major decision or makes any major changes on
almost all the major areas of its operation, such as personnel, increases in electricity
bills, introduction of new products into the markets, construction of purchase of
important technical installation, et cetera Olisa, cited in (Ezeani, 2005: 218). Many
critics of ministerial control have argued that too much control over the operations of
public organizations destroys the freedom of initiative and action which the public
organizations requires in order to achieve good results. The second form of ministerial
control is in the appointment of board members. The minister is politically responsible
for the appointment of board and can dissolve it if he is not satisfied with their
49
performance. Usually, the controlling ministry has a representative in the board. “The
official explains the government position on important issues, and ensures that the
corporation‟s affairs are managed along the conditions set out in the law which
established it” (Ezeani, 2005:219).
Finally, each ministry, at the end of the year, prepares an annual report which it
submits to the government through its supervising ministry. The ministry after
studying the reports asks questions where necessary, before submitting the report to
the government with its own comments. The minister also appoints auditors to audit
the account of public organizations and intervenes whenever there is a crisis, like
employees of a public organizations embarking on riots or strike or destruction of
public property (Ezeani, 2005:219).
Parliamentary Control
Apart from ministerial control, public organizations are ultimately accountable to
parliament through the ministers, who are the political head of specific government
ministers that oversee one or more public organizations. Parliamentary committees
maintain oversight over the PEs (Adamolekun, 2004:38): Parliamentary control takes
the following forms (Ujo, 2001:83).
(1) Control through annual report: A public organization usually submits a
comprehensive annual report of its activities to the parliament through the
Minister;
(2) Control through annual account: A public organization usually submits its
annual account for a given financial year to the parliament. Such annual
account and report are subject to debate in the parliament: and
50
(3) The Financial Committee of the House may summon the minister of a
particular public organization to explain or discuss issues concerning his
corporation.
Judicial Control
Many public organizations in Nigeria have, at one time or the other, been subjected to
judicial control by the government. As Olisa cited in (Ezeani, 2005:220), “From time
to time, a government sets up a commission of inquiry into the affairs of one or other
of its public corporation”. This action is prompted by public outcry about corruption,
mismanagement or incompetence in the company. A good example is a Tribunal of
Inquiry set up by the federal government in 1967 to investigate allegations of
corruption in the Nigerian Railway Corporation.
Problems of Public Organization in Nigeria: The Genesis of the Imperatives of
Privatization
Conflicting Objectives
There is a general opinion that most of the public organizations have failed to deliver
on the purposes for which they were established. Management ineffectiveness and
inefficiency have been advanced by practitioners and researchers of public
organizations as the bane of the Nigerian public sector (Tokunbo cited in Inyang and
Esu, 2009:65).
However, the performance of public organizations in Nigeria is not encoraging. This
means that public organizations in Nigeria have failed to perform the initial roles for
which they were established. Sticking at this point, (Otiji, 1987: 5-7) maintained, that:
The bane of the Nigeria Public Enterprises has been that of
undefined roles … It is confusing to play a welfare role
and at the same time run a profitable venture. The image
of the Public Enterprises is so bad that it has come to
51
symbolize inefficiency, red-tapism, lack of initiative, and
corruption; this may not be totally justified but it reflects
apparent dissatisfaction with public establishments
Implicit in Otiji‟s assertion is the fact that public organizations have failed to live up
to expectations and have therefore, become unproductive. However, many factors are
responsible for this failure on the part of these enterprises.
Inefficiency
Pointing to the public organizations inefficiency and the possible financial gains that
could accrue from their privatization, (Maghori quoted in Ozor, 2004:155) observed
that “privatization is one of the main elements of the Structural Adjustment
Programme; with it, government aims at lessening the dominance of unproductive
investments public sector, improving the sector‟s efficiency and thereby intensifying
the great potentials of the private sector”. Continuing, he noted that “most Nigerians
have been living witnesses to the very poor performance of the Nigerian public
organizations since independence; these enterprises have not only failed to justify the
government investments on, and subventions made to, them but have constituted huge
financial burden on the government”. Illustrating this point, he further pointed out that
at the federal level, there are over one hundred public organizations spread over
agriculture, mining, manufacture, transport, commerce and other service activities.
Federal government‟s investment in this sector was over N23 billion (twenty-three
billion naira) of which only N400 million (four hundred million naira) was received
52
annually. If subventions are incorporated, the rate of return becomes negative.
Consequently, Maghori poignantly averred that “this state of affairs from the
economic perspective ought to, and indeed should, be discouraged”. He, therefore,
concluded that privatization was the best option in order to rid the public enterprises
of inefficiency and unproductivity. He summarized the potential benefits of
privatization and commercialization of the public organizations in this flowing
argument:
The perceived advantage that will accrue to Nigeria as a
result of privatization exercise include – relieving
government of its financial burden, thus enabling it to
release funds to other areas that need such funds: enabling
companies so privatized to be managed effectively and
profitably; enhancing a more equitable distribution of
wealth that could lead to increased employment and
general economic activities due to expansion of many
sectors of the economy.
Unprofitability
Okongwu as cited in (Ozor, 2004:156), the then Minister of Budget and Planning,
observed that, “privatization would be efficient in resuscitating the wasting and
unprofitable public organizations in Nigerian”. He contended that they constituted a
financial drain on government resources and the policy aims and objectives of public
organizations, contrary to popular belief, they are not limited to the delivery of social
services but also include business-like operations which should compel them at least
to break even. Continuing, Okongwu argued that, “there is no doubt that our
government is overburdened and public organizations are in a state of disarray; thus,
the only viable option left is to privatize them…”
53
Implicit in the views of Okongwu is the fact that public organizations in Nigeria could
best be described as an epitome of inefficiency and unproductivity. Consequently, he
was of the opinion that they should be privatized, though, he maintained that some of
them that provided essential services should not be privatized, rather, they could be
commercialized
In his own view with regards to public organizations inefficiency and privatization are
the answer, Fermandes cited in (Ozor,2004:157) identified some factors responsible
for this situation and consequently proffered that privatization was the only viable
alternative. According to him, these include, “low levels of managerial and business
efficiency, low capacity utilization, the imbalance between input and output ratio”.
Accordingly, he recommended that “since an awareness of the causes of losses have
been realized, the enterprises should be privatized to eliminate the resultant
inefficiency”. In addition to his strong belief in privatization, as a panacea to Public
enterprises‟ (organizations) inefficiency, Fermandes quoted in (Ozor, 2004:157)
warned that:
Attempts to solve the situation of recurrent losses from
within the organization would not make any impact since
such attempts would be treated as imposition and are
likely to fail through lack of involvement and co-operation
at the operating levels of management
In other words, Fermandes was very much aware of the unproductivity of the public
organizations and also believes that the only solution to reverse this situation lay in
outright privatization which, according to him, to a greater degree, would inject the
business spirit into the enterprises and they would, therefore, make profits.
Reasoning along the same lines with others, Asiodu, (1987: 1) recalled that “by 1985,
government had sunk N23 billion (twenty-three billion naira), in pre-second foreign
exchange parity into the parastatals and agencies, and except the investments in the
54
commercial banks and joint ventures with oil companies, there is nothing they earn as
dividends”. He therefore, maintained that, „privatization should aim at achieving cost
effectiveness and efficiency”. Asiodu also allayed the fears that privatization of some
enterprises might lead to cut-throat price changes by stating that “government
intervention could put a ceiling on prices”. He cited that united States of America is an
example of a country where the government and representatives of utility companies
meet to fix prices.
On the other hand, Asiodu, (1987: 1) suggested that government-owned companies
that provide basic services such as the Nigerian National Petroleum Corporation,
Nigeria Railway Corporation, etc should not be privatized. According to him, “high
service charges that would follow their privatization might affect the quality of life of
individuals”.
Problems associated with public organizations are not only peculiar to Nigeria; they
are also common in other developing countries. Thus, Powell (1987:17-18)
summarized these problems in three groups. These are:
Group 1:
Human Resources
Lack of qualified workers and technicians
Difficulties in motivating management and employees (problems with
compensation policies).
Lack of Management skills
Weak management training policies
Employment on the basis of nepotism rather than competence.
Lack of flexibility in assigning employees to real needs
55
Group 2:
Enterprise objectives and relationships with government
Unclear, ambiguous and conflicting enterprise objectives and goals
Unclear accountability to government: one can rarely find evidence
of formal controls on enterprise performance
Difficulties in establishing how to evaluate enterprise performance: on
the basis of profits or social welfare?
Pressure on management from politicians
Failure by the state to determine priorities
Frequent restrictions on management autonomy.
Group 3:
Scarcity of resources (financial, human, etc).
Faculty coordination and planning, often due to the several levels
of hierarchy
Deficient pricing policies which often lead to bankruptcy and
massive government loans
Unclear definition of management responsibilities
Inaccurate planning by uniformed decision makers
A low level of efficiency and poor performance standards
Here in Nigeria, taking cognizance of the negative performance of public
organizations in Nigeria, a former Nigerian Head of State, Muhammadu Buhari, set up
a study group on the performance of public organizations in Nigeria. It was
Chairmanned by Ali AI-Hakim(Ozor,2004:157). The group in its report submitted to
56
the Federal government on the 29th of November, 1984, summarized problems of
these enterprises as:
Vague and conflicting objectives, inadequate autonomy,
inflexibility in decision-making process, inappropriate
capital structure, under-utilization of asses, absence of
good credit control system and the inability to collect
debts, lack of adequate control measures, ineffective and
inefficient management. poor information and accounting
systems, absence of financial operational performance
targets and overstaffing.
Prior to this study group on the performance of public organizations in Nigeria, a
Presidential Commission on parastatals in general, was set up in 1981.This
commission categorized the various government parastatals in Nigeria and made
recommendations on their management, staffing and financing, generally. This earlier
commission was the Onosode presidential Commission on Parastatals, so named after
its chairman, Gamaliel Onosode, a veteran management guru in the Nigeria private
sector. (Ozor, 2005: 157 – 158).
Public Organization Reforms
Since 1980s, some developed and developing countries have embarked on reform of
public organizations starting with Britain, which embarked on comprehension
privatization programme, and New Zealand, which combined privatization with
commercialization. public organizations reformers in these countries seek to achieve a
combination of the following objectives (Adamolekun, 2004:45):
i) To ensure profitability by avoiding trading losses.
ii) To avoid liquidity crises and rising debts.
iii) To restructure and rationalize the public sector in order to remove the
dominance of unproductive investments.
57
iv) To prevent public organizations from being an ever-increasing burden on the
government budget and to facilitate their access to capital markets.
v) To ensure positive returns on investments in restructured organizations and
improve the managerial and operational performance of those organizations
that will remain in the public sector.
vi) To initiate the process of the gradual cession of private sector of public
organizations that, by the nature of their operations and other socio-economic
factors, it best performed by the private sector.
vii) To create a favourable investment climate for both local and foreign investors.
viii) To provide institutional arrangement and operational guidelines that would
ensure that the gains of the reform program are sustained in the future.
ix) To encourage wider share ownership, especially among the lower income
groups.
Forms of Public Enterprise Reform
There are many forms of PE reforms, but the most common ones are
commercialization and privatization reform (Ezeani, 2005:226)
Commercialization in Nigeria
Commercialization reform is aimed at making the public organizations more efficient
by allowing them to adopt business methods in their operation. Commercialization
could be partial or full. This categorization has done based on privatization and
commercialization decree, 1988 (Mbanefo, 1989:19). Fully commercialized public
organizations are entirely self-sufficient and profit oriented. They are expected to
declare annual profits to the government. In addition, they can raise their capital and
58
operation expenses from the capital market (Adamolekun, 2004:45). In contrast,
partially commercialized public organizations are expected at least, to break even, and
some to declare some profits. This implies that public organizations so designated will
be expected to some revenue to cover their operating expenditures. However the
government may consider giving them capital grants to finance their capital projects.
Commercialization in the Nigerian context means “government adopting a policy on
allowing its public organizations to operate, if not on a purely commercial, that is,
profit making basis, to at least, be in a position to meet their running” costs (Ozor,
2004: 164). According to Technical Committee on Privatization and
Commercialization (TCPC), “Commercialization is the reorganization of enterprises
wholly or partially owned by the government in which such commercialized
enterprises shall operate as profit making ventures without government subvention
(Ozor, 2004:192).
Commercialization reform is aimed at making the public organizations more efficient
by allowing them to adopt business methods in their operation. Commercialization
could be partial or full. This categorization has done based on privatization and
commercialization decree, 1988 (Mbanefo, 1989:19). Fully commercialized public
organizations are entirely self-sufficient and profit oriented. They are expected to
declare annual profits to the government. In addition, they can raise their capital and
operation expenses from the capital market (Adamolekun, 2004:45). In contrast,
partially commercialized public organizations are expected at least, to break even, and
some to declare some profits. This implies that public organizations so designated will
be expected to some revenue to cover their operating expenditures. However the
government may consider giving them capital grants to finance their capital projects.
59
Examples of Partial Commercialized Organizations
1. Nigeria Railway Corporation
2. Nigeria Airport Authority
3. Nigeria Security Printing and Minting Limited
4. All the river Basins Development Authorities
5. Ajaokuta Steel Company Limited
6. Delta Steel Company Limited
7. Federal Housing Authority
8. Kainji Lake National Park
9. Federal Radio Corporation of Nigeria (FRCN)
10. Nigeria Television Authority
Some Examples of Fully Commercialized Organizations
1. Nigerian National Petroleum Corporation
2. Nigerian Telecommunications limited
3. Associated Ones Mining Company Limited
4. Nigerian Mining Corporation
5. Nigerian Coal Corporation
6. Nigerian Insurance Corporation of Nigeria
7. Nigeria Re-Insurance Corporation
8. National Properties Limited
9. Nigerian Ports Authority
10. African Re-Insurance Corporation
Source: (Ozor, 2004:198).
60
Privatization in Nigeria
This is “the partial or total transfer of ownership of a public enterprise (organization)
to the private sector” (Adamolekun (2004:46). Full privatization entails government‟s
total surrender of its ownership, whereas in partial privatization, government still
holds some shares (sometimes majority shares) in public organizations. The public
organizations that are partially privatized, are usually the ones the government
considers strategic, and wants to keep under close supervision.
This is “the partial or total transfer of ownership of a public enterprise (organization)
to the private sector” (Adamolekun (2004:46). Full privatization entails government‟s
total surrender of its ownership, whereas in partial privatization, government still
holds some shares (sometimes majority shares) in the public enterprises. The public
enterprises that are partially privatized are usually the ones the government considers
strategic, and wants to keep under close supervision.
Privatization in Nigeria was formally introduced by the privatization and
commercialization Act of 1988, which later set up the Technical Committee on
Privatization and Commercialization (TCPC) chaired by Dr. Hai Zayyad with a
mandate to privatize 111 public organizations and commercialize 34 others. In 1993,
88 public organizations were privatized out of the 111 enterprises listed in the decree,
the TCPC concluded its assignment and submitted a final report. Based on the
recommendation of the TCPC, the federal military government promulgated Bureau
of Public Enterprises Act of 1993, which repealed the 1988 Act and set up the Bureau
for public Enterprises (BPE) to implement the privatization program in Nigeria. In
1999, the federal government enacted the public enterprise (privatization and
61
commercialization) Act, which created the national Council Privatization chaired by
the Vice President, Alhaji Atiku Abubakar (Nwoye, 1997:5).
The functions of the council include:
making policies on privatization and commercialization;
determining the modalities for privatization and advising the government
accordingly;
determining the timing of privatization for particular enterprises;
ensuring that commercialized public enterprises are managed in accordance
with sound commercial principals and prudent financial practices; and
interfacing between the public enterprise and the supervising ministries in order
to endure effective monitoring and safeguarding of the managerial autonomy of
the public enterprises.
The 1999 Act also established the Bureau of Public Enterprises (BPE) as the
secretariat of the National Council on Privatization (Nwoye, 1997:5). The functions of
the bureau include among others to do the following:
implement the council‟s policies on privatization and commercialization;
prepare public enterprises approved by the council for privatization and
commercialization;
advise the council on capital restructuring needs on enterprises to be privatized;
ensure financial discipline and accountability of commercialized enterprises;
make recommendations to the council in the appointment of consultants,
advisers, investment bank issuing houses, stockbrokers, solicitors, trustees,
62
accountants, and other professionals required for purpose of either privatization
or commercialization; and
ensure the success of privatization and commercialization implementation
through monitoring evaluation.
The subsequent exercise brought with it controversies that are still raging on. Western
countries, and particular IMF and the World Bank, have been blamed for forcing the
privatization of public services and national resources in Africa as a condition for
development assistance (Nwoye, 1995:120), They are accused of telling impoverished
countries to turn their public services over to private owners and to sell off their oil,
gas, minerals, electric, telecommunication, transport, and water companies, which are
also said to be conditions for debt relief. Many African countries are neck deep in debt
and begging for debt forgiveness. It is said that Nigeria has a debt burden of $32.3
billion, where servicing is estimated to gulp as much as $2.91 billion in 2003.
Objectives of Privatization
It is possible that some of these popular and critical perceptions and assertions about
privatization are accurate. There is no doubt that mistakes have been made in the past
and that promises have not been kept for instance the incidence of interference from
political office holders. However, it may turn out to be a mistake to judge privatization
from a limited perspective. The set of objectives privatization programs are meant to
achieve is broad and involved; it has many fundamental components that can act
together for the enhancement of microeconomic efficiency. There are, indeed, some
critical long run objectives to be achieved through privatization (Nwoye, 1997:5).
These include the following:
Increasing productivity efficiency;
63
Strengthening the role of the private sector in the economy, which will
guarantee employment and higher capacity utilization;
Improving the financial health of public services with savings from suspended
subsidies;
Freeing more resources for allocation to other needy areas of governmental
activities (for example, finances that would have been applied for subsidies
should now be channeled to the development of communities); and
Reducing corruption because interference by politicians will cease.
Bias against Privatization
Give the fact that the initial impetus for privatization in Africa came from creditor
institutions, especially IMF and the World Bank, as part of the push for structural
adjustment; many believed that there must be hidden agenda in the form of economic
exploitation (Nwoye, 1997:5). It is principally the conditionality that was attached to
privatization vis-à-vis debt relief and financial assistance that provided resentment
from the public views especially labor, which views privatization as creditors;
initiative. As in some of the other African countries resentment is intensified because
a good number of the larger enterprises being privatized are bought over foreign by
interests (Agagu: 2008:246). According to Nwoye (1997:6) there are several
arguments against privatization.
Several of the Arguments against Privatization are as follows
64
Rising Prices – Opponents fear that the private sector will exploit consumers
where there is monopoly or oligopoly power such as by raising the prices of
goods.
Creating Poverty – At the heart of the criticism of privatization is the
perception that it has not being fair-hurting the poor and the vulnerable work
force, while benefiting the rich, the powerful, the privileged – thereby
perpetrating poverty.
Breaking of Union – Workers dismissed as a result of privatization have great
difficulty finding other work; the large number of people out of jobs is forced
to accept jobs with lower pay, less security, fewer benefits. They, therefore,
believe that the aims of privatization are to reduce labor costs numbers, and to
break union power.
Corruption – There is this argument that event if privatization contributes to
improved efficiency financial performance, it has a negative effect on the
distribution of wealth perhaps arising from corruption. Corruption is the single
most destructive factor responsible for the pitiable state of affair in many
developing countries. It distorts the economy through waste and misallocation
of resources creates need for external assistance. Transparency International
has for a long time decried the consequences of corruption and has identified
acute corruption in many developing countries. Example, in 1997, World Bank
(1997) Development report, rated Nigeria as the most corrupt country on earth
followed by Pakistan and Kenya. Some misguided Nigerians have argued thus
“…after all, corruption is everywhere, including industrialized countries”. It is
65
true that corruption is a worldwide phenomenon, and so are industrial
development and technological advancement. Why is it then that when
industrialized countries are pushing for technological invention, African
countries are busy expanding only the frontiers of corruption and poverty-prone
ventures?
Public Enterprises Should Stay – There is this strong belief that privatization is
not necessary. public enterprise need not run at a loss; all they require is good
managers, less political interference.
Exploitation by Capitalist Countries – Privatization is seen as an imposition by
foreign capitalists‟ agencies like the IMF and the World Bank; therefore,
privatization must be meant to exploit developing countries.
Privatization Is Foreign – Some critics have argued that privatization is neo-
colonialism since policy is being pushed by International Monetary Fund,
World Bank, and their agencies. It is not an indigenous idea; therefore, it will
not work.
Labour‟s Demands for Job Protection – Right from the onset, the most publicly
persistently organized opposition of privatization in Nigeria has some from the
labour movement. There always has been strikes and counterstrikes against any
decision to privatize a government agency. Sometimes workers have succeeded
in blocking or slowing down the privatization of specific enterprises. On other
cases the government simply has brushed aside the labour opposition leaving a
legacy of anger on political tension. What is obvious is that workers are
66
reacting against threatened jobs or the possibility that benefits might be
jeopardized under new management.
2.2 HYPOTHESES
According to Ofuebe (2002:85), “Hypothesis is a statement which specifies two or
more variables and the direction of the relation between or among them”. Obasi
(1999:30), defines it as “a tentative statement which is open to confirmation or
rejection when exposed (subjected) to empirical verification. In the words of Obi
(2005:19), “hypothesis is a tentative proposition which needs to be proven or
disproved”.
In this light, I intend to employ the following hypotheses to serve as a guide to the
study:
1. Excessive interferences from the government stifles the activities of Scientific
Equipment Development Institute-Enugu.
2. Lack of motivation results in Negative performance of workers in Scientific
Equipment Development Institute-Enugu.
3. Poor management leads to unproductivity of Scientific Equipment
Development Institute-Enugu.
2.3 OPERATIONALISATION OF KEY CONCEPTS
An Operational definition “is a specification of the activities, of a researcher in measuring a
variable or in manipulating it” Kerlinger (1977) quoted in Obasi (1999:26-27). The
assignment of empirically observable, verifiable and measurable values to a variable
transforms that variable into an operational definition (Obasi, 1999:26). In other words,
67
operational definition, assigns meaning to variable by specifying the activities or operations
necessary to measure that variable.
Some key concepts were employed in this study. These are:
Management: Management can be defined as the ability coordinate and control
resources (human and material), in order to reach objectives and achieve results. It
involves developing people through behaviour changing and making things happen.
Public Organization: An organization is a system established to discharge specific
functions and responsibilities in an efficient and effective manner. Public organization
is an agency of the government that is established to discharge specific functions and
responsibilities in an efficient and effective manner.
Goals: Goals are targets set out to be achieved upon it‟s attainment, indicates that
something had been a success.
In the course of this research, when a public organization achieves her goals; its an
indication that such an organization is successful.
Demands: “Demands” are the claims or expectations of individuals and groups. In
this study, these claims and expectations of the citizenry are made on public
organizations to satisfy their various interests and needs.
Supports: “Supports” represents the willingness of the individuals or groups. In this
study, this willingness indicates the acceptance of the value allocations which are in
response to the demands on public organizations made by the people.
SEDI-E- Scientific Equipment Development Institute, Enugu.
68
2.4 RESEARCH METHODOLOGY
The importance of research methodology cannot be underestimated in any research
undertaken, This is where the researcher presents the type of research design that is
used in the research. According to Kerlinger quoted in (Obasi, 1999:106), “research
design is an overall scheme of research indicating what a research will do from
writing the hypotheses and operational paradigm of the operation of the variables”. He
further posited that research design has two fundamental proposes.
i. It provides answers to research questions.
ii. It control variance that is, it enables the investigator get answers to the research
questions as validity objectives; accurately and economically as possible and
help to control the experimental extraneous and error variance.
The worth of any research is tied to the method of research adopted and the kind of
data collected. Obasi (1999:49), grouped research design into survey research and
experimental design. In this study, I intend to employ survey research design.
2.4.1 SURVEY RESEARCH
Survey research refers to a process of eliciting data from a target population through
either questionnaire or interview instruments, and subjecting such data to statistical
analysis for the purpose of drawing conclusions (Obasi, 1999: 132). The reason for the
adoption of the survey research design is to obtain information to either refute or
support the reality of the hypothesis under examination which seeks to ascertain
whether management problems of public organizations are government induced and
management induced. In this breath, Ofuebe (2002:9), posited that “the researcher
usually needs information obtained from the survey as evidence to support or refute
the existence of each hypothetical relationship being examined”.
69
Many sample survey pursue one or more of the following objectives:
1. Exploration or clarification of dimension of a problem.
2. Description of groups, individuals or phenomena.
3. Causal explanation
4. Hypotheses testing
5. Evaluation
6. Prediction or forecasting future events
7. And the development of social indicators.
Source. (Obi, 2005:64).
In this chapter, the following research design would be employed to give credence to
the assumption that management problems of public organizations are government
induced and management induced.
These are:
i. Location of the Study
ii. Population of the Study
iii. Sample Size/Sampling Technique
iv. Research Instrument
v. Method of Data Collection
vi. Method of Data Analysis
70
2.4.2 DATA GATHERING INSTRUMENT
An instrument of data is very important in any statistical investigation. It enhances the
quality of the research study. Its importance need not be overemphasized.
In this study, I made use of both primary and secondary sources of data collection.
These are the questionnaire, textbooks, newspapers, magazines and journals.
Primary Source - The Questionnaire
In the words of Obasi (1999: 144 – 145),
a questionnaire is a data gathering instrument in which respondents are
given standardized or uniform questions to complete in written form. The
distinguishing features are uniformity of questions, and the written (type
or printed) nature of the questionnaire and their responses.
In this study, I employed the use of both structured and unstructured (Open-ended)
questions. The questions were designed to determine whether management, problems
of public organizations in Nigeria are government induced and management induced.
Hence the questionnaire is divided into three sections. Section A, contains the
personal particulars of respondents.
These are: the name; sex; marital status; age; educational qualification and job.
Section B, contains optional questions which require respondents filling any option
deemed appropriate to him or her. Respondents were provided with predetermined
responses from which to choose; such as agree, strongly agree, disagree, strongly
disagree, do not know on the test items.
Section b contains the unstructured questions (open-ended questions). This allows
respondents to provide answers according to their own understanding of, and thinking,
on the question. Here, respondents have the choice of what to say, how to begin to say
71
it and when to stop saying it. This type of questionnaire is useful for gaining deeper
knowledge of the problem being studied (Obasi, 1999: 151).
The personal interview
The personal interview in the view of Nachimias cited in Obi (2005:18) “is a face to
face inter-personal role situation in which on interviewer asks respondents questions
designed to obtain answers pertinent to the research hypothesis”.
I employed the use of schedule structured interview. Hence, there was uniformity of
questions and in the sequence of their arrangement. The following staffs of Scientific
Equipment Development Institute, Enugu were interviewed:
i) Personal Assistant to the Managing Director/Chief Executive.
ii) A senior staff
iii) A junior staff
Secondary Sources – documents (textbooks, newspapers, magazines, journals)
Generally speaking documents “refer” to any written material (whether hand-written,
typed, or printed) that was already in existence, which was produced for some other
purpose than the benefit of the investigator (Nwana 1981:177). In the same vein,
Obasi (1999:172), defined documents as “published and unpublished materials on
activities of public and private organizations, and found mainly in libraries, archives
and in such public and private organizations. These documents are usually documents
produced for reasons such as historical documentation of the nature, dynamics and
trends of events. Adequate use of textbooks, newspapers, magazines and Journals
were consulted and cited in this research.
72
2.4.3.Test of reliability of instrument
The reliability of a measuring instrument is defined as the ability of the instrument to
measure consistently the phenomenon. It is designed to measure (Ofuebe, 2002: 72).
Furthermore, reliability is the stability, dependability and predictability of a measuring
instrument. According to Osuala (2005:53), “a reliable measure is the one that is
consistent. And be because it gives a stable measure of a variable, a reliable measure
is precise”. The quality of measuring instruments is what determines the validity and
reliability of such instruments (Ejigbo and Achor, 2006:31).
To test for reliability of the instruments, a test was conducted at two different time periods,
A and B on a sample of 100 respondents. 100 questionnaires were administered to this
sample, which were correctly filled and retuned. The results were kept and recorded. Then at
another time period B. (not too long from period A about 3 weeks), the same test was
conducted on the same; sample and its results were correlated with the earlier test results.
There was a high coefficient of the correlation between the two results. This implies that the
results of the tests are valid and reliable.
2.4.4 Test of Validity of Instrument
Undoubtedly, the first question a research asks about any measuring instrument he
devices and/or uses is: “Does the instrument measure what it is suppose to measure?”
The validity of a measuring instrument is defined as the property of a measure that
allows the research to say that the instrument measures what he says it measures.
(Ofuebe, 2002:66).
I employed content or face validity to test the instrument I used. In this type of test,
“it is essential that items should be included on the test that reflect the abilities and
achievements of the persons taking the test or their personal experience and
73
professional background” (Ofuebe, 2002:67). Validity of the measuring instrument
was ensured by the close supervision and professional advice of my supervisor on the
measuring instruments.
Furthermore, validity of the measuring instrument was achieved by ensuring that the
empirical measure adequately reflects the meaning of the concept under consideration.
2.4.5 LOCATION OF THE STUDY
The location of the study is the “Scientific Equipment Development Institute”,
situated in Akwuke Enugu State. This organization is federal owned and has
objectives of Federal public organizations. Bearing in mind the risks and costs
involved in studying the management of public organizations in Nigeria, this research
is focused on SEDI-E as it is popularly called.
2.4.6 POPULATION OF THE STUDY
The population of the study is SEDI-E, staff. This encompasses staff of both senior
and junior cadre in the organization. Scientific Equipment Development Institute has
various units which are categorized into five (5) major departments. These are
Administrative department. Accounting department, Production department, Service
department and Marketing department. On the whole, a population size of 320 was
mapped out for the research: field data (2008). Questionnaire would be administered
on the staff. This is to obtain basic information required for the study since these
workers have acquired practical experience and are in a position to give information
as regards the organization.
74
Table 2.4.1
The Distribution Table below shows the number of department and staff of SEDI-E
S/N Departments Strata Total Population Percentages
1
2
3
4
5
Administrative Department
Accounting Department
Production Department
Service Department
Marketing Department
Stratum I
Stratum 2
Stratum 3
Stratum 4
Stratum 5
33
15
226
23
23
10.3
4.69
70.63
7.19
7.19
Total 320 100
2.4.7 SAMPLE SIZE AND SAMPLING TECHNIQUE
Sample Size
In the words of Obi (2005:72), “Because of the difficulty in studying a whole
population in any given research project, a portion of the population is selected. The
act of deciding or choosing what section of the population will constitute the data of a
research project, is termed sampling. The section of the population selected fro the
research is called SAMPLE”.
In this research the sample size was calculated and determined based on the whole
staff that constitutes the population of the study. This is the 320 staff earmarked for
the research.
The yard formula (n = N/1 + N 2) was adopted on the population size of 320 to
obtain the sample size of the workers. The explanation of the formula is given below:
Where n = Sample size
N = Population size
= Allowable error (df)
I = Constant
75
177
777.177
8.1
320
8.01
320
)0025.0(3201
320
)05.0(3201
320
)(1
2
2
n
n
n
n
n
n
N
Nn
From the above calculation, the sample size therefore used for the study is 177
respondents from the “Scientific Equipment Development Institute – Enugu”.
Sample size is what forms the basis for inference about the whole population of a
study (Fisher and Yates, 1975: 56). Therefore in this study, 177 is the sample size of
the population.
2.4.8 Sampling Technique
According to Obi (2005:73), “A sample is said to be representative if the analysis
made in sampling units produced results equivalent to those that can be obtained had
the entire population been analyzed”. Sample technique takes care of whom to include
and whom not to include in a sample. However, the most important thing about
sample technique is that it should as much as possible, represent the population from
which it is drawn.
76
The sampling techniques adopted in this study is stratified random sampling
technique. This is aimed at ensuring that the different groups of a population are
adequately represented in the sample so that, level of accuracy in estimating
parameters is increased. Stratified sampling ensures proportional representation of
groups in a population (Obi, 2005:75). According to Egbule and Okobia (2000:97),
Stratified sampling simply involves the division of the
population that a researcher wishes to study into subsets or
substrata or subgroups, which are known to have special
characteristics relating to, the variable being investigated
In applying the principle of stratified random sampling technique, the following steps
were taken the first was to categorize the departments into five strata. Thus the
administration department has stratum one, accounting department stratum two,
production department stratum three, service department stratum four and marketing
department stratum five.
The second step after the categorization was to determine the sample size for each
stratum. The sample size for each stratum was calculated based on Sam Kumar‟s
proportional Allocation formula
P(A) = Nh(n)
Where P(A) = Proportion Allowed
Nh = Population of each stratum
n = Overall Sample size
N = Overall targeted population
Using substitution method in the above formals, we have the sample size for stratum
1.
P(A) = 33(177)
320
77
= 18.25
= 18.3
Sample Size for Stratum 2
P(A) = 15(177)
320
= 8.29
= 8.3
Sample Size for Stratum 3
P(A) = 226(177)
320
= 125
Sample Size for Stratum 4
P(A) = 23(177)
320
= 12.72
= 12.7
Sample Size for Stratum 5
P(A) = 23(177)
320
= 12.72
= 12.7
78
The table 2.4.2 shows a complete tabulation of the sample size for the strata (that is, 5
departments of SEDI-E)
Strata Total
Population
% of Population Sample Size % of Sample
Size
Stratum I
Stratum 2
Stratum 3
Stratum 4
Stratum 5
33
15
226
23
23
10.3
4.69
70.63
7.19
1.19
18.3
8.3
125
12.7
12.7
10.33
4.69
70.62
7.18
7.18
Total 320 100 177 100
Obi (2005:75), observed that, “the selection of each proportion from a stratum, of the
random sampling technique could be applied after stratification of the population in
large”.
On the whole, the real sample size used for the study from each local government was
selected from the total population through a random sampling process. This
synchronizes with the words of Egbule and Okobia (2001:97), “that the researcher
will then take a random sample of the elements or people in each stratum or subgroup.
This implies that each stratum or subgroup has its own sample or elements or people
representing it.
From the foregoing, the balloting method was used to determine who should be
included in the sample for each local government.
79
2.4.9 METHOD OF DATA COLLECTION
Data collection often referred to by scholars/researchers as the fieldwork of their
project is the process of gathering information for the purpose of proving or
disproving a research hypothesis or answering research questions (Obi 2005: 57). Data
for this research undertaken were gathered through questionnaire and documents,
(primary and secondary sources). A total of three hundred and fifty (350)
questionnaires, were printed. Out of the 350 questionnaires, 320 were distributed to
both senior and junior staff of the “Scientific Equipment Development Institute -
Enugu” making up the total population of the study. The questionnaires were
distributed according to the number of staff in each department of the organization.
Thus, thirty three (33) were distributed to the Administrative department, fifteen (15)
to Accounting department, two hundred and twenty six (226) to Production
department, twenty three (23) to Service department and lastly twenty three (23) to
Marketing department. Direct collection of the filled questionnaires, was the method
of control adopted. Three weeks was set aside for the collection of the filled
questionnaires. On the whole, two hundred and seventy (2870), were correctly filled
and returned.
2.5 METHOD OF DATA ANALYSIS
The need for clarity in the presentation of data can only be fully appreciated when one
recognizes that a properly generated data which is free from the common problems of
unreliability and inaccuracy, can still not serve a useful purpose if poorly analyzed and
presented (Obasi 1999: 178).
80
Descriptive statistical tool precisely “percentage” was
applied in analyzing the data obtained through the
questionnaire. According to Obikeze quoted in (Obasi,
1999: 197), “descriptive statistical tools are statistical
techniques that help us to summarize and describe our data
in such a way that we would understand better their
characteristics, similarities, variation, trends et cetera.
2.6 THEORETICAL FRAMEWORK
A theoretical framework is a device for adopting or applying the assumptions,
postulations, and principles of a theory in the description and analysis of a research
problem. It is that dynamic explanatory devise for linking the problem of a study to a
relevant theory. It is indeed an indispensable explanatory device in project execution
(Obasi,1999:53).
Research use theoretical framework to describe the relationship of the problem.
Researchers could use, adopt or adapt a theory or a combination of theories for their
work (Ofuebe;2002:85).
The theoretical framework that will be adopted for this study is the System theory and
goal setting theory of motivation. A system is essentially an assemblage of things
interconnected or interdependent, so as to form a complex unity” (Koontz et al,
1982:70). Most systems, interact with and are influenced by their environment
(political, social, economic, et cetera), and in turn, influence its environment. An
important element in the systems approach is the emphasis on input-output analysis.
Easton (1965:10) summarizes the functioning of a political system employing the
concept of INPUT, CONVERSION and Output. “Inputs” are made up of DEMANDS
AND SUPPORT of the people in the political system. DEMANDS are expression of
desire that values be allocated in a particular way, and SUPPORTS are expression of
willingness to accept particular value allocations or process by which the allocations
are made.
81
In the light of the above, Public Organizations may be seen as a response of the
political system to the demands, expectations and aspirations of the citizens. The
citizen‟s demand is the rationale for the emergence of Public Organizations. People
demand for goods and services which Public Organizations processes within the
governmental administration. The results at the end of the processing stage are
collectively regarded as the outputs.
Public Organizations is a System, made up of Sub-systems. In business, the system
concept is mostly used to refer to the interrelationship between the functional areas of
management. These functional areas include Account department, Administrative
department, Production department, Marketing department and Human resources
department. Non of these departments are indispensable of the other. Though they
perform different functions, they network for effective and efficient functioning of the
Organization for the attainment of Organizational goals. Hence, the failure of one
department affects the entire system.
The roles of the manager, is very crucial in the management of Public Organizations.
The manager ensures the well coordination and harmonization of the various
departments (Sub-Systems). His failure to do so will result in the failure of the system.
PUBLIC ORGANIZATION SYSTEM INPUT-OUTPUT MATRIX
Input
(1) Demand (road, water, health Outputs
services) (goods and services)
(2) Support (obedience to law, payment
of taxes, rates)
Feedback
Environment
(Political, economic, social, legal, ethical, technological)
Conversion
Process
82
The success of any system depends on the relationship between the System and its
Sub-System. Public Organizations are seen as parts, the parts relate to the whole and
each part makes certain contribution towards the survival of the whole. Through this,
success is achieved through cooperation by all parts. Worthy of note is that a system
needs support from its environment in order to survive. Thus, it receives inputs of
support such as payment of taxes, obedience to rules and regulations et cetera.(Ezeani,
2005: 93). Equally important is the fact that consequent upon the outputs, some new
inputs are generated and fed back into the system through the “feedback mechanism”.
These are, again, processed and converted to output. Thus, the systems approach is
cyclical. The System theory requires, that Public administrators plan, they have no
choice, but to take into account, environmental factors such as Political, Social,
Economic, Technological, Ethnic, et cetera factors. (Ezeani 2005:94). The system
approach encourages managers to view the organization both as a whole and as part of
a larger environment. The idea is that any part of an organization‟s activities affects
all other parts (Mullins, 2007:55). In other words, it requires Public administrators to
see organizational problems and operations as a network of interrelated elements with
daily interaction between environments, external and internal. Secondly, the goal
setting theory of motivation was put forward by Lock, quoted in (Cole, 2002:103).
This theory suggests that, it is the goal that an individual is aiming for which
motivates, rather than just the satisfaction of attaining it. Locke‟s view is that what a
person values or desires determines the goals he sets for himself, but that what
actually drives him (motivates him) are the goals themselves.
83
Locke‟s own researches indicated that individual performance was better when people
had been set specific goals of a challenging or difficult nature, and when they received
feedback on their performance. This approach clearly had implications for the practice
of management by objectives, or target setting, which relies for its success on the
mutual agreement of specific goals between a manager and his subordinate.
Applying this theory to public organizations, performance standards are antecedent
situations in the employee‟s work environment. Goals are performance levels which
individuals and organizations have agreed upon as performance standards (Locke,
1976 quoted in Cole, 2002:103).
Philosophically, the goal setting theory is based on the assumption that people have
conscious goal that energized them and direct their thought and behaviour towards one
end (Bateman and Zeithaml, 1993). People obtained the positions they are today
(whether in profession, politics, athletics or community service) because they were
goal-oriented. Many organizations have been turned into empires and conglomerates
because they are/or were goal-oriented. A general goal setting model has four
components: Goals, motivation process that improves performance (Locke, 1981,
quoted in Inyang 2008). A general goal setting model has four components: goal,
motivation, improved performance and feedback on performance. Goals motivate by
directing employee‟s attention, encouraging effort, encouraging persistence and
fostering goal attainment strategies and action plan, for there to be a performance
measurement, there must first be a goal setting (Inyang, 2008: 100).
Lastly, the importance of theory cannot be underestimated. It provides an explanation
for observed events and relationships and helps to predict the occurrence of
84
unobserved events and relationships on the basis of explanatory principles embodied
in the theory (Selltiz, et al quoted in Obasi, 1999:41).
85
CHAPTER THREE
3.0 BACKGROUND INFORMATION OF “SCIENTIFIC EQUIPMENT
DEVELOPMENT INSTITUTE”, ENUGU (SEDI-E).
3.1 BRIEF HISTORY OF SEDI-E
Scientific Equipment Development institute (formerly Federal science Equipment
Manufacturing Centre) Enugu; is one of the outfits of the National Agency for Science
and Engineering Infrastructure (NASEN) under the Federal Ministry of Science and
Technology. Initially, the project was initiated by the Federal Executive Council
Directive in 1978, which mandated the Federal Ministry of Education to provide funds
for setting up the Scientific Equipment Manufacturing Centre o serve the country
under the technical guidance and leadership of late Prof. Gordian Ezekwe. He was the
first chief Executive of the institute. He initiated the execution of the project from
factory design and construction to equipment installation and staff training. The first
phase of the project was commissioned on 11th
May 1992 while the second phase is
yet to commence.
Source: Scientific Equipment Development Institute (2008: 3-5).
Scientific equipment Development Institute, Enugu (SEDI-E) has a product range
which mainly aims at covering science equipment requirements as well as other
general needs of the primary and secondary institutions. Notably among the products
is a special primary science kit developed for the primary schools. Currently, National
agency for Science and Engineering Infrastructure (NASENI) in partnership with
United Nations Economic Scientific and Cultural Organization (UNESCO) have
86
determined to place the kit in each primary school in the country. SEDI-E has
manufactured equipment such as transformer trainers, Power units, Mobile Internet
Units, Thermo-well Thermometers, Bioreactor, 3 phase measuring panels and others
to meet the pressing need for these equipment in tertiary institutions and industrial
sectors.
Source: Scientific Equipment Development Institute (2008: 3-5).
All indication confirms that this progressive trend will continue. The setting up of the
unit for machine design and machine building has expanded the activities of the
institute to accommodate the local construction of some industrial machines for small
medium enterprises (SMEs) and other private and public sector establishments.
Before the commissioning of the first phase of the project in 1992, the institute and
perfected the technology for the manufacture of more than 230 items of science
equipment ranging form thermometer, potentiometer to liebig condensers, rheostats
among others. In terms of quality, the institute‟s products are made to international
standards Organization (ISO) and this practice is basic, consistent and simple. It is a
matter of policy. Scientific Equipment Development institute (2008: 3-5).
OBJECTIVES OF SEDI-E
In compliance with the intentions of the Federal Government, the institutes main
objectives in very broad terms may be summarized as follows:
a. To demonstrative the possibility of local manufacture, of a variety of
needed science equipment at affordable prices for the benefit of educational,
industrial and research establishments.
87
b. To design, develop and manufacture other items of scientific equipment
related to the needs of medical, aviation, navigation and surveying sectors
of the economy.
c. To engage generally in projects related to local design/manufacture of
various industrial machines and equipment for private sector application
(especially for encouragement/support of the SMEs)
d. To help address problems of equipment maintenance and local sourcing
(especially local manufacture) of essential spare parts serve the needs of the
educational institutions, hospitals, research institute and the private sector
industries.
e. To engage in useful techno-scientific literacy level of the populace essential
for rapid techno-economic progress. (SEDI-E, Information Brochure, 2008)
SEDI-E ACHIEVEMENTS
Inspite of SEDI-E‟ the organization has recorded some of the following achievements:
Between 1992 and now, the institute has increased it‟s product range from 230 to
more than 370 items including Telescopes, Microscopes, Potentiometers,
Hydrometers, Medical Stethoscopes, student Transformer Trainers, among others.
The institute has also built a number of industrial machines including lens grinding
machines, a wood turning lathe machine, industrial ball mining machine for solid
mineral pulverization, bioreactor, inroseal road mending machine and others
(www.sedi.com).
The institute assists the federal government in achieving its maintenance culture
programme, by addressing the problems of equipment maintenance and local sourcing
88
of essential spare parts to serve the needs of Educational Institutions, Hospitals,
Research Institutes and Private Sector Industries.
The Institute currently assists the small and Medium scale enterprises in production of
spare parts for their machines and et celera (www.sedi.com).
3.2 LOCATION OF SEDI-E
The location of the study is the “Scientific Equipment Development institute”, situated
in Akwuke Enugu State. The organization is about 6kms away from the government
house Enugu. The organization is federal owned and has objectives of federal public
organizations. Field data (2008).
3.3 POPULATION OF SEDI-E
The population of the study are SEDI-E, staff, this encompasses staff of both senior
an junior cadre in the organization. Scientific Equipment Development institute has
various units which are categorized into five (5) major departments. These are
Administrative department, Accounting Department, Production Department, Service
Department and Marketing Department. On the whole, a population of 320 staff both
senior and junior, work in SEDI-E. field data (2008)
3.4 TEMPERATURE REGION OF SEDI-E
Scientific Equipment Development institute, Enugu popularly called (SEDI-E), has a
mild temperature region. The temperature ranges between 29oC-30
oC.
89
CHAPTER FOUR
4.0 DATA PRESENTATION ANALSIS AND FINDINDS
4.1. DATA PRESENTATION AND TESTING OF HYPOTHESIS 1
To test whether excessive interference from the government stifles the activities of
SEDI – E.
Our concern, here, is to find out the effect of government interference in
SEDI – E.
4.2 DATA PRESENTATION
Table 4.1: Have you heard about the reform/change programmes of the
government?
Response Frequency Percentage
Yes 115 64.97
No 48 27.12
Do not know 14 7.91
Total 177 100
SOURCE – FIELD WORK 2008
Table 4.1 above is made to show whether SEDI-E workers are aware of the reform/change
programme of the government.
Table 4.2: Have your organizations benefited from the reform programmes.
Response Frequency Percentage
Agree 77 43.50
Strongly Agree 45 25.42
Disagree 30 16.95
Strongly Disagree 18 10.17
Do not know 7 3.95
Total 177 100
SOURCE – FIELD WORK 2008
Table 4.2 show that SEDI-E benefited from the reform programme of the government.
90
Table 4.3: Has the individual staff of your organization benefited from the
reform programme of the government?
Response Frequency Percentage
Agree 44 24.86
Strongly Agree 32 18.08
Disagree 76 42.94
Strongly Disagree 19 10.73
Do not know 6 3.39
Total 177 100
SOURCE – FIELD WORK 2008
Table 4.3 is made to show whether the staff of SED-E benefited from the reform
programme of the government.
Table 4.4: Are the reform/change programme of the government in your
organization people’s participatory?
Response Frequency Percentage
Agree 42 23.73
Strongly Agree 34 19.21
Disagree 76 42.94
Strongly Disagree 19 10.73
Do not know 6 3.39
Total 177 100
SOURCE – FIELD WORK 2008.
Table 4.4 is showing whether the reform programme of the government in SED-E is people‟s
participatory or not.
Table 4.5: People say that public organizations in Nigeria are not encouraging?
Response Frequency Percentage
Agree 78 44.07
Strongly Agree 44 24.86
Disagree 30 16.95
Strongly Disagree 14 7.91
91
Do not know 11 6.21
Total 177 100
SOURCE – FIELD WORK 2008.
Table 4.5 above is showing the views of respondents as to whether public
organizations in Nigeria are encouraging or not.
Table 4.6: Government interference do not provide a friendly environment for
SEDI-E to fully develop and operate in its full capacity.
Response Frequency Percentage
Agree 79 44.63
Strongly Agree 41 23.16
Disagree 32 18.08
Strongly Disagree 15 8.47
Do not know 10 5.65
Total 177 100
SOURCE – FIELD WORK 2008.
Table 4.6 above show that government interference do not provide a
friendly environment for SEDI-E to fully develop and operate in its full
capacity.
Table 4.7: Lack of funding in SEDI-E, causes delay in their output
Response Frequency Percentage
Agree 81 45.76
Strongly Agree 42 23.73
Disagree 19 10.73
Strongly Disagree 20 11.30
92
Do not know 15 8.48
Total 177 100
SOURCE – FIELD WORK 2008
Table 4.7 above shows that lack of funding in SEDI-E, cases delay in their
output.
4.2 DATA PRESENTATION TESTING OF HYPOTHESIS II
The hypothesis to be tested here is that lack of motivation results in negative
performance of workers in SEDI-E.
Table 4.8: There will be positive performance by SEDI-E workers if adequately
motivated
Response Frequency Percentage
Agree 80 45.20
Strongly Agree 46 25.99
Disagree 30 16.95
Strongly Disagree 17 9.60
Do not know 4 2.26
Total 177 100
SOURCE – FIELD WORK 2008
Table 4.8 show that there will be positive performance by SEDI-E workers if
adequately motivated
Table 4.9: Managerial behavioural attitude must be such that motivate
employees of SEDI-E to perform at their peak level
Response Frequency Percentage
Agree 100 56.50
Strongly Agree 45 25.42
Disagree 18 10.17
93
Strongly Disagree 12 6.78
Do not know 2 1.13
Total 177 100
SOURCE – FIELD WORK 2008
Table 4.9 is showing that managerial behavioural attitude must be such
that motivate employees of SEDI-E to perform at this peak level.
Table 4.10: Achievement of organizational goals in SEDI-E does not lie with
employees alone.
Response Frequency Percentage
Agree 89 50.28
Strongly Agree 47 26.55
Disagree 28 15.82
Strongly Disagree 12 6.78
Do not know 1 0.56
Total 177 100
SOURCE – FIELD WORK 2008
Table 4.10 is showing that the achievement of organizational goals in SEDI-E does
not lie with employees alone.
Table 4.11: Employees of SEDI-E should be included in the planning process of
their organization
Response Frequency Percentage
94
Agree 48 27.12
Strongly Agree 98 55.37
Disagree 22 12.43
Strongly Disagree 9 5.08
Do Not Know - -
Total 177 100
SOURCE – FIELD WORK 2008
Table 4.11 is showing that there is need to include the employees of SEDI-
E in the planning process of their organization.
4.3 DATA PRESENTATION TESTING OF HYPOTHESIS III AND
DISCUSSION.
The hypothesis to be tested here is that poor management levels to unproductively
SEDI-E.
Table 4.12: Managers in the public organization such as SEDI-E do not require
professionalism in the discharge of their duties.
Response Frequency Percentage
Agree 50 28.25
Strongly Agree 6 3.39
Disagree 96 54.24
Strongly Disagree 20 11.30
Do not know 5 2.82
Total 177 100
SOURCE – FIELD WORK 2008
The above table 4.12 is made to show whether managers in the public organizational
such as SEDI-E require professionalism or not
Table 4.13: Public organizations such as SEDI-E will become productive when
superiors and subordinates work in collaboration.
95
Response Frequency Percentage
Agree 94 53.11
Strongly Agree 52 29.38
Disagree 20 11.30
Strongly Disagree 8 4.52
Do not know 3 1.69
Total 177 100
SOURCE – FIELD WORK 2008
Table 4.13 shows what happens when superiors subordinates works in
collaboration.
Table 4.14: Poor management stifles growth and performance of SEDI-E
Response Frequency Percentage
Agree 97 54.80
Strongly Agree 20 11.30
Disagree 52 29.38
Strongly Disagree 8 4.52
Do not know - -
Total 177 100
SOURCE – FIELD WORK 2008
Table 4.14 shows how poor management stifles growth and performance of SEDI-E
Table 4.15: Delay in the implementation process of SEDI-E impinges upon the
attainment of its organizational goals.
Response Frequency Percentage
Agree 70 39.55
Strongly Agree 72 40.68
Disagree 20 11.30
Strongly Disagree 10 5.65
Do not know 5 2.0
96
Total 177 100
SOURCE – FIELD WORK 2008
Table 4.15 shows how delay in the implementation process of SEDI-E impinges
upon the attainment of its organizational goals
Testing of hypothesis I and Discussion Tables 4.1 – 4.7
Our aim here is to test whether excessive interference from the government stifles the
activities of SEDI-E.
In table 4.1, respondents were required to state whether they are acquainted with the
reform or change programme of the government. From the table, 115 staff of SEDI-E
representing 64.97% of respondents maintained that they have heard about the reform
programme of the government. On the other hand, 27.12% of respondents said “No”
meaning they have not heard about any reform programme of the government. A few
staff representing 7.91% argued that they do not know anything about the reform
programme of the government going on in the organization. From table 4.2 the
respondents were made to show whether SEDI-E as a public organization benefited
from the reform programme of the government.
The table show 77 staff of the organization representing 43.50% of respondent opined
that the organization benefited from the reform programme of the government as they
agreed with the question made to solicit information about whether their organization
benefited from government reform programme or not. In the same manner, 45 staff of
SEDI-E representing 25.42% of respondents strongly agreed with the issue as to
whether SEDI-E benefited from governments reform programme or not. 16.95%
disagreed while 10.17% strongly disagreed. Only 3.95% of respondents maintained
they do not know whether, the organization benefited or not. The discrepancies
97
denote that while a greater competency of the staff of SEDI-E is familiar with the
daily operations of public organizations some are not. This is why some argued
against having knowledge as to whether the organization (SEDI-E) benefited or not
from government reform programme. In table 4.3, respondents were required to state
whether they directed benefited from the reform programme of the government. 44
staff representing 24.86% of respondents affirmed agree while 32 staff representing
18.08% of respondents said they strongly agree. However 76 staff representing
42.94% of respondents strongly disagreed. This denotes that SEDI-E staff do not feel
the effect of the government reform programme on their personal lives. On the other
hand 19 staff representing 10.73% of the respondents strongly disagree that they
benefit from the reform programme of the government. Lastly 6 staff representing
3.39% of the respondents maintained they do not know whether, they benefit or not.
From table 4.4 the researcher endeavour to ascertain from the respondents whether the
reform programmes of the government are people‟s participatory or not. From the
table 42 staff representing 23.73% of respondents affirmed „agree‟ while 34 staff
representing 19.21% of respondents said they “strongly agree”. However, 76 staff of
SEDI-E forming 42.94% of respondents aptly disagreed. This disagreement indicated
to a very large extent they workers of the organization are insulated from participation
in the reform change programme of the government. The above assertion further
denotes that decisions are imposed on the workers by the government.
Meanwhile, while 10.73% of respondents strongly disagreed with the question 3.39%
of respondents equally claimed they are neutral. From table 4.5 the respondents were
made to show whether the notion that public organizations in Nigeria are not
encouraging is true or not. From the table 44.07% of respondents asserted, “agree”
98
meaning that the assertion that public organizations in Nigeria are not encouraging is
real. 24.86% of respondents are in strong agreement with the notion while 16.95% of
respondents disagreed with the assertion. Also, 7.91% of respondents showed strong
disagreement with the assertion that public organizations in Nigeria are not
encouraging. Meanwhile, 6.21% of respondents maintained they do not know
whether public organizations in Nigeria are encouraging or not.
In table 4.6 that is the central idea of this section, the researches endeavoured to
ascertain whether or not government interference provide a friendly environment for
SEDI-E to fully develop and operate in its full capacity. 79 staff of SEDI-E making
up 44.63% of respondents agreed that government interference in the affairs of SEDI-
E do not provide a friendly environment for SEDI-E to full develop and operate in full
capacity. 23.16% of respondents are strongly in agreement with the view above
18.08% of respondents disagreed.
However, while 8.47% of the respondents showed strong disagreement with the view
that government interference into the affairs of SEDI-E do not provide a friendly
environment for SEDI-E to fully turn up and operate in full capacity, 5.65% claimed
they do not know the effect of government interference into the affairs of SEDI-E. On
the whole, the majority support is denotative of the fact that government interference
into public organizations has negative effects on the operations of the public
organization in Nigeria.
In table 4.7, the researcher endeavoured to ascertain whether lack of funding in SEDI-
E, causes delay in their output. 81 staff representing 45.76% of the respondents
affirmed agree, 42 staff representing 23.73% of the respondents strongly agreed.
However 19 staff representing 10.73% of the respondents disagreed. 20 staff
99
representing 11.30% of the respondents strongly disagreed while 15 staff, representing
8.48% of the respondents are neutral. This discrepancies indicate that while a greater
percentage of SEDI-E are knowledgeable about the cause of day in their output which
largely stems from lack of funding by the government. Some are not while a few
components of the staff are neutral.
Testing of hypothesis II and Discussion Tables 4.8 – 4.11
Our aim here is to test whether lack of motivation results in negative performance of
workers in SEDI-E. Table 4.8 is made to show that there will be positive performance
by public servants if adequately motivated. The table showed that 80 staff of SEDI-E
forming 45.20% of respondents agreed with the notion that they will be perform
positively if adequately motivated. Obviously, 46 staff making up 25.99% of
respondents affirmed, “Strongly agree” while 30 staff also representing 16.95% of
respondents disagreed with the notion.
Also, 9.60% of respondents showed strong disagreement as 2.26% of respondents
claimed they do not know whether the motivation could lead to their positive
performance. The analysis of this table showed that with adequate motivation of
workers, performance would improve. The 16.95% disagreement means that apart
from motivation through monetary inducement other factors such as the psychological
state of the workers leads to positive performance by public servants.
Table 4.9 is made to ascertain that managerial behavioural attitude must be such that
motivate employees of SEDI-E to perform at this peak level. From the table 100 staff
of the organization representing 56.50% said “agree” indicating that managerial
behavioural attitude is important in the motivation of employees to perform at their
peak level. This shows the importance of managerial behavioural attitude towards
100
workers performance in public organizations. Meanwhile, 45 staff of SEDI-E forming
25.42% of respondents are in strong agreement with the statement that managerial
behavioural attitude must be such that motivate employees to perform at their peak
level. 10.17% of respondents disagreed while 6.78% of respondents strongly
disagreed with the notion that managerial behavioural attitude must be such that
motivate employees to perform at their peak level. However, 1.13% stays away from
making any comment as they claimed they have no idea about the question on ground.
Table 4.10 is made to portray the fact that achievement of organizational goals in SEDI-E
does not lie with employees alone. The table showed that 89 staff of SEDI-E making up
50.28% of total respondents agreed with the notion above and this means that achievement of
organizational goals in SEDI-E does not lie with employees alone. It means that for
SEDI-E to achieve their set target both management and employees will have to work
together. From the table, 26.55% of the respondents maintained strong agreement with
the notion expressed above while 28 staff of SEDI-E representing 15.82% of
respondents disagreed as 6.78% showed strong disagreement. Only 0.56% of
respondents maintained they do not know whether achievement of organizational goal
depends solely on employees.
In table 4.11 we endeavoured to discover if it would be necessary for employees of
SEDI-E to be included in the planning process of their organizations. Here 27.12% of
total respondents asserted “agree” meaning they are in support of the inclusion of
employees in the planning process of the public organizations. In the same way, 98
staff of SEDI-E making up 55.37% of total respondents manifested strong agreement
with the notion that employees be included in the planning process of their
organization. The strong agreement therefore, means that better decision are made if
101
the employees are made to participate in the planning process of their organization.
However, 22 staff of the organization ably representing 12.43% of total respondents
contradicted the view while staff of SEDI-E representing 5.08 percent of respondents
showed strong disagreement inevitably attempting to discredit the view that
employees be included in the planning process of their organization. None indicated
no knowledge of the issue on ground.
Testing of hypothesis III and Discussion, Table 4.12 – 4.15
Our aim in this sphere is to test whether poor management stifles growth and
performance of SEDI-E.
Table 4.12 seeks to ascertain whether in the public organization managers requires
professionalism in the discharge of their duty. The table showed that 50 staff of the
organization representing 28.25% of respondents agreed that really managers do
require professionalism in the discharge of this duties while 6 staff of SEDI-E
representing 3.39% of the respondents showed strong agreement. It means that the
above category of staff do not value the idea of better training better output.
Meanwhile, 96 staff of the organization forming a substantial relic of respondents,
54.24% precisely disagreed with the notion that managers do not require
professionalism in the discharge of their duties. In the same way 20 staff forming
11.30% of total respondents showed strong disagreement. Only 5 staff representing
2.82% of total respondents claimed they do not know whether managers require
professionalism or not. It is therefore, important for us to note that the large support
of respondents is an indication that professionalism is basically a requirement for
managers performance of their duties.
102
From table 4.13 we solicited to know whether public organizations such as SEDI-E
will become productive when super-ordinates and sub-ordinates, work in
collaboration. The table showed that 94 staff of the organization representing 53.11%
of respondents agreed that when super-ordinate and subordinates work in
collaboration the organization will become productive. This view was supported by 52
staff of SEDI-E making up 29.38% of total respondents who strongly agreed with the
assertion. 20 staff representing 11.30% of respondents disagreed with the assertion
while 8 staff representing 4.52% of total respondents indicated strong disagreement.
Only 3 staff of the organization making up 1.69% said they do not know whether
public organization such as SEDI-E will become productive when super-ordinates and
subordinates work in collaboration.
In table 4.14, we present the fact that poor management stifles growth and
performance of SEDI-E. The table showed that 97 staff of SEDI-E forming 54.80% of
the people sampled agreed that poor management stifles growth and performance of
SEDI-E. In the same way 11.30% of respondents said they strongly agreed with the
view that poor management surely stifles the growth and performance of SEDI-E. The
above assertion is however, opposed by 29.38% of respondents who claimed that poor
management alone, does not stifles growth and performance of SEDI-E and 4.52%
who strongly disagreed with the nation. The disagreement could be as a result of
other factors in the system, which may be government policy or government
interference into the affairs of the public organization. None indicated no knowledge
of the issue on ground.
However, we discovered that since majority of respondents are of the view that poor
management stifles growth and performance of SEDI-E, in the notion, therefore, hold.
103
The implication is that poor management stifles growth and performance in public
organization.
In table 4.15, the researcher endeavoured to ascertain the notion that delay in the
implementation process of SEDI-E, impinges upon the attainment of its organizational
goals. The table showed that 70 staff of SEDI-E forming 39.55% of the people
affirmed agreed. Similarly, 72 staff of SEDI-E, forming 40.68% sampled strongly
agree. On the other hand, 20 staff of SEDI-E representing 11.305 opposed the nation.
10 staff of SEDI-E forming 5.65% of the respondents strongly disagreed. While only
5 staff forming 2.82% of the respondents claimed they do not know. The disagreement
could be as a result of the fact that these percentages of staff do not actually know the
cause of the impediment upon the attainment of their organizational goals.
However, since a greater percentage affirmed that delay in implementation process
causes impediment upon the attainment of their organizational goals, the nation holds
true.
4.3 Findings
From the analysis we therefore, present the following as the result of the hypothesis
tested from the tables. From table 4.1 – 4.7 we find that:-
4.1 In table 4.1 government reform/change programme as applicable to the
organization SEDI-E is not novel to the staff. This explaining why majority of
the staff presently 64.97% of respondents affirmed yes. This affirmation gives
credence to the words of Ukpata and Olukotun (2008:87), “so far, Nigeria has
witnessed a lot of reforms in recent times in its organizational development”.
Some of these reforms are:
1. Banking reforms
104
2. Insurance reforms
3. The civil service reforms
4. Privatization reforms
In table 4.2 we observed too that the organization SEDI-E benefited from the
government reform programmes meant to strengthen the organization. For example, in
1996, the institute enjoyed government sponsorship in implementing their Equipment
Refurbishing Project through the Raw Materials Research Development Council (R M
R D C). Source: ( SEDI-E information brochure,2003:7)
On the other hand, table 4.3 denotes that while majority support denoted that the
organization benefited from the reform programme of the government the individual
staff did not as 42.94% of the total respondents showed. This tells us that perhaps the
individual may not be the focus of the government but the organization as a whole.
This confirms the words of Ukpata S. and Olukotun (2008:85), they commented that
“any change process of reforms in a given society that does not address the problem of
quality of life of the people would be seen as a mere distraction of the countries entire
system”.
.Our finding on table 4.4 showed that the workers of SEDI-E are insulated from
participating in the reform/change programme of the government. This therefore,
means that decisions are imposed from above on the workers of SEDI-E. Hence when
workers are excluded from participating in programmes like this they tend to exhibit
negative attitude to work. This supports the view of Eze (2006:150), thus;
In spite of the reviews and reforms, which we have seen; the civil service in
Nigeria has not been ideal. Traditions have eaten deep into the system,
preventing attitudinal change so that negative attitude to work is common
among the workforce
105
In table 4.5 we find that public organization in Nigeria are not encouraging. Those
holding the view constitute 44.07% from the table. This reasons may not only be
management or employee induced but other factors which could be either the corrupt
tendencies of our leaders in the public sector or frequent government interferences in
the affairs of public organizations. Thus, Obasanjo, O. (2003:19), Observes that;
Nigerians have too long been feeling short-changed by the quality of public
service. Our public offices have too long been showcases for combined evils
of inefficiency and corruption, whilst being impediments for effective
implementation of government polices. Nigerians deserve better. And will
ensure they get what is better
Similarly, Agagu (2008:243) asserts that “the public service which was seen as the
custodian of rules and regulations and the engine of the development had lost its
prestige and confidence…”
From table 4.6, we find that government interference do not provide a friendly
environment for SEDI-E to fully develop and operate in its full capacity. This is seen
in the agreement shown by 44.63% of respondents who were sampled to establish this
simple fact. In the same vein 23.16% of the respondents added impetus to the fact that
government interference into the affairs of SEDI-E do not provide a favourable
atmosphere for development and operation in full capacity. Suleimanu, E. (2007:5)
supported this assertion by commenting that, “government can become a hindrance
and constraint to organizational performance through constant policy changes”.
Similarly, Obadan (2000:11) comments,
Public organization managers suffer from excessive control and interference in
their daily operations by supervising government departments. This often
stifles managerial initiatives and leads to costly operational inefficiencies and
loss of accountability
106
In table 4.7, we discovered that SEDI-E will have better output and meet their set
targets if they get adequate release of fund from the government. Hence, it will bring
a favourable atmosphere for the organization to grow and perform better. Suleimanu,
2007:5) gives credence to this assertion by commenting that;
When resources are available, they make it possible for organizations to
perform. When outputs are not growing, organizations become worried and
could lay blame on employee attitude to work…
Also, apart from adequate release of funds by the government, other factors such as
workers, foremen, supervisors, managers, directors, suppliers; have to be integrated to
actualize outputs (Suleimanu,2007:5).
We also, find from table 4.8 that if public servants are adequately motivated there will
be positive performance. Motivation therefore is seen as an important aspect of work
performance among public servants. 45.20% of respondents proves this so. In this
regard, Cole (2002:95) observes
Motivation…. attempts to explain why people behave in the ways they
do… the practice of management is crucial to management‟s success.
People are the greatest single asset available to an enterprise. Infact an
organization is people
Similarly in the view of McGregor (quoted in Cole 2002:104), “… people are
motivated more by self-fulfillment needs than by any others”.
In table 4.9, we observed that managerial behavioural attitude must focus on making
employees to perform at their peak level. The implication of the above is that management
plays a very major role in making employees to either improve on performance or reduce
performance. The argument here is that if workers are well motivated, they will put serious
effort in the performance of their duty and conversely. In giving credence to this assertion,
107
Sulemainu(2007:8),comments:
Managerial behavioural attitudes must be purely professional in order to
influence and exploit the needed resources to facilitate production of
optimal levels
We also find in table 4.10 that achievement of organizational goal in public
organizations is not dependent upon employees alone. This explains why 50.28% of
respondents agree with the notion that achievement of organizational goal in public
organization does not lie with employees alone. The meaning is that in public
organizational such as SEDI-E the combined efforts of management and employee are
needed for real achievement. This also implies that all managers in public
organizations should be involved and act coaches in empowering employees to
perform (malone,1997:8).
Meanwhile, our observation from table 4.11 showed that employees in public
organization are important relics in the planning process of public organizations. The
table showed that 55.37% of respondents aptly supported the fact that employees in
SEDI-E should be included in the planning process of their organization. This way,
better decisions are made for the good of the organization. This also implies that
employees need to be empowered in public organization. This will enable them be in
a position to make quick decision and respond quickly to an changes in the
environment (Onogri, 2009:9).
Another major finding from the tables is found in table 4.12 where 54.24% of
respondents absolutely disagreed with the assertion that managers in public
organizations such as SEDI-E do not require professionalism, in the discharge of their
108
duties. This disagreement means that a manager requires professionalism, to enable
them function well and discharge their duties efficiently. The efficiency on SEDI-E
finds its tape root in the above argument. Lack of professionalism among managers in
Nigeria public organizations, is one of the factors that impede positive performance in
these organizations. Thus, (Inyang, 2008:50), comments that:
“It is more worrisome in the developing economies of the world where managers lack
the requisite managerial skills in management. It is one thing to formulate individual
and organizational objectives and other thing is to achieve the set targets, sustain task-
level and later improve on performance”. Similarly, Sulemainu (2007:6) opines that,
“the management of the organization is expected to allow the manager to exhibit his
professional ability in significant ways”.
In table 4.13 we further found from the field that public organizations such as
SEDI-E will become productive when super-ordinates and sub-ordinates works
in collaboration. This argument spanned from the fact that in unity and co-
operation much could be achieved. This assertion is given credence to by
53.11% of workers of SEDI-E. In supporting this view, Hamish (2004: 25)
opines that;
management should ensure that there is good leadership at all levels of
the organization. Good leadership is crucial for the success of … and
committed to work towards achieving the vision created by the
management
Similarly Ongori (2009:14) observes “leaders must mentor their employees so that
they have good chance of being successful in decisions they make”.
109
We also found during the course of our research in table 4.14, that poor management
stifles growth and performance of SEDI-E. This reference could be caused by many
factors such as lack of motivation for the employees, delay in the payment of staff
salary, delay in the promotion of staff et cetra. Lack of clear vision on the part of
management is another hindrance towards performance in public organizations.
However, Esu (quoted in Inyang, 2008a: 98), observes that, “most public sector
businesses failed because of ineffective and inefficient performance management
system.”
Lastly, we discovered during the course of our research in table 4.15 that delay in the
implementation process of SEDI-E, impinges upon the attainment of its organizational
goals. This could be caused by the bureaucratic nature of public organizations,
indolent and corrupt managers and directors. Hence the assertion that “Public
Organization in Nigeria are not encouraging”.
In giving credence to the above assertion, Ezeani (2005: 224) observes that:
absence of competitive environment, leads to complacency on the
part of the management of most public enterprises, resulting in poor
services delivery and inefficiency.
Conclusively, this section, of the paper has justifiably X-rayed important issues on the
management of public organizations and finds that many factors are contributory to
improvement in public organizations. Some of these factors include but not restricted
to the following:-
i) When management and employees work in collaboration, there will be
improvement on performance.
110
ii) Employees inclusion in the planning process of public organizations enhances
better decision making.
iii) Professionalism is required for job improvement and management efficiency
iv) The behavioural attitude of management should be professional and focused
to facilitate performance at optimal level
v) Government interference into the affairs of public organizations tend to hinder
performance.
vi) Motivation of orkers leads to efficiency and productivity
111
CHAPTER FIVE
5.0 SUMMARY,CONCLUSION AND RECOMMMENDATIONS
5.1 SUMMARY
This study has exhaustively examined the management of public organizations in
Nigeria. The sole aim of establishing public organizations was to serve as a vehicle
for accelerating socio-economic development of the country. From the fundamental
analysis of the research, I asserted that public organizations in Nigeria are not
encouraging, they perform below standard and are poorly managed. This menace is
largely attributed to political interventions on the part of the government and
management problems on the part of managers of public organizations.
Conceptual and theoretical foundations were laid to explore the various views of
literature on the concept of public organizations and its management in Nigeria .The
exploration encompasses classification and justification of public organizations.
Some of justifications for public organizations include; to enable the state to pursue
objectives relating to social equity , which the market ignore; the need to ensure
government control over “strategic” sectors of the economic; to be a source of
revenue to the state; as a means employment creation and lastly as a veritable
instrument of plan implementation et cetera.
On the other hand the concept of management of public organizations was explored.
Functions of the principal actors(the board of directors, the general manager and the
secretary of the board); were discussed. In the same vein, functions of the various
departments were x-rayed. These departments include administrative department,
personnel department, account department, production
112
department/engineering/works department and marketing/commercial department
.The main sources of financing public organizations were identified and discussed. It
was observed that public organizations raise their funds from internal sources. These
could be trading surpluses, taxes and dividends, earning from sales of goods and
services, et cetera Similarly, external sources of funds for public organizations
which comprise the government, national financial institutions, local private
entrepreneur and international sources were identified
The study equally examined the performance of public organizations. It noted that
their The main reasons identified for this disappointing performance include:
1. multiple and often contradictory objectives of the organizations.
2. excessive control/lack of autonomy
3. excessive political interference
4. corruption
5. poor infrastructures.
The study noted that public organizations, enjoy substantial autonomy and freedom
in the management of their affairs. However, these organizations are still subject to
some control.
Problems of public organizations were taken cognizance of.. There is a general
opinion that most of public organizations have failed to deliver on the purposes for
which they were established. This research also dealt with the issue of public
organization reforms. The two most common forms of public organizations reforms-
privatization and commercialization; were identified and discussed. While the
government has made commendable success in its reform programmes, there are
still a lot of issues that the reform programmes have not been able to address. For
113
instance, developing nations human capital assets which is the central point in
organizational development; is not taken seriously by the government functionaries.
Similarly, the poverty reduction programmes of the government have not adequately
addressed the plight of the rural poor. Hence, poverty level is on the increase trend.
The study employed three hypotheses and operationalised six key concepts. Survey
research design was the research methodology adopted in this study. Lastly, the
system theory and the goalsetting theory of motivation were employed as the
theoretical framework.
CONCLUSION
In conclusion, therefore, the research showed that the reform/change programme of
the government with respect to public organization and with particular reference to
SS-DI-E is not strange to the staff. It is clear that while public organizations as a cooperate
entity benefited from government reform programmes the individual did not. Meanwhile, the
research showed that the workers of public organizations are frequently insulated from
participation in the decision process. Also, the study showed that public organization in
Nigeria are not encouraging. Further, the study indicated that because government often
interferes with the affairs of these public organization it does not provide friendly atmosphere
for public organization to fully develop and operate in full capacity.
Meanwhile, the study reorganizes the fat that if public servants are well motivated they would
perform well. Apart from motivation, the behavioural attitude of management of public
organization has enormous effect on workers performance, since the achievement of
114
organizational goal in public oganisations does not depend upon the worker alone. The
research showed further that professionalism is an important requirement for managers of the
public sector if they must function well and discharge their duties efficiently. The need for
superordinates and subordinates to work in collaboration was seen during the course of the
study.
Lastly, this study showed that poor management constitutes hindrance to growth and
performance in public organization. Given award to industrious workers and punishing lazy
workers tends to make those hardworking ones work harder and invariably poses a big
challenge to the dull ones and tends to make them increase their effort.
RECOMMENDATIONS
Having observed some factors during the course of this study which constitute
hindrance to the effective working of the public organizations we, therefore; feel that
the following recommendations would assist in improving the fortune of public
organizations if the recommendations are adhered to. These are:
1. That government interference into the affairs of public organizations in Nigeria be
discouraged. To this end, management of the public organizations should have freedom to
make policies on the way organizations are to be runned.
2. That professionalism is a very necessary requirement for managers of public
organizations. This requires that round peg is put in round hole while square peg is also
put in square hole and not the other way round.
3. There should be adequate motivation of the workers to enable them put their best in the
work process. This motivation could be by way of prompt payment of workers. Salaries,
timely promotion, provision of medical facilities, appropriate training by way of seminars
and workshops, loan facilities etc.
115
4. Managers of public organizations should endeavour to ensure the inclusion of workers in
the planning and taking decisions that affect them.
5. Management of public organizations should know when, and how to encourage
hardworking, employees through given them award and to punish the real indolent and
lazy employees.
6. A performance management system should be adopted as a tool for increase efficiency of
the Nigerian public organizations.
7. There is need for employees empowerment in public organizations. This will enable
employees to be in a position to make quick decisions to any changes in the environment.
8. Changes/reform programmes of the government should be properly implemented by the
implementing agencies. This is hoped to bring positive effects on the government or the
organizations concerned and position it strategically for competitive advantage.
9. Furthermore, there should be proper measure to prosecute corrupt officials and leaders
should be put in place to reform their lives before structural reforms can be articulated.
1
5.4 BIBLIOGRAPHY
TEXTBOOKS
Adamolekun L. (2002), Politics and Administration in Nigeria. Ibadan: Spectrum
Books.
Bagaji, A.U. (2000), Substance of Public Administration in Nigeria. Ibadan:
University Press Plc.
Cole, A.G. (2002), Personnel and Human Resource Management. Fifth Edition.
London: Biddles Ltd, Guildford and King‟s Lynn.
Drucker P. (1974), Management: Task Responsibilities, Practices. New York: Harper
and Row.
Easton D. (1965), A System Analysis of Political Life. New York: John Willey& Sons.
Egbule, J.F. and Okobia, G.O. (2008), Research Method in Education for colleges and
Universities. Benin City: Justice Jeco Press and publisher Limited.
Ezeani E.O. (2005), Fundamentals of Public Administration. Enugu: Zik Chuks
Publishers
Federal Republic of Nigeria (1986),Structural Adjustment Programme for Nigeria.
Lagos: Federal Government Printers.
Fisher R.A. and Yates F. (1975), Statistical Tables 6th Edition.London: Longman
Group Ltd.
Kerlinger, I. (1977), Foundations of Behavioural Research. New York: Holt Rinehart
and Winston.
Koontz H, Donnell O‟, Weihrich H.(1983), Management. London: McGraw-Hill
International Book Company.
2
Mullins J. (2007), Management and Organizational Behaviour. Britain: Financial
Times Pitman Publishing Imprint
Nwana, O.C. (1981), Introduction to Educational Research. Ibadan: Heinemann
Educational Books Limited.
Nwoye, M.I. (1995), Small Business Enterprise: How to start and succeed. Benin:
Benin Social Science for Africa.
Obadan, M.I. (2000), Privatization of Public Enterprises in Nigeria: Issues and
Conditions for Success in the Second Republic Ibadan: National Centre for
Economic Management and Administration.
Obasi I.N. (1999), Research Methodology in Political Science. Enugu: Academic
Publishing Company...
Obi M.O.A (2005), Fundamentals of Research Methods and Basic Statistics for Social
Sciences. Onitsha: Imprint and Partners Publishers.
Ofuebe C. (2002), Data Demands for Development Research, Enugu: Joan Printing
and Publishing Company;
Olisa, M.S.O. et al (1990), Government for Senior Secondary Schools, Onitsha: Africana
Publishers.
Okoli, F.C. (2004), Theory and Practice of Public Organizations. A book of
Readings. Enugu: John Jacob‟s Classic Publishers ltd.
Ozor E. (2004), Public Enterprises in Nigeria, Ibadan: University Press PLC.
Polinaidu. S. (2004), Public Administration. New Delhi Galgotia
Publications Pet.
Tokunboh, M.A. (1990), Public enterprise - the Nigeria experience,
Lagos: Lantern books.
3
Ujo A.A (2001), Understanding Public Administration. Kaduna: Anyaoatu
Enterprises and Publishers,
JOURNALS
Agagu, A.A. (2008), “Re-inventing the Nigerian public service in
an era of reforms” Pakistan Journal of Social Science, 5(3): 244-252.
Barnj, J.M. (1997), “Performance management: A case study”. Journal of
Environmental Health, 10(4), 35
Bell, S.J., Whitwell G.J. and Lukas, B.A. (2002). “Schools of thought in
organizational learning. Journal of Academy of marketing Science”, 30(1), 70-
86.
Darroch J, (2005), “Developing a Measure of knowledge Management Behaviour and
Practices” Journal of knowledge Management, 7(5):41-54.
Emden Z, Yaprak A, Cavsgil S. (2005), “Learning from experience in International
Alliances: Antecedents and firm Performance Implications” Journal of
Marketing Research. 18(1):39-50.
Farazmand A, Kluwer (2002), “Public Organization Review: An appreciation”.
A global Journal (2): 199 – 202.
Goh, A.S.(2002), “Harvesting Knowledge for Innovation: An integrated
Management Framework”. Journal of Knowledge Management. 15(5): 575-
583.
Gold A.H, Marholtra, A Segars A.H (2001), “Knowledge Management: An
Organizational Capacity of Perspective”Journal of management Information
System. 18(1):185-214.
4
Gyang F.K. (2000), “Scope and values of Public Enterprises in Nigeria”. Nigeria
Standard, 3(6), 8.
Hamish D. (2004), “Recruiting for success Challenges and solutions” Human
Resource Management International Digest, 12(7): 24-28.
Inyang, B.J. (2008a), “Human resource capacity building: an imperative for effective
performance in the public service”. MRL Journal, 1(2), 50-64.
Inyang, B.J. (2008b), “Creating an enabling environment for organizational goal
attainment through employee motivation and job satisfaction” Nigerian Journal
of Labour Law Review and Industrial Relations. 2(2) 92-109.
Inyang, B. and Esu, B. (2009), “A case for Performance Management in the
Public Sector in Nigeria” A Journal of Business and Management (4)
4: 65 – 98.
Jerez-Goomez, Pilar, Cespedes-Lorente, Jose, Valle-Cabrera, Ramon(2005),
“Organizational Learning Capacity” a proposal of measurement. Journal of
Business Research.58(6):715-725.
Ke, W.L, Wei, K.K (2006), “Organizational Learning Process: Its Antecedents and
Consequences in Enterprise System Implementation” Journal of Global
Information Management.14 (1):1-22.
Malone T.W.(1997), “Is empowerment just a fad? Control decision making and IT”
Sloan Management Review 32-35.
Mbanefo, J.C. (1989), “Privatization and commercialization in Nigeria”, ICON 5(2),
26.
Ongori H.(2009), “Managing behind the scenes: A view point on emplotee
empowerment”African Journal o Business Management (1):009-015.
5
Suleiman E. (2007), “Organizational Behaviour”. Journal of Nigeria Institute of
Management, 43(2), 4-5.
Ukpata and Olukotun (2008), “The effect of organizational development on the
Nigeria economy”. African Journal of Business Management 2(5):085-072.
Yue, Hongbao (2008), “The performance evaluation of SMEs”
Fund. Science of Science and management of S&T,(2).
MAGAZINES AND NEWSPAPERS
Asiodu, U. (1989), “NO GO AREAS” Business Times July 17th. 8(6), 1.
Irukwu J.O (2002), “Future Challenges for Nigerian Public Enterprises” Business
Times. Monday June 8th
5, (3): 9.
Otiji A. (1987), “ Public Enterprises in Nigeria”, Business Times. Wednesday March
10th
. 5(2):5
Oladimeji G.(2006), “The dynnamis of the Nigerian economi reforms” Newspaper
Publication. Thursday March 27th
.
OFFICIAL PUBLICATIONS
Powell V.91987). “Improving Public Enterprise Performance: Concepts and
Techniques” International Labour Organization.
Technical Committee on Privatization and Commercialization (TCPC, 1993). Man (final)
report.
United Nations Organization (1974), “Management and Supervision of Public
Enterprises in Developing Countries” United Kingdom.
6
World Bank (1997), World Development Report, 1999, “Infrastructure for
Development”. Washington, DC. World Bank.
INTERNET MATERIALS
International Monetary Fund (2004), Public private partnership, IMF.
Avaliable at : www/imf.org/external/fed/2004
Nwoye, M.I (1997), „„Management Practices and Performance Determinants of
Public and Private Sector Enterprise in Anambra, Edo
and Delta states of Nigeria‟‟. A factor Analysis Avaliable at :
www.globalizacija.com
Obasanjo, O. (2003), On SERVICOM. (Online) Available at:
www.servenigeria.com
Scientific Equipment Development Institute (2008), “Don‟t Be Told To Walk
Inside Sedi-e” Available at: www.sedi.com.2008
7
APPENDIX B
University of Nigeria,
Nsukka,
Enugu State.
TO WHOM IT MAY CONCERN
I am an M.SC student of Public Administration and Local Government in the
University of Nigeria, Nsukka. I am carrying out a research work on managing public
organizations in Nigeria, in the field of study of human resource management. This
research work was necessitated by the various problems that characterize public
organizations and their management. It is also expedient as a part of the requirements
for the award of an M.SC degree honours in public administration and local
government in the University of Nigeria, Nsukka. You are thereby, required to fill the
questionnaire and return same to the researcher.
Be rest assured that information elicited from you will be treated in absolute
confidence.
Thanks and God bless for your anticipated co-operation.
Orji, C.E.
8
QUESTIONNAIRE
APPENDIX C
Section A
1. Have you heard about the reform/change programmes of the
government?
a) Yes b) No c) do not know
2. Have your organization benefited from the reform programmes?
a) Agree b) Strongly Agree c) Disagree
d) Strongly disagree e) do not know
3. Has the individual staff of your organization benefited from the reform
programmes of the government?
a) Agree b) Strongly Agree c) Disagree
d) Strongly disagree e) do not know
4. Are the reform/change programmes of the government in your
organization people‟s participatory?
a) Agree b) Strongly Agree c) Disagree
d) Strongly disagree e) do not know
9
5. People say that public organizations in Nigeria are not encouraging.
a) Agree b) Strongly Agree c) Disagree
d) Strongly disagree e) do not know
6. Government interference do not provide a friendly environment for
SEDI-E to full develop and operate in their full capacity?
a) Agree b) Strongly Agree c) Disagree
d) Strongly disagree e) do not know
7. Lack of funding in SEDI-E causes delay in their output.
a) Agree b) Strongly Agree c) Disagree
d) Strongly disagree e) do not know
8. There will be positive performance by SEDI-E workers if adequately
motivated.
a) Agree b) Strongly Agree c) Disagree
d) Strongly disagree e) do not know
9. Managerial behavioural attitudes must be such that motivate
employees of SEDI-E to perform at their peak level.
a) Agree b) Strongly Agree c) Disagree
10
d) Strongly disagree e) do not know
10. Achievement of organizational goals in SEDI-E does not lie with
employees alone.
a) Agree b) Strongly Agree c) Disagree
d) Strongly disagree e) do not know
11. Employees of SEDI-E should be included in the planning process of
their organization.
a) Agree b) Strongly Agree c) Disagree
d) Strongly disagree e) do not know
12. Managers in public organizations such as SEDI-E do not require
professionalism in the discharge of their duties.
a) Agree b) Strongly Agree c) Disagree
d) Strongly disagree e) do not know
13. Public organization such as SEDI-E will become productive when
superiors and subordinates work in collaboration.
a) Agree b) Strongly Agree c) Disagree
11
d) Strongly disagree e) do not know
14. Poor management stifles growth and performance of SEDI-E.
a) Agree b) Strongly Agree c) Disagree
d) Strongly disagree e) do not know
15. Delay in the implementation process of SEDI-E impinges upon the
attainment of its organizational goals.
a) Agree b) Strongly Agree c) Disagree
d) Strongly disagree e) do not know
SECTION B
16. In view of the problem that characterizes public organizations in
Nigeria, what in your own sincere opinion would be the solution?
A
B