Impact Of Management Style On The Efficiency Of Selected Government Owned Companies

(A Case Study Of Enugu Metropolis)

5 Chapters
|
68 Pages
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7,232 Words
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The impact of management style on the efficiency of selected government-owned companies is a critical aspect that significantly influences their operational effectiveness and overall performance. Management style encompasses the approach and methods employed by leaders to organize, coordinate, and control activities within an organization. In the context of government-owned companies, the ability of leadership to adapt and implement effective management styles becomes paramount for success. A judicious combination of participative and strategic management styles, tailored to the specific needs of these entities, is crucial for fostering a dynamic and responsive organizational culture. The ability of leaders to integrate these styles seamlessly is instrumental in enhancing employee engagement, fostering innovation, and optimizing resource utilization. Moreover, the adaptability of management styles to the unique challenges and complexities of the public sector contributes to the overall efficiency and sustainable growth of government-owned companies, ensuring their continued relevance in a rapidly evolving economic landscape.

ABSTRACT

The research titled “The Impact of Management Style on the Efficiency of Selected Government Owned Companies In Enugu State” started with the introduction, where the researcher discussed the background of the study including finding out the impact of management style on the efficiency of some government owned companies. To find out the management style adopted by the companies under study, to find out why there is poor attitude to work in those companies, to find out where there is poor performance and improper accountability in these companies and to ascertain the causes of the manager’s inefficiency and instability. The significance of the study include that the study will be immense help to the managers to understand the impact of management style on their companies. The companies covered where Enugu State Water Corporation, Enugu State Printing and Publishing Company and Sunrise Flour Mill. Under the literature review, the researcher discussed the theoretical framework of the study, the objective of governments in business, performance of government owned companies in Nigeria etc. The population was 700 and the sample size used was128 employees from the three companies. The sample size was determined using the Yaro Yammani’s Formula. The major instrument of data collection is the questionnaire. The researcher presented the data in tables using frequencies and analysized the data using inferential statistics, the hypothesis were tested using the Chi-Square formula. The summary of findings include that the management style adopted by these three companies were mainly permissive autocratic and directive democratic. The researcher concluded by saying the management style has a great impact on the efficiency of government owned companies. The accommodations included that the state government owned companies should be managed by people who have the necessary experience and training.

TABLE OF CONTENT

Title page
Certification Page
Dedication
Acknowledgement
Abstract
Table of Content

 

CHAPTER ONE:
1.0 INTRODUCTION

1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Research Question –
1.5 Research hypothesis
1.6 Significance of the study
1.7 Scope of study
1.8 Limitation of study
Reference

CHAPTER TWO:
2.0 REVIEW OF RELATED LITERATURE

2.1 Theoretical frame work
2.2 Historical background of the study
2.3 Current Literature on the theories postulated above

CHAPTER THREE:
3.0 RESEARCH DESIGN AND METHODOLOGY

3.1 Research design
3.2 Source of data
3.3 Primar
3.4 Secondary source of data
3.5 Population of the study
3.6 Sample size determination
3.7 Sampling technique
3.8 Method of data collection
3.9 Questionnaire design, distribution and collection of
Response

CHAPTER FOUR:
DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 Demographic Characteristics
4.2 Presentation accounting to key research questions

CHAPTER FIVE:
5.0 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

5.3 Summary of findings
5.4 Conclusions
5.5 Recommendations
Bibliography
Appendix

CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF THE STUDY

The problem of management in effectiveness and bad attitude to work among Nigerians is widespread in government owned companies. There has been growing concern among Nigerians on the poor organisational performance and managerial ineffectiveness recorded in these organisations. This concern perhaps is a result of the size of economic and social influence of these government institutions on Nigerian development. (Akpala, 1990:193).
Inspite of the huge capital investments in these companies, the results have been extremely poor. As a result of government, as trustees for the ultimate owners of public enterprises have appointed tribunals, commissions and panels to find ways and means to improve the efficiency and effectiveness of the enterprises (CMD, 1985:5).
At the managerial and operative performance levels, the problem is also a general one. In an attempt to explain and subsequentlyliniment government owned companies, two schools of thought emerge. One is of the opinion that the problem is from ill implication of the known theories and
principles of management in government owned companies. The other holds that the problem stems from not applying management philosophy that is based on Nigerian culture.
This takes us to the meaning of management. Management can be defined as the art or science of working in an organisation through being directed by and by directing and co-ordinating the activities of people to achieve one’s personal goals in the context of the goals of one’s organisation (Ejiofor,1985:3).
Management involves the performance of all the management functions which include planning, organizing, staffing, directing, controlling and co-ordinating of activities to attain optimum result with organisation resources. Management is concerned with the achievement of objectives, performances result, success, efficiency and effectiveness.
The survival of any company in realizing its objectives, depend among other things in proper management of its human and material resources.
No company or organisation can have its activities moving on without a manager. Managers and company goes hand in hand. The need for managers arises because companies exist. One cannot exist without the other.
Managers have to perform many roles in an organisation and how they handle various situations will depend on their style of management. A management style is an overall method of leadership used by a manager.
There are two sharply contrasting styles that will be broken down into smaller subsets later.
(i) Autocratic
(ii) Permissive
Each style has its own characteristics Autocratic:leaders make all decisions unilaterally. Permissive: leader permits subordinate to take part in decision making and also gives them a considerable degree of autonomy in completing routine work activities combining those categories with democratic (subordinates are allowed to participate in decision making) and directive (subordinates are told exactly how to do their jobs) styles gives us four distinctive ways to manage (IEBM, 1998:201). Directive democrat: makes decisions participatively i.e. closely supervises subordinates. Directive autocratic: makes decisions unilaterally; closely supervises subordinates.
Permissive democrat: makes decisions participatively gives subordinates latitude in carrying out their work. Permissive autocrat: makes decisions unilaterally gives subordinates latitude in carrying out their work.
Managers must also adjust their styles according to the situation that they are presented with. Below are four quadrats of situational leadership that depend on the amount of support and guidance needed.
Telling: work best when employees are neither willing nor able to do the job (high need of support and high need of guidance).
Delegating: works best when the employers are willing to do the job and know how to get about it (low need of guidance and low need of support).
Participating: works best when employers have the ability to do the job, but need high amount of support (low need of guidance but high need of support).
Selling: works best when employees are willing to do the job, but don’t know how to do it (low need of support but high need of guidance).
The different styles depend on the situation and the relationship behaviour (amount of support required and task behaviour (amount of guidance required).

1.2 STATEMENT OF PROBLEM
The effect of management style on the efficiency of government owned companies cannot be discussed without looking into the problems militating against these management styles. These upsetting difficulties and problems are:
a) Poor attitude to work/poor performance
b) No proper accountability
c) Inefficiency
d) Wrong management style
e) Poor quality service (Norber M. Ile)
These problems have attracted incessant criticisms from people. Some managers lack good management capabilities.
It is all these that made the researcher to endeavour to determine the impact of the management style on the efficiency of government owned companies.

1.3 OBJECTIVES OF THE STUDY
The purpose of the study is as follows:
1. To find out the impact of the management style on the efficiency of some government owned companies.
2. To find out the management style adopted by these companies.
3. To find out why there is poor attitude to work in these companies.
4. To find out why there is poor performance and improper accountability in these companies.
5. To ascertain the causes of manager’s inefficiency and instability.
6. To make recommendations.

1.4 RESEARCH QUESTIONS
1. What is the impact of management style on the efficiency of government owned companies?
2. What management style is adopted in Enugu State Water Corporation and Enugu State Star Printing and Publishing Company Limited?
3. Why is there poor attitude to work in these companies?
4. Why is there poor performance and improper accountability in these companies?
5. What are the causes of manager’s inefficiency?

1.5 SIGNIFICANCE OF THE STUDY
The important roles of government owned companies in our environment cannot be overlooked. This is because of the part they play in solving our social, political and economic problems. The study will be of immense help to managers, to understand the impact of the management style in their companies and the type to adopt for companyefficiency and growth.
The study will be beneficial to the student who may find themselves as managers in government owned companies, after graduation. This researcher will definitely benefit from the study as the project is a condition for graduation. The study will also be beneficial to the university, in the sense that it will increase their data base.
Finally, the study will be beneficial to any person, who will further on this research work.

1.6 LIMITATION OF THE STUDY
In a research project like this, it is always difficult to complete the work, without going through a number of factors which
constitute impediments. Some respondents to the questions were not on seat in most cases to give the required information. Some of the respondents were reluctant to air their views.
The unwillingness by some managers to release some vital information regarding the management and operations of the companies is one of the factors that did not allow the researcher gain access to vital and sufficient information. The time to move from one library to the other, from one cybercafé to the other and the time to type and distribute the questionnaires was another impediment. Finance was another constraint. A lot of money was needed for transport, typing etc.
The researcher was a nursing mother during this period. Despite all these, the researcher did her best.

1.7 SCOPE OF THE STUDY
To extend the impact of management style on the efficiency of all the government owned companies in Enugu State, will be too much for the requirement of the work. The researcher will limit the scope to some selected government owned companies in Enugu State. It involves a survey of selected managers with the companies.

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Impact Of Management Style On The Efficiency Of Selected Government Owned Companies:

The impact of management style on the efficiency of government-owned companies can be significant, as management practices play a crucial role in determining the effectiveness and productivity of these organizations. Here are several ways in which management style can affect efficiency:

  1. Leadership Approach: The leadership style adopted by top management can greatly influence the efficiency of government-owned companies. Autocratic leadership may stifle innovation and employee motivation, whereas participative or transformational leadership styles can foster a more inclusive and motivated workforce, leading to increased efficiency.
  2. Decision-Making Processes: The decision-making process within government-owned companies can affect their efficiency. A bureaucratic decision-making process characterized by red tape and lengthy approval procedures can slow down operations and hinder responsiveness. In contrast, a more streamlined and decentralized decision-making process can enable faster responses to market changes and operational challenges, enhancing efficiency.
  3. Employee Empowerment and Engagement: Management styles that prioritize employee empowerment and engagement tend to enhance efficiency in government-owned companies. Empowered employees are more likely to take ownership of their work, innovate, and contribute positively to organizational goals. Managers who foster a culture of open communication, feedback, and recognition can boost morale and productivity, ultimately improving efficiency.
  4. Performance Management: The way performance is managed within government-owned companies can impact efficiency. Performance management systems that set clear goals, provide regular feedback, and reward high performance can motivate employees to perform at their best and drive organizational efficiency. Conversely, ineffective performance management practices may lead to disengagement and underperformance.
  5. Resource Allocation: Management style influences how resources are allocated within government-owned companies. Efficient resource allocation requires managers to prioritize investments that generate the highest returns and eliminate wasteful spending. A strategic management approach that focuses on aligning resources with organizational objectives and regularly evaluating resource utilization can improve efficiency.
  6. Innovation and Adaptability: Management styles that encourage innovation and adaptability are essential for government-owned companies to stay competitive and efficient in a rapidly changing environment. Managers who foster a culture of creativity, risk-taking, and continuous improvement can drive innovation and ensure that the organization remains responsive to market dynamics, thus enhancing efficiency.
  7. Transparency and Accountability: Transparent and accountable management practices are crucial for ensuring efficiency in government-owned companies. Managers who promote transparency in decision-making processes, financial management, and performance metrics can build trust with stakeholders and facilitate effective oversight. Accountability mechanisms that hold managers and employees responsible for their actions and performance also contribute to organizational efficiency.

Overall, the management style adopted within government-owned companies can have a profound impact on their efficiency. By fostering effective leadership, empowering employees, optimizing decision-making processes, and promoting innovation and accountability, managers can drive organizational performance and ensure long-term success.