Policy Formulation A Tool For Achieving Organizational Effectiveness

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Every organization (regardless of industries in the country) seeks to be effective and achieve superior results.
Organizational effectiveness in this context refers to the extent by which an organization achieves specified level of progress towards the attainment of it’s cooperate goals.
It is the concept of how effective organizations are in employing sustainable and realistic strategies that will transform its resources and processes into targeted results. Organizations are said to be effective when their desired output exceed their input; when they are able to achieve sustainable business results regardless of market conditions.
All organizations bring a number of factors to their operation but then it is a question of what they actually do that determine the quality of result they achieve in terms of growth, profit, stability, productivity, cohesion, turnover etc.
Most of the indigenous enterprises in Nigeria are not able to produce powerful and mutually re-informing result, the profit, growth and productivity level of these enterprises are relatively low and very disappointing, most of these enterprises liquidate immediately after their take-off, some do not have the potential and capacity to put to efficient and effective utilization all types of resources in the bid to realize the set organizational goals and objectives. The entrepreneurs and management managing such establishments are not able to discover the current realities and drivers of success. They are not able to excuse the right strategy that will help the enterprise achieve supervisor result that are sustainable regardless of market condition and the environment in which it operates. Thus there is need to investigate the type of policy formulated in organizations and how it affects their effectiveness J. Udeagbala holdings Nigeria limited Aba is not operating at a high level of effectiveness.
It is against the backdrop of the foregoing that this research work examines the impact of policy formulation on organizational effectiveness taking as a case study J. Udeagbala Holdings Nigeria Limited Aba.
1.1.1 PROFILE OF THE COMPANY OF CASE STUDY.
J. Udeagbala Holdings Nigeria limited Aba is a conglomerate which was established on 30th march, 1993 as a wholly owned Nigeria.
i. J. Udeagbala Holdings Nigeria Limited Aba
ii. J. and Tom Associate Limited
iii. Dynamite Int’l solvent extraction Limited
iv. Beauty base Limited
v. Quality pipe Limited
vi. Kitchen Vegetable oil Limited
The company has staff strength of about one hundred and thirty four (134) people in the organization. They engage in importation and exportation of goods and serious Agro Allied business, real estate development, general merchandise e.t.c.
They produce cosmetic products like tura soap, tura skin care lotion and cream.
They produce laundry and bathing soap for household uses, soaps like uzzi, black pride, jerry, kitchen star, hammer soap e.t.c.
They produce other household products such as matches, tooth paste and vegetable oil.
They deal on the production of non-alcoholic wine such as irish cream e.t.c.
J. Udeagbala holdings Nigeria Limited Aba was established out of the desire to promote and encourage indigenous production of goods and services. The company head office is situated at No. 152 Aba/Owerri road Aba.

J. UDEAGBALA HOLDINGS NIGERIA LIMITED ABA

1.2 STATEMENT OF THE PROBLEM
Problems are deviation from objectives. The problems that necessitate this study includes the following;
i. Low profit: An exclusive interview with the financial manager of J. Udeagbala Holdings Nigeria Limited Aba, Mr. Ebong, Solomon revealed that in the year 2010, the conglomerate recorded on high level of profit but in the year 2011, the company was not able to achieve a maximum profit with low operating expenses. The company has suffered a serious profit squeeze they not able to cover the cost of importing tallow (Animal fat used in production of soap). The organization has experienced low profit and this issue has become a big problem facing the business in terms of growth and corporate existence.
ii. Decline in market share: J. Udeagbala Holdings Nigeria Limited Aba, in the year 2011 suffered a serious decline inits market share. Given that PZ cussons Plc and unilever are the market leaders, as at 2009-2010 J. Udeagbala Holdings Nigeria Limited Aba held 28% of the total market share in the industry. Subsequently in the year 2011, the market share declined in their market share dies not allow the company to achieve greater scale in the operation.
iii. Low productivity: An interview section with the production manager of J. Udeagbala Holdings Nigeria Limited Aba, Mr. Nwamkpa Chinonso revealed that the firm was operating at the high productivity level in the year 2010 but in year the company recorded a decline in its productivity level. The arrange productivity of workers for the following range of products. Soap vegetable oil, quality pipes e.t.c. have downside from the level at was as at 2010. The managing directorm ofm J. Udeagbala Holdings Nigeria Limited Aba confirmed the information. He disclosed that the company produces 3720 metric tones of pipes annually but in year 2011 the company was not able to produce up to 3300 metric tome of pipes. This issue has become a big problem facing the organization.
The preponderance of these problems seems to query the efficacy of J. Udeagbala Holdings Nigeria limited Aba in the achievement of its corporate goals and objectives.

1.3 OBJECTIVES OF THE STUDY
The main purpose of this study/research work is to examine the impact of policy formulation on organizational effectiveness with a view to ascertaining how and to what extent policy formulation influences organizational effectiveness with analytical framework drawn from the firm J. Udeagbala Holdings Nigeria limited Aba. Within the ambit of the above stated broad goals, the following specific objectives can be identified;
1. To examine the extent to which policy formulation impacts on employees task performance.
2. To identify how and the extend top which policy formulation aids the attainment of corporate goals and objectives.
3. To identify the best possible organizational structure necessary to support policy formulation and implementation.
4. To determine how and the extend to which policy decision impacts on organizational effectiveness.
5. To determine the extent to which effective policy acts as a tool for management control.
6. To make appropriate recommendation based on the findings of the study.

1.4 RESEARCH QUESTIONS
Deriving from the problems and objectives highlighted above, the following research questions have been formulated for this study;
1. Is there a significant relationship between policy formulation and employees task performance?
2. How and to what extent does policy formulation aid the attainment of corporate goals and objectives?
3. How and to what extent does policy decision impact on organizational effectiveness?
4. To what extent does effective policy formulation act as a tool for management control?

1.5 SIGNIFICANCE OF THE STUDY
The study is important because carrying out a research contributes greatly to the academic world as it broadens the frontiers of knowledge. This research work will serve as a reference material for student and other corporate potencies conducting a research on similar topic. This research work will enhance the knowledge of other researchers on the subject matter. It will also help the government by providing guide to the public policy makers on how to formulate the policies that will enable them achieve sustainable result. This study will create awareness for practicing managers and entrepreneurs since it will provide information on the impact of policy formulation on organizational effectiveness in terms of growth, profit, cohesion e.t.c.

1.6 SCOPE AND LIMITATION OF THE STUDY
This research work is on the impact of policy formulation on organizational effectiveness.
A case study of J. Udeagbala Holdings Nigeria limited Aba for time and logistic reasons, the study was limited to J. Udeagbala Holdings Nigeria limited Aba. The reason behind using this organization is because it is one of the most active and remarkable enterprise in Abia state.
In the course of carrying out this research work, the researcher encountered many difficulties which militate against the smooth conduct of the research. The most silent of these constraints are:
1. TIME: in view of the fact that many other things were competing with the researchers time the study could not go beyond what was done. As a result of that investigations are limited to what is reported in this work.
2. FINANCE: Money was a limiting factor in carrying out the research work to the desired extent because of the financial constraint the debt of this study, could not go further than what was done.
3. CONSTRAINTS ARISING FORM THE TENDENCY TO HOARD INFORMATION: this was responsible for the late starting of the research work as the researcher faced a lot of problem in collecting data from respondents.

1.7 DEFINITION OF TERMS
For the purpose of this study, the following terms which ,may not be very familiar to a number of readers are defined to ensure clarity.
1. POLICY: this can be defined as a broad guideline that establishes parameters for making decision in an organization.
2. CORPORATE GOAL: this is the long term and often multiple dates of affairs which an organization wishes to achieve or accomplish.
3. ORGANISATIONS EFFECTIVENESS: This refers to the degree by which an organization realizes its goal.
4. ORGANISATIONAL EFFECTIVENESS: This is the long term and often multiple states of affairs which an organization wishes to achieve or accomplish.
5. EFFECTIVENESS: this is the extent by which an action taken produces an intended result.
6. PRODUCTIVITY: This is the efficiency with which things are produced.
7. PERFORMANCE: The execution or accomplishment of work or a particular task.
8. STRATEGY: This is a united, comprehensive and integrated plan that enables an organization gain strategies advantage over its competitors.