MANAGEMENT PROBLEMS OF PUBLIC ENTERPRISES
(A CASE STUDY OF ANAMMCO)
This research study tries to investigate the management problems of public enterprises, a case study of Anambra motor manufacturing company (ANAMMCO). One of the major objectives of any government is a stable growth and development of the country through industrialization. One of the avenues through which this is achieved is by the establishment of public enterprises. ANAMMCO, being a public enterprise, the researcher has undertaken to investigate how much it has contributed to the general growth and development of Nigeria and also investigate their managerial problems. This research study contains five chapters. Chapter one introduction of the topic “management problem of public enterprises (A case study of ANAMMCO) along with the statement of the problem, objectives of the study and hypotheses. Chapter two talk about the review of the literature on the topic. Chapter three is about the research methodology. Chapter four talk about analysis and interpretation of data. Chapter five contains conclusions followed by recommendations to the management of ANAMMCO.
TABLE OF CONTENT
1.1 Background of the study
1.2 Historical background of case study
1.3 Statement of problems
1.4 Objective of the study
1.5 Hypotheses formulation
1.6 Significance of the study
1.7 Scope of the study
1.8 Limitation of the study
1.9 Definition of term
2.1 Purpose of public enterprises
2.2 The history and growth of public enterprises
2.3 Structure of the public enterprises
2.4 Problems of public enterprises
2.5 Economic factors
2.6 Financial problems/ms management
2.7 Political factors
2.8 Ethnicity problem
2.9 Nigeria work attitudes
2.10 Administrative factors
2.11 Operational technical factors
2.12 Summary of the review
3.1 Sources of data
3.2 Research instrument
3.3 Population sampling and sampling technique
3.4 Methods of investigation
3.5 Reliability of instrument
3.6 Data press
3.7 Method of analysis
4.1 Data presentation and analysis
4.2 Testing of the hypotheses
SUMMARY OF FINDINGS AND CONCLUSION AND RECOMMENDATIONS
5.1 Summary of findings
1.1 BACKGROUND OF STUDY
In any developing economy, the government is the main major initiator and promoter economic development, especially in Nigeria. In developing countries, governments usually interfer some areas of the economy in which the private sector cannot perform, according to Abubalar (1986) in order to facilitate, the federal government has instituted and made use of many public enterprises over the years.
It would be recalled however that in the fifties and sixties, agriculture was the main stay of the Nigeria economy. The early seventies earned for Nigeria long oil revenue at a level that never was anticipated. This new dimension got government involved more with widely diversified investments in areas that span both the traditional public sector and exclusive private sector business.
As a result of this development in crude oil, agriculture that was the main say of our economy was later given less attention. Owing to this circumstance, the government investments were sponsored mostly by the oil revenues. The oil boom era (1974-1979). The government invested in over 30 parastatals and companies within this period. Most of them have been unprofitable, some cannot even meet their operating costs and have depended on government subventions for their year to year survival?
Public co-operations in Nigeria have been considered inefficient and wistful. This is because they have viewed it with the profit criterion. Kindleberger (1986) however hinks that this is not a fair judgment, economic activity, it is usually not appropriate to use the performance standard of the private sector “they are hoses is different colours, the objective of private business is profit, while the government enterprises renders service to the society or promotion of general welfare”.
Olisa (1985) said that prior to independent and after Nigeria was faced with the problem of attaining her social-economic objectives, there was no well destined capitalist class that could operate the much needed development through their productive and industrializing activities. The civil services at that time was inappropriate for accelerated development and the country was saddened with the problem of running many business.
These parastatals are established out side the civil services and this allows for greater freedom of action, quicker decision making which will promote their efficiency and effectiveness. These cooporations are managed through government appointed officials who could utilize the profits accruing from their operations in catering for the public interest (onwudunm:1970).
(Ugwu:1990) said that in Nigeria, it is very unfortunate that the government does not rapidly development and this is because the management of these enterprises have constituted the bane of these enterprises. Most of them failed to meet people’s expectations in terms of provision of goods and services and development in general. The commercially oriented ones neither make profits or even sustain themselves. All efforts by successive government yield no positive result despite various commissions of inquiry and review parties. The performance of these enterprises still fall short’s of people’s expectation. It is based on this that the researcher finds the need to investigate these problems in Anambra motors manufacturing company (ANAMMCO).
1.2 HISTORICAL BACK GROUND OF ANAMBRA MOTOR MANUFACTURING COMPANY.
Anambra motor manufacturing company incorporated on the 17th of January 1977, was commissioned on the 8th of July 1980 ,and started official production in January 1981.
The company , which has a staff strength of 750 and an installed capacity of producing 750 commercial vehicles annually is presently utilizing fifteen (15%) of installed capacity 716 product range includes Mercedes Benz trucks and buses of various sizes, fire fighting vehicles, ambulance, refuse disposal vans as well as vehicle refurbishment. It is however worthy of note that its production with an authorized and fully paid up share capital of seven million naira (N7,000,000). ANAMMCO was set up under a joint agreement between Nigeria and Daimlar Mercedes Benz of Germany .Although it was initially licensed to produce trucks, it later went into the production of buses.
And they set up with the objective of manufacturing and marketing Mercedes Benz trucks and buses ,assisting in manpower development through technology training, achieving transport problem in the country, helping to reduce unemployment in the country. ANAMMCO is located at Emene near Enugu. With company operations organised into six functional divisions and numerous departments under the division. Its board of director is made up of six members. Anambra Motor manufacturing company has two workers union –the senior and junior staff union.
1.2 STATEMENT OF THE PROBLEM.
It is important to note that public enterprises in any given economy has important role to play in the rapid socio-economic development of the country.
Government owned enterprises and business in Nigeria are established to accelerate the pace of economic development in which government is the major investor. Due to the important roles associated with the major public enterprises in Nigeria. There is need for good management for its efficiency. It is a fact that government spends large sums of money in setting up these enterprises and thus, looks forward to making profit. As a result of inefficiency in running these enterprise, federal government and state government have in the recent past set up committee which studied the public corporations and parastatals and recommended privatization and commercialization of some of these enterprises. These enterprises perform so poorly than privately owned business.
Since public enterprises are important in growth of any economy, there is the need to investigate the problems of public enterprises in Nigeria? Also, there is need to identify the reasons for criticism leveled against them. Despite the enormous investment in public enterprises, is Nigeria obviously not getting good value for the money being spent or invested on these public enterprises. This gives the decision to this research on “management problems of public enterprises in Enugu state” using ANAMMCO as a case study.
1.3 OBJECTIVE OF THE STUDY
This study is aimed at the management problems of public enterprises in Enugu state with a view to identifying these problems and therefore coming up with solutions to them as related to the aforementioned cooporation. This study aims to:
a. Identify some of the management problems facing the public enterprises like inadequate finance, poor managerial skills, inadequate infrastructural facilities etc.
b. Examining the influence of the problems on the cooporators in particular and state as a whole.
c. Identify if there is any impact of government interference on their performance.
d. Giving recommendation based on the findings of the study and suggesting suitable ways and strategies of improving the managerial efficiency.
1.4 HYPOTHESES FORMULATION/ RESEARCH QUESTIONS
Ho There is need for management inefficiency due to the important roles associated with the major public enterprises in Nigeria.
Hi There is need for management proficiency due to the important roles associated with the major public enterprises in Nigeria.
Ho Government does not spend large sums of money in setting up these enterprises.
Hi Government spend large sums of money in setting up these enterprises and thus, look forward to parastatals and companies within this period.
Ho There is no need for government enterprises in management efficiency established business in Nigeria government.
Hi There is need for government enterprises in management efficiency established business in Nigeria government.
Ho public enterprises are not important in the growth of any economy in which both public and private enterprises operates.
Hi public enterprises are not important in the growth of any economy in which both public and private enterprises operates.
Ho National economy was given enough attention to public sector and private sector.
Hi National economy was given less attention to public
sector and private sector.
1.5 RESEARCH QUESTION
1. How can management proficiency be determined in public enterprises.
2. How is the effectiveness of public enterprises in a business operation?
3. Can the government tackled the problems of the management of the public enterprises in Nigeria?
4. Could this problems of public enterprise help create employment opportunities in Nigeria?
5. In what ways could the solution of these problems help ANAMMCO to improve in their management functions?
6. What impacts could it create in the transformation of goods in ANAMMCO production?
1.5 SIGNIFICANCE OF STUDY
In third world countries, public enterprises are noted for their inefficiency and waste of resources. To save the situation, an inquiry is needed in this sector of our economy especially at this time of economic difficulties facing the country.
The country cannot afford to encourage or entertain any kind of economic waste in our public enterprises since if efficiency is maximized, it will definitely have a positive effect on the improve standard of living of the general public. This is the significance of this study. It is roped that the study of the management problems in the public enterprises in Enugu state (ANAMMCO) will help management sort some managerial problems so that both workers and organizations will benefit, and the public enterprises will achieve more in future.
1.6 SCOPE OF THE STUDY
This study seeks to cover various management problems identified in the government owned establishment-Anambra motors whatever problems that will hinder the profitability of this company, sustainability and continued growth. They have so many opportunities to study and requires series of contacts in their company.
Also they have useful data for kind of study that agencies needed in their work for company.
1.7 DEFINITION OF TERMS
Ware House- A warehouse is a commercial building for storage of goods. Warehouses are used by many factors, importers and exporters, wholesales, transport business, customs etc. They are usually large plain buildings in industrial parts of town. They come equipped with coaling docks to load and unload trucks or sometimes are loaded directly from railways, airports or seaports. They also often lave cranes and forklifts for moving goods.
Marketing- This is the process by which (marketing) applied to the craft of selling product or service with customers, both existing and potential. It provide any direction to someone hoping to market his products or services effectively with that, a more modern explanation of what marketing is and what makes it effective. Marketing is a four step process that begins with analyzing and defining a qualified universe of potential users or buyers.
Consumer Market- The consumer market deals with the final customer who buys the product for aim at satisfaction/personal use. The consumer market covers a wide variety of people of different ages, tender race and etc as long as they also the end user of product.
Enterprise Management Services: This provide complete life cycle and configuration management of enterprise assets through an integrated toll suite, we provide “cradle to grave” services utilizing a suite of product for standardized, repeatable processes for procurement. The enterprise management service database provides the resource for continually assessing and improving customer service.
Sales- Sales or the activity of selling forms an integral part of commercial activity mastering sales is considered by many as some sort of persuading “art on the contrary, the methodological approach of selling, refers to it as a systematic process of repetitive and measurable milestones, by which a sales persons relate his offering enabling the buyer to visualized how to achieve his goal in a economic way. Selling is a practical implementation of marketing. It often forms a separate grouping in a corporate structure, employing a separate specialist operatives known as sale men
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