Ineffective management of government owned companies are gradually
becoming alarming in Nigeria. These government owned companies has continued to
witness increased low productivity and other vices that are immoral to the
growth of our economy while government at all levels are busy working out
strategies to check this ugly situations, the problems has continued unabated.
So, this study has looked at the problems of effective management
in government owned companies using Nigeria Coal Corporation, Enugu as the case
This project looked into ways of preventing or reducing the
incidence of poor management of government owned companies in examining the
problems, the researcher used both primary and secondary data. The primary
sources of data includes – the use of questionnaire and oral interview while
the secondary sources of data includes – textbooks, articles, magazines and
other relevant write ups in various journals.
BACKGROUND OF THE STUDY
The term effective management refers to the need for an organization to achieve
its desired goals through prudent management of resources at its disposal.
What is management? The analysis of management knowledge is facilitated by a
useful and clear organization of that knowledge. Management knowledge is
organized around the basic functions of managers, thus, planning, organizing,
staff, leading and controlling.
Some scholars look at management as a total and universal activity separation
from the managerial activities of a business or government agency while others
look at management from operational point of view.
Managing is essential in all organized co-operation as well as at all levels of
organization in an enterprise. It is the functions not only of the corporation
managing director and the army general but also of the shop supervisor and the
One will find no basic distribution between managers and executives,
administrators or supervisors to be sure a given situation may differ
considerably between various levels in our organization or various types of
enterprise, the scope of authority held may vary, the types of problems dealt
with may be considerably different and a person in a managerial role may also
be salesman, engineer or financial. But the fact remains that as managers, all
who obtain results by establishing an environment for effective group endeavour
undertake the same functions.
Even so, those in managerial role seldom devote all their time and talents to
managing and the organization roles which individuals fill almost invariably
involve unmanagerial duties one has only to look at the duties and
performances associated with, perhaps the most complex managerial role in our
society that is, that of the president of Nigeria to realize that much of his
work is non-managerial even in business corporations, company managing
directors found themselves doing a considerable amount of non-managerial jobs.
And as one goes down the organization ladder, the number of non-managerial
duties tend to increase. Nevertheless, this fact of life should not detract in
any way from the key significance of managing.
The goal of all managers, non-business executives sometimes say that, top
business managers have it easy, that is, that profit is their goal. Profit is
only a measure of the surplus of business income over cost. It was pointed out
earlier that, in a very real sense, the goal of all managers must be surpluses.
Their task is to establish the environment for group effort in such a way that
individuals will contribute to group objectives with the least amount of such
inputs as money, time, effort, discomfort and materials. By the very
definitions of the task, this becomes the goal of managers but if they were
ever to know whether the efforts of those for whom they are responsible are
effective and efficient, whether they attaining goals with least cost they
obviously must know what group goals are. Not only must these goals be known to
managers and preferably to all those for whom they are responsible, but they
should also be known in a clear way otherwise, managers can never measure
either their own effectiveness and efficiency or the effectiveness and
efficiency of their group.
The corporation Chief executive, the MILAD of a state, the Chief medical
director of a hospital, the bishop, the director of school, the class rep. etc
all as managers have the same kind of goals. The purpose of their enterprise or
their department may vary and these purposes may be more difficult to define in
one situation than in another, but their basic managerial goal remains the same.
Effective management is all about the application of knowledge to realities in
order to attain desired results. Effective management has been and will
continue to be a problem in government owned companies, unless we start to use
system approach in managing our companies.
Most government companies have failed because of non-use of system approach in
It is true that we are practicing mixed economy in this country, that is, where
private enterprises are existing alongside the public enterprises of Nigeria
coal corporation and that public enterprises major objectives is not to make
profit but these companies were established with tax payers money and the
expect optimum use of their money. And these companies were established in most
cases to provide services to the people but due to poor management which can be
attributed to so many variables.
These companies have been provided with the necessary inputs (in some cases)
but it is the management task to transform the inputs in an effective and
efficient manner to produce output of course, the transformation process can be
viewed from different perspective. Thus, one could focus on such enterprise
functions as finance production, personnel and marketing; different schools of
thought look at transformation in from different angles. More scholars are
coming up and the beat goes on.
STATEMENT OF THE PROBLEMS
Effective management is one of the good goals of every organization, where
there are no good or effective management, there is bound to be problem.
Unfortunately thought of this effective management has not been seen in NCC
Enugu hence the problems of inadequate findings obstacles equipment,
interference from parent ministries and such like things. The researchers
therefore want to investigate into these problems to know why this ugly
situation should not be stopped for the effective management of the firm.
The following research questions were asked during the course of this research
(1) What is the estimated labour force and how many
of these are managers, supervisors and junior staff in your corporation?
(2) Does poor management lead to loss of funds?
(3) Does poor management reduce public confidence in
government owned companies?
(4) Does poor management of government owned
companies effect general economy of the nation?
(5) Do you think optimum uses are being made of the
resources available to your company?
(6) Can your company be better managed if effective
and qualified personnel man the key positions?
1.5 SIGNIFICANCE OF STUDY
Ineffective management in its owned companies is a problem that
have been disturbing several administration in this country as well as tax
payers whose resources (finance) wee used in establishing such firms. Several
attempts have been made in the past to find solution to this natural problem,
but it still persist. Government will derive great assistance from the work in
detecting ineffective management in its companies and ways of controlling them.
This, they can achieve by adopting and implementing the various suggestions and
recommendations made in this study in their management control system.
The research will also be of immense benefits for all these
students and scholars carrying out research is poor management government owned
Therefore, this research work will be for the mutual benefits of
government, students, prospective shareholders in government companies,
industrial watches and the general public.
1.6 THE SCOPE OF THE STUDY
This research work was conducted and specifically carried out on
Nigeria Coal Corporation (NCC) Enugu.
The aim of this scope is intended to look at NCC and what have
been the problems of effective management in the organization. This work will
equally offer suggestions on how best to have effective management NCC Enugu.
DEFINITION OF TERMS
(a) Pressure – force exerted
continuously on something or against something.
(b) Fraud – Criminal act or
(c) Terrifying – filling
(d) Perpetration – Be guilty
(e) Subordinate – people
working under somebody
(f) Optimum – Best or
(g) Return on investment –
this is something, that is dividend, interest an investor expect to get from
(h) Shareholders – people who
contribute money to establish or run a business.
(i) Negligence –
Failure to take proper care
(j) Financial year
– This is usually 12 calendar months in which most companies prepare their
TERMS AND CONDITIONS APPLY
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