Poor Management in Private Owned Companies in Nigeria
POOR MANAGEMENT IN PRIVATE OWNED COMPANIES IN NIGERIA
Private Owned Companies in Nigeria has develop from a state of nothingness to dominate major aspect of the sectors despise the challenges of Poor Management.
All over the world poor management is known to be one of the key aspects that has contributed immensely in the development of any country’s economy.
It is also referred to as the coordination of the resources of an organization through the corporative efforts of others in order to achieve a given target or objective. But when any establishment or economy is unable to coordinate its resources and the activities of others through the process of planning, organizing, directing and controlling in order to achieve a set objective then poor management is in place.
Poor management could also result from inadequate managerial ability.
It could be the inability of the management to utilize the scare resources under their control as well as the inability to apply the required manpower for executing a particular task.
An establishment or organization could experience poor management when all the require equipment unable to manage the scare resources effectively, this is the possibility of ineffective management. Poor management goes with a lot of uncountable effects which are disastrous and spread like a wild fire. No establishment or economy will like to experience the effect of poor management but nobody can change it especially when poor management has been nursed in an establishment.
In a situation like this, no individual will like to associate with such establishment thereby scaring people away and the work as of such establishment to not stand the chance of being exposed in any form.
The combination of land, capital and labour are not effectively utilized.
The inability to communicate effectively with the out side world and not being able to compete favourably with other establishments which leads to the lost of people’s / public interest.
Furthermore, the services rendered are very poor not to talk of the substandard quality of their products resulting from absence of training and not applying the modern techniques of management and production. The establishment will only be coming across losses and no profit will be made. The reputation of the establishment is at stake and no individual will be encouraged to do business with such establishment because the quality of their services is below what is expected and the economy of the country is affected badly.
The inability of the management to remunerate its workers and pay its debt can as well lead to the end of the existence of the establishment.
1.1 PROBLEMS ASSOCIATED WITH THE SUBJECT MATTER
It is obvious that poor management is caused due to deficiency in the management of an establishment and not being able to utilize the scare resources and its effects are numerous and they include:-
a. Bad reputation of the establishment.
b. The establishment is less attractive to job seekers.
c. The establishment looses its customers.
d. It stands the chance of being bankrupt and also students the chance of being closed.
e. It contributes negatively to the economy.
f. The inability of the management to remunerate its workers.
g. The inability of the management to train its workers and not applying the modern techniques of management and production.
h. The establishment stands the chance of not making any profit.
All these cause imbalance in the economy of the nation.
1.2 PROBLEMS THAT THE STUDY WILL BE CONCERNED WITH
The main motivating factor of the study is to examine the effects of poor management in private owned establishment in the private establishment under study.
To know whether the effects of poor management are negative or positive.
To determine how the effects of poor management affect the growth and development of newly established establishment and the old existing ones as well as the skills of the workers.
And also how to discourage the effects of poor management.
1.4 THE IMPORTANCE OF STUDYING THE AREA
This study is geared towards finding out from the research the followings:-
Whether the effects of poor management in private owned establishment. A case study of powerlux limited is beneficial or not. To identify how it affects the growth and development of an establishment.
How to tackle and overcome the effects of poor management.
1.5 DEFINITION OF IMPORTANT TERMS
Management:- The coordination of an organizational resources through the process of planning, organizing directing and controlling in order to achieve the organizational objective.
Scarce resources:- Limited resources.
Objective:- A targeted goal (either long run or short run).
Development:- Exposure of an establishment to the modern management techniques.
Manpower:- Assessment of workers available for a particular task
Planning:- Establishing organizational goal and a strategy for their achievement.
Organizing:- It deals with the division of work, allocation of duties authority and responsibility inorder to make things happened.
Directing:- Commanding, centralizing authority and leadership, guiding and supervising subordinate.
Controlling:- Monitoring to see that plans have been carried out.
2.1 THE ORIGIN OF THE SUBJECT AREA
The effects of poor management is a very delicate issue that need to be handled with care if not prevented.
This chapter examines the issue from different perspectives by identifying those documents that have information related to the problem under study.
According to Abur (1985:8) The essence of literature review is to provide an insight necessary for the development of a frame work into which the research problem fits. It also facilitates the interpretation of results of the study.
The case study, POWERLEX LIMITED was established in early 90’s by a retired NEPA District engineer, Engr B.C. Nwokedi. The establishment was a construction limited and to be precise an electrical engineering limited. The company had been involved in some installation projects in some parts of the country namely Kano, Kaduna, Zaria, Niger etc. The establishment did not last that long before being descended on by effects of poor management which were caused due to the fact that there were many uncountable pot-holes in the coordination of the day to day activities of the establishment. Some of the causes of poor management of the establishment that led to its effects are namely:-
There was the absence of budget and determined anticipation.
The personnel department of the establishment was not fully fortified and sound in carrying out the departmental responsibility of identifying capable manpower and hands needed to make the establishment progressive.
There was no proper record of all financial transactions of the establishment because of incapable accounting offers and the method of operation.
There was no combination of opinion from other department based on the fact that most of the decisions taken were taken individual by the General manager of the establishment which resulted to many disappointment, failure and waste.
The establishment was not equipped with modern electrical engineering and installation equipment and gadget needed for the establishment to carryout its operation smoothly, rather the establishment spent so much in hiring those equipment needed to carrying out an operation and nothing is left in the account of the establishment as a result of expenses incurred in hiring.
And there were other miscellaneous causes to be mentioned but few.
2.2 SCHOOLS OF THOUGHT WITHIN THE SUBJECT AREA
According to Egbo V.O, if you fail to plan, you plan to fail. That is to say that improper planning of an organizational set objective leads to poor management which affects the entire life existence of the establishment. One of the effects of poor management leads to poverty, poverty of individuals which has advance effects on the economy of the country.
Bribery and corruption emerge as a result of not being able to manage the organizational resources to achieve the expected result.
The inability to utilize the research findings or results lead to a very serious effects in the coordination of the activities of an organization.
Effects of poor management can take place as a result of fraud, embezzlement of fund and fund misappropriation. And when this happens, there is no financial hope left for the establishment to execute its task.
The dissolution and liguidation of any establishment is as a result of poor management which could be caused by the inability of the management to coordinate both the human and material resources of the organization through the process of planning, organizing, directing and controlling to achieve the require objectives. It is also the inability of management to educate, train and develop its employees to achieve the set objectives. Some times the wrong candidates are selected for employment because of the poor management of the establishment and the inability of the personnel department of the establishment to carry out its duty.
EMMM school of thought defined effects of poor management as the inability of management to attract and retain the organizational clients and incapable to improve the standard and cost of living of the employees as well as not being able to meet the societal demands for which the establishment was established.
Effects of poor management result to the use of obsolete technology based on the fact that the establishment is poorly managed and it finds it difficult to adopt to the latest technological machines and equipment needed for it to execute its task.
Effects of poor management lead to communication gap between the establishment and the general public.
Also one of the effects is that there is lack of maintenance culture in the establishment. The pieces of furniture and fittings of the establishment are not taken care of by the management.
2.3 THE SCHOOL OF THOUGH RELEVANT TO THE PROBLEM OF STUDY
The relevant school of thought defined effects of poor management as the inability and incapacity of management to attract and retain the organizational clients and improve the standard and cost of living of its employees and not being able to meet the societal demands as well as the organizational demand for which the establishment was established through the process of planning, organizing, directing and controlling.
2.4 DIFFERENT METHODS OF STUDYING THE PROBLEM
The different methods adopted in studying this problems are:-
i. Use of observation
ii. Desk research/ Examination of records and documents.
iii. Use of oral interview of the staff.
In summary of this chapter, the effects of poor management is very dangerous to the existence of any establishment especially to the life existence of the case study. And it also affects the economy of any nation negatively and there will be no development economically, socially, culturally and otherwise.
3.1 DATA PRESENTATION (HIGHLIGHT OF THE STUDY)
The data collected from the oral interview of the staff, observation and desk research or examination of the records and documents clearly stated thus:-
i. The effects of poor management is the inability fo the management to plan effectively.
ii. The inability of management to coordinate both human and material resources of the organization.
iii. The inability to attract and retain customers because of the organization’s substandard nature.
iv. The management is very weak in training and educating its employees.
v. The organization becomes weak in competing with its counterpart in the business world.
vi. The organization is unable to identify its strength and weakness so as to spot opportunity and threat.
vii. The organization is less attractive to job seekers and contribute nothing to the problem of unemployment.
viii. The organization contributes negatively to the economy instead of contributing positively to the economy.
ix. The inability of the management to remunerate the workers of the organization.
x. The organizations stands the chance of not making profit as well as being closed/short down.
3.2 ANALYSIS OF DATA
According to the data collected and presented, based on the case study, it identified the effects of poor management as a tremendous blow that should be avoided by every organization and economy. Effects of poor management render what organizations and countries have been planning for years useless.
Through the research conducted in the area of the subject matter it shows that effects of poor management is better to be told than to be experienced and I recommend that:
i. Capable and able managers should be employed by the organization to plan and coordinate both human and material resources of the organization smoothly for efficiency and effectiveness.
ii. Management should expose their employees to various training programme and educate them on how best to work effectively towards achieving the objective of the establishment.
iii. Management should ensure that proper books and records of the organization’s transactions are recorded and kept according to the transaction guiding principle to prevent fraud, embezzlement and misappropriation of fund.
iv. The employees of the organization should be remunerated as at when due and motivation incentives should be in place for the employees to put all their efforts towards achieving the organizational objective which include attraction and retention of customers and standardization of the organizations goods and services quality.
Based on the research conducted so far on the subject matter, it indicates that the effects of poor management is numerous and negative in nature. And it should be discouraged with all the human and materials resources available for the ultimate result (objective) to be achieved in both private sector and public sector of the economy.
POOR MANAGEMENT IN PRIVATE OWNED COMPANIES IN NIGERIA